BASIC
INTERNATIONAL TRADE OUTLINE
NOT INTENDED AS LEGAL ADVICE - CONSULT WITH A QUALIFIED ATTORNEY BEFORE
RELYING ON THIS INFORMATION
Getting Started
Consider connections and contacts.
Go where product/service is needed. Make modifications for intended market (ie. metric, safety laws). Travel to market.
Consider shipping options: air, ocean, truck, rail, mail. Be wary of currency fluctuations. Political risk insurance is
available through the Export/Import Bank.
Letters of Credit/Financing
Letter of Credit poses the least risk to seller, greatest to buyer.
Cash in advance is least risk to buyer, most to seller.
Incoterms and Risk
of Loss
Risk of loss and cost of freight and insurance varies for "F", "C"
and "D" terms differ. FCA Houston means freight paid by seller to Houston (FOB requires ocean transport), CFR Houston (seller
pays freight to Houston), CIF Houston (seller pays freight and insurance to Houston). "D" terms usually specify foreign "port."
Visas These
are the immigration permits provided upon entering a foreign country. Get the one which fits your purpose.
Agents and Distributors
Your representatives in a foreign country. Watch for termination
regulations and laws regarding pension benefits. Agents may be authorized to sign contracts on behalf of the U.S. company
and often work on commission. Distributors "import" product from the U.S. company and are compensated by the difference between
the price they pay the U.S. company and the price for which the product is sold by them. Some foreign countries require that
these representatives registrer with the government. Laws of foreign countries may regulate when and how termination of a
representative in that country may occur.
Licensing and Joint Venture Agreements
Licensing Agreements regulating how you will deal with a foreign company
or person, and often (but not always) involve payment of royalties or fees based on revenues or sales. Joint Venture Agreements
concern how two parties intend to complete a project.
European Union
The European Union (EU) version of UL (Underwiter's Lab) certification
for certain industrial products is the Conformitee Europeenne (accents omitted) or CE Mark, allowing sales in the EEA (EEA
is the EU - Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal,
Spain, Sweden and United Kingdom plus Iceland, Norway, Liechtenstein).
Technology
Transfer Laws
Less developed countries don't want foreign companies to take all
of their expertise with them when they leave.
Foreign Corrupt Practices
Act, 15 U.S.C. 78mm, 78dd-1 to 78dd-3
US regulates bribery and fraud in international trade. No bribery
of employees or officials of foreign governments. Penalties: fines and jail. Justice Department review available.
Antiboycott Regulations
No discrimination on account of race, religion, sex or national origin
in foreign trade. Penalties: fines, prison, trade sanctions. Report problems to Department of Commerce.
Export Administration Regulations 15 C.F.R. 730 to 774
Guarantees certain items (often computer encryption related) will
not end up in certain countries. Penalties: fines, jail, trade sanctions (ie, denial of export privileges).
Trademark Registration
Protects against unauthorized use of a symbol or distinctive name
or name/symbol combination. US protection is for 10 years (file Certificate of Use after 5th year), renewable as long as
its in use. Record with Treasury Dept. to prevent importation of "counterfeits". State registration is available for intrastate
coverage. Check laws of foreign countries for registration abroad. For info. call Patent and Trademark Office. Click
the Trademark and Copyright button on the toolbar on the left side of the top of this page for an outline by Louise Aron of
the basics of trademark and copyright.
Copyright
Protects written materials, including labels; brochures; posters;
and catalogs. US protection is author (or copyright holder's) life plus 70 years.
Copyright 20___ XYZ, Inc. All Rights Reserved
US Government material is not copyrighted and is in "public domain".
Copyrights to work done while employed belongs to the employer. $20 registration fee in US, and takes a few months. For
info. call US Copyright Office. Click the Trademark and Copyright button on the toolbar on the left
side of the top of this page for an outline by Louise Aron of the basics of trademark and copyright.
Patent Registration
Protects against copying of inventions, manufacturing processes and
composition of matter. US patent is for 17 years, not renewable. For international trade, Patent Cooperation Treaty (use
the WIPO - World Intellectual Property Organization in Geneva, Switzerland) and European Patent Convention may apply. For
info. call US Patent and Trademark Office. For EU patents, use the European Patent Office (EPO) in Munich, Germany.
Importing
Pay duty or tariff on imported goods and their reusable containers.
File protest if disagree with tariff (duty) rate. Entrydocuments - file within 5 days. Entry summary after pickup. Invoice:
detailed depending on the item. Temporary import - post Bond for more than required duty and obtain refund when item is
exported. Reduced or no duty: GSP - Generalized System of Preferences - developing countries; CBI - Caribbean Basin Initiative;
FTA: US - Israel Free Trade Area.
Dispute Resolution
Arbitration is recommended and therefore must be included in every
written agreement. International enforcement of agreements is often extremely expensive and difficult. Choose your international
associates carefully to avoid disputes.
NOT INTENDED AS LEGAL ADVICE - CONSULT WITH A QUALIFIED ATTORNEY BEFORE
RELYING ON THIS INFORMATION
Copyright 1999, 2000, 2001, 2005, 2006, 2007 Louise Aron All Rights Reserved
