Regulations and Requirements
Before undertaking any overseas venture, U.S. firms should be aware of foreign country agreements, licenses, host-country regulations regarding certain types of business, tax incentives, requirements, and general regulations affecting trade between the United States and the foreign country.
This chapter reviews the following topics:
• Accounting and tax information. Tax rules governing U.S. individuals and companies abroad, as well as U.S. government incentives for operating abroad.
• Export license assistance. Where to obtain information on export licenses and the application process.
• Host-country incentives. Investment incentives available in foreign countries for U.S. businesses, including import duty exemptions, tax holidays, and grants.
• International agreements and treaties. How to locate information on investment treaties, trade barriers, and foreign government approvals.
• Rules, regulations, and standards. Where to find information and programs to assist U.S. firms with product standards, customs, export restrictions, and trade disputes.
Accounting and Tax Information
General Information
This chapter provides the most current and detailed information available. As tax codes, rules and regulations, and treaties are added, changed, or eliminated on a frequent and regular basis, however, please be sure to contact an appropriate and authorized agency for the most up-to-date information possible.
Taxation of U.S. Citizens Abroad
U.S. citizens and resident aliens who work or live abroad or receive certain types of foreign income fall under special categories for tax purposes and are granted special exclusions or deductions under certain circumstances. Individuals are advised to consult a tax attorney or accountant to determine whether modifications to the rules have been enacted and their effect, if any, on taxes.
Operating Abroad: U.S. Income Tax Incentives
Major U.S. accounting firms offer comprehensive tax information for U.S. corporations, small businesses, and individuals engaged in international commercial transactions. They provide detailed information on taxation of foreign operations, controlled foreign corporations, sale or liquidation of controlled foreign corporations, foreign tax credits, tax treaties, and special U.S. trade incentives, as well as tax incentives offered by host countries. Because the tax subjects are complex and rules are modified frequently, business executives and individuals are advised to consult a knowledgeable tax advisor.
Tax-Favored Export Entities
U.S. law allows for the establishment of certain entities that receive special tax benefits from the income earned through the export of qualifying goods and services. Previous laws and entities have been deemed noncompliant with World Trade Organization principles, but the interest-charge domestic international sales corporation (IC-DISC) remains one of the best means for U.S. exporters to reduce their tax expenditures. The qualification requirements and associated benefits of the export incentives are as follows: Rather than forming a foreign sales corporation (FSC), exporters may establish a domestic entity known as an Interest-Charge Domestic International Sales Corporation (IC-DISC). To qualify, a domestic corporation must derive at least 95% of its gross receipts from exporting activities and 95% of its assets must be export related. If the corporation meets these and other requirements, the IC-DISC provisions of the tax code will allow the partial deferral (versus the FSC’s exemption) of U.S. income taxes on export profits derived from a maximum of $10 million of gross receipts annually. Unlike the FSC, the IC-DISC is not subject to U.S. tax. Its shareholders however, are taxed currently. In addition, the shareholders must also pay an interest charge on the deferred tax of the IC-DISC. As with the FSC, the IC-DISC rules also provide special pricing and income-allocation techniques to maximize available tax benefits.
Operating Within a Foreign Country
If a U.S. corporation or individual establishes a foreign corporation to carry on activities abroad, its income is generally not subject to U.S. tax until the corporation pays a dividend to the U.S. shareholder. Therefore, U.S. tax on such foreign income may be deferred, even though the foreign corporation is owned entirely by a U.S. corporation or individual.
When a dividend is paid, the U.S. government will allow a credit for withholding tax imposed by the foreign country on the dividend. In the case of a U.S. corporate shareholder owning at least 10% of the foreign corporation, a credit is also allowed for all or a portion of any foreign corporate income tax imposed on the foreign corporation.
Operating Abroad Through a Branch of a U.S. Corporation, Partnership, or Joint Venture
A U.S. corporation that has foreign-source income through the operation of a branch incurs U.S. corporate taxes on that income as it is earned. If there are foreign losses, those amounts may be used to reduce its U.S. taxable income. If foreign income taxes are paid on the foreign-source income, the foreign taxes may be credited against its U.S. taxes (subject to certain limitations if foreign losses have been used to offset U.S. income). U.S. partners or joint ventures must include a share of foreign-source income in their U.S. tax returns. U.S. tax is payable on this income, but a credit is allowed for a share of foreign income taxes incurred.
S Corporations
Certain provisions of the Internal Revenue Code (IRC) allow a U.S. corporation that is owned by a small group of U.S. shareholders to elect to pay no U.S. corporate taxes. Instead, each shareholder is taxed on a share of the corporation’s income as it is earned and may deduct a share of any losses. Since the corporation is not taxed, the usual double tax burden of operating in the corporate form (i.e., the corporation is taxed and the shareholders are taxed when dividends are remitted to them) is avoided. Foreign corporate income taxes paid by such a corporation that operates abroad are allowed as credits on the shareholders’ U.S. individual tax returns.
Exemption From Gross Income for Employees Based Abroad
Self-employed U.S. individuals or U.S. employees residing in a foreign country can be exempt from U.S. income tax up to $92,900 of foreign earned income (income from the performance of personal services in the foreign country). To qualify for this exemption, the employee or self-employed individual must be a resident abroad for an entire tax year or be physically present abroad for at least 330 days during a 12-month period. An employee may also be exempt from U.S. income tax on amounts received from his or her employer to cover certain excess housing costs incurred in the foreign country. Many employers take advantage of these exemptions by reducing the compensation of their overseas employees by an amount equal to the U.S. income tax that the employees would have paid had they remained in the United States.
