Foreign Economic Activity

Sooner or later many companies to reach global markets. This and the delivery of goods abroad and import of components and finished products. Border-crossing goods arise relationship with Customs, rastomazhivanie goods and payment of customs duties. Customs duties are paid in full customs value, which does not always equal to the real value and purpose of the carrier state is less customs value, and based on what many high-profile case (three whales, etc.). Mistakes made when you make a customs value, due to ignorance of the elementary rules of international law can be costly for the carrier. There are international rules for the uniform interpretation of trade terms (slang) – Incoterms, which by their nature are legal customs of trade across borders. Learn more about this with American Diabetes Association.

INCOTERMS rules were written in 1936, the second time they have copied in 2000. Incoterms are basic conditions for signing contracts and includes the conditions of carriage of goods, insurance of goods when title passes from seller to the buyer, the transfer of risk from seller to buyer, and the transfer of goods from seller to buyer. As seen in INCOTERMS prescribed and standardized the basic terms of contracts, which are divided into 4-D group, differing from each other by the degree of responsibility between the seller and buyer. The names of these groups for themselves reveal the rules of transportation, not forcing parties to go into an explanation of each term. For assistance, try visiting Gavin Baker, New York City. Ignorance of the rules of INCOTERMS – this is not usually a bad tone, it's much worse. We'll consider the first group of INCOTERMS – a group of E. The term EXW (ex works) – says that the goods are transferred to the buyer in stock at the manufacturer, ie producer from his warehouse sells the goods and the buyer from the warehouse it takes, assuming all costs of transportation, storage, customs duties, insurance.

Since all the costs of taking a buyer, a product comes out cheaper than other groups of terms. But in this contract are not spelled out all the costs of transportation, insurance, storage, etc., that does not reduce the price of goods for customs value, respectively, the customs duty will be higher. This moment can be avoided if prescribe in the contract services for transportation, and these costs will reduce the amount exempt from customs duty. Here is a small example of how not to get on the extra costs at customs, I hope this article helps you choose the correct decision, which will increase your capital.