Working with international trade consultants can open new territories for your business in other countries. However, before you begin a dialogue with a consultant, it's important to know some industry terms. This will enable you to understand the process and get a better idea of how the industry operates. For instance, many different regulatory agencies govern international trade in the United States. Educating yourself on this information as well as other terms will enable your company to choose the best international trade consultant that fits present needs.
Air, road, rail and sea regulations
Whether the mode of international trade transport be air, road, rail or sea, there are regulations that govern each method. The regulatory bodies also differ depending on the type of transport. Goods considered dangerous receive special consideration under these regulations.
International tariffs and duties
The tariffs and duties are the cost of transporting goods from one country to another. These international trade costs will differ depending on the country, but there are general guidelines that will help you understand this aspect of international trade consultants' job requirements.
Supply Chain Management for more information.
Free on Board, FOB
Free on Board is the term of international shipping by which you designate the time, place and method of delivery and payment for shipped goods. Free on Board is more of legal term and will differ from one country to the next.
Cost, Insurance and Freight or CIF
Cost, Insurance and Freight is a second legal international trade term that's an alternative to Free on Board for companies new to international business, or those with fewer shipments.
Customs & Trade Partnership Against Terrorism or C-TPAT
Following the terrorist attacks of 9/11, tough new trade programs became more prevalent. One such program is the Customs & Trade Partnership Against Terrorism which is voluntary and seeks to increase the security of the border on the United States.
U.S. Customs and Border Protection for further explanation of the program.
