However, they are usually handled differently in the invoicing process. Legal fees are estimated in advance by the exporter and are included in the purchase price. They may include legal counsel to review contracts, to ensure compliance with export licensing requirements, and to protect the exporter against violation of intellectual property rights. Legal fees are paid by the seller and the buyer does not know the estimated amount for these fees. They are usually for processing of shipping and financial documents.
Banks act as financial intermediaries between the buyer and seller in export transactions.
The buyer knows the amount of the banking fees prior to placing the order. While circumstances vary by product, price and level of expertise, it would be unusual for a U. S. company to earn a profit after one year of exporting. Although the possibility improves in the second year, most U. S. companies do not make a profit until they have been exporting for at least three years. There is an unavoidable learning curve involved in exporting. If a company does earn profits in the first or second year, we recommend that they reinvest the money to increase future export sales, profits and local market share.