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Introduction: Exports and imports are carried out by traders who are residents of different countries. Goods have to cross national frontiers and several types of physical and financial risks are to be faced. Laws and regulations of the exporting and importing countries are also to be observed. It is, therefore, very important that the parties to an export-import transaction put down the terms of agreement clearly to avoid misunderstanding and disputes. Further, in Indian context, an exporter is supposed to show a documentary proof of an export contract to secure special export facilities. In this unit, you will learn the nature of export sales contract and various provisions of Incoterms. You will also learn the methods of settlement of disputes.
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