Law chosen to govern a transactions is clearly state the legal consequences of their contractual activities for example the right, obligation, and remedies for involve parties, and they can choose the law of particular country or international law to govern their contract. International trade law (CISG) includes the appropriate rules and customs for handling trade between states and it forms part of domestic law if the involve parties are from the contracting state of CISG. With assistance from Unification of Private Law (UNIDROIT) for filling gap in the coverage of issues by the CISG which is the validity of contract, effect of contract on property and goods, exclusively or non-sale aspects for distribution agreement, and inability of sell for death or personal injury cause by the goods on any person. The domestic law that governs the transactions in Malaysia is the Contract Act 1950 and supplement from Sale of Goods Act (SOGA) 1957 (revised 1989) which is based on the English Sales of Goods Act. As a Malaysian lawyer, I recommend you choose the Contract Act 1950 and SOGA as the governing law because the business you based is on Malaysia home soil and it creates a familiar factor to you. Besides that, Contract Act 1950 and SOGA already govern the basic contract of goods and contract of insurance but they did not cover the contract of carriage. However, because of Malaysia still practices the Hague Rules by virtue of the Carriage of Goods By Sea Act 1950 (Revised 1994), you have to choose the Hague Rules to govern your contract of carriage even though there are prominent weaknesses. For contract of carriage, there is standard term used on trading call as International Commercial Terms (INCOTERMS), and Cost, Insurance and Freight (CIF) and Free On Board (FOB) are the generally used term in the trade. So, I recommend you to practice FOB even through your product price will slightly lower due to bargain from buyer, but the cost will reflect on save at the transport of the products. Besides, the main benefit is you do not need to make arrangement on carriage and thus this will reduced the burden to you as a seller’s responsibilities. Policies and regulations have the very close relationship because regulations are come under the policies. The policies and regulations at Malaysia are based on an open and encourage motive, so, normally you can smoothly doing your business on export the product out of Malaysia to foreign countries. This is see through the durian is one of the fruits that identifies by the Third National Agricultural Policy (1998-2010) (NAP3) as important role in creating competitiveness of the Malaysia fruit and vegetable industry in the ASEAN. However, you need to take care about different policies and regulations of your dealing countries which are ASEAN countries and China in order to gain the benefits from all your dealing exporter countries which are actually on the free trade area as ASEAN Free Trade Area (AFTA) and also ASEAN-China Free Trade Area (ACFTA). Firstly, other than the list of preferential tariffs products that under the Common Effective Preferential Tariff (CEPT) scheme , the 40% rules of origin are also one regulation that need to comply with in able to benefit from preferential market access. So, you need to obtain a different certificate of origin from Ministry of International Trade and Industry (MITI) to trade at both free trade areas. Besides certificate of origin, there are regulations for the quality of trading goods on AFTA and ACFTA. Start from sign of AFTA and ACFTA, the ASEAN countries and China fruits market move to more open market as can see through the fruits quality control have been replace to which is more harmonize and standardize call as Sanitary and Phytosanitary Measurers (SPS). This is to prevent countries to protect their domestic agricultural producers from imports with stringent phytosanitary measures which are non-science based, discriminatory and...
Bibliography: 1. AB Teoh. 2008. Exporting and International Trade [access on 15 July 2010]
2. Essential international trade law by Michelle Sanson.2002 by Cavendish Publishing (Australia) Pty Limited. Available www.cavendishpublish.com. [access on 15 July 2010]
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