Protecting rights during export, import entrustment

Wednesday, Dec 10, 2014 10:42

Subjects to entrust and undertake entrustment: export and import entrustment is carried out between traders.— Photo
HA NOI (Biz Hub)—The entrustment of export and import of goods usually causes disputes between the mandator and mandatory.

Enterprises need to pay attention when entering into contracts, selecting partners and other matters that arise to best protect their own rights and benefits.

The entrustment of export and import of goods (hereinafter referred to as "export and import entrustment") is governed by the Commercial Law.

On the basis of the disputes PLF recently received, we have become aware that enterprises often encounter quite basic issues due to the lack of agreement in contracts, agreements that are insufficient or not in accordance with Vietnamese and international laws, specifically as follows:

1. The parties carry out export and import entrustment based on an oral agreement in lieu of a written contract (or other forms of equivalent legal validity).

2. Mandate contracts are entered into by and between incompetent persons as prescribed by law.

3. The compensation liability, remedy and the time and method of compensation are not stated in mandate contracts.

4. No resolution mechanism is established to deal with issues related to customs procedures that export/import goods encounter.

5. Unaccepted goods: The law does not provide for cases where the mandator refuses to receive the goods although the mandatory has fulfilled the contractual obligations. Therefore, the parties should reach a detailed agreement on delivery obligations, responsibilities of both parties and the directions to deal with the problems in this case.

6. The rights and obligations of each party whenever a dispute arises from or related to the contract and the choice of dispute settlement body.

Furthermore, it is also essential for enterprises to give heed to matters that may arise after giving or receiving a mandate:

Subjects to entrust and undertake entrustment: export and import entrustment is carried out between traders. Vietnamese organisations and individuals other than traders may, on the basis of contracts signed in accordance with the provisions of law, entrust import or export of goods to meet their needs.

Entrusted goods: all goods, except for those on the list of goods banned or suspended from export and/or import. In addition, the entruster (mandator) or the entrustee (mandatory) must obtain import or export permits before signing entrustment or entrustment undertaking contracts.

Export and import mandate contract: export and import entrustment must be made in writing. — PLF – LAW FIRM

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