International Trade Law and Ethics INTERNATIONAL EUROPEAN UNIVERSITY

Topics: p Understanding the terminologies; p Basic understanding on International Business Transaction; p International

UNDERSTANDING THE TERMINOLOGIES p International Economic covers economic activities and relations done by government

INTERNATIONAL TRADE INTERNATIONAL BUSINESS INTERNATIONAL ECONOMIC Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak

Regulations on International Economic p Governmental regulations of economic matters; p International Organizations regulations

Regulations on International Business p p p p Regulations on on Investment Intellectual Properties

Regulations on International Trade PUBLIC SECTORS p the WTO Rules GATT, GATS, TRIPs, and

Regulations on International Trade PRIVATE SECTOR p Legal relationships between parties who sell and

BASIC UNDERSTANDING ON INTERNATIONAL BUSINESS Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta

TOPICS DEFINITION p. ACTORS p. FORMS p LEGAL COMPLEXITIES p Hak Cipta © 2009

DEFINITION INTERNATIONAL BUSINESS TRANSACTION INTERNATIONAL >< NATIONAL, DOMESTIC, WITHIN TERRITORY CROSS BORDER; CROSS BOUNDARY

BUSINESS p p p >< CHARITY, VOLUNTARY, SOCIAL, NON-COMMERCIAL TRANSACTION PROFIT ORIENTATION: p FINANCIAL

DISCUSSION p applying non-financial orientation now to gain financial profit later? p applying financial

TRANSACT ION p p LEGAL DEALS THAT HAVE TO BE PERFORMED LEGALLY p MEET

ACTORS INTERNATIONAL LAW SCHEME: p Subject of International Law an entity with international personality

NATIONAL LAW SCHEME p ORANG NATURAL PERSON p NATURLIJK PERSOON p p BADAN HUKUM

ACTORS OF IBT PERSON [SUBYEK HUKUM] HUKUM PUBLIK HUKUM PRIVAT STATE ORANG BADAN HUKUM

PATTERN OF TRANSACTION p G RELATION G INTERNATIONAL p P G NON F I

FORM OF TRANSACTION p MOVEMENT OF CAPITAL § MOVEMENT p MOVEMENT OF RIGHT OF

FORMS OF TRANSACTION p MOVEMENT OF COMMODITIES [GOODS & SERVICES] p TRADING p LEASING

LEGAL COMPLEXITIES p GOVERNING LAW p CHOICE OF FORUM p CURRENCY p FINANCE p

GOVERNING LAW DOMESTIC KONTRAK p HUKUM POSITIF p HUKUM NASIONAL INTERNASIONAL KONTRAK p HUKUM

CURRENCY DOMESTIC p NATIONAL CURRENCY PREFERABLE p NO RISK ON EXCHANGE FLUCTUATION INTERNATIONAL p

FINANCE: SOURCE OF FUND BESARNYA NILAI TRANSAKSI DOMESTIK ATAU INTERNASIONAL p SELF-FUNDING p LOAN

FINANCE: METHOD OF PAYMENT DOMESTIC p CASH & CARRY IN n n CONVENTIONAL WAY

MEKANISME L/C BANK PENJUAL BANK PEMBELI KORESPONDEN BANK Pembayaran Bill of Lading + Docs

TRANSPORTING COMMODITIES DEPEND ON THE DISTANCE p p RELATIFELY SHORT & REACHABLE DISTANCE n

INSURANCE THE CLASSIFICATION ON HIGH OR LOW RISKS DEPEND ON: p PREVIOUS EXPERIENCE IN

RISKS TO PROTECT HILANG KESELURUHAN KUANTITAS MUSNAH KUALITAS MAL FUNGSI / OUT OF ORDER

CAUSE OF RISKS FORCE MAJEUR HUMAN FACTOR EXTERNAL INTERNAL refuse to perform FAIL TO

L A N G U A G E DOMESTIC p p NATIONAL LANGUAGE OFFICIAL

CULTURE p Consider the variety of culture p Respect and understanding the differences; different

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International Trade Law and Ethics INTERNATIONAL EUROPEAN UNIVERSITY Master of Business Administration Program Magister Management Program Sumenep - 2007 Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang.

