Identifying Trade Barriers, Customs, Standards. Trade Barriers, Regulations, Customs, & Standards Tariffs or taxes imposed on imported goods that, when.

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Presentation transcript:

Identifying Trade Barriers, Customs, Standards

Trade Barriers, Regulations, Customs, & Standards Tariffs or taxes imposed on imported goods that, when high, may make it difficult to sell your product profitably in a foreign market. Non-tariff barriers, such as laws and regulations that countries enact that protect domestic industries against foreign competition. Non-tariff barriers include import quotas or restrictions on quality of imports. International Standards promoted by the International Standards Organization (ISO) involves establishing quality manufacturing and service standards, and certification and monitoring world wide. Originally advocated by the European Union, around 100 nations are now considering adopting ISO processes, as seen in the IS (a generic family of standards and quality control systems). Communication may be a problem if you do not speak your potential customer's language. Distribution arrangements may present barriers if the market has not yet been explored by other U.S. businesses. Whether or not patents and trademarks exist on similar products or property in that countrypatents Licenses

What product labeling requirements must be met? (Metric measurements, AC or DC electrical, voltage, etc.) Keep in mind that the European Community now requires 3 languages on all new Product Design Branding Packaging There may be labeling requirements for the (1)package containing the product and (2) for the crate containing the packages. (1) Packaging Requirements: See TradePort Trade Compliance Center

Source of Information Country Commercial Guide – “Country Commercial Guides (CCGs) are prepared annually by U.S. embassies with the assistance of several U.S. government agencies. These reports present a comprehensive look at countries' commercial environments, using economic, political and market analysis. The U.S. Department of Commerce posts CCGs on their site as they are released.”

Country Commercial Guide Consult the “6. TRADE REGULATIONS, CUSTOMS AND STANDARDS” Section a.Will any of the issues discussed in this section affect the exporting of your product? If yes, which ones? b.Review the major subcategories.

E.g. Greece & Ink Jet Printers 1.“Trade Barriers” –E.g. Greek film production is subsidized by a 12 percent admissions tax on all motion pictures. Enforcement of Greek laws protecting intellectual property rights for film, software, music, and books has been is problematic, but has considerably improved in the last few years. a.Will this affect the exporting of ink jet printers form the U.S.? If yes, how?

E.g. Greece & Ink Jet Printers 2. “Custom Valuation” –Trade between EU members is duty-free. Import duties on products from non-EU countries, (including the U.S.), is percent for most manufactured products. –In general, duties are lower on most raw materials and higher on some other product categories, such as textiles. Import duties are applied on C.I.F., ad valorem basis. –In addition to import duties, imports are subject to other minor surcharges totaling less than 1 percent. a.Will this affect the exporting of ink jet printers form the U.S.? If yes, how? (See next slide for info on duties.)

E.g. Greece & Ink Jet Printers 3. “Labeling” –“Labels must be in Greek. The Greek labels can be attached to the product between clearing customs and being offered for sale.” a. Will this affect the exporting of ink jet printers form the U.S.? If yes, how?

E.g. Greece & Ink Jet Printers 4. Standards Product Certification “To sell their product on the EU market of 25 member states as well as Norway, Liechtenstein and Iceland, U.S. exporters are required to apply CE marking whenever their product is covered by specific product legislation.” a. Will this affect the exporting of ink jet printers form the U.S.? If yes, how?

E.g. Greece & Ink Jet Printers 4.Standards –Labeling/Marking “Manufacturers are advised to take note that all labels require metric units although dual labeling is also acceptable until end of December The use of language on labels has been the subject of a Commission Communication, which encourages multilingual information, while preserving the freedom of Member States to require the use of language of the country of consumption.” a. Will this affect the exporting of ink jet printers form the U.S.? If yes, how?

E.g. Greece & Ink Jet Printers Standards –Special Import Provisions “Greece has three free-trade zones, located at the Piraeus, Thessaloniki, and Heraklion port areas. Goods of foreign origin may be brought into these zones without payment of customs duties or other taxes and remain free of all duties and taxes if subsequently transshipped or re-exported.” a. Will this affect the exporting of ink jet printers form the U.S.? If yes, how?

Country Commercial Guide Consult the “4. MARKETING US PRODUCTS AND SERVICES” Section a.Will any of the issues discussed in this section affect the exporting of your product? If yes, which ones? b.Review the major subcategories.

E.g. Greece & Ink Jet Printers Credit –“U.S. exporters should bear in mind that letters of credit and drafts in amounts generally required by small businesses are very expensive in Greece. Banks require the cash equivalent to be deposited before issuing any guarantees.” a. Will this affect the exporting of ink jet printers form the U.S.? If yes, how?

Country Commercial Guide Consult the “9. BUSINESS TRAVEL” Section a.Will any of the issues discussed in this section affect the exporting of your product? If yes, which ones? b.Review the major subcategories.

E.g. Greece & Ink Jet Printers Pricing “Greece has no price controls, except for pharmaceutical and agricultural products. When pricing a product, firms should consider payment and credit terms. Orders are usually small, and Greek importers will request special consideration if a U.S. supplier requires large orders. Greek importers generally expect a C.I.F. quotation, except when the purchasing company does a large amount of direct buying and provides its own insurance. American firms should be prepared to quote prices on whatever basis is preferred by the prospective buyer.” a. Will this affect the exporting of ink jet printers form the U.S.? If yes, how?

E.g. Greece & Ink Jet Printers Business Infrastructure –“Greek inland surface transportation is via road and railroad network. Main streets and highways are paved, while secondary roads are generally rough. Most roads are two-lane, except the parts of the National Road which have four lanes. The road network is considered to be good, and is being constantly expanded.” a. Will this affect the exporting of ink jet printers form the U.S.? If yes, how?