International trade law is the body of national laws, EU regulations, and international treaties that governs cross-border commercial activities. At Musch Legal, we advise Dutch and foreign companies daily on their international transactions — from simple export contracts to complex joint ventures, M&A, and major international disputes. This pillar page provides you with a complete guide to this area of law, with references to our detailed blogs by topic.
What is international trade law? (Which area of law does international trade law cover?)
International trade law encompasses all legal rules that apply when commercial activities cross national borders. This is not a separate legal code but a combination: Dutch law (Books 6 and 7 of the Dutch Civil Code), EU regulations and directives, international treaties (CISG, New York Convention), customary law (Incoterms, UCP 600), and foreign law in the country where transactions take place.
For Dutch companies, international trade law is relevant as soon as they export, import, collaborate with foreign partners, open branches in other countries, or provide digital services across borders. For foreign companies doing business in the Netherlands, the reverse applies.
Musch Legal's practice focuses on four main areas: (1) international commercial contracts (see pillar /internationale-commerciele-contracten), (2) international disputes (see pillar /internationale-geschillen), (3) international private law (see pillar /internationaal-privaatrecht), and (4) EU law for international business (see pillar /eu-recht-internationaal-zakendoen).
Which sources of law apply? (Where do you get the rules from?)
International transactions are governed by multiple sources of law simultaneously. For Dutch enterprises, the most important are: national law (Books 3, 6 and 7 of the Dutch Civil Code; Code of Civil Procedure), EU law (direct effect of regulations), international treaties to which the Netherlands is a party (CISG 1980, The Hague Conventions, New York Convention 1958), and rules of international organizations such as the ICC (Incoterms 2020, UCP 600).
In principle, the order of precedence is: EU law prevails over Dutch law where the EU has issued rules; international treaties operate through implementation or direct effect; Parties can determine a great deal themselves within the limits of mandatory law through a choice of law clause in their contract.
At Musch Legal, we begin every transaction with a source of law analysis: which law applies, which treaties are relevant, which EU rules affect the contract, and what scope parties have to make their own choices.
Source of law
Examples
Application
Dutch law
Books 6 and 7 of the Dutch Civil Code, Code of Civil Procedure
Default for Dutch party, in case of Dutch choice of law
EU Regulations
Rome I 593/2008, Brussels I-bis 1215/2012
Direct effect in all EU Member States
EU Directives
GDPR 2016/679, CSDDD 2024/1760
Via national implementation
International treaties
CISG 1980, New York Convention 1958
Via treaty rules
Lex mercatoria
Incoterms 2020, UCP 600, URDG 758
Upon contractual incorporation
Source of law
Examples
Application
Dutch law
Books 6 and 7 of the Dutch Civil Code, Code of Civil Procedure
Default with Dutch party, in case of choice of Dutch law
EU Regulations
Rome I 593/2008, Brussels I-bis 1215/2012
Direct effect in all EU Member States
EU Directives
GDPR 2016/679, CSDDD 2024/1760
Via national implementation
International treaties
CISG 1980, New York Convention 1958
Via treaty rules
Lex mercatoria
Incoterms 2020, UCP 600, URDG 758
Upon contractual inclusion
Which rules apply to international sales? (When does the Vienna Sales Convention apply?)
The Vienna Sales Convention (United Nations Convention on Contracts for the International Sale of Goods, CISG) of 1980 is the most important treaty for the international sale of movable goods. The treaty has 97 signatory states (as of 2026), including the Netherlands, Germany, France, the US, China, Japan, and Brazil. The United Kingdom and India are among the best-known non-parties.
The CISG applies automatically when both contracting parties are established in Contracting States and the contract concerns the international sale of movable goods (Article 1 CISG). The Convention also applies when rules of international private law lead to the application of the law of a Contracting State (Article 1, paragraph 1, subparagraph b). However, parties may explicitly exclude the Convention via an opting-out clause under Article 6 CISG.
The CISG governs: formation of the contract (Articles 14-24), obligations of seller and buyer (Articles 30-65), transfer of risk (Articles 66-70), remedies for breach of contract (Articles 45-52 and 61-65), and damages (Articles 74-77). For Dutch exporters: CISG is often more favorable than Dutch law because it involves fewer formalities (no notice of default required, broader dissolution options in the event of a fundamental breach under Article 25 CISG).
CISG does not cover: sales for personal use (Article 2(a)), auction sales, foreclosure sales, sales of shares, sales of ships and aircraft, and sales of electricity. CISG does not apply to services — for these, national law or EU law remains relevant.
Which EU rules affect international business? (Which EU frameworks should you know?)
EU law permeates virtually every cross-border transaction within or from the EU. The most important regulations are: Rome I (593/2008) for applicable law on contractual obligations, Rome II (864/2007) for non-contractual obligations, Brussels I-bis (1215/2012) for jurisdiction and recognition, GDPR (2016/679) for data protection.
