Export Import, International Trading, Online Business, News for Education

5 Tips for Going Global (Import - Export Business)

2007-12-28T18:22:00.000+07:00

5 Tips for Going Global (Import - Export Business)

Import, Export, Global Markets...the buzz words of International Trade are getting small business owners very excited. The reason? In the past it would be too costly for a small business to survive global markets, but as various technologies, professional website design, and the internet become more affordable, it's becoming easier and easier for the little guy to compete. As the trend towards 'going global' grows, so does my business. I have the pleasure of guiding these enthusiastic new players through the global game procedures.

As The Import Export Coach, during my training workshops I'm often asked "How can I test my new product or market idea before deciding to fully commit my resources and finances to the project?"
Of course, I always recommend thorough research before jumping into any international agreement - there are no small deals when "Going Global" - players are ready to buy and sell in bulk. The more research you do, the more you minimize the risks.

It's like a see-saw; when your planning and research increase, your risks go down, and when your planning and research fall, your risk rises, as seen in this diagram:

However, it's not going to hurt your business to start making some contacts and begin the communication process with key players in that market. Below are some tips on how to quickly find valuable global prospects.

Tip #1
For exporting products and services to other countries, contact your country's consulate or
embassy in the foreign market that you're trying to enter. Trade Commissioners are placed in
those foreign countries specifically to help companies like yours export products there.
They collect market data and have access to directories of potential buyers for specific
industries. Embassies are placed in the capital of a country, while consulates are placed
in strategic economic areas.

The only trick is getting them to respond to your inquiry. Keep in mind that they need
some kind of "hard-copy" of your request to place in their files. While many will accept
inquiries via email, some still require a faxed letter. It must be on your company letterhead
and specific information is required.

Whether by fax or email, I suggest you include the following:
- Company contact information.
- Product Description - Be as specific as possible, for example do not generalize
by saying giftware, instead say: decorative, hand painted, carved wood Christmas ornaments.

Request a list of potential buyers.
Request recommendations for market entry strategies. This will make a big difference in how
you approach the foreign market. For example, will you use a major distributor,
individual agent, or trading house, what tradeshows and promotional events
should you attend, etc.

If you follow the suggested guidelines and have a professional approach,
you should have no problem getting a response.

Tip #2
Similarly, for importing products and services from other countries, contact foreign
consulates and embassies located in your city. Just like our country has trade offices
around the world, foreign countries have placed their embassies and consulates here
to study our markets.
The foreign Trade Commissioners in these offices are placed here to help manufacturers
from their own country. They offer Export Directories of their homeland's products
and suppliers. (In some cases, they may offer lists of buyers for certain industries.)
Again, proper communication is essential for gaining their assistance.

Tip #3
Go Online - There are thousands of trade lead sites on the internet. Use sites that offer
quick access and easy maneuvering. Make contact only with companies with whom you're truly
interested in their products. If you're just starting out, trade items that are "easy" with
minimal trade barriers, for example gift and consumer items. And most of all be careful
that you don't get caught up in a wild goose chase...

You may have been mislead that large commodity items will bring in the most profit and
multitudes of money. If you're just starting, think again. The companies involved in
the international distribution of large commodities, in most industries,
are all aware of each other. In other words they already know who the major
buyers and sellers are, and quite frankly, don't need our help.

In addition, if someone is getting you to do a lot of leg work without paying you,
perhaps they are just tying to find out information about a competitor,
or using you to make a trade with a well known buyer/seller in your country
who will not deal with them directly for some reason, and you will end up with nothing.
Or perhaps there are regulations and quotas involved that they want someone else to take
the heat for when the goods are shipped into their country. If you don't know
what you're doing, international trade can be a very costly venture.
But you can do it! Just start with products that have less risk attached to them.
Look on trade lead sites for unique products offered at competitive prices
that are in demand in your market (import) or desired destination market (export).
Reputable suppliers should offer samples of smaller items and full color info on others.

Tip #4
Contact other non-competing companies from your region that have attempted to "Go Global".
Perhaps you sell custom designed windows and you've heard that a door manufacturer
in your town has secured a contract with an Asian buyer. Go ahead - give them a call.
They'll probably be glad to share their stories with you.

Tip #5
Go on Government subsidized trade missions. Check with your government for programs
and subsidized missions to foreign markets that meet the needs of your company.

Article Source By :
Jennifer Henczel
www.ImportExportCoach.com

6 (SIX) Step - Get Starting Success Export and Import Business

2007-12-28T18:17:00.000+07:00

6 (SIX) Step - Get Starting Success Export and Import Business

1. RECOGNIZING YOUR PRODUCT
2. THINKING YOUR BEST PLANNING
3. INCREASE YOUR MANAGEMENT SKILLS
4. MAKE A COMMITMENT INTO YOUR SELF
5. ESTABLISING your GOOD BUSINESS RELATIONSHIP
6. PATIENT AND GET YOUR SUCCESS!

1. RECOGNIZING YOUR PRODUCT
More companies around the the world producing like your goods
with best performance, best quality and very attractive appearance
and most important with competitive price. Soo, if you cannot offer something
more than the others.... you will failed in this competition.

2. THINKING YOUR BEST PLANNING
When you in first time offering some product or service into the market,
many peoples will be not trust it and thinking you are a lier.
Why? because that is nature of human base. Soo, what you can do to change situation?
Ex : Make your best product with warranty (if Possible of course!),
The key sections of your business plan should include an overview of your company,
marketing components, financials and implementation schedule, mission statement
and more references you will be well in your way to having a well documented plan.
And PLEASE REMEMBER, your business plan must be written. Keep into your mind is not enough.

3. INCREASE YOUR KNOWLEDGE

- Payment mechanisms - Payment options including advance payment, open account,
consignment, documentary collection and letter of credit
- Commercial document - Invoices, pro forma invoices, sales contracts.
- Transportation documents - Bills of lading, airway bills, certificates of inspection,
carrier certificates and packing lists.
- Shipping - Containers, weights, intermodals, carriers and less than container loads.
- Government documents - Certificates of Origin, Consular Invoices, license requirements.
- Customs requirements - Valuation, classification using the Harmonized Tariff Schedule,
Schedule B (U.S. only), marking, other agency requirements, Custom House brokers.
- Insurance requirements - Insured value, all risk, free of a particular average, claims.
- Distribution channels - Agents, distributors, export management companies, direct and
indirect channel, trading companies, wholesalers and retailers.
- Pricing product - Landed costs, hidden costs, incremental, discounts and allowances,
price cuts and increases.
- Promotion and Advertising - Types of advertising, sale promotion events, public relations,
direct marketing, personal selling, media options.
- Financing options - Trade finance, short/medium/long term financing, government loan,
guarantee program, private lenders, angel financing.
- International Commercial Terms (Incoterms 2000) - Identify the responsibilities
of buyer and seller.
- Counter Trade - Barter, counterpurchase, offset, switch trading, compensation or buybacks.

4. MAKE COMMITMENT INTO YOUR MIND

It is very unfortunate that many small businesses consider import-export when their business
slows in the domestic markets, or when they have access production capacity to sell to cover
their domestic losses. The same companies, when domestic demands for their product increases,
often forget their export and import business. Such an approach has no place in today's
competitive markets. As with any type of business, long-term commitment is required to remain
competitive and successful in foreign trade. Abandoning your import-export business
prematurely because of increased domestic results reflects a lack of commitment.

5. ESTABLISING YOUR GOOD BUSINESS RELATIONSHIP

In domestic business, your buyer or supplier most likely speaks the same language,
has similar culture and does business by the rules that are familiar to you.
In the international markets, however, your buyer or supplier might be operating
in a different legal, political, cultural and economic environment, including different
businesses practices and languages. Simply put, you will have to work hard to understand
and gain your buyer or seller's trust.

6. PATIENT AND GET YOUR SUCCESS!
If your companies always to remain competitive and profitable in foreign trade careful
planning, long-term business commitment, in-depth knowledge, good relationships and keep
trying your best idea or your business implementation are key considerations to reap
the rewards from a successful import-export business.

Only Suggestion : When you import from Foreign Suppliers

2007-12-27T20:24:00.000+07:00

Only Suggestion : When you import from Foreign Suppliers

1. You should pay attention more to find a really and credible seller.
2. Pay attention to the kind of business of your supplier; are they manufacturers,
or 3rd party suppliers? compare the advantage and disadvantage.
manufacturers may have a faster response in the process of product development,
while 3rd-party suppliers have broader channels that can satisfy your other needs
in the future. working with 4th-party suppliers is not recommended.

3. Establishing healthy personal relationship with the key employees of your supplier
is very important when doing business with foreign people.
4. You need to have a good estimate of the landing cost before you make your order.
Landing cost = Cost of the goods fob +
Transport costs by forwarder +
Import duties (if any) +
Local transport costs +
Cost of service providers (inspections, agents, etc.).
There may be many hidden costs and you can consult an import management company,
but the best way to avoid bad surprises is by making a first order of a small quantity,
and collect all costs and fine tune your landing cost estimate.
5. Pay attention to import duties. import duties depend on hs code of the goods you import,
the countries of origin and destination. if your supplier has some export experience,
he shall know what is the HS code for your product. but do your homework and
check the product description of the hs code corresponds to the product you import.
Definitions are sometime vague. a wrong hs code may delay the custom clearance
of your shipment.
6. Letter of credit is commonly used in trade with Supplier. go to your bank
to get detail formality and cost.
7. Export agents are very commonly hired by exporters.
some of these export agents are also 3rd-party suppliers,
others just provide export services.
8. Neglecting compliance can be very costly. this may force you to pay expensive and
unexpected customs duty, such as anti-dumping duty, as well as risk delaying
your customs clearance. this will cost you expensive storage fees at a railway station
or container yard.
9. If solid wood packaging material is used, talk to your broker.
Sometimes pallet packing is necessary to reduce the transportation cost
during the process of loading and unloading. talk to your forwarder for details.
All wooden packaging for export must follow the nimp15 treated wood specifications.
if your supplier is using wooden packaging, make sure he delivers a nimp15 certificate
with other export documentation

The Top 10 Countries With Which America Trades

2007-12-27T20:18:00.000+07:00

The Top 10 Countries With Which America Trades

According to the U.S. Census Bureau, the top 10 countries with which America trades
(in order of largest import and export dollars to smallest) are:

1. Canada
2. Mexico
3. Japan
4. China
5. Germany
6. United Kingdom
7. France
8. Republic of Korea (South Korea)
9. Taiwan
10. Singapore

Investors' Roundtable / International - Ireland (FAQs)

2007-12-26T19:54:00.000+07:00

Q:What is this?
A: It is version 1 of the Frequently Asked Questions (FAQ) on the Ireland discussion board.

Q: So what is it for?
A: If you are proto-Fool, or even a fully fledged Fool with gold stars, you
may find that your question has been asked before. So to save you time we
thought it would be a good idea make things easy and package the answers to
some of the questions that come up regularly.

Q: How do I know whether this FAQ is up to date?
A: If you got here via the FAQ link at the top of the message view screen then this is as up to date as it gets. However do check for replies. If you just happened across this message while working through every message on the board then it may have been superseded.

Q: What if I know better, or have another question which should be in here?
A: Post a reply here and it will be included in the next version. Thank You.

Q: What are the best sites for Irish Financial Issues

BULLETIN BOARDS:

Askaboutmoney www.askaboutmoney.com deals with Irish Finance. It covers such areas as mortgages, taxation, savings and investment and general stockmarket issues. However, it does not discuss individual shares. It's a community site which accepts no advertising and there are a number of very good people actively contributing their expertise.

The Motley Fool Ireland Board ( you are here !) discusses general Irish issues. See the end of this document for a complete list of Irish shares with their own discussion boards.

Irish Sharetalk www.irisharetalk.com deals mainly with shares and hasn't much on general finance issues. Every day it publishes articles from the business pages relating to Irish issues

Sharewatch www.sharewatch.com is similar but not as good - bizarrely it's more popular
.
TAX AND SOCIAL WELFARE
The Revenue Commissioners www.revenue.ie is an excellent site
Finfacts http://www.finfacts.com/taxfacts.htm have all the basic tax rates
The Department of Social Welfare www.welfare.ie

IRISH BUSINESS PAPERS
The Irish Times www.irish-times.ie
The Irish Independent/Sunday Independent www.independent.ie
Irish Business
Sunday Business Post www.sbpost.ie
Business and Finance
The Sunday Tribune is probably the best business paper but doesn't have an online presence !

FINFACTS
Finfacts www.finfacts.ie is the most comprehensive listing of Irish sites, but all the best ones are shown above.

INDEX TRACKING

Q: What tracker funds are available in Ireland ?

A: Two Irish companies do tracker funds: Irish Life Scope Funds and Quinn Life. See: http://212.67.199.31/askabout/ubb/Forum3/HTML/000015.html for a detailed comparison of these.

Ulster Bank markets a Scottish Provident Iseq tracker but it only tracks the capital value of the ISEQ. In other words it keeps the dividends for themselves !!!!! This is the equivalent of an annual charge of about 3%.

Q: What is the difference between a tracker fund and a tracker bond ?
A: Tracker Bonds are dreadful products which are very popular because of the sales push behind them. They are for a fixed period and offer some guarantee but a limited participation in the growth of the stockmarket which they track. Avoid them.

Tracker Funds actually buy the shares in the index they track - you are exposed to the volatility and the risk of the stockmarket. If the index falls over the period of your investment, the value of your investment will fall. However, you will gain almost the full value of any increase in the index.

Q: Can I buy an overseas tracker ?
A: Yes, but you will be taxed at 40% on any gain or income. Irish trackers pay tax at 24% within the fund. The proceeds in your hands are tax free.

Q: Is there a a Beat the ISEQ scheme, similar to Beat the Footsie ?
A: No - The Beat the FTSE depends on having a large population of high yielding blue-chip companies to select the Top 5 from. We hardly have 5 blue chip companies in Ireland.

TAX

Q: How do I calculate the CGT on my sale of Irish shares ?
A: If you make a gain on the sale of Irish shares you pay capital gains tax at 20% of the gain. The cost is indexed up to allow for inflation. The first £1000 per person is exempt every year.

Q: Do I have to pay Income Tax on dividends of Irish shares
A: The effective rate of income tax on Irish Dividends is your marginal tax rate. Irish companies withhold Dividend Withholding Tax on all dividends at the standard income tax rate of 22%. You should declare your gross dividend on your income tax form and you claim a credit for the DWT.

Q: Is there any tax exempt scheme in Ireland like ISAs in the UK ?
A: No. There is something called a Special Investment Account but the tax advantage is only 2%, and the costs far outweigh this. They are no longer promoted.

MORTGAGES

Q: Where can I get the cheapest mortgage ?
A: Over the long term, the cheapest are the EBS www.ebs.ie and Bank of Scotland ( 1800 556 577, no Irish website)From time to time, other mortgage providers will be temporarily cheaper, but don't forget a mortgage is usually for 25 years and what you want is the mortgage which will be cheaper over the long term. The EBS has a long history of being the cheapest and will probably continue to be so. However, in common with all other Irish banks they were charging mortgage interest rates 1% higher than they needed to. The Bank of Scotland came in to Ireland in 1999 and did us all a favour. All the other institutions cut mortgage interest rates by 1% for both new and existing customers. If I was getting a mortgage I would go to Bank of Scotland. If they ever leave the country we will see Irish rates creep up again. They deserve your support.

Q: Where can I get a 95% mortgage ?
A: The EBS and Bank of Scotland are very conservative in their lending policies. If they won't lend to you, shop around the other institutions. Currently the First Active and Irish Life seem to be most "flexible". If you can't find what you want, try a mortgage broker. While you I am wary of brokers, Rea Mortgage Services (www.rea.ie) seems to be different from the rest in that they seem to be genuinely customer oriented.

Q: Where can I get the BEST SAVINGS RATES
A: Unlike mortgage rates, you need to shop around for the best rate. The Nortern Rock is often the highest. Finfacts provides a list of deposit rates but it omits Northern Rock so I don't know how complete it is http://www.finfacts.com/Private/dip_rate/rates.htm

Q: What carpet-bagging opportunities are available in Ireland ?
A: The EBS is committed to its mutual status and is very unlikely to demutualise in the near future.

The Irish Nationwide is open to change. The minimum deposit is £5000 but the payoff would be quite high as it has very high reserves and very few carpetbaggers.

Friends Provident in Ireland is not a mutual company so Irish policyholders will not participate in any demutualisation.

Standard Life with-profits policyholders will participate in any demutualisation. See the Standard Life board on the Fool http://boards.fool.co.uk/Messages.asp?id=2240075000010000&sort=collapsed

There is nothing to stop Irish residents having deposits or policies with UK institutions. See www.carpetbagger.com for full details.

Q: Where do I sell an endowment ?
A: You are the best person to get value out of your endowment policy, so if at all possible, keep it.
If you must sell it , try :
The Endowment Purchasing Company (1850 595959) or Endowment Policy Exchanges Ltd ( 077 68132)

Q: Where is the best place to get data on Irish shares and to monitor my portfolio ?
A: ( Suggestions welcome as I don't use these sites )
The Irish Stock Exchange www.ise.ie
NCB www.ncb.ie
Sharewatch www.sharewatch.com

BROKERS

Q: Which is the best Irish broker for the small shareholder to deal with ?
A: The most commonly recommended is Morroghs in Cork http://www.morrogh.com/
Campbell O'Connor are also recommended from time to time : http://www.camocon.ie/
The cheapest was Fexco, but they are not taking on any new business by order of the Central Bank. My Experience as a customer is accurately reflected by many frustrating posts on the discussion boards and there is no way that the savings is worth the ulcers from dealing with them.
I use BCP but they have also been told by the Central Bank to stop taking new business.

Q: Can I deal online with an Irish broker ?
A: There are no online brokers in Ireland yet, but there probably will be by the end of 2000. Use an online broker in the UK for the larger Irish shares and US shares but watch out for the currency conversion costs !
For details see the Fool board on brokers http://boards.fool.co.uk/messages.asp?id=2040007000993000
Stocktrade http://www.stocktrade.co.uk/ seem interested in Irish business.

Q: How can I participate in Irish IPO'S from the start. ?
A: They are generally only open to people in the know. If you are a big customer of the sponsoring stockbroker, you may be invited to participate. However, I know people who claim to be big customers of the bigger stockbrokers and they were told they were not big enough.

INVESTMENT CLUBS

Q: Is there an equivalent to ProShare in Ireland ?
A: No. But the Fool Book is still useful in Ireland Buy it at : (Where is the link to the Fool shop ???? )

Q: Which brokers are interested in investment clubs ?
A: Morroghs in Cork http://www.morrogh.com/ are frequently recommended. I have no personal experience of them.

Q: What is the tax position ?
A: You should declare your share of gains and dividends on your tax return.

Q: Where can I join an Investment Club
A: Post a message on the Investment Clubs forums on Askaboutmoney, The Fool, Irishsharewatch or Sharetalk or the Irish Board on the Fool

APPENDIX
Irish Company Discussion Boards at the Fool

Quotes for Irish companies are only available if they also have a listing on the London Stock Exchange. Most of the companies with quotes also have their own discussion boards.

Allied Irish Bank (ALBK)
http://boards.fool.co.uk/Messages.asp?id=2060029000000000

Anglo Irish Bank (AIB)
http://boards.fool.co.uk/Messages.asp?id=2060008000000000

Baltimore Technologies (BLM)
http://boards.fool.co.uk/Messages.asp?id=2070038000000000

Bank of Ireland (BKIR)
http://boards.fool.co.uk/Messages.asp?id=2070046000000000

Eircom (EIR)
http://boards.fool.co.uk/Messages.asp?id=2100025000000000

First Active (FTA)
http://boards.fool.co.uk/Messages.asp?id=2110004000000000

Fyffes (FFY)
http://boards.fool.co.uk/Messages.asp?id=2110011000000000

Galen Holdings (GAL)
http://boards.fool.co.uk/Messages.asp?id=2120017000000000

Horizon Technology Group (HOR)
http://boards.fool.co.uk/Messages.asp?id=2130017000000000

Parthus Technologies (PRH)
http://boards.fool.co.uk/Messages.asp?id=2210033000000000

Ryanair Holdings (RYA)
http://boards.fool.co.uk/Messages.asp?id=2230026000000000

Tullow Oil (TLW)
http://boards.fool.co.uk/Messages.asp?id=2250044000000000

Viridian Group (VRD)
http://boards.fool.co.uk/Messages.asp?id=2270008000000000

Source:
http://boards.fool.co.uk/Message.asp?mid=6011237

mortgage endowment complaints about post-'A Day' sales

2007-12-26T19:50:00.001+07:00

We recently published on this website a briefing note on post-'A Day' mortgage endowment complaints. A post-'A Day' sale is one that took place after 29 April 1988 – when the provision of investment advice became regulated under the Financial Services Act 1986.

There is nothing new in the approach set out in the briefing note; the principles were established many years ago. But we hope the note will prove useful in drawing together some of the available information on the way in which we handle these complaints.

Here, we provide a short extract from the briefing note, together with some recent case studies.

'In general terms, since 'A Day', firms should:
obtain sufficient personal and financial information relevant to the service to be performed for the customer to 'know the customer' and
(based on that information) give recommendations that are suitable to the customer's circumstances.

We consider the regulatory requirements that applied to the firm at the time of the sale when deciding whether a recommendation was suitable for the particular customer.

There may have been something about the customer's circumstances, or about the policy itself, which meant that the firm should not have recommended the policy to that customer – irrespective of the customer's understanding of the risks involved. Examples could include situations where it was clear that the customer required a level of flexibility that was inconsistent with a long-term commitment or where affordability over the full term was likely to be an issue.

But in the vast majority of cases the underlying issue, when considering whether or not a policy is 'suitable', is whether the policy exposed the customer to a risk (or level of risk) that they were unwilling, or unable, to take with the repayment of their mortgage.

One of the main differences with post-'A Day' (as opposed to pre-'A Day') cases is that there is likely to be more documentary evidence available from the time of the sale. With post-'A Day' complaints there may be a 'fact find', illustration, brochure or 'key features' document and (after 1995) a 'reason why' letter. Where these are available, we consider them carefully, along with the customer's circumstances, to help us decide whether the policy was suitable.'

The following case studies illustrate some of the wide range of complaints we deal with involving post-'A Day' mortgage endowment sales.
case studies
mortgage endowments: complaints about post-'A Day' sales

58/6

In 1997, on the firm's recommendation, Mr and Mrs V took out a £30,000 interest-only mortgage and an endowment policy. The policy – invested in the firm's managed fund – had a 25-year term.

The 'fact find' which Mr and Mrs V signed records that, at the time:
Mr V was 20 and employed as a factory worker, earning £13,000 a year
Mrs V was 19 and employed as a cleaner, earning £6,000 a year and
they had a young child and were expecting another baby in five months' time.

There was a question on the 'fact find' about 'attitude to risk in regards to using an investment vehicle to repay your mortgage'. Customers answered this by selecting a number on a scale from 1 (signifying 'cautious') to 10 (signifying 'speculative'). The couple had answered with a '3'.

The firm told us it believed Mr and Mrs V had knowingly accepted the risk associated with the policy. It said the couple's answer to the question about attitude to risk suggested they had a 'balanced' attitude, consistent with the policy it had recommended.

The firm said it had given the couple:
(at the time of the sale) an illustration which stated: 'These figures are only examples and are not guaranteed – they are not minimum or maximum amounts. What you will get back depends on how your investments grow'
(after the sale) a 'key features' document and
a 'reason why' letter, which summarised why it had sold the endowment policy.

Mr and Mrs V told us:
they remembered the 'attitude to risk' question – they had ticked '3' because the adviser said '3 was average and normal' and
they didn't understand the illustrations but had trusted the adviser, who said their mortgage would be repaid in full and they would receive 'at least £10,000 on top'.

complaint upheld
Mr and Mrs V took out the policy in 1997, so the regulatory requirements and standards introduced by the Financial Services Act 1986 applied to the sale. We considered whether the policy sold to Mr and Mrs V had been suitable for them.

Mr and Mrs V's jobs at the time of the sale do not suggest there was scope for significant salary increases. They were struggling financially and found it difficult to save. It seemed likely to us, from their circumstances, that they would expect it to be difficult to cope with a shortfall on their mortgage. It was unlikely they would knowingly have risked having to do this.

Mr and Mrs V's explanation of why they had answered the question about attitude to risk with a '3' appeared to us to be plausible. And we didn't think the record necessarily reflected their actual attitude to risk.

We thought the illustration and 'key features' document were likely to have been of secondary importance in the sales process to the information provided by the firm's representative. Mr and Mrs V's occupations did not suggest they would have been familiar with documents of this type, and we thought the couple would have relied heavily on the representative's advice.

The 'reason why' letter referred to the fact that the policy would be reviewed to ensure it remained on track to repay the mortgage. However, we were not persuaded that this would have alerted Mr and Mrs V to the extent of the risk presented by the policy, bearing in mind that the representative had already advised them that the policy was suitable for them.

After considering the detail of Mr and Mrs V's testimony, we were satisfied that they had not appreciated the risk posed by the managed fund policy. We did not consider the policy to have been a suitable recommendation and we upheld the complaint.

58/7

In 1993, acting on the firm's recommendation, Dr D took out a £63,360 interest-only mortgage and a with-profits endowment policy.

The mortgage application form that he signed stated that he:
was working as a hospital doctor earning £40,000 a year
was aged 30 and divorced with no dependants
held approximately £20,000 on deposit in bank and building society accounts
was looking to move house and
already had a £30,000 interest-only mortgage supported by a with-profits endowment policy.

The firm's records showed that it had prepared an illustration the day before Dr D met the firm's adviser. The firm was not able to produce any other point-of-sale documentation.

The firm said:
it had advised Dr D on his general finances in 1990 and, as a result, he had taken a Personal Equity Plan (PEP) and a unit trust
with-profit funds are considered a low area of investment risk and were 'within the attitude to investment risk' demonstrated by Dr D's existing
equity investments
the illustration it provided had clearly shown that a shortfall was possible and
Dr D had understood and accepted the risk that the endowment might not produce enough to pay off his mortgage.

Dr D told us:
the adviser had said the endowment policy would cover his mortgage, provide surplus cash and work out cheaper than a repayment mortgage
he had not received the firm's illustration – possibly because the firm sometimes sent documents to his work address and they didn't always reach him and
his attitude to risk is extremely cautious; he would have taken a repayment mortgage if he had known the endowment policy carried any element of risk.

complaint rejected
Dr D took out the policy in 1993, so the regulatory requirements and standards introduced by the Financial Services Act 1986 applied to the sale. We considered whether the endowment policy was suitable for him.

At the time of the sale, Dr D had savings in a building society account. Every month he paid £70 into a personal equity plan (PEP) invested in a UK fund and £80 into a unit trust invested in a family of funds.

We acknowledged that Dr D's attitude to risk might differ when it came to his mortgage rather than his savings. However, it seemed possible to us that Dr D had some knowledge of financial matters and might have been prepared to take some risk. He could expect a rising income from his occupation and the endowment policy was due to mature ten years before he reached retirement age.

We thought it plausible that, in his circumstances, Dr D might have decided to accept a risk in return for the prospect of receiving a surplus over and above the amount needed to repay his mortgage.

The illustrations the firm had provided were clear. And since they had been prepared in advance of the meeting with Dr D, it seemed likely to us that they had formed part of the sales process. Of course, we couldn't be sure Dr D had seen the illustrations. However, we thought it likely that if he had done so, he would have understood them.

