Shipping internationally is a complex process with many moving parts. Any trader that intends to get involved in such activities must make himself/herself familiar with various concepts in order to maintain compliance and keep controls predictable. In this article we explore 2 such critical concepts.

HS codes

The HS code assigned to a product is the way Customs authorities will identify what the product is. Effectively, it is equivalent to the product description. This information is entered into every single Customs entry for inbound and outbound shipments.

The Harmonised System (HS) of codes for the categorization of goods is globally aligned to the 6-digit level (for example – 1234.56). In ASEAN, the HS code of goods is aligned to the 8-digit level (for example -1243.56.78).  The ASEAN HTS book would be aligned to the US HTS book at the first 6 digits.

HS codes have a minimum of six digits. WCO’s HS code systems divide commodities into 5000 groups. These are further split into 99 chapters. These 5000 groups also span 21 sections. The whole tariff book is loosely arranged in a logical structure. HS classification rules published by the WCO, allow countries to implement the use of HS code systems in a uniform way.

Many Customs and other government agencies use HS codes for various purposes. It is utilized to monitor, review, and facilitate control over regulated commodities, tariffs, country of origin, trade policies, transport statistics, quota controls, cost tracking, freight statistics, and business analysis.

Unfortunately, traders cannot simply apply common sense to the text of HS code systems and guess at HS classifications. HS classification involves the use of 6 General Rules that must be completed in consecutive order. These rules are published by the World Customs Organization or WCO. When attempting to assign a HS code to a commodity, traders may sometimes find it difficult to do it, as the classification rules are difficult to use. The problem is made more complex due to differences in interpretation of tariff book text. Improper usage of the HS code could result in wrong tariffs being applied by Customs, which can increase the cost of imports to the customer exponentially. When it doubt it makes sense to reach out to Customs or to seek the help of an experience professional.

International Commercial Terms

The Incoterms can be said to be the world’s point of reference that defines responsibilities of contracted trade for the sale of goods across borders. It doesn’t matter if you’re preparing some freight for shipment and are in the process of labelling and packaging or getting ready, providing the relevant certificates at the port of origin or filling out your purchase order, the Incoterms rules have been created to advise you. The Incoterms rules offer general guidance to traders involved in the import and export of goods.

Here are some interesting facts about the various Incoterms:

INCOTERMS 2020

Free On Board (FOB): This price is often used in FTA evaluations.

Free Carrier (FCA): Delivery point must be clearly defined when using this Incoterm as it can either be at the warehouse or a secondary agreed place.

FAS (Free Alongside Ship): This term is really only useful for bulk cargo shipped on chartered vessels.

EXW (Ex Works): This term puts the highest responsibility on the buyer.

DDP (Delivered Duty Paid): This term put the highest responsibility on the buyer.

DAP (Delivered At Place): A good term to use if the buyer is going to act as importer of record, but the seller has to arrange door step delivery.

DPU (Delivered At Place Unloaded): This is a new term introduced in the 2020 version of the Incoterms.

CPT (Carriage Paid To): Under this term the seller has to deliver goods to a carrier or a nominated person.

CFR (Cost and Freight): CFR or Cost and Freight means that the seller is responsible for delivering suitably packed goods, clearing them for export, safely loading them on the ship at the agreed shipping port, and pre-paying the freight charges mention in the contract.

CIP (Carriage and Insurance Paid To): Under the 2020 version, the seller must get the highest insurance level in the Institute Cargo Clauses (A) or (Air).

CIF (Cost, Insurance, and Freight):

CIF Incoterms 2020 states that the seller delivers goods on board or obtain the goods already so delivered. This term is important, because it is often used in many countries as the basis for Customs evaluation.

All the concepts based on which the pyramid scheme is working seem too simple and usually, it is represented in front of investors in a disguised manner. Therefore, it is better to stay aware of all its working elements and how does it exactly work.

Let us take a peek at the working of this Pyramid Scheme and learn more here.

How does the scheme work?

As we can identify from the name of the scheme that it should be in a pyramid structure and works from top to bottom hierarchically. It starts from a person who is at the peak of the pyramid and he is the only recruiter of the pyramid who needs to add people. An investor needs to convince a person to invest by paying certain sum of the money.

