1. Case Overview
Triangular trade or third-country trade can take various forms, such as intermediary trade or direct export by foreign entities.
While these may seem like mere differences in terminology, defining the type and structure of a transaction is fundamental to any trade deal, especially in the evolving landscape of China-Africa apparel trade.
Our client was engaged in a trade transaction involving the production of apparel in China and export to Africa.
As the buyer was a local Korean expatriate, negotiations and contract drafting were conducted in Korean.
However, due to the substantial transaction amount, coordinating terms with the buyer posed significant challenges.
To address these issues, the client turned to Kim & Rhee Law Offcie's team of international trade and transaction experts.
2. Expert Advisory
- Risk Management Through Surety Insurance
The expert recommended leveraging surety insurance to mitigate risks associated with the high-volume transaction. This aligns with industry best practices, as surety guarantees can free up cash, preserve bank capacity, and potentially result in cost savings compared to bank letters of credit5. - Quality Inspection and Claims
The expert crafted tailored quality inspection provisions, crucial given the changing dynamics of China-Africa apparel trade. Ensuring product quality and timely delivery is essential for maintaining competitiveness in the global market1. - Managing the Chinese Factory
The expert provided guidance on managing legal risks in China, addressing potential issues like delivery delays and quality defects. This is particularly important given the recent trend of Chinese textile and apparel manufacturers setting up operations directly in African countries.
3. Outcome
With expert guidance, the client successfully signed a 1.3 billion KRW (1 Million USD) apparel export contract.
This success is notable given the current challenges in the textile-clothing sector, which is classified as "Very high risk" in most regions according to recent assessments.
At Kim & Rhee Law Office, we are dedicated to minimizing legal risks and providing comprehensive legal support to help our clients succeed in their business ventures, especially in complex international trade scenarios.
"We deliver effective strategies to solve your legal challenges in the ever-changing landscape of global trade."
Corporate Contact (Click to Connect)
"We offer the best strategies to resolve your legal challenges."
Kim & Rhee Law Office
1. Case Overview
Triangular trade or third-country trade can take various forms, such as intermediary trade or direct export by foreign entities.
While these may seem like mere differences in terminology, defining the type and structure of a transaction is fundamental to any trade deal, especially in the evolving landscape of China-Africa apparel trade.
Our client was engaged in a trade transaction involving the production of apparel in China and export to Africa.
As the buyer was a local Korean expatriate, negotiations and contract drafting were conducted in Korean.
However, due to the substantial transaction amount, coordinating terms with the buyer posed significant challenges.
To address these issues, the client turned to Kim & Rhee Law Offcie's team of international trade and transaction experts.
2. Expert Advisory
The expert recommended leveraging surety insurance to mitigate risks associated with the high-volume transaction. This aligns with industry best practices, as surety guarantees can free up cash, preserve bank capacity, and potentially result in cost savings compared to bank letters of credit5.
The expert crafted tailored quality inspection provisions, crucial given the changing dynamics of China-Africa apparel trade. Ensuring product quality and timely delivery is essential for maintaining competitiveness in the global market1.
The expert provided guidance on managing legal risks in China, addressing potential issues like delivery delays and quality defects. This is particularly important given the recent trend of Chinese textile and apparel manufacturers setting up operations directly in African countries.
3. Outcome
With expert guidance, the client successfully signed a 1.3 billion KRW (1 Million USD) apparel export contract.
This success is notable given the current challenges in the textile-clothing sector, which is classified as "Very high risk" in most regions according to recent assessments.
At Kim & Rhee Law Office, we are dedicated to minimizing legal risks and providing comprehensive legal support to help our clients succeed in their business ventures, especially in complex international trade scenarios.
"We deliver effective strategies to solve your legal challenges in the ever-changing landscape of global trade."
Corporate Contact (Click to Connect)
"We offer the best strategies to resolve your legal challenges."