1. UK Legislation
   Conversations discussing technical assistance are only controlled for military list items when reading out the contents of a controlled document or if in connection with weapons of mass destruction. Therefore. the intangible transfer of technology to the German national in the UK (and the US nationals in the USA) is not subject to UK regulation and therefore a UK export licence is not required providing the teleconference does not include reading out the contents of a controlled document.
   
   
2. US legislation
   Transfer of technology by any means is controlled by the US legislation. Therefore this telephone conversation to discuss the technical specification of a US item does require a US export licence.
   
   The good news is that, a licence is in place for the export to the UK but this excludes the verbal transfer of technical information to your engineer from Germany.
   
   You must ask your German engineer to leave the room whilst the teleconference tales place.

1. I would expect payment terms to be Letter of Credit for Pakistan. My first suggestion would be to check the Customer out, there’s no point doing any business unless you’ll get paid.
   
   
2. Heat Exchanger appears in the index of the UK Control List. Therefore, you need to check the specification of these items against the controls to see if they require an export licence. If you need help, the DTI offer a rating service.
   
   
3. Even if the specification of your items is not covered by the regulations, you also need to consider what the end-use will be. India and Pakistan are an area of concern. You may remember from the news that, they have been carrying out missile tests.
   
   
4. Because these items appear on the control list and are destined for Pakistan, there is a good chance that Customs will detain the consignment. For all of your exports, I would have the specification and end-user declaration available.
   
   
5. The UK legislation controls nuclear/missile activity to India and Pakistan but, since you are owned by a US Company, you are also subject to the US regulations. The US restrict all activity with both India and Pakistan. The US publishes lists of Entity/Denied Parties showing which companies US companies can not deal with. For all other activity, you should consult your US legal department.

1. The C130 is a US military plane and requires a UK export licence and a US re-export licence. Military licences are ‘sovereign issues’ and each country has their own regulations. Military goods can not move freely through out the EU.
   
   
2. Also, I have detailed knowledge of the C130 and, I know that Germany do not operate this aircraft.
   
   
3. You will need an end-user certificate to support a UK export licence application. Check this carefully since your buyer is not the end-user. This could be a genuine purchase for re-sale but, it could also be for diversion to a prohibited country. For this reason, it is imperative that you know who your customers are and who your potential customers are.

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1. FOB is an INCOTERM-Internationally recognised trading term. These terms detail who pays for what, who is responsible for insurance, documentation etc. Copies available from International Chamber of Commerce for about £35.
2. FOB is an old sea freight term and is generally misused. It means that, the price includes all documentation and charges up to the goods going over the ship’s rail. At this point, the goods pass from the seller to the buyer i.e. the goods are delivered and the responsibility of the buyer. So, if the case containing your goods falls from the crane and lands in the sea – the seller has not delivered them and any loss is theirs. If the case falls onto the deck of the ship, the goods have been delivered to the buyer and any loss is theirs. In practical terms this means that, the buyer has to pay for the goods and claim on the cargo insurance (if there is any). Good reason to take out insurance. All costs from this point are then payable by the buyer i.e. sea freight to the UK, unloading, handling, storage, haulage, import duty and taxes.
3. To calculate the true cost, you need to obtain a packing specification. Freight, unloading, storage and haulage charges are based on the weight or cubic measurement of a consignment whichever is the greater. Import duty is based on the CIF Value i.e. Cost (FOB value), Freight and Insurance. The duty rate is based on a customs tariff depending on the products i.e. aluminium 7604 @ 7.6% Customs offer a classification service or you could contact a Freight Forwarder.
4. One final consideration, the Customs Tariff Heading may need an import licence – check before authorising shipment as these are not always granted. Again Customs or a good Freight Forwarder could advise.

We are buying product from overseas for resale. Export is 80% of our business. Any suggestions?

If you are importing dutiable items you can avoid, delay or reclaim payments in several ways e.g.

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