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Evidence 7: Compliance
with foreign law

APPRENTICE

Diana Carolina Castro Alvarado

FICHA

2282518

TECHNOLOGY

International Negotiation

INSTRUCTOR

María Fernanda Escobar Rincón

2022
Vocabulary 2

1. Legislation: A set of laws by which a State or a specific activity is regulated.

2. Enactment: The enactment is a formal and solemn act, performed by the head of
state, through which the existence of a law is attested, while ordering to comply with it
and enforce it, giving it executive force and imperative character.

3. Rules: Principle that is imposed or adopted to direct the conduct or the correct
performance of an action or the correct development of an activity.

4. Information: News or data that informs about something.

5. Laws: It is the highest legal norm, after the political constitution, emanated by
the legislator and issued to control the established social conduct with permanent
character.

6. Impose: To require someone to comply with, bear, pay or accept a thing.

7. Sanction: A sanction is a decision taken by a private authority, as a consequence

of non-compliance with a rule or norm of obligatory conduct, to the detriment of the
human or juridical person to whom the responsibility for the non-compliance is
attributed.

8. Taxes: Taxes are a contribution (payment) in money or in kind, of a mandatory

nature, with which we cooperate to strengthen the country's economy.

9. Manufacturing: The making or elaboration of a product from the combination of

its components, especially in series and by mechanical means.

10. Regulation: Rules issued by the State that protect social, economic, political and
technical aspects of public interest.
Summary 3

Compliance with foreign laws

Before starting a purchase or sale negotiation it is necessary to know the foreign laws.
These can benefit or harm the business. Information on foreign laws can be obtained
from the customer or distributor to whom you intend to sell. Any mistake regarding the
information can be very expensive, it is necessary to verify with lawyers, banks,
agencies.

Industry standards

It is necessary to enact these standards in order to successfully enter a country, it is

necessary to identify these standards before manufacturing the product you intend to
sell in order to be able to modify the product before shipment. One type of foreign
safety standard that is gaining importance for certain European Community products,
such as containers, games, and telecommunications equipment is "CE" devices that do
not meet these standards are subject to seizure and fines.

Foreign customs laws

Countries receiving products may determine the quantity of products, products more
than which will be prohibited. The amount of customs duties must be determined, this
will involve tariff classification, harming the sale of the product in the country, anti-
dumping, countervailing duties etc. must be verified.

Government Contracting

Sales to foreign governments, government agencies usually involve specialized

processes and documents. Government purchases may have customs duties, quotas or
import license extensions. Barter may be necessary

Equivalent to "Buy American."

Government agencies are willing to give preferential treatment to products supplied by

their own country's manufacturers, may be deferred as an absolute preference or may be
determined price preferential. Considering that sales to the government are significant

Exchange controls and export licenses

Many countries and nations of the world have exchange control systems, which is to
limit the amount of their currency to buy foreign goods. Import licenses must be
obtained from central banks for customers to purchase foreign products.
 Value Added Tax 4

These taxes are levied on imported goods, so customs duties plus value added must be
paid. When the importer marks and resells the goods, he will collect the tax from the
buyer, which he must remit to the tax administration after having made a credit note for
the taxes due on the import.

Specialized Laws

Certain U.S. regulations regulate all manufactured goods prior to establishing a sales
agreement, quotation or delivery terms to a customer.

Phrases
Declaratory Phrase

Every U.S. company should be aware of the laws that may affect its exports.

Imperative Phrase

You need to be clear about the requirements. It is necessary to be able to identify the
minimum standards required in the manufacture of the product prior to shipment.

Conditional Phrase

If these standards are violated, fines may be imposed.

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