Running an international shipping business presents legal and regulatory challenges that could affect your operations and cause profit loss if you fail to meet them. Knowing these issues can help you avoid costly mistakes and remain compliant. Here are four key areas to think about:
Customs and tariffs
The U.S. Customs and Border Protection handles duties and tariffs. Your business must provide correct and complete paperwork to avoid delays and fines. The fines can be hefty, and delays in customs clearance can result in profit loss and damage to your company’s reputation.
State regulations
Besides federal rules, California has strict laws for ships. The California Air Resources Board (CARB) sets strict emission rules for all ships docked at California ports. The state also controls how ships manage their ballast water to stop invasive species.
Contract problems
Shipping contracts often involve multiple parties. Arguments can happen over terms, delays or damages. Clear contracts can reduce these risks. California uses the Uniform Commercial Code (UCC) to handle business deals and solve disputes.
Liability concerns
Federal laws, such as the Jones Act and the Longshore and Harbor Workers’ Compensation Act, cover accidents at sea. These laws spell out rights and duties in sea operations and ensure fair pay for injuries and damages.
Ensuring compliance
To stay on the right side of the law, consider talking to a lawyer who knows maritime law. They can help your business run smoothly and continue providing excellent shipping services to your customers while remaining compliant and avoiding regulatory penalties.