After considering the detail of Dr D's representations, we decided it was more likely than not that he had understood and accepted the risk of an endowment policy. We rejected the complaint.

58/8

In 1998, on the firm's recommendation, Mr and Mrs T took out a £40,000 interest-only mortgage and endowment policy. The policy was invested in a with-profits fund and had a 25-year term.

At the time of the sale, the adviser noted down his recommendations in a 'Customer Needs Analysis' form which Mr and Mrs T had both signed. This form records that:
Mr T was 38, working as a taxi driver, earning £10,000 a year and expecting to retire when he was 65
Mrs T was 35, working as manager of a car rental shop earning £11,000 a year and expecting to retire when she was 60
the couple had no savings or investments apart from the £3,000 they were using as a deposit for the house
they did not expect to be in a position to save or invest in the future and
they were buying their first home together and required a mortgage for £40,000.

The adviser's notes from the point-of-sale documents show that he recommended a with-profits endowment mortgage because it has a 'secure build-up of funds which matches clients' low tolerance to risk concerning the repayment of their mortgage' and because the couple 'anticipated moving home in the future'.

The adviser also noted that Mr and Mrs T were aware that '... although the idea of an endowment is to repay the mortgage sum at the end of its term, there is the potential to accumulate an additional lump sum, however this is not guaranteed.'

The firm told us:
the adviser obtained sufficient information from Mr and Mrs T to make a suitable recommendation and he carefully documented their attitude to risk
Mr and Mrs T had a low tolerance to risk, which matched the fund recommended.

Mr and Mrs T told us:
the adviser assured them the policy was risk-free and would pay out a cash surplus at the end of the term, but a repayment mortgage would cost more
and be less flexible
they relied on what the adviser told them – but if they had known about the risk they would not have taken an endowment mortgage
they told the adviser they didn't expect to be able to save in the future and
if the adviser had discussed a shortfall, they would have expected him also to document how he expected them to fund it.

complaint upheld
Mr and Mrs T took out the policy in 1998, so the regulatory requirements and standards introduced by the Financial Services Act 1986 applied to the sale. We considered whether the policy was suitable for the couple.

The adviser's notes stated that Mr and Mrs T had a 'low tolerance to risk concerning the repayment of their mortgage'. We thought about this statement carefully. It seemed to us that it could mean more than one thing. A consumer – unused to the terminology of the investment industry – might think that having a 'low tolerance to risk' meant they would not want to take a risk, not that they would be happy to accept a low risk.

And it was not clear from the adviser's notes whether the couple appreciated that it was the repayment of the mortgage that was 'not guaranteed', or just the additional lump sum.

We thought it likely that there had been at least some sort of discussion about Mr and Mrs T's attitude to risk. But the notes and 'fact find' from the time of sale were not decisive in this case.

After considering the couple's circumstances and their detailed submissions, we decided that, on balance, the firm's recommendation had been unsuitable. It exposed the couple to a level of risk they were not prepared to take with the repayment of their mortgage. We upheld the complaint.

source :
ombudsman news
issue 58
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/58/58-mortgage_endowment_complaints.htm

Endowment Policy Sales - Frequently Asked Questions (FAQs)

2007-12-26T19:50:00.000+07:00

Frequently Asked Questions (FAQs)

How difficult is it to sell an endowment?
In short, it's easy. We help you sell your endowment policy by making the process as simple as possible - you can start now using our secure online quotation form. Most of the paperwork merely requires your name, address and signature.

How do I find out if my endowment policy can be sold?
After receiving a quotation enquiry, we submit basic policy details to all of the market makers that buy "with profits" policies. As long-established specialists in selling endowments we have business links with all of the major endowment buyers and make your life easier as you only have to submit the details once using our online quotation form.

We aim to get you the highest possible price for your endowment by finding and negotiating with policy buyers. Please note that if any of the market makers have seen the policy details via another source (you directly, or another broker), most will not deal with second or subsequent enquiries. If you receive a higher purchase offer than ours, the most likely reason is that our enquiry was not dealt with first by the market maker that has made it.

What increase over my endowment surrender value is possible?
We do not (and never will) advertise that you could get 30%, 40% or even 50% more for your policy. In 2005, the highest increase that we have achieved for a policy is more than 70% over the surrender value - but this is highly unusual. The average gain on an endowment sold rather than "cashed in" is usually between 5% and 15% over the surrender value.

Is there a fee for getting a quotation for my endowment?
No. As one of the UK's leading endowment brokers we contact all of the market makers to try to get the best price for your policy. This service is free and if you then proceed to sell your endowment we will be paid by the purchaser and not you. The offer that you receive will always be "what you see is what you get".

How long does it take to be paid for a policy?
This depends on who the purchaser is and which insurance company your endowment is with. Many sales are completed in about a week, but the average is 3 to 4 weeks.

Is selling my endowment policy safe?
Until you have been paid for your policy, it will remain your property. Even though the purchaser or their solicitors will ask for the policy document prior to completion, until you have been paid, it will belong to you.

Additionally, when you use Endowment Policy First you are dealing with an Independent Financial Adviser. Endowment Policy First is an online trading name of Lewkay Financial Services, who are authorised and regulated by the Financial Services Authority (FSA). There are several layers of security when using our company and we will be happy to explain these in detail at any point. Our online quotation form uses high security encryption which ensures that your personal details cannot be intercepted by a third party after submission.

What does the sale process involve?
This is explained in detail on our "selling endowment info" page.

What happens to my endowment policy when sold?
As soon as you receive payment, the buyer will own the endowment and one of two things will happen to it. The purchaser will either hold on to the policy for their own portfolio, or will sell it on to a fund or private investor. In either case, any rights or responsibilities connected with the plan become the liability of the new owner.

Which types of endowment policy are tradable
Only traditional With Profits endowment policies can be sold and not unit-linked plans. You will be able to determine whether your policy is a traditional With Profits endowment or unit-linked by the annual notification sent to you. If this shows a basic sum assured (also referred to as "basic benefit", "With Profits sum assured", "With Profits benefit", or "amount to which bonuses are added") and bonuses, it is probably a traditional With Profits plan. If your statement shows units in either a With Profits or any other type of fund (e.g. "managed", "balanced", or "equity"), then it is unit-linked and you will not be able to sell it.

Why can't I sell my unit-linked endowment policy?
Unit-linked policies almost have a "face value". This is calculated by multiplying the number of units held, by the value of each unit. In very simplistic terms, a unit-linked endowment policy containing 100 units with a price of £1 per unit would be worth £100, less any early encashment penalties that are applied by the insurance company.

Why have I received a higher offer for my policy than your offer?
As stated above, when we receive an enquiry, we submit basic policy details to all of the market makers that purchase With Profits policies. If they have already seen the policy details from another source, most market makers will not deal with second or subsequent enquiries. If you have received a higher offer than the one from us, the most likely reason is that our enquiry was not dealt with first by the market maker.

One final point to note is that there are two types of "offer" that you might receive. We only deal with firm cash offers to purchase policies, but there are companies that may give you an "indicative sale price". An indicative sale price is only an indication of how much a company feels that you may get if you give them sole marketing rights to the policy for a period of time. During this time they will try to find a purchaser for the policy at the indicated price.

An indicative sale price is therefore not a guaranteed amount that you will receive and this is why we do not deal with these companies.

Please be aware that some written "offers" are not firm offers and the wording may not be very clear as to which type of offer they are. If in doubt, we will usually be able to tell you about the offer you have over the phone (without obligation), if you know the company that you are dealing with.

Is selling or surrendering the policy the only option?
Endowment policies are designed to be long term commitments and cashing one in early may mean you receive less than the premiums you have paid. You may be able to get a loan on the policy or make it "paid up". The Association of British Insurers web site has more information here.

What will I need to sell my endowment?
You will need to have the original policy document, some proof of identity, address and age.

If I surrender or sell my policy can I still claim compensation for endowment mis-selling?
A claim for mis-selling is still possible providing you can supply evidence that you were the policyholder. Which? (tm) has an active campaign for mis-sold endowment mortgages or you can find more information about endowment mortgage shortfalls at the BBC web site.

AT&T and ADT Sign Co-Marketing Agreement; ADT Sales Force To Market AT&T Long Distance

2007-12-26T19:47:00.002+07:00

BASKING RIDGE, N.J.--(BUSINESS WIRE)--March 4, 1997--AT&T and ADT (NYSE: ADT) today announced a joint marketing agreement in which ADT, the nation's largest provider of electronic security services, will market AT&T long distance services to ADT's current and new customers. This move is another step by AT&T to build alternative channels to expand and deepen its customer base.

Under the agreement:

- Consumers who sign up for AT&T residential long distance service under the AT&T/ADT program will get from ADT special offers and discounts on installations, upgrades, and monthly monitoring fees for security services.

- AT&T's current residential customers will be eligible for special offers and discounts on ADT security services just because they are AT&T customers. These offers will be conveyed in targeted communications that AT&T sends directly to its customers, for example, the "True Rewards" member newsletter.

- ADT will extend special offers and discounts to its business customers who are AT&T customers. In a reciprocal arrangement, AT&T salespeople will be able to refer their AT&T business customers to ADT for special ADT offers and discounts on security services.

Financial terms of the agreement were not disclosed.

"This joint marketing agreement enables AT&T to make it even more attractive for new residential customers to choose AT&T, and also gives our current customers more value and benefits," said Gail McGovern, Executive Vice President, Consumer Markets Division, AT&T.

"When people purchase a security system, they want to deal with a company they can trust and have confidence in -- qualities we know they'll have with ADT," said McGovern. "This is another important initiative to bring our AT&T residential services to a consumer's doorstep. This agreement brings together two important home services -- communications and home protection -- for the convenience and benefit of consumers."

This arrangement also represents a significant step in expanding ADT's channels of distribution. "The agreement combines two strong brand names and promises to be a highly efficient and very cost effective method of adding new customers for us," said Michael A. Ashcroft, Chairman and Chief Executive Officer, ADT.

"We know the strength of the AT&T brand will help us bring unparalleled opportunities to our existing and future customers," said Ashcroft.

ADT, through its subsidiaries, is the largest provider of electronic security services in North America and the United Kingdom, providing continuous monitoring of commercial and residential security systems to over 1.8 million customers in North America and Europe.

With the most powerful network in the world, AT&T offers consumers communications and information services including long distance, wireless, online, home entertainment, and local, that can make their personal lives richer.

For AT&T, today's announcement is the latest in a series of initiatives the company is undertaking to broaden its reach into the consumer market. Last November, AT&T and Shaklee Corporation, a leading direct marketing company, reached an agreement allowing potentially all of Shaklee's 500,000 independent distributors to market AT&T residential long distance services. Independent distributors began marketing services in January.

CONTACT: AT&T

Karyn Vaughn-Fritz, 908/221-7974 (office)

kvaughn@attmail.com

or

ADT

Angela Entwistle, 561/988-3600

COPYRIGHT 1997 Business Wire
COPYRIGHT 2004 Gale Group

US and South Korea Start Final Stage of International Trade Talks

2007-12-26T19:47:00.001+07:00

The United States and South Korea struggled to resolve differences over certain international trade issues last Monday as they started the final phase of their negotiations concerning a proposed free trade agreement (FTA). Although the two countries completed the final round of their FTA talks, they still decided to hold further discussions in order to settle their disputes regarding some international trade issues. US Deputy Trade Representative Wendy Cutler and her South Korean trade negotiator Kim John-hoon recently met in Washington in order to talk about sensitive issues like textiles, pharmaceuticals, agriculture, and automobiles.

Top officials in the agricultural sector also met in Seoul recently in order to focus on farm issues that have been blocking the progress of the FTA talks between the US and South Korea. It must be noted that many South Koreans oppose the proposed international trade deal due to fears that it may seriously affect the country's agricultural industry. Stephen Norton, who is the spokesman of the US Trade Representative, told reporters that the two parties would be doing a lot of hard work towards the end of this month.

Meanwhile, Mr. Jong-hoon said that the two sides have already achieved a significant breakthrough since the international trade negotiations were launched ten months ago. He stated that he would do what he could in order to resolve remaining issues in the proposed FTA. According to the South Korean trade negotiator, the two countries would discuss such issues in Seoul next week. It must be noted that the US and South Korea are aiming to complete the talks before the end of this month.

According to reports, Ms. Schwab and Mr. Jong-hoon are due to meet next week in South Korea in order to settle remaining hurdles to the proposed FTA. If the international trade agreement materialized, it would be the largest free trade agreement to be signed by the US since the NAFTA (North American Free Trade Agreement). It must be noted that the US is pushing to close an international trade agreement with South Korea before the trade promotion authority (TPA) of President George W. Bush ends in July this year. But the two parties need to wrap up a deal by the end of this month since the proposed deal must be submitted to the US Congress 90 days before the expiration of the TPA. At present, Washington is negotiating for the extension of the trade authority.

Source :
http://www.tbc-world.com/

New International Trade Pacts Enslave Poor Nations

2007-12-26T19:44:00.001+07:00

Oxfam stated that new international trade deals signed between wealthy and poor nations proved to be damaging rather than helpful to the economic improvement of poor nations. Emily Jones, who is the author of the Oxfam report called "Signing Away the Future," said that poor nations were being forced to make deep cuts in their import tariffs. She added that these duties were often reduced to zero under some free trade pacts that were signed between industrialized and poor nations. Under such international trade agreements, developing countries are forced to open up their markets to subsidized farm goods.

According to the Oxfam report, there are currently over 250 bilateral and regional trade agreements. In fact, the report said that more international trade deals were being negotiated. The organization said that about 25 nations have inked free trade deals with wealthy countries. At present, bilateral and regional trade pacts account for 30% of world trade. The Oxfam report said that some of these trade pacts often affected the economic development of poor nations. Ms. Jones said that many developing countries were forced to sign these trade agreements due to fears that they would lose a preferential treatment.

According to Ms. Jones, many developing countries were asked to cut their import duties in exchange for export preferences. She said that the NAFTA (North American Free Trade Agreement) has resulted in the loss of around 1.3 million jobs in Mexico during the last ten years. She added that increased exports to the US have failed to fuel development. The Oxfam report said that the policies of service liberalization threatened to reduce competition and end small-scale local businesses. According to the Oxfam, developing nations were pressured to sign international trade agreements with richer countries.

In its report, the Oxfam made several demands regarding international trade deals. First, they should recognize the need of developing countries for differential or special treatment in order to boost their economy. Second, they should help poor nations in adopting more flexible policies concerning the protection of intellectual property rights. Such move would help poor countries gain more access to cheaper services such as health care. Third, they should exclude public services like health, education, sanitation, and water. Fourth, they should recognize the right of countries to regulate foreign investors. They should also include commitments regarding the enforcement of core labor policies. Fifth, international trade agreements should make sure that all parties concerned would take part in the negotiating process.

Source :
http://www.tbc-world.com/

US Reveals Plan to Cut Fishing Subsidies in Global Trade Talks

2007-12-26T19:44:00.000+07:00

The United States recently initiated a plan to cut fishing subsidies by more than 50% in the Doha Development Round of Trade Talks. According to US officials, the plan to reduce almost all government subsidies to fishing industries was handed to the World Trade Organization (WTO). US Trade Representative Susan Schwab said that the global trade organization faced a great and historic chance to resolve a serious issue that could distort world trade and destroy the environment. It must be noted that the WTO is currently pushing for the successful conclusion of the global trade talks.

The 14-page document is the first comprehensive proposal regarding the fishing industry that was offered by the United States in the negotiating table. The plan seeks to ban all state subsidies to "wild-capture fishing" that is considered to encourage excessive fishing. According to reports, the subsidies that would be banned include payments for fuel, ships, and fishing equipment. But the plan also seeks to exempt some subsidies like boat safety, boat buybacks, research programs, stock improvement, and policies governing such operations. The plan is the broadest offer regarding the fishing industry that was placed by the US in the on-going global trade talks.

Oceania, which is an international environmental organization, stated that subsidies encouraged excessive fishing. It must be noted that overfishing is among the major environmental issues faced by the United Nations. In fact the UN estimates that about 52% of fish stocks are close to the maximum sustainable level. Meanwhile, 20% of such stocks are being over-exploited. Scientists and marine experts said that if overfishing continued, it would destroy seafood and fish population by 2048. Courtney Sakai, who is the campaign director of Oceania, said that removing fishing subsidies in the global trade talks was a good move to protect marine life, as well as the ocean.

The removal of fishing subsidies is just one of the key issues being discussed in the on-going Doha Development Round of Trade Talks. If the plan materialized, it would reduce fishing subsidies by $20 billion. It must be noted that the members of the WTO are currently pushing for the completion of the global trade talks before the trade promotion authority of President George W. Bush ends in July this year. The TPA, which is vital to the Doha Round, enables the Bush administration to negotiate free trade agreements that must be approved or opposed by the US Congress without making any change.

Source :
http://www.tbc-world.com/

Oil Prices Rise as Exporters Consider Output Cuts

2007-12-26T19:38:00.000+07:00

The prices of petroleum rebounded after they had plunged to their lowest point this year due to the OPEC proposal to reduce its production. But the rise was further supported by a US government report regarding the decline of heating fuel inventories and the decision of Norway to shut its operations at 2 offshore oil blocks thus disrupting supplies from the third biggest oil producer and exporter in the world. Crude oil, then, settled at $58.19 per barrel in the US after it had previously dropped to $57.22, which was its lowest point since December 2005. Although the Organization of Petroleum Exporting Countries decided earlier to maintain their 28 million barrel daily quota, the group of exporters is now considering to lower its production. In fact, the OPEC members have proposed to cut daily supplies by one million barrels. The group of exporters though is yet to decide over the matter.

Meanwhile, Norwegian safety officials ordered last Thursday a shutdown in the operations at 2 offshore oil blocks. But according to reports, state-owned Statoil ASA and the Norwegian unit of Royal Dutch Shell, both of which share the operations in the two sites, were likely to continue with their production until they meet and negotiate with concerned authorities. A representative of Norway's Petroleum Safety Authority said that the agency had already sent letters to the two operators informing them that it did not approve the lifeboat standards at Norske Shell ASA's 140,000 barrel a day Draugen field and Statoil's 110,000 barrel a day Snorre A platform. According to Inger Anda, the shutdown order would result to a 9% fall in Norway's daily oil output, which is around 2.7 million barrels of light oil, crude oil, and natural gas liquids. The disruption of Norway's production would then affect global supplies considering its position as one of the biggest petroleum producers and exporters in the world.

Meanwhile, the US Energy Information Administration stated last Thursday that domestic stocks of distillates that include diesel and heating fuel dropped by 1.6 million barrels thus settling to 149.9 million barrels. According to the EIA, the decrease was due to the decline of operations in fuel refineries. Heating fuel accounted for the larger percentage of the fall in distillate inventories considering that heating oil plunged to its lowest level since March 24. The current distillate inventories though are still above the average level for this season of the year. Meanwhile, crude oil inventories increased by 2.4 million barrels thus settling to 330.5 million, while gasoline stocks rose by 300,000 barrels to 215.4 million barrels. It must be noted that the cost of petroleum is hovering around its lowest point this year amidst reports that major exporters might soon cut their production.

Recently, exporters have proposed a one million cut in the OPEC output. Particularly, Iran and Algeria have openly expressed their support to the proposal. Meanwhile, Saudi Arabia, which is the biggest oil producer worldwide, is yet to issue its final decision concerning the issue. Its move would be crucial in determining the future of oil prices in the global market. Since the middle of July, the cost of petroleum has decreased by more than 20% thus rousing serious concerns among the world's biggest exporters.

Source :
http://www.tbc-world.com

US-South Korea International Trade Deal Faces Hurdles in Congress

2007-12-26T19:37:00.000+07:00

The United States and South Korea finally reached a free trade agreement (FTA) after months of negotiations. It must be noted that the two countries struggled to settle their differences and come up with an international trade deal before the deadline, which is the expiration of President George W. Bush's trade promotion authority (TPA). Although the TPA is due to end in July, the two countries needed to close an international trade pact 90 days before the expiration. But despite the success of trade negotiators from both sides, the proposed FTA is expected to face certain hurdles in the US Congress.

There are doubts whether the new international trade agreement would be approved by the US Congress, which is currently controlled by the Democrats. According to analysts, South Korea's existing trade policies, as well as criticisms against current US trade rules, are among the major factors that would affect the decision of the Congress regarding the proposed FTA. It must be noted that some legislators have already threatened to block the FTA unless South Korea resolves its beef dispute with the US.

Although beef does not form part of the international trade agreement, it has been one of the key issues that affected negotiations between South Korea and the US. It must be noted that South Korea used to be among the biggest markets for US beef products. However, the Asian nation imposed a ban on US beef imports in 2003 due to the incidence of mad cow disease. South Korea has already lifted the ban last year. Needles to say, the country remains strict in accepting beef shipments from the US. In fact, South Korea rejected initial beef shipments from the US due to their failure to comply with safety standards.

The exclusion of rice from the international trade deal is also expected to affect the decision of the US Congress over the proposed FTA. It must be noted that the US initially wanted to gain a greater access into South Korea's agricultural market. But the Asian nation has insisted to exclude rice from the FTA in order to protect its farmers. Until now, the US-South Korea international trade pact continues to face the opposition of many South Korean farmers, who fear that the FTA may gravely impact their country's farm industry. The newly signed trade deal is the biggest FTA to be signed by the US since the NAFTA (North American Free Trade Agreement) in 1993.

Source :
http://www.tbc-world.com/

Malaysia Threatens to Stop Global Trade Talks with US

2007-12-26T18:52:00.000+07:00

Malaysia has recently threatened to stop its FTA (free trade agreement) talks with the United States due to the latter's call for the former to end its development agreement on energy with Iran. It must be noted that a US lawmaker has raised some concerns regarding the energy deal between Malaysia and Iran. Under the global trade pact, Malaysia will develop a number of gas fields in Iran. It will also construct LNG (liquefied natural gas) plants in the Middle East nation. The global trade agreement on energy between the two countries is estimated to be worth $16 billion.

The US has discouraged Malaysia from pursuing the global trade deal due to the resistance of Iran to halt its uranium enrichment program despite the calls from the United Nations Security Council. Western nations, particularly the US, have raised serious concerns regarding Iran's nuclear ambition. They have been worried that the Middle East nation might use its nuclear technology to build weapons of mass destruction. In response to the call from the international community to stop its nuclear project, the Iranian government insisted that it had the right to develop nuclear technology for peaceful purposes. According to Iran, it would be using its nuclear technology to boost its energy resources and meet its rising energy needs.

It must be noted that the US is currently the largest partner of Malaysia in global trade. The two countries launched their free trade negotiations last June 2006. But Malaysian Prime Minister Abdullah Badawi said that his country would not bow down to pressure from the US.

Tom Lantos, the current Chairman of the US House of Representatives Foreign Affairs Committee, raised some concerns regarding global trade between Iran and Malaysia. It must be noted that both the US and Malaysia are scheduled to hold the fifth round of their free trade negotiations before the end of this month. But Malaysian officials threatened that they would not allow their country's economic ties with Iran to impede the progress of its trade talks with the US.

According to the Malaysian prime minister, his country rejected the pressure inflicted by the US. He added that political issues should not be mixed with global trade matters. It must be noted that both Malaysia and the US are currently under pressure to close a global trade pact since the fast-tract trade authority of President George W. Bush is due to end in July.

Source :
http://www.tbc-world.com

US and South Korea Try to Finish International Trade Talks before Deadline

2007-12-26T18:50:00.000+07:00

The United States and South Korea are currently in the last round of their FTA (free trade agreement) talks. Both parties are trying to cut an international trade pact before the Bush administration loses its authority to negotiate fast-track trade agreements with other countries. The final round of the FTA negotiations began on Thursday last week. Since the international trade discussions started, the US and South Korea have agreed to improve their anti-trust and customs policies. Needless to say, automobiles and agriculture remain as major issues affecting the progress of the FTA talks between the two countries.

Not all South Koreans are in favor of the proposed international trade agreement. Since the two countries started the first round of their FTA talks, many South Koreans have protested against the trade deal. South Koreas, particularly farmers, have feared that the proposed free trade pact might seriously affect their country's agricultural industry.

Under the proposed FTA, South Korea wants the United States to immediately remove duties, which are imposed on the former's car exports. It must be noted that automobile industry represented a large percentage of the two-way international trade between the two countries in 2005. At that time, South Korea exported around 709,000 automobiles, while it imported 5,500 cars from the US.

Meanwhile, the United States wants South Korea to lift or ease restrictions on the former's beef exports. It must be noted that South Korea used to be one of the biggest markets for US beef products. But the Asian nation imposed a ban on US beef in 2003 due fears on mad cow disease. Although South Korea has already lifted the ban last year, the country remains strict in receiving beef shipments from the US. It must be noted that South Korea rejected initial beef shipments from the US due to their failure to comply with health and safety rules. But the US warned that the Congress might not approve the proposed international trade agreement if South Korea failed to resolve the issue.

The TPA (trade promotion authority) of President George W. Bush is due to expire in July this year. But the two countries must reach an international trade pact by the end of this month since the Bush administration must close any trade pact 90 days before the expiration of the TPA. At present, Washington is negotiating with the Congress for the renewal of the TPA, which is also vital to the on-going Doha Development Round of Talks under the World Trade Organization (WTO). International trade between the US and South Korea reached up to $72 billion in 2005.

Source :
http://www.tbc-world.com

International Trade Issues

2007-12-26T18:47:00.000+07:00

How to Market Research

2007-12-26T17:55:00.000+07:00

Market Research

This article may be help you to found how to incrase your sales advantage.
You can start to make a list, what you want to do in-depth research into area, example :
1. What kinds Product or service you will sell?
2. Whose are your competitors?
3. what is product or service excess they have and how about your product or service?
4. what is product or service weakness they have and how about your product or service?
5. Who are your costumers?
(example : Industry, government,personal business, hotel, trading company etc)
6. Where (your aim countries) do you want to export or import?
7. what trade channel you will use?
(example : public relations, sales promotion, direct marketing, commission agent, Online marketing, representative, distributor, whosesale, retail, or others)
8. Did you opened your business opportunities?
(example : advertising, direct sales, etc)

Country and Regional Market Information List

2007-12-22T15:32:00.000+07:00

Country and Regional Market Information

China
China Business Guide

Japan
Standards and Regulations
Market Reports

Korea Statistical Information System
The following section provides trade information covering each country in the regions. You will find information such as:
Hot News and Events
General Marketing Information
Customs Information & Import Documentation
Sectoral & Product Specific Information
Laws & Procedures for Licensing & Investing
General Economic Information
Key Contacts & Websites
Business Travel & Etiquette
U.S. Government Regulations Restrictions

Asia/Pacific
Asia & the Pacific

NAFTA
Canada & Mexico

Middle East and North Africa
Middle East and North Africa

Europe
Western Europe
Central and Eastern Europe
Czech Business and Trade Journal
Statistics Netherlands

Latin American and the Caribbean
Latin American and the Caribbean

Africa
Africa

Russia & the NIS
Russia & the NIS

SOURCE : foreign-trade.com

PUBLICATIONS/INFORMATION SOURCES U.S. GOVERNMENT HOTLINES

2007-12-22T15:28:00.000+07:00

The following publications and information sources are of
interest to small business exporters. The publications and
information sources are organized by chapter as they are referred
to in Breaking Into The Trade Game. Other publications and
information sources not referred to directly, but of relevance to
each chapter heading, are also included.