Since 2022–2026, the EU regulatory landscape has expanded significantly: EU AI Act (2024/1689 — high-risk obligations from 2 August 2026), Corporate Sustainability Reporting Directive (2022/2464 — phased 2025–2028), Corporate Sustainability Due Diligence Directive (2024/1760 — from 26 July 2027), Carbon Border Adjustment Mechanism (2023/956 — definitive period from 1 January 2026), new Product Liability Directive (2024/2853 — transposition until 9 December 2026), General Product Safety Regulation (2023/988 — from 13 December 2024), NIS2 (2022/2555 — transposition until 17 October 2024).
For Dutch exporters to third countries: EU export and sanctions law also applies. Regulation 2021/821 for dual-use goods; Regulation 833/2014 for sanctions against Russia; Regulation 2580/2001 for sanctions against terrorism. Non-compliance leads to fines up to statutory maximums per Member State (NL: 870,000 euros or capital gains under the Sanctions Act 1977).
EU framework
Regulation/Directive
Application as of
Choice of law for contracts
Rome I 593/2008
Applicable since 2009
EU choice of forum
Brussels I-bis 1215/2012
Applicable since 2015
GDPR
Regulation 2016/679
Since 25 May 2018
AI Act
Regulation 2024/1689
From 2 August 2026 (high-risk)
CSDDD
Directive 2024/1760
From 26 July 2027
CBAM definitive
Regulation 2023/956
From 1 January 2026
New PLD
Directive 2024/2853
Transposition until 9 Dec 2026
NIS2 cybersecurity
Directive 2022/2555
Transposition until 17 October 2024
EU framework
Regulation/Directive
Application as of
Choice of law for contracts
Rome I 593/2008
Applicable since 2009
EU choice of forum
Brussels I-bis 1215/2012
Applicable since 2015
GDPR
Regulation 2016/679
Since 25 May 2018
AI Act
Regulation 2024/1689
From 2 August 2026 (high-risk)
CSDDD
Directive 2024/1760
From 26 July 2027
CBAM definitive
Regulation 2023/956
From 1 January 2026
New PLD
Directive 2024/2853
Transposition until 9 Dec 2026
NIS2 cybersecurity
Directive 2022/2555
Transposition until 17 October 2024
How do you arrange choice of law and choice of forum? (Which law applies and which court has jurisdiction?)
Choice of law (which law governs the contract) and choice of forum (which court has jurisdiction or which arbitral institution decides) are the two most important contractual decisions in international transactions. A wrong choice can render an excellent contract worthless.
Under Rome I (Regulation 593/2008), parties to contractual obligations are in principle free to choose the applicable law (Article 3). In the absence of a choice, the rule of characteristic performance applies (Article 4): for sales, the seller's law; for services, the service provider's law. Mandatory provisions regarding consumer and employee protection cannot be chosen away.
For choice of forum within the EU, Brussels I-bis (Regulation 1215/2012) applies: forum selection clauses in B2B contracts are in principle binding under Article 25. For arbitration, the New York Convention of 1958 (170+ contracting states) applies, which facilitates the recognition and enforcement of arbitral awards worldwide.
At Musch Legal, we see contracts with awkward choice of law or choice of forum on a daily basis. A Dutch exporter who wants to sue his German customer before a Dutch court, while the contract contains French law and a French exclusive court, is left empty-handed. Proper wording of these two clauses often saves hundreds of thousands of euros.
Which Incoterms apply to international trade? (How do you arrange transfer of risk and transport costs?)
Incoterms 2020 (International Commercial Terms) of the International Chamber of Commerce are standard terms of trade for delivery and transfer of risk in international sales. They regulate who is responsible for transport, insurance, customs formalities, and risk — not for the transfer of ownership (that remains a matter of applicable sales law).
There are 11 Incoterms 2020. The four main categories: E-terms (EXW — Ex Works, buyer picks up), F-terms (FCA, FAS, FOB — seller delivers to primary carrier), C-terms (CFR, CIF, CPT, CIP — seller arranges transport but risk passes earlier), D-terms (DAP, DPU, DDP — seller delivers to destination).
Common mistakes: using FOB for container transport (technically incorrect — use FCA), using CIF without understanding that risk passes at the time of shipment (and not at arrival), using DDP without preparing for import licenses and VAT liability in the destination country. At Musch Legal, we regularly see multi-million dollar claims due to the wrong Incoterm choice.
