Handling small scale Businesses with a little number of shareholders have limited liability in terms of law regulations. Because the sole proprietorship does not have any separate legal entity for holding liability for the business's debts. But once you go ahead to take your small business International, the process could be quite serious and complicated too. As a global expansion plan Export and Import, the two major processes of international business transactions are going to be the subjective issue in most cases you have to deal with.
What to Know about Import Export Law?
While doing business in another culture with different rules, politics and traditions, you are governed not only by U.S. laws, but also by the laws of other countries. Whether you prefer trading through FDI (Foreign Direct Investment) or export-import you have to do business properly for which licensing from US federal government is a necessity. An experienced business law attorney would suffice your requirement for smooth operational flow in such case.
You need to collect export license for goods like chemicals, software, electronic devices, and computer components. Various agencies under US government issues these export licenses. Since exporting helps in creating jobs for American and justify the trade balance too, Federal Government will help you in this case. The help can be extended in other ways as well as follows:
• The National Trade Data Bank will deliver business leads
• The Department of Commerce can alert you for export finances, political risk insurance and other international trade issues.
• The Export Legal Assistance Network would provide you source for good lawyers.
The law enforcement on importing is being monitored by U.S. Customs and Border Protection (Customs) division of the Department of Homeland Security. Every importer has to learn the rules of bringing goods to US for sell. This policy is called "Informed Compliance". The law will ask you to go by the customs applicable. According to informed compliance the importer carries every burden from seizure of goods to severe civil penalties. Paying custom duty in full is mandatory. Depending on the negligence of underpayment or fraud or refusal of liability, penalties can be draw upon which can make your custom duty 2 to 8 times higher leading to loss of revenue.
You need to pay taxes or duties for anything you import. Depending on the country favorites, the duty may get varied. While the duty rate may get reduced for such occasion, it can also be completely forbidden altogether for political reasons.
Foreign Investment and International Contracts:
Typically Foreign Investments carries enough risks with the hope of earning profits in different country. So you need to understand the cultural and legal climate of the country before investing.
For International Contracts the possibility of disputes is high. Because the contracting partners like manufacturers, agents, distributors are hardly controllable. Whatever be your responsibilities there always set out clear instructions in writing among the parties and collect every detail of your trade profiles.