1. Chapter 15 1. How the U.S. government helps exporters
2. The additional steps necessary to move good across country borders
3. How various import restriction are used politically

2. Chapter Learning Objectives
4. Means of reducing import taxes to remain competitive
5. The main instruments of foreign commercial payments
6. The mechanics of export documents and their importance
7. The logistics and problems of the physical movement of goods

3. Exporting is an integral part of all international business
Introduction
Exporting is an integral part of all international business
It is important to be knowledgeable about the export and import documents, tariffs, quotas, and other barriers to the free flow of goods between countries

5. Export Restrictions
To comply with various regulations, the exporter may have to acquire export licenses or permits from the home country
To alleviate problems of exporting, the Department of Commerce has published a revised set of export regulations known as the Export Administration Regulations (EAR)

8. Import Restrictions
Import regulations may be imposed to protect health, conserve foreign exchange, serve as economic reprisals, protect home industry, or provide revenue in the form of tariffs
The most frequently encountered trade restrictions include:
Tariffs
Exchange Permits
Quotas
Import Licenses
Standards
Boycotts
Voluntary Restrictions

9. Import Restrictions 1. Tariffs:
Custom duties are based on value or quantity or a combination of
both and are classified as follows:
2. Exchange Permits:
To conserve scarce foreign exchange many countries impose restrictions on the
amount of their currency they will exchange for the currency of another
country

10. Import Restrictions (contd …)
3. Quotas:
Countries may also impose limitations on the quantity of certain
goods imported during a specific period
4. Import Licenses:
5. Standards:
Health standards, safety standards, and product quality standards are necessary
to protect the consuming public from imported

11. Terms of Sale
1. CIF
(cost, insurance, freight) to a named overseas port of import. It
includes the costs of goods, insurance, and all transportation and
miscellaneous charges to the named place of debarkation
2. C&F
(cost and freight) to a named overseas port. It includes the cost of
the goods and transportation costs to the named place of
debarkation. The cost of insurance is borne by the buyer
(free on board) at a named inland point, at a named port of
exportation, or at a named vessel and port of export. The price
includes the cost of the goods and delivery to the place named
3. FOB

12. Getting Paid: Foreign Commercial Payments
The basic payment arrangements for exported goods include:
Letters of Credit
Cash In Advance

14. Export Documents The most frequently required documents are:
Export Declarations
Consular Invoices or Certificates of Origin
Bill of Lading
Commercial Invoice
Insurance Policy or Certificate, and
Licenses

15. Customs-Privileged Facilities
To facilitate export trade, countries designate areas called customs-privileged facilities, where goods can be imported for storage and/or ­processing with tariffs and quota limits postponed until the products leave the designated areas
Customs-Privileged Facilities include:
Foreign trade zones (also known as free trade zones)
Free ports, and
In-bond arrangements or Maquliadoras

20. Foreign Freight Forwarder
The forwarder is an indispensable agent for an exporting firm that cannot afford an in-house specialist to handle paperwork and other export trade mechanics
A freight forwarder double-checks all assumptions made on the export declaration, such as commodity classifications, and will check the list of denied parties and end uses