Exporting and Logistics:  Special Issues for The Small Business
Export and Import Management
Developing an exporting strategy:  using tariff and non-tariff barriers
How is an export market chosen?  Do we have enough expertise?
What skills do we have in the chosen markets? Gray markets
Wading through the exporting documents and understanding idiosyncracies

The Exporting Process - diagram

Export Documents
Export Declaration
Consular Invoice or Certification of Origin
Bill of Lading
Commercial Invoice
Insurance Policy or certificate
Licenses
Others
Health Certificates
Packing Lists
Etc.

Trade Information Center
http://www.trade.gov/td/tic/

CALL 1-800-USA-TRADE Trade Development International Trade Administration U.S. Department of Commerce
The Trade Information Center is the first stop for information about all U.S. Federal Government export assistance programs, general export counseling, and country and regional market information. Please call us to receive personal export assistance from a trade specialist Monday through Friday 8:30 a.m. until 5:30 p.m. (EST).
 

Suppose that we wanted to further develop trade leads between Canada and Mexico
http://www.trade.gov/td/tic/
NAFTA Certificate of Origin and Rules of Origin: Overview
Posted By: Trade Information Center
NEW!! NAFTA updates from the June 2001 "Export America"
Find out the basics about filling out the NAFTA Certificate of Origin
 

Investigate Mexican Trade Regulations
We choose: Country Information, NAFTA, Customs Information,  Documentation - Customs
Preparation of Documents
The basic Mexican import document is the "pedimiento de importacion." This document must be accompanied by a commercial invoice (in Spanish), a bill of lading, and documents demonstrating guarantee of payment of additional duties for undervalued goods if applicable, and documents demonstrating compliance with Mexican product safety and performance regulations if applicable. Import documentation may be prepared and submitted by a licensed Mexican Customs broker, or by an importer with sufficient experience in completing the documents.
 

We want to know what type of middleman to use and consults the ITA web site
Mexican Customs law is very strict regarding proper submission and preparation of customs documentation. Errors in paperwork can result in fines and confiscation of merchandise as contraband. Exporters are advised to ensure that Mexican clients employ competent, reputable Mexican importers or customs brokers.

Importers will use a customs broker (a private-sector provider of services) of choice to obtain release of the merchandise. The customs agent will provide to importers all necessary information relating to applicable duties and non-tariff regulations.
 

Terms of Sale
CIF- (Cost, Insurance, Freight) to a named overseas port of import. A CIF quote is more meaningful to the overseas buyer because it includes the costs of goods, insurance, and all transportation and miscellaneous charges to the named place of debarkation.
C&F- (Cost and Freight) to a named overseas port. The price includes the costs of goods and transportation costs to the named place of debarkation. The cost of insurance is born to the buyer.
FAS- (Free Alongside) at a named U.S. port of export. The price includes cost of goods and charges for delivery of the goods alongside the shipping vessel. The buyer is responsible for the cost of loading onto the vessel, transportation, and insurance.
 

Who’s Responsible for Costs Under Various Terms? - diagram
 

Language Skills Can be a Great Asset in Developing a Career in Global Trade

Suppose that you seek a career using your Spanish-language skills.
You wants to know if countries like Costa Rica impose language requirements on their labels
You look on the TIC site:  http://www.trade.gov/td/tic/
There are no general requirements in Costa Rica for marking the origin of general merchandise.
* Costa Rican food labeling regulations follow the Codex Alimentarius, and require the following specifications:
All domestic and imported food products contain labeling in Spanish:  product name, - list of ingredients in quantitative order, nutritional content,  name and address of importer, expiration or best-used-by date, and weight
 

INTERNET GUIDE TO EXPORT TRADE LEADS
Suppose you wanted to gather information on trade leads:
http://www.trade.gov/td/tic/
Select Export Resources, then Internet Trade Leads.
There is a listing of trade leads grouped by information source, type of matchmaking, and web site address.

