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Management International		 	 2017
	
	
	
	
	
	
	
	
Handbook for doing business in USA
	
	
	
Team D: Isabella Rodriguez, Laure Vitel, Matthieu Hamaide
1	
Summary:	
	
Part	I:	Getting	Started:	.......................................................................................................	2	
1.Regulations	on	international	trade:	.............................................................................	3	
2.Export	declarations:	.....................................................................................................	3	
3.Export	licenses:	............................................................................................................	3	
4.Delivery	of	products:	...................................................................................................	4	
5.Freight	Forwarders	and	Customs	Brokers:	....................................................................	4	
6.Packing	of	goods:	.........................................................................................................	4	
7.Transport	insurance:	....................................................................................................	5	
8.Exports	documents:	.....................................................................................................	5	
8.1	Shipping	Documents	.............................................................................................	5	
8.2	Commercial	documents	.........................................................................................	5	
9.Exemption	and	deferral	of	customs	duties:	..................................................................	6	
10.Service	Delivery:	Differences:	.....................................................................................	6	
Part	II:	Handling	your	finance:	............................................................................................	7	
1.Getting	finance	to	fulfil	an	export	contract	to	the	US:	..................................................	8	
2.Getting	paid	in	USA:	.....................................................................................................	8	
2.1Payments	instrument:	...............................................................................................	8	
2.2	Payment	techniques:	..............................................................................................	10	
3.Currency	risks	in	the	US	.............................................................................................	13	
4.Transferring	money	from	US	......................................................................................	13	
5.Setting	up	a	US	bank	account	.....................................................................................	13	
6.Taxation	in	the	US	.....................................................................................................	13	
7.Sales	tax	in	the	US	.....................................................................................................	14	
Part	III:	Understanding	Legal	Matters	...............................................................................	15	
1.Understanding	international	contracts	......................................................................	16	
2.Understand	the	"applicable"	laws	..............................................................................	16	
3.Contracts	for	the	sale	of	goods	..................................................................................	16	
3.2	Acceptance	or	refusal	of	the	goods	......................................................................	17	
3.3	Unpaid	Vendor	Rights	.........................................................................................	17	
4.Negotiating	in	other	business	cultures	.......................................................................	17	
5.Compliance	with	International	Standards	..................................................................	18	
6.Protection	of	Intellectual	Property	Rights	..................................................................	19	
Part	IV:	Process	&	tips:	.....................................................................................................	20
2	
Part	I:	Getting	Started:
3	
1.Regulations	on	international	trade:	
	
The	main	agency	which	regulates	trade	in	the	United	States	is	the	U.S.	Customs	and	Border	
Protection	(CBP).	Thus,	making	them	one	of	the	key	players	when	importing	to	this	country.	
Our	group	believes	that	Versant	Edition	must	be	guided	by	their	laws	since	they	are	the	biggest	
governing	body	regarding	international	trade	in	the	US.			According	to	their	official	website,	
there	are	a	few	general	rules	when	starting	to	export	to	the	US.		
• Find	out	if	you	need	a	license	from	a	local	state	authority	in	the	US.	This	depends	on	
your	point	of	entry	because	some	states	may	not	require	you	of	a	license	
• Provide	your	exporter	number	of	the	CBP	entry	form	in	order	to	import	merchandise	
into	the	US.		
o Your	 IRS	 business	 registration	 number	 or	 Social	 Security	 Number	 will	 be	
efficient.		
• Hazardous	 goods	 may	 be	 subjected	 to	 several	 inspection	 points	 from	 the	 normal	
process.		
	
2.Export	declarations:	
	
According	to	the	website	of	the	Bureau	of	Industry	and	Security	of	the	United	States,	the	
company	 must	 provide	 these	 5	 important	 facts	 in	 order	 to	 determine	 the	 applicability	 of	
Versant	Edition’s	furniture	for	export.			
	
• Classification	of	the	item		
o For	Versant	Edition,	the	products	will	be	classified	under	furniture	and	electrical	
items.		
• Destination	
o The	different	states	Versant	Edition	will	be	available	for	sale.	
• End-user	
o The	ultimate	end-user	who	will	buy	your	products	or	who	will	directly	transact	
from	Versant	Edition.	
• End-use	
o Explain	the	ultimate	end	use	of	the	furniture	for	the	consumer.		
• Conduct	
o Conduct	such	as	contracting,	financing	and	freight-forwarding.	
	
