######## ![](media/image1.png){width="0.7201388888888889in" height="0.7604166666666666in"}INTERNATIONAL BUSINESS ARTICLES APRIL, MAY AND JUNE 2007

**U.S. Department of Commerce**

**International Trade Administration - U.S. Export Assistance Center**

**425 West Capitol Avenue, Suite 425, Little Rock AR. 72201**

**Phone: 501-324-5794 Fax: 501-324-7380**

**little.rock.office.box@mail.doc.gov** <http://www.buyusa.gov/arkansas>

# 

# This month's articles include:

[Commerce Applies Anti-Subsidy Law to
China](#commerce-applies-anti-subsidy-law-to-china)

[Commerce Plans to Shift Resources to World's Emerging
Markets](#worlds_emerging_markets)

[Commerce Plans Federal Initiative to Attract Foreign
Investment](#attract_foreign_investment)

[June 1 User Fee Requirements for Trucks Entering U.S. from
Canada](#Agriculture_User_Fees_US_from_Canada)

[Call Centers in Northeast Mexico](#Call_Centers_Northeast_Mexico)

[Brazil to Join International Trademark Application
System](#brazil_international_trademark)

[Air Express Shipment to Brazil](#air_express_brazil)

[Saudi Arabia New Certificate of Conformity](#saudi_arabia_certificate)

[E-Commerce with the European Union](#ECommerce_EU)

[European Union: Additional Customs Duties on Certain U.S.
Goods](#EU_Additional_Duties_May_2007)

[Arkansas Company Hytrol Conveyor Recipient of President's
E-Award](#section-3)

[Basics of Export Licensing](#Basics_Export_Licensing)

[Getting Paid by Your Latin-American
Buyer](#Getting_Paid_Latin_American)

[Breaking Down Components of Repair Kits for Harmonized Code
Number](#breaking_down_components)

[Payment Methods Favored for Different Regions of the
World](#payment_methods_regions_world)

[Useful Websites](#Useful_Websites)

# 

# 

# COMMERCE APPLIES ANTI-SUBSIDY LAW TO CHINA 

#### March 30, 2007 Office of Public Affairs, U.S. Dept. of Commerce, International Trade Administration

The U.S. Department of Commerce announced its preliminary decision to
apply U.S. anti-subsidy law to imports from China. This is the first
time countervailing duties will be imposed on imports from a non-market
economy. The decision alters a 23-year old bipartisan policy of not
applying the countervailing duty (CVD) law to non-market economy
countries, and reflects China's economic development. To read the entire
press release, [click
here.](http://www.commerce.gov/opa/press/Secretary_Gutierrez/2007_Releases/March/30_Gutierrez_China_Anti-subsidy_law_application_rls.html)

[Back to list](#this-months-articles-include)

[]{#worlds_emerging_markets .anchor}**COMMERCE ANNOUNCES PLAN TO SHIFT
RESOURCES TO WORLD'S EMERGING MARKETS**

**U.S. Dept. of Commerce, International Trade Administration**

**Contact: Matt Englehart/Charlie Skuba (202) 482-3809**

March 28, 2007: In response to the changing global marketplace, the
Commerce Department today announced its Transformational Commercial
Diplomacy Initiative, which would align resources of the International
Trade Administration's (ITA) U.S. Commercial Service to developing
markets that are growing in importance for future U.S. business
opportunities. To read the entire press release, [click
here](http://trade.gov/press/press_releases/2007/cs_032807.asp).

[Back to list](#this-months-articles-include)

[]{#attract_foreign_investment .anchor}**COMMERCE TO LAUNCH NEW FEDERAL
INITIATIVE TO ATTRACT FOREIGN INVESTMENT**

**U.S. Dept. of Commerce, International Trade Administration**

**Contact: Charlie Skuba/Matt Englehart (202) 482-3809**

March 7, 2007: U.S. Commerce Under Secretary for International Trade
Frank Lavin today announced the creation of a new U.S. Government Invest
in America initiative, housed in the International Trade Administration,
which will promote the United States as a destination for foreign
investment. This initiative will be the primary U.S. Government
mechanism to manage inward investment promotion. To read the entire
press release, [click
here.](http://trade.gov/press/press_releases/2007/investamerica_030707.asp)

