import and export procedures

Its important to understand the definition of an export. There are a variety of ways you can structure an international sale and different options for getting paid. As you can see, you can be an exporter of a wide variety of itemsphysical, electronic or even just information. Are there warning signs about the freight forwarder you might choose? This kind of application is known as a commodity jurisdiction and DDTC has stated that seeking and receiving a commodity jurisdiction determination is the only way to obtain legal certainty of the jurisdictional status of an item and thereby reduces the risk of civil and criminal penalties for noncompliance. Incoterms 2020 rules that apply to any mode of transport are: Incoterms 2020 rules that apply to sea and inland waterway transport only: Product Classification for Customs Purposes. Partners represent a step up from a distributor relationship. Yes, it is time consuming, but you could face jail time if you are found to be in violation of these regulations. Virtually all exportsand many reexportsto embargoed destinations and countries designated as supporting terrorist activities require a license. Civil and criminal penalties for failing to file through AES or for filing incorrect information can be up to a maximum of $10,000 per violation. The export forms included with Shipping Solutions software are kept up to date and follow industry best practices. Why? If you have any questions or doubts, apply for a commodity jurisdiction request to help you understand jurisdiction. That includes items that are EAR99 or otherwise don't require an export license based on the country of export. The most widely used agreement is the North American Free Trade Agreement, more commonly known as NAFTA. According to BIS, An Export Compliance Program analyzes pieces of information and individual decisions and builds them into an organized, integrated system. Only a small percentage of exports under BISs jurisdiction require an export license, as determined by the products technical characteristics, the destination country, the end user, and a products end use. Rather than providing a standard quotation form like you may use for your domestic sales, you should reply with a proforma invoice. In addition, it details the financing options available to exporters through the bank. Your freight forwarder may use the information to create the necessary bills of lading. Whos Who in Your Export Journey >Chapter III. BIS publishes a list of red flags that could indicate a product may be destined for a prohibited use. Small- and medium-sized businesses may think they lack the time or money to train personnel in export regulations, and downplay the necessity of compliance screening. Appropriate corrective actions in response to export violations. The U.S. currently has free trade agreements with 20 countries covered by 14 different treaties. Today, primarily due to the internet, you can market your products and services around the globe without even trying. Products that may face growing competition in the U.S. or products that are becoming outdated in this country could find new life in other markets that dont have similar competition or need the very latest technology. Fortunately, there are many free tools available on the web to make that assessment. Even if they do have the necessary experience and training, export personnel may not have the support of senior management, who are often totally unaware of U.S. export regulations. The commercial invoices you prepare for your export shipment will probably include a lot more detail than the invoices you create from your accounting system for your domestic orders. >Chapter II. See also, The Importance of an Export Packing List for Your International Shipments. A classification will determine whether an export license is required based on the destination of the product. Revenue Commissioners- Importing & Exporting, Enterprise Ireland - Export Assistance Overview, First Floor, County Hall,Main Street, Swords, Co. DublinK67 X8Y2Google map location, Closed: Lunch: 13:00 - 14:00 Weekends & Bank Holidays, Microfinance Ireland COVID-19 Business Loan. To see how Shipping Solutions can help your company meet its export requirements. > Whos Responsible for Classifying Your Products for Import and Export? The Foreign Trade Regulations (FTR) require that all parties in an export transaction be able to provide "EEI, shipping documents, invoices, orders, packing lists, and correspondence as well as any other relevant information bearing upon a specific export transaction" within five years of the date of export. As a matter of fact, all self-propelled vehicles must be filed regardless of value or destination. You simply enter your information one time, and the software automatically formats and places the data in the right places on all your exporting documents. International Trade Administration website. Arab-Irish Certificates of Origin are issued jointly with the Arab-Irish Chamber of Commerce and have to be certified and in some cases legalised by the Joint Arab Irish Chamber of Commerce following certification by Fingal Dublin Chamber. Make sure you understand the risk factors in potential new markets. Fingal Dublin Chamber is officially registered by the Department of Trade & Enterprise and Chambers Ireland to issue and certify export documentation such as Certificates of Origin (EU Certs & Arab- Irish Certs), invoices, company documents and additional documentation. While the following six steps are by no means all-inclusive, they should provide companies with a starting point for implementing an export compliance plan. How many ports will I be using for exports? The regulations for shipping hazardous materials and dangerous goods are complicated, which you can learn about here. This is a cost-effective, time-saving option for most exporters. (NAFTA will probably soon be replaced by the U.S.