Foreign Tax Credit Limitation
All U.S. taxpayers are permitted to credit against their U.S. income tax liability foreign income taxes paid or accrued during the taxable year on foreign-source income. In most instances, U.S. corporate taxpayers that receive dividends from a foreign subsidiary in which they own at least 10% of the voting stock are allowed to credit the corporate income taxes paid by that subsidiary on the earnings distributed. However, there are limitations on the credit designed to ensure that the foreign tax credit claimed will not exceed the U.S. income tax payable by the U.S. taxpayers on the foreign-source income. To the extent the limitation prevents a U.S. taxpayer from crediting all the foreign income tax paid or accrued, double taxation (U.S. plus foreign) or excessive taxation of the same income may result. Due to various factors, including differences in U.S. and foreign concepts of income, it is not unusual for the amount of creditable foreign tax to be limited in a taxable year. Taxpayers unable to fully use all their available credits due to the FTC limitation may carry unused credit back 2 years and forward for 5 years.
Transfers of Property to a Foreign Corporation
When a U.S. business organizes a foreign corporation to do business abroad, it often transfers to that foreign corporation tangible property that has appreciated in value (such as equipment or foreign currency), or intangible property that will give rise to future income (such as patents or technical know-how, customer lists, etc.) necessary for conducting that business. Any such transfer must be reported to the Internal Revenue Service (IRS). The gain realized on a transfer to a subsidiary company would ordinarily not be taxed by the United States at the time of transfer. However, since the foreign corporation’s income may not be currently subject to U.S. income tax, it would be possible for that corporation to subsequently sell or use that property and avoid any U.S. income tax. To prevent such avoidance, when applied to transfers of property to a foreign corporation, the general rule is that the amount of gain or income to be earned will be recognized and subject to tax. Certain exceptions to this rule exist, including nonrecognition of gain if tangible assets transferred will be used in the active conduct of a trade or business outside the United States.
Passive Foreign Investment Company
A passive foreign investment company (PFIC) is any foreign corporation in which, for any taxable year, 75% or more of the gross income consists of passive income, or if at least 50% of the average value of the assets produce (or are held to produce) passive income. Ownership percentage by U.S. persons is not a determinant of PFIC status. A PFIC can elect to be treated as a qualified electing fund (QEF) or a nonqualified electing fund (non-QEF). A U.S. shareholder in a PFIC electing QEF status must currently include in income the pro rata share of the QEF’s net capital gain and other earnings and profits (subject to the taxpayer’s election to defer payment of tax and incur an interest charge). A U.S. shareholder in a PFIC that does not elect QEF status must pay tax and an interest charge on the deferred portion of any gain on disposition of PFIC stock and on certain distributions from the PFIC.
Passive Income: The Closely Held Foreign Corporation
As discussed previously, if a U.S. individual organizes a foreign corporation to conduct activities abroad, the income earned by that corporation will normally not be subject to U.S. income tax until the U.S. corporation pays dividends to that individual. However, if more than 50% of the corporation’s gross income is passive income (e.g., interest, dividends, etc.) and more than 50% in value or voting power of the corporation’s stock is owned by five or fewer U.S. citizens or residents, the corporation will be a Foreign Personal Holding Company. As such, the corporation’s net income will be taxed directly to its U.S. shareholders although not actually distributed to those shareholders as dividends.
Controlled Foreign Corporations
Because the income of a foreign corporation is generally not taxed by the United States until distributed as dividends to its U.S. shareholders, some taxpayers seek to shift income currently taxable by the United States to a foreign subsidiary to defer U.S. income tax. The IRC attempts to prevent this by requiring shareholders of so-called controlled foreign corporations (CFC) to pay tax currently on the following types of income earned by the CFC even though such income has not been distributed to the shareholders:
• Passive investment income
• Income from the purchase of goods from, or sale to, certain related entities
• Income from the performance of services for or on behalf of certain related entities
• Certain types of shipping and oil-related income
• Insurance income from insuring risk located outside the CFC’s country of incorporation
• Income from bad conduct such as participation in an international boycott, and payment of illegal bribes and kickbacks
Non-Arm’s-Length Dealing With a Foreign Corporation
If a U.S. corporation deals with its foreign subsidiary in other than an arms-length fashion, the IRS may adjust the U.S. taxpayer’s income as if the parties were unrelated. Thus the arm’s-length standard requires a related taxpayer to report its income and expenses from transactions with its parent as if it were not related to its parent. (It is, therefore, extremely important that the basis for any intercompany pricing be carefully documented.)
Tax Treatment of Gains by U.S. Parent From Foreign Subsidiary
If a U.S. corporation sells or exchanges (including liquidation) stock of a foreign subsidiary that is a CFC, any gain recognized by the U.S. corporation on the stock sale will be taxable as dividend income to the extent the gain does not exceed the foreign corporation’s earnings and profits attributable to the stock that have not been previously taxed by the United States.
