INTERNET EXPORT BUSINESS

Now someone in a country you never heard of wants to buy a product or service from you. What do you do?

Initially, you have to be concerned with the same problems as in domestic business, like can I deliver, will I get paid, etc. However, these and other issues are more complicated when you are selling abroad.

You have to consider:
1.    U.S. Export Controls.
2.    Foreign Import Controls.
3.    Foreign Payment Controls.
4.    U.S. Payment Controls.
5.    Tariffs (Custom Duties).
6,    Assistance from Bertil C. Lindberg 

I.    U.S. Export Controls 

The United States Government restricts the export of certain products and services to certain countries. Countries to which exports are most restricted include Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria. The reasons for export control fall into the following categories: national security (NS), anti-terrorism (AT), encryption items (EI), and drugs. 

The Bureau Industry and Security (formerly the Bureau of of Export Administration), (BIS, http://www.bis.doc.gov/), a part of the U.S. Department of Commerce, gives assistance regarding the export of products and services from the United States. As export is economically very important to the country - as it is to all countries - the BIS is very keen on helping you.

Also try the Trade Information Center at 1-800-USA-TRADE or http://www.trade.gov/td/tic/.  

The following table lists the U.S. departments and agencies that are involved with the control of exports, as well as the products (services) covered by each. 

The export of some products to some countries is exempt from export control in some instances. Among such instances are: baggage (BAG), and temporary exports (TMP). However, note the control of baggage after the September 11, 2001 events. 

In all cases you should check with the government authorities. 

II    Foreign Import Controls 

If someone asks you to send goods to a foreign country, you can normally assume that it is legal. To be sure call a consulate of the country in question. 

III    Foreign Payment Controls 

The economy of some countries is so bad that foreign payments are restricted. Call your bank or a consulate of the foreign country to find out if you can get paid. Try to arrange to get paid in advance of shipment. Having a bank issue a Letter of Credit is an arrangement where the bank guarantees that the exporter gets paid and the importer that he/she gets the merchandise. 

Rules are in force to restrict and/or prevent the "laundering" of illegal money, i.e. money from illegal drug traffic, for terrorism and other illegal activities. 

Since September 11, 2001 accounts of suspected terrorists are being controlled and/or blocked in the United States and in other countries. 

IV    U.S. Payment Controls

You can make payments from the United States to almost any country in the world. Exceptions include payments to Cuba, North Korea, etc. and to drug traffickers, terrorists, etc. 

V    Tariffs (Custom Duties)

For years countries imposed duties on imports in order to get revenue and to restrict imports by making them expensive. Today many groups of countries have joined in custom unions and free-trade-areas, meaning that custom duties have been abandoned or at least reduced. The United States has been such an area since 1776. Today we have the European Union, and the North American Free Trade Area (NAFTA), Asia-Pacific Economic Cooperation (APEC), Council for Economic Mutual Assistance (CEMA, consisting of Bulgaria, Czechoslovakia, Hungary, Poland and Romania), European Free Trade Area (EFTA), and Free Trade Agreement of the Americas (FTAA)

As the importer pays the duties, exporters do not have to be concerned.

VI.    Assistance from Bertil C. Lindberg 

Bertil C. Lindberg will assist you in these matters. Start by clicking on
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Last revised June 19, 2006
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