CHAPTER 1: MAKING THE EXPORT DECISION

EXPORTER'S GUIDE TO FEDERAL RESOURCES FOR SMALL BUSINESS
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government
Printing Office in your area.

Publication number 045-000-00263-2
Price: $4.75

Identifies major federal programs designed to assist small
business owners export.

U.S. Small Business Administration
International Trade Assistance
SBA FACT SHEET #42

Available through your nearest SBA District Office.

Information on SBA's financial and business development
assistance programs for the small business exporter.

PERIODICALS

AGEXPORTER
United States Department of Agriculture
Foreign Agricultural Service
Information Division, Room 4638-S
Washington, D.C. 20520-1000
Phone: 202/720-3329
Price: $17.00 per year (domestic delivery)
$21.00 per year (international delivery)

Magazine on international trade and trade opportunities
overseas. Published by the Department of Agriculture.

BUSINESS AMERICA
U.S. Government Printing Office
Superintendent of Documents
Washington, DC 20402
Phone: 202/783-3238 or contact the Government
Printing Office in your area.
Price: $61.00 per year; $2.50 each issue

Magazine on international trade issues and business
opportunities overseas. Published bi-weekly by the U.S.
Department of Commerce.

EXPORT TODAY
733 15th Street, N.W., Suite 1100
Washington, D.C. 20005
Phone: 202/737-1060
FAX: 202/783-5966

Price: $49.00 per year

The "how to" international business magazine for U.S.
exporters. Published ten times a year.

THE EXPORTER
34 West 37th Street
New York, NY 10018
Phone: 212/563-2772
FAX: 212/563-2798

Price: $144.00 per year

Monthly reports on the business of exporting.

FOREIGN TRADE MAGAZINE
6849 Old Dominion Drive, #200
McLean, VA 22101
Phone: 703/448-1338
FAX: 703/448-1841

Price: $45.00 per year (10 editions)

Features trade briefs, information on financing, shipping,
air cargo, trucks and rails, and current legislation.

GLOBAL TRADE MAGAZINE
North American Publishing Company
401 North Broad Street
Philadelphia, PA 19108
Phone: 215/238-5300

Price: $45.00 per year

Information on international finance, transportation and
commerce.

INTERNATIONAL BUSINESS MAGAZINE
American International Publishing Corporation
500 Mamaroneck Avenue, Suite 314
Harrison, NY 10528
Phone: 914/381-7700
FAX: 914/381-7713
Price: $48.00 per year

Reports on overseas market opportunities, global corporate
strategies, trade and political developments to assess their
impact on U.S. imports, exports, joint ventures and acquisitions.

JOURNAL OF COMMERCE
Two World Trade Center, 27th Floor
New York, NY 10048
Phone: 212/837-7000

Price: $295.00 per year

Information on domestic and foreign economic developments
plus export opportunities, agricultural trade leads, shipyards,
export ABCs and trade fair information. Feature articles on
tariff and non-tariff barriers, licensing controls, joint
ventures and trade legislation in foreign countries.

WORLD TRADE MAGAZINE
Taipan Press, Inc.
500 Newport Center Drive
Newport Beach, CA 92660
Phone: 714/640-7070
FAX: 714/640-7770

Price: $24.00 per year

Profiles of successful exporters and reports on
international trade developments.

BOOKS

A BASIC GUIDE TO EXPORTING
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.
Publication number: 003-009-00487-0
Price: $9.50

The steps involved in exporting and sources of assistance.

EXPORT SALES AND MARKETING MANUAL
by John Jagoe
Export USA Publications
4141 Parklawn Avenue South, Suite 110
Minneapolis, MN 55435
Phone: 612/893-0624
FAX: 612/903-1626

Price:$295.00 for manual
$175.00 for quarterly updates

Step-by-step procedural manual for marketing U.S. products
worldwide. The manual contains illustrations, flow charts,
worksheets and samples of export contracts, shipping documents
and effective international correspondence. Order from the
National Association of Manufacturers, P.O. Box 2000,
Kearneysville, WV 25430-2000 or call 1-800-445-6285.

EXPORTISE
The Small Business Foundation of America
1155 15th Street, N.W.
Washington, D.C. 20005
Phone: 202/223-1103

Price: $49.50

Instructional manual on conducting international business,
with detailed information on the process of exporting.

WORLD BUSINESS DIRECTORY
The World Trade Centers Association
Gale Research Inc.
Attn: David Hoagg
835 Penobscot Building
Detroit, MI 48226
Phone: 313/961-2242
FAX: 313/961-6241

Price: $395.00

Directory of trade-oriented businesses. Included is
coverage of emerging trade regions. Four volumes.

A GUIDE TO EXPANDING IN THE GLOBAL MARKET
by Ernst & Young
John Wiley and Sons, Inc.
605 Third Avenue
New York, NY 10158
Phone: 1-800-225-5945

Price: $39.95 hardcover
ISBN: 0-471-528-307

Handbook providing practical information and instructions
for global expansion.

BUILDING AN IMPORT/EXPORT BUSINESS - REVISED AND
EXPANDED EDITION
by Kenneth D. Weiss
John Wiley and Sons, Inc.
605 Third Avenue
New York, NY 10158
Phone: 1-800-225-5945
Price: $14.95
ISBN: 0-471-536-27X

A handbook designed to guide the novice through complexities
of foreign trade. Discussion includes source and outlet
management, suppliers and distributors, goods and currencies.

EXPANDING MARKETS INTERNATIONALLY
Instrument Society of America
P.O. Box 3561Durham, NC 27702
Phone: 919/549-8411
FAX: 919/549-8288
Price: $24.00 ISA members, $30.00 non-members

Includes export market sales techniques, international field
support needs, international business transactions and
international sales and marketing plans.

PROFITABLE EXPORTING: A COMPLETE GUIDE TO MARKETING
YOUR PRODUCTS ABROAD
by John S. Gordon and J.R. Arnold
John Wiley and Sons, Inc.
605 Third Avenue
New York, NY 10158
Phone: 1-800-225-5945

Price: $60.00
ISBN: 0-471-61334-7

A step-by-step guide on how to enter and succeed in the
export marketplace. Topics include markets, strategies,
organizational management, risk analysis and controls.

OTHER INFORMATION SOURCES

Export Hotline: 1-800-USA-XPORT

Presented by AT&T and the Hotline Referral Network in
cooperation with the U.S. Department of Commerce. The Export
Hotline is a corporate sponsored, nationwide fax retrieval system
providing international trade information for U.S. business. Its
purpose is to help find new markets for U.S. products and
services.

The Export Opportunity Hotline
The Small Business Foundation of America
1155 15th Street N.W.
Washington, D.C. 20005
Phone: 1-800-243-7232
In Washington, D.C. 202/223-1104

Answers questions about getting started in exporting.
Advice on product distribution; documentation; licensing and
insurance; export financing; analyzing distribution options,
export management firms; customs; currency exchange systems and
travel requirements.

DEVELOPING YOUR INTERNATIONAL BUSINESS PLAN
Lake Michigan College
International Business Center
Small Business Development Center
2755 East Napier Avenue
Benton Harbor, MI 49022-1899
Phone: 616/927-8100, extension 5116
Fax: 616/927-8103 fax

Price: $20.00 disk, $20.00 hard copy

CHAPTER 2: IDENTIFYING INTERNATIONAL MARKETS

FOREIGN ECONOMIC TRENDS
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.

Price: $67.00 per year

Commercial and economic data on a country-by-country basis.
Consists of material issues published irregularly for
approximately one year. Prepared in cooperation Department of
State.

FOREIGN TRADE REPORT FTR925
United States Merchandise Trade: Exports, General
Imports, and Imports for Consumption
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.

Price: $136.00 per year.

A monthly country-specific breakdown of imports and exports
by Standard International Trade Classification (SITC) number.

DEPARTMENT OF COMMERCE ECONOMIC BULLETIN BOARD (EBB)
U.S. Department of Commerce
14th and Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-1986
FAX: 202/482-2164 or try EBB as a guest user by dialing
202/482-3870 with PC and modem (2400 baud, 8 bit words,
no parity, 1 stop bit)

EBB is a personal computer-based electronic bulletin board
providing trade leads and up-to-date statistical releases from
the Bureau of Census, the Bureau of Economic Analysis, the Bureau
of Labor Statistics, the Federal Reserve Board and other federal
agencies.

NATIONAL TRADE DATA BANK (NTDB)
U.S. Department of Commerce
14th and Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-1986
FAX: 202/482-2164

Price: $35.00 per disk or $360.00 for one year

The NTDB is an international trade data bank compiled by 15
U.S. government agencies. It contains the latest census data on
U.S. imports and exports by commodity and country, the complete
CIA World Factbook, current market research, the Foreign Traders
Index and many other data series. The NTDB is available at over
800 federal depository libraries, or can be purchased on CD-ROM
for personal PC use.

Offices of Africa, Near East and South Asia 202/482-1064.
Categories include general and country information (Nigeria and
South Africa). For the Office of the Near East, categories
include general and country information (Algeria, Bahrain, Egypt,
Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco,
Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates
and Yemen). Categories for the Office of South Asia include
general and country information (Afghanistan, Bangladesh, Bhutan,
India, Nepal, Maldives, Pakistan and Sri Lanka).

WORLD FACTBOOK
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.

Price: $23.00

Produced by Central Intelligence Agency, this book gives
geographic and demographic information about each country around
the globe.

WORLD BANK ATLAS
The World Bank
Publication Department, 1818 H Street, N.W.
Washington, D.C. 20433
Phone: 202/473-2209

Price: $7.95 plus $3.50 shipping and handling

Gives population, gross domestic product and average growth
rates for every country.

U.N. STATISTICAL YEARBOOK, 37th Edition
United Nations Publications
Room DC 2-0853
New York, NY 10017
Phone: 212/963-8302

Price: $100.00

Economic and demographic data for 220 countries. Most
recent statistics through 1989.

INTERNATIONAL TRADE STATISTICS YEARBOOK
United Nations Publications, Room DC2-0853
New York, NY 10017
Phone: 212/963-8302

Price: $125.00

Statistical analysis of overall foreign trade by regions and
countries, as well as world exports by origin, destination and
product category.

DEMOGRAPHIC YEARBOOK
United Nations Publications
Two UN Plaza, Room DC2-0853
New York, NY 10017
Phone: 212/963-8302, 1-800-253-9646

Price: $125.00

Demographics for 220 countries. Most recent statistics
through 1989.

UNESCO STATISTICAL YEARBOOK
Unipub
4611-F Assembly Drive
Lanham, MD 20706
Phone: 1-800-274-4888

Price: $95.00

Economic and demographic data for 200 countries.

INTERNATIONAL MARKETING HANDBOOK
Gale Research Incorporated
Penobscot Building
Detroit, MI 48226
Phone: 313/961-2242
FAX: 313/961-6241

Price: $235.00

Detailed marketing profiles for 141 nations. Includes
country reports averaging 31 pages in length. 4,400 pages in
three volumes.

WORLDCASTS
Predicasts North America
11001 Cedar Avenue
Cleveland, OH 44106
Phone: 1-800-321-6388
FAX: 216/229-9944

Price: $1,300.00 for entire set; regional and product
editions, $900.00 each; single editions $450.00

Abstracts over 60,000 forecasts for products and markets in
countries outside the United States. Published annually.

EXPORTER'S ENCYCLOPEDIA
Dun's Marketing Services
Three Sylvan Way
Parsippany, NJ 07054-3896
Phone: 1-800-526-0651

Price: $530.00 per year

An annual handbook covering more than 220 world markets.

BUREAU OF THE CENSUS FOREIGN TRADE REPORT:
ANNUALU.S.EXPORTERS, HARMONIZED SCHEDULE B COMMODITY BY COUNTRY
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the GovernmentPrinting
Office in your area.

Price: $39.00

OVERSEAS BUSINESS REPORTS
U.S. Department of Commerce
Superintendent of Documents
U.S. Government Printing Office
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.

Price: Varies depending on country.

Reports provide background statistics and economic
information on specific countries. Published annually. (These
reports are also available on the National Trade Data Bank.)

ECONOMIC OUTLOOK
Organization of Economic Cooperation and Development
Publication
2001 L Street N.W., Suite 700
Washington, D.C. 20036
Phone: 202/785-6323
FAX: 202/785-0345

Price: $18.00 per issue or $225.00 per year.

Provides economic summaries of OECD's 24 member countries.
Published semi-annually.

TRADE PAGES INTERNATIONAL
1730 K Street, N.W. Suite 304
Washington, D.C. 20006
Phone: 1-800-366-5968
FAX: 202/331-3759
Price: $59.95 per country

Country-specific directories of key government and private
sector contacts. Seventeen sections of invaluable information.

DOING BUSINESS IN....SERIES
Matthew Bender and Company
1275 Broadway
Albany, NY 12204
Phone: 1-800-424-4200
Cost range: $160.00 to $835.00

A series of multiple-volume manuals on doing business in a
number of foreign countries. Information includes legal
environments, product liability, foreign investment, tax
considerations, local forms of business incorporation, foreign
investment and intellectual property.

WORLD TRADE RESOURCES GUIDE
Gale Research Incorporated
Penobscot Building
Detroit, MI 48226
Phone: 313/961-2242
FAX: 313/961-6241
Price: $169.00

Eighty of the world's largest trading nations as well as
many smaller countries. Includes country profiles, vital
statistics on population, currency exchange rates, GNP/GDP,
import/export/trade balance figures, major trading partners,
principal commodities and imported and exported.

FLASH FACTS -- TO GET EXPORT INFORMATION INSTANTLY

For several areas of the world, the information is at your
fingertips from the U.S. Department of Commerce, if you have a
touch-tone telephone and a fax. Dial the number, follow
instructions and the requested information will automatically be
faxed to you. The Automated Fax Delivery System Flash Facts are
available 24 hours-a-day, seven days a week, free of charge.

Flash Facts are available for the following regions:

Eastern Europe Business Information Center (EEBIC)
202/482-5745. Information is available on specific Eastern
European countries including Albania, Bosnia-Hercegovina,
Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia,
Lithunia, Macedonia, Poland, Romania, Slovak Republic and
Slovenia.

Doing Business in Mexico 202/482-4464. Current
trade-related documents concerning Mexico are available.
Information is also available on the North American Free Trade
Agreement; tariffs, permits and customs regulations; marketing,
distribution and finance; investment; statistics and
demographics. The same type of information is available for
Canada by calling 202/482-3101.

Office of the Pacific Basin 202/482-3875 or 202/482-3646.
Categories include general export information, regional and
country information (Australia, Cambodia, Indonesia, Korea, Laos,
Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand
and Vietnam).

Business Information Service for the Newly Independent
States (BISNIS) 202/482-3145. Categories include U.S.-Newly
Independent States trade statistics, current export and
investment opportunities and upcoming trade events, general
investment and defense conversion opportunities, World Bank and
European Bank for Reconstruction and Development (EBRD)
opportunities, export and trade opportunities and BISNIS
publications.

CHAPTER 3: FOREIGN MARKET ENTRY

EXPORT TRADING COMPANY GUIDEBOOK
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.
Price: $8.50

Produced by the Department of Commerce Office of Export
Trading Company Affairs. Provides essential information on the
functions and advantages of establishing or using export trading
companies.

DIRECTORY OF LEADING EXPORT MANAGEMENT COMPANIES
Third Edition
Bergano Book Co.
P.O. Box 190
Fairfield, CT 06430
Phone: 203/254-2054
FAX: 203/255-3817
Price: $49.50

Lists export management and trading companies, their product
areas and their foreign language capabilities.

BERGANO'S REGISTER OF INTERNATIONAL IMPORTERS
Bergano Book Co.
P.O. Box 190
Fairfield, CT 06430
Phone: 203/254-2054
FAX: 203/255-3817
Price: $95.00

Contains thousands of entries of importing firms and major
distributors in Europe, North America, the Middle East, Asia,
Africa and Latin America.

MANUFACTURERS' AGENTS NATIONAL ASSOCIATION
European Distributors
P.O. Box 3467
Laguna Hills, CA 92654
Phone: 714/859-4040
Price: $37.50

Maintains a data bank of European distributors.

COMMERCIAL NEWS USA
U.S. Department of Commerce
14th and Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-4918

For a small fee, U.S. companies can list a photo and
description of their product in Commercial News USA, which is
distributed to more than 100,000 companies and government
officials overseas.

EXPORT MAGAZINE
Johnston International Publications
950 Lee Street
Des Plaines, IL 60016
Phone: 708/296-0770
Price: $50.00 for 6 issues

Lists products of U.S. firms. Distributed worldwide.

AMERICAN LITERATURE REVIEW
Thomas International Publication
Five Penn Plaza
New York, NY 10001
FAX: 212/629-1140

Sent to businesses around the world, ALR is a catalog of the
product catalogs of hundreds of U.S. exporters.

AMERICAN EXPORT REGISTER
Thomas International Publication
Five Penn Plaza
New York, NY 10001
Phone: 212/290-7213
FAX: 212/629-1140
Price: $120.00

A two volume, 3,000 page guide featuring names of U.S.
exporters, their product listings in more than 4,200 categories,
and where they export, by region.

THE WORLD TRADE SYSTEM: A COMPREHENSIVE REFERENCE
GUIDE
Gales Research, Inc.
Penobscot Building
Detroit, MI 48226
Phone: 313/961-2242
FAX: 313/961-6241
Price: $165.00

Provides trade activity for every country of the world.
Information on principal exports, principal imports, principal
trading partners, international economic relationships,
membership in regional trading organizations and political data.

TRADE SHOWS WORLDWIDE
Gale Research, Inc.
Penobscot Building
Detroit, MI 48226
Phone: 313/961-2242
FAX: 313/937-6241
Price: $195.00 Seventh Edition

Over 5,700 scheduled exhibitions, trade shows, association
conventions, and similar events around the world are listed.

CHAPTER 4: THE EXPORT TRANSACTION

THE EXPORT OPERATION: PUTTING THE PIECES TOGETHER
Unz & Company
190 Baldwin Avenue
Jersey City, NJ 07306
Phone: 1-800-631-3098
Price: $55.00

Arranged as a series of recommendations from an industry
expert to an imaginary shipper. Provides the guidance needed to
avoid many of the pitfalls of foreign trade.

EXPORT DOCUMENTATION
International Trade Institute, Inc.
5055 North Main Street
Dayton, OH 45415
Phone: 1-800-543-2453
Price: $67.50

Examines steps that must be taken to process any
international order.

EXPORT DOCUMENTATION AND PROCEDURES
Unz & Company
190 Baldwin Avenue
Jersey City, NJ 07306
Phone: 1-800-631-3098
Price: $55.00

Leads the new exporter through every element of the export
process and introduces the experienced exporter to ways of doing
things perhaps not yet considered.

INCOTERMS 1990
ICC Publishing, Inc.
156 Fifth Avenue
New York, NY 10010
Phone: 212/206-1150
Price: $24.95

Defines the thirteen 1990 trading terms and specifies the
respective rights and obligations of buyer and seller in an
international transaction.

TREATIES AND INTERNATIONAL DOCUMENTS USED IN
INTERNATIONAL TRADE LAW
ICC Publishing, Inc.
156 Fifth Avenue
New York, NY 10010
Phone: 212/206-1150
Price: $75.00

Complete text of the most useful instruments in
international trade. Contains documents concerning contractual
relations and documents related to the regulation of
international litigations.

INTERNATIONAL EXPORTING AGREEMENTS
Matthew Bender & Company
International Division
1275 Broadway
Albany, NY 12204
Phone: 1-800-424-4200
Price: $95.00

Guide to the negotiation and the drafting of contracts for
export sales.

CHAPTER 5: FINANCING EXPORT SALES

AN INTRODUCTION TO INTERNATIONAL BANKING SERVICES
Marine Midland Bank
2 World Trade Center, 24th Floor
New York, NY 10048
Phone: 212/912-2222
Price: $10.00

INTERNATIONAL INVESTMENT & BANKING REPORT
Business International
215 Park Avenue, South
New York, NY 10003
Phone: 212/460-0600
FAX: 212/995-8837
Price: $590.00 per year

Methods, management structures and motivations of market
players of all sizes. Examines markets as they respond to
changes in the financial climate, and provides a monthly round up
of the latest events, appointments and personnel moves.

INTERNATIONAL FINANCE LIBRARY
Unz & Company
190 Baldwin Avenue
Jersey City, NJ 07306
Phone: 1-800-631-3098
Price: $189.95 for 7 titles; individual title prices
range from $39.95 to $99.95

Package includes seven titles that offer practical
information about issues involved in financing international
trade, getting paid by overseas customers and accounting for
international ventures.

DICTIONARY OF INTERNATIONAL FINANCE
John Wiley & Sons
605 Third Avenue
New York, NY 10158
Phone: 1-800-225-5945
ISBN: 1-471-836-540
Price: $55.00

Definitions of over 300 trade-related terms.

FINANCING AND INSURING EXPORTS:
A USER'S GUIDE TO EXIMBANK PROGRAMS
Eximbank Public Affairs Office
811 Vermont Avenue, N.W.
Washington, D.C. 20571
Phone: 1-800-424-5401

THE GLOBAL FINANCIAL HANDBOOK
Business International
215 Park Avenue South
New York, NY 10003
Phone: 212/460-0600
FAX: 212/995-8837
Price: $195.00

A reference manual including rules on remitting dividends
and profits, repatriation of capital, trade financing, borrowing
and investing instruments, tax rates, risk management tools and
import and export controls.

GUIDE TO DOCUMENTARY CREDIT OPERATIONS
ICC Publishing Corporation
156 Fifth Avenue, Suite 820
New York, NY 10010
Phone: 212/206-1150
Publication 415 Price: $18.95

EXPORT LETTERS OF CREDIT AND DRAFTS
International Trade Institute, Inc.
5055 North Main Street
Dayton, OH 45415
Phone: 1-800-543-2453
Price: $67.00

Explanation of letters of credit (LCs) transactions.
Includes information on how to read LCs, examples of various
types of LCs, and what to do when you cannot collect or comply.

UNIFORM RULES FOR COLLECTIONS
ICC Publishing Corporation
156 Fifth Avenue, Suite 820
New York, NY 10010
Phone: 212/206-1150

Lists international guidelines for collections.

CHAPTER 6: TRANSPORTING GOODS INTERNATIONALLY

DICTIONARY OF SHIPPING TERMS
Unz & Company
190 Baldwin Avenue
Jersey City, NJ 07306
Phone: 1-800-631-3098
Price: $49.95

Lists all terms and abbreviations used in the movement of
goods by water.

EXPORT ADMINISTRATION REGULATIONS
U.S. Government Printing Office
Superintendent of Documents
Washington, DC 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.
Price: Subscription $87.00 with updates

Provides in-depth information on export licenses,
restrictive trade practices or boycotts, import regulations,
documentation requirements and related information.

EXPORT AND IMPORT PROCEDURES AND DOCUMENTATION SERIES
Unz & Company
190 Baldwin Avenue
Jersey City, NJ 07306
Phone: 1-800-631-3098
Price: $55.00 for each document book

Series of document reference books for the most commonly
used import/export and hazardous goods forms, includes, but not
limited to, Shipper's Export Declaration, Shipper's letter of
instructions, pro forma invoice, commercial invoice and
Certificate of Origin.

EXPORT SHIPPING MANUAL
Bureau of National Affairs
Distribution Center
9435 Key West Avenue
Rockville, MD 20850
Phone: 1-800-372-1033
Price: Three manuals $572.00 for one year subscription.
Update every week as information changes.

EXPORT SHIPPING
International Trade Institute
5055 North Main Street
Dayton, OH 45415
Phone: 1-800-543-2453
Price: $67.50

Guide to understanding ocean/air tariffs, usage of ocean/air
containers, how to obtain an international freight quotation,
port marks on international cargo, international ocean/air
shipping documents, basic trade terms and service organization.

INTERNATIONAL SHIPPING
Unz & Company
190 Baldwin Avenue
Jersey City, NJ 07306
Phone: 1-800-631-3098
Price: $75.00

Comprehensive exploration of the shipping industry.

SCHEDULE B STATISTICAL CLASSIFICATION OF DOMESTIC AND
FOREIGN COMMODITIES EXPORTED FROM THE UNITED STATES
U.S. Government Printing Office
Superintendent of Documents
Washington, D.C. 20402
Phone: 202/783-3238 or contact the Government Printing
Office in your area.
Price: Subscription $77.00 with updates and
supplements (2 volumes)

PERIODICALS

JOURNAL OF COMMERCE SHIPYARDS
Two World Trade Center, 27th Floor
New York, NY 10048
Phone: 212/837-7000
Price: $295.00

Shipyards is a supplement to the Journal of Commerce. It
lists scheduled sailings of vessels worldwide.

SHIPPING DIGEST
Geyer-McAllister Publications
51 Madison Avenue
New York, NY 10010
Phone: 212/689-4411
Price: $42.00 per year

Explores current topics related to international
transportation.

CHAPTER 7: STRATEGIC ALLIANCES AND FOREIGN INVESTMENT
OPPORTUNITIES

LICENSING LAW HANDBOOK-EUROPE
Clark Boardman, Ltd.
435 Hudson Street
New York, NY 10014
Phone: 212/929-7500
Price: $90.00

General information on European licensing law.

INVESTING, LCENSING AND TRADING CONDITIONS ABROAD
Business International
215 Park Avenue, South
New York, NY 10003
Phone: 212/460-0600
FAX: 212/995-8837
Price: $1,765.00

Includes information on operating conditions and practices
for 57 countries.

INTERNATIONAL TRADE AND THE U.S. ANTITRUST LAW
Clark Boardman, Ltd.
435 Hudson Street
New York, NY 10014
Phone: 212/929-7500
Price: $115.00

Looseleaf binder covering federal international trade
regulations as they pertain to antitrust law.

WORLDWIDE GOVERNMENT DIRECTORY
Belmont Publications
1454 Belmont Street, N.W.
Washington, D.C. 20009
Phone: 1-800-332-3535 or 202/232-6334
FAX: 202/462-5478
Price: $297.00

A 1,200 page reference guide to virtually every key elected
and appointed government official in 188 nations including all
former Soviet Republics.

WORLDWIDE GOVERNMENT REPORT
Belmont Publications
1454 Belmont Street, N.W.
Washington, D.C. 20009
Phone: 1-800-332-3535 or 202/232-6334
FAX: 202/462-5478
Price: $395.00 for 26 issues

Provides analysis of ongoing changes in governmental
structures and personnel around the world plus biographical
information on the people involved. Bi-weekly.

HOTLINE NUMBERS

U.S. Small Business Administration
Answer Desk
Dial 1-800-8-ASK-SBA

SBA ONLINE
Electronic Bulletin Board
From Washington, D.C. -- 202/401-9600
Toll free -- 1-800-697-4636 for a 9600 baud modem. Set
communications software protocol for N (no parity), 8 (data
bits), and 1 (stop bit). This is a 24-hour-a-day service with
information on SBA export and financial assistance, speakers,
SBA's women's mentor program, minority programs and a mail box
for electronic conversations. -- 1-900-463-4636 for expanded
service.