3.Export	licenses:	
	
The	 US	 makes	 it	 possible	 to	 apply	 for	 your	 export	 license	 online.	 Through	 this	 link,	
https://snapr.bis.doc.gov/registration/Register.do,	you	will	be	able	to	not	only	easily	apply	for	
your	license	but	also	to	track	on	the	progress	of	your	license.	This	makes	it	convenient	for	your	
company	 because	 if	 any	 kind	 of	 error	 occurs	 with	 the	 application	 form,	 you	 will	 be	
immediately	notified	by	the	Bureau	of	Industry	and	Security	of	the	US.
4	
	
4.Delivery	of	products:	
	
Since	Versant	Edition’s	furniture	may	cost	over	$2000,	the	company	may	need	to	complete	
the	required	documentation	for	formal	entry.	In	the	case	that	the	piece	of	furniture	or	lighting	
is	below	that	price,	then	the	item	will	only	need	to	go	through	informal	entry.	The	main	
difference	between	these	two	is	that	when	a	formal	entry	is	needed,	there	are	stringent	
documents	which	must	be	provided.	
	
Formal	Entry	(goods	more	than	$2000)		
• Commercial	invoice	
o This	also	considered	as	your	business	invoice	which	represents	the	content	and	
value	of	the	shipment.		
• NAFTA	(The	North	American	Free	Trade	Agreement)	Trade	of	Origin	
• Exporter	ID	number	
• Airway/Road/Railway	Bill	
o A	statement	showing	the	cost	and	origin	of	the	freight	the	company	used.		
• Other	documents	may	be	needed	depending	on	each	port	of	entry.		
	
5.Freight	Forwarders	and	Customs	Brokers:	
	 	
In	order	for	Versant	to	have	a	smooth	delivery	on	furniture	purchases,	they	will	have	to	hire	a	
freight	forwarder	and	customs	brokers.	A	freight	forwarder	arranges	the	different	carriers	
which	will	bring	the	furniture	from	one	destination	to	another	location	in	the	US.	While	a	
customs	broker	handles	the	taxes,	fees,	getting	through	customs	and	other	documents	which	
Versant	will	need	in	order	to	get	clearance	for	their	furniture	to	be	imported	into	the	US	
	
	
List	of	reputable	freight	forwarders	which	Versant	may	hire:	
1. Freightnet	http://www.freightnet.com/directory/p1/cUS/s30.htm	
2. Logistics	List	http://www.logisticslist.com/freight-forwarders.html	
3. World	Class	Shipping	http://www.worldclassshipping.com/export.html	
	
List	of	reputable	customs	broker	which	Versant	may	hire:	
1. Pacific	Customs	Broker	Ltd.	https://www.pcb.ca/brokerage-us.cfm	
2. Cleared	&	Delivered	http://www.clearedanddelivered.com/content/	
3. Farrow	http://www.farrow.com/us-customs-broker	
	
6.Packing	of	goods:	
	
In	 the	 US,	 most	 kinds	 of	 furniture	 are	 package	 through	 a	 wooden	 crate	 to	 ensure	 safe	
transport.	These	wooden	crates	can	accommodate	large	sizes	like	Versant	Edition’s	furniture	
therefore	there	is	no	need	for	Versant	to	ship	their	furniture	unassembled.
5	
	
7.Transport	insurance:	
	
As	Versant	Edition	will	import	their	furniture,	there	is	a	big	risk	for	the	cargo	to	be	damaged,	
lost	and	etc.	from	the	time	of	shipment	until	the	arrival	to	its	final	destination.	Having	said	
this,	transport	through	airplanes,	ships,	trains,	trucks	and	etc.	are	not	liable	for	such	damages	
most	of	the	time.	Thus,	it	is	highly	encouraged	that	Versant	will	avail	of	transport	insurance	
when	exporting	to	the	US.		
	
List	of	reputable	transport	insurance	which	Versant	may	hire:	
	
1. Shapiro	http://www.shapiro.com/import-export/import-insurance/	
2. Priority	 Worldwide	
http://www.priorityworldwide.com/resources/cargo_insurance_guidelines.aspx	
3. Esandis	
http://www.esandis.com/uk/import_export_training/insurance_transport.php	
	
8.Exports	documents:	
	
The	most	commonly	required	documents	for	sending	an	international	shipment	include	the	
Commercial	Invoice,	Certificate	of	Origin,	Exporter	ID	number	and	Airway/Road/Railway	Bill.	
The	 details	 of	 your	 shipment	 will	 determine	 which	 documents	 are	 required.	 In	 Versant	
Edition’s	situation	as	a	furniture	business	these	are	the	documents	needed.		
	
