Going Global Mistakes: 5 Traps in Quotes and Contracts Exporters Overlook

The trap is dug before signing

In going global, the most expensive line is often not freight but a quote or contract left vague. CNTOSEA handles many cases where the dispute was never quality — it was a blurry responsibility boundary: who books the vessel, who insures, when risk transfers, where to arbitrate. These five traps catch newcomers and veterans alike.

Mistake 1: quote without a trade term

Writing only FOB Shenzhen or CIF Rotterdam is far from enough. Be explicit about the responsibilities, costs, and risk points of EXW / FOB / CIF / DDP. Many factories quote FOB yet deliver to the warehouse themselves, paying inland freight for nothing. Align Incoterms 2020 before quoting.

Mistake 2: confusing FOB and CIF insurance

Under CIF the seller insures, but often at minimum cover; under FOB risk transfers at loading and the buyer insures. One wrong line and who pays for damage is unclear.

Mistake 3: no inspection standard or third party

Writing only per sample, without an AQL level and an SGS / BV third-party check, lets the buyer reject on it is not as described. Pin the inspection clause and communication stays clean.

Mistake 4: ignoring the arbitration venue

Without a chosen arbitration venue, a dispute means suing in the buyer's country — very costly. State CIETAC or a neutral third venue.

Mistake 5: payment detached from the bill of lading

Cash against documents (CAD) and letter of credit (L/C) carry very different risk. Tie deposit ratio and balance release to the B/L to avoid losing money and goods.

Bottom line

Templatize quotes and contracts and archive them with trade digitalization — CNTOSEA's baseline advice for clients. Going global is won on steadiness; write it clear and sleep on the order.