The Danger In Selling Overseas

19 Apr

If your business has an online store you may be thinking how about International sales? Whether working with importers or individual customers, not only are there tax implications, but so are there customs and tariffs issues to be dealt with.

Before you can calculate tariffs you have to learn the Harmonized Commodity Description and Coding System. This means you need to identify each product you intend to sell overseas and find the corresponding code. Then you need to determine the product’s country of origin. Most governments use this system to determine the actual tariff rate. For you, this means paperwork because you will need to obtain Certificates of Origin and complete the customs forms when shipping.

Once you have calculated tariffs and import taxes, the next important step is to figure out how to get paid. Will the tariffs and customs charges be included in the price or will buyers owe these sums at the time of delivery? More importantly you need to verify that payment is in fact complete before you ship.

International sales are challenging in the least, especially for the smaller online store. You may want to research such topics as how to sell overseas and small business exporting before jumping in.

Stephen J. Gross is an attorney with 30 years experience in business law, real estate law, wills and trusts, asset protection, and company formation. To learn more about this office please visit sjgassociates.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: