However, even with the standardization, international trade is still a complicated process, especially when you consider that trade laws are often very different from country to country. To that end, many companies establish contracts between their organization and their customers, which can help streamline the process of shipping goods internationally.
These international contracts establish and outline various provisions, including the time and place of delivery and the terms of payment agreed upon by the two parties. These provisions can cover several different subjects, such as when does the risk of loss shifts from the seller to the buyer, or who foots the bill for freight and insurance?