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 Statement of Use for $100 in each class 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. $35 to $45 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.

Copyright 1999 - 2009 Louise Aron All Rights Reserved