Legal Regulations to Consider When Selling to International Markets: E-Commerce from Turkey to the World
With the spread of e-commerce in recent years, businesses have the chance to reach millions of new customers worldwide. Today, it is possible to receive orders from anywhere from Argentina to Zimbabwe. However, there is also the "challenging" side of the business as well as the good side: Legal regulations! Yes, when selling in different countries, you step into each of their own little legal kingdoms, and some of these kingdoms have "built castles" regarding taxes, while others have "built customs walls." Let's explore this legal labyrinth together!
- Customs and Tax Regulations: Each country has its own tax and customs policy. When doing international trade, it is necessary to learn whether the products are subject to customs in the target country and to have information about the taxes to be paid in that country. Things that businesses should pay attention to at this stage:
- Taxes such as VAT (Value Added Tax) and import tax vary depending on the target market.
- The customs classification and codes of the product affect the taxation rates.
- Customs declarations and other documents must be prepared accurately and completely.
- Intellectual Property Rights: When doing international business, businesses must protect the intellectual property rights of their brands and products. They must also comply with the intellectual property laws in their target markets.
- Trademarks, patents and copyrights must be registered in each country.
- It is important for businesses to proactively seek legal advice against intellectual property infringements.
- Consumer Protection Laws: When selling to consumers in international markets, it is mandatory to comply with each country's consumer protection laws. These laws cover many areas, from sales contracts to product returns. Things to consider:
- Return and cancellation policies: In most countries, consumers are given the right to return within certain periods.
- Consumer rights: Misrepresentation of the product, misleading advertising, etc. are subject to criminal penalties in many countries.
- Online privacy laws: Regulations such as the EU's GDPR in particular impose strict rules on how customers' personal data is collected and used.
- Electronic Commerce Regulations: For businesses that sell online, electronic commerce laws can vary from country to country. Compliance with e-commerce laws is especially important in large markets like the European Union and the United States.
- When preparing user agreements and privacy policies, legal regulations in the country should be followed.
- Security should be prioritized in online payment systems and international payment systems (e.g. PCI DSS) should be complied with.
- Import and Export Licenses: Some products may require special permits or licenses to import or export. It is important to obtain these licenses and comply with the laws of the country in order to legally trade these products. Things to consider:
- Health and safety regulations: Exports of food, pharmaceuticals and electronics in particular are subject to certain health and safety standards.
- Environmental regulations: In accordance with the environmental protection laws of the target market, some products may be required to meet certain environmental standards.
- Local Labor Laws and Trade Regulations: Complying with local trade and labor laws is essential when working in international markets, not only with consumers but also with local business partners and suppliers. Businesses must comply with the labor laws, trade agreements, and labor regulations of the country in which they do business.
- Work permits and visa regulations: When hiring international staff, attention should be paid to the country’s work permits and immigration regulations.
- Resolving commercial disputes: There should be clear provisions regarding which country’s courts have jurisdiction in the event of a breach of international agreements.
- Payment and Currency Transactions: When selling in different countries, local regulations regarding payment methods and currency exchanges should be taken into consideration. Currency rates, tax policies and banking regulations can have a direct impact on the financial situation of the business.
- Money transfer regulations: Each country may have different regulations regarding payment methods and exchange rates.
- Double taxation agreements: It is important to review double taxation agreements to avoid paying taxes in both the exporting country and the country where the business is located when selling internationally.
When entering international markets, understanding the legal regulations correctly and complying with these regulations is one of the cornerstones of creating a successful global trade strategy. Businesses should act according to the legal requirements of each country, receive professional legal advice and fully fulfill all the procedures required by global trade. Otherwise, you may get lost in legal processes and suddenly find yourself in the middle of a bureaucratic labyrinth while on a “world tour”.
In order to gain a competitive advantage in international markets, complying with legal regulations and managing these processes correctly is of great importance for the sustainability of the business in the long term. Saying “a little flexibility” in legal matters can sometimes actually mean getting you into trouble. In other words, while complying with legal regulations ensures that your business survives in the international arena, otherwise it can turn into finding the wrong direction instead of being a “North Star”.
If you want to be successful in international trade, do not see legal regulations as a “cookie”; evaluate them as a “big diamond”. Because if you manage those diamonds correctly, you can both gain a strong place in the market and become the shining star of the trade world!