U.S. Agency for International Development
Center for Trade and Investment Services (CTIS). Tailored
country-specific information. 9:00-5:30 EST Monday through
Friday
202/663-2660; 1-800-USAID-4-U
FAX 202/663-2670

U.S. Department of Agriculture
Trade Information: 202/720-7420

U.S. Customs
Customs will help you identify your product's code under the
Harmonized System (HS). Call 202/927-0370 for the phone number
of the Customs office nearest you. U.S. Customs has a NAFTA
hotline, too. Call 202/927-0066.

U.S. Department of Commerce
Trade Information Center
1-800-872-8723
TDD 1-800-833-8723

National Trade Data Bank
Help # 202/482-1986
8:30-4:30 Monday-Friday EST

Economic Bulletin Board (EBB) - 202/482-3870. This is a 24-hour
service with information on trade leads and statistics.
Compatible with 300, 1200, 2400 or 9600 bps using standard
communications software. With 9600 bps service, call
202/482-1986. Staff available Monday-Friday 8:30 to 4:30;
202/482-1986. Subscribe through the Office of Business Analysis
202/482-1986.

U.S. Center for Standards and Certification Information
Information on product standards, testing and certification.
301/975-4040

Export-Import Bank of the United States 1-800-424-5201

Overseas Private Investment Corporation 1-800-336-8799.

EXPORT HOTLINE: 1-800-USA-XPORT

Presented by AT&T and the Hotline Referral Network in
cooperation with the U.S. Department of Commerce. The Export
Hotline, a corporate-sponsored, nationwide fax retrieval system
providing international trade information for U.S. business. Its
purpose is to help find new markets for U.S. products and
services.

THE EXPORT OPPORTUNITY HOTLINE
The Small Business Foundation of America
1155 15th Street, N.W.
Washington, D.C. 20005
Phone: 1-800-243-7232
In Washington, DC: 202/223-1104

Answers questions about getting started in exporting.
Advice on product distribution; documentation; licensing and
insurance; export financing; analyzing distribution options;
export management firms; customs; currency exchange systems and
travel requirements.

SOURCE : foreign-trade.com

INTERNATIONAL TRADE ORGANIZATIONS LIST

2007-12-22T15:27:00.001+07:00

Listed below are a selected group of organizations that help
businesses engage in international trade. In addition, local
international trade organizations are abundant throughout the
United States. These groups usually meet on a regular basis,
sponsor seminars and support their members' international trade
interests. Contact the Federation of International Trade
Associations (see below) for the international trade association
in your area.

American Association of Exporters and Importers (AAEI)
11 West 42nd Street
New York, NY 10036
Phone: 212/944-2230
FAX: 212/382-2606

AAEI provides its member firms with information on trade
regulations, legislation and international developments affecting
business through weekly and quarterly publications. AAEI also
testifies before Congress and other levels of government to
address international trade related problems. Membership
consists of multinational, medium- and small-size firms
representing a broad cross section of industry sectors.

U.S. Chamber of Commerce of the United States
International Division
1615 H Street, N.W.
Washington, D.C. 20062
Phone: 202/463-5460
FAX: 202/463-3114

The U.S. Chamber of Commerce represents American business.
It lobbies the U.S. government for specific trade policies and
sponsors a number of conferences. The U.S. Chamber also supports
a number of country- or regional-specific Chambers of Commerce.

National Association of Export Companies (NEXCO)
P.O. Box 1330, Murray Hill Station
New York, NY 10156
Phone: 212/725-3311
FAX: 212/725-3312

Membership consists of exporting companies. The
organization holds monthly meetings in New York, although
membership is nationwide, and communicates through a monthly
newsletter.

National Customs Brokers and Forwarders Association of
America (NCBFAA)
One World Trade Center, Suite 1153
New York, NY 10048
Phone: 212/432-0050
FAX: 212/432-5709

NCBFAA, a membership organization of customs brokers and
forwarders, sells its membership list, which can assist in
locating customs brokers and freight forwarders in your area.

National Foreign Trade Council (NFTC)
1625 K Street, N.W.
Washington, D.C. 20006
Phone: 202/887-0278
FAX: 202/452-8160

NFTC's membership consists of about 500 U.S. manufacturing
corporations and service companies having international
operations or interests.

Small Business Exporters Association (SBEA)
4603 John Taylor Court
Annandale, VA 22003
Phone: 703/642-2490
FAX: 703/750-9655

SBEA is a trade association representing small- and
medium-size exporters.

United States Council for International Business
1212 Avenue of the Americas, 21st Floor
New York, NY 10026
Phone: 212/354-4480
FAX: 212/575-0327

The Council, a membership organization, is the U.S.
affiliate of the International Chamber of Commerce, which
monitors and facilitates trade worldwide. The Council also
oversees the Interstate Commerce Commission's Temporary Admission
Carnet System, which simplifies customs procedures governing the
temporary exportation of commercial product samples.

World Trade Centers Association (WTCA)
One World Trade Center, 35th Floor
New York, NY 10048
Phone: 212/432-2626
FAX: 212/488-0064

WTCs are located around the world, including Centers
throughout the United States and Mexico. One of the ways in
which WTCs encourage global trade is through the World Trade
Centers' trade lead data bank and messaging system, NETWORK.
World Trade Center members receive office support services,
consultant services, conferences and reciprocal membership
services at WTCs globally.

Federation of International Trade Associations (FITA)
1851 Alexander Bell Drive
Reston, VA 22091
Phone: 703/391-6108

FITA can assist you in locating an international trade
association in your geographic area.

SOURCE : foreign-trade.com

INTERNATIONAL TRADE ORGANIZATIONS LIST

2007-12-22T15:27:00.000+07:00

INTERNATIONAL CALLING CODES LIST

2007-12-22T15:25:00.004+07:00

ALBANIA 355
Tirana 42
ALGERIA 213
AMERICAN SAMOA 684
ANDORRA 33
All cities 628
ANGOLA 244
ANGUILLA 809
ANTIGUA 809
ARGENTINA 54
Buenos Aires 1
Cordoba 51
ARUBA 297
All cities 8
ASCENSION ISLAND 247
AUSTRALIA 61
Brisbane 7
Canberra 62
Melbourne 3
Perth 9
Sydney 2
AUSTRIA 43
Innsbruck 512
Salzburg 662
Vienna 1
BAHAMAS 809
BAHRAIN 973
BANGLADESH 88
Dhaka 2
BARBADOS 809
BELGIUM 32
Antwerp 3
Brussels 2
BELIZE 501
Belize City 2
BENIN 229
BERMUDA 809
BOLIVIA 591
La Paz 2
Santa Cruz 33
BOTSWANA 267
Gaborone 31
BRAZIL 55
Brasilia 61
P“rto Alegre 512
Recife 81
Rio de Janeiro 21
Sƒo Paulo 11
BRITISH VIRGIN IS. 809
BRUNEI 673
Bandar Seri Begawan 2

BULGARIA 359
Sofia 2
BURKINA FASO 226
BURUNDI 257
Bujumbura 22
CAMEROON 237

CANADA
(1 + Area Code + Local Number)
Alberta 403
British Columbia 604
Manitoba 204
New Brunswick 506
Newfoundland 709
Nova Scotia 902
Ontario (London) 519
Ontario (North Bay) 705
Ontario (Ottawa) 613
Ontario (Thunder Bay) 807
Ontario (Toronto) 416
Prince Edward Island 902
Quebec (Montreal) 514
Quebec (Quebec City) 418
Quebec (Sherbrooke) 819
Saskatchewan 306

CAPE VERDE ISLANDS 238
CAYMAN ISLANDS 809
CENTRAL AFRICAN REPUBLIC 236
CHAD REPUBLIC 235
N'Djamena 51
CHILE 56
Santiago 2
Valparaiso 31
CHINA 86
Beijing 1
Guangzhou 20
Shanghai 21
COLOMBIA 57
Barranquilla 58
Bogot 1
Cali 3
COMOROS 269
Moroni 73
CONGO 242
COOK ISLANDS 682
COSTA RICA 506
CYPRUS 357
CZECHOSLOVAKIA 42
Prague 2
DENMARK 45
Aalborg 8
Copenhagen 3
Copenhagen suburbs 4
DJIBOUTI 253
DOMINICAN REPUBLIC 809
ECUADOR 593
Cuenca 4
Quito 2
EGYPT 20
Alexandria 3
Cairo 2
EL SALVADOR 503
EQUATORIAL GUINEA 240
ETHIOPIA 251
Addis Ababa 1
FAEROE ISLANDS 298
FALKLAND ISLANDS 580
FIJI ISLANDS 679
FINLAND 358
Helsinki 0
FRANCE 33
Bordeaux 56
Marseille 91
Nice 93
Paris 1
FRENCH ANTILLES 596
FRENCH GUIANA 594
FRENCH POLYNESIA 689
GABON 241
GAMBIA 220
GERMANY 49
Bonn 228
Berlin 30
Duesseldorf 211
Frankfurt 69
Munich 89
Stuttgart 711
GHANA 233
GIBRALTAR 350
Accra 21
GREECE 30
Athens 1
Rodos 241
GREENLAND 299
GRENADA 809
GUADELOUPE 590
GUAM 671
GUATEMALA 502
Guatemala City 2
All other cities 9
GUINEA-BISSAU 245
GUINEA 224
GUYANA 592
Georgetown 2
HAITI 509
Port-au-Prince 1
HONDURAS 504
HONG KONG 852
Hong Kong 5
Kowloon 3
HUNGARY 36
Budapest 1
ICELAND 354
Reykjavik 1
INDIA 91
INDONESIA 62
Jakarta 21
IRAN 98
Tehran 21
IRAQ 964
Baghdad 1
IRELAND 353
Dublin 1
Galway 91
ISRAEL 972
Haifa 4
Jerusalem 2
Tel Aviv 3
ITALY 39
Florence 55
Naples 81
Rome 6
Venice 41
IVORY COAST 225
JAMAICA 809
JAPAN (incl. Okinawa) 81
Hiroshima 822
Kobe 78
Kyoto 75
Nagasaki 958
Osaka 6
Tokyo 3
Yokohama 45
JORDAN 962
Amman 6
KENYA 254
Nairobi 2
KIRIBATI 686
KOREA 82
Pusan 51
Seoul 2
KUWAIT 965
LESOTHO 266
LIBERIA 231
LIBYA 218
Tripoli 21
LIECHTENSTEIN 41
All cities 75
LUXEMBOURG 352
MACAO 853
MADAGASCAR 261
Antananarivo 2
MALAWI 265
MALAYSIA 60
MALDIVES 960
MALI 223
MALTA 356
MARSHALL ISLANDS 692
MAURITANIA 222
MAURITIS 230
MAYOTTE ISLAND 269
MEXICO 52
Acapulco 74
Cancun 988
Guadalajara 36
Mexico City 5
Monterrey 83
Tijuana 66
MICRONESIA 691
MONACO 33
All cities 93
MONTSERRAT 809
MOROCCO 212
Casablanca not required
Marrakech 4
Tangier 99
MOZAMBIQUE 258
Windhoek 61
Maputo 1
NAMIBIA 264
NAURU 674
NEPAL 977
THE NETHERLANDS 31
Amsterdam 20
The Hague 70
NETHERLANDS ANTILLES 599
Aruba 8
NEVIS 809
NEW CALEDONIA 687
NEW ZEALAND 64
Auckland 9
Christchurch 3
Wellington 4
NICARAGUA 505
Managua 2
NIGER 227
NIGERIA 234
NORWAY 47
Bergen 5
Oslo 2O
MAN 968
PAKISTAN 92
Islamabad 51
Karachi 21
PALAU 680
PANAMA 507
PAPUA NEW GUINEA 75
PARAGUAY 595
Asunc¡on 21
PERU 51
Arequipa 54
Lima 14
The PHILIPPINES 63
Cebu City 32
Dagupan 75
Manila 2
POLAND 48
Krakow 12
Gdansk 68
Warsaw 22
PORTUGAL 351
Lisbon 1
Ponta Delgada 96
QATAR 974
REUNION ISLAND 262
ROMANIA 40
Bucharest 16 or 17
RWANDA 250
ST. HELENA 290
ST. KITTS 809
ST. LUCIA 809
ST. PIERRE AND MIQUELON 508
ST. VINCENT AND
THE GRENADINES 809
SAIPAN 670
SAN MARINO 39
All cities 541
SAO TOME & PRINCIPE 239
SAUDI ARABIA 966
Dhahran 3
Jeddah 2
Medina 4
Riyadh 1
SENEGAL 221
SIERRA LEONE 232
SEYCHELLES ISLANDS 248
SINGAPORE 65
SOLOMON ISLANDS 677
SOUTH AFRICA 27
Cape Town 21
Durban 31
Johannesburg 11
Pretoria 12
SPAIN 34
Barcelona 3
Bilbao 4
Las Palmas de
Gran Canaria 28
Madrid 1
Seville 54
SRI LANKA 94
Colombo Central 1
SURINAME 597
SWAZILAND 268
SWEDEN 46
Goteborg 31
Stockholm 8
SWITZERLAND 41
Bern 31
Geneva 22
Lucerne 41
Zurich 1
SYRIA 963
TAIWAN 886
Taipei 2
TANZANIA 255
Dar es Salaam 51
THAILAND 66
Bangkok 2
Chieng Mai 53
TOGO 228
TONGA ISLANDS 676
TRINIDAD AND TOBAGO 809
TUNISIA 216
Tunis 1
TURKEY 90
Ankara 4
Istanbul 1
TURKS & CALICOS ISLANDS 809
UGANDA 256
UNITED ARAB EMIRATES 971
Abu Dhabi 2
UNITED KINGDOM 44
Belfast 232
Cardiff 222
Edinburgh 31
Glasgow 41
Liverpool 51
London 71
URUGUAY 598
Canelones 332
Mercedes 532
Montevideo 2
VATICAN CITY 39
All Points 6
VENEZUELA 58
Caracas 2
Maracaibo 61
Maracay 43
WESTERN SAMOA 685
YEMEN 967
Sana 2
Former YUGOSLAVIA 38
Belgrade 11
Zagreb 41
ZAIRE 243
Kinshasa 12
ZAMBIA 260
Lusaka 1
ZIMBABWE 263
Harare 4

NON-DIAL COUNTRIES
Afghanistan
Antarctica
Burma
Christmas and Cocos Islands
Cuba
Easter Island
Estonia
Laos
Latvia
Lebanon
Lithuania
Midway
Mongolia
Norfolk Island
Pitcairn Island
Somalia
Sudan
Tuvalu
Vanuata
Wake
Wallis and Futuna Islands
Western Sahara
Yemen

SOURCE : foreign-trade.com

FOREIGN CHAMBERS OF COMMERCE IN THE UNITED STATES LIST

2007-12-22T15:25:00.002+07:00

Foreign Chambers of Commerce in the United States serve to
promote and encourage international trade and can be an excellent
source of information and contacts.

ARGENTINA
Argentina-American Chamber of Commerce
10 Rockefeller Plaza, Tenth Floor
New York, NY 10020
Phone: 212/698-2238
FAX: 212/698-2239

AUSTRALIA
Australian American Chamber of Commerce, Inc.
P.O. Box 438
Honolulu, HI 96809
Phone: 808/526-2242

AUSTRIA
U.S.-Austrian Chamber of Commerce, Inc.
165 West 46th Street, Room 1112
New York, NY 10036
Phone: 212/819-0117
FAX: 212/819-0117

BELGIUM
Belgian-American Chamber of Commerce in the United States
350 Fifth Avenue, Suite 1322
New York, NY 10118
Phone: 212/967-9898
FAX: 212/629-0349

BRAZIL
Brazilian-American Chamber of Commerce in the United States
22 West 48th Street, Room 404
New York, NY 10036
Phone: 212/575-9030
FAX: 212/921-1078

Brazilian-American Chamber of Commerce
80 Southwest Eighth Street, Suite 1800
Miami, FL 33130
Phone: 305/579-9030
FAX: 305/579-9756

CHINA
U.S. Office of China Chamber of International Commerce
4310 Connecticut Avenue, N.W., Suite 136
Washington, D.C. 20008
Phone: 202/244-3244
FAX: 202/244-0478

COLOMBIA
Colombian-American Association, Inc.
150 Nassau, Suite 2015
New York, NY 10038
Phone: 212/233-7776
FAX: 212/233-7779

DENMARK
Danish-American Chamber of Commerce
825 Third Avenue
New York, NY 10019
Phone: 212/980-6240
FAX: 212/754-1904

ECUADOR
Ecuadorean-American Association, Inc.
150 Nassau, Suite 2015
New York, NY 10038
Phone: 212/808-0978
FAX: 212/233-7779

EGYPT
U.S.-Egypt Chamber of Commerce
330 East 39th Street, #32L
New York, NY 10016
Phone: 212/867-2323
FAX: 212/697-0465

FINLAND
Finnish-American Chamber of Commerce
380 Madison Avenue, 24th Floor
New York, NY 10017
Phone: 212/808-9721
FAX: 212/490-1041

FRANCE
French-American Chamber of Commerce in the United States
509 Madison Avenue, Suite 1900
New York, NY 10022
Phone: 212/371-4466
FAX: 212/371-5623

GERMANY
German-American Chamber of Commerce
40 West 57th Street, 31st Floor
New York, NY 10019-4092
Phone: 212/974-8830
FAX: 212/974-8867

GERMANY
German-American Chamber of Commerce
104 South Michigan Avenue, Suite 600
Chicago, IL 60603-5978
Phone: 312/782-8557
FAX: 312/782-3892

German-American Chamber of Commerce
One Park Plaza Building, Suite 1612
Los Angeles, CA 90010
Phone: 213/381-2236
FAX: 213/381-3449

German-American Chamber of Commerce
465 California Street, Suite 910
San Francisco, CA 94104
Phone: 415/392-2262
FAX: 415/392-1314

Representative for German Industry and Trade
1627 I Street N.W., Suite 550
Washington, D.C. 20006
Phone: 202/659-9177
FAX: 202/659-4779

Representative for German Industry and Trade
5555 San Felipe, Suite 1030
Houston, TX 77056
Phone: 713/877-1114
FAX: 713/877-1602

Representative for German Industry and Trade
3475 Lenox Road, N.E., Suite 620
Atlanta, GA 30326
Phone: 404/239-9494
FAX: 404/264-1761

GUATEMALA
Guatemala-U.S. Trade Association
299 Alhambra Circle #207
Coral Gables, FL 33134
Phone: 305/443-0343
FAX: 305/443-0699

GREECE
Hellenic-American Chamber of Commerce
29 Broadway, Room 1508
New York, NY 10006
Phone: 212/629-6380
FAX: 212/564-9281

INDIA
India Chamber of Commerce of America
445 Park Avenue
New York, NY 10022
Phone: 212/755-7181

IRELAND
Ireland-United States Council for Commerce
551 Madison Avenue, Eleventh Floor
New York, NY 10022
Phone: 212/248-0008
FAX: 212/255-6752

ISRAEL
American-lsrael Chamber of Commerce
350 Fifth Avenue, Suite 1919
New York, NY 10118-1988
Phone: 212/971-0310
FAX: 212/971-0331

American-Israel Chamber of Commerce
180 North Michigan Avenue, Suite 911
Chicago, IL 60601
Phone: 312/641-2937
FAX: 312/641-2941

ITALY
Italy-American Chamber of Commerce, Inc.
350 Fifth Avenue, Suite 3015
New York, NY 10118
Phone: 212/279-5520
FAX: 212/279-5839

JAPAN
Honolulu-Japanese Chamber of Commerce
2454 South Beretania Street
Honolulu, HI 96826
Phone: 808/949-5531
FAX: 808/949-3020

Japanese Business Association of Southern California
345 South Figueroa Street, Suite 206
Los Angeles, CA 90071
Phone: 213/485-0160
FAX: 213/626-5526

Japanese Chamber of Commerce and Industry of Chicago
401 North Michigan Avenue, Room 602
Chicago, IL 60611
Phone: 312/332-6199
FAX: 312/822-9773

JAPAN
Japanese Chamber of Commerce of New York, Inc.
145 West 57th Street, Sixth Floor
New York, NY 10019
Phone: 212/246-8001
FAX: 212/246-8002

KOREA
Korean Chamber of Commerce
3350 Wilshire Boulevard, Suite 660
Los Angeles, CA 90010
Phone: 213/480-1115
FAX: 213/480-7521

U.S.-Korea Society
725 Park Avenue
New York, NY 10021
Phone: 212/517-7730
FAX: 212/794-9761

MEXICO
Mexican Chamber of Commerce of Arizona
P.O. Box 626
Phoenix, AZ 85001
Phone: 602/252-6448

Mexican Chamber of Commerce of the County of Los Angeles
125 Paseo de La Plaza, Room 404
Los Angeles, CA 90012
Phone: 310/826-9898
FAX: 310/826-2876

U.S.-Mexico Chamber of Commerce
1211 Connecticut Avenue, N.W.
Washington, D.C. 20036
Phone: 202/296-5198
FAX: 202/822-0075

THE NETHERLANDS
Netherlands Chamber of Commerce in the United States, Inc.
One Rockefeller Plaza, Eleventh Floor
New York, NY 10020
Phone: 212/265-6460
FAX: 212/265-6402

Netherlands Chamber of Commerce in the United States
233 Peachtree Street, N.E., Suite 404
Atlanta, GA 30303
Phone: 404/523-4400
FAX: 404/522-7116

NORWAY
Norwegian-American Chamber of Commerce
Upper Midwest Chapter
229 Foshay Tower
Minneapolis, MN 55402
Phone: 612/332-3338
FAX: 612/332-1386

Norwegian-American Chamber of Commerce
20 California Street, Sixth Floor
San Francisco, CA 94111-4803
Phone: 415/986-0770
FAX: 415/986-6025

Norwegian-American Chamber of Commerce
800 Third Avenue, 23rd Floor
New York, NY 10022
Phone: 212/421-9210
FAX: 212/838-0374

PERU
Peruvian-American Association
50 West 34th Street
New York, NY 10036
Phone: 212/964-3855

THE PHILIPPINES
Philippine-American Chamber of Commerce
711 Third Avenue, 17th Floor
New York, NY 10017
Phone: 212/972-9326
FAX: 212/867-9882

Philippine-American Chamber of Commerce
c/o Philippine Consulate
447 Sutter Street
San Francisco, CA 94108
Phone: 415/433-6666

PUERTO RICO
Puerto Rico Chamber of Commerce in the United States
Box 899, Ansonia Station
New York, NY 10023
Phone: 212/924-4731

SAUDI ARABIA
Saudi Arabian Council of Chambers of Commerce and Industry
c/o Hamed Jared, Washington Representative
Embassy of Saudi Arabia
601 New Hampshire Avenue, N.W.
Washington, D.C. 20037
Phone: 202/342-3800
FAX: 202/342-0271

SPAIN
Spain-U.S. Chamber of Commerce
350 Fifth Avenue, Room 3514
New York, NY 10118
Phone: 212/967-2170
FAX: 212/564-1415

SWEDEN
Swedish-American Chamber of Commerce
599 Lexington Avenue, 42nd Floor
New York, NY 10022
Phone: 212/838-5530
FAX: 212/755-7953

Swedish-American Chamber of Commerce
230 California Street, Suite 602
San Francisco, CA 94111-4319
Phone: 415/781-4188
FAX: 415/781-4189

SWITZERLAND
Swiss-American Chamber of Commerce
37 West 67th Street
New York, NY 10023
Phone: 212/875-9688
FAX: 212/873-2836

TRINIDAD AND TOBAGO
Trinidad and Tobago Chamber of Commerce
c/o Trintoc Services, Ltd.
400 Madison Avenue, Room 803
New York, NY 10016
Phone: 212/759-3388
FAX: 212/319-9677

UNITED KINGDOM
British-American Chamber of Commerce
52 Vanderbuilt Avenue, 20th Floor
New York, NY 10017
Phone: 212/661-4060
FAX: 212/661-4074

British-American Chamber of Commerce
41 Sutter Street, Suite 303
San Francisco, CA 94104
Phone: 415/296-8645

REGIONAL ORGANIZATIONS

EUROPE
U.S. Business Council S.E. Europe
1901 North Fort Meyer Drive, Suite 303
Arlington, VA 22209
Phone: 703/527-0280
FAX: 703/527-0282

ASIA
U.S.-ASEAN Trade Council
425 Madison Avenue
New York, NY 10017
Phone: 212/688-2755
FAX: 212/371-7420

Asia Society
725 Park Avenue
New York, NY 10021
Phone: 212/288-6400
FAX: 212/517-8315

Asia Society
1785 Massachusetts Avenue, N.W.
Washington, D.C. 20036
Phone: 202/387-6500
FAX: 202/387-6945

LATIN AMERICA
Council of the Americas
680 Park Avenue
New York, NY 10021
Phone: 212/628-3200
FAX: 212/517-6247

Houston Inter-American Chamber of Commerce
510 Bering Drive, Suite 300
Houston, TX 77057
Phone: 713/975-6171
FAX: 713/975-6610

Latin Chamber of Commerce
1417 West Flagler Street
Miami, FL 33135
Phone: 305/642-3870
FAX: 305/541-2181

Latin American Manufacturing Association
419 New Jersey Avenue, S.E.
Washington, D.C. 20003
Phone: 202/546-3803
FAX: 202/546-3807

Pan American Society of the United States, Inc.
680 Park Avenue
New York, NY 10021
Phone: 212/249-8950
FAX: 212/517-6247

U.S. Hispanic Chamber of Commerce
1030 15th Street N.W., Suite 206
Washington, D.C. 20005
Phone: 202/842-1212
FAX: 202/842-3221

MIDDLE EAST
National Council on U.S.-Arab Relations
1735 I Street, N.W., Suite 515
Washington, D.C. 20006
Phone: 202/293-0801
FAX: 202/293-0903

National U.S.-Arab Chamber of Commerce
1825 K Street, N.W., Suite 1107
Washington, D.C. 20006
Phone: 202/331-8010
FAX: 202/331-8297

Northeast U.S.-Arab Chamber of Commerce
420 Lexington Avenue, Suite 2739
New York, NY 10017
Phone: 212/986-8024
FAX: 212/986-0216

U.S.-Arab Chamber of Commerce
One World Trade Center, Suite 4657
New York, NY 10048
Phone: 212/968-8024
FAX: 212/968-0216

U.S.-Arab Chamber of Commerce, Pacific
P.O. Box 422218
San Francisco, CA 94142-2218
Phone: 415/398-9200
FAX: 415/398-7111

SOURCE : foreign-trade.com

SMALL BUSINESS DEVELOPMENT CENTERS

2007-12-22T15:25:00.001+07:00

SBDC INTERNATIONAL TRADE PROGRAMS

Small Business Development Centers (SBDCs) provide a wide range of
business assistance including export counseling. There are over 900 SBDCs
throughout the United States. Some SBDCs have designated International
Trade Centers; all SBDCs provide trade counseling/referral.