Bribe- and Boycott-Related Income
U.S. taxpayers who use foreign corporations to make illegal bribes or other payments to foreign officials or who participate in economic boycotts against Israel (or other designated countries) may be denied credits for foreign income taxes, deferral from U.S. tax on the foreign subsidiary’s income, and FSC benefits.
In addition to the tax implications of making illegal bribes or payments to foreign officials, there can also be serious legal consequences for individuals as well as corporations. To combat the pervasiveness of bribery in international transactions, the Organisation for Economic Co-operation and Development (OECD) has established the Anti-Bribery Convention, which provides legally binding standards to criminalize bribery of foreign public officials in international business transactions. The 34 OECD member countries, which include the United States as well as Argentina, Brazil, Bulgaria, and South Africa, have adopted the convention.
Denial of the Foreign Tax Credit With Respect to Certain Foreign Countries
In general, the foreign tax credit is denied when income is attributable to activities conducted in one of the following:
• In a country that the secretary of state has designated as one repeatedly supporting terrorism
• In a country with which the United States does not have diplomatic relations
• In a country the government of which the United States does not recognize
In addition, U.S. shareholders of CFCs will be taxed currently on the corporation’s income attributable to activities conducted in one of the previously described countries.
Organizations and Services
Financial/Governmental Accounting Standards Board (FASB/GASB)
These organizations establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. FASB serves the investing public through transparent information resulting from high-quality financial reporting standards developed in an independent, private sector, and open due process. GASB establishes and improves standards of state and local government accounting and financial reporting.
Financial/Governmental Accounting Standards Board
401 Merritt 7
P.O. Box 5116
Norwalk, CT 06856-5116
Tel: 800-748-0659; 203-847-0700
Fax: 203-849-9714
Internal Revenue Service (IRS)
This government organization assists international taxpayers through a variety of services, including technical assistance, publications, and other services that can be accessed online. The IRS was recently reorganized into four divisions to better serve its clients: Wage & Investment, Small Business/Self-Employed, Large to Midsize Businesses, and Tax Exempt & Government Entities Division. For more information or for questions concerning tax status or regulations, please contact your state’s local IRS office listed on the IRS website, or at the following address:
Internal Revenue Service
1111 Constitution Avenue
Washington, DC 20224
Tel: 202-622-5000
Fax: 202-622-7854
Web: http://www.irs.gov
International Tax Counsel
This division within the U.S. Department of the Treasury negotiates tax treaties, reviews and works on proposed regulations, and reviews IRS revenue rulings. The International Tax Counsel office also provides up-to-date information on international tax legislation.
International Tax Counsel
Department of the Treasury
Room 1000
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Tel: 202-622-0180
Fax: 202-622-1956
Export License Assistance
General Information
Export Licensing
While it is true that only a small percentage of total U.S. exports and reexports require a license, a number of factors must be considered by a U.S. company before exporting abroad. First, it is important for a business to consider what exactly it is they are exporting. One key in determining if an export license is required is whether the item to be exported has a specific Export Control Classification Number (ECCN). All ECCNs are listed in the Commerce Control List (available on the Government Printing Office website), which serves as a quick reference for products in the following 10 categories:
1. Nuclear Materials, Facilities, and Equipment
2. Materials, Chemicals, Microorganisms, and Toxins
3. Materials Processing
4. Electronics
5. Computers
6. Telecommunications and Information Security
7. Sensors and Lasers
8. Navigation and Avionics
9. Marine
10. Propulsion Systems, Space Vehicles, and Related Equipment
If an item falls under the U.S. Department of Commerce jurisdiction and is not listed on the CCL, it is designated as Export Administration Regulation EAR99. EAR99 items normally consist of low-technology consumer goods, which do not require a license unless you plan to export to an embargoed country, to an end user of concern, or in support of a prohibited end-use. In such cases, you may be required to obtain a license. In the event a license to export is required, the exporter must apply to the Bureau of Industry and Security (BIS) for an export license.
Currently, exports to embargoed countries and those designated as supporting terrorist activities such as Cuba, Iran, North Korea, Northern Sudan, and Syria are more restricted. Restrictions vary from country to country, but generally reflect U.S. government policy toward individual countries. In addition, if the individual or organization receiving the item is prohibited from receiving U.S. exports, a license will be required. As such, to ensure the end user is not of concern, exporters should reference the (a) Entity List, (b) Treasury Department Specially Designated Nationals and Blocked Persons List, (c) the Unverified List, and (d) the Denied Persons List.1
Licensing Technology to a Foreign User
If a U.S. business decides not to operate abroad but to make its technology available to a foreign user through licensing, royalties or other fees received for the use of the technology may be subject to withholding by the foreign country on the gross amount of the fee. Generally, when such a withholding is made, it is creditable against the U.S. income tax payable upon the fee. An income tax treaty between the U.S. and the foreign country may reduce or eliminate this withholding.
For some U.S. businesses that have neither the desire nor the capacity to set up operations overseas, licensing technology may provide a useful alternative. However, it may be best from a business standpoint to establish operations abroad. In that case, significantly different tax considerations come into play. Licensing not only may create competitors but also may restrict market access.
Department of Commerce (DOC)
A Basic Guide to Exporting and U.S. Export Administration Regulations
This publication of the International Trade Administration is obtainable from the U.S. Government Printing Office to assist businesses in developing export strategies, finding economic market research, shipping overseas, completing export documentation, responding to overseas inquiries, and taking advantage of available government export-assistance programs.
