1. Pattison, Sampson, Ginsberg & Griffin, P.C.
Michael E. Ginsberg, Esq.
Pattison, Sampson, Ginsberg & Griffin, P.C.
22 First Street, P.O. Box 208
Troy, New York
(518)
(518) Fax

2. INTERNATIONAL TRADE

3. Interaction with Foreign Trade Partners
Contract Based
Incoterms (International Commercial Terms of Sale)
Payment Terms
Insurance
Trade Barriers

4. Incoterms (International Commercial Terms of Sale)
New, beginning 1/1/11
Formulated by International Chamber of Commerce
Eleven standard terms recognized internationally
Allocate risk associated with shipping of goods
i.e. where goods are to change hands
who will clear goods for export,
Who will insure the goods, etc.

5. Rules of Any Mode of Transport (also knows as “multimodal” Incoterms)
Incoterm Definitions
Rules of Any Mode of Transport (also knows as “multimodal” Incoterms)
CIP – Carriage and Insurance Paid
CPT – Carriage Paid To
DAP – Delivered At Place
DAT – Delivered At Terminal
DDP – Delivered Duty Paid
EXW – Ex Works
FCA – Free Carrier

6. Incoterm Definitions Cont.
Rules for Sea and Inland Waterway Transport Only
CFR – Cost and Freight
CIF – Cost, Insurance and Freight
FAS – Free Alongside Ship
FOB – Free on Board

7. When will seller be paid? How? In what currency?
Payment Terms
When will seller be paid? How? In what currency?
payment in advance
Letters of Credit
Revocable
Sight

8. Payment Terms Cont. Currency Risk Floating lock into specific rate
lock into rate range (high – low)
When can goods be rejected?
What process will be followed?
what law will apply?
Compliance with foreign law?

9. Insurance Insurance for lost or damaged goods Credit Insurance
insures receivables (export and domestic) backed by letters of credit
allows for greater financing opportunities
generally a lender will not consider export receivables in underwriting process
with credit insurance lender will take such exports into consideration

10. Insurance Cont. Technology Transfer (IP)
Export Import (ExIm) Bank
Does not cover contract disputes

11. Trade Barriers
Tariffs
VAT credits

12. EXPORT CONTROL

13. What information do you need to know for every export transaction?
What is the item? (need to know functions, characteristics, technical parameters of item)
Where is it going?
Who will receive it?
What will be the end-use?
Obtain Letters of Assurance.

14. DEFINITIONS ITEM EXPORT DEEMED EXPORT
Items are commodities, software and technology.
EXPORT
An export is the transfer of a physical item, computer software or technical information to a foreign country.
DEEMED EXPORT
A deemed export is the release of information, technology or source code to a foreign national on U.S. soil.

15. REEXPORT
A reexport is a shipment or transmission of items from one foreign country to another.
EXPORT CONTROL CLASSIFICATION NUMBER (ECCN)
ECCN is an alpha-numeric code used to identify items listed on the Commerce Control List (“CCL”) which is a list of items under the export control jurisdiction of The Bureau of Industry and Security (BIS) of the U.S. Commerce Department.
DUAL USE ITEMS
Items which may have a military or terrorist application even though they were not created for that purpose.

16. ITEMS SUBJECT TO EAR All items of U.S. origin wherever located.
All items in the U.S., including a U.S. Foreign Trade Zone or items in transit through the U.S. from one foreign country to another.
Foreign-made items that incorporate controlled items of U.S.-origin, foreign-made items “bundled” with controlled items of U.S.-origin software, foreign-made software that is commingled with controlled U.S.-origin software, and foreign-made technology commingled with controlled U.S.-origin technology.

17. ITEMS SUBJECT TO ITAR
Defense Articles and Services (munitions and items with military application including technical data.)
A defense article is any item appearing on the U.S. Munitions List.
A defense service is the furnishing of technical assistance, training, or technical data related to defense items, including information, training, text, plans, plant visits, etc.

18. PENALTIES

19. EAR Civil Fines $250,000 per violation. Criminal Fines $1,000,000.
Denial Order.
Civil Fines $250,000 per violation.
Criminal Fines $1,000,000.
Imprisonment of up to 10 years
Seizure and Forfeiture of Goods

20. ITAR Debarment Civil Fines $500,000 per violation.
Criminal Fines $1,000,000.
Imprisonment for up to 10 years
Seizure and Forfeiture of Goods and Means of Transport

21. WHEN THE ENFORCEMENT OFFICERS COME

22. The information contained herein is not a substitute for advice from independent legal counsel and does not create a lawyer client relationship. You should not act upon such information without first seeking advice from your attorney.

23. QUESTIONS?