It is important to consider the logistics of moving your merchandise to your customers. For businesses considering international trade, however, it becomes a crucial part of their decision making and planning process.
Many countries seek to discourage imports through the imposition of tariffs, quotas and non-tariff barriers (NTBs) though they may agree to make concessions to selected countries, usually in exchange for some sort of trade agreement.
Certificates of origin (CO) verify a product’s country of origin and state where the product was manufactured, produced or processed, though this can become more complicated when raw materials come from one country and a product is then manufactured in another.
International trade is the exchange of goods or services for money between countries; foreign direct investment is investment by a business in another country for the purpose of trade, which could be domestic or international. However, there are many ways in which you can ‘internationalise’ your business.
Many countries use a system of advance customs rulings (ACR), more properly known as advance rulings on classification, origin and valuation. The objective is to provide decisions on product classification, origin and valuation prior to their import or export. This offers traders certainty and predictability and allows them to make informed business decisions.
This note has been prepared to assist you to think about the risks that you might face when engaging in international trade or investment. Whilst some of the risks may apply more broadly, this fact sheet does not attempt to cover all aspects of business risk.
The import and export of goods requires a written contract. The terms of this contract must be clearly understandable by both the exporter and the importer, even if they do not speak the same language, and even if their two countries have different business practices and legal systems.