[Back to list](#this-months-articles-include)

[]{#Agriculture_User_Fees_US_from_Canada .anchor}

**AGRICULTURE INSPECTION, USER FEE REQUIREMENTS BEGIN JUNE 1**

**FOR COMMERCIAL TRUCKS, RAILROAD CARS ENTERING U.S. FROM CANADA**

A press release from the Customs and Border Protection Website states
that as of June 1, 2007 the U.S. Department of Agriculture's Animal and
Plant Health Inspection Service, in coordination with the U.S.
Department of Homeland Security's Customs and Border Protection, will
enforce inspection and user fee requirements for all commercial trucks
and loaded railroad cars entering the United States from Canada. To read
this press release, [click
here.](http://www.cbp.gov/xp/cgov/newsroom/news_releases/archives/2007_news_releases/052007/05302007.xml)

[Back to list](#this-months-articles-include)

[]{#Call_Centers_Northeast_Mexico .anchor}

**CALL CENTERS IN NORTHEAST MEXICO**

**By Yazmin Rojas, U.S. Dept. of Commerce, U.S. Commercial Service -
Monterrey**

Globally, the call center outsourcing industry has been expanding for at
least a decade. Today, in 2007, call centers continue to crop up across
the globe in countries as diverse as the Philippines and Argentina. The
growth rate of call centers in northeast Mexico outpaces global,
regional and national Mexican rates. This rapid expansion is expected
through the remainder of the decade.

Northeast Mexico has proven a desirable call center location due to a
number of factors: geographic location, populace knowledge of U.S.
culture, U.S. familiarity with Mexican accent, highly educated and
technologically proficient workforce, bilingual English/Spanish
population, modern telecommunications infrastructure, low wages and
availability of volume real estate.

The market for provision of materials and equipment for call centers is
already saturated. Most items call centers require are either purchased
domestically or imported from large international companies. The market
sales opportunity that exists for U.S. vendors to the call center sector
in northeast Mexico is for affordable software packages of
business-processing programs and their accompanying support services.

U.S. Companies interested in tapping this market must move quickly and
be willing to invest time and funding in seeking out potential buyers,
due to increasing investment in software development in Monterrey and
the lack of a comprehensive registry of small and medium sized call
centers. To read the entire 10-page report, go to
<http://www.buyusa.gov/arkansas/mexcallctr.pdf>

[Back to list](#this-months-articles-include)

[]{#brazil_international_trademark .anchor}**BRAZIL LOOKS TO JOIN
INTERNATIONAL TRADEMARK APPLICATION SYSTEM**

According to the April 5th, 2007 edition of the Brazilian daily
newspaper *Gazeta Mercantil* and our contacts at the Brazilian Institute
of Industrial Property ("INPI"), Brazil has decided that next January it
will adhere to the Madrid system for the international registration of
marks, which is administered by the World Intellectual Property
Organization ("WIPO"), currently includes 80 member nations. Under the
Madrid system ("Madrid"), a company applying for a trademark
registration in Brazil will be able to designate to have its mark
recognized by any of the signatory countries.

The new agreement should reduce trademarks registration costs for those
seeking to have their trademark registered in any of the member
countries. Another advantage is that under Madrid the wait time for
receiving the registration cannot exceed 18 months. Currently,
registering a trademark in Brazil takes an estimated three years. INPI
says that the wait times will be reduced. "We conducted examinations, we
improved the infrastructure and salaries of the examiners to make the
registration of trademarks and patents more agile," INPI's President
Jorge Avila told *Gazeta Mercantil*.

