• Cheese, Milk, and Dairy Products -- Most dairy products are required to have special import licenses, and are subject to quotas administered by the Department of Agriculture's Foreign Agricultural Service. Milk and cream imports must also meet the requirements of the Food, Drug, and Cosmetic Act and the Import Milk Act. Milk and cream importers need permits from the Department of Health and Human Services, Food and Drug Administration, and the Department of Agriculture.
• Fruits, Vegetable, and Nuts -- Many agricultural commodities must meet detailed import requirements related to size, grade, quality, and maturity. Commodities must pass inspection before they are allowed into the United States. Inspection certificates are issued by the Food Safety and Quality Service of the Department of Agriculture. General inquiries about importing fruits, vegetables, and nuts can be directed to the Agriculture Marketing Service of the Department of Agriculture, Washington, D.C. 20250.
• Insects -- All insects that could be harmful to domestic crops or trees are forbidden entry into the United States unless they are for scientific research. Insects that could not be harmful to domestic crops can be imported only with special approval from the Animal and Plant Health Inspection Service of the Department of Agriculture.
• Livestock and Animals -- The Animal and Plant Health Inspection Service imposes a variety of inspection and quarantine requirements on most livestock and animal by-products. Permits for importation into the United States must be obtained before the item is shipped from its country of origin. Only certain ports of entry into the United States are set up to handle animal inspection and quarantine, so arrangement should be made well in advance to ensure that a desired point of entry can perform the appropriate inspection and quarantine. Exceptions to most of these inspection and quarantine requirements are available for imports from Canadian provinces and certain northern Mexican states.
• Meat and Meat Products -- Commercial shipments of meat and meat products are regulated by the Department of Agriculture and must be inspected by both the Animal and Plant Health Inspection Service of the Department and the Food Safety and Inspection Service of the Department before they are permitted entry into the United States. Noncommercial shipments of meat are regulated by the Federal Food, Drug, and Cosmetic Act, which is enforced by the Food and Drug Administration.
• Plant and Plant Products -- The Department of Agriculture regulates the importation of plants and plant products. Certain endangered species may require special inspection and approval or may be denied entry altogether.
• Poultry and Poultry Products -- Imports of poultry and poultry products, including eggs, are controlled by the Animal and Plant Health Inspection Service and the Food Safety and Quality Service of the Department of Agriculture. Permits, special markings, labeling, and in some cases foreign inspection certificates are required. Inquiries about other birds can be made to the Fish and Wildlife Service, Washington, D.C. 20240.
• Seeds -- Imports of seeds are governed by the Federal Seed Act of 1939 and regulations of the Agricultural Marketing Service of the Department of Agriculture. Arms, Ammunition, and Radioactive Materials
• Arms, Ammunitions, Explosives, and Instruments of War -- These imports are severely limited and can only be brought into the United States with express permission and license of the Bureau of Alcohol, Tobacco and Firearms of the Department of the Treasury. Even temporary importation or transit across the territory of the United States is prohibited without a license from the Office of Munitions Control, Department of State, Washington, D.C. 20520.
• Radioactive Materials -- Most radioactive materials are subject to regulation by the Nuclear Regulatory Commission. License to import these items into the United States can be granted by the Nuclear Regulatory Commission, Washington, D.C. 20520.

• Appliances -- Household appliances must meet energy efficiency standards set by the Department of Energy, Consumer Products Efficiency Branch before they can be brought into the country. In addition, the Federal Trade Commission, Division for Energy and Product Information sets standards for labeling household appliances. Importers intending to bring any common household appliance into the United States should contact both of these agencies for the requirements in effect at the desired date of importation.
• Flammable Fabrics -- Fabrics intended for wearing apparel or interior decoration must meet strict standards for non-flammability set by the United States Consumer Products Safety Commission. Some products that do not meet these standards can be brought into the country with special permission, provided they are intended for finishing or processing that will make them meet federal non-flammability standards.
• Radiation Producing Products -- Many radiation producing products, such as television sets, microwave ovens, sunlamps, and ultrasound equipment are subject to radiation performance standards set by the Radiation Control for Health and Safety Act of 1968. Any product with a performance standard set by the Act can only be imported into the United States with the permission of the Food and Drug Administration, National Center for Devices and Radiological Health, 1390 Picard Drive, Rockville, MD 20850.
• Radio Frequency Devices -- Radios, televisions, tape recorders, and other radio frequency emitting devices can only be imported with documentation from the Federal Communications Commission (FCC) that they are in conformity with, will soon be in conformity with, or are exempt from FCC requirements.

• Foods and Cosmetics -- Imports of most foods, beverages, and cosmetics are controlled by the Food and Drug Administration of the Department of Health and Human Services, Rockville, MD 20857. Imports of products regulated by the Food and Drug Administration are subject to inspection, and possible detention, at the BORDER. Prohibited products are any products that are defective, unsafe, filthy, produced under unsanitary conditions, or branded in such a way that they are false, misleading, or improperly labeled. Seafoods are subject to additional standards set by the National Marine Fisheries Service of the Department of Commerce, Washington, D.C. 20910.
• Biological Drugs -- Import of biological products for human use is regulated by the Public Health Service Act. Foreign producers intending to send their products to the United States must obtain licenses for both their facility and individual shipments from the Food and Drug Administration, Department of Health and Human Services, Rockville, MD 20857. Biological drugs for animal use are regulated by the Virus Serum Toxin Act, which is enforced by the Department of Agriculture. The Virus Serum Toxin Act requires special permits and labels before biological drugs for animal use may be imported into the United States.
• Drug Paraphernalia -- Imports are prohibited under the United States Code. Penalties for illegal imports of drug paraphernalia include both jail time and fines. Prohibited items include water pipes, roach clips, miniature spoons, bongs, and cocaine freebase kits.

