For all companies in Italy and San Marino that export to the United States, the new trade scenario requires immediate attention.
There are two operational priorities:
A) Verify the impact of duties on current contracts
B) Promptly update contract templates
Let’s see in detail how to intervene on both fronts.
A) Current contracts: what to check immediately?
- Which Incoterms apply?
Who bears the cost of duties? This depends on the delivery term (FCA, DDP, etc.).
- Does the contract provide for price adjustment?
A price adjustment clause may come to your rescue.
- Are there any clauses for exiting the contract?
Force majeure and hardship are not usually applicable, but a specific analysis is needed.
- Do you have alternative negotiating levers?
All the circumstances that can facilitate the renegotiation of unfavourable contractual conditions must be considered.
B) Contractual models: is it time to update them?
- Incoterms delivery terms
- Force Majeure and Hardship clauses
- Price revision clauses
- Euro/Dollar exchange rate clauses
- Clauses for suspension or early termination of the contract
Our support for companies
Bacciardi Partners has set up a task force to support companies in dealing with the emergency and in defining medium-long term strategies, such as the reorganisation of logistics flows, the possible use of preferential regimes in force with neighbouring countries, the establishment or acquisition of a company in the USA to start local production.
Contact us for a personalised evaluation of your contractual scenario and the available solutions.
Lorenzo Bacciardi, LL.M. – Managing Partner
Tommaso Fonti, LL.M. – Head of Tax, Customs Law and Global Mobility
Tommaso Mancini – Head of International Commercial Law
Pier Federico Orciari – Head of Corporate Law