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As an ecommerce business, your potential customers are not limited to the UK. The Internet is a global platform, and if you are willing to ship goods overseas to a foreign country, you will likely conduct international trade with foreign markets. In addition to local language barriers, you must comply with local laws in different countries relevant to certain products your business sells. This article will unpack three legal considerations when selling to international markets.
What Kinds of Products Do You Sell?
When selling to international markets, you need to consider the kinds of products your business sells and whether certain restrictions or rules are in place. For example, some countries do not allow specific products and others require a specific licence if you wish to export your product to them.
Product types which need a licence include:
- food;
- animals;
- weapons;
- medicines;
- chemicals;
- artefacts; and
- antiques.
Each country will have different regulations relating to the types of products they will accept into their country. While you might not have issues selling your goods to a customer in one country, there may be additional regulatory hurdles when selling to another country. As an ecommerce business, it is your responsibility to ensure your business practices are legally compliant. By not understanding which rules apply, you risk landing in legal trouble. Likewise, legal issues may prevent you from trading in a particular country for some time until you obtain the necessary licence to export.
Are Your Terms and Conditions Appropriate?
Your business terms and conditions are an essential document that informs your customers of how your business operates and their rights in certain circumstances. It clarifies what your business is liable for and how your customers can make complaints.
If you have an existing set of terms and conditions, consider which laws currently apply to them. As a UK ecommerce business, you will likely choose English, Welsh or Scottish law to govern your terms and conditions. This means that if a sale dispute arises, the issue will go to a court in the relevant jurisdiction, and the law of the land will apply. Therefore, you must make both the jurisdiction and governing law clear in your terms and conditions.
A further legal consideration relating to your terms and conditions is that some terms and conditions have international recognition. Accordingly, you could include these in your current terms and conditions. For example, incoterms published by the International Chamber of Commerce refer to some of the sale parties’ obligations when trading. Other internationally recognised terms are those in the Vienna Convention on Contracts for the International Sale of Goods. Although these are not ones you will use as the UK is not yet bound by these, they are helpful to be aware of as you may see other internet businesses use them.
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Is Your Intellectual Property Protected?
When selling to international markets, you also need to protect your intellectual and branding overseas. While you might operate in the UK under a certain business name with no problem, the same might not apply to another country. For instance, another overseas business may use a similar name in a country you wish to trade in. If two businesses have a similar name and sell a similar class of products, this can confuse buyers. Further, if the other business has a registered trade mark, you might find yourself in a trade mark dispute and potentially have to change your trading name in that country.
To avoid these issues, you should conduct a trade mark search in the countries you wish to trade in. If your trade mark is available, you can consider taking advantage of the Madrid Protocol. This process allows you to register your trade mark in multiple national jurisdictions. Consequently, your brand image will have protection overseas.
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Key Takeaways
As an ecommerce business, selling to international markets will come with various legal and regulatory hurdles. A key consideration is what products your business sells and whether restrictions exist to export these to certain countries. Likewise, you may need to obtain relevant licences to sell these products. Additionally, you should review your terms and conditions to ensure your business can handle international sales and potential disputes. Finally, consider how to protect your intellectual property overseas, such as through the Madrid Protocol.
If you need help safeguarding your business to sell to international markets, our experienced ecommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page.
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