2. Translate the following words and phrases and give definitions to them.

1. расходы и риски распределяются, 2) нематериальные активы, 3) практики, 4) внутренняя и международная торговля, 5) формировать правила Инкотермс, 6) укрепление и обновление правил, 7) выполнять обязательства по поставке, 8) выбирать правила.

III. Give the summary of the article. Text f. Incoterms and trade

1. Read the article and render it in Russian.

The contract should set out where the goods are being delivered. It should cover who is responsible for every stage of the journey, including customs clearance, and what insurance is required. It should also make it clear who pays for each different cost.

To avoid confusion, internationally agreed Incoterms should be used to spell out exactly what delivery terms are being agreed, such as:

where the goods will be delivered

who arranges transport

who is responsible for insuring the goods, and who pays for insurance

who handles customs procedures, and who pays any duties and taxes.

For example, an exporter might agree to deliver goods, at the exporter's expense, to a port in the customer's country. The customer might then take over responsibility, arranging and paying for customs clearance and delivery to their premises. The exporter might also be responsible for arranging insurance for the goods until they reach the port, but pass this cost on to the customer.

As well as including delivery details, the contract should cover payment. This should include what currency payment will be made in, how much will be paid, when payment is due and what payment method will be used.

Trade in services

With no physical delivery of the product, contracts in services cannot use Incoterms. Instead, the key issue tends to be defining exactly what services are being provided and to what standards. You should also be aware that you may be required to supply extra information to customers when providing services internationally. You are required to tell customers about how your services work, how you handle complaints, and how you apply principles of non-discrimination.

Import documentation

You may need an import licence to import goods into the UK. There are import controls on a range of different goods including firearms, food and textiles. Whether you need a licence may also depend on where the goods are from.

Goods from European Union (EU) countries can generally be brought into the country with minimal paperwork, though it's good practice to ask your supplier to send a copy of the invoice with the goods.

If you are importing from outside the country, you generally need an invoice and a copy of the transport documentation, such as a Bill of Lading, for customs clearance. For goods worth over £6,500, a valuation statement is also normally required.

Goods from some countries can be imported with a reduced or zero rate of import duty. If you want to claim this, you need documentary proof of origin showing that the goods were manufactured or produced in the preference country in accordance with preferential rules of origin.

You can declare the imports to customs using a Single Administrative Document (SAD), also known as form C88. You must give details of the goods using a 'commodity code' which determines what the rate of import duty is. Most importers use a freight forwarder or customs agent to handle customs clearance.

VAT

You pay VAT on imports from outside the EU to HM Revenue & Customs (HMRC) at the same rates as UK goods. If you are registered for VAT you can reclaim this VAT in the same way as for goods purchased within the UK. Instead of having a VAT invoice from your supplier, HMRC provides a form C79 showing the VAT paid. See our guide on excise and VAT in international trade.

If you buy goods from a supplier within the EU, you account for VAT on your VAT return. See our guide: international trade VAT: the basics. If your purchases from EU countries exceed an annual amount you must also complete the Intrastat supplementary declaration. You will need to complete a declaration if your purchases from EU member states total more than £600,000 of goods and/or your sales to EU member states will reach £250,000 in a year. The threshold is reviewed annually.

Export documentation

You may need an export licence to export goods. For example, there are controls on exports of chemicals and military technology. Licence requirements may also depend on which country you are exporting to.

Export declarations

If you are selling goods within the European Union (EU), most goods are in free circulation and can be freely moved from the UK to other EU countries without customs controls or charges. It's good practice to accompany shipments with a commercial invoice and a packing list if appropriate.

If you are selling to customers outside the EU, you need to declare your exports to HM Revenue & Customs (HMRC). This is generally done electronically, using the National Export System (NES). The declaration includes details of the classification of the goods being exported and which country they are going to. See our guide on export declarations and the National Export System. Alternatively, an authorised agent or freight forwarder can handle the customs declaration for you.

Export VAT

The services you provide to other businesses are charged VAT where your customer is based, not where your business is established. If you are supplying services to private customers, VAT is charged where the customer is based.

In most cases, you and your customers can use the current VAT reverse charge procedure to get your VAT back.

If you aren't sure if your customer is in business, ask them for a VAT number. If the customer is not VAT registered, then you can use other evidence, such as letters from their tax authority.

For VAT purposes, exports of goods are generally zero-rated. You need to keep copies of your VAT invoices and proof of export. This helps you prove that the goods left the country and that you do not have to pay any output VAT on them.

Review key concepts

1. Discuss the essence of incoterms.

2. Discuss the types of international trade documents.

3. Discuss revision of incoterms.

Discuss the following.

Using the vocabulary and the information from the articles above role play a dialogue between a customs consultant and a starting Belarusian businessman willing to make international business (furniture production and sell).

Discover how different entrepreneurial businesses can increase their market share through globalization.

Go to the Web site and research the latest survey of small business. Determine how many jobs are created and how much income is generated by small business. Write a 500-word report based on your findings. Discuss the importance of small international businesses to economies.