Evidence 7: Compliance with foreign law.

NEGOCIOS INTERNACIONALES

FICHA

2282649

MARIA JULIANA GONZÁLEZ RAMÍREZ

MARÍA FERNANDA ORTIZ FIGUEREDO

SENA

2022
 Introducción

Por medio de esta evidencia vamos a enriquecer el idioma ingles, de manera

verbal y escrita, con la explicación del vocabulario y un breve resumen.

 Compliance with foreign law

Before exporting to a foreign country or even agreeing to sell to a customer in a

foreign country, a company should be aware of any foreign laws that might affect the sale.

However, if the customer or the distributor is mistaken in the information he gives to

the exporter, the exporter can pay for relying solely on the customer's advice. Unfortunately,

customers often overlook those things that may be of the greatest concern to the exporter.

There are some specific examples:

Industry standards

Foreign manufacturers and trade associations often promulgate industry standards that

are enacted into law or that require compliance to sell successfully there. It may be necessary

to identify such standards even prior to manufacture of the product that the company intends

to sell for export or to modify the product prior to shipment.

One type of foreign safety standard that is becoming important is the ‘‘CE’’ mark

required for the importation of certain products into the European Community. The European

Community has issued directives relating to safety standards Products not conforming to

these directives are subject to seizure and the assessment of fines.

Foreign customs laws

The countries of export destination may have absolute quotas on the quantity of

products that can be imported. Similarly, it is important to identify the amount of customs

duties that will be assessed on the product, which will involve determining the correct tariff

classification for the product under foreign law in order to determine whether the tariff rate

will be so high that it is unlikely that sales of the product will be successful in that

country, and to evaluate whether a distributor will be able to make a reasonable profit

if it resells at the current market price in that country.

Some countries, do not fully adhere to the GATT Valuation Code and may assess
duties on fair market value rather than invoice price and many other countries have severe

penalties for import violations

Government contracting

Sales to foreign governments, agencies, or partially state-owned private companies

often require specialized procedures and documentation. Commissions may be prohibited or

disclosure of paid may be required. Barter or countertrade may be required

Buy American equivalent

Laws Foreign government agencies often enact regulations to grant preferential

treatment to products supplied by manufacturers in their own country. Determining whether

such laws or agency regulations exist for your company’s products is mandatory if

government sales are expected to be important.

 Exchange controls and import licenses

Unlike the United States, many countries in the world have exchange control systems

designed to limit the amount of their currency that can be used to purchase foreign goods.

These countries require that an import license from a government central bank be obtained for

country customers to pay for imported goods. For a U.S. exporter it is extremely important to

determine if there is a system of exchange control if an import license is required in the

country what are the time limits required for obtain these licenses.

Value-added taxes

Many countries impose value tax at the production and distribution stages. These

taxes generally apply to imported goods, so the importer, in addition to paying customs

duties, pays a value added tax based, generally, on the customs value plus rights. When the

importer marks and resells the goods, he collects tax from the buyer, which he must remit to

the administration after deducting the taxes due on importation. the amount of value added

tax may be important, as it is generally higher than traditional sales taxes.

Specialized laws

Foreign countries often enact specialized laws prohibiting certain products except in

accordance with those laws. In the United States numerous special laws regulate the sale

importation in the home market of a wide variety of products.

In any case, such as the United States, countries often have special laws affecting

certain products or products, and the existence of such regulations must be prior to

manufacture, before entering into an agreement and even before quoting prices or delivery

times to a customer. Some U.S. laws regulate all products made in the United States; others

do not apply to products manufactured for export.

 Vocabulary

1. Quoted Price: In the financial markets, a quoted price is the last price at which a
trade took place. This is the lowest price at which the holder of a security is
willing to sell it.
2. Bidding: the act of offering to pay a particular amount of money for something,
by different people
3. Barter: to exchange goods for other things rather than for money
4. Countertrade: a situation in which two countries trade goods and services for other
goods and services, not for money
5. Bid bond: an amount of money that a company that makes the lowest bid to do
a particular piece of work promises to pay if it then does not do the work
6. Antidumping: the practice of putting high taxes on imports (= goods from other
countries) in order to try to stop companies from other countries selling their
products very cheaply in your country, which damages your country's
businesses
7. Duty: a tax paid on goods that are bought or imported
8. Ad valorem duties: n ad valorem payment, rate, or tax is calculated according to
the price of a product or service, rather than at a fixed rate
9. GATT: General Agreement on Tariffs and Trade: an international agreement to
end rules that limit trade, in force from 1948 until 1994
10. Invoice: a list of things provided or work done together with their cost, for payment
at a later time
 Sentences

● Imperative

Countries often have special laws affecting certain products or products, and the

existence of such regulations must be prior to manufacture

When the importer marks and resells the goods, he collects tax from the buyer, which

he must remit to the administration after deducting the taxes due on importation.

● Declarative

Foreign countries often enact specialized laws prohibiting certain products except in

accordance with those laws.

Unlike the United States, many countries in the world have exchange control systems

designed to limit the amount of their currency that can be used to purchase foreign goods.
Conditional
if the customer or the distributor is mistaken in the information he gives to the
exporter (…) to make a reasonable profit if it resells at the current market price in that
country.

Graphic
 Conclusion

Realizamos esta evidencia poniendo a prueba nuestro nivel en ingles y las

habilidades que hemos desarrollado con la practica en las evidencias previas.