International Trade: Regulatory Compliance, Target Markets, and Terms of Sales

Running head: INTERNATIONAL TRADE
International trade
Name of the student
Name of the university
Author note

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Table of contents
Answer 1)...................................................................................................................................2
Answer 2)...................................................................................................................................5
Answer 3).................................................................................................................................11
Answer4)..................................................................................................................................14
Reference list and bibliography...............................................................................................17

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Introduction
The report states that the organization ABC Exports operates in the manufacturing
sector which provide high quality products in the countries of the Gulf Cooperation Council.
The report reviews the present international trade process related to the exports, proposing
new export markets and also suggests ways through which the company can trade efficiently.
Answer 1)
The Cooperation Council for the Arab States of the Gulf is also known by the Gulf
Cooperation Council comprises of all the Arab States of the Persian Gulf except Iraq. The
member states are Oman, United Arab Emirates, Bahrain, Kuwait and Saudi Arabia. As ABC
Exports have been exporting high quality goods to the countries of the Gulf Cooperation
Council, it needs to analyse the various regulatory and compliance environment in which
business operating in international trade should be complying (Van den Berg. and Lewer
2015) The term environmental compliance suggests confirming to the laws related to the
environment along with the regulations and standards which the site permits to operate. The
term regulatory compliance suggests that the goal of the organization should be aspiring in
order to achieve their efforts for making sure that they are aware of the relevant laws,
regulation and the policies. It is done to ensure that all the necessary requirements are met
without unnecessary duplication of the effort.
Regulatory and the compliance environment of business
Most of the business usually requires the permit of the state for operating. Protecting
the environment is a normal part in case of any business operation. The regulatory
compliance is always a part of the business plan and should be complying with the laws. The
Environmental Protection Agency and the state environmental agencies should be enforcing
the environmental regulations which will be applied to business. Compliance is also known

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as one of the most complex aspects of the international trade. All the countries have unique
set of laws and regulations that applies for international transactions which are conducted in
various industries and sectors of the economy.
 Understanding the classification of tariff and the harmonized system: The
Harmonized System is the international denomination which can be used for
categorization of products. The Harmonized System allows the countries for
classifying the traded goods for the purpose of customs. It comprises of the names and
the numbers of the traded products (Hassine and Harrathi 2017). The main purpose of
this is to make sure that the parties involved in a trade deal use the accurate definition
of goods which needs to be exchanged. A precise classification is the legal
responsibility for both exporters and importers. Any kind of mistake will be having a
huge effect on the incorrect duty rates and complex the import and export controls.
 The traders should be knowing the details of the Trade agreement and the
Rules of Origin: The free trade agreement is a kind of special alliance which is
present between two or more countries which removes any kind of trade
protectionism present between two or more countries. The state authorities also play
an important role for negotiating the trade agreements. If the particular country has a
free trade agreement with the target market or the sourcing market, the trader should
check the regulations which are specific to the agreement prior to the commitments
and arranging deals. Another significant factor which is considered while conducting
the international trade is the rules of origin. According to the World Trade
Organization, the rules of origin are the criteria which serves to specify the national
source of the product (Abidin, Bakar and Haseeb 2015). The rules of origin also help
to identify the measures of the trade policies related to the exchange of goods and
services such as anti-dumping duties, import duties and the safeguard measures.

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Understanding the various legal and the administrative requirements of the
agreements of the free trade is significant for the company involved in the
international trade.
 All the regional standards for the product usage need to be followed: The
imports and exporters should be complying with multiple regulations and standards
which are related to the exchange of the products.
Regulatory bodies of the international trade
The international trade law comprises of those rules and customs which is used for
handling the trade between the countries. Trade was usually regulated through the bilateral
barriers which was present between two nations. Although in the present situation, the
multinational treaties like the World Trade Organization and the General Agreements on
Tariffs and Trade are the principle regime for regulating the global trade (Jouini 2015). The
basic principles which the role of World Trade Organization follows are non-discrimination,
reciprocity, binding and enforceable commitments, transparency and the safety valves. The
North American Free Trade Agreement present between the United States, Mexico and
Canada, Association of South East Nations in southern Asia and the European Union
present between 27 independent states also comprises of the regulating bodies of the
international trade.
Regulations of trade
The rules which usually governs the international trade are quite complex in nature and
counterintuitive too. Complying with the regulations which generally governs the
international trade is a necessary component of the internal legal auditing programs for those

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kinds of business that are engaged in the import and the export trade. The basic inquires in
the customs includes the following:
 What methods are present to determine the proper classification of the
products which are imported?
 Will the system of recording imports comply with the requirements of the law
of customs?
 Is the imported merchandise of the company subject to requirements of visa or
the orders of the antidumping duty?
The unification of the regulations and procedures in the GCC member states is one of
the most significant objectives which needs to be achieved by the customs demonstration of
the GCC Member States. The customs law of the gulf countries had been adopted in the year
of 2000. The law is known as “The Common Customs Law for the Arab States of the Gulf”.
The unification of the laws and procedures related to the Customs in the Customs
Administration of the states of Gulf Cooperation Council is one of the main objectives that
these countries seek to achieve (Correa and Yusuf 2016). The adoption of the common
customs law will enhance the cooperation, present among the member states of the customs
filed. For exporting all the products to the Kingdom of Saudi Arabia, all the products requires
a certificate of conformity and must comply with the rules of the Saudi Arabian Standards
Organization. The SASO works for maintaining the safety of the consumers by adopting the
actual standards of the products and services. The Saudi Food and Drug Authority (SFDA) is
an independent body whose main objective is to ensure the safety of the food and drug for
human beings. One of the main objectives of SFDA which will observe the safety and
security of food and drug or both animals as well as humans. Another regulatory body which
governs the international trade is the Saudi customs. Saudi Arabia is also known to apply the