Contract for the supply of imported goods: what should be indicated?

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The contract for the delivery of the imported product is the first document that the entrepreneur will have on the product. This is the first step to be taken to import goods into Ukraine. And the further smooth import of goods or equipment into Ukraine,  as well as their customs clearance, directly depends on how carefully you read the contract, and what conditions are specified therein.

At the stage of contract conclusion, you must determine:

  • which parties will act in the contract;
  • the terms of delivery;
  • the subject of the contract;
  • terms of payment;
  • terms of delivery;
  • conditions of warranty, quality and return of goods;
  • the specified documents to be provided by the seller for the goods.

It should also be determined whether this contract will be a one-time contract, whether there will be several deliveries.

All these conditions play an important role in protecting your interests as a buyer, as well as in the process of crossing the border of Ukraine. So, simply by obliging the seller to provide you with certain documents in the executed form, for example, certificate of origin, you already receive additional protection at customs.

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What terms and conditions of the contract for international sale and purchase of goods should I first pay attention to?

The contract price for the import of goods.

At certain difficult stages of the country’s economy, the National Bank of Ukraine set limits on the contract price. For permanent supplies it was quite inconvenient, because you have to make sure not to exceed the limit of the contract, and constantly execute new contracts with permanent counterparties.

So far, there are no such restrictions. Therefore, if you need to make permanent deliveries from one counterparty, it is enough to conclude one contract for a large amount and then work on it.

If the contract is for one delivery, the amount of the contract and the payment procedure must be clearly spelled out. This will help to avoid difficulties in obtaining a conclusion on the extension of the deadline for settlement, if necessary. It will also help to avoid problems with payments and currency control at the bank and during future tax inspections and customs clearance.

Legal advice: we recommend concluding the contract in two languages. One of the languages of the contract must be Ukrainian, for the lack of claims from the tax authorities during the further audit.

The subject matter of the contract for import of goods to Ukraine.

Usually the subject of the contract is the equipment or the raw materials according to the addendum or specification. Therefore, the contract, specifications and proforma (preliminary invoice issued by the seller) should be submitted to the bank for payment. And it must be the goods, which will be subject to further customs clearance.

The bank monitors all payments under the contract and sees their closure according to the unified register of customs declarations, to which the bank has access.

In case of significant discrepancies or failure to close transactions, the bank will send information on violations of currency legislation to the tax authorities, for which it is the basis for an unscheduled inspection.

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Payment under a foreign trade contract

There are different options, but usually after the conclusion of the contract follows its full or partial payment. At this stage, it should be noted that the bank details and details of the parties must be correct.

All subsequent documents for the goods must be executed from the seller in the contract of the buyer. Therefore, such documents for the goods must be from the seller, which were used for the payment. This should be discussed in advance with the seller, because according to the laws of certain countries, not all companies have the right to export. Therefore, one should pay and therefore conclude a contract with the one who will send the goods.

Payment orders for the payment of goods are required to submit to the declaration of goods, and also necessarily specify the details of the bank through which the payment was made. These documents are the confirmation of the declared customs value, and the amount of all payments must converge with the amount of the invoice, unless the parties agreed upon another payment procedure (eg, cash on delivery).

Please note! At all stages of foreign economic activity it is necessary to be as careful as possible, all the arrangements between the parties should be supported by documents in order to avoid questions to the importing entrepreneurs from the controlling authorities.

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What documents should you, as a buyer, keep after concluding a foreign trade contract?

The mandatory documents that must remain with you include:

  • the contract and all attachments to it;
  • specifications;
  • additional contracts;
  • all payment orders;
  • invoice;
  • proforma;
  • packing list;
  • certificate of origin.

In case of cargo insurance, you must have an insurance policy, in case of packing cargo on pallets – fumigation certificates. If delivery is not included in the cost of goods, the entrepreneur should get a contract and a document confirming the cost of transportation from the carrier.

You shouldn’t intentionally make any shenanigans in any documents, because the story with the goods doesn’t end at the stage of customs clearance. You will also need to pass a currency control, and these operations may be checked by the currency department of the tax office. Even the customs office can conduct a post-audit (inspection), and check all the payments on the goods within three years.

Our company offers you comprehensive support for the import of goods to Ukraine. Development and signing of the contract is only the first step. Then you must ensure shipment of goods, transportation, logistics and customs clearance of goods in Ukraine.

We support the entire process from the beginning to your successful receipt of the goods in Ukraine.

Please see the service fee and more information here.

Publication date: 18/05/2022

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