The major advantage of Madrid is that it will simplify the registration
process. When Brazil is a signatory of the treaty, an applicant would
only need to file one international trademark application with INPI, and
can designate any of the member countries where it would also like
registration. If the trademark office of a designated country does not
refuse protection within a specified period, the protection of the mark
is the same as if it had been registered directly with that foreign
office. There will be an important reduction in cost and procedures,
since companies may not need to contract lawyers in each country where
they plan to register their trademarks. For more information about
Intellectual Property-related subjects please contact:

Dorian Mazurkevich, Consul for Intellectual Property Patrick Levy, U.S.
Commercial Service Brazil

U.S. Consulate General São Paulo U.S. Consulate General Rio de Janeiro

Tel: 011 55 11 5186-7300 Fax: 011 55 11 5186-7399 Tel: 011 55 21
3823-2413 Fax: 011 55 21 3823-2424

E-mail: <dorian.mazurkevich@mail.doc.gov> E-mail:
<patrick.levy@mail.doc.gov>

[Back to list](#this-months-articles-include)

[]{#air_express_brazil .anchor}**AIR EXPRESS SHIPMENT TO BRAZIL - By
Marina Konno -- Sao Paulo - April 2007**

Air express shipments to Brazil can be divided into two categories:

a\) Goods valued up to US\$ 3,000 for documents, samples and
business-to-consumer deliveries;

b\) Goods valued above US\$ 3,000, and business-to-business shipments
for production or resale, regardless of value.

For gifts, samples and business-to-consumer deliveries valued up to
US\$3,000, the import duty (II) is always fixed at 60 percent. Added to
this duty is the Merchandise Circulation Tax (ICMS), which varies from
state to state. The ICMS for the State of Sao Paulo is 18 percent.
Documents are exempt from such taxes, but samples, catalogs and gifts
are subject to both II and ICMS.

Taxes in Brazil cascade, meaning that the ICMS will be based on the
value of the good plus the import duty.

When a U.S.-based entity pays the freight, the taxes are calculated
based on the value declared in the invoice. When the freight is paid in
Brazil, however, taxes are calculated based on the invoiced value plus
freight.

Customs clearance for this type of shipment is conducted at the air
express company's warehouse.

Air express companies can also handle goods valued above US\$3,000 if
their weight is less than 2,200 lbs. In this case, a customs broker
needs to be hired, and the shipment is cleared at the Brazilian
government's warehouse with payment of regular import-related taxes and
fees. The air express company can deliver the package to its final
destination only after the broker clears the shipment.

It is important that U.S. companies understand the advantages of using
express delivery services and the requirements imposed by the Brazilian
government for such deliveries in order to avoid delays and payment of
unnecessary fees and duties. Major U.S. companies, FedEx and UPS, are
active in Brazil.

Additionally, it is extremely important to ensure all paperwork is
filled out correctly. U.S. companies should contact their local UPS or
FedEx branches to ask any specific questions they may have, as many of
the shipments held up at customs are done so because of paperwork
errors.

[Back to list](#this-months-articles-include)

**SAUDI ARABIA NEW CERTIFICATE OF CONFORMITY**

[]{#saudi_arabia_certificate .anchor}Edited from a Nov. '06 Report by
Maher Siblini, U.S. Dept. of Commerce, Riyadh

As part of its accession to the World Trade Organization (WTO), Saudi
Arabia has enacted a number of laws and regulations to facilitate and
streamline trade and investments. In all, the Saudi Government (SAG) has
enacted 42 new trade-related laws, created nine new regulatory bodies,
and signed 38 bilateral trade agreements. The SAG has also committed to
reduce import tariffs and generally to implement all WTO rules, upon
membership, without

recourse to transition periods. To read the entire report, go to
<http://www.buyusa.gov/arkansas/saudiconformity.pdf>

[Back to list](#this-months-articles-include)

# E-COMMERCE WITH THE EUROPEAN UNION

[]{#ECommerce_EU .anchor}

An April 2007 report by Chris Sherwood and Constantin Schubart of the
Brussels office addresses the range of regulatory issues that should be
taken into account by US companies wanting to do business with EU
customers over the Internet. The document addresses various aspects of
EU law that affects e-commerce. To read this report, go to
<http://www.buyusa.gov/arkansas/ecomeujun07.pdf>

[Back to list](#this-months-articles-include)