8.1	Shipping	Documents	
	
Certificate	of	Origin		
This	is	a	signed	declaration	from	the	manufacturer	of	the	goods	indicating	that	the	
goods	are	of	what	origin	and	meet	the	requirements	of	a	free	trade	agreement.	In	the	
United	States,	this	is	called	theNAFTA	(The	North	American	Free	Trade	Agreement)	
Trade	of	Origin.	
Exporter	ID	number	
This	is	an	identification	number	given	to	the	exporter	to	keep	track	of	the	transport	of	
their	goods.		
Airway/Road/Railway	Bill	
A	statement	showing	the	cost	and	origin	of	the	freight	the	company	used.	
	
	
	 8.2	Commercial	documents	
	
Commercial	Invoice	
This	document	is	prepared	by	the	exporter	and	is	required	by	the	foreign	buyer	to	
prove	ownership	and	arrange	for	payment.	It	is	the	primary	document	used	by	most	
foreign	customs	agencies	for	import	control,	valuation,	and	duty	determination.
6	
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.
7	
Part	II:	Handling	your	
finance:
8	
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.
9	
- Check:		
	
There	are	two	kinds	of	checks:	
-	 The	check	issued	by	the	account	holder	(the	importer	buyer)	called	"drawer"	on	a	bank	
called	"drawn"	to	the	benefit	of	the	"beneficiary"	(the	seller,	the	exporter).	
It	may,	to	offer	more	guarantees,	to	be	certified	is	to	say	that	the	bank	on	the	check	affix	a	
stamp	showing	that	there	are	sufficient	funds	in	the	bank	account	on	his	show	and	it	blocks	
this	provision	Until	the	expiry	of	the	legal	deadline	for	submission.	
For	its	part,	the	check	is	commonly	used,	but	since	it	does	not	imply	the	notion	of	provision,	
it	offers	fairly	low	payment	guarantees	insofar	as	US	buyers	can	easily	object	to	its	payment,	
materialized	by	a	written	request	Within	14	days	of	its	issuance.	Moreover,	in	case	of	unpaid,	
the	beneficiary	of	the	check	must	always	prove	the	existence	of	his	claim.	
-		 The	 banker's	 check	 issued	 by	 a	 bank,	 at	 the	 buyer's	 request	 and	 which	 therefore	
represents	 a	 direct	 commitment	 to	 pay	 the	 buyer.	 More	 difficult	 to	 obtain	 and	 so	 less	
frequent,	the	cashier’s	check	ensures	full	guarantee	since	such	a	check,	which	the	bank	draws	
on	itself,	is	a	direct	commitment	of	payment	of	its	share.	
	
- The	effects	of	Commerce	
	
They	occur	in	two	forms:	
-		 The	bill	of	exchange	is	a	writing	in	which	the	seller	(drawer)	orders	the	buyer	(drawn)	
to	 pay	 on	 sight	 or	 on	 a	 certain	 date	 a	 certain	 amount	 to	 himself	 or	 herself	 Third	 party	
(beneficiary).	
-	 	The	promissory	note	is	also	a	writing	but	is	issued	by	the	buyer	(called	"subscriber")	
to	 the	 seller	 ("beneficiary").	 Apart	 from	 this	 essential	 difference,	 the	 latter	 has	 the	 same	
characteristics	as	the	bill	of	exchange.	
The	 bill	 of	 exchange	 is	 an	 instrument	 commonly	 used	 in	 international	 relations	 because,	
contrary	to	the	promissory	note,	it	is	issued	at	the	initiative	of	the	seller.	It	has	the	great	
advantage	of	materializing	its	claim	and	of	exactly	specifying	the	payment	period	granted.	
However,	 the	 risk	 of	 unpaid	 remains	 (although	 it	 can	 be	 virtually	 canceled	 if	 the	 shooter	
obtains	the	approval	of	a	bank	on	the	letter	ie	the	joint	commitment	to	pay).	Nevertheless,	
the	risks	of	loss,	theft	and	falsification	and	the	leniency	of	recovery	remain.	A	draft	issued	by	
an	 exporter	 is	 communicated	 to	 the	 importer	 by	 an	 intermediary	 (bank	 or	 agent	 of	 the	
exporter).	At	maturity,	it	will	be	settled	by	bank	transfer.	
The	bill	of	exchange	and	the	promissory	note	are	little	used	in	the	USA	and	they	do	not	better	
constitute	evidence	of	the	claim.	
	
