Question

Write an executive summary about the different implications of running a company within or outside the European Union.

Answer 1

Implication of running company within european union is

The study found that in the extraction sector a considerable amount of reporting is
conducted. Although the study could not verify whether all companies in the scope
of the Directives report their payment to governments, there is no evidence of
widespread non- compliance either.
On the other hand, even though an extensive search for reports of logging companies
was conducted only two reports could be identified.
▪ The scope of the Directive is restrictive as it specifically targets primary forests
and an important share of logging companies operate outside primary forests;
▪ Very few companies in the European logging industry fall in the scope of the
Directive due to their small size and thus the payments to governments in this
sector are frequently under the required threshold; and
▪ If logging companies sub-contract their operations to local entities, which is
often the case in the sector, the reporting requirements are not applicable to latter

In the sample of reports examined, most companies have provided the required
information, namely the payments to each government by project and by type of
payment. The main errors and inconsistencies identified in the reporting related to
unclear definitions of specific requirements such as the definition of projects, types
of payments and the approach on joint-ventures. Due to the lack of implementation
guidelines, companies have adopted different interpretations. For example,
companies have adopted different approaches regarding the reporting of the
payments of joint ventures: some report only payments when they are the controlling
party while others report the payments even if they are not the controlling party;
some companies report payments to governments in full, proportionally or do not
report such payments. With these different interpretations, important sums may be
completely excluded from the reporting or be reported several times in different
companies’ reports.

implications of running outside European union

• Anti-dumping and countervailing duties

Anti-dumping duty is imposed on imports 'dumped' in the EU - ie sold at a price substantially below their normal value, usually their domestic market price. Anti-subsidies and countervailing measures apply duties or other actions, such as import quantity restrictions, to imports that benefit from specific subsidies in their country of origin. Safeguards are actions temporarily imposed on imports expected or likely to cause serious damage to a domestic industry competing with the imported goods.

2)importing your goods from outside the European Union

Imports make an important contribution to the UK economy. It can be far more cost-effective to import goods than to manufacture them in the UK, giving importers a competitive advantage.

In some cases, overseas suppliers offer goods that aren't available from UK sources. Purchases from overseas are treated differently depending on whether the goods come from countries within the European Union (EU) or from elsewhere. Within the EU, most goods can be imported with minimal customs control and, mostly, no import duty or VAT to pay.