[]{#EU_Additional_Duties_May_2007 .anchor}

**EU: ADDITIONAL CUSTOMS DUTIES ON CERTAIN U.S. GOODS -- MAY 2007**

As of May 1, 2005, the European Union has been applying a 15% ad valorem
additional customs duty on certain American imports as a response to the
US's Byrd Amendment legislation. Two years ago, the impact of the Byrd
Amendment on the EU marketplace was estimated at \$28 million. The
European Commission now estimates the impact has risen to more than \$81
million and is adding goods to the affected list as a means to
compensate for the increased impact. In the 2005 legislation, 18 items
incurred the additional duty. A year later, the Commission added eight
more products to the affected list to pay costs for a \$37 million
impact on the marketplace. Now, as of May 1, 2007, 32 more products are
being added to the list for a total of 58 products subject to the
additional 15% duty. Items vary and include clothing and footwear, paper
goods, corn, eyeglass frames, lorry truck-type vehicles, pneumatic hand
tools, plastic furniture, pens/markers, printers and prefabricated
buildings. For a link to the complete list of items and to read the
2-page report "European Union: Additional 15% Customs Duties on Certain
US Goods," go to <http://www.buyusa.gov/arkansas/eu15.pdf>.

[Back to list](#this-months-articles-include)

![](media/image2.jpeg){width="2.5104166666666665in"
height="1.6666666666666667in"}**ARKANSAS COMPANY HYTROL CONVEYOR**

**RECIPIENT OF PRESIDENT'S \"E\" AWARD**

# 

Congratulations to Hytrol Conveyor Company of Jonesboro, Arkansas for
winning the President's "E Award" for excellence in exporting. Hytrol
Conveyor received the award for its successful efforts to establish
sales and marketing, and distribution facilities in Mexico. The award
was presented by U.S. Secretary of Commerce Carlos Gutierrez during a
ceremony at the White House on May 24th. Representatives of Hytrol
Conveyor were later congratulated personally by President George Bush in
the Oval Office at the White House. The President\'s \"E\" Award was
created by Executive Order of the President on December 5, 1961, to
afford suitable recognition to persons, firms, or organizations which
contribute significantly in the effort to increase United States
exports. For more information on the "E Award, go to
<http://trade.gov/cs/eaward.asp>

[Back to list](#this-months-articles-include)

# 

# 

# 

# 

# BASICS OF EXPORT LICENSING - FROM EXPORT CONTROL BASICS, [http://www.bis.gov](http://www.bis.gov/)

[]{#Basics_Export_Licensing .anchor}

As an exporter, to determine whether your export requires a license, you
must consider:

-   What are you exporting?

-   Where are you exporting?

-   Who will receive your item?

-   What will your item be used for?

1\. Does your product have a specific Export Commerce Classification
(ECCN) number?

The Bureau of Industry and Security of U.S. Department of Commerce has
jurisdiction over most controlled exports.
[http://www.bis.doc.gov](http://www.bis.doc.gov/)

Start by reviewing the basics of licensing here:
<http://www.bis.doc.gov/Licensing/ExportingBasics.htm>

Do you need an ECCN?
<http://www.bis.doc.gov/licensing/Do_I_NeedAnECCN.html>

For an index of controlled products, review the Export Administration
Regulations (EAR), Commercial Control List (CCL):
<http://www.access.gpo.gov/bis/ear/pdf/indexccl.pdf>

If your item falls under U.S. Department of Commerce, Bureau of Industry
and Security (BIS) jurisdiction and is not listed on the CCL, it may be
designated as EAR99. EAR99 items generally consist of low-technology
consumer goods and do not require a license in many situations. However,
if your proposed export of an EAR99 item is to an embargoed country, to
an end-user of concern or in support of a prohibited end-use, you may be
required to obtain a license.

Only the Bureau of Industry and Security (BIS) office can issue an
official determination on whether a product needs a license and that
information is obtained formally under a classification request.
<http://www.bis.doc.gov/licensing/CCLRequestGuidance.html>

However, your alternative is to self-certify or check with the original
manufacturer.

If your product was built to any military specifications or has dual
military use, State Dept ITAR regulations may license your shipment;
<http://www.pmdtc.org/>

2\. Most exports from the United States do not require a license, and
are therefore exported under the designation "NLR." or No License
Required. Except in those relatively few transactions when a license
requirement applies because the destination is subject to embargo or
because of a proliferation end-use or end-user (see 3,4 and 5 below.)

