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Regulatory: Laying a solid foundation for overseas business with proper classification

Failure to classify imports or exports can result in fines or seizure of goods

The current economy pays little attention to traditional geographic boundaries, as evidenced by the rapid expansion of American companies doing business overseas. Undoubtedly, there is a wealth of opportunity in the global marketplace for companies of all sizes to increase their revenue by importing and exporting goods. Before expanding into international markets, however, a company must know how U.S. laws and regulations classify those goods

Proper classification is the bedrock principle for importing and exporting merchandise, because it impacts almost all aspects of an international transaction. Classification determines the bottom line regarding the amount of duties, taxes and fees a company will owe when it imports goods into the U.S. Conversely, it also determines whether a company must obtain a license before exporting products.

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Eric Wilson

Eric J. Wilson is a shareholder in Godfrey & Kahn's Litigation Department and a member of the White Collar Defense and Investigations Practice Group. He...

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Contributing Author

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Wendy Arends

Wendy Arends is an associate in the Godfrey & Kahn's Madison office, where she advises businesses, organizations and trade associations regarding their interactions with local,...

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