Customer Terms are personalized transaction conditions formulated for specific customers in foreign trade contracts, typically covering payment methods, delivery time, discounts, return policies, dispute resolution, etc. They differ from standardized General Terms and are tailored based on customer tier, transaction history, credit status, etc., aiming to maintain key customer relationships or control risks. Usage scenarios include: signing long-term agreements with major customers, first cooperation with new customers, or when customers request special arrangements. Precautions: Ensure Customer Terms do not conflict with the main contract or international trade practices (such as Incoterms); they should be clearly stated in writing, avoiding oral promises; regularly review to prevent risks from changes in customer credit. The difference from 'Sales Terms' is that Sales Terms are standard conditions unilaterally set by the seller, while Customer Terms are personalized agreements negotiated by both parties, focusing more on customer relationship management. Unlike a 'Framework Agreement,' Customer Terms usually target specific orders or projects.
📝 Examples
1. As your company is our VIP customer, we agree to grant 30-day deferred payment in the Customer Terms, but a bank guarantee is required. (Note: Providing favorable payment conditions for premium customers while controlling risks.)
2. Due to recent strengthening of foreign exchange controls in your country, we suggest adding a force majeure clause in the Customer Terms to clarify liability allocation during severe exchange rate fluctuations. (Note: Adjusting personalized terms based on policy changes in the customer's country to mitigate risks.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner