Dans le cadre du master 1 International Management, nous avons réalisé un business project pour le compte de Versant Edition, une start-up d'ameublement de luxe, au sein de l'ESC Pau. Ce projet fit réaliser 100% en Anglais. Concernant le contexte, Versant Edition est une toute nouvelle société. Après le lancement sur le marché français en 2017, l'entreprise envisage de se développer internationalement en 2018. Sur la base de l'histoire personnelle du fondateur avec ces marchés et du potentiel qu'ils représentent dans le secteur du mobilier de luxe, les États-Unis à été mis en évidence comme priorité. Avant de se lancer à l'échelle internationale, il faut beaucoup de travail préparatoire pour réussir. Notre mission fit d'élaborer un handbook sur les éléments essentiels à savoir pour réussir sur ce marché.
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This invoice typically includes:
• Information on the exporter and the importer (name and address)
• Date of issue
• Invoice number
• Description of the goods (name, quality, etc.)
• Unit of measure
• Quantity of goods
• Unit value
• Total item value
• Total invoice value and currency of payment. The equivalent amount must be
indicated in a currency freely convertible to Euro or other legal tender in the
importing EU country
• The terms of payment (method and date of payment, discounts, etc.)
• The terms of delivery according to the appropriate Incoterm
• Means of transport
9.Exemption and deferral of customs duties:
Since Versant Edition’s furniture are large in size, there is no possibility on exemption and
deferral of customs duties. It is not applicable for Versant’s case because each content is
required to go through customs for each delivery.
10.Service Delivery: Differences:
In the US, most large deliveries are first delivered through cargo ships and then trucks directly
at your doorstep. The cargo ships are essential for US shipment for furniture deliveries
because it is much cheaper than airfreight. Likewise, for furniture shipments, it is
recommended to use cargo ships because there is less movement during transport.
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1.Getting finance to fulfil an export contract to the US:
Schemes are available to French companies selling products and services to the US to make it
easier to fulfil an export contract and grow your business. Contact your bank or specialist
financial organisations for assistance.
Examples:
- COFACE for financial assistance: http://www.coface.fr/
- BPI for financial assistance : http://www.bpifrance.fr/Toutes-nos-
solutions/Accompagnement/Mises-en-reseau/Accompagnement-developpement-
export-Business-France
- Business France: http://export.businessfrance.fr/prestations/financement/Offre-bpi-
export.html
- Banks:
- https://www.societegenerale.com/fr/content/societe-generale-designee-meilleure-
banque-de-financement-du-commerce-international-en-1
- http://www.business.hsbc.fr/
2.Getting paid in USA:
Your contract will specify the terms for payment. If there is any dispute you will need
to go through the US legal system for resolution. This generally takes place in the US state
specified in the contract and abides by state laws.
Coface helps companies to get paid by insuring against buyer default with the credit insurance
who offers:
- The prevention of the daily
- Recovery of imported invoices
- Compensation
2.1Payments instrument:
- Cash in advance:
With cash-in-advance payment terms, an exporter can avoid credit risk because payment is
received before the ownership of the goods is transferred. For international sales, wire
transfers and credit cards are the most commonly used cash-in-advance options available to
exporters. With the advancement of the Internet, escrow services are becoming another cash-
in-advance option for small export transactions. However, requiring payment in advance is
the least attractive option for the buyer, because it creates unfavorable cash flow. Foreign
buyers are also concerned that the goods may not be sent if payment is made in advance.
Thus, exporters who insist on this payment method as their sole manner of doing business
may lose to competitors who offer more attractive payment terms.
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The use of the transfer is frequent mainly through the use of the SWIFT (Society for Worldwide
Interbank Financial Telecommunication) network to which the main American banks are
linked.
There are also two other highly automated interbank transfer systems for significant amounts
- the Clearing House Interbank Payments System (CHIPS) or the Fedwire Funds Service
(managed by the Federal Reserve). The big American companies have recourse.
2.2 Payment techniques:
Several payment techniques exist to collect payment instruments. They offer greater or lesser
security in the collection of funds, the safest ones being also the most expensive and the most
difficult to implement.
The exporter must collect different information on:
- political risk
- the uses of payment techniques in the buyer's country
- awareness of his prospect through information obtained from various organizations
(banks, COFACE, information companies ...).
- Simple cashing
The exporter sends an invoice to his client, possibly accompanied by a draft when a payment
period has been agreed. The customer pays by sending a check or more commonly, by
ordering his bank to make a transfer.
- the documentary
It is a payment technique whereby the exporting seller (called the "originator") commissions
his bank ("remitting bank") to collect, through his correspondent ("presenting bank") the
settlement or the acceptance of the purchaser ("drawn") at the time of presentation of the
documents representative of the goods (transport and insurance documents, invoice,
inspection certificate, certificate of origin, packing list ...).
The seller therefore sends the goods to the purchaser and causes the transport documents to
be made out to the order of his bank, with the prior agreement of the latter, sends them to
him with the invoice, the packing list and other necessary documents. She then hands them
over to her correspondent in the
Country of the buyer; This "presenter" bank then informs the buyer of the receipt of the
documents and the documentary delivery takes place in two forms:
- either the bank will deliver the documents to the buyer only against immediate payment:
documents against payment D / P.
- or it shall not deliver them to them except against acceptance of the bill of lading attached
to them: documents against acceptance D / A.
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- Documentary credit "letter of credit"
The documentary credit has the broadest risk coverage: it protects the seller from commercial
risk (customer insolvency), country risk (catastrophic, political, economic) and non-
transferable when it is irrevocable and confirmed. It is however relatively complex and
meticulous and must therefore be well mastered to be a good security of payment. It is also
relatively expensive.
The documentary credit is therefore:
- the commitment made by an "issuing bank", even before the start of the contract,
- on request and on behalf of its customer (the foreign buyer "ordering party"),
- to pay the exporting seller "beneficiary", on demand or at maturity,
- through its correspondent, usually located in the country of the seller "notifying bank"
- an amount determined up to a predefined "validity" date
- against delivery of the documents in conformity listed in the request for the opening of
documentary credit completed by the foreign buyer.
The documentary credit, referred to in practice as a "letter of credit", is subject to a very
precise and regularly updated international codification: The Rules and Uses relating to
documentary credits, elaborated by the International Chamber of Commerce, currently
abbreviated to "RUU 600" entered into force on 1 July 2007.
There are different types of documentary credit:
- irrevocable credit: it can only be amended or cancelled if all the parties concerned agree,
- irrevocable and confirmed documentary credit: in addition to the irrevocable commitment
to pay from the issuing bank, the seller also obtains that of a bank called "confirming bank" of
its own country or of a large international bank located in a Political risk country.
Difference between documentary credit and documentary remittance:
Although documentary delivery is simpler, faster and cheaper than documentary credit, the
latter has a prominent place and is widely used as a means of settling internationally. It is the
only one that provides sufficient security for both parties. The documentary delivery makes
the seller very dependent on the buyer
- The standby letter of credit (SBLC)
The stand-by letter of credit is used by the exporter only if the buyer has not paid the sum in
time. It is only in this case that he claims the payment to the bank which issued the guarantee,
presenting the documents required in the text of the stand-by letter of credit.
By opening a stand-by letter of credit, the importer guarantees to his supplier that his bank
will replace him if he fails, provided that the exporter presents the documents claimed as
proof of existence of the claim. The commercial transaction is settled by any means agreed
between buyer and seller, usually a simple transfer on the scheduled date.
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1.Understanding international contracts
The international contract of sale shall be concluded between two person’s residents in
different countries. At the root of any agreement, there is an offer that clearly contract. In
order for the contract to be realized, the contractual partners must consent. The contract of
sale will finalize the negotiation between the exporter and the importer; will materialize their
agreement.
To facilitate the writing of those contracts the United Nations have written the Convention on
Contracts for the International Sale of Goods.
So, the best to export at international is to adapt the contracts at the United Nations
Convention on Contracts for the International Sale of Goods (CISG; the Vienna Convention), is
a convention adopted by 85 countries all around the world, it has been signed by France,
Germany and united states of America.
The Vienna Convention mentions that the contract does not have to be concluded or in writing
and is not subject to any formal requirements. However, given the problems encountered in
applying the contracts, it is strongly recommended that both parties state in writing their
willingness to subject to the provisions of the Vienna Convention, thereby enabling them to
choose a neutral right. In return for this pre-contractual freedom, the law imposes an
obligation the principle of "the law between the parties". Any failure to this obligation will
entail penalties.
