Reyansh Goswami

To limit a distributor from supplying competing products is something that many exporters are afraid to include in the distribution agreements – but they should. A contract that is well drafted stops problems arising in B2B markets.

You have to remember that your distributor is not being bothered while distributing your products. When you limit the distribution of competitors you increase the probability of success for both of you. Distribution of competing products, of course, may ruin a particular market.

If you want to limit the distribution of some competing goods you must negotiate with distributors to make sure they understand and will do their best to ensure the success of your product.

Of course, not necessarily, but very frequent. In most cases trade represents a sales of products, where the buyer and seller are located in two separate countries. But some exceptions exist, for example:

1. When goods are submitted for exhibition purposes, and then sent back to their owner.

2. On personal occasions, when goods are shipped because a person moves from one country to another.

3. When companies shift their stocks between different locations in different countries.

The United States-Mexico-Canada Agreement, or USMCA, is a trade agreement between the United States, Mexico and Canada. It is similar to the North American Free Trade Agreement (NAFTA), but some specific areas have been updated from the previous agreement. Those areas include updates to the automotive industry, energy, and digital trade or e-commerce.

As a rule, every consignment from abroad is liable to customs duty and VAT. As the recipient of a consignment from abroad, you pay the necessary VAT on the value of the goods and customs duty on the gross weight. Depending on the goods, other fees may be charged. These costs should nevertheless not be confused with the carriage charges paid by the sender when the consignment is posted.

OFSI aims to engage with applicants on the substance of a completed licence within four weeks. This does not mean a licence will necessarily be issued within four weeks. Each case is dealt with on a case-by-case basis. More complex cases may take longer to resolve and the Office of Financial Sanctions Implementation may need to come back to you for more information. Sometimes the Office may need to notify, or seek approval from the European Commission or the relevant United Nations Sanctions Committee before they can issue a licence. These requirements are set out in the relevant United Nations Security Council resolutions or EU regulations. These requirements will lengthen the processing time for such licence applications and may, in some cases, prevent a licence being issued.