Incoterm
Delivery
Transfer of risk
Suitable for
EXW
At seller
Directly at buyer
Local trade, experienced buyer
FCA
To carrier seller
At transfer to carrier
Container transport
FOB
On board ship
At loading
Bulk-sea transport
CIF
On board ship
At loading (not at arrival)
Sea, seller bears transport
DAP
At destination
At arrival, for unloading
Seller assumes transport risk
DDP
At destination, cleared
At arrival, fully
Seller bears all risks
Incoterm
Delivery
Transfer of risk
Suitable for
EXW
At seller
Directly at buyer
Local trade, experienced buyer
FCA
To carrier seller
At transfer carrier
Container transport
FOB
On board ship
At loading
Bulk-sea transport
CIF
On board ship
At loading (not at arrival)
Sea, seller arranges transport
DAP
At destination
At arrival, for unloading
Seller assumes transport risk
DDP
At destination, cleared
Upon arrival, fully
Seller bears all risks
What sanctions and export controls apply? (How do you remain compliant when exporting?)
Sanctions and export controls have expanded dramatically since 2022. Dutch exporters must comply with EU sanctions (especially Regulation 833/2014 Russia, Regulation 2580/2001 terrorism, Regulation 2010/204 Iran), US sanctions with extraterritorial effect via OFAC, and sectoral export control under dual-use Regulation 2021/821.
For concrete compliance: screen every transaction against sanctions lists (EU Consolidated List, OFAC SDN, UN). For products with military or dual-use applications: apply for a license from the Central Office for Import and Export (CDIU) under dual-use Regulation 2021/821. For financial transactions with Russian counterparties: virtually all completely prohibited since 2022.
Non-compliance comes at a heavy cost. EU fines per Member State (NL: 870,000 euros or capital gains under the Sanctions Act 1977); US OFAC settlements often valued at 10-100 million dollars; reputational damage and bank account losses. For Dutch companies with a US link (USD transactions, US establishment): double compliance required. Read our detailed blogs on sanctions and export controls.
ESG and sustainability: new obligations (Which ESG rules affect your business?)
EU ESG regulations have added a new dimension to international business since 2022. The Corporate Sustainability Reporting Directive (CSRD, Directive 2022/2464) mandates detailed reporting of sustainability information in accordance with European Sustainability Reporting Standards (ESRS), phased in from 2025 for the largest enterprises.
The Corporate Sustainability Due Diligence Directive (CSDDD, Directive 2024/1760) mandates due diligence on human rights and the environment in own operations, subsidiaries, and the supply chain. Application from 26 July 2027 for the largest enterprises (5,000+ employees or 1.5 billion euros turnover); full application 26 July 2029.
The Carbon Border Adjustment Mechanism (CBAM, Regulation 2023/956) levies a carbon border tax on imports of steel, aluminium, cement, fertilizer, electricity, and hydrogen. Since 1 January 2026 in the definitive period: importers must purchase CBAM certificates for embedded emissions. Significant cost impact for Dutch importers (average 5-15 percent on a cost basis for affected products).
International dispute resolution: choice of forum (Court or arbitration — which suits you?)
For international disputes, there are three main routes: national courts, arbitration, and mediation. Each route has its own profile: costs, speed, confidentiality, enforcement options, and the decision-maker's expertise.
Dutch courts offer: low costs (court fees 2026 typically 691-15,000 euros), good quality, public proceedings (judgment via rechtspraak.nl), and automatic enforcement options within the EU via Brussels I-bis. Suitable for: standard cases, lower amounts, and no need for confidentiality.
International arbitration (ICC, NAI, LCIA, SIAC, HKIAC) offers: confidentiality, expert arbitrators, worldwide enforcement via the 1958 New York Convention (170+ countries), and procedural flexibility. Costs are higher (administrative fees 25,000-500,000 USD plus arbitrator fees 500-2,000 EUR/hour). Suitable for: major cases, international counterparties, confidentiality desired.
Mediation offers: speed (1-6 months), low costs (10,000-50,000 euros), preservation of the relationship, confidentiality. Non-binding unless settlement is reached. Suitable for: cases where the commercial relationship is valuable, required for complex disputes, and parties are open to compromise.
What does Musch Legal do for you? (How can we support you?)
Musch Legal specializes in international commercial law. We assist Dutch and foreign clients with all aspects of cross-border business: drafting and negotiating contracts, preventing and resolving disputes, international expansion plans, structuring M&A and joint ventures, compliance with EU regulations (AI Act, CSDDD, CBAM, GDPR), sanctions advice.
Our approach: pragmatic, cost-efficient, business-minded. We combine deep legal expertise with an understanding of your commercial objectives. For international aspects, we work with a network of reliable local law firms worldwide. For large and complex work, we scale up with dedicated teams. For most issues, a no-obligation introductory meeting is beneficial: you gain clear direction, and we understand your situation. Plan via muschlegal.nl.
Pillar: International commercial contracts
Pillar: International disputes
Pillar: International private law
Pillar: EU law for international business
Which law applies to your international contract?
Choice of law clause essential for export
Vienna Sales Convention explained