SEPARATE SBDC INTERNATIONAL TRADE CENTERS

ALABAMA
University of Alabama in Birmingham
1717 Eleventh Avenue South, Suite 419
Birmingham, AL 35294-4410
Phone: 205/934-7260
FAX: 205/934-7645

Alabama International Trade Center
University of Alabama
400 North Martha Parham
Tuscaloosa, AL 35487-0396
Phone: 205/348-7621
FAX: 205/348-6974

CALIFORNIA
California Department of Commerce
801 K Street, Suite 1700
Sacramento, CA 95814
Phone: 916/324-5068
FAX: 916/322-5084

Export Small Business Development Center of Southern California 110 East
Ninth Street, Suite A-761
Los Angeles, CA 90079
Phone: 213/892-1111
FAX: 213/892-8232

FLORIDA
Trade Expansion Center
University of West Florida
Building 79, Room 196
Pensacola, FL 32514
Phone: 904/474-3016
FAX: 904/474-2030

Florida Atlantic University
P.O. Box 3091
Boca Raton, FL 33431
Phone: 407/367-2273/2271
FAX: 407/367-2272

GEORGIA
University of Georgia
Chicopee Complex
1180 East Broad Street
Athens, GA 30602
Phone: 706/542-5760
FAX: 706/542-6776

ILLINOIS
Illinois Department of Commerce and Community Affairs
620 East Adams Street
Springfield, IL 62701
Phone: 217/524-5856
FAX: 217/785-6328

College of Dupage
22nd & Lambert Road
Glen Ellyn, IL 60137
Phone: 708/858-2800, Ext. 3052
FAX: 708/790-1179

Bradley University
141 North Jobst Hall, First Floor
Peoria, IL 61625
Phone: 309/677-3075
FAX: 309/677-3386

Small Business Development Center
Southern Illinois University, Edwardsville
Campus Box 1107
Edwardsville, IL 62026
Phone: 618/692-2929
FAX: 618/692-2647

LOUISIANA
Northeast Louisiana University
College of Business Administration
700 University Avenue
Monroe, LA 71209
Phone: 318/342-5506
FAX: 318/342-5510

University of New Orleans
368 Business Administration Bldg.
New Orleans, LA 70148
Phone: 504/286-6978
FAX: 504/286-7197

MICHIGAN
Wayne State University
2727 Second Avenue
Detroit, MI 48201
Phone: 313/577-4848
FAX: 313/577-4222

Center for International Business Development
Michigan State University
6 Kellogg Center
East Lansing, MI 48824-1022
Phone: 517/353-4336 or 1-800-852-5727
FAX: 517/336-1009

MISSISSIPPI
University of Mississippi
Old Chemistry Building, Suite 216
University, MS 38677
Phone: 601/232-5001
FAX: 601/232-5650

International Trade Center
Hinds Community College
P.O. Box 1170
Raymond, MS 39154
Phone: 601/857-3536
FAX: 601/857-3535

OREGON
Lane Community College
99 West 10th Avenue, Suite 216
Eugene, OR 97401
Phone: 503/726-2250
FAX: 503/345-6006

Portland Community College SBDC
121 SW Salmon Street, Suite 210
Portland, OR 97204
Phone: 503/274-7482
FAX: 503/228-6350

PENNSYLVANIA
University of Pennsylvania
The Wharton School
444 Vance Hall
Philadelphia, PA 19104
Phone: 215/898-1219
FAX: 215/573-2135

Wharton Export Network
3733 Spruce Street, Suite 413
Philadelphia, PA 19104
Phone: 215/898-4861
FAX: 215/898-1299

Lehigh Small Business Development Center
The Rauzh Business Center, No. 37
Bethlehem, PA 18015
Phone: 215/758-3980
FAX: 215/758-5205

Kutztown University
Small Business Development Center
2986 North Second Street
Harrisburg, PA 17110
Phone: 717/233-3120
FAX: 717/233-3181

TENNESSEE
Small Business Development Center
Memphis State University
Memphis, TN 38152
Phone: 901/678-2500
FAX: 901/678-4072

TEXAS
North Texas Small Business Development Center
Dallas Community College
1402 Corinth
Dallas, TX 75215
Phone: 214/565-5833
FAX: 214/565-5813

Small Business Development Center
P.O. Box 58299
2050 Stemmons Freeway
World Trade Center, Suite 150
Dallas, TX 75258
Phone: 214/747-1300, Code 68
FAX: 214/748-5774

University of Houston
Small Business Development Center
601 Jefferson Street, Suite 2330
Houston, TX 77002
Phone: 713/752-8404
FAX: 713/752-8484

South Texas Border
Small Business Development Center
University of Texas at San Antonio
801 South Bowie
San Antonio, TX 78205
Phone: 512/224-0794
FAX: 512/222-9834

WASHINGTON
Washington State University
College of Business and Economics
245 Todd Hall
Pullman, WA 99164-4727
Phone: 509/335-1576
FAX: 509/335-0949

International Trade Institute
North Seattle Community College
9600 College Way North
Seattle, WA 98103
Phone: 206/527-3732
FAX: 206/527-3734

OTHER SBDCs ACTIVE IN INTERNATIONAL TRADE

ARIZONA
Arizona Lead Small Business Development Center
2411 West 14th Street
Tempe, AZ 85281
Phone: 602/731-8720
FAX: 602/731-8729

COLORADO
Colorado Office of Business Development
1625 Broadway, Suite 1710
Denver, CO 80202
Phone: 303/892-3809
FAX: 303/892-3848

Front Range Community College
Small Business Development Center
3645 West 112th Avenue
Westminster, CO 80030
Phone: 303/460-1032
FAX: 303/466-1623

IDAHO
Boise State University
College of Business
1910 University Drive
Boise, ID 83725
Phone: 208/385-1640
FAX: 208/385-3877

International Trade Coordinator
Lewis Clark State College
500 Eighth Avenue
Lewiston, ID 83501
Phone: 208/799-2465
FAX: 208/799-2831

INDIANA
Indiana Economic Development Council
One North Capital, Suite 420
Indianapolis, IN 46204-2248
Phone: 317/264-6871
FAX: 317/264-3102

IOWA
Iowa State University
137 Lynn Avenue
Ames, IA 50010
Phone: 515/292-6351
FAX: 515/292-0020

Northeast Iowa Small Business Development Center
Dubuque Area Chamber of Commerce
770 Town Clock Plaza
Dubuque, IA 52001
Phone: 319/588-3350
FAX: 319/557-1591

Eastern Iowa Small Business Development Center
304 West Second Avenue
Davenport, IA 52801
Phone: 319/322-4499
FAX: 319/322-3956

MASSACHUSETTS
University of Massachusetts
School of Management, Room 205
Amherst, MA 01003
Phone: 413/545-6301
FAX: 413/545-1273

MISSOURI
University of Missouri, Columbia
300 University Place
Columbia, MO 65211
Phone: 314/882-0344
FAX: 314/884-4297

Central Missouri State University
Small Business Development Center
Grinstead 75
Warrensburg, MO 64093-5087
Phone: 816/543-4402
FAX: 816/543-8159

Missouri Southern State College
Small Business Development Center
107 Matthews Hall
3950 Newman Road
Joplin, MO 64801
Phone: 417/625-9313
FAX: 417/625-9782

Southwest Missouri State University
Small Business Development Center
901 South National
Box 88
Springfield, MO 65804
Phone: 417/836-5685
FAX: 417/836-6337

MONTANA
Montana Department of Commerce
SBDC
1424 Ninth Avenue
Helena, MT 59620
Phone: 406/444-4780
FAX: 406/444-2808

NEBRASKA
University of Nebraska, Omaha
60th & Dodge Streets, CBA
Room 407
Omaha, NE 68182
Phone: 402/554-2521
FAX: 402/554-2747

University of Nebraska, Omaha
1313 Farnam, Room 132
Omaha, NE 68182
Phone: 402/595-2381
FAX: 402/595-2388

NEVADA
University of Nevada SBDC
Mail Stop 032
Reno, NV 89557-0100
Phone: 702/784-1717
FAX: 702/784-4337

NEW HAMPSHIRE
University of New Hampshire
108 McConnell Hall
Durham, NH 03824
Phone: 603/862-2200
FAX: 603/862-4468

International Resource Center
601 Spaulding Turnpike, Suite 29
Portsmouth, NH 03801-2833
Phone: 603/334-6074
FAX: 603/334-6110

NEW JERSEY
Rutgers University
Ackerson Hall, Third Floor
180 University Avenue
Newark, NJ 07102
Phone: 201/648-5950
FAX: 201/648-1110

NEW YORK
State University of New York
SUNY Plaza, S-523
Albany, NY 12246
Phone: 518/443-5398
FAX: 518/465-4992

International Trade Coordinator
Small Business Development Center
State University College, Buffalo
1300 Elmwood Avenue
Buffalo, NY 14222
Phone: 716/878-4030
FAX: 716/878-4067

Small Business Development Center
Rockland Community College at Suffern
145 College Road
Suffern, NY 10901
Phone: 914/356-0370
FAX: 914/356-0381

NORTH CAROLINA
University of North Carolina
4509 Creedmoor Road, Suite 201
Raleigh, NC 27612
Phone: 919/571-4154
FAX: 919/571-4161

OHIO
Ohio Department of Development
77 South High Street
Columbus, OH 43266-1001
Phone: 614/466-2711
FAX: 614/466-0829

Southeast Ohio Small Business Development Center
Ohio University at Athens
Innovation Center
One President Street, Suite 014
Athens, OH 45701
Phone: 614/593-1797
FAX: 614/593-1795

Toledo Small Business Development Center
218 North Huron Street
Toledo, OH 43604
Phone: 419/243-8191
FAX: 419/241-8302

Lake County Small Business Development Center
Lake County Economic Development Center
Lakeland Community College
Mentor, OH 44080
Phone: 216/951-1290
FAX: 216/953-4413

Marietta College SBDC
Marietta College
Marietta, OH 45750
Phone: 614/374-4649
FAX: 614/374-7585

RHODE ISLAND
Bryant College
1150 Douglas Pike
Smithfield, RI 02917
Phone: 401/232-6111
FAX: 401/232-6416

SOUTH CAROLINA
University of South Carolina
College of Business Administration
1710 College Street
Columbia, SC 29208
Phone: 803/777-4907
FAX: 803/777-4403

VIRGINIA
Virginia Department of Economic Development
P.O. Box 798
Richmond, VA 23206-0798
Phone: 804/371-8253
FAX: 804/371-8185

Northern Virginia
Small Business Development Center
4260 Chainbridge Road, Suite B-1
Fairfax, VA 22030
Phone: 703/993-2131
FAX: 703/993-2126

Longwood Small Business Development Center
Longwood College
515 Main Street
Farmville, VA 23901
Phone: 804/395-2086
FAX: 804/395-2359

James Madison University
Small Business Development Center
College of Business
Zane Showker Hall, Room 523
Harrisonburg, VA 22807
Phone: 703/568-3227
FAX: 703/568-3299

Small Business Development Center of Hampton Roads
420 Bank Street, P.O. Box 327
Norfolk, VA 23501
Phone: 804/622-6414 or 804/825-2957
FAX: 804/622-5563 or 804/825-2960

WASHINGTON, D.C.
Howard University
Small Business Development Center
2600 Sixth Street, N.W.
Room 128
Washington, D.C. 20059
Phone: 202/806-1550
FAX: 202/806-1777

SOURCE : foreign-trade.com

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

2007-12-22T15:19:00.000+07:00

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

Provides information about foreign standards and certification
requirements. Maintains a GATT Hotline which reports on the latest
technical notifications of proposed foreign regulations that may affect
trade.

U.S. Department of Commerce
Technology Administration
NIST
Physics Building, Room A363
Gaithersburg, MD 20899
Phone: 301/975-4040
FAX: 301/963-2871
GATT Hotline: 301/975-4041

Source : foreign-trade.com

UREAU OF EXPORT ADMINISTRATION (BXA)

2007-12-22T15:16:00.000+07:00

UREAU OF EXPORT ADMINISTRATION (BXA)

The BXA counsels U.S. firms attempting to export controlled products,
issues export licenses and holds seminars on export regulations.

U.S. Department of Commerce
Bureau of Export Administration
Office of Export Licensing
Room 1099, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-8536
FAX: 202/482-3322

BXA services include:

Export License Application and Information Network (ELAIN)
Phone: 202/482-4811

System for Tracking Export License Application (STELA)
Phone: 202/482-2752

Export Licensing Voice Information System (ELVIS)
Phone: 202/482-4811

Export Seminars
Phone: 202/482-6031

Source : foreign-trade.com

ITA/US&FCS DISTRICT OFFICES

2007-12-22T15:14:00.002+07:00

ITA/US&FCS DISTRICT OFFICES

The US&FCS oversees 47 district offices and 21 branch offices in
cities throughout the United States. ITA trade specialists can provide
export counseling, export programs and assistance through 51 District
Export Councils nationwide comprised of nearly 1,800 business and trade
experts who volunteer to help U.S. firms export.

ALABAMA
U.S. Department of Commerce
ITA/US&FCS District Office
2015 Second Avenue, North, Room 302
Birmingham, AL 35203
Phone: 205/731-1331
FAX: 205/731-0076

ALASKA
U.S. Department of Commerce
ITA/US&FCS District Office
World Trade Center Alaska, Suite 319
4201 Tudor Center Drive
Anchorage, AK 99508-5916
Phone: 907/271-6237
FAX: 907/271-6242

ARIZONA
U.S. Department of Commerce
ITA/US&FCS District Office
230 North First Avenue, Room 3412
Phoenix, AZ 85025
Phone: 602/379-3285
FAX: 602/379-4324

ARKANSAS
U.S. Department of Commerce
ITA/US&FCS District Office
425 West Capitol Avenue, Suite 700
Little Rock, AR 72201
Phone: 501/324-5794
FAX: 501/324-7380

CALIFORNIA
U.S. Department of Commerce
ITA/US&FCS District Office
11000 Wilshire Boulevard, Room 9200
Los Angeles, CA 90024
Phone: 310/575-7105
FAX: 310/575-7220

U.S. Department of Commerce
ITA/US&FCS District Office
6363 Greenwich Drive, Suite 230
San Diego, CA 92122
Phone: 619/557-5395
FAX: 619/557-6176

U.S. Department of Commerce
ITA/US&FCS District Office
250 Montgomery Street, 14th Floor
San Francisco, CA 94104
Phone: 415/705-2310
FAX: 415/705-2297

U.S. Department of Commerce
ITA/US&FCS District Office
3330 Irvine Avenue, Suite 305
Newport Beach, CA 92660-3198
Phone: 714/660-1688
FAX: 714/660-8039

COLORADO
U.S. Department of Commerce
ITA/US&FCS District Office
1625 Broadway, Suite 680
Denver, CO 80202
Phone: 303/844-3246
FAX: 303/844-5651

CONNECTICUT
U.S. Department of Commerce
ITA/US&FCS District Office
450 Main Street, Room 610 B
Hartford, CT 06103
Phone: 203/240-3530
FAX: 203/240-3473

DELAWARE
(Delaware serviced by Philadelphia ITA office)
U.S. Department of Commerce
ITA/US&FCS District Office
475 Allendale Road, Suite 202
King of Prussia, PA 19406
Phone: 215/951-4980
FAX: 215/951-7959

DISTRICT OF COLUMBIA
(D.C. serviced by Gaithersburg, MD ITA office)
U.S. Department of Commerce
ITA/US&FCS District Office
c/o National Institute of Standards and Technology
Room A102, Building 411
Gaithersburg, MD 20899
Phone: 301/975-3904
FAX: 301/948-4360

FLORIDA
U.S. Department of Commerce
ITA/US&FCS Branch Office
107 West Gaines Street, Room 366G
Tallahassee, FL 32399-2000
Phone: 904/486-6469
FAX: 904/487-1407

U.S. Department of Commerce
ITA/US&FCS District Office
224 Federal Building
51 SW First Avenue
Miami, FL 33130
Phone: 305/536-5268
FAX: 305/536-4765

U.S. Department of Commerce
ITA/US&FCS Branch Office
128 North Osceola Avenue
Clearwater, FL 34617
Phone: 813/461-0011
FAX: 813/449-2889

U.S. Department of Commerce
ITA/US&FCS Branch Office
200 East Robinson Street, Suite 695
Orlando, FL 32801
Phone: 407/648-6235
FAX: 407/648-6756

GEORGIA
U.S. Department of Commerce
ITA/US&FCS District Office
4360 Chamblee-Dunwoody Road
Suite 310
Atlanta, GA 30341
Phone: 404/452-9101
FAX: 404/452-9105

U.S. Department of Commerce
ITA/US&FCS District Office
Room A-107120 Bernard Street
Savannah, GA 31401
Phone: 912/652-4204
FAX: 912/652-4241

HAWAII
U.S. Department of Commerce
ITA/US&FCS District Office
4106 Federal Building
300 Ala Moana Boulevard
Honolulu, HI 96850
Phone: 808/541-1782
FAX: 808/541-3435

IDAHO
U.S. Department of Commerce
ITA/US&FCS District Office
700 West State Street, Second Floor
Boise, ID 83720
Phone: 208/334-3857
FAX: 208/334-2787

ILLINOIS
U.S. Department of Commerce
ITA/US&FCS District Office
55 East Monroe Street, Room 1406
Chicago, IL 60603
Phone: 312/353-4450
FAX: 312/886-8025

U.S. Department of Commerce
ITA/US&FCS District Office
Illinois Institute of Technology
201 East Loop Drive
Wheaton, IL 60187
Phone: 312/353-4332
FAX: 312/353-4336

U.S. Department of Commerce
ITA/US&FCS District Office
515 North Court Street
P.O. Box 1747
Rockford, IL 61110-C247
Phone: 815/987-8123
FAX: 815/987-8122

INDIANA
U.S. Department of Commerce
ITA/US&FCS District Office
Penn Wood, Suite 106
11405 North Penn Street
Carmel, IN 46032
Phone: 317/582-2300
FAX: 317/582-2301

IOWA
U.S. Department of Commerce
ITA/US&FCS District Office
210 Walnut Street, Suite 817
Des Moines, IA 50309
Phone: 515/284-4222
FAX: 515/284-402

KANSAS
U.S. Department of Commerce
ITA/US&FCS District Office
151 North Volutsia
Wichita, KS 67214-4695
Phone: 316/269-6160
FAX: 316/683-7326

KENTUCKY
U.S. Department of Commerce
ITA/US&FCS District Office
601 West Broadway, Room 636B
Louisville, KY 40202
Phone: 502/582-5066
FAX: 502/582-6573

LOUISIANA
U.S. Department of Commerce
ITA/US&FCS District Office
Two Canal Street
431 World Trade Center
New Orleans, LA 70130
Phone: 504/589-6546
FAX: 504/586-2337

MAINE
U.S. Department of Commerce
ITA/US&FCS District Office
77 Sewall Street
Augusta, ME 04330
Phone: 207/622-8249
FAX: 207/626-9156

MARYLAND
U.S. Department of Commerce
ITA/US&FCS District Office
431 U.S. Customhouse
40 South Gay Street
Baltimore, MD 21202
Phone: 410/962-3560
FAX: 410/962-7813

U.S. Department of Commerce
ITA/US&FCS District Office
c/o National Institute of Standards and Technology
Room A102, Building 411
Gaithersburg, MD 20899
Phone: 301/975-3904
FAX: 301/948-4360

MASSACHUSETTS
U.S. Department of Commerce
ITA/US&FCS District Office
307 World Trade Center
Boston, MA 02210
Phone: 617/565-8563
FAX: 617/565-8530

MICHIGAN
U.S. Department of Commerce
ITA/US&FCS District Office
1140 McNamara Building
477 Michigan Avenue
Detroit, MI 48226
Phone: 313/226-3650
FAX: 313/226-3657

U.S. Department of Commerce
ITA/US&FCS District Office
300 Monroe N.W.
Grand Rapids, MI 49503
Phone: 616/456-2411
FAX: 616/456-2695

MINNESOTA
U.S. Department of Commerce
ITA/US&FCS District Office
110 South Fourth Street, Suite 108
Minneapolis, MN 55401
Phone: 612/348-1638
FAX: 612/348-1650

MISSISSIPPI
U.S. Department of Commerce
ITA/US&FCS District Office
201 W. Capitol Street, Suite 310
Jackson, MS 39201-2005
Phone: 601/965-4388
FAX: 601/965-5386

MISSOURI
U.S. Department of Commerce
ITA/US&FCS District Office
8182 Maryland Avenue, Suite 303
St. Louis, MO 63105
Phone: 314/425-3305
FAX: 314/425-3381

U.S. Department of Commerce
ITA/US&FCS District Office
601 East 12th Street, Room 635
Kansas City, MO 64106
Phone: 816/426-3141
FAX: 816/426-3140

MONTANA
(Montana served by the Portland ITA Office)
U.S. Department of Commerce
ITA/US&FCS District Office
One World Trade Center, Suite 242
121 SW Salmon Street
Portland, OR 97204
Phone: 503/326-3001
FAX: 503/326-6351

NEBRASKA
U.S. Department of Commerce
ITA/US&FCS District Office
11133 O Street
Omaha, NE 68137
Phone: 402/221-3664
FAX: 402/221-3668

NEVADA
U.S. Department of Commerce
ITA/US&FCS District Office
1755 East Plumb Lane, #152
Reno, NV 89502
Phone: 702/784-5203
FAX: 702/784-5343

NEW HAMPSHIRE
(N.H. serviced by the Boston ITA Office)
U.S. Department of Commerce
ITA/US&FCS District Office
307 World Trade Center
Boston, MA 02210
Phone: 617/565-8563
FAX: 617/565-8530

NEW JERSEY
U.S. Department of Commerce
ITA/US&FCS District Office
3131 Princeton Pike
Building #6, Suite 100
Trenton, NJ 08648
Phone: 609/989-2100
FAX: 609/989-2395

NEW MEXICO
U.S. Department of Commerce
ITA/US&FCS District Office
625 Silver Avenue SW, Third Floor
Albuquerque, NM 87102
Phone: 505/766-2070
FAX: 505/766-1057

NEW YORK
U.S. Department of Commerce
ITA/US&FCS District Office
26 Federal Plaza, Room 3718
New York, NY 10278
Phone: 212/264-0634
FAX: 212/264-1356

U.S. Department of Commerce
ITA/US&FCS District Office
111 West Huron Street, Suite 1312
Buffalo, NY 14202
Phone: 716/846-4191
FAX: 716/846-5290

U.S. Department of Commerce
ITA/US&FCS District Office
111 East Avenue, Suite 220
Rochester, NY 14604
Phone: 716/263-6480
FAX: 716/325-6505

NORTH CAROLINA
U.S. Department of Commerce
ITA/US&FCS District Office
400 West Market Street
Greensboro, NC 27401
Phone: 919/333-5345
FAX: 919/333-5158

OHIO
U.S. Department of Commerce
ITA/US&FCS District Office
9504 Federal Building
550 Main Street
Cincinnati, OH 45202
Phone: 513/684-2944
FAX: 513/684-3200

U.S. Department of Commerce
ITA/US&FCS District Office
668 Euclid Avenue, Room 600
Cleveland, OH 44114
Phone: 216/522-4750
FAX: 216/522-2235

OKLAHOMA
U.S. Department of Commerce
ITA/US&FCS District Office
6601 Broadway Extension
Oklahoma City, OK 73116
Phone: 405/231-5302
FAX: 405/841-5245

U.S. Department of Commerce
ITA/US&FCS District Office
440 South Houston Street, Room 505
Tulsa, OK 74127
Phone: 918/581-765O
FAX: 918/581-2844

OREGON
U.S. Department of Commerce
ITA/US&FCS District Office
One World Trade Center, Suite 242
121 SW Salmon Street
Portland, OR 97204
Phone: 503/326-3001
FAX: 503/326-6351

PENNSYLVANIA
U.S. Department of Commerce
ITA/US&FCS District Office
475 Allendale Road, Suite 202
King of Prussia, PA 19406
Phone: 215/962-4980
FAX: 215/951-7959

U.S. Department of Commerce
ITA/US&FCS District Office
1000 Liberty Avenue, Suite 2002
Pittsburgh, PA 15222-4194
Phone: 412/644-2850
FAX: 412/644-4875

PUERTO RICO
U.S. Department of Commerce
ITA/US&FCS District Office
Room G-55, Federal Building
(Hato Rey) San Juan, PR 00918
Phone: 809/766-5555
FAX: 809/766-5692

RHODE ISLAND
U.S. Department of Commerce
ITA/US&FCS District Office
7 Jackson Walkway
Providence, RI 02903
Phone: 401/528-5104
FAX: 401/528-5067

SOUTH CAROLINA
U.S. Department of Commerce
ITA/US&FCS District Office
1835 Assembly Street, Suite 172
Columbia, SC 29201
Phone: 803/765-5345
FAX: 803/253-3614

U.S. Department of Commerce
ITA/US&FCS District Office
9 Liberty Street, Room 128
Charleston, SC 29424
Phone: 803/765-5345
FAX: 803/253-3614

SOUTH DAKOTA
(S.D. serviced by the Omaha District Office)
U.S. Department of Commerce
ITA/US&FCS District Office
11133 O Street
Omaha, NE 68137
Phone: 402/221-3664
FAX: 402/221-3668

TENNESSEE
U.S. Department of Commerce
ITA/US&FCS District Office
404 Jason Robertson Parkway, Suite 1114
Nashville, TN 37219
Phone: 615/736-5161
FAX: 615/736-2454

U.S. Department of Commerce
ITA/US&FCS District Office
22 North Front Street, Suite 200
Memphis, TN 38103
Phone: 901/544-4137
FAX: 901/575-3510

U.S. Department of Commerce
ITA/US&FCS District Office
301 East Church Avenue
Knoxville, TN 37915
Phone: 615/545-4637

TEXAS
U.S. Department of Commerce
ITA/US&FCS District Office
P.O. Box 12728, Capitol Station
Austin, TX 78711
Phone: 512/472-5059
FAX: 512/320-9424

U.S. Department of Commerce
ITA/US&FCS District Office
1100 Commerce Street, Room 7A5
Dallas, TX 75258
Phone: 214/767-0542
FAX: 214/767-8240

U.S. Department of Commerce
ITA/US&FCS District Office
2625 Federal Building
515 Rusk Street
Houston, TX 77002
Phone: 713/229-2578
FAX: 713/229-2203

UTAH
U.S. Department of Commerce
ITA/US&FCS District Office
324 South State Street, Suite 105
Salt Lake City, UT 84111
Phone: 801/524-5116
FAX: 801/524-5886

VERMONT
(Vermont served by the Boston ITA Office)
U.S. Department of Commerce
ITA/US&FCS District Office
307 World Trade Center
Boston, MA 02210
Phone: 617/565-8563
FAX: 617/565-8530

VIRGINIA
U.S. Department of Commerce
ITA/US&FCS District Office
400 North Eighth Street, Suite 8010
Richmond, VA 23240
Phone: 804/771-2246
FAX: 804/771-2390

WASHINGTON
U.S. Department of Commerce
ITA/US&FCS District Office
3131 Elliott Avenue, Suite 290
Seattle, WA 98121
Phone: 206/553-5615
FAX: 206/553-7253

WEST VIRGINIA
U.S. Department of Commerce
ITA/US&FCS District Office
405 Capitol Street, Suite 807
Charleston, WV 25301
Phone: 304/347-5123
FAX: 304/347-5408

WISCONSIN
U.S. Department of Commerce
ITA/US&FCS District Office
517 East Wisconsin Avenue, Room 596
Milwaukee, WI 53202
Phone: 414/297-3473
FAX: 414/297-3470

WYOMING
(Wyoming serviced by the Denver ITA Office)
U.S. Department of Commerce
ITA/US&FCS District Office
1625 Broadway, Suite 680
Denver, CO 80202
Phone: 303/844-3246
FAX: 303/844-5651

Source : foreign-trade.com

Trade Development Industry Officers

2007-12-22T15:14:00.001+07:00

Trade Development Industry Officers

Trade Development Industry Officers work with businesses and
associations to identify trade opportunities and obstacles by product or
service, industry sector and market. They develop export marketing plans
and programs as well as conduct trade missions, trade fairs, marketing
seminars and business counseling.

