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Ensuring Export Compliance: Understanding Foreign Country Import Requirements

On: November 13, 2017    |    By: Arnesh Roy Arnesh Roy    |    4 min. read

Ensuring Export Compliance: Understanding Foreign Country Import Requirements | Shipping SolutionsWhen U.S. exporters think about export compliance, they tend to think about complying with U.S. trade regulations. However, it is important not to overlook the rules and regulations that may be imposed by the customs authority in the country of import.

Depending on the terms of sale agreed upon, the exporter may be responsible for clearing their goods through foreign customs. Even if the foreign buyer is clearing the goods through customs, the exporter wants to help ensure they can do so as quickly as possible. It helps establish a long-term relationship.

Today’s article explains what kinds of import regulations exist and how to find out more information on specific country requirements.

You may have noticed a “CE” or “CCC” marking on the packaging of some products. CE designates conformity to European Union (EU) standards, while CCC designates conformity to Chinese standards.

Government agencies restrict trade on certain goods for various reasons, such as for national security, economic security, public health, or diplomacy. You may require prior approval in the form of a certification, registration, or licensure to trade certain goods, and there may also be special packaging requirements or additional paperwork.

Most governments collect taxes on importing and exporting goods, variously called tariffs, customs duties, or just duties. Establishing the terms of sale with your foreign buyer will identify which party in the transaction is responsible for fulfilling these duties. This discussion should occur during the sales process.

Incoterms are international trade terms accepted by most nations of the world that outline who is responsible for different parts of the transport of the goods including who is responsible for import duties. While Incoterms can help you agree upon the general allocation of responsibilities, any additional terms including specific documentation requirements should be outlined in the sales contract as well.

Download the free Incoterms 2020 Chart of Responsibilities.

Ask the ultimate consignee (typically your customer) or their broker about what paperwork they require, and try to find a freight forwarder that knows the region, as their experience in the local market means they may be a good resource in helping you navigate foreign country requirements.

The U.S. Commercial Service provides trade counseling, business matchmaking, market intelligence (including information on country-specific tariffs and trade agreements), and commercial diplomacy. Their trade specialists can help you understand foreign markets and can even connect you with foreign buyers. They have Export Assistance Centers across the U.S. as well as international offices around the world.

Export.gov is a central hub for exporters to find out more information on the export process. They publish a series of Country Commercial Guides, which are an excellent source of country-specific economic data.

Many states have state trade offices that provide similar assistance for companies engaged in international trade. Chambers of commerce in the country of import, foreign trade mission websites, and foreign embassies or consulates are also good resources.

Shipping Solutions Professional export documentation and compliance software includes a Document Determination tool that takes into account what you’re shipping, how you’re shipping, and where you’re shipping to in order to help you determine which documents you’ll need to provide for each shipment.

The Harmonized System (HS) is a universally accepted scheme for identifying specific products, and each country will add additional digits to the universal HS code to further specify products. Knowing the right HS code may be crucial in determining additional requirements and duties.

The Shipping Solutions Product Classification Wizard helps to identify the HS numbers for your products and their corresponding HS numbers in the country of import. Exporters can use this together with the Import Controls Wizard, which helps to determine if there are any controls placed on importing a product into a country.

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Arnesh Roy

About the Author: Arnesh Roy

Arnesh Roy was a Senior Inside Sales Representative at Shipping Solutions.

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What You Need to Know about Export Compliance | Shipping Solutions
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