Suppose you wanted to find trade leads for markets in Asia:
http://www.asiannet.com/

The Global Technology Network
http://www.usgtn.net/

For the Newly Independent States
http://www.bisnis.doc.gov/
 

Finding information on a specific industry’s structure and planned networking events
Suppose that you wanted information about pharmaceutical industry in Russia
How is the industry structured?  What types of laws are in place? What types of trade shows have been held?

http://www.bisnis.doc.gov/bisnis/isa/isa-med.htm

Russia: Government Takes Measures to Regulate the Pharmaceutical Market (2/99)
DRUG SUPPLY AND CONSUMPTION (Feb. 99) The drug supply problem has been one of the most urgent problems in Russia over the last few months. Russia has developed a significant dependance of the country on drug imports, which in 1997 made up to 60 percent of the Russian pharmaceutical market. After the crisis certain social groups, including senior citizens, veterans, the disabled, and others, have lost their access to free, half-priced drugs guaranteed and subsidized by the government. The majority of Russian families whose income per person is about USD 20 under current circumstances are unable to pay for 60 percent of their needs in drugs. Official statistics point out that an estimated 200,000 diabetics throughout Russia are unable to get free insulin because of the lack of funds for this expense in regional and local budgets. Estimates indicate that out of an average of 300,000 patients, who die from cancer every year, about 20,000 patients could have survived had they had money to buy efficient drugs which they could not afford.
 

Getting Paid Foreign Commercial Payments
Letters of Credit
 Revocable
  Irrevocable
Bills of Exchange
Cash in advance
Open Accounts
Forfeiting
 

Export Payment Terms Risk/Cost Tradeof
 

Transaction Exposure
Transaction Exposure Occurs When a Company:
Has assets in one currency that it expects to convert to another to realize a profit.
Has assets denominated in one currency that must be converted into another at some expected value.
Borrows money in one currency that, when repaid, must be exchanged to make repayment.
Purchase goods for resale in one currency, sells them in another, and needs to convert the proceeds into a third currency to realize planned profits.
 

Real Physical Distribution Costs Between Air and Ocean Freight - Singapore to the United States
 

Suppose that we want to improve our shipping costs between Singapore and the US
. . . And we hired you to develop a better strategy for us.
Naturally, he turns to sources like . . .
http://www.trade.gov/td/tic/
Go to Country Info, and then Asia and the Pacific
Luckily, you found that Singapore has seven Free Trade Zones (FTZ), six for seaborne cargo and one for air cargo (Singapore Changi Airport), within which a wide range of facilities and services are provided for storage and re-export of dutiable and controlled goods. Goods can be stored within the zones without any customs documentation until they are released in the market. They can also be processed and re-exported with minimum customs formalities.
 

There is also specific information on the expected agents:

Agents and Distributors *Local agents are not required, in order to import products into Singapore. No laws regulating the relationship between foreign firms and local agents.
*One agent or distributor is usually sufficient for the Singapore market due to the market's small geographic size.
*Two parties are governed by the terms they initially establish in their contract.
*Goods from US are generally imported using established trading firms that have branches in Singapore and operate throughout Singapore's marketing area. These firms handle sales and after-sales servicing and offer technical and engineering assistance (after-sales support is important for establishing a credible reputation in Singapore).
 

Examples of Commerce Control List Export Regulations
4997B Viruses or viroids for human, veterinary, plant, or laboratory use, except hog cholera and attenuated or inactivated systems.
Controls for ECCN 4997B:
Unit: Report in "$ value.”
Validated License Required: Country Groups QSTVWYZ.
GLV $ Value Limit: $0 for all destinations.
Processing Code: CM.
Reason for Control: National security.
Special Licenses Available: See Part 373.
3D94F "Software" specially designed for the "development" "production," or "use" of items controlled by 3A80C, electronic test equipment controlled by 3A93F, or manufacturing and test equipment controlled by 3B91F.
Controls for 3D94F: Unit: $ value Validated License Required:  Country Groups S,  Z, Iran,  Syria, South African
military police. Reason for Control: FP (foreign policy)
GTDU (general license): Yes, except destinations listed under validated License Required.
 