Trade Development
U.S. Department of Commerce, Room 3832
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-1461
FAX: 202/482-5697

TRADE DEVELOPMENT INDUSTRY UNITS

TECHNOLOGY AND AEROSPACE INDUSTRIES
U.S. Department of Commerce
Room 2130
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-1872
FAX: 202/482-3383

BASIC INDUSTRIES
U.S. Department of Commerce
Room 4043
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-0614
FAX: 202/482-5666

SERVICE INDUSTRIES & FINANCE
U.S. Department of Commerce
Room 1128A
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-5261
FAX: 202/482-4775

TEXTILES, APPAREL & CONSUMER GOODS
U.S. Department of Commerce
Room 3100
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-3737
FAX: 202/482-2331

In addition to the major industry sectors, cross-sectoral units
provide statistical data and analyses useful in export development and
coordinate Trade Development's overall export promotion efforts.

OFFICE OF TRADE & ECONOMIC ANALYSIS
U.S. Department of Commerce
Room 2815
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-5145
FAX: 202/482-5697

OFFICE OF EXPORT PROMOTION COORDINATION
U.S. Department of Commerce
Room 2001
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-4501
FAX: 202/482-5697

Source : foreign-trade.com

U.S. DEPARTMENT OF COMMERCE COUNTRY DESK OFFICERS LIST

2007-12-22T15:14:00.000+07:00

U.S. DEPARTMENT OF COMMERCE COUNTRY DESK OFFICERS

Commerce Department Desk Officers are a source for information on
trade potential for U.S. products in specific countries. Desk officers
collect information on country's regulations, tariffs, business practices,
economic and political developments, market size and growth and trade data.

U.S. Department of Commerce
14th and Constitution Avenue, N.W.
Washington, D.C. 20230

Country Phone (202) Room

Afghanistan 482-2954 2029B
Albania 482-4915 3413
Algeria 482-1870 2039
Angola 482-4228 3021
Antigua and
Barbuda 482-2527 3021
Anguilla 482-2527 3021

Country Phone (202) Room

Argentina 482-1548 3021
Aruba 482-2527 3020
Armenia 482-2354 3318
Azerbaijan 482-2354 3318
Australia 482-3646 2308
Austria 482-2920 3039
Bahamas 482-2527 3021
Bahrain 482-5545 2039
Baltic States 482-3952 3318
Bangladesh 482-2954 2029B
Barbados 482-2527 3021
Belarus 482-2354 3318
Belgium 482-5401 3042
Belize 482-2527 3021
Benin 482-4228 3317
Bermuda 482-2527 3021
Bhutan 482-2954 2029B
Bolivia 482-1659 3029
Botswana 482-4228 3317
Brazil 482-3871 3017
Brunei 482-3875 2308
Bulgaria 482-4915 3413
Burkina Faso 482-4388 3317
Burma 482-3875 2308
Burundi 482-4388 3317
Cambodia 482-3875 2308
Cameroon 482-5149 3317
Canada 482-3101 3303
Cape Verde 482-4388 3317
Caymans 482-2527 3021
Central African
Republic 482-4388 3020
Chad 482-4385 3317
Chile 482-1495 3017
China 482-2462 2317
Colombia 482-1859 3025
Comoro Islands 482-4564 3317
Congo 482-5149 3317
Costa Rica 482-2527 3021
Cuba 482-2527 3021
Cyprus 482-3945 3044
Czechoslovakia 482-2645 3143
Denmark 482-3254 3413
Djibouti 482-4564 3317
Dominica 482-2527 3021
Dominican
Republic 482-2527 3021
Ecuador 482-1659 3025
Egypt 482-4441 2039
El Salvador 482-2527 3020

Country Phone (202) Room

Equatorial
Guinea 482-4228 3317
Estonia 482-2354 3318
Ethiopia 482-4564 3317
European
Community 482-5278 3036
Finland 482-3254 3413
France 482-8008 3042
Gabon 482-5149 3317
Gambia 482-4388 3317
Georgia 482-2354 3318
Germany 482-2434 3409
Ghana 482-5149 3317
Greece 482-3945 3042
Grenada 482-2527 3021
Guadeloupe 482-2527 3021
Guatemala 482-2527 3021
Guinea 482-4388 3317
Guinea-Bissau 482-4388 3317
Guyana 482-2527 3021
Haiti 482-2527 3021
Honduras 482-2527 3020
Hong Kong 482-3832 2317
Hungary 482-2645 3413
Iceland 482-3254 3037
India 482-2954 2029
Indonesia 482-3875 2308
Iran 482-1870 2039
Iraq 482-4441 2039
Ireland 482-2177 3039
Israel 482-1870 2039
Italy 482-2177 3045
Ivory Coast 482-4388 3317
Jamaica 482-2527 3021
Japan 482-2425 2318
Jordan 482-1857 2039
Kazakhstan 482-2354 3318
Kenya 482-4564 3317
Korea 482-4957 2308
Kuwait 482-1860 2039
Kyrgyzstan 482-2354 3318
Laos 482-3875 2308
Lebanon 482-4441 2039
Lesotho 482-4220 3317
Liberia 482-4388 3317
Libya 482-5545 2039
Luxembourg 482-5401 3046
Macao 482-2462 2317
Madagascar 482-4504 3317
Malawi 482-4228 3317
Malaysia 482-3875 2308
Maldives 482-2954 2029B
Country Phone (202) Room

Mali 482-4388 3317
Malta 482-3748 3049
Martinique 482-2527 3021
Mauritania 482-4388 3317
Mauritius 482-4564 3317
Mexico 482-0300 3028
Moldova 482-2354 3318
Mongolia 482-2462 2317
Montserrat 482-2527 3314
Morocco 482-5545 2039
Mozambique 482-5148 3317
Namibia 482-4228 3317
Nepal 482-2954 2029B
Netherlands 482-5401 3039
Netherlands
Antilles 482-2527 3021
New Zealand 482-3647 2308
Nicaragua 482-2527 3021
Niger 482-4388 3317
Nigeria 482-4288 3317
Norway 482-5149 3037
Oman 482-1870 2039
Pacific
Islands 482-3647 2308
Pakistan 482-2954 2029B
Panama 482-2527 3020
Paraguay 482-1548 3021
People's Rep
of China 482-3583 2317
Peru 482-2521 2038
Philippines 482-3875 2308
Poland 482-2645 3413
Portugal 482-4508 3044
Puerto Rico 482-2527 3021
Qatar 482-1070 2039
Romania 482-2645 6043
Rwanda 482-4388 3317
Russia 482-2354 3318
Sƒo Tom‚ &
Pr¡ncipe 482-4338 3317
Saudi Arabia 482-4652 2039
Senegal 482-4388 3317
Seychelles 482-4564 3317
Sierra Leone 482-4388 3317
Singapore 482-3875 2308
Somalia 482-4564 3317
South Africa 482-5498 3317
Spain 482-4508 3045
Sri Lanka 482-2954 2029B
St. Barthelemy 482-2527 3021
St. Kitts-
Nevis 482-2527 3021

Country Phone (202) Room

St. Lucia 482-2527 3021
St. Martin 482-2527 3021
St. Vincent-
Grenadines 482-2527 3021
Sudan 482-4564 3317
Suriname 482-2527 3021
Swaziland 482-5148 3317
Sweden 482-4414 3037
Switzerland 482-2920 3039
Syria 482-4441 2039
Taiwan 482-4957 2308
Tajikistan 482-2354 3318
Tanzania 482-4228 3317
Thailand 482-3875 2308
Togo 482-5149 3317
Trinidad &
Tobago 482-2527 3021
Tunisia 482-1860 2039
Turkey 482-5373 3045
Turks & Caicos
Islands 482-2527 3021
Turkmenistan 482-2354 3318
Uganda 482-4564 3317
Ukraine 482-2354 3318
United Arab
Emirates 482-5545 2039
United Kingdom 482-3748 3045
Uruguay 482-1495 3021
Uzbekistan 482-2354 3318
Venezuela 482-4303 3029
Vietnam 482-3875 2308
Virgin Islands
(UK) 482-2527 3021
Virgin Islands
(US) 482-2527 3021
Yemen, Rep. of 482-1870 2039
Yugoslavia 482-2615 3413
Zaire 482-5149 3317
Zambia 482-4228 3317
Zimbabwe 482-4228 3317

Source : foreign-trade.com

US REGIONAL BUSINESS CENTERS LIST

2007-12-22T15:13:00.000+07:00

REGIONAL BUSINESS CENTERS
The Department of Commerce has established Regional Business Centers
to provide information on new opportunities for trade and investment in
various areas of the world.

Former Soviet Union
Business Information Service for the Newly Independent States (BISNIS)
U.S. Department of Commerce, Room 7413
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-4655
FAX: 202/482-2293

Eastern Europe
Eastern Europe Business Information Center (EEBIC)
U.S. Department of Commerce, Room 7412
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-2645
FAX: 202/482-4473

Japan
Japan Export Information Center (JEIC)
U.S. Department of Commerce, Room 2318
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-2425
FAX: 202/482-0469

Latin America/Caribbean
Latin America & Caribbean Business Development Center
U.S. Department of Commerce, Room 1235
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-0841
FAX: 202/482-5364

European Community
Single Internal Market 1992 Information Service (SIMIS)
U.S. Department of Commerce, Room 3036
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-5276
FAX: 202/482-2155

Source : foreign-trade.com

U.S. DEPARTMENT OF COMMERCE LIST

2007-12-22T15:11:00.000+07:00

U.S. DEPARTMENT OF COMMERCE

The U.S. Department of Commerce (DOC) encourages, serves and promotes
the nation's international trade, economic growth and technological
advancement. Within DOC, the International Trade Administration (ITA)
promotes world trade and is the official U.S. government organization that
coordinates all issues concerning trade development, international economic
policy and programs and trade administration.
ITA units include: 1) country experts, 2) industry experts and 3)
domestic and overseas commercial officers.

INTERNATIONAL TRADE ADMINISTRATION
U.S. Department of Commerce
14th & Constitution Avenue, N.W. Room 3850
Washington, D.C. 20230
Phone: 202/482-2867
FAX: 202/482-5933

INTERNATIONAL ECONOMIC POLICY OFFICES

Office of Africa
U.S. Department of Commerce
Room 3317, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-2175

Office of the Near East
U.S. Department of Commerce
Room 2039, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-4441
FAX: 202/482-0778

Office of South Asia
U.S. Department of Commerce
Room 2031, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-2954
FAX: 202/482-3550

Office of Western Europe
U.S. Department of Commerce
Room 3043, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-5341
FAX: 202/482-2897

Office of European Community Affairs
U.S. Department of Commerce
Room 3036, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-5276
FAX: 202/482-2155

Office of Eastern Europe, Russia and Independent States
U.S. Department of Commerce
Room 3413, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-1104
FAX: 202/482-4505

Office of Latin America
U.S. Department of Commerce
Room 3025, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-2436
FAX: 202/482-4726

Latin America/Caribbean Business Development Center
Room 3203, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-0841
FAX: 202/482-5933

Office of Canada
U.S. Department of Commerce
Room 3033, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-3101
FAX: 202/482-3718

Office of Mexico
U.S. Department of Commerce
Room 3826, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-0300
FLASH FACTS: 202/482-4464
FAX: 202/482-5865

Office of China, Hong Kong and Mongolia
U.S. Department of Commerce
Room 2317, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-5527
FAX: 202/482-1576

Office of the Pacific Basin
U.S. Department of Commerce
Room 3820, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-4008
FAX: 202/482-4760

Deputy Assistant Secretary for Japan
U.S. Department of Commerce
Room 2318, HCH Building
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-4527
FAX: 202/482-0469

Source : foreign-trade.com

Strategic Alliances and Foreign Investment Opportunities

2007-12-22T15:06:00.000+07:00

If your company is interested in delving further into the
international trade arena, licensing, joint ventures and off-shore
operations should be explored. While direct exporting may be a profitable
method of market entry for some businesses, licensing to a foreign company
manufacturing rights to your product or setting up a foreign manufacturing
joint venture may be viable alternatives.
In comparison, setting up off-shore manufacturing operations may be a
more economical way of doing business: Kansas-based Extru-Tech, Inc. is
exploring this possibility:

"Because of the high cost of shipping our products and the customs
duties involved, we are seriously considering setting up a manufacturing
facility in the Far East, our biggest market," says Extru-Tech President
Kenneth E. Matson.

This chapter will discuss the relative advantages and disadvantages of
alternatives to direct exporting, how to find licensing and joint venture
manufacturing partners and how to finance overseas investment.

STRATEGIC ALLIANCES

Licensing
Licensing involves a contractual arrangement whereby a company
licenses the rights to certain technological know-how, design and
intellectual property to a foreign company in return for royalties or other
kinds of payment. This arrangement worked well for a small business
exporter from Virginia:

"We export our 'Peace Frogs' T-shirts directly to Japan, but in Spain
per capita income is lower, competition from domestic producers is
stronger, and tariffs are high, so we licensed a Barcelona-based company
the rights to manufacture our product," says Peace Frogs president Catesby
Jones.

Licensing offers a small business many advantages, such as rapid entry
into foreign markets and virtually no capital requirements to establish
manufacturing operations abroad. Returns are usually realized more quickly
than for manufacturing ventures.
The disadvantages of licensing are that control may be lost over
manufacturing and marketing, and more important, that the licensee may
become a competitor if too much knowledge and know-how is transferred.
Take care to protect trademarks and intellectual property.
One way to help ensure that your intellectual property is protected is
to secure proper patent and trademark registration. In the interim before
your patent is filed, you may ask a potential licensee to sign a
confidentiality and non-disclosure agreement barring the licensee from
manufacturing the product itself, or having it manufactured through third
parties. Make sure such agreements are not in violation of laws in the
host country.
Patents should be filed with the appropriate foreign government within
one year of U.S. filing, in order to obtain patent protection under the
Paris Convention, the international agreement on patents. Patent rules
vary from country to country, so it is important to consult a competent
international patent and trademark attorney.
Licensing to a foreign company the rights to your product will require
a carefully crafted licensing agreement. Consulting an attorney is
critical since rules on licensing also vary from country to country. Be
careful that the agreement does not violate host country antitrust laws.
Under the antitrust laws of many countries, the licensee cannot set the
price at which a product will be re-sold by the licensor.

Foreign Manufacturing Joint Ventures
In contrast to licensing arrangements, foreign manufacturing joint
ventures allow for the U.S. company to have a stake and management role in
the foreign operation. Joint ventures require more of a direct investment
than licensing and require training, management assistance and technology
transfer.
Joint ventures can be equity or non-equity partnerships. Equity joint
ventures are contractual arrangements with equal partners. Non-equity
ventures involve the host country partner in the arrangement with a greater
percentage. In some countries, a joint venture is the only way for a
foreign company to set up operations. Laws often require that a certain
percentage of stock belong to a citizen of the host country.
Foreign manufacturing joint ventures are risky in that geographical
and cultural factors may interfere with the smooth running of operations.
You will have to deal with entirely new management, located in a different
country, whose first language may not be English.
Despite the drawbacks, using a foreign partner can have many benefits:

the partner will have intimate knowledge of the target market and may have
business and political contacts to make market entry easier.

Partner Selection Issues
Finding a suitable partner is critical to the success of any licensing
or manufacturing joint venture arrangement.However, this can be a time
consuming and difficult process without proper assistance. Recognizing
this fact, the United States government has a special program to facilitate
overseas partner selection.
The DOC Matchmaker Trade Delegations are an excellent way to make
joint venture and licensee contacts. Matchmakers provide one-on-one
pre-screened business appointments for U.S. companies in a foreign country.

One U.S. company which was particularly successful as a result of a
Matchmaker was Texas-based Made In USA:

"As a result of a Matchmaker trade mission, I was able to consummate
a Finnish joint venture which resulted in $6 million in sales," says Jan
Schwenk, a principal with Made in USA, a software development company.
Exports now account for 25 percent of the company's business.

A limited number of Matchmaker Trade Delegations are held each year.
For companies unable to take advantage of a Matchmaker, you may consider
the DOC's "Gold Key Service." For U.S. firms planning to visit a country,
US&FCS overseas staff will assist in developing a market strategy, setting
up orientation briefings, making introductions to potential joint venture
partners, providing interpreters for meetings and helping with follow-up
planning. Fees vary from country to country.
The steps that can be involved in foreign partner selection are as
follows:
. Contact your local DOC office. Discuss your target market and
what kind of partner you are seeking. They can tell you whether a
Matchmaker program fitting your needs is scheduled. If not, they will send
your request to the appropriate Foreign Commercial Service representative
abroad.
. A list of potential partners will be forwarded to you. Contact
each one with letter of introduction.
. After responses from potential candidates are obtained, conduct
a financial and business reference check on the most qualified candidates.
If you are unable to do this in-house, use a credit reporting firm.
. Make a trip abroad, either with a Matchmaker Trade Delegation or
individually, to meet with potential licensees or joint venture partners.
. Having made your final selection, begin contract negotiations
with the assistance of legal counsel.

Foreign Investment Opportunities
Many companies find that, as a result of exporting profitably and
licensing or joint venturing the manufacture of their products abroad, it
becomes a more viable method of market entry to set up off-shore production
operations.

Having only exported since 1988, Z-International, a Missouri-based
label manufacturer, opened a plant in Germany in 1990. The plant now
employs 12 people and invoiced over DM 4,000,000 in 1991. Company
president Fritz Zschietzschmann said that Z-International's initial
motivation in setting up the plant was to reach the European market, but
now he says, "The doors to all of Eastern Europe will be open for
business."

Off-shore manufacturing requires greater investment than licensing or
joint venture manufacturing, but also affords the greatest amount of
control over operations.
Additional factors that may induce a company to set up off-shore
production include: high transportation costs, prohibitive tariffs or
duties on imports, lower production costs and foreign government investment
incentives, such as tax holidays.
If you are seriously considering setting up an off-shore manufacturing
plant, you will need to assess whether to acquire an existing facility or
to construct a new one. The key factors in this decision-making process
are the legal and tax ramifications, where to set up operations, and how to
finance the foreign investment. An off-shore operation may offer certain
tax benefits and other inducements for your company to make an investment
in their country.

Legal and Tax Implications
Much of the decision-making surrounding joint venture or off-shore
manufacturing involves legal and tax issues. Some countries actively
encourage and promote foreign investment. Countries receptive to, or in
need of, foreign investment may have relaxed laws on kinds and amounts of
foreign investments allowed and may even offer certain tax benefits.
U.S. and host country attorneys and accountants should be an integral
part of the team you assemble to assess whether and where joint venture or
off-shore manufacturing would be profitable for your company.

Location, Partner Selection and Financial Assistance
Foreign investment requires a substantial commitment of time and money
and a certain amount of risk. Recognizing this fact, the United States
government created a separate, business-oriented agency to support American
investors entering the international marketplace.

Overseas Private Investment Corporation (OPIC)
OPIC is the lead agency assisting U.S. businesses interested in
investment overseas.
OPIC programs are available if the project:
. is a new venture, or expansion of an existing business;
. is located in a developing country where OPIC operates (OPIC
operates in 140 countries);
. will assist in the socio-economic development of the host
country;
. is approved by the host government; and
. is consistent with the economic interests of the United States
and will not have a significant adverse effect on the United States economy
or United States employment.
If your potential overseas investment fits these criteria, OPIC can be
an extremely useful resource. OPIC offers a variety of programs,
including: financing and political risk insurance to help protect your
investment and several pre-investment services.

Pre-investment Assistance
OPIC sponsors investment missions to introduce U.S. businesses to key
foreign private sector leaders, government officials and potential joint
venture partners. Since its inception in 1975, investment missions to 45
countries have been organized.
SBA-guaranteed loans may be available to fund your company's
participation in such missions.
In addition to pre-investment assistance, OPIC provides financing to
assist in the setup of overseas operations and risk insurance to mitigate
some of the problems associated with investment in developing countries.

Financing
Direct loans are available to ventures sponsored by, or significantly
involving, U.S. small businesses or cooperatives. OPIC loans range from
$500,000 to $6 million. Loan guarantees are also made to lending
institutions in the range of $2 million to $25 million, but can be as large
as $50 million.
OPIC has also underwritten a number of geographic venture funds,
including the Africa Growth Fund, the East European Environmental Fund and
the Latin America Growth Fund. If your project fits the criteria necessary
to be eligible for access these funds, you may consider applying to the
specific fund for financing assistance.

Insurance
Private investors may be hesitant to undertake long-term investments
abroad, given the political uncertainties of many developing nations. To
alleviate these concerns, OPIC insures U.S. investments against three major
types of political risks: inconvertibility, expropriation and political
violence, including civil strife.

Foreign Governments
Foreign governments, particularly in developing countries, often
sponsor special agencies to aid and facilitate foreign direct investment.
Some examples include the Mexican Investment Board (MIB), the Portuguese
Trade Commission and the Bahrain Marketing and Promotions Office. These
foreign investment promotion agencies can provide detailed market
information, joint venture leads and make contacts with key officials.
They often maintain offices in the United States.
Some countries may also have special funds or financing arrangements
to spur foreign investment in particular sectors or geographical areas.
Foreign investment promotion agencies can lead you to these sources.
Contact the appropriate foreign embassy in the United States for the name
of the agency which can assist you.

A FINAL WORD ON GOING GLOBAL

In Chapter 3, we discussed methods of market entry with an emphasis on
exporting. In this concluding chapter, we focussed on licensing, joint
venture manufacturing and off-shore production as options to be considered
along with, or in addition to, exporting.
How you decide to enter overseas markets will depend on a variety of
factors unique to your own small business. Going global can be a
challenging experience for a small business, but the rewards can be
substantial. As Roger Teigen, 1991 SBA Oklahoma Exporter of the Year, put
it:

"There is a certain greater adulation in winning when we win in the
export market rather than when we win in the U.S. market . . . it is
exciting, it is exhilarating."

Let this optimism and enthusiasm be your guide as you go global. The
U.S. Small Business Administration, as well as numerous other government
agencies at the state and federal level, support and encourage your entry
into the international arena. There are a multitude of programs and a
worldwide staff to assist you.

Source : foreign-trade.com

U.S. Small Business Administration

2007-12-22T15:01:00.001+07:00

U.S. Small Business Administration

Smaller firms seeking to participate in the international realm are
faced with challenges such as finding overseas markets, dealing with the
initial complexities of exporting and financing export sales. The U.S.
Small Business Administration (SBA) offers aid to current and potential
small or minority exporters through two major programs: 1) business
development assistance and 2) financial assistance. These programs are
directed by the SBA's Office of International Trade in Washington, DC, and
administered through the SBA's network of field offices around the country.

Office of International Trade
U.S. Small Business Administration
409 Third Street, S.W.
Washington, D.C. 20416
Phone: 202/205-6720
FAX: 202/205-7272

ALABAMA
U.S. Small Business Administration
2121 Eighth Avenue North, Suite 200
Birmingham, AL 35203-2398
Phone: 205/731-1338
FAX: 205/731-1404

ALASKA
U.S. Small Business Administration
222 West Eighth Avenue, Suite 67
Anchorage, AK 99513-7559
Phone: 907/271-4838
FAX: 907/271-4545

ARIZONA
U.S. Small Business Administration
2828 North Central Avenue, Suite 800
Phoenix, AZ 85004-1025
Phone: 602/640-2315
FAX: 602/640-2360

U.S. Small Business Administration
300 West Congress Street, Room 7-H
Tucson, AZ 85701-1319
Phone: 602/670-4739
FAX: 602/670-4763

ARKANSAS
U.S. Small Business Administration
2120 Riverfront Drive, Suite 100
Little Rock, AR 72202
Phone: 501/324-5278
FAX: 501/324-5199

CALIFORNIA
REGION IX OFFICE
U.S. Small Business Administration
71 Stevenson Street
San Francisco CA 94105-2939
Phone: 415/744-6432
FAX: 415/744-6435

U.S. Small Business Administration
2719 North Air Fresno Drive
Suite 107
Fresno, CA 93727-1547
Phone: 209/487-5605
FAX: 209/487-5636

U.S. Small Business Administration
330 North Brand Boulevard, Suite 1200
Glendale, CA 91203-2304
Phone: 818/552-3210
FAX: 818/

U.S. Small Business Administration
660 J Street, Suite 215
Sacramento, CA 95814-2413
Phone: 916/551-1440
FAX: 916/551-1439

U.S. Small Business Administration
880 Front Street, #4-S-29
San Diego, CA 92188-0270
Phone: 619/557-7269
FAX: 619/557-5894

U.S. Small Business Administration
211 Main Street, Fourth Floor
San Francisco, CA 94105-1988
Phone: 415/744-6771
FAX: 415/744-6812

U.S. Small Business Administration
901 West Civic Center Drive, Suite 160
Santa Ana, CA 92703-2352
Phone: 714/836-2494
FAX: 714/836-2528

U.S. Small Business Administration
6477 Telephone Road, Suite 10
Ventura, CA 93003-4459
Phone: 805/642-1866
FAX: 805/642-9638

COLORADO
REGION VIII OFFICE
U.S. Small Business Administration
633 - 17th Street
7th Floor North
Denver, CO 80202-2395
Phone: 303/294-7072
FAX: 303/294-7153

U.S. Small Business Administration
721 19th Street, Fourth Floor
Denver, CO 80202-2599
Phone: 303/844-3984
FAX: 303/844-6539

CONNECTICUT
U.S. Small Business Administration
330 Main Street, Second Floor
Hartford, CT 06106
Phone: 203/240-4700
FAX: 203/240-4659

DELAWARE
U.S. Small Business Administration
920 North King Street, Suite 412
Wilmington, DE 19801
Phone: 302/573-6295
FAX: 302/573-6060

DISTRICT OF COLUMBIA
U.S. Small Business Administration
1110 Vermont Avenue, N.W.,
Suite 900
P.O. Box 34500
Washington, D.C. 20005
Phone: 202/606-4000
FAX: 202/606-4225

FLORIDA
U.S. Small Business Administration
1320 South Dixie Highway, Suite 501
Coral Gables, FL 33146
Phone: 305/536-5521
FAX: 305/536-5058

U.S. Small Business Administration
7825 Baymeadows Way, Suite 100B
Jacksonville, FL 32256-7504
Phone: 904/443-1910
FAX: 904/443-1980

U.S. Small Business Administration
501 East Polk Street, Suite 104
Tampa, FL 33602-3945
Phone: 813/228-2594
FAX: 813/228-2111

GEORGIA
REGION IV OFFICE
U.S. Small Business Administration
1375 Peachtree Street, N.E., Fifth Floor
Atlanta, GA 30367-8102
Phone: 404/347-2797
FAX: 404/347-2355

U.S. Small Business Administration
1720 Peachtree Road N.W., Suite 600
Atlanta, GA 30309
Phone: 404/347-2441
FAX: 404/347-4745

U.S. Small Business Administration
52 North Main Street, Room 225
Statesboro, GA 30458
Phone: 912/489-8719
FAX: 912/233-0712

GUAM
U.S. Small Business Administration
238 Archbishop F.C. Flores Street, Room 508
Agana, GU 96910
Phone: 671/472-7277
FAX: 200/550-7365

HAWAII
U.S. Small Business Administration
300 Ala Moana Boulevard, Room 2213
P.O. Box 50207 Honolulu, HI 96850
Phone: 808/541-2973
FAX: 808/541-2976