-Mexico-Canada (USMCA) Free Trade Agreement. Goods subject to ITAR but exempt from licensing export requirements regardless of value or destination must be filed through AES. (To make it easier to stay in compliance and save precious time, try our Restricted Party Screening Wizard for free, so you can be sure that you are accessing the most current information available.). A Basic Guide to Exporting covers the options available and the information you need to know in order to purchase insurance. However, mistakes do happen, and the consequences can sometimes be devastating. For new exporters, its easy to be so excited to get started that you skim over details and get penalized. It can make your goods more competitive, particularly with companies located in other countries. These forms need to be completed by someone who has been trained to handle dangerous good shipping. If your item or product is on the USML, the State Department has jurisdiction over your export. They dont, however, say anything about the price of the goods, the method of payment, or when the title of the goods passes. Making mistakes can be very costly for a business and is likely to result in criminal offenses. ECCNs specifically identify items that are subject to U.S. export control regulations, and may require an export license. Most importantly, they dont replace the need for a sales contract. Pricing is a complicated, important aspect of exporting, so make sure you do thorough research to understand how and what to charge. Sign up for a free online demo at www.shippingsolutions.com/demo-request. If a government agency requests information pertaining to a particular export shipment before the five-year period is up, you must continue to keep all the records related to that shipment until you have written authorization to destroy them. The U.S. government, as well as several other governments and organizations like the United Nations and the European Union, publish lists of restricted parties to whom you can't export without a license. The appropriate Schedule B description of commodities; The appropriate quantity and unit of measure; The appropriate export control classification number (ECCN) or enough technical information to determine the ECCN. > USPPI vs. Exporter: Whats the Difference? Commercial items that fall under the jurisdiction of the EAR may have an ECCN code if it is considered to be a dual-use item. It is important to note that items for purchase off-the-shelf, directly from a manufacturer, or by any other commercial means may be controlled under the EAR. The U.S. Foreign Trade Regulations hold you, the exporter, liable for the accuracy of the information that is filed through AESeven if you are paying a third party to file on your behalfso its best to handle it yourself. To submit a request, fill out the commodity jurisdiction form on the DDTC website. Should your prices differ by market segment? A program for handling compliance problems, including reporting export violations. >Chapter I. The majority of U.S. companies are familiar with the domestic shipping terms identified by the U.S. Commercial Code, which are often a variation of FOB. Exports from the U.S. to Canada dont require an AES filing regardless of the value of the merchandise unless the item is a self-propelled vehicle, or an export license or license exception is required. The ocean bill of lading is used if your goods are shipping by ocean vessel. These restricted parties are individuals, businesses and other organizations that have been identified as engaging in activities related to the proliferation of weapons of mass destruction, known to be involved in terrorism or drug trafficking, or who have had their export privileges suspended. According to the Census Bureau, electronic filing of the export information improves the governments ability to monitor and prevent exports of critical goods and technologies that may threaten our national security and significantly improves the quality and timeliness of export statistics. Do I need a dedicated account representative? An eCO is faster and less expensive to obtain, allows for the option of delivering them electronically to the importer, and are registered with the International Chamber of Commercethe same body that publishes the Incoterms rulesto provide added credibility with various customs authorities. Unless a business is absolutely certain of its determinations, the business would be advised to submit an application to DDTC to determine the jurisdiction of the item. As mentioned above, weapons and other defense-related items that fall under the jurisdiction of the ITAR use the USML to classify the goods. Ideally, companies should have a consistent export documentation template and procedures in place that dictate what needs to be on each form. Your local U.S. Commercial Service office can help with all this market research. As a general rule (outlined in Part 762 of the Export Administration Regulations), export regulations require you to maintain export documentation for at least five years after an export transaction is complete. The commercial invoice includes most of the details of the entire export transaction. At what price should your company sell its product in the foreign market? Customs formalities have to be properly adhered to for all consignments coming into or leaving Ireland from countries outside the EU. Unfortunately for many small- and medium-sized businesses, company personnel may not know about these requirements until it's too late. In addition, criminal violators may be sentenced to prison for up to 20 years, and administrative penalties may include denial of export privileges. You can watch an 8- minute video of how Shipping Solutions works, or you can register for a free, private demo of the software. This decision tool will help you classify items that are subject to ITAR. Dual-use items are those goods that may be designed for commercial use but the government has decided could be used for military or terrorist purposes. The FTR expands that requirement to include all parties in an export transaction including the owners and operators of export carriers, U.S. You can search for an ECCN code in a printed copy of the EAR or online at the BIS website. hbspt.cta._relativeUrls=true;hbspt.cta.load(361415, 'ef9e6fff-222e-4674-b5f8-d69d561ebdfc', {"useNewLoader":"true","region":"na1"}); Incoterms 2020 rules are only a portion of an export sales