Email from the importer

Hi,

I realize this request might be a little unorthodox, but I am hoping to find some advice from an importer…especially since I will be in the market for a new one due to some recent issues that have taken place with a us importer I was working with.

I was hoping I could get your advice on something. I realize you can’t offer legal advice and I wouldn’t ask you to.

But as an obvious expert, I am sure you can offer your 2 cents. It would be REALLY appreciated.

I had worked with an importer to import toy balls from China. I had ordered 9 inch balls and he sent me samples.

He had explained to me that the purpose of the pre-production samples was so that there was no confusion with the product that I would ultimately receive. The samples I approve would be the product I receive.

As it turns out – the samples they sent me were larger than the size I was asking for but I did not know it. They sent me samples and told me that they were samples of a 9 inch ball. (I now know that they were 10 inches)

The order finally got here for my 10,000 ball order and they are not the same as the pre-production sample balls that I approved. They are smaller. They are the actual 9 inch balls that I ordered but I did not know what they would look like, because they sent me samples of a larger ball and represented them as the 9 inch ball that I would receive.

The balls I received were smaller than the ones I approved and the importer is telling me there is nothing he can do.

He said I ordered 9 inch balls and I got 9 inch balls.

My argument is that I did not know that this is what the 9 inch ball looked like because the samples they sent , I was told were 9 inch balls and they blew up bigger than 9 inches and I liked the way they look so I approved them based on that fact and the 10,000 balls I ultimately received are different.

They are the factory’s actual 9 inch balls but are different than the samples I approved. I am not trying to be the bad guy, but I thought the samples I got would be the product I received…. And that is what I was told. The Importer I worked with is not willing to do anything to get this fixed.

The main issues are as follows:

1. I want the product of the sample I approved – I liked the samples better.

2. I used the samples to take photos of the product for my website and promo material and now would have to change it all to match the size of the balls I received.

3. I have used the pre production samples to promote the business while waiting for the shipment to arrive.

Do I have any recourse? Have you ever experienced this?

Any advice you can offer would be greatly appreciated.

Thanks for your time in reading this email.

Best Regards,

Name Withheld

My response

Hi Name Withheld,

You’re not going to like my answer.

The best and most common way to avoid your situation is through a financing tool called a letter of credit. Essentially, the buyer finds an international bank and gives their money plus a fee to the bank along with a conditional contract. Once all the conditions on the contract have been met (goods received in good order per specifications, etc.) the bank releases the funds to the seller.

Since you didn’t mention anything about a letter of credit, I’m assuming you don’t have one. In that case your best recourse would be some sort of legal action, but that might cost more than the balls.

Does that make sense?

Keeton

Some important definitions

Irrevocable Letter of Credit
Letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee and which cannot be revoked without joint agreement of both the buyer and the seller.

Inspection Certificate
A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments.

Issuing Bank
Bank that opens a straight or negotiable letter of credit and assumes the obligation to pay the bank or beneficiary if the documents presented are in accordance with the terms of the letter of credit.

At a later date, BIS will publish the names of the VEUs for whom this
license code can be reported. Until this list is published, please do
not use this license code.

Appendix F of the Automated Export System Trade Interface Requirements
(AESTIR) has been updated to reflect the new License Code. To review
the update, please see:

http://www.customs.gov/xp/cgov/export/aes/tech_docs/aestir/june04_intro/appendices/

All AESPcLink users must update their AESDirect code tables to reflect
the update of the License Code. Users of AESDirect who file via the
website at www.aesdirect.gov will have their code tables updated via
the program automatically.

For further information or questions, contact the U.S Census Bureau
AES Branch at 1-800-549-0595, menu option 1 or at askaes@census.gov.

For more information regarding this final rule, please see the BIS
website at http://www.bis.doc.gov

Free Trade Agreements in Region Promote U.S. Bilateral Trade

For U.S. companies looking to increase their bottom line by making new sales abroad, there’s never been a better time to export. As more and more American companies discover the opportunities that lie beyond our borders, many are taking advantage of free trade agreements (FTAs) to reach new customers around the world.

Last year, U.S. exports to countries where an FTA was in effect surpassed $437 billion, or 42 percent of U.S. exports—and today, the U.S. has FTAs in force with 14 countries. One key region where U.S. businesses are expanding their international sales is North Africa and the Middle East, where total trade with the U.S. has nearly doubled since 2003 to more than $138 billion last year—and continues to prosper with help from FTAs with Israel, Morocco, Jordan and Bahrain. The advantages of doing businesses with FTA countries are numerous, and in the North Africa/Middle East, these countries offer a variety of sales opportunities for U.S firms selling everything from aircraft and motor vehicles and parts to medical equipment, machinery, information technology, energy, franchising, services, and more.

Now that we’ve provided a general overview of the region, let’s take a closer look at why you should consider doing business in Israel, Morocco, Jordan and Bahrain.

Israel

Israel is a growing and sophisticated market for U.S. goods and services. With the U.S.-Israel Free Trade Agreement, Israel serves as an important market in the region. Its high-tech, pro-American business community is familiar with U.S. business culture, and a multitude of U.S. firms are already doing business with Israel. A Memorandum of Cooperation (MOC), signed in January 2007 to promote the transfer of U.S. technology and an increased acceptance of American technical standards, is expected to result in additional U.S. exports to Israel. Israel’s growing industries include safety and security equipment, medical devices, software, telecommunications, and defense.

Morocco

Positioned as a regional center for business, Morocco is on the crossroads of North Africa, Europe, and the Middle East. U.S. firms looking to do business in Morocco can benefit greatly from the U.S.-Morocco Free Trade Agreement (FTA) as Morocco provides easy access to a market of 500 million consumers in the Mediterranean region. The FTA has also eliminated tariffs on 95 percent of current and industrial goods coming from the U.S. into Morocco. With 16 Regional Investment Centers, dedicated solely to assisting new business ventures, Morocco is steadily advancing internally toward more modernization and globalization. The FTA also provides a high level of intellectual property protection, consistent with standards set by U.S. law. Industry opportunities include telecommunications, IT, agriculture, electronics, tourism, and manufacturing. With this state-of-the-art protection, strategic location, internal improvements, and U.S.-Morocco FTA continues to create an excellent climate for U.S. trade and investment.

Jordan

Jordan’s economic reform and privatization efforts have resulted in a more open and business-friendly environment, and with its developing, knowledge-based economy, Jordan’s information technology and pharmaceutical sectors continue to flourish. With an annual growth rate of 7.5 percent over 2006, and a free trade agreement with the United States that has eliminated or reduced barriers to trade, Jordan offers excellent opportunities for U.S. exporters. Furthermore, Jordan boasts growing opportunities in the oil and gas, power generation, transportation, and transportation infrastructure. U.S. companies looking to tap the full potential of the Middle Eastern market can also benefit from Jordan’s strategic location as a springboard for expanding their export sales throughout the region.

Bahrain

The U.S.-Bahrain Free Trade Agreement has opened markets and increases opportunities for American workers, farmers, ranchers, and businesses. It opens Bahrain’s market for U.S. manufactured goods, agricultural products and services, and will also support economic reform and growth. Last year, bilateral trade between the U.S. and Bahrain exceeded USD 1.1 billion and U.S. exports have jumped 51 percent. Bahrain’s growing industries are aircraft and motor vehicles, machinery, pharmaceutical products, medical equipment, and much more. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country’s dependence on oil. With its positive commercial climate and incentives offered by the FTA, Bahrain becomes a growing prospect for U.S. businesses worldwide.