International Trade Law

If you’re planning to expand your business internationally, you should be prepared to handle international business transactions according to the laws and policies of the countries you’re working in. Our business lawyers are prepared to assist you in establishing a foreign presence, navigating import/export procedures, and ensuring payment on international transactions.

The United States generally welcomes direct foreign investment and business enterprise. A foreign business may enter the US market by selling goods or services to unrelated US buyers or may decide to establish a “joint venture” with a US firm. The option selected depends on a variety of legal and tax considerations.

The importing of goods into the United States is under the jurisdiction of the US Customs Service, part of the Department of Homeland Security, which provides an efficient, highly-automated system for customs inspection. Business owners who import goods from other countries should pay particular attention to invoices, bills of lading, packing lists, entry manifests and surety papers. You can easily obtain and incorporate into your business a system for complying with customs regulations. You should also seek the advice of an import/export advisor to ensure that you are not putting your business at risk for underpaying tariffs and incorrectly designating products.

If you’re planning to enter into a relationship with a foreign business to import goods, you should develop a joint venture with the assistance of a business attorney familiar with foreign business transactions.

Whether importing, exporting or entering into a distribution agreement, a key provision is the payment terms provision. Various arrangements will allow you to reduce the risk of non-payment; of late payment; or, if making payment, to make payment less burdensome and risky. The important point is that you’re sure to address payment terms in every transaction.

Joint ventures in the United States commonly are structured in one of two ways: either the two businesses each contribute capital to a newly-created corporation or the foreign and US businesses either into a general partnership agreement and operate the joint venture as a partnership. There are various tax and corporate law issues relating to the preferred form of organization in particular cases, but the business goals of the venture can be accomplished in either form.

To export from the United States, the first hurdle to cross is US domestic regulations. Virtually all products require an export license; a general license is usually all that you will need. It’s comparatively easy to obtain a general license since public policy is in favor of exports, however, export restrictions apply to high-tech products and weapons as well as exports to certain countries.

The heart of legal considerations pertaining to exports is the financial arrangements for obtaining payment and the agreement to distribute or sell your product – there are many choices. Select the approach that best suits your taxation parameters and the laws of the country you are working with.

If you need assistance in establishing a business, business litigation or investment planning, contact the Washington, DC office of business law attorney Michael Trevelline at 866.853.5419.