- The	bank	transfer	
	
Bank	transfer	is	an	order	given	by	a	foreign	buyer	to	his	banker	to	debit	his	account	of	a	certain	
amount	to	credit	the	seller's.	It	may	be	transmitted	by	courier,	telex	or	a	private	computer-
controlled	 telecommunications	 network:	 the	 SWIFT	 (Society	 for	 Worldwide	 Interbank	
Financial	Telecommunications)	transfer	supported	by	EDI	(computerized	data	interchange).	
The	SWIFT	transfer	is	to	be	preferred	whenever	the	relationship	allows	it:	it	is	the	fastest,	most	
flexible	and	inexpensive	means	of	transmission.	Other	advantages:	impossibility	of	loss,	theft	
or	falsification	since	there	is	no	paper	support	and	impossibility	of	unpaid.	One	of	the	main	
disadvantages	is	that	it	is	issued	at	the	initiative	of	the	buyer.
10	
	
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.
11	
	
- 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.
12	
It	is	currently	the	subject	of	two	sets	of	rules:	it	may	be	submitted,	at	the	choice	of	the	
operators:	
-	or	to	the	RUU	600	relating	to	documentary	credits	(which	cite	it	only	in	Articles	1	and	2);	It	is	
then	a	bank	guarantee	on	first	request	documentary,	
-	International	Standards	and	Standby	Standards	International	Standby	Practices	ISP98,	known	
as	RPIS	98,	which	came	into	force	on	1	January	1999	and	which	make	the	stand-by	letter	of	
credit	not	only	a	guarantee	but	also	a	payment	instrument.	
The	stand-by	letter	of	credit	submitted	to	the	RUU	600	consists	of	the	irrevocable	undertaking	
by	the	bank	to	indemnify	the	seller	in	the	event	of	default	by	the	buyer.	When	the	contract	is	
signed,	the	buyer	asks	his	bank	to	issue	a	stand-by	letter	of	credit	to	the	seller.	The	issue	is	
made	directly	by	the	bank	of	the	buyer	and	can	be	confirmed	by	a	bank	in	the	country	of	the	
seller	who	undertakes	to	pay	the	latter,	on	first	demand,	
In	case	of	non-payment	by	the	buyer.	In	order	to	enforce	this	guarantee,	the	seller	must	prove,	
through	the	production	of	documents	determined	at	the	time	of	the	issuance	of	the	letter,	
that	he	has	fulfilled	his	obligations.	
It	is	therefore	a	documentary	guarantee.	
	
The	stand-by	letter	of	credit	is	easy	to	issue,	flexible,	it	makes	the	buyer	credible	and	reassures	
the	seller	but	it	is	ambiguous:	it	maintains	a	great	confusion	between	payment	and	guarantee.	
	
- Open	Account	
	
An	open	account	transaction	is	a	sale	where	the	goods	are	shipped	and	delivered	before	
payment	is	due,	which	in	international	sales	is	typically	in	30,	60	or	90	days.	Obviously,	this	is	
one	of	the	most	advantageous	options	to	the	importer	in	terms	of	cash	flow	and	cost,	but	it	is	
consequently	one	of	the	highest	risk	options	for	an	exporter.	Because	of	intense	competition	
in	export	markets,	foreign	buyers	often	press	exporters	for	open	account	terms	since	the	
extension	of	credit	by	the	seller	to	the	buyer	is	more	common	abroad.	Therefore,	exporters	
who	are	reluctant	to	extend	credit	may	lose	a	sale	to	their	competitors.	Exporters	can	offer	
competitive	open	account	terms	while	substantially	mitigating	the	risk	of	non-payment	by	
using	one	or	more	of	the	appropriate	trade	finance	techniques	covered	later	in	this	Guide.	
When	offering	open	account	terms,	the	exporter	can	seek	extra	protection	using	export	credit	
insurance.	
	