No license is required when:

1\) The item to be shipped is not on the CCL (therefore designated as
EAR99); or

2\) License determinations are made by cross referencing the reasons for
controls by an ECCN to the country list. If the item is on the CCL but
there is no "X" in the box on the Country Chart under the appropriate
reason for control column on the row for the country of destination. In
each of these two situations, you would enter "NLR" on your export
documents.

License Exception

If a license is required for your transaction, a license exception may
be available. License Exceptions, and the conditions on their use, are
set forth in Part 740 of the EAR If your export is eligible for a
license exception, you would use the designation of that license
exception (e.g. LVS, GBS, TMP) on your export documents.

3\. The most restricted destinations are the embargoed countries and
those countries designated as supporting terrorist activities, including
Cuba, Iran, Libya, North Korea, Sudan, and Syria. There are restrictions
on some products, however, that are worldwide. Embargoed countries and
regional considerations can be found here:
<http://www.bis.doc.gov/policiesandregulations/regionalconsiderations.htm>

Office of Foreign Asset Controls also have controls on certain
countries/activities: <http://www.treas.gov/offices/enforcement/ofac/>

4\. If you determine your product is an EAR99 designation and/or no
license required you still need to check who will receive your item and
what it will be used for. You cannot ship to end-users who will
transship to an embargoed or controlled country. Be sure to check ALL
shipments, even potential NLR shipments against the Lists to Check of
End-Users:
<http://www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm>

-   Denied Persons List

-   Unverified List

-   Entity List

-   Specially Designated Nationals List

-   Debarred List

-   Nonproliferation Sanctions

5\. You cannot ship to end-users or to any company or individual who are
involved in activities, such as the proliferation of weapons of mass
destruction (e.g., nuclear, biological, chemical) and the missiles to
deliver them, without specific authorization, no matter what your item
is. For more information on prohibited end-uses:
<http://www.access.gpo.gov/bis/ear/pdf/744.pdf>

Know you Customer guidance can be found here:

<http://www.bis.doc.gov/ComplianceAndEnforcement/KnowYourCustomerGuidance.htm>

Red Flag Indicators:
<http://www.bis.doc.gov/complianceandenforcement/RedFlagIndicators.htm>

Watch for Antiboycott clauses in any export sale:
<http://www.bis.doc.gov/ComplianceAndEnforcement/AnitboycottCompliance.htm>

If you need to talk to someone to clarify the above, you can contact the
BIS outreach staff at 202-482-4811.

[Back to list](#this-months-articles-include)

[]{#Getting_Paid_Latin_American .anchor}

**GETTING PAID BY YOUR LATIN-AMERICAN BUYER**

**Payment Terms and Financing Options to Maximize Sales While Protecting
Against Nonpayment**

**Edited from a publication by John Charles Mueller III, Commercial
Director, Commercial Service - Brazil.**

Despite the sheer size of the Latin-American market, many US exporters
are unsuccessful in selling to this market, or increasing their exports
to Latin American buyers. Frequently, US exporters lose sales due to the
payment terms they demand of their Latin American buyers. While it is
prudent for US exporters to insist on secure payment terms, it pays for
them to consider the broad variety of payment terms available to them in
order to become as competitive as possible. The purpose of this guide is
to identify the main financing and payment mechanisms available to
support US exporters selling to Latin America in general and to
understand the costs, advantages, and disadvantages of each mechanism.
The following mechanisms are examined in the report:

1\. Cash In Advance;

2\. Confirmed Letter of Credit;

3\. Open Account Terms;

4\. Open Account Terms with Export Credit Insurance;

5\. Documents Against Payment (D/P) & Documents Against Acceptance
(D/A);

6\. Export Finance by a US Commercial Bank (US\$ denominated);

7\. Import Finance by a Latin American Bank (Foreign Currency
denominated);

8\. Lines of Credit Available from Latin American-based Development
Banks;

9\. Sales to foreign public sector buyers with foreign Central

For a complete report, go to:
<http://www.buyusa.gov/tradeamericas/getting_paid.html>

[Back to list](#this-months-articles-include)

**UCP 600 TAKES EFFECT JULY 1, 2007 WHAT IS A DISCREPANCY?^©^**

**Edited From the May 2007 Edition of IOMA's Publication, "Managing
Imports and Exports" Reprinted with Permission.**

**By Donald R. Smith Mr. Smith can be contacted at don.smith@
normantech.com.**

All too often, beneficiaries of letters of credit present their
documents to the bank and receive that dreaded telephone call: "We have
examined your documents and they have discrepancies." Ever wonder what
constitutes a "discrepancy"--- and why there are so many of them?