contract. Thats a pretty good reason new exporters should make sure theyre avoiding potential problems when they prepare their export shipping crates. For example, a Low Value exception may mean you dont need to apply for an export license if the value of the export is below a certain dollar threshold. Read When Should You Refuse to Complete the NAFTA Certificate of Origin to learn more. It should serve as a starting point for creating a more comprehensive, written export compliance plan. The seller attaches the various required documents to the bank draft and presents it to the bank to get paid. The AES is the primary instrument used by the U.S. Census Bureau to collect data on U.S. exports, which becomes part of the statistics used to compile the U.S. position on merchandise trade. A Basic Guide to Exporting has helpful information about planning for direct sales, as well as government agencies that can assist you. To avoid them, you need to know which ones they are. An Export Compliance Programgives you a clear plan of how to audit your company's procedures and processes yourself, so you can identify and address any potential violations before they even surface. What type of marketing positioningalso known as customer perceptiondoes your company want to convey through its pricing structure? They typically arrange the transport of your goods with the carrier and help ensure youve taken care of all the details. Identify any intellectual property concerns. Ongoing compliance training and awareness. Twenty years ago, it took some effort to become an exporter. 2. For example, some export documentation requirements mandate five years from the date of export versus five years after the export is complete versus five years after an export license has expired. These documents will make sure the people transporting your goods know where they are going. If you choose to sell directly to end users, your company is responsible for all aspects of the transactionshipping, payment, product servicing, etc.unless you make other arrangements. The U.S. currently has signed 14 free trade agreements with 20 different countries. And even if they do qualify, there may be times when it makes sense to opt out and not choose to participate. It is also inconvenient for the foreign buyer, who is then saddled with high shipping costs and doesn't get to use your product for an extended amount of time. Creating an Export Compliance Program for your company does require some work, but it is absolutely worth it for the health of your company. Implementing Export Compliance Procedures, Chapter VI. Once they know why their products are controlled, exporters should refer to the Commerce Country Chart in the EAR to determine if a license is required. In addition, companies like International Business Training offer a variety of books, webinars and seminars on export rules and procedures. If you dont know these things you will risk delivery and payment delays, or worse still, nonpayment. You can sell to distributors who purchase goods from you (often at a discount) and resell them for a profit. Resources> An Introduction to Incoterms> Free webinar: Incoterms 2020 In Practice> Incoterms 2020 for Importers and Exporters> Incoterms 2020 Rules: Chart of Responsibilities and Transfer of Risk. They dont say anything about the price to be paid or the method of payment. You should not participate in the free trade agreement unless you are sureand can provethat the goods qualify. For more information about license exceptions, refer to the article, What You Need to Know about Export License Exceptions. That makes creating your export forms up to five times faster. To learn what each term means, use our glossary of international shipping terms. Shipping Solutions Professional export documentation and compliance software, Simplified Network Application ProcessRedesign, > What You Need to Know About Export Compliance, > Export Compliance: Understanding Restricted Party Screening, > EAR99 Isnt a Free Pass for Export Compliance, > Export Compliance: The Importance of Knowing End Use and End Users, > How to Determine If You Need an Export License. Shipping Solutions export documentation software makes it quick and easy to create accurate export documents by eliminating redundant data entry, properly formatting the correct information on each of the forms, and ensuring consistent information. As mentioned above, the EAR requires exporters and their agents (including freight forwarders) who export "commodities, software, or technology from the United States and any known reexports, transshipment, or diversions of items exported from the United States" to abide by these recordkeeping requirements. Partnering with such a company can make entering a new market easier and lessen the cost and pain of setting up infrastructure in another country. The ECCN is an alphanumeric classification found in the CCL. This includes identifying the market potential, learning how to properly (and legally) export your products or services to that market, identifying sales channels, and more. Your inventions arent the only thing you need to protect. Freight forwarders can ensure speedy and successful customs clearance, calculation of VAT and Customs duty and prompt payment to Customs and Excise, thus avoiding extra costs or penalties. See The ITAR Compliance Checklist. Just as with freight forwarders, make sure youre asking questions, not just partnering with the first company you meet. The five most common methods of payment in international trade are consignment, open account, documentary collections, letters of credit, and cash in advance. Embargoed countries are countries you are not allowed to do business with. Each of the 14 different agreements have different rules of origin for determining whether or not your product qualifies under the agreement. Depending on what youre exporting, you may need to apply certain hazmat requirements. The air waybill is required for shipments by air. Using one tool for all your exporting needs shows that youre serious about becoming a successful exporter, not an accidental one. This is an expensive option. Rather than manually checking each of the individual