How to Protect Yourself Legally in Cross-Border Trade

Global trade opens doors to new markets and profits, but it also brings legal risks—from payment defaults to customs disputes. At Befach, we help businesses navigate these challenges with the right legal and compliance strategies.

1. Use Clear Contracts

Draft detailed contracts that specify product quality, delivery timelines, payment terms, and dispute resolution. Always include:

• Jurisdiction & governing law
• Arbitration clause (ICC or SIAC)
• Force majeure clause

2. Secure Payments with Letters of Credit

A Letter of Credit (LC) ensures exporters get paid once documents are verified. Learn more about LC compliance via RBI guidelines.

3. Understand Incoterms 2020

Incoterms define who bears the risk and cost at each stage of shipping. Choosing the right Incoterm (FOB, CIF, DDP) prevents disputes.

4. Ensure Regulatory Compliance

Importers and exporters must comply with:

• DGFT policies for IEC and licensing
• ICEGATE Customs for clearance
• FSSAI for food imports
• RBI for foreign exchange compliance

5. Protect Intellectual Property

Register trademarks and patents in both India and the destination country to prevent counterfeiting and misuse.

6. Work with Trusted Partners

Partnering with experts like Befach ensures smooth operations:

• Sourcing compliant products
• Logistics with risk management
• Customs clearance with legal compliance
• Consultation for legal trade strategies

Quick Summary

To protect yourself legally in cross-border trade, use strong contracts, secure payments with LCs, choose the right Incoterms, and comply with DGFT, RBI, and Customs regulations. With Befach’s sourcing, logistics, and clearance expertise, you can trade globally with confidence.