Lina Teskil

To say briefly, trade provides direct and indirect benefits, on the micro-level and macro-level. For example, when a company can export its products to foreign countries, it has a bigger potential market. Consequently, it can produce more, sell more, earn more money and deliver more profits to its owners (direct benefits). At the same time, the ability to sell more results in a need to employ more staff across all job roles (production, finance, sales, HR, …). This provides jobs and reduces unemployment, thus offering indirect benefits to society. Similarly, the company will be paying more taxes (as its profits increase), and the local government will have to pay fewer unemployment benefits (because fewer people will be unemployed). These are indirect benefits for society. When many companies benefit from exports, and the indirect benefits of export accumulate, we talk about “economic development”, or “economic growth”. Import has its benefits too. First, it gives citizens access to products that they would otherwise not have. Second, it allows companies to produce products even if they do not have all the necessary components or raw materials (by importing them). When goods are imported, often taxes and import duties are collected, and hence imports contribute to the income of Government. These tax incomes are subsequently used by the Government to invest in social programs, in infrastructure and more. These are indirect benefits for society.

From large manufacturers to individuals, any size importer or exporter can take advantage of a foreign-trade zone (FTZ). Utilizing an FTZ can significantly reduce costs from customs duties, taxes and tariffs; improve global market competitiveness, and minimize bureaucratic regulations. Outside the United States, there are many other names for FTZs, including free, foreign, or export processing zones. Below are some benefits of using an FTZ: Deferral, reduction, or elimination of certain duties; Relief from inverted tariffs; Duty exemption on re-exports; To take advantage of an FTZ, companies need to be able to track their inventory; trace manufacturing and production orders; determine whether material came from domestic or international sources, and classify goods for duty deferrals and reductions. How much a company saves by using an FTZ depends on the size of the company and its business model. Reducing merchandise processing fees alone can save a company a substantial amount of money.

Online Resource centre of U.S. Department of the Treasury explained that a license is an authorization from OFAC to engage in a transaction that otherwise would be prohibited. There are two types of licenses: general licenses and specific licenses. A general license authorizes a particular type of transaction for a class of persons without the need to apply for a license. A specific license is a written document issued by OFAC to a particular person or entity, authorizing a particular transaction in response to a written license application. Persons engaging in transactions pursuant to general or specific licenses must make sure that all conditions of the licenses are strictly observed. OFAC's regulations may contain statements of OFAC's specific licensing policy with respect to particular types of transactions.

This is the main thing you have to prepare while thinking about exporting abroad. A commercial invoice is one of the most important documents in international trade and ocean freight shipping. Usually, this legal document is issued by the seller (exporter) to the buyer (importer) in an international transaction and serves as a contract and a proof of sale between the buyer and seller. These documents are extremely important, especially when you are in charge of an SME, looking for B2B or B2C partnerships. Shipping to foreign destinations is always tricky, but as long as you provide proper documents, you’ll protect your items during the whole business transaction.