IDAHO
U.S. Small Business Administration
1020 Main Street, Suite 290
Boise, ID 83702
Phone: 208/334-1782
FAX: 208/334-9353

ILLINOIS
REGION V OFFICE
U.S. Small Business Administration
300 South Riverside Plaza, Suite 1975
Chicago, IL 60606-6617
Phone: 312/353-5000
FAX: 312/353-3426

U.S. Small Business Administration
500 West Madison, Suite 1250
Chicago, IL 60661
Phone: 312/353-5429
FAX: 312/886-5108

U.S. Small Business Administration
511 West Capitol Street, Third Floor
Springfield, IL 62701
Phone: 217/492-4232
FAX: 217/492-4867

INDIANA
U.S. Small Business Administration
429 North Pennsylvania Street, Room 100
Indianapolis, IN 46204-1873
Phone: 317/226-7269
FAX: 317/226-7259

IOWA
U.S. Small Business Administration
373 Collins Road, N.E., Room 100
Cedar Rapids, IA 52402-3147
Phone: 319/393-2571
FAX: 319/393-7585

U.S. Small Business Administration
210 Walnut Street, Suite 749
Des Moines, IA 50309
Phone: 515/284-4026
FAX: 515/284-4572

KANSAS
U.S. Small Business Administration
100 East English Street, Suite 510
Wichita, KS 67202
Phone: 316/269-6273
FAX: 316/269-6499

KENTUCKY
U.S. Small Business Administration
600 Martin Luther King Jr. Place, Room 188
Louisville, KY 40202
Phone: 502/582-5971
FAX: 502/582-5009

LOUISIANA
U.S. Small Business Administration
1661 Canal Street, Suite 2000
New Orleans, LA 70112
Phone: 504/589-6685
FAX: 504/589-2339

U.S. Small Business Administration
500 Fannin Street, Room 8A-08
Shreveport, LA 75670
Phone: 903/935-5257
FAX: 903/935-5258

MAINE
U.S. Small Business Administration
40 Western Avenue, Room 512
Augusta, ME 04330
Phone: 207/622-8378
FAX: 207/622-8277

MARYLAND
U.S. Small Business Administration
10 South Howard Street, Room 608
Baltimore, MD 21202
Phone: 410/962-2235
FAX: 410/962-1805

MASSACHUSETTS
REGION I OFFICE
U.S. Small Business Administration
155 Federal Street, Ninth Floor
Boston, MA 02110
Phone: 617/451-2023
FAX: 617/565-8695

U.S. Small Business Administration
10 Causeway Street, Room 265
Boston, MA 02222-1093
Phone: 617/565-5590
FAX: 617/565-5598

U.S. Small Business Administration
1550 Main Street, Room 212
Springfield, MA 01103
Phone: 413/785-0268
FAX: 413/785-0267

MICHIGAN
U.S. Small Business Administration
477 Michigan Avenue, Room 515
Detroit, MI 48226
Phone: 313/226-6075
FAX: 313/226-4769

U.S. Small Business Administration
300 South Front Street
Marquette, MI 49855
Phone: 906/225-1108
FAX: 906/225-1109

MINNESOTA
U.S. Small Business Administration
100 North Sixth Street, Suite 210-C
Minneapolis, MN 55403
Phone: 612/370-2343
FAX: 612/370-2303

MISSISSIPPI
U.S. Small Business Administration
One Hancock Plaza, Suite 1001
Gulfport, MS 39501-7758
Phone: 601/863-4449
FAX: 601/863-0179

U.S. Small Business Administration
101 West Capital Street, Suite 400
Jackson, MS 39201
Phone: 601/965-4384
FAX: 601/965-4294

MISSOURI
REGION VII OFFICE
U.S. Small Business Administration
911 Walnut Street, 13th Floor
Kansas City, MO 64106
Phone: 816/426-7762
FAX: 816/426-5559

U.S. Small Business Administration
Lucas Place
323 West Eighth Street, Suite 501
Kansas City, MO 64105
Phone: 816/374-5868
FAX: 816/374-6759

U.S. Small Business Administration
815 Olive Street, Room 242
St. Louis, MO 63101
Phone: 314/539-6600
FAX: 314/539-3785

U.S. Small Business Administration
620 South Glenstone, Suite 110
Springfield, MO 65802
Phone: 417/864-7670
FAX: 417/864-4108

MONTANA
U.S. Small Business Administration
301 South Park, Room 528, Drawer 10054
Helena, MT 59626
Phone: 406/449-5381
FAX: 406/449-5474

NEBRASKA
U.S. Small Business Administration
11145 Mill Valley Road
Omaha, NE 68154
Phone: 402/221-3604
FAX: 402/221-3680

NEVADA
U.S. Small Business Administration
301 East Stewart Street, Room 301
Las Vegas, NV 89125-2527
Phone: 702/388-6611
FAX: 702/388-6469

U.S. Small Business Administration
50 South Virginia Street, Room 238
Reno, NV 89505-3216
Phone: 702/784-5268
FAX: 702/784-5069

NEW HAMPSHIRE
U.S. Small Business Administration
143 North Main Street, Suite 202
Concord, NH 03301-1257
Phone: 603/225-1400
FAX: 603/225-1409

NEW JERSEY
U.S. Small Business Administration
Military Park Building, Fourth Floor
60 Park Place
Newark, NJ 07102
Phone: 201/645-2434
FAX: 210/645-6265

U.S. Small Business Administration
2600 Mt. Ephrain Avenue
Camden, NJ 08104
Phone: 609/757-5183
FAX: 609/757-5335

NEW MEXICO
U.S. Small Business Administration
625 Silver Avenue, S.W., Third Floor
Albuquerque, NM 87102
Phone: 505/766-1870
FAX: 505/766-1057

NEW YORK
REGION II OFFICE
U.S. Small Business Administration
26 Federal Plaza, Room 31-08
New York, NY 10278
Phone: 212/264-1450
FAX: 212/264-0900

U.S. Small Business Administration
Clinton and Pearl
Albany, NY 12207
Phone: 518/472-6300
FAX: 518/472-7138

U.S. Small Business Administration
111 West Huron Street, Suite 1311
Buffalo, NY 14202
Phone: 716/846-4301
FAX: 716/846-4418

U.S. Small Business Administration
333 East Water Street
Elmira, NY 14901
Phone: 607/734-8130
FAX: 607/734-4656

U.S. Small Business Administration
35 Pinelawn Road, Room 102E
Melville, NY 11747
Phone: 516/454-0750
FAX: 516/454-0769

U.S. Small Business Administration
100 State Street, Room 410
Rochester, NY 14614
Phone: 716/263-6700
FAX: 716/263-3146

U.S. Small Business Administration
100 South Clinton Street, Room 1071
Syracuse, NY 13260
Phone: 315/423-5383
FAX: 315/423-5370

NORTH CAROLINA
U.S. Small Business Administration
200 North College Street, Suite A2015
Charlotte, NC 28202-2137
Phone: 704/344-6587
FAX: 704/344-6769

NORTH DAKOTA
U.S. Small Business Administration
657 Second Avenue North, Room 218
P.O. Box 3086
Fargo, ND 58108
Phone: 701/239-5131
FAX: 701/239-5645

OHIO
U.S. Small Business Administration
Federal Building, Suite 850
525 Vine Street
Cincinnati, OH 45202
Phone: 513/684-2814
FAX: 513/684-3251

U.S. Small Business Administration
1111 Superior Avenue, Suite 630
Cleveland, OH 44114-2507
Phone: 216/522-8236
FAX: 216/522-2038

U.S. Small Business Administration
2 Nationwide Plaza, Suite 1400
Columbus, OH 43215-2542
Phone: 614/469-6860
FAX: 614/469-2391

OKLAHOMA
U.S. Small Business Administration
200 Northwest Fifth Street, Suite 670
Oklahoma City, OK 73102
Phone: 405/231-4301
FAX: 405/231-4876

OREGON
U.S. Small Business Administration
222 S.W. Columbia Street, Suite 500
Portland, OR 97201-6605
Phone: 503/326-2682
FAX: 503/326-2808

PENNSYLVANIA
REGION III OFFICE
U.S. Small Business Administration
475 Allendale Road, Suite 201
King of Prussia, PA 19406
Phone: 215/962-3700
FAX: 215/962-3743

U.S. Small Business Administration
100 Chesnut Street, Room 309
Harrisburg, PA 17101
Phone: 717/782-3840
FAX: 717/782-4839

U.S. Small Business Administration
960 Penn Avenue, Fifth Floor
Pittsburgh, PA 15222
Phone: 412/644-2780
FAX: 412/644-5446

U.S. Small Business Administration
20 North Pennsylvania Avenue, Room 2327
Wilkes-Barre, PA 18702
Phone: 717/826-6497
FAX: 717/826-6287

PUERTO RICO
U.S. Small Business Administration
Carlos Chardon Avenue, Room 691
Hato Rey, PR 00918
Phone: 809/766-5572
FAX: 809/766-5309

RHODE ISLAND
U.S. Small Business Administration
380 Westminister Mall, Fifth Floor
Providence, RI 02903
Phone: 401/528-4561
FAX: 401/528-4539

SOUTH CAROLINA
U.S. Small Business Administration
1835 Assembly Street, Room 358
P.O. Box 2786
Columbia, SC 29201
Phone: 803/765-5298
FAX: 803/765-5962

SOUTH DAKOTA
U.S. Small Business Administration
101 Main Avenue, Suite 101
Sioux Falls, SD 57102
Phone: 605/330-4231
FAX: 605/330-4215

TENNESSEE
U.S. Small Business Administration
50 Vantage Way, Suite 201
Nashville, TN 37228-1504
Phone: 615/736-5039
FAX: 615/736-7232

TEXAS
REGION VI OFFICE
U.S. Small Business Administration
8625 King George Drive, Building C
Dallas, TX 75235-3391
Phone: 214/767-7659
FAX: 214/767-7870

U.S. Small Business Administration
300 East Eighth Street, Room 520
Austin, TX 78701
Phone: 512/482-5288
FAX: 512/482-5290

U.S. Small Business Administration
Wilson Tower
606 North Carancahus, Suite 1200
Corpus Christi, TX 78476
Phone: 512/888-3331
FAX: 512/888-3418

U.S. Small Business Administration
10737 Gateway West, Suite 320
El Paso, TX 79935
Phone: 915/540-5676
FAX: 915/540-5636

U.S. Small Business Administration
4300 Amon Carter Boulevard, Suite 114
Ft. Worth, TX 76155
Phone: 817/885-6504
FAX: 817/885-6516

U.S. Small Business Administration
222 East Van Buren, Suite 500
Harlingen, TX 78550
Phone: 210/427-8533
FAX: 210/427-8537

U.S. Small Business Administration
9301 Southwest Freeway, Suite 550
Houston, TX 77074
Phone: 713/773-6500
FAX: 713/773-6550

U.S. Small Business Administration
1611 10th Street, Suite 200
Lubbock, TX 79401
Phone: 806/743-7462
FAX: 806/743-7487

U.S. Small Business Administration
505 East Travis, Room 103
Marshall, TX 75670
Phone: 903/935-5257
FAX: 903/935-5258

U.S. Small Business Administration
7400 Blanco Road, Suite 200
San Antonio, TX 78216
Phone: 210/229-4501
FAX: 210/229-4556

UTAH
U.S. Small Business Administration
125 South State Street, Room 2237
Salt Lake City, UT 84138-1195
Phone: 801/524-3215
FAX: 801/524-4160

VERMONT
U.S. Small Business Administration
87 State Street, Room 205
Montpelier, VT 05602
Phone: 802/828-4422
FAX: 802/828-4485

VIRGIN ISLANDS
U.S. Small Business Administration
4200 United Shopping Plaza, Suite 7
Christiansted
St. Croix, VI 00820-4487
Phone: 809/778-5380
FAX: 809/778-1012

U.S. Small Business Administration
Federal Office Building, Room 210
Veterans Drive
St. Thomas, VI 00802
Phone: 809/774-8530
FAX: 809/774-2312

VIRGINIA
U.S. Small Business Administration
400 North Eighth Street, Room 3015
P.O. Box 10126
Richmond, VA 23240
Phone: 804/771-2400
FAX: 804/771-8018

WASHINGTON
REGION X OFFICE
U.S. Small Business Administration
2615 Fourth Avenue, Room 440
Seattle, WA 98121
Phone: 206/553-5676
FAX: 206/553-4155

U.S. Small Business Administration
915 Second Avenue, Room 1792
Seattle, WA 98174-1088
Phone: 206/220-6520
FAX: 206/220-6570

U.S. Small Business Administration
Farm Credit Building, 10th Floor, East
West 601 First Avenue
Spokane, WA 99204-0317
Phone: 509/353-2806
FAX: 509/353-2829

WEST VIRGINIA
U.S. Small Business Administration
168 West Main St., Fifth Floor
Clarksburg, WV 26301
Phone: 304/623-5631
FAX: 304/623-0023

U.S. Small Business Administration
550 Eagan Street, Suite 309
Charleston, WV 25301
Phone: 304/347-5220
FAX: 304/347-5350

WISCONSIN
U.S. Small Business Administration
212 East Washington Avenue, Room 213
Madison, WI 53703
Phone: 608/264-5542
FAX: 608/264-5541

U.S. Small Business Administration
310 West Wisconsin Avenue, Suite 400
Milwaukee, WI 53203
Phone: 414/297-1231
FAX: 414/297-1377

WYOMING
U.S. Small Business Administration
100 East B Street, Room 4001
P.O. Box 2839
Casper, WY 82602-2839
Phone: 307/261-5761
FAX: 307/261-5499

Source : foreign-trade.com

Transporting Goods Internationally

2007-12-22T15:01:00.000+07:00

Now that financing has been arranged, steps must be taken to ensure
that the goods for export are packed and shipped properly to reach their
destination. When transporting goods internationally, proper documentation
and correct packaging are critical to the export process.
One of the main differences between selling domestically and exporting
is the documentation required. Providing proper documentation with your
shipments is essential, if the goods are to arrive safely and on time.
Although the paperwork involved in exporting may be more burdensome
and costly than that required for domestic sales, it should not deter you.
Consider the case of Hood Equipment Inc. of Iron River, Wisconsin:

"We began exporting our forestry equipment in 1977. Now exports
amount to 40 percent of our sales. While export documentation requirements
can be time consuming, 40 percent of our sales depend on it so we have to
do it," says export manager Joyce Hood. Ms. Hood credits her company's
international freight forwarder as "a great help."

THE ROLE OF THE FREIGHT FORWARDER

The international freight forwarder acts as an agent for the exporter
in moving cargo to the overseas destination. These agents are familiar
with the import/export rules and regulations of foreign countries, methods
of shipping, United States government regulations and the documents
connected with foreign trade.
Freight forwarders can assist with an order from the start by advising
the exporter of the freight costs, port charges, consular fees, costs of
special documentation and insurance costs as well as their handling fees --
all of which help in preparing the pro-forma invoice and price quotations.
Freight forwarders may also recommend the best type of packing for
protecting the merchandise in transit; they can arrange to have the
merchandise packed at the port or containerized. The cost for their
services is a legitimate export cost that should be figured into the price
charged to the customer.
When the order is ready to ship, freight forwarders should be able to
review the letter of credit, commercial invoices, packing list to ensure
that everything is in order. Freight forwarders can also reserve the
necessary space on board an ocean vessel, if the exporter desires.
The exporter may ask the freight forwarder to make arrangements with
the customs broker to ensure that the goods comply with customs export
documentation regulations. In addition, they may have the goods delivered
to the carrier in time for loading. Freight forwarders may also prepare a
bill of lading and any special required documentation. After shipment,
they can forward all documents directly to the customer or to the paying
bank.
In preparing your goods for international transport, you must first
determine what mode of transport you will use. When shipping to Mexico and
Canada, land transportation may be the preferred method of transport.
Other forms of international shipments are sea and air.
Maritime shipping is almost always slower and less expensive than air.

However, an exporter must factor in the additional costs of sea freight,
such as surface transportation to the dock. Another factor is the time
value of money: payment may not be made until the ship reaches its
destination -- ocean freight can be significantly longer than air freight.
Your international freight forwarder can assist in weighing the pros and
cons of different modes of transportation.
Once you have decided on the best mode of transporting your goods, you
must begin to compile the necessary documents.

DOCUMENTATION
Export Documentation Checklist -- Documents Prepared Before the Shipment

Commercial Invoice/Consular Invoice
After the pro-forma invoice is accepted, the exporter must prepare a
commercial invoice. The commercial invoice is necessary for both the
exporter and importer.
The exporter needs the commercial invoice to prove ownership and
secure payment. The description of the goods on the commercial invoice
must correspond exactly to the description in the letter of credit or other
method of payment. There can be no exceptions.
The importer needs the commercial invoice since it is often used by
Customs authorities to assess duties. For this reason, it is common
practice to prepare a commercial invoice in English and in the language of
the destination country. The freight forwarder can advise you when a
translated copy is necessary.
Similar to a commercial invoice, a consular invoice is required by
certain countries. The consular invoice must be prepared in the language
of the destination country and can be obtained from the country's
consulate, and often must be "consularized."
In some countries, the commercial invoice must be prepared on a
special form known as a "customs invoice." Your importer may request this
of you.

Export License
Export controls are based on the type of goods being shipped and their
ultimate destination. Most exports do not require a license, per se.
Technically, most exports are shipped under a "general" license which does
not require an application.
Should your particular export be subject to export controls, then a
"validated" license must be obtained. In general, your export would
require a "validated" license if export of the goods would: threaten
United States national security; affect certain foreign policies of the
United States; or create short supply in domestic markets. Check with the
U.S. Department of Commerce's (DOC's) Bureau of Export Administration (BEA)
to determine if your product may be subject to export controls (see Part
II, The Exporter's Directory).

Shipper's Export Declaration (SED)
The most common document used by exporters is the Shipper's Export
Declaration (Form 7525-V), for mail shipments valued at more than $500, and
required for other shipments valued at more than $2,500. In addition, a
SED must be prepared for all shipments covered by an Individually Validated
Export License (IVL), regardless of value. The SED enables the Bureau of
the Census to monitor for statistical purposes the kinds of products being
exported from the United States. The SED must be presented to the carrier
before the shipment departs.
A sample SED follows:

A Shipper's Export Declaration Form 7525-V cannot be reproduced here. The
form is available through the Superintendent of Documents, Government
Printing Office, Washington, DC 20402 and local Customs district offices.

Three items appearing on the SED may cause confusion:

Item 14, "Schedule B Description of Commodities"
You will need to determine the official description of the commodity
you are shipping by obtaining a copy of the United States government
publication entitled, Harmonized System/Schedule B Statistical
Classification of Domestic and Foreign Commodities Exported from the United
States and then transfer the appropriate description onto the SED. This is
available from the Government Printing Office and from most freight
forwarders.

Item 21, "Validated License No./General License Symbol"
If your product for export is controlled, the "validated" license
number is inserted in this space. If you are exporting under a "general
license," one of eight possible "General License Symbols" must be noted.
The three most commonly used symbols are:
. G-Dest (General Destination): authorizes the export of any items
not requiring a validated license
. GLV (General License Limited Value): authorizes the export of a
single shipment of limited-value items
. GTE (General License for Temporary Export): authorizes the export
of items for trade shows, training or temporary use abroad

Item 22, ECCN (Export Control Commodity Number)
Only necessary when a "validated" license is required, the ECCN is the
number assigned to your commodity from the Bureau of Export
Administration's Commodity Control List. This special number must be
supplied on the SED.

Shipper's Export Declaration
SED forms can be obtained through international freight forwarders, the
Government Printing Office or local Customs district offices. The "Exact
Way to Fill Out the Shipper's Export Declaration" is available from the
Bureau of the Census, Washington, DC 20233.

Certificate of Origin (where applicable)
Although the commercial invoice may contain a statement of origin,
some countries (particularly those subject to certain free trade treaties,
such as Canada or the Caribbean Basin) require Certificates of Origin.
Certificates of Origin allow for preferential duty rates if the exporter's
country has an agreement with the importer's country to allow entry of
certain products at lower tariffs.

Export Packing List
Considerably more detailed and informative than a standard domestic
packing list, an export packing list itemizes the material in each
individual package and indicates the type of package: box, crate, drum,
carton, etc. It shows the individual net, legal, tare and gross weights
and measurements for each package (in both U.S. and metric systems).
Package markings should be shown along with the shipper's and buyer's
references. A copy of the packing list should be attached to the outside
of a package in a waterproof envelope marked "packing list enclosed." The
list is used by the shipper or forwarding agent to determine the total
shipment weight and volume and whether the correct cargo is being shipped.
In addition, customs officials (both U.S. and foreign) may use the list to
check the cargo. The original packing list should be forwarded along with
your other original documents in line with the conditions of sale.

Insurance Certificate
If the exporter is providing insurance, a certificate will be needed
confirming the type and amount of coverage for the goods being shipped.
Normal accepted practice for coverage is 110 percent of the CIF value.
This certificate should be made in negotiable form and must be endorsed
before submitting to the bank.

Inspection Certificate
Many foreign purchasers request that the seller certify that the goods
being shipped meet certain specifications. This certification is usually
performed by an independent inspection firm.

Documents Used During the Inland Movement of the Goods

Shipper's Instructions
As an exporter, you are responsible for providing your freight
forwarder with the necessary information regarding your shipment. The more
details you provide, the greater the chances of your goods moving problem
free. Your freight forwarder can provide you with a commonly used form for
noting instructions.

Inland Bill of Lading
Inland bills of lading document the transportation of goods between
inland points and the port from where the export will emanate. Rail
shipments use "waybills on rail." "Pro-forma" bills of lading are used in
trucking.

Delivery Instructions
This document is prepared by the freight forwarder giving instructions
to the trucking or railroad company where the goods for export are to be
delivered.

Dock Receipts
This document transfers shipping obligations from the domestic to the
international carrier as the shipment reaches the terminal.

Bill of Lading/Air Waybill
Bills of lading and air waybills provide evidence to title of the
goods and set forth the international carrier's responsibility to transport
the goods to their named destination.
There are two types of ocean bills of lading used to transfer
ownership:
. Straight (non-negotiable): provides for delivery of goods to the
person named in the bill of lading. The bill must be marked
"non-negotiable."
. Shipper's Order (negotiable): provides for delivery of goods to
the person named in the bill of lading or anyone designated.
The shipper's order is used with draft or letter-of-credit shipments
and enables the bank involved in the export transaction to take title to
the goods if the buyer defaults. The bank does not release title to the
goods to the buyer until payment is received. The bank does not release
funds to the exporter until conditions of sale have been satisfied.
When using air freight, "air waybills" take the place of bills of
lading. Air waybills are only issued in non-negotiable form, therefore the
exporter and the bank lose title to the goods once the shipment commences.
Most air waybills also contain a customs declaration form.

PACKAGING
Goods shipped for export require substantially greater handling than
domestic shipments. The exporter must pack the goods to ensure that the
weight and measurements are kept to a minimum, breakage is avoided, the
container is theft proof, and that the goods do not suffer the stresses of
ocean shipment, such as excess moisture.
In addition to proper packing, the exporter should be aware that
certain markings are necessary on goods transported internationally. Some
countries require that the country of origin be marked on the outside of
the container, and even have regulations as to how the mark of origin
should appear.
The second type of marking with which the exporter should be familiar
is labeling. Food and drugs must often carry special labeling as
determined by the laws of the country of destination.
Third, certain "shipping marks" must appear on the outside of the
package. The weight and dimensions should be visible and any special
instructions should be shown, and you may want to repeat these instructions
in the language of the importer's country.
If your business is not equipped to package your goods for export,
there are export packaging companies which can perform this service for
you. Ask your international freight forwarder for a list of export
packaging companies in your area.
Many businesses, after achieving success in exporting, or as an
alternative to exporting, contemplate joint ventures or licensing
agreements with foreign companies to produce goods overseas. Some
companies even set up their own off-shore operations. "Strategic Alliances
and Foreign Investment Opportunities"

Source : foreign-trade.com

Export Financing

2007-12-22T14:56:00.000+07:00

FINANCING EXPORT SALES

Few would disagree that small businesses must look overseas for profit
opportunities in the 1990s. However, to compete successfully, small firms
must offer financing arrangements that are competitive with exporters of
other nations. This chapter will discuss three major influences on an
exporter's ability to arrange competitive financing:
. today's banking environment
. how to approach a lender
. methods of payment

UNDERSTANDING THE BANKING ENVIRONMENT

In the United States, most small firms turn first to their local banks
for export finance assistance. However, during the past decade many banks
have decided not to focus on export financing.
The banks' reasons for doing so have varied -- many cut their
international operations due to the huge losses they incurred on overseas
debt; others may have chosen to concentrate on more lucrative lines of
business, such as home equity loans or mergers and acquisitions.
Consequently, during the 1980s export finance expertise in many U.S.
banks deteriorated. Even today, most smaller banks do not retain any staff
with expertise in international trade. This is not to say, however, that
such help is unavailable -- only that small businesses must be persistent
and tenacious in their efforts to find it. For example, if a small
business loan officer is unwilling to work with his or her bank's
international staff (or the bank is unwilling to work with a
correspondent), exporters should consider establishing a second banking
relationship or, if necessary, moving all their accounts to a more
aggressive lender. Don't be afraid to shop.
Given the difficulty most small business exporters face when seeking
financing, it is imperative that financial arrangements be made in advance.
Finding a lender willing to consider such a request requires that the
borrower ensure that the purpose of the loan makes sense for the business,
and that the request is a reasonable amount. Prospective borrowers also
should understand some key distinctions before beginning discussions with
a lender.

HOW TO APPROACH YOUR LENDER FOR EXPORT FINANCING

Venture Capitalists and Lenders
Before approaching a bank for financial assistance, small exporters
should understand the distinction between venture capitalists and lenders.
Venture capitalists invest in a business with the expectation that as the
business grows, their equity in the business will grow exponentially. On
the other hand, lenders are not in the venture capital business -- they
make their money on the difference between the rate at which they borrow
money and the rate at which they lend to their customers.
International Trade Services and Export Lending
Small exporters should also understand the distinction between
international trade services and international trade lending. Although
many banks offer international trade services, such as advising and
negotiating letters of credit, the banks' international divisions are not
authorized to lend money. International lenders, on the other hand, have
the authority to make loans, as well as provide related services.
Exporters should verify that the bank officer with whom they are dealing
has the authority to lend for an export transaction.

Working Capital Financing and Trade Financing
It is also important to note the difference between general working
capital financing and trade financing. A small firm's ability to qualify
for general working capital financing depends on, among other things, the
strength of its balance sheet and its prospects for generating sufficient
earnings over the life of a loan to repay it. Trade finance, on the other
hand, generally refers to financing individual transactions (or a series of
like transactions). In addition, trade finance loans are often
self-liquidating -- that is, the lending bank stipulates that all sales
proceeds are to be collected by it, and then applies the proceeds to pay
down the loan. The remainder is credited to the account of the borrower.

The self-liquidating feature of trade finance is critical to many
small, undercapitalized businesses. Lenders who may otherwise have reached
their lending limits for such businesses may nevertheless finance
individual export sales, if the lenders are assured that the loan proceeds
will be used solely for pre-export production; and any export sale proceeds
will first be collected by them before the balance is passed on to the
exporter. Given the extent of control lenders can exercise over such
transactions and the existence of guaranteed payment mechanisms unique to
-- or established for -- international trade, trade finance can be less
risky for lenders than general working capital loans.

