Working with International agents and distributors, a presentation by Anne Murphy at the Women's Business and Enterprise Conference.
www.wbeconference.co.uk
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
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
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