Ever since the existence of man, trade has existed within us. When one takes a look back to the history of humanity, when we were not engaging in fights and war we would find ourselves buying and selling goods and services from one another. Through imports and exports, that is the very reason we see the fresh horticultural products and also vegetables within our country, and when one view in the modern sense, trade between countries is the very reason we have drinks, furniture, food, clothes among many more things we require in our day to day activities. Imports can be described as products or services that are brought to our country from another country, while export can be described as products and services that are produced within our home country for the purpose of sales to other countries. Through the evolution of technology, the modern system of conducting international trade has become a complex and diverse web of trading whereby the distribution, sales, and delivery of goods require a chain of events (Greenaway & Hine, 1990).
The import and export business world is a chain of complexity whereby the traders tend to employ a system that will balance and satisfy the emotional and economic needs of the people around the globe. The question that the export and import industry tries to solve is if an individual requires a product or service that is manufactured or grown in another region and they do not have the access to that region of the world what will they do? The other question that this industry solves is how to give other individuals to enjoy the opportunity of other countries produce and at the end still creating a sustainable lifestyle that will accommodate both the producers of the goods and the transporters of the goods from one point to the other (Greenaway & Hine, 1990).
I tend to venture in the exportation and importation of wine whereby we will be producing, exporting and importing wine and various high-end products which include honey and also tea. The name of the company will be known as The Heritage commissioners Brand, I have worked within the branding management industry and I took my interest in these products after attending a wine festival that was hosted in South Africa. After having a glass of wine I realized there is no distribution of such wine into the United States market and also the distribution within their country had received less attention. The company will enter into the wine industry market by developing several strategies whereby we will be importing the wine products from the South African market to the United States of America market. In turn we will be exporting the farm produce of grapes from South Africa to the United States and England.
So before proceeding with the idea, there are several procedures that need to be put in place they can be considered as the basics of starting a business. The first procedure to undertake is protecting my idea under the Intellectual property Law of the United States of America so as to prevent my idea from being stolen by another person. The second step to take is to register the company with the state in which the headquarters of the business will be set also I will seek in registering the domain name and acquiring any business license that is required to allow my business to perform effectively. Since I will be dealing with alcoholic products I will inquire a permit from the Alcohol and Tobacco Trade and Tax Bureau of the United States of America. The challenge of acquiring this product is that although it is free it takes quite some months before one is approved of the permit (Gibbon, 2003).
Some of the challenges within the legal requirements of the international countries that I will be trading with is an infringement of intellectual property and the VAT inclusive of customs duty. The challenge with infringing of intellectual property is that I could be starting a business whereby someone had a patent for that business idea already without my knowledge henceforth risking the business from being prosecuted and considered to infringe the rights of others. The most basic and effective way to avoid breaking the intellectual properties law is by conducting sufficient research to ensure that the business to be opened is legitimate.
The other challenge that comes in handy with relation to legal issues is the Value Added Tax and customs duty that has to be paid from exports that are not within the EU nations. For any goods that are coming from outside the EU on is required to pay the value-added tax together with the customs duty. All the goods that are transported from outside the EU for the purpose of trading attract a customs duty of approximately 5-10% but these figures tend to change depending on the origin of the country the products are shifted from. This is a challenge since we will be export and importing goods as the business grows since one of the objectives of the company is to expand the market audience, in most cases this cases the delay of goods from reaching the distributors in time. The best way to ensure we solve this given legal issue and avoid the implications of making loses is by, for instance when we are distributing our products within the regions of EU, we ensure that we communicate with the suppliers and give them the VAT number. The reason to give the VAT number to the suppliers is to ensure the VAT charge included from the invoice is omitted (Gibbon, 2003).
There are various challenges that come with the different given legal issues but all these challenges are for the benefits of the manufacturer, distributor to the consumer. If legal measures are not put in place there tends to be confusion within the given market and it is inappropriate to have a confusing chain of the market since it will lead a collapsing economy. The choice of legal entity will be more of a corporation so as to minimize the risks of acquiring loses. Also, the benefit of having a corporation is that the distribution of products from one point to another is that the workload is distributed among partners and this ensures that products arrive at the expected time. All the legal acts that are put in place comes with its pros and cons but eventually, they contribute to a balanced market that accommodates everyone and also the business is conducted effectively without confusion.
Gibbon, P. (2003). Value-chain governance, public regulation and entry barriers in the global fresh fruit and vegetable chain into the EU. Development Policy Review, 21(56), 615-625. https://doi.org/10.1111/j.1467-8659.2003.00227.x
Greenaway, D., & Hine, R. C. (1990). Intra industry specialisation, trade expansion and adjustment in the European economic space (No. 281). IUI Working Paper.
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