Trade customs and usages in international trade
International trade is a complex process, regulated not only by laws, but also by tacit rules, formed on the basis of practice. These rules, such as customs. habit and routineplay a key role in the regulation of relations between participants in foreign economic activity (FEA).
The concept of trade customs and their meaning
Commercial practices The rules of conduct that have developed in the practice of international trade due to their repeated reproduction. They are a source of law and have legal effect in situations not regulated by the treaty or law.
Criteria for the recognition of a trade custom:
- Time factor. The custom is formed only with prolonged use.
- Continuous application. The rule must be observed regularly enough to become a sustainable norm of behavior.
- Uniformity. Custom should be applied in the vast majority of cases without significant deviations.
International trade practices
In the international arena, trade customs are of particular importance, as they unify the rules of interaction of trade participants from different countries.
Conditions for recognition of international trade custom:
- Sustainable practices. The rule should be widely accepted and applied by the majority of participants in international trade.
- State authorization. Although customs are tacit norms, they can be recognized at the legislative level.
An example of international trade customs is the use of Incoterms - unified terms of delivery, which are not mandatory by law, but are widely used in world practice.
Commercial customs in Russia
In Russian law, trade customs are officially recognized as a source of law. This is particularly important in cases where the treaty or the law does not provide direct guidance on a particular situation.
Difference between custom and custom
Terms custom and habit They are often seen as synonymous but have different meanings:
- Custom (custom) It is a recognized rule with legal force. It is uniform and universal.
- Usage. A habit or practice that has no legal approval.
Example:
- Use of standard design of goods invoices (custom).
- Regional practices differing from country to country (customary).
Established order: concept and application
Routine routine This is a practice that has developed in the process of a long-term relationship between the parties to the contract, but not prescribed in the contract itself. It forms new rules of behavior, deviation from which is considered a violation.
Features of the established order:
- The need for a long-term relationship. Single or rare actions do not create routine.
- Formation of new rules. These rules may differ from the original terms of the contract.
- Scope of application. The established procedure shall apply if the contract suggests the intention of the parties to follow that practice.
Examples of routine:
- Constant supply of spare parts without additional registration.
- Silent acceptance of orders.
- Regular transfer of funds to a particular bank account, even if it is not specified in the contract.
- Failure to notify if it has become common practice between the parties.
The role of trade customs, customs and established order in the FEA
These elements play a key role in the regulation of foreign economic activity:
- Flexibility of contractual relationships. They address gaps in legislation and treaties.
- Resolving conflicts. Custom and routine facilitate dispute resolution, especially in international practice.
- Reducing transaction costs. Uniform rules speed up processes and reduce the risk of misunderstanding.
Commercial customs, customs and routine are important elements of international trade regulation. They ensure stability and predictability of the relationship between the parties, especially in the context of international transactions. Their knowledge and proper use avoid many legal and organizational problems, making foreign economic activity more efficient.