Whereas customs law regulates how to deal with the cross-border movement of goods, foreign trade and payments law concerns itself with the issue of whether such movements can take place. Thus, in its foreign trade and payments law, the Federal Republic sets forth the circumstances under which movements of goods may take place between countries, organisations or persons, and the restrictions that such movements may be subject to.
A common example of such regulations and restrictions are the so-called terrorist lists, which specify the organisations and people with whom business transactions may not be entered into. A further example is the so-called embargos imposed against particular countries (such as those currently in place against Syria and Belarus). Both of these are essential tools for export control.
Although such regulations may initially seem only of relevance to the Federal Republic of Germany, they actually affect all companies (and persons) operating in the cross-border movement of goods. These companies are obliged to comply with the duties arising out of foreign trade and payments law, and are thus required to have the relevant knowledge, and to implement in-house processes accordingly. Errors in this area inevitably lead to violations of the foreign trade and payments law, the sanctions for which range from fines to imprisonment.
Do you want to comply with the stipulations of foreign trade and payments law, but need support in doing so? Then contact the Zollkanzlei! We are always happy to help!