All countries regulate international trade transactions covering activities such as imports, exports, and financial transactions. For example, all inbound merchandise entering the commerce of a country must clear customs prior to being released and delivered to the recipient. It’s at customs where the merchandise is examined, and compliance with regulations is determined in addition to the payment of duties and taxes where applicable.

It’s important to keep the following points in mind:

• Make sure that a thorough check of all regulatory requirements has been done before attempting to import and export merchandise. Regulatory requirements apply to both the merchandise and the documentation.
  
• Documentation must be complete and accurate, including description, prices, and the parties to the transaction.
  
• Internal controls must be established to ensure compliance with all regulatory requirements, including any record-keeping obligations.
  

Some governments may administer a variety of trade restrictions, such as embargoes and sanctions, against a number of countries, including nationals of those countries. Transactions with certain designated individuals and organizations, such as terrorist organizations, narcotics traffickers and weapons proliferators, are also prohibited even though those individuals or organizations may not be associated with any particular country’s embargo. Severe civil and/or criminal penalties may be levied against companies or individuals that violate export controls. Always consult the Legal Department prior to entering into international trade negotiations or transactions.

I believe one of our imported items was incorrectly classified on the paperwork. What should I do
Contact your manager and the Legal Department immediately. There are fines and additional tariffs in many countries for misclassifying import information on products.

I was told one of my new suppliers appeared on some sort of government list and I shouldn’t do business with them. What should I do?
Contact your Legal Department for guidance on how to proceed or correct the issue. Many governments keep a list of countries and people with which businesses may not enter into transactions.

We’re discussing a joint venture with a local partner who will help us open new markets in a country. The partner is proposing special invoicing and shipping arrangements that he says will save taxes for both of us. I’m not familiar with this technique. How should we approach this?
Do not enter into a contract where you don’t understand all terms and conditions. Make sure your Legal Department reviews and approves all terms and conditions of the arrangement before you proceed.