######### 

######### Three Most Common Discrepancies

1\) letter of credit expired;

2\) late shipment; and

3\) credit amount overdrawn.

For information on ways to overcome these discrepancies, read Mr.
Smith's article at <http://www.buyusa.gov/arkansas/ucpdisjun07.pdf>

[Back to list](#this-months-articles-include)

**IOMA'S "MANAGING IMPORTS & EXPORTS" -- APRIL 2007**

**Breaking Down Components of Repair Kits for Harmonized Code Number**

[]{#breaking_down_components .anchor} **"Ask the Experts"^©^ - April
2007, Reprinted with Permission**

IOMA's "Ask the Experts" team-Alan Gaudio, Robert Imbriani, and Joseph
Zodl, consultants for Unz & Co.-answer readers\' import- or
export-related questions. This month\'s column is by Alan Gaudio.

Readers may submit questions to cdhorner@ioma.com.

IMPORT-EXPORT MANAGER: Our company exports repair kits consisting of
multiple items used to repair or service the various products that we
sell and manufacture. I\'ve been advised by my freight forwarder that a
repair or service kit cannot be classified within the Schedule B and
that I may need to break down the components within these kits. Is this
correct?

GAUDIO: Essentially, yes. The Harmonized System (HS), on which the
Schedule Band HTSUS are based, provides for only one \"kit\"-a first aid
kit. There are a number of \"sets\" provided for in the HS, but none
would encompass the combination of articles you are suggesting is
in­corporated into your repair/service kits.

Your company puts together various parts and components necessary to
service or repair the products that you sell. For inventory, billing,
and customer service purposes, this is real business efficiency.
However, there are two rules for clas­sification within the HS that a
company must consider. First is the use of the word \"kit.\" You don\'t
have a first aid kit, so let\'s turn to the defi­nition of a \"set.\"

A \"set\" is clearly defined within the HS. There must be at least two
articles or more classified within different headings of the HS, the
articles must be complimentary, they must meet a partic­ular need or a
specific activity, and they must be packaged (at time of import or
export) ready for retail sale with no further packaging required.

You probably don\'t have a \"set\" either, as de­fined by the HS. You may
have several articles or more classifiable in different headings within
the HS. However, they probably serve to fix or service one or more
components or functions of the finished good that you sold. In other
words, in your mind, they fix what is broken on your fin­ished good.
Within the HS, however, this is nei­ther \"complimentary\" nor does it
meet a defined need or specific activity (fixing what is broken does not
meet this criterion). Yes, they are pre­packed but only because your
materials control department finds this to be expedient.

What you might really have is: four bolts, four washers, two vulcanized
rubber drive belts, and one steel pulley. All of these items are quite
specifically classified within the HS-individu­ally. Your company put
them in a single carton to make billing, inventory control, and shipping
more efficient. The HS requires classification that is most specific to
prevail over classification that is more general. The above example
would re­quire four line items of classification. Classifying the above
example as a \"kit\" is so general as to be nonexistent within the
Harmonized System.

[Back to list](#this-months-articles-include)

**IOMA'S "MANAGING IMPORTS & EXPORTS" -- MAY 2007**

**Payment Methods Favored for Different Regions of the World**

[]{#payment_methods_regions_world .anchor} **"Ask the Experts"^©\ -^ May
2007, Reprinted with Permission**

IOMA's "Ask the Experts" team-Alan Gaudio, Robert Imbriani, and Joseph
Zodl, consultants for Unz & Co.-answer readers\' import- or
export-related questions. This month\'s column is by Robert Imbriani,
Vice President International Operations for Associated Global Systems.
Readers may submit questions to cdhorner@ioma.com.