• Gold and Silver -- Imports of gold and silver are subject to detailed quality and marking regulations established by the National Stamping Act and enforced by the Department of Justice, Washington, D.C. 20530.
• Monetary Instruments -- Anyone importing into the United States or receiving from overseas more than $10,000 in monetary instruments, including currency, travelers checks, money orders, and negotiable instruments or investment securities, must file a report of the transaction with the Customs Service at the point of entry.
• Postage Stamps -- It is illegal to import facsimiles of United States postage stamps, unless they are intended for philatelic, educational, historical, or newsworthy purposes. Further information on these regulations can be obtained by contacting the United States Secret Service of the Department of the Treasury, Washington, D.C. 20223.

• Pesticides -- Pesticides, fungicides, herbicides, and rodenticides are governed by the Insecticide, Fungicide, and Rodenticide Act of 1947 and the Federal Environment Pesticide Control Act of 1972. All imports of these substances must be registered with the Environmental Protection Agency's Office of Pesticides and Toxic Substances, Washington, D.C. The registration can be completed in advance of shipment. If the shipment is approved by the Agency, the Office of Pesticides and Toxic Substances provides the importer with a Notice of Arrival that must be presented to Customs officials in order for the items to be released from Customs custody.
• Hazardous Substances -- Several federal regulations govern imports of hazardous substances packaged for household use. Marking, labeling, and packaging regulations are enforced by the Department of Transportation, Office of Hazardous Materials Transportation, Washington, D.C. 20590.
• Toxic Substances -- The Toxic Substances Control Act regulates imports of chemical substances that pose an unreasonable risk of injury to health or the environment. Customs officers are required to impound all imports of toxic substances until the importer can show proof of compliance with or exemption from the requirements of the Toxic Substances Control Act.

• Textiles -- Textile fiber products imported into the United States are subject to identification and marking requirements set forth in the Textile Fiber Products Identification Act. More information on the Act and regulations promulgated under it can be obtained from the Federal Trade Commission, Washington, D.C. 20580.
• Wool Products -- Wool products are regulated by the Wool Products Labeling Act of 1939. The Act requires most wool imports to be clearly labeled to show the total wool weight and content of the product. Pamphlets describing the requirements of the Act can be obtained from the Federal Trade Commission, Washington, D.C. 20580.
• Fur Products -- Most fur imports are subject to regulation under the Fur Products Labeling Act. Detailed descriptions of the Act and its requirements can be obtained from the Federal Trade Commission, Washington, D.C. 20580.

Foreign Corrupt Practices Act

This chapter cannot summarize all the laws an American business might encounter doing business internationally. However, the United States Department of Commerce operates a Trade Information Center in Washington, D.C., that counsels American businesses wanting to do business overseas, which can be reached at 1-800-872-8723. The Department of Commerce also operates a National Trade Data Bank that collects information on trade with specific countries, and which can be reached at (202) 482-1986. The Department of Commerce can direct interested business persons to one of over a hundred different Country Desk Officers who specialize in advising businesses and individuals on a particular country's economy, trade policies, political situation, and United States government policies toward that country.

Some preparation must also be made for the handling of any disputes that may arise between the parties. A contract may specify that in the event of a grievance the parties will attempt arbitration before any lawsuit is filed. Contracts may also include a choice-of-forum or a choice-of-law clause. The former signifies a country in which a lawsuit will be brought in case of a dispute. The latter denotes a set of laws that are to be followed to settle a grievance, regardless of where the grievance occurs.

The term "letter of credit" is actually a shorthand way of referring to a complex set of agreements and documents whereby a bank assumes responsibility for paying the seller for the goods and for assuring that the goods were properly shipped. In a typical letter of credit transaction the buyer contracts with its bank to issue a letter of credit to the seller. The letter of credit is a promise from the bank to pay an amount to the seller if and only if the seller can produce adequate documentation (such as invoices, bills of lading, inspection certificates) proving that the goods were shipped properly and will be received as agreed upon. The buyer and its bank make a separate arrangement between them so the bank is reimbursed. In some transactions the seller's bank will also be involved in guaranteeing payment to the seller if the seller provides adequate documentation as described above.

Minnesota World Trade Association, P.O. Box 24614, Edina, MN 55424, (612) 929-5544.

Minnesota Trade Office (including the Export Finance Authority Division), 1000 Minnesota World Trade Center, 30 Seventh Street East, St. Paul, MN 55101, (612) 297-4222.

International Trade for the Nonspecialist (Paul H. Vishny, ed., American Law Institute -- American Bar Association Committee for Continuing Professional Education, Philadelphia, PA, 1993).

Eric Sletten, How to Succeed in Exporting and Doing Business Internationally (John Wiley & Sons, Inc., New York, NY, 1994).

Start Your Own Import/Export Business (JoAnn Padgett, ed., Pfeiffer & Company, San Diego, CA, 1994).

Kenneth D. Weiss, Building an Import Export Business (Wiley, New York, NY, 1991).

Importing into the United States (Prima Publishing, Rocklin, CA, 1992) (the official U.S. Customs Service Guide to Importing into the United States).