What is a Commercial Transaction when importing?
Released On 7th Nov 2018
As described in one of our previous blogs, importing IT technology into international countries requires import licences, and an Importer of Record; it is complicated and if done incorrectly can result in fines and delays. This process often has another layer of complexity, one we are seeing more and more: the commercial transaction.
What is a commercial transaction?
In the world of international trade compliance, a commercial transaction describes the purchase and payment of goods between two different businesses, but in different countries. This sort of transaction happens hundreds of times in all inductries around the world, however, this type of transaction is made complicated when a third party importer of record is used to import the goods. This is because in some countries, banks stipulate that on the international transfer of the payment the importer of record on the ‘bill of entry’ must be the consignee / end user making the payment and cannot be a third party – see our blog to understand the reasons why the end user would not want to be the importer of record.
As an example, if an end user in Brazil is buying goods from a reseller in the USA, the Nota Fiscal Electronica imposed by the Brazilian tax authority states that the importer must be the end user in order to get payment approved and transferred, there is no way around this, and the bill of entry cannot be amended after the goods are imported. A good Importer or Record solutions provider will ensure that at the point of enquiry for an import all parties are aware of what each entity’s responsibilities are and whether a commercial transaction is possible.
How can Mouse & Bear Solutions help?
Mouse & Bear Solutions are highly experienced and knowledgeable about international trade compliance, offering both importer of record and exporter of record services and work on a daily basis with commerical transactions. We are able to advise what possibilities exist when importing into a complex countries. We pride ourselves on our import solutions and deep knowledge of transactions where the buyer and seller are in different countries.
To benefit from our flexible services please get in touch.