Anne Murphy - Working with agents and distributors for international trade
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Working with International agents and distributors, a presentation by Anne Murphy at the Women's Business and Enterprise Conference. www.wbeconference.co.uk
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Anne Murphy - Working with agents and distributors for international trade
- 1. Working with agents/distributors Professional support for commercialisation and internationalisation
- 2. Where to find agents/distributors • Trade Associations • Chambers of Commerce • Embassies/Consulates • Internet • Trade Fairs • Trade Journals • UKTI/SDI • Other companies with similar product range Professional support for commercialisation and internationalisation
- 3. Selecting an agent/distributor • Check credentials • Product experience • Market coverage • Visit premises, meet key staff • Business connections • Business plan • Sales team - well managed, trained, incentivised? • Legislation and market trends Professional support for commercialisation and internationalisation
- 4. Agreements: Agents & Distributors • Written agreement • Products and Territory • Exclusive/non-exclusive • Disputes • Termination • Confidentiality, IP • Targets Professional support for commercialisation and internationalisation
- 5. Incoterms® rules Professional support for commercialisation and internationalisation
- 6. Incoterms® rules • Globally recognised 3 letter trade term • Describes tasks, costs and risks • Incoterms® 2010 effective January 2011 • Registered trademark Professional support for commercialisation and internationalisation
- 7. Level of risk • EXW - Least risk to exporter • DDP - Greatest risk to exporter Professional support for commercialisation and internationalisation
- 8. Rules for any mode of transport • EXW – Ex works • FCA – Free Carrier • CPT – Carriage Paid To • CIP – Carriage and Insurance Paid to • DAT – Delivered at Terminal • DAP – Delivered at Place • DDP – Delivered Duty Paid Professional support for commercialisation and internationalisation
- 9. Rules for sea freight only • FAS – Free Alongside Ship • FOB – Free on Board • CFR – Cost and Freight • CIF – Cost Insurance and Freight Professional support for commercialisation and internationalisation
- 10. Important Note • Usually risk passes and costs transfer at the same point • When using CPT, CIP, CFR, CIF • Risk passes when goods handed to carrier • Costs transfer at named place Professional support for commercialisation and internationalisation
- 11. How to use Incoterms® 2010 rules • Include in international sales contract • Reflects intentions of seller and buyer re risks and payment of freight • Appropriate rule for transport method • Clearly specify place of delivery • FCA Trinity Terminal, Felixstowe Port, UK as per Incoterms® 2010 • Don’t alter Incoterms® rules • Local laws can override Incoterms® rules Professional support for commercialisation and internationalisation
- 12. Additional Documentation Professional support for commercialisation and internationalisation
- 13. Commercial Documents - Proforma Invoice • Issued in advance of goods being shipped • Quotation • Letter of Credit • Currency controls Professional support for commercialisation and internationalisation
- 14. Certificates of Origin • Declaration of origin on export invoice is not sufficient for customs authorities • Legal requirement of importing country • Letter of Credit requirement Professional support for commercialisation and internationalisation
- 15. Certificates of Origin Arab British Chamber of Commerce • Specific to Arab League trade • Certified by Arab British Chamber • Legalised by relevant Embassy Professional support for commercialisation and internationalisation
- 16. Certificates of Origin EU Certificate of Origin • Can by used for all countries except Arab League • Issued and certified by Chamber of Commerce Professional support for commercialisation and internationalisation
- 17. Customs Documents - EUR1 • Preferential trade agreement exists • Goods imported at reduced/nil rate of import duty • 100% manufactured in EU • Majority of their content made in the EU • Retain data evidencing origin for three years • Document is completed by exporter and stamped by HMRC and Chamber of Commerce Professional support for commercialisation and internationalisation
- 18. Customs Documents - ATR • Only for goods being exported to Turkey • Goods must be in 'free circulation' in EU • Can be used for all eligible goods except: • agricultural goods • minerals and steel • These goods require EUR1 Certificate Professional support for commercialisation and internationalisation
- 19. Customs Documents – ATA carnet • For goods temporarily exported outside the EU • Issued by Chambers of Commerce • Guarantee required by Chamber in event goods are not re-exported • Not valid in every country Professional support for commercialisation and internationalisation
- 20. Transport Documents Bill of Lading • Relates to sea freight • Document of title to the goods Professional support for commercialisation and internationalisation
- 21. Transport Documents Air Waybill (AWB) • Consignment note for airfreight • Not a document of title • One AWB covers complete shipment • Consolidated shipment MAWB issued to freight forwarder • HAWB issued by forwarder to each exporter Professional support for commercialisation and internationalisation
- 22. Export Licences • Military and paramilitary goods • Dual-use and technology • Artworks • Plants and animals • Medicines and chemicals Professional support for commercialisation and internationalisation