Superintendent of Documents
U.S. Government Printing Office
732 North Capitol Street, NW
Washington, DC 20401-0001
Tel: 866-512-1800
Fax: 202-512-2104
Web: http://www.gpo.gov
Export Programs Guide: A Business Guide to Federal Export Assistance
The Export Programs Guide has been the most comprehensive guide to federal programs that assist U.S. exporters. Released in 2009, this edition offers detailed descriptions of more than 100 programs offered by 20 different federal agencies. These programs include export counseling programs, information on trade promotion events, export financing programs, sources of industry- and country-specific information and assistance, and information on export controls and licenses. The PDF guide is available for free download at their web address.
Web: http://trade.gov/publications/abstracts/export-programs-guide-2009.asp
Bureau of Industry and Security (BIS)
The BIS evaluates and processes licenses for proposed exports and reexports of goods and technology from the United States. With the goal of protecting U.S. national security, foreign policy, and economic interests without imposing undue regulatory burdens on legitimate international trade, the BIS helps assist visitors through the export licensing process and provides important information that individuals and firms need to know before exporting. Please visit the BIS website for the relevant contact information related to specific inquiries.
Office of the BIS Chief Information Officer
Department of Commerce
1401 Constitution Avenue, NW
Washington, DC 20230
Tel: 202-482-2000
Office of Exporter Services (OEXS)
OEXS interprets the Export Administration Regulations and provides assistance, including up-to-date status information on pending license applications; advice on a broad range of export issues, licensing requirements, required documentation for export transactions, and special policy concerns for specific countries; assistance in selecting the appropriate license; and answers to inquiries regarding the Bureau of Export Administration (BXA) policy issues and processing time frames. OEXS counselors also serve as intermediaries and arrange meetings between exporters and BXA licensing officials.
• Simplified Network Application Process (SNAP). The BIS now receives a significant amount of traffic through its free Internet-based Simplified Network Application Process Redesign (SNAP-R). SNAP-R provides a secure environment for the electronic submission of license applications, commodity classification requests, and export and reexport applications. SNAP-R also expedites submission acknowledgments and correspondences with BIS. Companies that wish to use SNAP-R must first obtain a Company Identification Number (CIN) to create a user account.
• System for Tracking Export License Applications (STELA). To better serve the exporting community, BIS has launched an online version of STELA. It is now possible to check the status of export and reexport license applications, classification requests, and application notifications online by inputting the BIS assigned Application Control Number (ACN).
Office of Exporter Services
Department of Commerce
1401 Constitution Avenue, NW
Washington, DC 20230
Tel: 202-482-0436
Fax: 202-482-3322
Host-Country Incentives
There are many reasons for host countries to open up their doors to foreign direct investment (FDI). Investments typically deemed attractive by host countries share some of the following advantages:
• Provide local goods as a substitute for imports
• Involve employment of local labor
• Use local raw materials
• Train local managers and technicians
• Develop locally owned suppliers
• Reinvest profits in the local economy
The following checklist illustrates the variety of incentives, many of which are negotiable during the preinvestment stage, that are offered by host countries in order to attract FDI. A prospective investor’s market and investment feasibility study should include a thorough investigation of all tax and nontax incentives, as well as obstacles to doing business in a particular country. Further information can be obtained from major accounting firms, foreign ministries, U.S. government agencies and embassies, as well as financial institutions operating abroad.
Tax and Tariff Incentives
Income Tax Incentives
• Corporate income tax holidays (exemptions from income tax) that may be limited or unlimited in time and amount
• Accelerated depreciation
• Investment tax credits
• Increased deduction allowed for business entertainment in connection with export sales
• “Double deduction” of export promotion expenses
• Royalty or fee income of a foreign transferor of technology may be exempt from withholding of income tax
• Foreign contractor’s taxable income may be determined by a favorable formula
• Reduced personal taxation of foreign managers and technicians
• Reduced withholding of tax on dividends to foreign shareholders from approved investment
Other Tax Incentives
• Exemption from excise taxes on imported machinery and equipment
• Exemption from registration duties, stamp taxes, or capital taxes upon incorporation
• Exemption from property taxes
• Exemption from sales, value added, and excise taxes with respect to export sales
• Tariff incentives
• Waivers on import of machinery, equipment, and raw materials
• Access to regional common markets
• Tariff-free foreign trade zones
Nontax Incentives
Financial Assistance
• Grants for purchase of land, buildings, and machinery
• Grants for expenditure of export market development
• Grants to aid research and feasibility studies
• Government land provided for factory sites
• Low-cost rentals in government-owned industrial parks
• Low-cost financing
Other
• Assistance in locating plant sites, employees, suppliers, and markets
• Preference in purchases by government agencies
• Protection of market from competition
• Purchase of government-owned raw materials (e.g., oil and gas) at less than market price
• Guarantee of availability of foreign exchange to purchase equipment and raw materials and to pay interest, fees for technology, and fees for dividends
• Work permits granted to nonresident technicians and managers
International Agreements and Treaties
Publications
Department of State
Treaties in Force: A List of Treaties and Other International Agreements of the United States in Force
This annual publication of the U.S. Department of State includes bilateral and multilateral agreements in effect as of January of each year. The publication provides information on treaties and other international agreements to which the United States has become a party and that are carried on the records of the Department of State. This list is updated annually and is available for viewing at no cost at their website.
