When working with small companies with a small number of shareholders, liability in terms of legislation is limited. But if you decide to move your small business internationally, the process can also be quite serious and complicated. In terms of expanding exports and imports globally, the two main international business expansion processes will be a subjective issue in most cases that you will have to deal with.
What do you need to know about import and export law?
When you do business in a different culture with different rules, policies, and traditions, you are governed not only by the laws of the United States, but also by the laws of other countries. Whether you prefer to trade through FDI (foreign direct investment) or export-import, you must do your business correctly, which requires obtaining a license from the US federal government. In this case, an experienced business attorney will suffice so you can work smoothly.
You must obtain an export license for products such as chemicals, software, electronic devices, and computer components. These export licenses are issued by various agencies of the United States government. Since exports help create jobs for Americans and justify the trade balance, the federal government will help you with this. Help can be extended in other ways, including the following:
- The National Commercial Data Bank will provide information on potential customers.
- The Commerce Department can alert you to export financing, political risk insurance, and other international business matters.
- The Export Legal Aid Network will provide you with a source of good attorneys.
Import law enforcement is overseen by the US Department of Homeland Security, Customs and Border Protection Every importer should be familiar with the rules for bringing merchandise into the United States for sale. This policy is called Informed Compliance. By law, you will be required to pass in accordance with applicable customs. Based on reported compliance, the importer bears the entire burden, from confiscation of the goods to severe civil penalties. Payment of customs duties in full is required. Depending on negligence, underpayment, fraud, or disclaimer, fines may apply that can increase your customs duties 2-8 times, resulting in loss of revenue.
You have to pay taxes or duties on everything you bring. The duty may vary depending on the favorite country. While the duty rate can be lowered in such cases, it can also be banned entirely for political reasons.
Foreign investments and international contracts:
Generally, foreign investment carries enough risks in the hope of making a profit in another country. Therefore, you must understand the cultural and legal climate of a country before investing.
For international contracts, the probability of disputes is high. Because contractors like manufacturers, agents and distributors are difficult to control. Whatever your responsibilities, always have clear written instructions between the parties and collect all the details from their business profiles.