Trade Compliance & Export Controls

Products manufactured in countries with trade agreements may qualify for reduced duty rates. For example, USMCA allows many goods made in the US, Canada, or Mexico to cross borders duty-free. However, rules of origin require minimum local content thresholds. Misrepresenting origin can result in severe penalties.

FTAs like USMCA, EU-Japan EPA, and CPTPP reduce or eliminate duties on qualifying goods between member countries. To benefit, products must meet rules of origin (minimum local content, specific manufacturing processes). You may need to provide certificates of origin to customs. Duty savings can be significant, sometimes reducing rates from 12-20% to zero.

A certificate of origin is a document declaring where a product was manufactured. It's required when claiming preferential duty rates under trade agreements, or when destination customs requires proof of origin. Issuing the wrong certificate or claiming false origin can result in fines and duty reassessment.

The Importer of Record (IOR) is the entity legally responsible for ensuring import compliance, managing paperwork, licences, and paying duties. In B2C DDP shipping, the seller often acts as IOR or works with a carrier/platform that manages IOR obligations. With Swap, you remain Merchant of Record while Swap handles compliance complexity.

Don't sell to sanctioned countries or individuals. The US (OFAC), EU, and UK maintain sanctions lists. Screen customer orders against these lists. Most cross-border platforms restrict shipping to sanctioned destinations automatically. Violations carry severe penalties including criminal prosecution.

Export controls restrict the sale of certain goods to specific countries for national security or policy reasons. Key regimes: US EAR (Export Administration Regulations), EU Dual-Use Regulation, ITAR (defence articles). Most consumer goods aren't affected, but electronics, software, and certain chemicals may require export licences. Check before entering new markets.