Superintendent of Documents
U.S. Government Printing Office
732 North Capitol Street, NW
Washington, DC 20401-0001
Tel: 866-512-1800
Fax: 202-512-2104
U.S. Trade Representative (USTR)
Bilateral Investment Treaty (BIT)
These treaties are reciprocal agreements between the U.S. government and a foreign government that outline the treatment of investors in the two countries. These treaties, ratified by the Senate, create an international obligation for the United States and the foreign treaty partner, thus superseding domestic law. The U.S. government seeks to negotiate BITs that contain the following major elements:
• Most-favored-nation or national treatment (with limited exceptions), whichever is better, for the U.S. investor abroad
• Guarantees of prompt, adequate, and effective compensation for expropriation, as well as the right to transfer such compensation at the prevailing exchange rate on the date of expropriation
• The right of investors to make free transfers of currency in connection with the investment at the prevailing exchange rate
• A legal framework for the settlement of disputes between a firm and the host country based on prevailing standards of international law, including the possibility of third-party arbitration
• The right for investors to engage the top managerial personnel of their choice regardless of nationality
The Trade Compliance Center maintains an online list of BITs currently in force at their web address.
Office of Industry and Services
Office of the U.S. Trade Representative
600 17th Street, NW, Room 422
Washington, DC 20506
Tel: 202-395-7271
Fax: 202-395-3911
Web: http://tcc.export.gov/Trade_Agreements/Bilateral_Investment_Treaties/index.asp
Other
Treaties and Other International Acts Series
This publication contains the texts of at least 200 treaties entered into by the United States with other nations. It is published and issued in an indeterminate period. Subscription costs $89.
Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
Tel: 866-512-1800
Fax: 202-512-2104
Web: http://www.gpo.gov
OECD Factbook
Published annually by the Organisation for Economic Co-operation and Development (OECD), this best-selling title provides a global overview of today’s major economic, social, and environmental indicators in a range of user-friendly formats. The OECD Factbook can be purchased from the OECD Online Bookshop for $70 and covers more than 100 indicators in a range of areas including population, economic production, foreign trade and investment, energy, labor force, public finances, and so forth.
OECD Online Bookshop
2, rue André Pascal
75775 Paris Cedex 16, France
Tel: (+33)1-45-24-82-00
Fax: (+33)1-45-24-85-00
OECD Economic Surveys—Country Index
The Economic Survey is published roughly every 2 years for each of the 34 OECD countries. It identifies the main economic challenges faced by each country and provides policy options to meet them. To access the list of surveys for a particular country, please see the website’s link.
Organisation for Economic Co-operation and Development
2, rue André Pascal
75775 Paris Cedex 16, France
Tel: (+33)1-45-24-82-00
Fax: (+33)1-45-24-85-00
Web: http://www.oecd.org
Organizations and Services
Department of Commerce
Office of Services
This division of the DOC provides counseling and advice on U.S. and foreign country laws, regulations, and practices affecting international trade and investment. It is further subdivided into the Office of Service Industries, Office of Financial Service Industries, and the Office of Travel and Tourism Industries. Staff members offer information and help U.S. firms research laws on taxation; antitrust and patent and trademark rights; licensing patents; foreign agents, distributors, and joint ventures; product liability; and other issues related to exporting and international investment.
Office of Services
Department of Commerce
1401 Constitution Avenue, NW, Room 112
Washington, DC 20230
Tel: 202-482-5261
Fax: 202-482-0856
Department of State
Commercial and Business Affairs (CBA)
This office is the point of contact in the U.S. Department of State for U.S. companies requiring assistance with international business. CBA works directly with U.S. business representatives to help them tap into the worldwide resources of the department. CBA creates a dynamic partnership with U.S. businesses by championing U.S. business interests overseas with advocacy, troubleshooting, and market access support; articulating the U.S. business community perspective in foreign policy making and management; engaging business leaders on international issues that affect them; and working with international and U.S. organizations, opinion leaders, and other stakeholders to advance U.S. commercial and business interests in the global marketplace.
Commercial and Business Affairs
Department of State
2201 C Street, NW, Room 5820
Washington, DC 20520
Tel: 202-647-1625
Fax: 202-647-3953
Office of International Intellectual Property Enforcement (IPE)
The IPE promotes American and global innovation by advocating for the effective protection and enforcement of intellectual property rights around the world. The IPE team works with economic officers at the State Department’s embassies, consulates, and missions to ensure that the interests of American intellectual property rights holders have global representation. The IPE also serves to demonstrate the integral role of intellectual property rights protection in the development of the global economy.
The Intellectual Property and Competition Division
Department of State
2201 C Street, NW
Washington, DC 20520
Tel: 202-647-3895
Fax: 202-647-1537
National Marine Fisheries Services (NMFS)
Trade and Commercial Services
This branch of the NMFS addresses trade problems affecting U.S. fishery exports. Domestic and international issues include market access, standards development and application, inspection of U.S. exports, technological trade barriers, traditional industry development, product utilization, and other issues related to industry competitiveness. It also prioritizes industry trade issues in order to improve access to foreign markets and enhance the competitive position of the U.S. fishing industry. These services also develop and implement trade strategy, and negotiate positions in response to industry needs, by representing the assistant administrator of the NMFS in trade negotiations with other U.S. government agencies and foreign governments.
