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Most consumer products ship without a specific license, but some products, destinations and buyers are restricted. Ask your freight forwarder or check with the U.S. Bureau of Industry and Security before your first shipment, and screen your buyer against government restricted-party lists.
Common options include payment in advance, a letter of credit and open account terms for established relationships. New buyers in a new market often start with payment in advance or a letter of credit. Choose terms with your bank and forwarder, and never ship on credit to someone you have not checked.
Exclusivity can motivate a distributor to invest in your brand, but it blocks other routes into that country. If you grant it, limit it by territory and time, tie it to minimum purchases and include a way to end it. Have an attorney who knows international contracts review the agreement.
A pro forma invoice is a preliminary invoice that states the goods, quantities, prices, terms and shipping details before the shipment. Foreign buyers use it to arrange payment, import permits or a letter of credit. Send it once price and terms are agreed and before you produce or ship.
A letter of credit is a bank's promise to pay the seller once the seller presents the documents it requires. It lowers non-payment risk for new relationships, but it is strict. A small mismatch in the documents can delay payment, so work with your bank and forwarder on the paperwork.
For a new buyer, prefer payment in advance or a letter of credit, then move to open terms only after a history of on-time payment. Wire transfers are common. Verify the company exists, check references and do not ship until the agreed payment condition is met.
Quoting in U.S. dollars keeps your risk low and your price list simple, and many importers accept it. Quoting in the buyer's currency can win trust but exposes you to exchange rate swings. If you do quote in another currency, build in a margin for movement and set a validity date on the quote.
Many commercial shipments require an Electronic Export Information filing through the Automated Export System, depending on the value, the destination and the product. Your forwarder normally files it on your behalf. Confirm the current rules with the U.S. Census Bureau or your forwarder.
Often yes, and it depends on the product. Food, supplements, cosmetics, electronics, toys and alcohol each have their own rules abroad, such as CE marking or local product registration. Ask the importer what is required before you ship, and do not assume that U.S. approval carries over.
Often yes. Many countries require labels in the local language, and buyers respond better to catalogs and line sheets in their language. Ask your importer which label elements are mandatory, and use a native-speaking reviewer so wording is correct.
Trademark rights are mostly country by country, so a U.S. registration does not cover other markets. Consider filing in the countries where you plan to sell, before you announce a distributor there. An attorney who handles international trademarks can advise on the order and cost.
Cover the territory, exclusivity, minimum purchases, price and payment terms, term length, termination, trademark use and which country's law applies. Weak agreements are hard to unwind overseas, so have an attorney experienced with international distribution review yours.
Compliance answers are general information, not legal advice, and rules vary by product and state.
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