( 3:10 16/05/2012 )
Vietnam Coffee and Cocoa Association (Vicofa) has suggested all coffee exporters to use the same export contract sample in a bid to control possible risks in case of trade disputes.
The idea was raised by Vicofa at a training program organized in HCMC on Monday with the aim of increasing competitiveness of Vietnamese coffee enterprises.
Local coffee exporters are not using the same contract sample, which has caused them a lot of difficulties over previous years, said Luong Van Tu, chairman of Vicofa.
“As each enterprise drafts its own export contract, they usually encounter drawbacks when settling the disputes arising from the deal,” Tu said.
The common export contract stipulates that the quality of exported coffee must match standards provided for in Vietnamese quality standard set TCVN4193:2001 and must be compliant to what is described in the contract. Importers can ask sellers for reassessment on the quality of goods if any mismatch is found.
Contract disputes will be resolved by the Vietnam International Arbitration Center and Vietnam Chamber of Commerce and Industry in line with the provisions of Vietnam Commercial Law and the United Nations Convention on Contracts for the International Sale of Goods.
Current practice shows that coffee sellers and buyers set out sketchy contract terms; in some cases, exporters sell their stock in the absence of a formal contract, resulting in legal battles in court with results placing sellers at a great disadvantage, said Nguyen Huu Chi, a legal expert of Vicofa.
“In the past, Vietnamese coffee exporters faced drawbacks for contract dispute resolution when inking contracts drafted by buyers. It is time to launch a common export contract for all industry insiders,” Chi said.
However, Vicofa should seek approval from the International Coffee Organization over the suggestion before putting the common export contract sample into use, said Pham Tuong Lan, director of Tan Lam Agricultural Product Joint Stock Company.
“We export coffee and tea to the EU under the contracts drafted by the European Coffee Federation. In case of contract disputes, we will have 50% to win rather than the 45% level if it is eligible to use export contracts suggested by Vicofa,” Lan added.
Source : Business Times
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