Company Name:
Lishui Huanqiu Bearing Trading Co., Ltd.
Company Address:
No.11 Shiting Road, Shuige Industrial Zone,Lishui, Zhejiang,China
Contact Person: William
Email: admin@tradebearings.com
Homepage: www.asiabearings.com
Bearing B2B: www.tradebearings.com
1. Failure to obtain export counseling and to develop a master international marketing plan before starting an export business.
Utilize Government and Association Resources for Export Counseling: It is also important for new exporters to seek legal counsel.
Hire a Lawyer to Help You Structure Your Export Operations for the Long Run: Lawyers are concerned with issues of compliance on both ends of the transaction, therefore they are instrumental in helping you to make sure that your recordkeeping system is planned correctly, that your legal documents are structured correctly, and to advise you on a broad range of compliance issues before the sale, during the sale, and after the sale.
2. Insufficient commitment to overcome the initial difficulties and financial requirements of exporting.
To be successful in exporting, firms have to establish an export department to which they dedicate personnel and a budget, and for which they develop appropriate procedures, preferably in consultation with a qualified trade lawyer. A recommended resource for helping firms to assess their “readiness” to export is cited below:
Michigan State University’s Center for International Business Education and Research—CIBER: MSU has an Export Academy that has developed a state-of-the-art system to assess export readiness. Called CORE V™, it is a Windows-based managerial tool for self-assessment of organizational readiness to export.
3. Failure to have a solid agent and or distributor’s agreement.
Firms that intend to enter and to expand in exporting will likely need an agent or distributor at some point. Key considerations include
Understanding the Role of Distributors: The key legal distinctions between an agent and distributor are
A distributor takes title to the goods and accepts the risk of loss. A distributor makes profits by reselling the goods.
Distributors cannot contractually bind the company producing the goods.
Distributors establish the price and sales terms of the goods.
Contract Drafting Considerations for Agent/Distributor Agreements: The first and most important consideration when drafting an agreement is to ensure that the agreement clearly states whether there is an agent or a distributor relationship. The agreement should also clarify the terms and conditions for selling the products. For example:
Determine whether the relationship is exclusive versus non-exclusive.
Specify which geographic regions are to be covered.
Outline issues of payment and payment schedules for the products (in the case of a distributor) and for payments of commissions (in the case of agents).
Determine the currency in which payments are to be made and address currency fluctuation issues.
Provide specific provisions regarding renewal of the agreement, including specific parameters for performance, promotional activity and notice of desire to renew.
Establish a specific provision for termination of the agreement and terms for such termination. (Some foreign countries restrict or prohibit termination without just cause or compensation.)
Outline the termination process for the end of the agreement period.
Provide for workable and acceptable dispute settlement clauses.
Assure that the agreement addresses whether or not intellectual property rights are being licensed or reserved.
Do not allow, without seller’s consent, the contract to be assigned to another party (sub-agents or sub-distributors) to be used to fulfill obligations in the contract or the contract to be transferred with a change of ownership or control over the agent/distributor.
Assure that your contract complies with both U.S. and foreign laws.
The Commercial Service of the Commerce Department provides a service to identify qualified agents, distributors, and representatives for U.S. firms. For each Agent/Distributor Service, Commercial officers abroad identify up to six foreign prospects that have examined the U.S. firm's product literature and expressed interest in representing the U.S. firm's products.
4. Blindly chasing orders from around the world
You may be in your office when suddenly and unexpectedly someone from a foreign country contacts you electronically and wants to buy a line of your products. What do you do next?
Business considerations in checking out the firm making the inquiry: Make sure the opportunity is a reasonable one and involves something that can reasonably be handled by your firm, without spending countless hours researching the requirement. The Department of Commerce Commercial Service has a number of services to assist you.
International Company Profile (ICP) – The ICP service, referred to earlier, helps firms investigate the reliability of prospective trading partners.
Country Directories of International Contacts (CDIC)Provides the name and contact information for directories of importers, agents, trade associations, government agencies, etc., on a country-by-country basis. The information is available on the National Trade Data Bank.
Competitive considerations in checking out the market for the product: By reviewing industry sector information, firms can obtain useful data to assess the probability that the inquiry they are investigating is real. One resource that may be helpful is the Department of Commerce, Commercial Service’s Industry Sector.
The U.S. Department of Commerce’s Commercial Service Officers are a valuable resource for information about firms overseas. Access this service to learn if a particular deal sounds legitimate and whether the agency has any information on the firm making the inquiry.
5. Failure to understand the connection between country risk and the probability of getting export financing.
The best source of information about whether a country is in good standing with the U.S. is the U.S. Export-Import Bank’s Country Limitation Schedule.
Access the Export Financing Options: The SBA, ExIm, and the Agriculture Department are three of the biggest providers of export financing in the federal government. A list of the strategic banking partners of the ExIm and SBA export financing and credit insurance programs can be obtained from ExIm and SBA.
Check out SBA’s Export Financing Products: The SBA’s Export Working Capital Program (EWCP) provides short-term working capital for up to one year.
Consult the ExIm’s Export Financing Products: The ExIm’s Working Capital Guarantee Program allows commercial lenders to make working capital loans to U.S. exporters for various export-related activities by substantially reducing the risks associated with these loans.
Access ExIm’s Export Credit Insurance: The Export Credit Insurance program provides protection against losses associated with foreign buyers or other foreign debtor default for political or commercial reasons.
