INTERNATIONAL TRADE


Key issues when selling abroad


With Brexit on the way we are being told to reconnect with our proud trading heritage and ‘export, export, export’, but where do you start? Harpreet Sandhu, Associate and Solicitor in Nelsons’ Commerce & Technology Group, takes a look at the key issues.


As with many industries in Germany, exhibitions and trade shows


often mark the highlight of the business calendar and provide opportunities for companies from around the world to come together. MEDICA, the world's leading trade fair for the medical industry, takes


place in Düsseldorf each November, attracting more than 5,100 exhibitors from 70 countries around the world. Each year, leading individuals from the fields of business, research and politics attend the trade fair alongside tens of thousands of national and international experts and decision-makers from within the sector. While common practices make doing business in Germany seem


familiar, East Midlands companies attending trade shows can expect their German counterparts to be very well prepared for face-to-face meetings having researched potential business partners thoroughly. Commenting on the opportunities Germany offers East Midlands


companies, Giles Jones, International Trade Networks Adviser at the Chamber, said: “Through our delivery of the Enterprise Europe Network (EEN) service we have a direct line to market experts in over 50 organisations in 36 German towns and cities. This is an immensely helpful service for companies seeking to enter the German market and we’re keen to support internationalisation strategies through our range of services including company missions and brokerage events.” Benefiting from modern infrastructure, sustained investment in


research and an accessible and stable economy, Germany is a market internationally-minded East Midlands companies of all sectors should give serious consideration to.


To learn more about opportunities in the Germany market, please contact an EEN East Midlands business adviser on eeninfo@emc-dnl.co.uk or 0333 320 0333.


There are three key ways to sell into a foreign market – you could use an agent, use a distributor or sell directly yourself. The use of a distributor is the


most effective way of mitigating your risk because you are selling directly to the distributor. The distributor then takes the risk of selling into the foreign market. However, this option may not be for you. You may prefer to use an agent to sell on your behalf or sell directly yourself. In either case you will need to consider the risks of making such sales carefully. Should you wish to take the


plunge and sell into foreign markets via an agent or yourself, here are some top tips to consider before making your first sale:


COMPLIANCE It is important that you take professional advice to ensure: (a) you have appropriate export and import licences and (b) your products are compliant with relevant law and standards – including local labelling requirements.


PRODUCT LIABILITY Investigate mandatory insurance requirements and consider any prudent insurances that are beneficial to have, particularly in relation to product liability. Put in place procedures to assist product advisory notices and product recalls.


WARRANTY CLAIMS Ensure you have processes and procedures in place for the


notification, assessment and handling of warranty claims. In particular, consider arrangements for technical support and the supplying of spare parts.


INTELLECTUAL PROPERTY Firstly, investigate whether selling your products in the intended country will infringe the rights of a third party. After all, someone may already have protected the same, or similar, product or trade name. Secondly, entering into an overseas market could put your product’s intellectual property at risk, especially in countries where your product has no registered rights and will have direct competitors. Therefore, consider protecting any relevant intellectual property in your foreign target market. You can typically register trade marks, designs and patents.


HAVE IN PLACE SUITABLE INTERNATIONAL SALES TERMS Consider whether you want to use Incoterms (these are a standardised set of international trade terms published by the International Chamber of Commerce), but bear in mind Incoterms primarily address issues concerning who is responsible for transport of the goods and the transfer of risk. While they can provide a useful framework for your sales contract, they may not be exactly what is required and will not cover everything a sales contract would normally address – such as transfer of title, payment terms and liability.


business network June 2017


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