Cautions for Contractors Embarking on Overseas Projects: Engaging Professional Advisors and Meeting Entry Requirements

Submitted by hastihejazi on Thu, 01/13/2022 - 21:08
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As such, it is important that a U.S.\ncontractor consult with professionals who can minimize risk, including: 1) an insurance broker who can provide\nworldwide and any other required coverages; 2) a tax advisor who can advise\nabout tax and withholding impacts on payments from other countries, individual and corporate income taxes\nassociated with visas and work permits,\nand the tax effects of creating a permanent establishment in a foreign country;\nand 3) an attorney who can offer counsel about the laws and regulations of the\nforeign jurisdiction where the project is located. An attorney can also assist a contractor in meeting any licensing requirements of\nthe foreign jurisdiction. These\nprofessionals should all be consulted "],[0,[2],1,"prior to"],[0,[],0," commencing work in an overseas\njurisdiction. "]]],[1,"p",[[0,[0,1],2,"Entry\nvia Passports, Visas, and Work Permits"]]],[1,"p",[[0,[0],1,"Passports:"],[0,[],0," \nTo enter a foreign country for construction work, a U.S. contractor\nshould always be prepared to present its personal and\/or business passport. Prior to traveling, verify that the passport\nis not nearing its expiration date. "]]],[1,"p",[[0,[0],1,"Visas:"],[0,[],0," \nA foreign country may require documents other than a passport for entry,\nsuch as a visa. The contractor should learn\n"],[0,[2],1,"if"],[0,[],0," a visa is needed, the"],[0,[2],1," type"],[0,[],0," \u2013 such as an entry, work, long\nstay, or other type \u2013 and the "],[0,[2],1,"length of time"],[0,[],0," for which the visa is\nvalid. Whether obtaining a business\npassport or visa from a foreign consulate, a contractor should plan its time\naccordingly, as there may be many steps involved. Examples of common types of visas include:"]]],[1,"p",[[0,[],0,"1. "],[0,[1],1,"Entry visa"],[0,[],0," \u2013 this may be sufficient for a short\nmeeting in the foreign country. Sometimes an entry visa can be obtained upon\nentering the country, but in many cases, must be obtained months in advance of\nthe foreign travel. "]]],[1,"p",[[0,[],0,"2. "],[0,[1],1,"Work visa"],[0,[],0," - an overseas owner may be required\nto write a letter explaining the nature of the contractor\u2019s work or visit to\nthe country. (Sometimes the owner is also\nrequired to write such a letter for an entry visa.) "]]],[1,"p",[[0,[],0,"3. "],[0,[1],1,"Tourist visa"],[0,[],0," \u2013 using this for a business trip may\nbe problematic. A customs official may question\nsuch a presentation, causing the contractor to be detained and require\nassistance from the U.S. Embassy. "]]],[1,"p",[[0,[],0,"There are\nother rules of traveling to a foreign country to perform work for which a\ncontractor should be aware "],[0,[2],1,"prior to"],[0,[],0," executing a contract with a foreign\nowner. For example, some countries do\nnot admit individuals with a passport stamp from a country with which it does\nnot have diplomatic relations. Additionally,\nit may be preferable to enter with a visa rather than a passport, especially in\nsituations of locating a missing person. \nGuidance on other travel and entry rules can be obtained from the\nInternational Trade Administration and the U.S. Treasury."]]],[1,"p",[[0,[0],1,"Work\nPermits:"],[0,[],0," Apart from requiring a visa, some countries\nmay require a work permit, which serves a different purpose. While a business visa typically allows\nholders to only participate in tasks that are not considered work or gainful\nemployment, a work permit grants holders the ability to perform services that are\nconsidered a job or labor. The\ndefinition of what constitutes work or gainful employment varies by country, so\na contractor should learn about specific requirements in advance of traveling."]]],[1,"p",[[0,[],0,"Lastly, a\ncontractor should consider enrolling in the Smart Traveler Enrollment Program\n(STEP) offered through the Department of State. This free service allows U.S. citizens and\nnationals traveling and living abroad to enroll their trip with the nearest\nU.S. Embassy or Consulate. More\ninformation is available at "],[0,[3],1,"https:\/\/\/."],[0,[],0," Additionally, the\nDepartment of State issues advisories about traveling to foreign countries,\nwhich should be reviewed prior to traveling: \n"],[0,[4],1,"https:\/\/\/content\/travel\/en\/traveladvisories\/traveladvisories.html\/"],[0,[],0,"."]]],[1,"p",[[0,[2,5],2,"AIA Contract Documents has provided this article for\ngeneral informational purposes only. The information provided is not legal\nopinion or legal advice and does not create an attorney-client relationship of\nany kind. This article is also not intended to provide guidance as to how\nproject parties should interpret their specific contracts or resolve contract\ndisputes, as those decisions will need to be made in consultation with legal\ncounsel, insurance counsel, and other professionals, and based upon a multitude\nof factors. "]]]]}
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