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DISCLOSURE, DISCLAIMER AND ACKNOWLEDGEMENTS

The International Import-Export Institute's Global Import-Export Desk Reference Handbook isan attempt to assimilate the vast amount of practical knowledge available on international

trade into a single desk reference. Although at first glance, the Handbook may appear to bewritten for the U.S. importer or exporter, it has been written with a global audience's concernsin mind. To make the material readable, a single, medium-size fictitious company residing in

the U.S. was chosen as the focus of our discussion. It could just as easily have been a company

anywhere in the world.

We gratefully acknowledge the original effort put forth by the many sources from which weobtained this information. The valuable assistance given from numerous individuals within the

U.S. Department of Commerces, U.S. Foreign Service, and International Trade Division ispriceless. We are also indebted to IIEI's Global Advisory Board and colleges and universitiesworldwide for their meaningful contributions and to the Office of Foreign Affairs and

International Trade Canada and other governments for their assistance.

The information and data compiled in the Handbook was gathered from sources believed to beauthoritative and reliable. No responsibility is assumed or implied by the International Import-

Export Institute, Dunlap-Stone University, U.S. Department of Commerce or any othercontributing organization as to the accuracy, completeness or factual representation containedherein.

Keep in mind that this Handbook will continue to be a work-in-progress. Our staff isconstantly adding to and adjusting the content to keep it current and to meet the industrysneeds. Because of the monumental task of compiling the global input we receive, not allsections of the Handbook are as complete as we would like. Future revisions, we hope, will

reflect the full global scope in all areas.

The Internet links (URL addresses) that are offered within this Handbook were checked foraccuracy, and at the time of publishing, were believed to be active and accurate. We take no

responsibility as to any Internet link's value, nor do we endorse any website - they are simplyoffered as a convenience to those interested.

This Handbook may be reproduced by licensed and approved IIEI ApprovedProviders at their discretion within the terms set forth in their agreement withIIEI.

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Table of Contents

Notes..1

Section One: PREFACE.2

Section One: 4

Preface 4Getting Started 5

Section Organization 5

Section Two: INTRODUCTION..8

INTRODUCTION 10

GLOBALIZATION 10EXPORTING 11

EXPORT PLAN 14

IMPORTING 16

TRADE AGREEMENTS 17SECTION REFERENCES 18

Section Three: REACHING MARKETS20

REACHING MARKETS 22

IS YOUR COMPANY EXPORT READY? 22

THE OVERSEAS INQUIRY 26THE OUTBOUND INQUIRY 31

PRODUCT EXPORT POTENTIAL 37

A Few Words About Your Marketing Plan 38

INTERNATIONAL MARKETING INFORMATION 39ASSESSING MARKETS 43

Other Sources of Information 45Commerce Export Assistance Programs 45SECTION SUMMARY 51

SECTION RESOURCES 51

Section Four: EXPORT DISTRIBUTION52

EXPORT STRATEGY 54

EXPORT DISTRIBUTION 57SECTION SUMMARY 73

SECTION REFERENCES 73

Section Five: EXPORT PRICING.74SECTION SUMMARY 87

SECTION REFERENCES 87

Section Six: SHIPPING AND DOCUMENTATION.88

INTRODUCTION 90

CARGO INSURANCE 97

DOCUMENTATION 98EXPORT PACKING 105

EXPORT LABELING 107

TRANSPORTATION 108

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SECTION SUMMARY 110

SECTION REFERENCES 111

Section Eight: INTERNATIONAL LAW138

DUTIES & TAXES 138

INTERNATIONAL LAW 140AGENCY AGREEMENTS 141

PATENTS AND LICENSING 143

EXPORT TAX INCENTIVES 148

FREE TRADE ZONES 151REGULATIONS RELATED TO EXPORT OF CONTROLLED GOODS 152

SECTION SUMMARY 152SECTION REFERENCES 152

Section Nine: BUSINESS TRAVEL153

WHY TRAVEL? 154

SECTION SUMMARY 158

SECTION REFERENCES 158

Section Ten: INTERNATIONAL TRADE TERMS.162

Index 219