- Consignment:	
	
Consignment	in	international	trade	is	a	variation	of	open	account	in	which	payment	is	sent	to	
the	 exporter	 only	 after	 the	 goods	 have	 been	 sold	 by	 the	 foreign	 distributor	 to	 the	 end	
customer.	An	international	consignment	transaction	is	based	on	a	contractual	arrangement	in	
which	the	foreign	distributor	receives,	manages,	and	sells	the	goods	for	the	exporter	who	
retains	title	to	the	goods	until	they	are	sold.	Clearly,	exporting	on	consignment	is	very	risky	as	
the	exporter	is	not	guaranteed	any	payment	and	its	goods	are	in	a	foreign	country	in	the	hands	
of	 an	 independent	 distributor	 or	 agent.	 Consignment	 helps	 exporters	 become	 more	
competitive	 on	 the	 basis	 of	 better	 availability	 and	 faster	 delivery	 of	 goods.	 Selling	 on	
consignment	 can	 also	 help	 exporters	 reduce	 the	 direct	 costs	 of	 storing	 and	 managing	
inventory.	The	key	to	success	in	exporting	on	consignment	is	to	partner	with	a	reputable	and	
trustworthy	 foreign	 distributor	 or	 a	 third-party	 logistics	 provider.	 Appropriate	 insurance
13	
should	be	in	place	to	cover	consigned	goods	in	transit	or	in	possession	of	a	foreign	distributor	
as	well	as	to	mitigate	the	risk	of	non-payment.	
3.Currency	risks	in	the	US	
	
If	you	have	not	fixed	your	price.	You	should	consider	the	best	option	for	you.	
You	may	want	to	consider	'hedging'	where	there	is	a	risk	of	exposure	by	agreeing	a	forward	
contract	with	a	bank.	
	
4.Transferring	money	from	US	
	
Capital	can	be	moved	in	and	out	of	the	US	without	any	restrictions,	however	sums	over	a	
certain	amount	may	be	flagged	by	your	bank.	A	Currency	Transaction	Report	is	normally	filed	
by	the	bank	to	the	Financial	Crimes	Enforcement	Network	for	transferring	a	sum	of	over	$	
10,000.	
	
5.Setting	up	a	US	bank	account	
	
Opening	a	bank	account	in	the	US	can	be	challenging	as	you	will	not	have	a	US	credit	record.	
Some	US	banks	will	offer	French	accounts	with	French	affiliates.	Contact	your	local	bank	and	
ask	about	your	options	for	opening	a	US	account.	
	
6.Taxation	in	the	US	
	
The	US	tax	system	is	complex.	Taxes	can	be	imposed	by	both	the	US	federal	government	and	
individual	states,	counties	and	cities.	The	Internal	Revenue	Service	governs	federal	taxes	in	
the	US.	
	
French	 companies	 with	 US	 customers	 may	 be	 subject	 to	 US	 direct	 or	 indirect	 taxes.	 This	
generally	depends	on	the	nature	and	extent	of	the	French	company’s	connections	with	the	US	
and	can	vary	according	to	whether	it	does	business:	
	
If	you	conduct	US	transactions	entirely	from	France,	you	may	be	classed	as	withholding	US	
federal	income	tax.		
	
You’ll	 need	 tailored	 tax	 advice	 from	 a	 certified	 accountant	 or	 tax	 lawyer	 about	 tax	
consequences	 if	 your	 company	 conducts	 activities	 in	 the	 US	 or	 transactions	 with	 US	
customers.	Your	taxation	situation	will	depend	on	the	specific	facts	and	circumstances	of	each	
particular	situation.
14	
7.Sales	tax	in	the	US	
	
There	is	no	Value-Added	Tax	(VAT)	in	the	US.	Each	state	determines	and	collects	sales	tax	on	
an	 individual	 basis.	 You	 can	 find	 state	 tax	 information	 from	 the	 Federation	 of	 Tax	
Administrators.	
	
If	you’re	VAT	registered,	you	can	zero-rate	the	VAT	on	most	goods	you	export	to	the	US.	You	
will	need	to	get	evidence	of	the	export	within	3	months	from	the	time	of	sale.
15	
Part	III:	Understanding	
Legal	Matters
16	
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
17	
transport	safely	your	furniture’s.	He	can	also	help	you	to	choose	the	best	insurance	in	the	
country	to	protect	you	from	eventually	problems	with	the	customs	or	your	clients	
	
You	have	to	take	care	about	the	insurances	of	transport	because	in	lot	of	case	the	
carrier	take	a	limited	responsibility	with	your	furniture	but	in	lot	of	case	the	condition	of	sales	
indicate	that	you	are	responsible	of	the	furniture	until	the	point	of	delivery	of	the	buyer.	
The	type	of	packing	is	here	important	too	because	your	insurance	can	refuse	to	protect	you	
from	your	clients	if	they	think	that	the	packing	is	inappropriate.	
	