Office of Industry and Trade
National Marine Fisheries Services
1315 East-West Highway
Silver Spring, MD 20910
Tel: 301-713-2379
Fax: 301-713-2384
United Nations (UN)
United Nations Commission on International Trade Law (UNCITRAL)
UNCITRAL is the core legal body within the UN system in the field of international trade law. UNCITRAL was tasked by the UN General Assembly to further the progressive harmonization and unification of the law of international trade. In order to increase these opportunities worldwide, UNCITRAL formulates modern, fair, and harmonized rules on commercial transactions including
• conventions, model laws, and rules that are acceptable worldwide;
• legal and legislative guides and recommendations of great practical value;
• updated information on case law and enactments of uniform commercial law;
• technical assistance in law reform projects;
• regional and national seminars on uniform commercial law;
• provides information on rules and regulations, case law, models for arbitration and conciliation, research guides, online resources, and more.
Secretariat of the United Nations Commission on International Trade Law
United Nations Commission on International Trade Law
Vienna International Centre
P.O. Box 500
A-1400 Vienna, Austria
Tel: (+43)1-26060-4061
Fax: (+43)1-26060-5813
U.S. Department of Agriculture (USDA)
Foreign Agricultural Service (FAS)
This division of the USDA identifies and works to mitigate foreign trade barriers and practices that impede exports of U.S. farm products. Agricultural representatives play a major role in trying to remove tariff or nontariff barriers affecting market access.
A company that has identified a barrier to exporting its products to a foreign country should contact a group (i.e., trade association) in the Market Development Cooperator Program or Cooperator. The Cooperator and the USDA will work together to resolve the barrier. A company that believes it has been treated unfairly by a foreign government in a trade issue, such as losing a tender to a higher bidder, should also contact the Cooperator. Exporters without Cooperator representation can contact USDA directly.
Foreign Agricultural Service
Department of Agriculture
1400 Independence Avenue, SW, Room 5071
Washington, DC 20250
Tel: 202-720-3935
Fax: 202-690-2159
E-mail: [email protected]
U.S. Patent and Trademark Office (PTO)
This office administers the patent and trademark laws of the United States. After examining patent and trademark applications, PTO grants protection to qualified inventions and federal registration to qualified trademarks. The PTO also provides information concerning international patents and trademarks.
U.S. Patent and Trademark Office Headquarters
Madison Buildings (East and West)
600 Dulany Street
Alexandria, VA 22314
Tel: 800-786-9199
Web: http://www.uspto.gov
U.S. Trade Representative (USTR)
This office negotiates and administers all trade agreements on behalf of the United States. In addition, the USTR serves as representative for the United States in the major international trade organizations. The USTR has two major responsibilities:
1. Act as the president’s chief advisor on international trade policy. Its primary responsibility within the U.S. government is developing international trade policy and coordinating its implementation. This includes negotiating with the United Nations, Organisation for Economic Co-operation and Development (OECD), and other multilateral organizations on trade and commodity issues.
2. Serve as the country’s chief negotiator for international trade agreements. The USTR is also responsible for policy guidance on issues relating to international trade, including (a) expansion of U.S. exports; (b) matters concerning the General Agreement on Tariffs and Trade (GATT); (c) bilateral trade and commodity issues; (d) international trade issues involving energy and the environment; and (e) investment matters related to trade.
For a list of contact numbers for all USTR’s respective offices, please visit their website.
Other
World Trade Organization (WTO)
This organization was established in 1995, and is responsible for administering agreed-on rules for trade among its member countries. It requires the notification, publication, and uniform application of trade regulations between the governments of member countries and states. While the WTO is for governments, it is often the case that private firms provide materials that their governments can use to call for an adjustment to a specific regulation or defend an existing regulation. In order to access more information on member countries of the WTO and specific trade regulations, contact the WTO directly.
World Trade Organization
Rue de Lausanne 154
CH-1211 Geneva 21
Switzerland
Tel: (+41)22-739-51-11
Fax: (+41)22-731-42-06
E-mail: [email protected]
Web: http://www.wto.org
Organisation for Economic Co-operation and Development (OECD)
The OECD, established in 1961, seeks to promote policies that will improve the economic and social well-being of people around the world. With 34 member countries, the OECD provides a forum for governments to recognize and solve common problems. By continually monitoring events in both member and nonmember countries, the OECD is able to provide projections of short- and medium-term economic developments. Through mutual examination by governments, multilateral surveillance, and a peer review process, the OECD member countries can agree on rules of the game for international cooperation. These agreements range on a number of subjects, but may relate to combating bribery, arrangements for export credits, or the treatment of capital movements. Agreements may result in standards and models (e.g., in the application of bilateral treaties on taxation). They may also result in recommendations (e.g., on cross-border cooperation in enforcing laws against spam). Alternatively, they may also result in establishing guidelines—for example, on corporate governance or environmental practices.
