Time zones are regions of the Earth that have the same standard time. They are used to coordinate time across different locations, ensuring that people in different parts of the world are using a common reference for time. The Earth is divided into 24 time zones. This division allows for a roughly equal distribution of time across the globe. The concept of time zones helps standardize timekeeping globally, making it easier for people to schedule activities, plan travel, and coordinate events across different regions.

The starting point for time zones is the Prime Meridian, which runs through Greenwich, London, and is assigned the reference time known as Greenwich Mean Time (GMT) or Coordinated Universal Time (UTC). As you move east or west from the Prime Meridian, each time zone represents one hour of time difference. If you move east, you add hours, and if you move west, you subtract hours.

For example, if you are in a location that is 4 hours ahead of GMT, it means that the local time is GMT+4. Conversely, if you are in a location that is 2 hours behind GMT, the local time is GMT-2.

If you are from a PE situated in Germany and you are meeting with a PEN from South Korea at 10h GMT+1, the time in South Korea (GMT+9) will be at 18h.

Source: Greenwich Meantime 

Currencies are systems of money used in a particular country or group of countries. Each currency is typically issued and regulated by the government or monetary authority of a specific country.

Understanding currencies is essential for international trade, finance, and travel, as well as for individuals and businesses engaging in cross-border transactions. Exchange rates play a crucial role in determining the relative value of different currencies and can have significant economic implications.

Each currency has a unique symbol and code. For example:

• US Dollar: Symbol – “$,” Code – “USD”
• Euro: Symbol – “€,” Code – “EUR”
• Swiss Franc: Symbol – “CHF,” Code – “CHF”
• Canadian Dollar: Symbol – “C$,” Code – “CAD”

Source: Investopedia

Transports and logistics in the context of packaging is the process of planning, implementing, and controlling the efficient and effective flow of goods, services, and related information from the point of origin to the point of consumption. This includes the packaging necessary for the protection and handling of goods during transportation, warehousing, and delivery to ensure they reach their destination in optimal condition. It’s a critical component in supply chain management, playing a key role in customer satisfaction.

Moreover, cost considerations are important for this process. The goal is to achieve all these tasks at the lowest cost possible without compromising on quality or customer satisfaction. This includes costs associated with packaging materials, labour, transportation, warehousing, and potential costs related to damaged goods if packaging is inadequate. Therefore, effective transport and logistics management can lead to significant cost savings and improve a company’s bottom line.

Source: A beginners guide to understanding logistics and supply chain

How to reduce losses in freight transportation caused by packaging damage

3 Reasons shipping damage costs you money

Taxes and social benefits are an important consideration for businesses operating internationally. There can be significant differences in tax regimes and social welfare programs between countries that must be taken into account.

Taxation generally includes income tax on individuals and corporations, value-added tax (VAT) on goods and services, and customs duties on imported items. Rates and regulations vary widely. For example, corporate income tax rates in the EU range from 9% in Hungary to 31% in France. Understanding domestic tax laws is crucial for proper compliance. Tax treaties between countries exist to prevent double taxation and provide guidance.

Social benefits are government programs to support citizens such as healthcare, pensions, unemployment insurance, family allowances, and social housing. Funding comes from tax revenues. The extent of benefits differs greatly. Some countries like France, Germany, and Scandinavian countries have extensive social welfare systems. Others like the US and emerging markets have minimal safety nets. The cost to employers also varies significantly.

Customs: Customs is a body responsible for controlling import and export goods authorized to collect customs duties (duty and VAT). In several countries, the custom carries out judicial and tax-police functions and fights against the import, export, and circulation of suspected counterfeit goods.

Exports: 

Intra EU:  trade and transactions within the EU are regulated by the Schengen Treaty. The Schengen area is a free movement zone without internal border controls, established on June 14, 1985, with an agreement that takes its name from the Luxembourg town of the same name and was signed by Belgium, France, Germany, Luxembourg, and the Netherlands.

Extra Eu: the export procedure is obligatory only for Union goods leaving the EU customs territory (Article 269 of the Union Customs Code, UCC), with very few exceptions, such procedure must ensure the correct application of all export measures, e.g., export restrictions and surveillance measures. 

The export procedure foresees, in principle, two stages:

1. I) Export declaration

First the exporter/declarant presents the goods, his export declaration and, where necessary, his export licence at the customs office responsible for the place where he is established or where the goods are packed or loaded for export (Article 221 (2) UCC Implementing Act).

The export declaration must be submitted by electronic means through the Export Control System (ECS). 

The customs office to which the goods and the export declaration have been presented releases the goods and transmits the particulars of the export declaration to the declared customs office of exit.

1. II) Presentation of the goods for export

Subsequently, the goods are presented at the customs office of exit, which examines the goods based on the information received from the customs office of export, makes sure that they correspond to those declared, and supervises their physical departure (Article 332 UCC IA).

In the case of goods exported by rail, post, air, or sea, the customs office of exit may be the office competent for the place where the goods are taken over under a single transport contract for transport to a third country (e.g., port, airport, railway station).

Goods declared for export shall remain under customs supervision until they are taken out of the customs territory of the EU (Article 333 UCC).

Source: Customs Agency

The OECD Guidelines for Multinational Enterprises are an international code of ethical principles directed to governments. Governments have the right – within international legal provisions – to impose conditions under which multinational companies conduct their business activities in their jurisdiction. Multinational companies are subject to the legal provisions of the countries in which they carry out their business activities.

Their business and investment activities contribute to the efficient use of capital, technology, human and natural resources. They facilitate the transfer of technology between world regions and the development of technologies reflecting local conditions.

Source: OECD

E-invoicing refers to the digital creation, transmission and storage of invoice documents between a supplier and buyer. It provides several benefits over traditional paper invoicing such as faster processing, reduced costs and increased transparency. Many countries now mandate e-invoicing for business-to-government transactions.

The EU commissioned the development of a European Standard for e-invoicing called EN 16931 to harmonize e-invoicing across Europe. It provides a common semantic data model and syntax to structure the content of an electronic invoice. As of 2023, adoption of EN 16931 is recommended but voluntary.

E-reporting refers to the electronic transmission of invoice data directly from a company’s ERP system to comply with VAT reporting obligations. This automates the process and reduces errors.

QR codes on invoices allow quick access to digital information and facilitate e-invoicing adoption. The EU Cross-Industry Invoice rules (CII) standard includes specifications for QR coded invoices. When scanned, the QR code provides key invoice data and validation credentials.

Non-cash payments are made to accounts through banks or card companies. These companies need to communicate with each other and be connected. If you want to send money from Slovakia to a smaller bank on the other side of the world, for example, this is handled by so-called correspondent banks. These are ordinary banks that together form an interconnected network around the world. A huge number of domestic and foreign payments take place every day. That is why there are so-called clearing systems. These process all the transactions uploaded to them automatically during the day and transfer all the payments as a single sum in certain batches. This bulk payment is accompanied by a list of the transferred transactions, which the bank then credits to the beneficiaries’ account or forwards if it serves as a correspondent bank. To ensure that the entire system of payments and communication between banks is secure and functions properly, banks use a single secure communication platform. SWIFT is the largest communication platform in the world and is used for messaging by more than 11 000 financial institutions in more than 200 countries.

Source: 5penazi