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Services for exporters

Services for exporters

We bring comprehensive services for exporters upon their entry into foreign markets. We offer a helping hand to entrepreneurs in expanding their business plans beyond the territory of the Slovak Republic, where it is important to find your way in several new areas and find suitable partners.

We would divide the information necessary for the entrepreneur's entry into the foreign market into a preparatory and executive phase.

Preparatory phase

Introduction to the legal environment and business practices 

When considering entering a foreign market, the entrepreneur shall take into account the risks associated with it. The quality of the business environment is often determined by the political system of a country and the legal regulation directly related to it.

An attribute for assessing the quality of a given business environment is the fact whether there is a bilateral or multilateral international agreement on the support and mutual protection of investments between the Slovak Republic and this country. An important indicator for a Slovak entrepreneur is also the fact whether the Slovak Republic has its embassy in the target country.

In theory, it usually applies, that countries with a higher degree of democracy and a modern rule of law provide a higher degree of protection for foreign investment, however, this is not unconditional. The usual business practices also have a significant effect on the above. 

As part of getting acquainted with the legal environment, we focus among other things, on the verification of the following:

  • The relationship of the state to the norms of private international law and, in general, the level of protection of the rule of law (relevant conflict of law rules in relation to the obligation to apply, or the choice of applicable law and jurisdiction in case of dispute between entrepreneurs);
  • Level of protection of property rights; or 
  • Protection of other individual rights of private persons (eg. before national courts);

Legal and financial review of the business partner 

Adverse situations such as insolvency of business partners are one of the common negative phenomena in the domestic business environment. It is even more important for an entrepreneur to check his business partner in a foreign country. It is true that a thorough inspection of a business partner will ultimately save the entrepreneur financial and other costs, respectively prevent a situation in which the entrepreneur does not get to his goods or money.

During the review, we will check all publicly available information about the foreign partner, primarily:

  • Corporate documents (information on the company's capital, ownership structure, persons in the company's bodies);
  • Information about the management of the business partner (e.g. financial statements);
  • Payment discipline (e.g. check-in the register of court decisions, revision of cash flow value);

Legal analysis of customs, tax, other regulations, and the transaction itself

The overall advantage and meaning of international transactions are also affected by the customs, tax, or foreign exchange system. In this context, it is about answering the question of what an entrepreneur can export to the destination country, at what price, and under what conditions.

Within the European Union, there is a customs union consisting of all European Union Member States, Monaco and Akrotiri and Dhekelia. Within the EU Customs Union, a customs union with Andorra, San Marino and Turkey has been set up separately. A significant advantage of the customs union is the fact that no customs duties are levied on trade between its Member States within its territory. The duty shall be paid in the first country of the customs union in which the goods enter the territory of the customs union.

When applying the customs procedure, the obligation to register an entity interested in supplying its goods in the territory of a given country is often applied. In the European Union, it is the Economic Operators' Registration and Identification System (EORI), which is used to identify economic operators when communicating with the customs authorities of the EU Member States, without these economic operators having to register in each Member State in which they carry on their business activities.

In connection with tax planning, it is necessary to check the tax system of the targeted country. The international tax regime is governed by default by multilateral double taxation treaties, which take precedence over the national regulations of all participating countries. In connection, with the payment of the incurred tax liability on the part of the entrepreneur, it is also necessary to verify the obligation to register for the tax in question, in the country of destination.

Different countries may approach the activities of foreign entrepreneurs in different ways, so last but not least, it is necessary to check whether the entrepreneur is authorized to import the goods in question into the destination country. One of the most common situations is the restriction of trading in a certain object of purchase and sale. This trade may either be completely prohibited or may be subject to a special exemption or special license.

The advantage of entering a foreign market is also influenced by the volume of bureaucratic burden that the entrepreneur will have to go through, either in connection with the actual entry into the market, but also with the performance of business activities, respectively by enforcing their claims. For this title, the analysis of the length of administrative or other court proceedings. 

In the above context, we perform the following legal analyzes (based on the relevant legislation):

  • Customs regime (e.g. registration in the country of destination, amount / applicability of duty for specific goods);
  • Tax regime (e.g. amount of tax, place of taxation, preparation of a comprehensive plan with the aim of legal optimization of the tax burden);
  • Foreign exchange regime (e.g. permitted type, type and quantity of imported goods);
  • Obligation law (e.g. creation, change, termination and securing of obligations, or the duration of their enforcement).

In connection, with the transaction, as regards the structured transaction for specific goods with specific characteristics, the trader may be obliged to undergo an inspection by the customer.

Executive phase

After the preparatory phase and the decision of the entrepreneur that he wants to deliver his goods to the destination foreign country, it is necessary to take active steps against the target foreign country and the foreign entrepreneur in the position of the customer in order to start the export. 

Registration, preparation of documentation and contractual security

Depending on the complexity, size, or other peculiarities of the transaction, the legally established obligation, respectively agreement of entrepreneurs, it is possible to proceed to the preparation and signing of documentation before obtaining the relevant registrations or permits. 

At this phase, we prepare, based on the nature of the relevant transaction, among other things the following documents:

  • letter of intent (LOI), memorandum of cooperation, respectively head of terms, the content of which is the definition of the basic purpose of trade and the definition of its basic conditions. The content of the document in question is an expression of the willingness of the parties to enter the trade under specified conditions.
  • framework agreement, which regulates mutual rights and obligations with final validity and binding force. The essentials regulated by the framework agreement should include, in particular, the goods taken over, the method of delivery, payment conditions, security of obligations, applicable law, and the competent court.

In preparing the contractual documentation, various internationally recognized terms, and conditions, such as INCOTERMS, can be used. The legal documentation can also be based on legal documents prepared by the United Nations Commission on International Commercial Law (UNCITRAL). The possibility of using these conditions means removing possible contradictions in the interpretation of the provisions of legal documents. 

Performance of the business activity

The last step in this process is the start of the export activity itself. However, legal relations do not end here, but on the contrary, they only begin. However, if the entrepreneur has consistently prepared for this business activity, it means a significant reduction in the risk of adverse situations.

As part of its business and entrepreneurial strategy, the exporter can also engage in public procurement, as the public sector awards a huge number of contracts to the business sector every year. The result of public procurement is usually the conclusion of a contract, while its nature depends on the very subject of the contract - goods, services, construction work, or a combination thereof.

Based on the subject of the contract, these can be supply, service or work contracts.