Organisation for Economic Co-operation and Development
2, rue André Pascal
75775 Paris Cedex 16, France
Tel: (+33)1-45-24-82-00
Fax: (+33)1-45-24-85-00
Web: http://www.oecd.org
Rules, Regulations, and Standards
Publications
Environmental Protection Agency (EPA)
EPA Docket (EDOCKET)
EDOCKET is an online public docket and comment system designed to expand access to documents in the EPA’s major dockets. Dockets contain Federal Register notices, support documents, and public comments for regulations the agency publishes and various nonregulatory activities. This service allows users to search, download, and print documents and submit comments online.
Environmental Protection Agency
EPA Docket Center (EPA/DC)
1200 Pennsylvania Avenue, NW
Washington, DC 20460
Tel: 202-566-1744
Fax: 202-566-9744
Web: http://www.epa.gov
Food and Agriculture Import Regulations and Standards (FAIRS) Country Reports
FAIRS Country Reports are prepared by the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service and provide an overview of a country’s generic requirements and standards for consumer-ready food products. Reports contain food laws, labeling requirements, regulations, and standards on food additives and pesticides. The reports may be accessed online through USDA’s Global Agriculture Information Network.
Office of Agricultural Affairs
USDA/Foreign Agricultural Service
1400 Independence Avenue, SW, Room 4939
Washington, DC 20250
Tel: 202-720-3935
Other
International Mail Manual
This manual is provided by the U.S. Postal Service and provides information on correct international postal rates, prohibitions, restrictions, availability of insurance, and other special services, as well as information on mailing to individual countries. Subscription service consists of three complete cumulative manuals per year. The annual subscription cost is $31 (U.S.) or $43.40 (foreign).
Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
Tel: 866-512-1800
Fax: 202-512-2104
Web: http://www.gpo.gov
U.S. Customs Publications
The U.S. Customs Office offers the following free publications that provide information on U.S. Customs requirements for imports:
• U.S. Import Requirements. General information on U.S. Customs requirements for imported merchandise.
• Tariff Classifications on U.S. Imports. How to obtain a binding U.S. Customs duty ruling on items before they are imported.
• Import Quota. Summary of import quotas administered by the Customs Service.
• Notice to Masters of Vessels. Precautions that masters or owners of vessels should take to avoid penalties and forfeitures.
• Notice to Carriers of Bonded Merchandise. Precautions that carriers and customs brokers should take to safeguard merchandise moving in-bond and the penalties incurred for violations.
• Drawback. How to obtain a duty refund on certain exports.
• Foreign Trade Zones. Advantages, use, and customs requirements of foreign trade zones.
• Foreign Assembly of U.S. Components. Details the use of item 807.00 in the U.S. Tariff Schedule, which permits a reduction in duty to reflect the value of components manufactured in the United States and assembled abroad.
The following publications are available for a fee from the U.S. Customs Service:
• Harmonized Tariff Schedules of the United States Annotated for Statistical Reporting Purposes. For use in classification of imported merchandise, rates of duty, and statistical purposes. Cost: $122 (U.S.), $170.80 (foreign).
• Customs Regulations of the U.S.. Loose-leaf volume of regulations interpreting many of the customs, navigation, and other laws administered by the U.S. Customs Service. Cost: $98 (U.S.), $122.50 (foreign).
• Customs Bulletin and Decisions. Weekly pamphlet containing proposed and final amendments to customs regulations, notices and administrative decisions of interest to the international trading community, and pertinent decisions of the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit. Cost: $247 (weekly issues annual subscription), $7.50 (individual bulletin U.S. purchase), and $10.50 (individual bulletin purchase foreign).
Superintendent of Documents
U.S. Government Printing Office
732 North Capitol Street, NW
Washington, DC 20401-0001
Tel: 866-512-1800
Fax: 202-512-2104
Web: http://www.gpo.gov
Organizations and Services
United States International Trade Commission (USITC)
Trade Remedy Assistance Office
This office was established as a separate division of the USITC to assist eligible small businesses in preparing petitions to the ITC to halt unfair trade practices such as the dumping of foreign goods at below-market prices, as well as foreign import restrictions and export subsidies. This office works closely with the U.S. Department of Commerce, the U.S. Customs Service, the U.S. Trade Representative, and the U.S. Department of Labor to provide technical assistance to firms seeking relief under U.S. trade laws. Legal services assist small companies with filing petitions.
Trade Remedy Assistance Office
500 E Street, SW, Suite 716
Washington, DC 20436
Tel: 800-343-9822; 202-205-2200
Fax: 202-205-2139
National Institute of Standards and Technology (NIST)
Laws and Metric Group
Standard shipping practices for shipping products or providing quotes for foreign customers designate that products must be denominated in metric standards. The Laws and Metric Group of the Weight and Measures Division provides exporters with guidance and assistance on foreign metric import regulations.
Laws and Metric Group
Weights and Measures Division
National Institute of Standards and Technology
100 Bureau Drive, MS2600
Gaithersburg, MD 20899-2000
Tel: 301-975-3690
Fax: 301-975-8091
National Center for Standards and Certification Information (NCSCI)
This organization is the central depository and inquiry point for standards information in the United States. NCSCI responds to over 5,000 individual inquiries annually on identification and source availability of standards. NCSCI provides research services on standards, technical regulations, and conformity assessment procedures for nonagricultural products.