lists, Shipping Solutions Professional software's Export Compliance Module allows you to quickly and easily check all the parties in your export transactions against a consolidated list of denied parties. If completed properly, a proforma invoice will look a lot like your final commercial invoice. Like all good compliance programs, your decision-making process should be documented. International Commercial Terms (INCOTERMS)provide globally recognised rules for the interpretation of the most commonly used trade terms. You can do this manually via the Federal Register, but be aware that the number of lists to be checked is large. In addition, Shipping Solutions makes it easy to file your export information through the Automated Export System (AES) by prompting you to enter all the required fields. Adherence to recordkeeping regulatory requirements. Think about this for a second: Losses from improperly packed containers add up to $5 billion a year worldwide. The U.S. does not use HTS or Schedule B codes for export control purposesinstead, there are two specific classification types that deal with export compliance: Export Control Classification Number (ECCN) and U.S. You should also re-file your application every time you make a substantive change to your invention during the development cycle. This demonstrates your due diligence, so if something goes wrong, you can prove you made an effort to try to comply with the regulations. The bank you choose should do more than provide guidance in getting paid; it should also help you assess creditworthiness and guide you on the best payment methods for your particular situation. Do items need to be labeled individually? register for a free, private demo of the software. You may want to alter how you source some of the parts of your goods in order to get your goods to qualify for a particular free trade agreement if it will eliminate the import tariff. An item is also considered an export if it is leaving the U.S. temporarily, or if it is being returned to a foreign country. One of the first things to confuse new exporters is the difference in the type of trade terms that are commonly used in international trade versus domestic sales. If you have a product that is selling well in the United States, its not unusual to attempt to sell that same product or products in other markets as well. This section focuses on some basic steps that all export companies and their personnel should know, follow and document. EAR classification is the exercise of understanding where a product falls in the Commerce Control List (CCL). You can establish partnerships with local companies. 3. Understand and correctly apply Hazmat requirements if appropriate. Commodity jurisdiction requests are processed by DDTC. The EAR also identifies the dozens of records that are exempt from recordkeeping requirements. Companies have been using Shipping Solutions for more than 20 years to generate hundreds of thousands of documents to accompany tens of thousands of successful export shipments. Pricing is one of the most difficult challenges for exporters, even experienced ones. individuals, businesses and other organizations that have been identified as engaging in activities, answers to your questions about freight forwarders, you and the employees who will be dealing with these goods are thoroughly trained, An Introduction to Shipping Dangerous Goods, download PDF samples of the export documents. The jurisdiction sets the stage for the actions you can and cant take, and determines what type of export restrictions or licensing requirements you may face. In this case, you may find an existing company in your intended foreign market that has a distribution and support system already in place. hbspt.cta._relativeUrls=true;hbspt.cta.load(361415, 'ab278456-d507-42f3-9cb9-6891dc6e0ff8', {"useNewLoader":"true","region":"na1"}); Before you can take the proper export procedure steps, you need to understand who is involved in the export process. The Export Administration Regulations (EAR), which cover most exports that don't fall under the jurisdiction of the U.S. State Department, defines the types of records that must be retained, including: Export control documents as defined in Part 772 of the EAR, Restrictive trade practice or boycott documents and reports (read more about anti-boycott compliance here), Notification from BIS of an application being returned without action, being denied, or being reviewed, Other documents pertaining to the transaction. Munitions List (USML). Documenting the steps in your export compliance program. It may help to start by reviewing the 10 Terms You Need to Know to Help You Get Paid for Your Exports. Exports are subject to the various U.S. export regulations that govern the movement of goods, and you can face substantial penalties for violating those regulations. Businesses that are already exporting or planning to start exporting need to follow some basic steps to ensure they comply with U.S. export regulations. Being an accidental exporter is easy; being a successful exporterone who makes money, grows a business, and stays out of troubletakes some work. Furthermore, Incoterms dont deal with the transfer of ownership of the goods, breach of contract, or product liability; all these issues need to be considered in the contract of sale. For example, companies should be reasonably suspicious when orders are inconsistent with the needs of the purchaser; when a customer declines installation and testing that is included in the sales price or is normally requested; or when requests for equipment configurations are incompatible with the stated destination. 2. Review and Understand Export and Import Regulations. See Chapter V for more details. A bank draft is an important part of getting paid for your exports under a documentary collection. hbspt.cta._relativeUrls=true;hbspt.cta.load(361415, 'f5ebd381-a5c0-478e-9195-a4f90e1f166d', {"useNewLoader":"true","region":"na1"}); Resources> The Export Shipping Documentation Process: An Overview> 7 Essential Resources for Completing Export Documents> 6 Things That Can Go Wrong When Creating Export Documents.

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