The five biggest legal risks for Dutch exporters are non-payment, product liability, sanctions, GDPR violations, and inadequate dispute resolution. At Musch Legal, we see these risks recurring structurally — often in combination. For exporters, preventive legal preparation is not a luxury but a prerequisite for survival. A structured approach across five risk areas significantly reduces the chance of millions in damages.
What is the legal problem? (Which risks are accumulating?)
Exporters work with foreign counterparties, unfamiliar markets, and often unfamiliar legal systems. Standard agreements that work in the Netherlands fall short internationally. Five risk areas recur most frequently: non-payment (financial loss), product liability (claims), sanctions (criminal prosecution), GDPR (fines), and dispute resolution (legal costs). The accumulation of these risks in exports without structural preparation often leads to operational damage.
What does the law say? (Which frameworks affect exporters?)
For non-payment: Directive 2011/7/EU on combating late payments (Article 6:119a of the Dutch Civil Code). Product liability under Directive (EU) 2024/2853 and Article 6:185 of the Dutch Civil Code. Sanctions under Regulation 833/2014 and the Sanctions Act 1977. GDPR (Regulation 2016/679) extraterritorial. For dispute settlement: Brussels I-bis (Regulation 1215/2012), New York Convention 1958, Rome I (Regulation 593/2008).
For export credit insurance: Atradius Dutch State Business and Credendo.
Risk
Potential damage
Prevention
Non-payment
100% invoice value + interest
L/C, credit insurance, EPL
Product liability
Up to millions + recall
Insurance + General Terms and Conditions limitation
Sanction violation
Criminal prosecution + fine
Automated screening + clause
GDPR fine
Up to 4% of global turnover
DPA + SCCs + TIA
Poor dispute resolution
3-5x higher costs
Arbitration under NYC + choice of forum
Risk
Potential damage
Prevention
Non-payment
100% invoice value + interest
L/C, credit insurance, EVB
Product liability
Up to millions + recall
Insurance + GDPR limitation
Sanction violation
Criminal prosecution + fine
Automated screening + clause
GDPR fine
Up to 4% of global turnover
DPA + SCCs + TIA
Poor dispute resolution
3-5x higher costs
Arbitration under NYC + choice of forum
What risks do companies face? (What is the cumulative threat?)
For SME exporters, a combination of two to three risks simultaneously can impact operational continuity. Non-payment of 250,000 euros plus a product claim of 400,000 euros plus a GDPR fine of 150,000 euros — a total of 800,000 euros in avoidable damage for the average SME. At the same time, all these risks can be managed structurally with a preventive approach.
Practical example from our practice (How do we save an exporter from double risk?)
Musch Legal represented a Dutch exporter with simultaneous problems: Russian client not paying due to sanctions (claim 750,000 euros), Indian client claiming product defect (claim 320,000 euros), GDPR notification required due to data breach at German partner. We coordinated all three simultaneously: sanctions defense under Section 6:75 of the Dutch Civil Code, product defect defense under the general terms and conditions cap, and GDPR notification within 72 hours. Total recovery of 580,000 euros on an estimated risk of 1.4 million euros.
What can you do? (Which prevention framework are you building?)
Implement a 5-risk framework: 1. Payment: L/C, credit insurance, EVB; 2. Product: insurance, A&E limitation, quality control; 3. Sanctions: screening + clause; 4. GDPR: DPA + SCCs + DPO; 5. Disputes: arbitration under NYC + choice of forum. Combine with annual audit, training, and external legal counsel. Engage Musch Legal for an exporter risk framework.
The five biggest legal risks for importers