FIVE recommended strategies summarized for Chinese export enterprises, aiming to provide robust support for navigating the complex landscape triggered by this round of tariff policies.
Recommendation 1: Clarify the terms of tariff bearing
Clearly stipulate the bearer of tariffs in international trade contreacts to avoid cost disputes caused by tariff adjustments. For example, it may be agreed that the buyer shall bear the additional tariffs caused by the " reciprocal tariff" policy of the United States.
Considering that the U.S."reciprocal tariff" policy will significantly increase the cost of tariffs, U.S. buyers may ask for renegotiation. If the two parties agree to share the cost of tarffs, the proportion of contribution and the method of payment should be specified in details in the international trade contract.
Recommendation2: Set up a price adjustment mechansim
In international trade contracts, in order to deal with the risk of rising costs caused by change in tariff policies, it is recommended to clearly stipulate the price adjustment mechanism.
Effectively enchance the adaptability and flexibility of the contract, protect the legitimate rights and interests of both parties in the event of tariff policy changes, and reduce commercial risks and legel disputes caused by unclear price adjustment.
Recommendation3:delivery times and order fulfillment risk management
If the goods cannot be transported within the duty exemption period, the responsibilities and remedies of both parties should be specified in the contract. For example:"If the goods cannot be transported within the duty exemptin period due to force majeure, the parties shall negotiate to adjust the delivery time and adjust the price or take other remedial measures accoding to the actual situation."
At the same time, considering that the US" reciprocal tariff" policy may lead to unilateral cancellation of the order or delay in payment by the US buyer.
Recommendation4:Add provision to respond to changes in tariff policies
Both two parties should specify in the contract the exemption clause when the contract cannot be performed due to the chnage of tariff policy, so as to reduce the legal risk of both parties.
Recommendation5:Pay attention to the certificate of origin compliance
At the same time, the certificate of origin should detail the source of raw materials, production process, and final product of the commodity to demonstrate compliance with rules of origin of the target market.
