International trade is vital for growing your business. It can help you expand to new markets and sell your products or services to more and more clients. But there are plenty of legal implications that you’ll need to consider and manage. Below, we explore some factors businesses should consider for international trade.
The Free Agreement
Free trade has helped international trade for decades. This is a pact where two or more nations agree to reduce barriers to imports and exports, facilitating easier trade. As a result, there’s less government interference and fewer rules and regulations to inhibit trade. However, if you’re trading in a market with protectionist ideals, it could be worth seeking help from a global legal firm.
Factors Businesses Should Consider for International Trade
Export Trade Restrictions
For a start, you should consider any export trade restrictions. This might be that you need a UK export license due to the products you’re trading or the country you’re working with. Alternatively, there may be import restrictions overseas that you need to navigate.
The Overseas Legal Environment
You should also consider the overseas legal environment. There might be legal requirements you have to fulfill before visiting a country to conduct trade. Or you might need to investigate how creditable a client is. Either way, it’s important to assess the overseas legal environment first.
Export Market Product Law
If you’re exporting products overseas, you must carry out the necessary research into the export market’s product law. For a start, while your product might meet domestic regulations, there’s a chance that it won’t be accepted overseas. You should always investigate these regulations before attempting to sell your product in a new export market.
UK and Local Taxes
When you’re exporting overseas, it’s important to remember UK VAT rules when you pay taxes on your profit. Similarly, you should also consider the local tax rules in your export market. Taxes vary from country to country and you’ll find when you’re expanding overseas, that some territories have higher import taxes than others.
When you’re expanding overseas, you need to be wary of local companies copying your products or services. When you’re introducing your company to a new region, you should consider the intellectual property laws in that area. In some cases, you’ll be protected, but it’s possible that you could be left liable for intellectual theft if you’re not careful.
Selling your products and services abroad can be an exciting time – especially as your business begins to grow. And by following the guide above, you should be prepared to complete the due diligence required before commencing sales.