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Michael E. Ginsberg, Esq. Pattison, Sampson, Ginsberg & Griffin, P.C.

Providing legal services for international trade, export control, contract terms, payment methods, insurance, and trade barriers. Ensuring compliance with regulations, including Incoterms, payment terms, insurance, and export control requirements.

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Michael E. Ginsberg, Esq. Pattison, Sampson, Ginsberg & Griffin, P.C.

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  1. Michael E. Ginsberg, Esq. Pattison, Sampson, Ginsberg & Griffin, P.C. 22 First Street, P.O. Box 208 Troy, New York 12181-0208 (518) 266-1026 (518) 274-6034 Fax mginsberg@psgglaw.com

  2. INTERNATIONAL TRADE

  3. Interaction with Foreign Trade Partners Contract Based • Incoterms (International Commercial Terms of Sale) • Payment Terms • Insurance • Trade Barriers

  4. Incoterms (International Commercial Terms of Sale) • New, beginning 1/1/11 • Formulated by International Chamber of Commerce • Eleven standard terms recognized internationally • Allocate risk associated with shipping of goods • i.e. where goods are to change hands • who will clear goods for export, • Who will insure the goods, etc.

  5. Incoterm Definitions Rules of Any Mode of Transport (also knows as “multimodal” Incoterms) • CIP – Carriage and Insurance Paid • CPT – Carriage Paid To • DAP – Delivered At Place • DAT – Delivered At Terminal • DDP – Delivered Duty Paid • EXW – Ex Works • FCA – Free Carrier

  6. Incoterm Definitions Cont. Rules for Sea and Inland Waterway Transport Only • CFR – Cost and Freight • CIF – Cost, Insurance and Freight • FAS – Free Alongside Ship • FOB – Free on Board

  7. Payment Terms • When will seller be paid? How? In what currency? • payment in advance • Letters of Credit • Revocable • Sight

  8. Payment Terms Cont. • Currency Risk • Floating • lock into specific rate • lock into rate range (high – low) • When can goods be rejected? • What process will be followed? • what law will apply? • Compliance with foreign law?

  9. Insurance • Insurance for lost or damaged goods • Credit Insurance • insures receivables (export and domestic) backed by letters of credit • allows for greater financing opportunities • generally a lender will not consider export receivables in underwriting process • with credit insurance lender will take such exports into consideration

  10. Insurance Cont. • Technology Transfer (IP) • Export Import (ExIm) Bank • Does not cover contract disputes

  11. Trade Barriers • Tariffs • VAT credits

  12. EXPORT CONTROL

  13. What information do you need to know for every export transaction? • What is the item? (need to know functions, characteristics, technical parameters of item) • Where is it going? • Who will receive it? • What will be the end-use? • Obtain Letters of Assurance.

  14. DEFINITIONS • ITEM • Items are commodities, software and technology. • EXPORT • An export is the transfer of a physical item, computer software or technical information to a foreign country. • DEEMED EXPORT • A deemed export is the release of information, technology or source code to a foreign national on U.S. soil.

  15. REEXPORT • A reexport is a shipment or transmission of items from one foreign country to another. • EXPORT CONTROL CLASSIFICATION NUMBER (ECCN) • ECCN is an alpha-numeric code used to identify items listed on the Commerce Control List (“CCL”) which is a list of items under the export control jurisdiction of The Bureau of Industry and Security (BIS) of the U.S. Commerce Department. • DUAL USE ITEMS • Items which may have a military or terrorist application even though they were not created for that purpose.

  16. ITEMS SUBJECT TO EAR • All items of U.S. origin wherever located. • All items in the U.S., including a U.S. Foreign Trade Zone or items in transit through the U.S. from one foreign country to another. • Foreign-made items that incorporate controlled items of U.S.-origin, foreign-made items “bundled” with controlled items of U.S.-origin software, foreign-made software that is commingled with controlled U.S.-origin software, and foreign-made technology commingled with controlled U.S.-origin technology.

  17. ITEMS SUBJECT TO ITAR • Defense Articles and Services (munitions and items with military application including technical data.) • A defense article is any item appearing on the U.S. Munitions List. • A defense service is the furnishing of technical assistance, training, or technical data related to defense items, including information, training, text, plans, plant visits, etc.

  18. PENALTIES

  19. EAR • Denial Order. • Civil Fines $250,000 per violation. • Criminal Fines $1,000,000. • Imprisonmentofup to 10 years • Seizure and Forfeiture of Goods

  20. ITAR • Debarment • Civil Fines $500,000 per violation. • Criminal Fines $1,000,000. • Imprisonmentforup to 10 years • Seizure and Forfeiture of Goods and Means of Transport

  21. WHEN THE ENFORCEMENT OFFICERS COME

  22. The information contained herein is not a substitute for advice from independent legal counsel and does not create a lawyer client relationship. You should not act upon such information without first seeking advice from your attorney.

  23. QUESTIONS?

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