An upfront amount of money is available for the real recruiter and to recover the same payment, the recruited person needs to hire or add more people so he or she can get their share in the same manner. The upfront payment will be divided among other people of the pyramid scheme at uppermost levels.

If the recruiter has immense convincing power, then they can easily hire some people and get a significant amount of profit from the same. A small investment will be highly beneficial for them to get some desired revenue level, as they want to earn.

Each of the recruiting members will get a small share from it and also, the recruited person will get a portion of investment when they recruit a person, it is known as initial payment.

The process will get continued till the time it needs no support anymore. At such a moment, the people at the apex of the scheme will start earning a huge profit amount but the others at the base will begin suffering from huge loss. People are also making money from postcards.

The Bottom Line

At the end of the Pyramid scheme, we found that there is a catch of no longevity. The scheme works for a certain period and it will stay for long if the people involved in the scheme are highly convincing and can control their team members effectively.

Usually, the scheme is not a thing that can be wealthy. Thus, it is a way to earn profits in a short time. That is why it is not a long-term earning methodology and works for a short period only.

If you’re someone looking to business setup in the UAE, then these are a few things that you need to know. Carefully read every piece of information provided below to get better clarity.

• Evaluate all the different types of company structure before setting up a business, i.e, Mainland, Offshore, and Free zone. All these structures have their advantages and limitations. Carefully examine the structure that suits your needs.
• The most common form of company in UAE is a Limited Liability Company (LLP). To have this setup you require a local sponsor who is a UAE resident. He will have a minimum of 51% share in your company while providing you a 100% power over the company’s management. Therefore, look for a reliable local sponsor.
• There are three types of trade licenses in the UAE, namely, Professional, Commercial, and Industrial. Each license has its documentation process and license fees. Carefully choose the one which suits your business type.
• Setting a company in Freezone has a lot of advantages: speedy startup, 100% ownership, and duty-free custom duty. But it has no other advantages of the mainland and offshore setup. So decide which type of business you want to set up and select your zone accordingly.
• Get a permit to start a business and live in UAE. This includes investor visas and business visas. Get through the documentation process carefully.
• The business registration process is easy in UAE, but it still requires expert knowledge and guidance. Therefore as a foreign investor, do not try getting the registration work done on your own. Always hire a professional who can help you with it.
• Do not start a business in the UAE if you do not have enough funds. Raising finance for setting up a business is usually difficult in the UAE. Therefore, wait until you have enough funds.

The information provided above is of immense importance for anyone who wishes to set up their business in the UAE. Go through the points carefully and analyze each step before you move ahead with your business plans.

These days, it has become quite commonplace to run a business online. However, there are many ways to conduct an online business.  This is one of the reasons as to why you need to google my business because of the tricks and strategies in running an online work. Read the rest of the article to know more details about the same and be updated with the relevant details.

 More details

Google my business or GMB is a very useful resource when you talk of enhancing your business prominence online. See, there are many types of online businesses and it becomes difficult for one to gain prominent web attention to attract clients. There are many strategies and gimmicks to promote the businesses and this resource provides top tips on the same. There are numerous benefits of google my business which are provided here in details. The first and foremost advantage is that it provides many types of information very accurately and correctly which are posted by the business owner. So, in order to get the right audience, you will have to provide each and every detailed bit of information about your business. The reviews or client feedbacks can help you in this competitive consumer market. Go through each and every review and respond to both positive as well as negative feedbacks. Many clients rely on the reviews and this is the you should respond to each feedback.

Other details

The insights section provides a lot of graph and data about your business lists. You can view the clicks which you have received on the specific parts of this platform. So, it can be justifiably said that this is a very useful tool to have. The comparison of the market rating of your business can be done in the google my business app. There are many trends and strategies which provide your visibility and ranking on the google platform. It can be very helpful in the modern business as the concept of remote working is becoming more common by the day. So, having a well organized business can be of the best kinds of advantages in this pandemic age.   Knowing about the google app is one of the best kinds of things in this modern age. Having well and organized layout can be a gateway to a larger audience margin and enhancing more profits here.

The hiring process is complicated, and it can be difficult to find the perfect candidate to fill a position. This infographic identifies the mistakes that are made that hurt the hiring process, to steer the focus towards obtaining a fitting candidate.