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Working with agents/distributors
Professional support for commercialisation and internationalisation
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
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
Agreements: Agents & Distributors
• Written agreement
• Products and Territory
• Exclusive/non-exclusive
• Disputes
• Termination
• Confidentiality, IP
• Targets
Professional support for commercialisation and internationalisation
Incoterms® rules
Professional support for commercialisation and internationalisation
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
Level of risk
• EXW - Least risk to exporter
• DDP - Greatest risk to exporter
Professional support for commercialisation and internationalisation
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
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
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
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
Additional Documentation
Professional support for commercialisation and internationalisation
Commercial Documents - Proforma Invoice
• Issued in advance of goods being shipped
• Quotation
• Letter of Credit
• Currency controls
Professional support for commercialisation and internationalisation
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
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
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
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
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
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
Transport Documents
Bill of Lading
• Relates to sea freight
• Document of title to the goods
Professional support for commercialisation and internationalisation
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
Export Licences
• Military and paramilitary goods
• Dual-use and technology
• Artworks
• Plants and animals
• Medicines and chemicals
Professional support for commercialisation and internationalisation

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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