Other valuable collections: US Government Web sites
http://www.bxa.doc.gov/
Bureau of Export Administration Where to find regulations and technical information

http://www.mac.doc.gov/tcc/index.html
How complex are export documents? What is an FTZ?

http://www.tradeport.org/ts/
The market research section provides country and industry data and hyperlinks
 

U.S. Customs Service
http://www.customs.ustreas.gov/
The U.S. Customs Service is responsible for ensuring that all goods entering and exiting the United States do so in accordance with all applicable U.S. laws and regulations. Although Customs enforces these export regulations for various other government agencies,     specific questions pertaining to commodity licensing requirements should be directed to that lead agency. Agency information, telephone numbers, and basic commodities which may require export licenses can be obtained by clicking on the U.S. Department of Commerce, Bureau of Export Administration web site. That site includes information from numerous other agencies with export control responsibilities.
 

Trade Compliance Center
http://www.mac.doc.gov/tcc/tcc2/marketaccess/market_intro.htm

The TCC provides instant access to fully searchable market access information vital to your front-end export marketing efforts, supportive data on your rights and opportunities when seeking out foreign trading partners, and back-end problem solving to help deal with issues encountered where market entry and/or export expansion difficulties have been met.
 

Can They Help A Small Business?
Small and medium-sized exporters without overseas offices can especially benefit from this market access database, which covers more than 100 countries.

 The information helps answer questions such as, "In what trading environments might I target my exports to maximize potential benefits of market access obligations and other trade agreement commitments?" "Which market entry or export expansion strategies might I employ?" "How do I find local experts to deal with customs and other issues?”

There are four types of reports:
Country Commercial Guides
National Trade Estimate Report on Foreign Trade Barriers
Country Reports on Economic Policy and Trade Practices
Trade Policy Review Summaries
 

The Tradeport Web site
http://www.tradeport.org/ts/

http://www.tradeport.org/ts/trade_expert/infobase/basic/index.html
This web site presents A Basic Guide to Exporting

http://www.tradeport.org/ts/trade_expert/strategy/rep/eval.html
This web site presents Finding An Overseas Representative as part of a section on Developing Your Export Strategy
 

Suppose You are Advising a Firm Importing into the United States
Let’s suppose that you wants to import your “unfamiliar food product” into the United States
How would you know what clearances to obtain from the U.S. government
One useful source is the U.S. Food and Drug Administration
http://www.fda.gov/
http://www.fda.gov/oia/homepage.htm is the guide for international business
 
 

What About Intellectual Property?
Suppose that you develop a  product  to export, but you are concerned with protection of your intellectual property right?

Suppose that you want to protect an invention in several countries? Do you have to submit applications in every country?

http://www.uspto.gov/web/offices/pac/dapps/pct/pct.htm
Patent Cooperation Treaty section of the US Patent and Trademark Office
 

Federal Trade Commission
Suppose that you are hired to develop advertising to post on global web sites of firms headquartered in the U.S.
http://www.ftc.gov/ftc/business.htm
Look in the “business guidance” section of the FTC Homepage
Advertising agencies or web site designers are responsible for reviewing the information used to substantiate ad claims. They may not simply rely on an advertiser’s assurance that the claims are substantiated. In determining whether an ad agency should be held liable, the FTC looks at the extent of the agency’s participation in the preparation of the challenged ad, and whether the agency knew or should have known that the ad included false or deceptive claims.
Internet policies are explained at this location
http://www.ftc.gov/bcp/menu-internet.htm#bized
 

How Can I Learn More?  How Can I Make This Useful?
Suppose that you would like to spend time working as an intern in a global trade position

THE TRADE INFORMATION CENTER INTERN PROGRAM An internship at the Trade Information Center (TIC) is an opportunity to gain exposure to the intricacies of international trade, including the export process, federal export assistance programs, and export promotion. The Trade Information Center is looking for candidates who possess excellent research and writing skills, computer literacy, and interest in international affairs and commerce. Candidates must be enrolled students at either an undergraduate or graduate school, and must be U.S. citizens. Internships are unpaid, however degree credit hours through your own university can sometimes be arranged with a minimum commitment of 20 hours per week.  http://tradeinfo.doc.gov/
 
 
 


 
1 2 3 4 5 6 7 8 9 10 11 12 13 14