National Center for Standards and Certification Information
Global Standards and Information Group
National Institute of Standards and Technology
100 Bureau Drive, Stop 2150
Gaithersburg, MD 20899-2150
Tel: 301-975-4040
Fax: 301-926-1559
E-mail: [email protected]
Small Business Association (SBA)
Export Legal Assistance Network (ELAN)
This organization provides free initial consultations to small companies on the legal aspects of exporting through an arrangement with the Federal Bar Association (FBA). Qualified attorneys from the International Law Council of the FBA provide advice for companies engaged in the export industry.
The Export Legal Assistance Network
1919 Pennsylvania Avenue, NW, Suite 500
Washington, DC 20006
Tel: 202-778-3080
Fax: 202-778-3063
U.S. Department of Agriculture (USDA)
Agricultural Marketing Service (AMS)
This service of the USDA provides a voluntary food-quality certification service to help U.S. exporters meet importers’ specifications. The service is provided on a user-fee basis. To apply for this service, a copy of the contract specifications must be submitted to AMS in advance. AMS reviews the contracts and works with the companies to develop written specifications that can be certified.
Agricultural Marketing Service
Department of Agriculture
P.O. Box 96456
Washington, DC 20090-6456
Tel: 202-720-5115
Fax: 202-720-8477
Animal and Plant Health Inspection Service (APHIS)
This division provides U.S. agricultural exporters with information concerning foreign import requirements for livestock and fresh vegetables. APHIS will also negotiate with foreign agricultural offices regarding the entry requirements for U.S. agricultural products. For a complete listing of departmental contact information, please refer to the following web address.
Animal and Plant Health Inspection Service
4700 River Road, Unit 133
Riverdale, MD 20737
Food Safety and Inspection Service (FSIS)
This service supplies information regarding foreign import regulations for meat and poultry. FSIS also inspects meat and poultry products to ensure that they meet both U.S. and foreign standards.
Food Safety and Inspection Service
Office of the Administrator
Department of Agriculture
Room 331-E, Jamie Whitten Building
1400 Jefferson Drive, SW
Washington, DC 20250
Tel: 202-720-7900
Fax: 202-720-9600
Grain Inspection, Packers and Stockyards Administration (GIPSA)
GIPSA facilitates the marketing of livestock, poultry, meat, cereals, oilseeds, and related agricultural products, and promotes fair and competitive trading practices for the overall benefit of consumers and American agriculture. GIPSA is part of USDA’s Marketing and Regulatory Programs, and works to ensure a productive and competitive global marketplace for U.S. agricultural products. GIPSA also helps ensure a fair and competitive marketing system for all involved in the merchandising of grain and related products, livestock, meat, and poultry.
• Federal Grain Inspection Service (FGIS) establishes the Official Standards for Grain, which is used daily by sellers and buyers to determine the type and quality of grain bought and sold. FGIS also establishes standard testing methodologies to accurately and consistently measure grain quality. Finally, the program provides for the impartial application of these grades and standards through a network of federal, state, and private inspection agencies.
• Packers and Stockyards Programs (P&S) ensure open and competitive markets for livestock, meat, and poultry. P&S is a regulatory program whose roots are in providing financial protection and ensuring fair and competitive markets.
Grain Inspection, Packers and Stockyards Administration
STOP 3601, Room 2055-S
1400 Independence Avenue, SW
Washington, DC 20250
Tel: 202-720-0219
Fax: 202-205-9237
International Regulations and Standards Division (IRSD)
IRSD is responsible for coordinating with U.S. regulatory agencies and the U.S. food and agricultural industry U.S. government comments pertaining to foreign Sanitary and Phytosanitary (SPS) measures notified to the WTO in the development of international standards.
International Regulations and Standards Division
AG Stop 1014
Room 5932–South
1400 Independence Avenue, SW
Washington, DC 20250
Tel: 202-690-0929
Fax: 202-720-0433
Other
American National Standards Institute (ANSI)
This organization represents the interests of over 1,000 companies, organizations, government agencies, and international members. ANSI facilitates development by ensuring consensus, due process, and openness among its qualified groups. ANSI also promotes the use of U.S. standards internationally and encourages the adoption of international standards as national standards when these meet the needs of the user community.
American National Standards Institute
1899 L Street, NW, 11th Floor
Washington, DC 20036
Tel: 202-293-8020
Fax: 202-293-9287
Web: http://www.ansi.org
THOMAS
The THOMAS World Wide Web system provides free access to legislative information including bills, resolutions, activity in congress, committee information, treaties, and other government resources. Enhancements in the types of legislative data available, as well as in search and display capabilities, are continually being updated.
The Library of Congress
101 Independence Avenue, SE
Washington, DC 20540
Tel: 202-707-5000
International Organization for Standardization (ISO)
This worldwide federation of national standards bodies from some 130 countries is a nongovernmental organization established in 1947. The mission of ISO is to promote the development of standardization and related activities in the world to facilitate the international exchange of goods and services and to develop cooperation in the spheres of intellectual, scientific, technological, and economic activity. ISO’s work results in international agreements that are published as international standards.
ISO Central Secretariat
International Organization for Standardization
1, Ch. de la Voie-Creuse
Case Postale 56
CH-1211 Genève 20
Switzerland
Tel: (+41)22-749-01-11
Fax: (+41)22-733-34-30
E-mail: [email protected]
Web: http://www.iso.ch