2.Understand the "applicable" laws
In the united states, you have to know that in case of conflict under the federal legislation and
the legislation of the state where you decide to sale, the law which rules is the federal
legislation.
3.Contracts for the sale of goods
3.1 Delivery of the good
To send your products in the USA you use the boat so you have to use a correct packing
who resist to water. The brand and the label of your products have to be big and clear with all
the documentation if you want that your product is accepted at the first time to enter in the
country. So, you have to be careful to notice the name of the port, the phone number and the
address of the recipient on at least 3 faces of the products. And it’s the same for all the specials
mentions like fragile, the instruction of transport, the dimension and weight of the product,
the number of the product, the bill and the number of the order.
To begin well at the exportation, you can ask to make your first exportations by a
transitive who can export your product in the right way because he already know all important
things about the country where you send your products and also the best company to
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4. They hate silence: This is an area that you can capitalize on if you are from a culture like
Japan, where silence is used as a strategic and conscious choice.
5. They will interrupt you: As American culture is less structured around hierarchy; the floor is
often open for anyone to contribute. There is not an order that people need to follow in terms
of who talks when. If you are negotiating as a group, be ready for contributions from anyone,
at any time and expect to be interrupted and cut off. To Americans, this is not necessarily
rude. It means they are engaged and actively participating, perhaps passionate about the
negotiation.
5.Compliance with International Standards
ASTM International, a global leader in the development of international voluntary consensus
standards, adopted the first furniture stability standard in 2000. It was updated in 2004, 2009
and again in 2014.
ASTM F2057-14, Standard Safety Specification for Clothing Storage Units, is intended to
reduce injury and death from accidents involving clothing storage units. Specifically, it covers
chests, drawer chests, chests of drawers, dressers and bureaus over 30 inches in height. The
procedures for stability testing of the units is presented in detail within the standard, available
for purchase from ASTM.
Furniture manufactured in compliance with the standard meets three specific criteria:
1) It passes TWO stability tests. The first test requires that the piece not tip when all doors are
opened 90 degrees and all drawers are opened to the “stop, or, if there is no “stop,” they must
be opened two-thirds of the way. The second test requires that the piece not tip when each
drawer is opened to the “stop” and a 50-pound weight is gradually applied to the front of the
drawer. For doors, the weight is applied to outer edge of the door.
ASTM Tip-Over Warning Label
2) The piece must have a permanent warning label attached where it can be seen when the
piece is in use. (Most manufacturers choose the inside of a top drawer.)
3) Tip-over restraints must be included with each item of furniture. These must meet the
requirements of the tip restraint standard (F3096-14). Instructions for installing the restraints
also must be included.
The ASTM Subcommittee on Furniture Safety has jurisdiction over this and three other active
ASTM standards for furniture. These include the standard for furniture tip restraints, a
standard for horizontal glass used in desks and tables, and a standard for cedar chests
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Getting started
1. Get your exporter number and export license ready from the US Customs and Border
Protection.
2. Know which port of entry you will take or what state will you enter from.
3. Know which mode of transportation you will use. (Road, Rail or Air)
4. Hire a freight forwarders and customs broker in order to complete the documents
needed. (Shipping & Commercial Documents)
Handling your finance:
1. Contact COFACE and BUSINESS FRANCE to establish an assessment of the abilities to
export.
2. Take Insurance-credit of COFACE
3. Take an appointment with your bank to see the best methods of payment, fix the
exchange rate, take insurance for non-payments, maybe open an account in US.
4. Take an appointment with your accountant to check your finance.
5. Contact French embassy and Federation of Tax administrator in US to know more
about Tax in US.
Understanding the Legal Matters:
1. Be careful of what takes your insurance and the insurance of the exporter. Follow all
the movements in federal laws but also for the laws of the state where you work
2. Contact a lawyer specialized in American jurisdiction.
3. Send your furniture pass the test to know if you have to change something to enter
in US market.
4. Make the procedure to protect your brand and product in US
5. Write and put you label on your packing properly to be sure your product is accepted
on the territory.