Topics: p Understanding the terminologies; p Basic understanding on International Business Transaction; p International Regulations on Export Import; p Basic Understanding on the World Trade Organization; p International Business Ethics. Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 2

UNDERSTANDING THE TERMINOLOGIES p International Economic covers economic activities and relations done by government and other related actors in public or private sectors within macro or micro scopes; p International Business covers more specific aspect of International Economic area. It deals with all financial profit oriented transactions; p International Trade covers more specific aspect of International Business. One form of International Businesses is trade/commerce/purchase and sale. International Trade deals specifically with transactions and regulations concerning trade. Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 3

Regulations on International Economic p Governmental regulations of economic matters; p International Organizations regulations of economic matters; p Regulations on: n International Finance and Monetary; n Investment; n Communications; n Transport; n Natural Resources; n Nuclear Energy. Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 5

Regulations on International Business p p p p Regulations on on Investment Intellectual Properties Trade of Goods Trade of Services Regulations enacted by Government Regulations enacted by International Organizations Regulations enacted by Association of (certain) Professions Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 6

Regulations on International Trade PUBLIC SECTORS p the WTO Rules GATT, GATS, TRIPs, and TRIMs; p Bilateral Trade Agreements p Plurilateral Trade Agreements AFTA, APEC, Trans. Pacific Strategic Economic Partnership (P 4) between Chile, New Zealand, Singapore, Brunei; NAFTA, CAFTA; p Multilateral Trade Agreements the 1973 International Convention on the Simplification and Harmonization of Custom Procedures [the Kyoto Convention]; The 1983 International Convention on the Harmonized Commodities Description and Coding System [the Brussels Convention]. p p Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 7

Regulations on International Trade PRIVATE SECTOR p Legal relationships between parties who sell and buy goods from each other; p Legal relationship with persons willing to carry the goods from one place to another; p Arrangements with insurers to protect the goods in the event of loss and damage; p Financing and payment agreement with banks of financial institutions. Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 8

DEFINITION INTERNATIONAL BUSINESS TRANSACTION INTERNATIONAL >< NATIONAL, DOMESTIC, WITHIN TERRITORY CROSS BORDER; CROSS BOUNDARY OUTSIDE OF NATIONAL TERRITORY THE OUTMOST ISSUE IS “LEGAL COMPLEXITIES” RAISED BECAUSE OF INTERNATIONAL COVERAGE OF THE TRANSACTION Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 11

BUSINESS p p p >< CHARITY, VOLUNTARY, SOCIAL, NON-COMMERCIAL TRANSACTION PROFIT ORIENTATION: p FINANCIAL SIMPLY TO MAKE MONEY p NON-FINANCIAL / IMMATERIIL REPUTATION PREVELEDGE NETWORK MARKET SHARE TRUST ON BROADER SECTORS EX. : SOCIAL, CULTURE POLITIC, SECURITY & DEFENSE, ETC. Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 12

DISCUSSION p applying non-financial orientation now to gain financial profit later? p applying financial orientation now to gain non-financial profit later? p applying financial as well as non-financial orientation in a single transaction? KEYS TO ANALYZE p short & present spot >< long scene & the whole picture of transaction p strategy of transaction >< basic, origin, main purpose of transaction p strictly single application >< mixture on purposes achievement: success >< failure starting point >< end result p p Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 13

TRANSACT ION p p LEGAL DEALS THAT HAVE TO BE PERFORMED LEGALLY p MEET FORMAL AND MATERIAL REQUIREMENTS p THEREFORE, IT IS LEGALLY BINDING AND CREATES LEGAL CONSEQUENCES DEALS PERFORMED p OUTSIDE OF THE LAW p NOT IN LINE WITH THE LAW p CONTRADICT TO THE LAW ILLEGAL TRANSACTION Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 14

ACTORS INTERNATIONAL LAW SCHEME: p Subject of International Law an entity with international personality “Capable of possessing international rights & duties and has capacity to maintain Its rights by bringing international claims” [Reparations for Injuries Suffered in the Service of the United Nations, International Court of Justice Report 1949, p. 174] STATE § International Organization § Individual § Other Entities Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta [Tahta Suci Vatikan, ICRC, Belligerent] dilindungi Undang-Undang. § 15

NATIONAL LAW SCHEME p ORANG NATURAL PERSON p NATURLIJK PERSOON p p BADAN HUKUM LEGAL PERSON p RECHTS PERSOON p Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 16

ACTORS OF IBT PERSON [SUBYEK HUKUM] HUKUM PUBLIK HUKUM PRIVAT STATE ORANG BADAN HUKUM State Trading Enterprise GOVERNMENT Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. PRIVATE 17

PATTERN OF TRANSACTION p G RELATION G INTERNATIONAL p P G NON F I N A N C I A L p G P FINANCIAL p P BUSINESS P INTERNATIONAL Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 18