*George Barnes, Director, Global MBA Online Program, School of
Management/UTD Asks:*

\"Can you summarize which payment methods are most often favored for
different regions of the world?\"

*Mr. Imbriani Answers:*

The answer depends on who is asking this very common question. All
options should be considered, and decisions made are based on the
details of the specific transaction as worked out during the earliest
stages of negotiation between seller and buyer. From a seller\'s
standpoint, cash in advance is the most secure method of payment but can
drive potential buyers to other suppliers who offer some form of credit.
When cash in advance is required, credit risk and cost of money shifts
completely to the buyer. From a buyer\'s standpoint, the most attractive
payment method is open-account, or net, terms. This allows the buyer to
pay for goods some time after receipt-closer to the time of use or
resale, thus reducing the buyer\'s cost of money. This keeps credit risk
with the seller.

Payment terms in descending order, beginning with the most attractive to
the seller and least attractive to the buyer in terms of risk, are as
follows:

-   Cash in advance

-   Cash on delivery of the goods (COD)

-   Documentary collection/drafts

-   Formal letter of credit

-   Standby letter of credit

-   Open-account/Net terms

Each term has its advantages and disadvantages.

Country considerations are also a factor. The term least attractive to
both parties-and therefore rarely used-is COD, due to the difficulties
of collecting payment upon the physical delivery of goods in an
international transaction. The term often considered to most equitably
balance advantages and disadvantages between seller and buyer is a
formal letter of credit. Negotiating all the terms and conditions of the
letter of credit at the time of sale helps ensure that it is acceptable
to both parties. Currently letters of credit are governed by UCP500
(Uniform Customs and Practices for Documentary Credits)-to be replaced
as of July 1, 2007 by UCP600.

[Back to list](#this-months-articles-include)

[]{#Useful_Websites .anchor}

**USESFUL WEBSITES**

# Report a Trade Barrier

The U.S. Department of Commerce's Trade Compliance Center (TCC) helps
American exporters and investors overcome foreign trade barriers and
works to ensure that foreign countries comply with their trade agreement
obligations to the United States. If you need help in addressing a
foreign trade barrier problem or would like to ask a specific question,
go to <http://tcc.export.gov/Report_a_Barrier/index.asp>

**International Logistics**

When shipping a product overseas, the exporter must be aware of packing,
labeling, documentation, and insurance requirements. It is important
that exporters ensure that the merchandise is:

-   Packed correctly so that it arrives in good condition;

-   Labeled correctly to ensure that the goods are handled properly and
    arrive on time at the right place;

-   Documented correctly to meet U.S. and foreign government
    requirements, as well as proper collection standards; and

-   Insured against damage, loss, pilferage and delay.

To access this valuable information, go to:
<http://www.export.gov/logistics/index.asp>

**EU Food and Agricultural Import Regulations**

The following Website gives a review of the EU Food and Agricultural
Import Regulations and Standards (FAIRS). These reports describe each
member state implementation of the EU harmonized legislation regarding
imports of food products. This site also includes tips for U.S
exporters, industry market information as well as key industry contacts.
<http://useu.usmission.gov/agri/fairs.html>

VAT (Value Added Tax) Rates Around the World -
<http://www.uscib.org/index.asp?documentID=1676>

International Tax Agreements Website -
<http://www.treas.gov/offices/tax-policy/treaties.shtml>

# International Calling Codes - [**http://www.countrycallingcodes.com/index.php**](http://www.countrycallingcodes.com/index.php)

Shipping Logistics Exports for Costa Rica, Caribbean and Latin America

["Free Logistics Today"]{.underline} magazine. The articles are also
available online. For more info:
[www.logisticstoday.com](http://www.logisticstoday.com/)

# 

# Terrorism Hot Spots

Terrorism affects us all, and in today\'s world you have to be aware of
where the terrorist hot spots are. You may be surprised at how many hot
spots there are if you visit the Global Incident Map,
[http://www.globalincidentmap.com](http://www.globalincidentmap.com/),
which is a world map showing the location of the most recent terrorism
and other suspicious events. This easy-to-use tool can show you a closer
look of any area, along with informational links to news about terrorist
activities. There are links to breaking news stories and alerts, as well
as tools to help you search for events by country, type of incident,
date, and city. Source:  The Federation of International Trade
Associations Newsletter

[Back to list](#this-months-articles-include)