	 3.2	Acceptance	or	refusal	of	the	goods	
	
Before	to	know	if	your	clients	accept	your	furniture,	you	have	to	be	careful	that	they	
are	accept	at	the	customs.		Since	July	2003	if	you	want	that	your	furniture	is	quickly	accept	to	
the	American	customs	you	have	to	respect	the	trade	act.	That	mean	for	you	that	you	have	to	
be	careful	that	the	American	customs	receive	24	hours	before	the	boat	with	your	furniture,	a	
documentation	 with	 fret	 data	 and	 a	 precise	 description	 of	 your	 product	 (what	 is	 it,	 the	
composition,	where	you	are	the	final	address	of	delivery	and	why	did	you	send	your	furniture	
in	USA).	
	
	 3.3	Unpaid	Vendor	Rights	
	
Before	to	be	unpaid	you	have	to	make	some	formalities	to	protect	you,	and	that	can	
help	you	in	the	case	of	unpaid,	first	you	have	to	clearly	put	in	your	computability	everything	
that	you	send	in	foreign	countries.	You	have	also	to	make	a	declaration	at	the	customs,	in	
France	 it’s	 the	 “DAU”	 that	 you	 have	 to	 make	 for	 every	 furniture	 which	 leave	 the	 French	
territory,	the	“DAU”	and	the	facture	have	to	be	give	when	your	products	pass	the	French	
customs.	
	
4.Negotiating	in	other	business	cultures	
	
1.They	have	a	sense	of	time	urgency:	For	Americans,	time	is	money.	They	want	results	and	
they	want	them	quickly.	They	do	not	want	to	negotiate	for	a	long,	extended	period	of	time.	
Do	you	know	how	you	can	use	this	insight	to	gain	an	edge	in	your	negotiation?	Try	to	extend	
the	amount	of	time	that	the	negotiation	takes.	They	might	be	more	likely	to	make	concessions.	
	
2.	They	are	informal:	You	might	expect	Americans	to	dress	more	formally	for	a	negotiation	but	
they	probably	won't.	In	the	land	of	"casual	Fridays"	formality	is	not	as	much	of	a	priority	as	it	
is	in	other	cultures.	What	should	you	do?	Don't	be	thrown	off	if	they	are	dressed	casually.	
Don't	 take	 it	 as	 a	 sign	 of	 disrespect.	
	
3.	Age	doesn't	necessarily	indicate	status:	In	your	negotiation	with	an	American	company,	you	
might	find	yourself	head	to	head	with	a	young	prodigy	no	more	than	30	years	of	age.	Being	
promoted	in	the	American	workplace	is	often	more	about	having	skills	than	having	a	certain	
number	 of	 years	 with	 the	 company	 under	 your	 belt.
18	
	
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
19	
	
6.Protection	of	Intellectual	Property	Rights	
The	US	system	for	protecting	innovation	is	often	cited	as	an	example.	Since	the	1980s,	the	
United	States	Government	has	established	a	massive	policy	of	creating	powerful	institutions	
and	 legislative	 and	 operational	 mechanisms	 to	 promote	 the	 use	 of	 industrial	 property.	
Industrial	property	has	thus	become	a	strategic	weapon,	used	for	political	and	diplomatic	
economic	purposes.	
	
The	 American	 system	 was	 organized	 in	 order	 to	 promote	 the	 creation	 by	 proposing	 a	
procedure	of	deposit	of	copyright.	There	is	no	such	wide-ranging	register	of	copyright	in	the	
world	to	this	day.	
	
There	has	been	a	massive	growth	in	patent	filing	in	the	United	States	since	the	early	1990s,	
which	has	been	a	powerful	support	for	the	policy	of	expanding	US	businesses.	
The	American	system	is	favored	by	common	law,	open,	evolving	and	pragmatic.	However,	this	
system	has	a	flaw:	the	prohibitive	cost	of	judicial	proceedings,	particularly	in	patent	litigation.
20	
Part	IV:	Process	&	tips:
21	
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.

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