FORMS OF TRANSACTION p MOVEMENT OF COMMODITIES [GOODS & SERVICES] p TRADING p LEASING p MOVEMENT OF RIGHTS p LICENCING p TRANSFER OF TECHNOLOGY p TEACHING ASSISTANCE p FRANCHISE p IPR LICENSE p MOVEMENT OF CAPITAL p DIRECT INVESTMENT p FOREIGN DIRECT INVESTMENT p JOINT VENTURE Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 20

LEGAL COMPLEXITIES p GOVERNING LAW p CHOICE OF FORUM p CURRENCY p FINANCE p SOURCE OF FUND p METHOD OF PAYMENT p TRANSPORTING COMMODITIES p INSURANCE p LANGUAGE Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 21

GOVERNING LAW DOMESTIC KONTRAK p HUKUM POSITIF p HUKUM NASIONAL INTERNASIONAL KONTRAK p HUKUM NASIONAL CHOICE OF LAW CHOICE OF FORUM p HUKUM INTERNASIONAL p Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 22

CURRENCY DOMESTIC p NATIONAL CURRENCY PREFERABLE p NO RISK ON EXCHANGE FLUCTUATION INTERNATIONAL p SOFT CURRENCY p HARD CURRENCY p CONVERTIBLE CURRENCY p HIGH RISK ON EXCHANGE FLUCTUATION Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 23

FINANCE: SOURCE OF FUND BESARNYA NILAI TRANSAKSI DOMESTIK ATAU INTERNASIONAL p SELF-FUNDING p LOAN FROM BANKING AND NON BANKING FINANCIAL INSTITUTION p KREDIT SINDIKASI p PROJECT FINANCE p INTERNATIONAL PAYMENT SYSTEM Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 24

FINANCE: METHOD OF PAYMENT DOMESTIC p CASH & CARRY IN n n CONVENTIONAL WAY [directly using “uang kartal”] OR INVOLVING BANKING SERVICES [transaksi giral atau menggunakan surat-surat berharga] INTERNATIONAL p THE MOST POPULAR LETTER OF CREDIT [L/C] Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 25

MEKANISME L/C BANK PENJUAL BANK PEMBELI KORESPONDEN BANK Pembayaran Bill of Lading + Docs Membuka L/C PENJUAL KONTRAK EKSPOR IMPOR PEMBELI Bill of Lading + Docs Goods CARRIER Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 26

TRANSPORTING COMMODITIES DEPEND ON THE DISTANCE p p RELATIFELY SHORT & REACHABLE DISTANCE n DURATION OF TRANSACTION IS SHORTER LESS COST n POSSIBLY BY DARAT, LAUT, UDARA RELATIFELY FAR & UNREACHABLE DISTANCE n DURATION OF BUSINESS IS RELATIFELY LONG INCREASING COST n LIMITED CHOICE ON MEANS OF TRANSPORTATION Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 27

INSURANCE THE CLASSIFICATION ON HIGH OR LOW RISKS DEPEND ON: p PREVIOUS EXPERIENCE IN HANDLING TRANSACTION p ROUTE TAKEN IN TRANSPORTING GOODS p POINT OF TRANSIT AND RELOCATE THE GOODS p DURATION OF TRANSPORTATION p KINDS OF GOODS p PLACE OF DESTINATION Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 28

RISKS TO PROTECT HILANG KESELURUHAN KUANTITAS MUSNAH KUALITAS MAL FUNGSI / OUT OF ORDER SEBAGIAN KUANTITAS BERKURANG KUALITAS CACAT / DEFECT Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 29

CAUSE OF RISKS FORCE MAJEUR HUMAN FACTOR EXTERNAL INTERNAL refuse to perform FAIL TO PERFORM TECHNICAL ERROR Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 30

L A N G U A G E DOMESTIC p p NATIONAL LANGUAGE OFFICIAL LANGUAGE INTERNATIONAL p MORE THAN ONE LANGUAGE CHOOSE INTERNATIONAL LANGUAGE / BHS RESMI PBB SBG BHS STANDAR KONTRAK TRANSLATION TO EACH LANGUAGE OF THE PARTIES Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 31

CULTURE p Consider the variety of culture p Respect and understanding the differences; different is different, it does not necessarily mean one is better or worse than other. Hak Cipta © 2009 Yahoo! abshorilfithry@rocketmail. com. Hak Cipta dilindungi Undang-Undang. 32