Compliance with international law critical for businesses

Compliance with international law critical for businesses

| Oct 8, 2020 | Uncategorized |

U.S. businesses that deal in the export of products to other countries should have a firm grasp of the trade laws governing the countries they deal with. International law related to trade can be complex since each country has its own restrictions and prohibitions. Understanding and complying with these laws is the safest way for a Florida business to avoid disputesthat can cost a company time, money and client confidence.

Trade compliance is essential for maintaining stability in the international market. A company that fails to comply with the import and export laws of a foreign country risks serious penalties, including the potential for fines and prison and a ban from trading with that country. Some examples of specific laws a country may have include the following:

  • Banning imported goods that their own countries already produce
  • Refusing goods from the United States that are not properly licensed, such as software
  • Prohibiting products that are or contain materials that are banned in that country
  • Charging tariffs or duties on certain imported goods

The United States has its own laws, such as restrictions on exporting weapons to countries that are a threat to national security and bans on trade with countries under sanction. However, these laws change rapidly as political and financial circumstances develop. Learning as much as possible about the international law affecting one’s foreign trade and remaining up to date on current trade regulations are essential for avoiding noncompliance issues. Fortunately, there are numerous resources available to assist Florida businesses interested in trading with other countries.