Pre-export, Accounts Receivable and Market Development Financing
Exporters should understand the distinctions between the various types
of trade finance. Most small businesses need pre-export financing to help
with the expense of gearing up for a particular export sale. Loan proceeds
are commonly used to pay for labor and materials or to acquire inventory
for export sales. Others may be interested in foreign accounts receivable
financing. In that case, exporters can borrow from their banks an amount
based on the volume and quality of such accounts receivable. Although
banks rarely lend 100 percent of the value of the accounts receivable, many
will advance up to 80 percent of the value of qualified accounts. Foreign
credit insurance (such as Eximbank's Export Credit Insurance Program) is
often used to enhance the quality of such accounts.
Financing for foreign market development activities, such as
participation in overseas trade missions or trade shows, is often difficult
for small businesses to arrange. Most banks are reluctant to finance such
activities because, for many small firms, their ability to repay such loans
depends on their success in consummating sales while on a mission --
prospects that in many cases are speculative. Although difficult for many
small firms to do, the recommended source for financing such activities is
through the working capital of the firm or, in certain cases, through the
use of personal credit cards.
Finally, take time to make sure your banker understands your business
and products. Have a detailed export plan ready and, most important, be
able to clearly show how and when a loan will be repaid.

METHODS USED TO FINANCE EXPORTS

A small business exporter's principal concern should be to ensure that
he or she will be paid in full and on time. Foreign buyers may have
concerns as well, including uncertainty that the goods ordered will meet
the necessary specifications and arrive in a timely manner. As a result,
it is imperative that the terms of payment be agreed upon in advance and in
a manner satisfactory to both parties.
The payment method exporters use can significantly affect the
financial risk of a particular export sale. In general, the more generous
the sales terms are to a foreign buyer, the greater the risk to the
exporter. The primary methods of payment for international transactions,
ranked in order of most secure to the exporter to least secure, include:

. payment in advance
. letters of credit
. documentary collections (drafts)
. consignment
. open account

Payment in advance
Paying in advance is often too expensive and risky for foreign buyers.
Yet, this method of payment is not uncommon. Requiring full payment in
advance may cause lost sales to a foreign (or even another domestic)
competitor who is able to offer more attractive payment terms. In some
cases, however, where the manufacturing process is specialized, lengthy or
capital-intensive, it may be reasonable to insist upon partial payment in
advance, or on progress payments.

Letters of Credit (LC)
A letter of credit is an internationally recognized instrument issued
by a bank on behalf of its client, the purchaser. The LC actually
represents the bank's guarantee to pay the seller, provided the conditions
specified on it are fulfilled. Of course, the purchaser pays its bank a
fee to render this service.
The rationale behind the use of an LC is reliance by the seller on the
credit worthiness of the bank, which is normally more reliable than that of
the purchaser. It is also easier to verify by the seller's bank.
Moreover, this vehicle can be structured to protect the purchaser because
no payment obligation arises until the goods have been satisfactorily
delivered as promised.
The conditions of the LC are spelled out on the LC itself. When the
conditions of delivery have been satisfied (usually by the documented,
satisfactory and timely delivery of the goods), the purchaser's bank makes
the required payment directly to the seller's bank in accordance with the
terms of payment (in 15, 30, 60 or 90 days, whichever is specified).
The greatest degree of protection is afforded to the seller when the
LC has been issued by the buyer's bank and confirmed by the seller's bank.
LCs may be utilized for one-time transactions, or they can cover
multi-shipments, depending upon what is agreed between the parties. Also,
make sure you can deliver within the terms of the LC. It is suggested that
you review the details of such documentation with a bank that has LC
experience.

LETTER OF CREDIT

BUYER SELLER
. Agrees to buy product . Agrees to ship goods if LC
is opened
. Requests bank to issue LC . LC assures payment
if proper documents are presented

. Ships goods and submits
shipping documents to bank
for payment
. Verifies documents for
compliance

. Payment is made when . Payment received
documents received or accepted immediately or upon
maturity of accepted draft

Documentary Collection (Drafts)
Documentary collections involve the use of a draft, drawn by the
seller on the buyer, requiring the buyer to pay the face amount either on
sight (sight draft) or on a specified date in the future (time draft). The
draft is an unconditional order to make such payment in accordance with its
terms, which specify the documents needed before title to the goods will be
passed.
Because title to the goods does not pass until the draft is paid or
accepted, both the buyer and seller are protected. However, if the buyer
defaults on payment of the draft, the seller may have to pursue collection
through the courts (or possibly, by arbitration, if such had been agreed
upon between the parties). The use of drafts involves a certain level of
risk; but they are less expensive for the purchaser than letters of credit.

DOCUMENTARY COLLECTIONS

BUYER SELLER

. Agrees to buy products . Agrees to be paid via
documentary collection

. Ships goods and submits
shipping documents to bank
for collection or
acceptance

. Documents released to buyer . Seller receives payment at
against payment or acceptance sight or upon acceptance

Consignment
When goods are sold subject to consignment, no money is received by
the exporter until after the goods have been sold by the purchaser. Title
to the goods remains with the exporter until such time as all the purchase
conditions are satisfied. As a practical matter, consignment is very
risky. There is generally no way to predict how long it might take to sell
the goods; moreover, if they are never sold, the exporter would have to pay
the costs of recovering them from the foreign consignee.

Open account
An open account transaction means that the goods are manufactured and
delivered before payment is required (for example, payment could be due 14,
30, or 60 days following shipment or delivery). In the United States,
sales are likely to be made on an open-account basis if the manufacturer
has been dealing with the buyer over a long period of time and has
established a secure working relationship. In international business
transactions, this method of payment cannot be used safely unless the buyer
is credit worthy and the country of destination is politically and
economically stable. However, in certain instances it might be possible to
discount open accounts receivable with a factoring company or other
financial institution, referred to above.
The following diagram assesses the relative strengths and weaknesses
of each method of payment:

METHOD USUAL TIME GOODS AVAILABLE RISK TO RISK TO
OF PAYMENT TO BUYER EXPORTER
IMPORTER

Cash in Before After payment None Dependent
Advance shipment upon exporter
shipping goods

Letter After ship- After payment Very little
of ment, when or none Relies on
Credit documents depending exporter to
complying on LC ship goods
with LC are terms
presented

Document- On presenta- After payment If draft un- Relies on
ary Col- tion of draft paid, must exporter to
lection to buyer dispose of ship goods
Sight goods
Draft

Document- On maturity Before payment Relies on Almost none
ary Col- of draft buyer to pay
lection draft; no
Time Draft control of goods

Consign- After sale Before payment High Low
ment

Open After ship- Before payment Relies on None
Account ment, as buyer to pay
agreed his account

PRIVATE SECTOR EXPORT FINANCING RESOURCES

Commercial Banks
International trade transactions traditionally have been financed by
commercial banks. Commercial banks can make loans for pre-export
activities. They can also help process letters of credit, drafts and other
methods of payment discussed in this chapter. Banks have also become
increasingly involved in making export loans backed by United States
government export loan guarantees.
Many larger banks have international departments which can help with
your company's particular export finance needs. If your bank does not have
an international department, it probably has a correspondent relationship
with a larger bank that can assist you.

Private Trade Finance Companies
Private trade finance companies are becoming increasingly more
commonplace. They utilize a variety of financing techniques in return for
fees, commissions, participation in the transactions or combinations
thereof. International trade associations, such as a District Export
Council, can assist you in locating a private trade finance company in your
area.

Export Trading and Management Companies
Both EMCs and ETCs provide varying ranges of export services,
including international market research and overseas marketing, insurance,
legal assistance, product design, transportation, foreign order processing,
warehousing, overseas distribution, foreign exchange and even taking title
to a supplier's goods. All of these services can leverage the limited
resources of small businesses.

Factoring Houses
Factoring houses, also called factors, purchase export receivables on
a discounted basis. Using factors can enable the exporter to receive
immediate payment for goods while at the same time alleviating the hassles
associated with overseas collections.
Factors purchase export receivables for a percentage fee at 2-7
percent below invoice value, depending on the market and type of buyer.
The percentage rate will depend on whether the factor purchases the
receivables on a recourse or non-recourse basis. In the case of a
non-recourse purchase, the exporter is not bound to repay the factoring
house if the foreign buyer defaults or other collection problems arise.
Therefore, the percentage charge will be greater with non-recourse
purchases.

Forfaiting Houses
Similar to factoring, exporters relinquish their rights to future
payment in return for immediate cash. Where a debt obligation exists
between the parties, it is sold to a third party on a non-recourse basis,
but is guaranteed by an intermediary bank.
One U.S. exporter which used forfaiting found the benefits
substantial:

Ed Lamb, President of Custom Die and Insert of Lafayette, Louisiana,
was able to sell a 180-day letter of credit through a forfaiting house and
got paid 178 days sooner. Forfaiting enabled Custom Die and Insert to
consummate a $2.3 million-dollar export order to the Middle East.

GOVERNMENT EXPORT FINANCING RESOURCES

Because private sector financing providers will only assume limited
risk regarding foreign transactions, the U.S. government has become
increasingly involved in providing export financing assistance.
U.S. government export financing assistance comes in the form of
guarantees made to U.S. commercial banks which in turn make the loans to
exporters. Federal agencies, as well as certain state governments, have
their own particular programs as noted below:

U.S. Small Business Administration (SBA)
SBA provides financial and business development assistance to help
small businesses develop export markets. The SBA assists businesses in
obtaining the capital needed to explore, establish or expand international
markets. SBA's export loans are available under SBA's guarantee program.
As a prospective applicant, you should request that your lender seek SBA
participation, if the lender is unable or unwilling to make a direct loan.
The financing staff of each SBA district and branch office administers
the financial assistance programs. You can contact the finance division of
your nearest SBA office for a list of participating lenders. The business
development staff of each SBA district and branch office can provide
counseling on how to request export financial assistance from a lender.
Borrowers can use different SBA loan programs and types of loan
guarantees simultaneously, as long as the total SBA-guaranteed portion does
not exceed the agency's $750,000 statutory loan guarantee limit to any one
borrower. The lender may charge a maximum interest rate of 2.75 percentage
points above the New York prime interest rate, or 2.25 percentage points
above New York prime if the maturity is less than seven years.

Regular Business Loan Program
The SBA can guarantee up to 90 percent of a bank loan up to $155,000.
For larger loans, the maximum guaranty is 85 percent up to $750,000.
Small businesses that need money for fixed assets and for working
capital may be eligible for the SBA's regular 7(a) business loan guarantee
program. Loan guarantees for fixed-asset acquisition have a maximum
maturity of 25 years. Guarantees for general purpose working capital loans
have a maximum maturity of seven years. Export trading companies (ETCs)
and export management companies (EMCs) also may qualify for the SBA's
business loan guarantee program.
To be eligible, the applicant's business generally must be operated
for profit and fall within size standards set by SBA. Loans cannot be made
to businesses involved in creation or distribution of ideas or opinions,
such as newspapers, magazines and academic schools. Other types of
ineligible borrowers include businesses engaged in speculation or
investment in rental real estate.

Export Revolving Line of Credit Program
The Export Revolving Line of Credit (ERLC) Program offers a credit
line up to 36 months. Any number of withdrawals and repayments can be made
as long as they do not exceed the dollar limit of the credit line, and the
disbursements are made within the stated maturity period. Loan maturities
are generally for 12 months, with options to renew.
Loans can be used to finance labor and materials for manufacturing or
wholesaling for export, to develop foreign markets or to finance foreign
accounts receivable. Foreign business travel and participation in trade
shows are also among the eligible uses, but a regular 7(a) business loan
may be more appropriate for these purposes.
Applicants must satisfy eligibility criteria established for all SBA
loans. Also, the applicant must have been in business -- not necessarily
exporting -- for at least 12 months' continuous operation before filing an
application. The 12-month requirement may be waived by the SBA regional
office, if the firm's management has sufficient export experience or enough
management ability to warrant an exception.

The International Trade Loan Program
The International Trade Loan Program provides long-term financing to
help small businesses compete more effectively and to expand or develop
export markets.
Loan maturities cannot exceed 25 years, excluding the working capital
portion of the financing. The SBA's guarantee cannot exceed 85 percent of
the loan amount. The agency's maximum share for facilities or equipment
loans is $1 million, plus $250,000 for working capital.
Proceeds may be used to purchase or upgrade facilities or equipment,
and to make other improvements that will be used within the U.S. to produce
goods or services.
No debt payment is allowed. Proceeds can be used to buy land and
buildings; build new facilities; renovate, improve or expand existing
facilities; and purchase or recondition machinery, equipment and fixtures.
The working capital portion of the borrowing could be in the form of either
an ERLC or a portion of the term loan.
Applicants must establish either of the following to meet eligibility
requirements:

. Loan proceeds will significantly expand existing export markets
or develop new ones.
. The applicant's business is adversely affected by import
competition.

Small Business Investment Company (SBIC) Financing
A Small Business Investment Company (SBIC), approved and licensed by
the SBA, may also provide equity or working capital exceeding the agency's
$750,000 statutory maximum. SBICs can invest in export trading companies
in which banks have equity participation as long as other SBIC requirements
are met.

Export-Import Bank of the United States (Eximbank)
Eximbank is an independent federal government agency responsible for
assisting the export financing of U.S. goods and services through a variety
of information service and insurance, loan and guarantee programs.
Eximbank has undertaken a major effort to reach more small business
exporters with better financing facilities and services, to increase the
value of these facilities and services to the exporting community, and to
increase the dollar amount of Eximbank's authorizations supporting small
business exports.
Eximbank's export financing hotline provides information on the
availability and use of export credit insurance, guarantees, direct and
intermediary loans extended to finance the sale of U.S. goods and service
abroad.
Briefing programs are offered by Eximbank to the small business
community. The program includes regular seminars, group briefings and
individual discussions held both within the Bank and around the country.
Export credit insurance programs reduce an exporter's risk and can be
obtained through an insurance broker or from Eximbank's Insurance Division.

A wide range of policies is available to accommodate many different export
credit insurance needs. Insurance coverage:

. protects the exporter against the failure of foreign buyers to
pay their credit obligations for commercial or political reasons;
. encourages exporters to offer foreign buyers competitive terms of
payment;
. supports an exporter's prudent penetration of higher risk foreign
markets; and
. gives exporters and their banks greater financial flexibility in
handling overseas accounts receivable.

During the first two years, the new-to-export insurance policy offers
a short-term (up to 180 days) insurance policy geared to meet the
particular credit requirements of smaller, less experienced exporters.
Under the policy, Eximbank assumes 95 percent of the commercial and 100
percent of the political risk involved in extending credit to the
exporter's overseas customers. This policy frees the smaller exporter from
"first loss" commercial risk deductible provisions that are usually found
in regular insurance policies. The special coverage is available to
companies which are just beginning to export, or have an average annual
export credit sales volume of less than $2,000,000 for the past two years,
and meet the SBA definitions of small business.
The umbrella policy also covers short-term receivables of companies
with only limited experience in export trade. These policies are available
to commercial lenders, state agencies, finance companies, export trading
and management companies, insurance brokers and similar agencies to insure
their clients' receivables. Exporters are eligible if they have average
annual export credit sales of less than $2,000,000 for the past two years
and meet the SBA definitions of small business.

Loan Programs
The Working Capital Loan Guarantee Program assists small businesses in
obtaining crucial working capital to fund their export activities. The
program guarantees 100 percent of the principal and interest on working
capital loans extended by commercial lenders to eligible U.S. exporters.
The loan may be used for pre-export activities such as the purchase of
inventory, raw materials, the manufacture of a product or for marketing.
Eximbank requires the working capital loan to be secured with inventory of
exportable goods, accounts receivable or by other appropriate collateral.

Direct and Intermediary Loans
Eximbank provide two types of loans, direct loans to foreign buyers of
U.S. exports and intermediary loans to fund responsible parties that extend
loans to foreign buyers of U.S. capital and quasi-capital goods and related
services. Both the loan and guarantee programs cover up to 85 percent of
the U.S. export value, with repayment terms of one year or more.
Direct loans of any size and long-term loans to intermediaries are
offered at the lowest interest rate permitted under the Organization for
Economic Cooperation and Development (OECD) arrangement for the market and
term.
Medium-term intermediary loans are structured as "standby" loan
commitments. Under this arrangement, the intermediary may borrow against
the remaining undisbursed loan at any time during the term of the
underlying debt obligation. There is a prepayment fee if it is triggered
by prepayment of the foreign borrower.

Guarantee Programs
Guarantees of the Eximbank provide repayment protection for private
sector loans to credit worthy buyers of U.S. capital equipment and related
services. The guarantee is available alone or may be combined with an
intermediary loan.
Most guarantees provide comprehensive coverage of both political and
commercial risks but political risks only coverage is also available. The
guarantee covers 100 percent of principal and interest. In the event of a
default, the guaranteed lender must file a claim no less than 30 and no
more than 150 days after the default. The claim will be paid within five
business days after receipt.
Customary repayment terms for capital goods in international trade
are:

Contract Value Maximum Term
Less than $75,000 2 years
$75,000 - $150,000 3 years
$150,000 - $300,000 4 years
$300,000 or more 5-10 years, depending on the natureof the
sale and the OECDclassification of the buyers'country.

Loans for projects and large product acquisitions, such as aircraft
and capital-intensive machinery, are eligible for longer terms while lower
unit value items such as automobiles and appliances receive shorter terms.

Commodity Credit Corporation (CCC)
The United States Department of Agriculture's Commodity Credit
Corporation (CCC) operates Export Credit Guarantee Programs to provide
United States agricultural exporters or financial institutions a guarantee
that they will be repaid for short- and intermediate-term commercial export
financing to foreign buyers. These programs protect against commercial or
noncommercial risk if the importer's bank fails to make payment. Under one
program, the CCC will guarantee credit terms of up to 3 years and under
another, credit terms from 3 to 10 years are guaranteed. (For more
details, see Part II, The Exporter's Directory.)

State Export Financing Programs
A number of state-sponsored export financing and loan guarantee
programs are available. Many cities and states have established
cooperative programs with the Eximbank and can provide specialized export
finance counseling. Details of these programs are available through each
state department of commerce or trade office.
Arkansas, California, Delaware, Georgia, Indiana, Louisiana, Maine,
Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada,
North Carolina, Oklahoma, Pennsylvania, South Carolina, Texas, Utah,
Virginia, Washington, and Wisconsin all provide direct or indirect export
financing assistance.
Once an exporter determines the kind of export financing assistance to
be used and which payment method, the next step is to arrange for delivery
of the goods to the buyer's destination. It is important to assess the
various transportation options available, the subject of Chapter 6,
"Transporting Goods Internationally."

Source : foreign-trade.com

The Export Transaction

2007-12-22T14:54:00.000+07:00

Pricing
Pricing products to be competitive in international markets can be a
challenge; pricing that works in one market may be totally uncompetitive in
another. Although there is no one formula for establishing prices for
exported products, there are a number of strategic and technical
considerations that you can make in order to determine an appropriate
pricing structure.
A pricing strategy is a key component of your export marketing plan.
The selected pricing structure should be an integral part of your market
penetration objectives. Your goals will vary depending on the target
overseas market. Are you entering the market with a new or unique product?

Are you selling excess or obsolete products? Can your product demand a
higher price because of brand recognition or superior quality? Maybe you
are willing to reduce profits to gain market share for long-term growth.
Your pricing decisions will be affected by your company's goals.
It is important to obtain as much information as possible on local
market prices as part of your market research. Pricing information can be
collected in several ways. One source is overseas distributors and agents
of similar products of equivalent quality. When feasible, traveling to the
country where your products will be sold provides an excellent opportunity
to gather pricing information. U.S. Department of Commerce (DOC) can also
assist in determining appropriate prices through its Customized Sales
Survey.

Joseph S. Brown III, President of Bruce Foods Corp., obtained pricing
information for food products sold in overseas markets using the Commerce
Department's Customized Sales Survey. Although exporting since 1946, Brown
is constantly on the look-out for new markets for his products: "We now
export to 75 countries," the Louisiana business owner says.

To compile the Customized Sales Survey, DOC's US&FCS research
specialists in the target country interview importers, distributors,
retailers, wholesalers, end-users and local producers of comparable
products. They also inspect similar products on the market. Your
customized report, available for a fee, is usually completed within 45
days.

Marketing Your Product
To successfully market a product in a domestic market, the
manufacturer must take into consideration consumer preference, industry
standards, correct labelling and other consumer-driven considerations.
When entering a foreign market, the manufacturer should consider the
tastes and preferences in each market as part of marketing strategy.
Frequently, only a small change may be required to successfully market the
product. The color of the product, the design of the package, the size of
the product all may need adjustment.
Consideration should be given to the product name (it may
inadvertently have a negative connotation in the local language), cultural
and/or religious connotations, appearance of container, compliance to
standards (different electrical power, metric dimensions and local product
regulations).
Another consideration when planning market strategy is understanding
ISO 9000. The International Organization of Standardization (ISO) was
founded in 1946 by 25 national standardization organizations including the
American National Standards Institute (ANSI). Ninety countries now hold
membership in ISO.
In 1987, the ISO issued ISO 9000, a series of five documents (ISO
9000, 9001, 9002, 9003 and 9004) that provide guidance on the selection and
implementation of an appropriate quality management program (system) for a
supplier's operations. The purpose of the ISO 9000 series is to document,
implement and demonstrate the quality assurance systems used by companies
that supply goods and services internationally. ISO standards are required
to be reviewed every five years. Revised versions are expected to be
published in early 1994. Information on the status of these revisions can
be obtained from:

The American Society for Quality Control (ASQC)
611 East Wisconsin Avenue
Milwaukee, WI 53202
Phone: 414/272-8575 or 800/248-1946
FAX: 414/272-1734

There are three ways for a manufacturer to prove compliance with the
requirements of one of the ISO 9000 standards. Manufacturers may evaluate
their quality system and self-declare the conformance of the system to one
of the ISO 9000 quality systems. Second-party evaluations occur when the
buyer requires and conducts quality system evaluations of suppliers. These
evaluations are mandatory only for companies wishing to become suppliers to
that buyer. Third-party quality systems and evaluations and registrations
may be voluntary or mandatory and are conducted by persons or organizations
independent of both the supplier and the buyer. Interpretations of an ISO
9000 standard may not be consistent from one registrar to another.
The supplier's quality system is registered, not an individual
product. Consequently, quality system registration does not imply product
conformity to any given set of requirements. The demand for ISO 9000
registration in Europe and elsewhere seems to be coming primarily from the
marketplace as a contractual rather than a regulatory requirement. As
conformity to the ISO 9000 standards becomes recognized and required by
foreign and domestic buyers and used by manufacturers as a competitive
marketing tool, the demand for ISO 9000 compliance is expected to increase
in non-regulated areas. It is therefore critical for manufacturers to
determine what are their buyers' requirements regarding ISO 9000
compliance. Additional information on U.S., foreign and international
voluntary standards, government regulations and rules of certification for
nonagricultural products is available from:

National Center for Standards and Certification Information(NCSCI)
National Institute of Standards and Technology (NIST)
TRF Building, Room A163
Gaithersburg, MD 20899
Phone: 301/975-4040
FAX: 301/926-1559

For information on the EC 1992 Single Market program, copies of Single
Market regulations, background information on the EC or assistance
regarding specific EC trade opportunities or potential problems, contact:

The Office of EC Affairs
International Trade Administration, Room 3036
14th and Constitution Avenue, N.W.
Washington, D.C. 20230
Phone: 202/482-5823
FAX: 202/482-2155

Methods of International Pricing
The cost-plus method of international pricing is based on your
domestic price plus exporting costs (documentation expenses, freight
charges, customs duties and international sales and promotional costs).
Any costs not applicable, such as domestic marketing costs, are subtracted.

The cost-plus method allows you to maintain your domestic profit margin
percentage, and thus to set a suitable price. This method does not,
however, take into account local market conditions. Your price may be too
high to compete in a foreign market.
Different marketing costs and/or modifications to the product could
change the cost basis dramatically, making the product either more or less
costly for export. As a result, using the "marginal-cost" method provides
a more realistic means of determining true cost of producing your product
for export.
To use the marginal-cost method, first determine the fixed costs of
producing an additional unit for export. Fixed costs include production
cost, overhead, administration and research and development. A cost saving
may be realized if additional units of the product can be produced without
increasing the fixed costs. There may also be instances where certain
fixed costs are covered by domestic production and do not need to be added
to export expenses.
Product modification expenses, dictated by the target market, are then
added to the production costs to establish a "floor price." The floor
price serves as a threshold for the firm to know when it would incur a
loss. Using the floor price as a base, variable export costs for the
product can be added. Some of the variable costs will be one-time or
start-up expenses that should be discounted appropriately. Variable
expenses include:

Packaging
Local regulations and customs may require special labelling,
translated instructions or different packaging to appeal to local tastes.
The selected mode of distribution may also require a particular kind of
packaging.

Foreign Market Research
There may be fees for specialized services and publications used to
gather market information.

Advertising and Marketing
Firms selling directly into new markets will most likely be
responsible for the entire promotional effort. The firm can incur high
initial outlays to establish product recognition in the new market. If an
agent, distributor or trading company is employed, they can handle
advertising and marketing as part of their contract.

Translation, Consulting and Legal Fees
Product instructions, sales agreements and other documentation
typically will need to be translated into the local language. Expert
translation of product labeling and instructions will enhance local
marketing. Although many sales agreements are standard, it is advisable to
have legal counsel review binding documents.

Foreign Agent/Distributor Product Information and TrainingAgents and
distributors may require special training in order to effectively market
and service your products. This is true even if the agent sells products
similar to your firm's products. Training will not only enable the agent
to better represent your company's interests but gain a better
understanding of your particular product.

After-Sales Service Costs
Product warranties and service contracts will enhance your product's
image as a quality item. An appropriate after sales service guarantee can
support your sales efforts in the new market. Do not, however, promise
service or warranties based on U.S. standards that you cannot deliver.

After taking these expenses into account, insurance, freight, duties
and a profit margin can be added to arrive at a customer price. Depending
on the market, currency fluctuations can affect significantly your locally
based profit margin and the final price offered to the customer. For
new-to-export companies, price products in U.S. dollars and request payment
in dollars. This is not an unusual request.

High-Price Option
This approach may be appropriate if your company is selling a new
product or if you are trying to position your product or service at the
upper-end of the market. Selecting this option may attract competition and
limit the market for your product while, at the same time, produce big
profit margins.

Moderate-Price Option
This is a lower risk approach as contrasted to the high- or low-price
option. Here you should be able to match competitors, build a market
position and produce reasonable profit margins.

Low-Price Option
This approach may be relevant if you are trying to reduce inventory
and do not have a long term commitment to the market. You will, no doubt,
impede competition but also produce low profit margins.

There may be no single strategy that is ideal for every company.
Often companies draw upon a mix of options for each market or product.

Setting Terms of Sale
Price Quotations
The pro-forma invoice is the most commonly used document to give price
quotations to potential customers. The quotation in a pro-forma invoice is
usually considered binding, although prices may change prior to final sale.

To prepare the invoice, you should give a detailed description of the
product, an itemized list of charges and sale terms. Prices should be
quoted in United States dollars to reduce foreign exchange risks. The
invoice should also indicate the period during which the price quotation is
valid.
You should be familiar with the common terms of sale used in
international trade before preparing your pro-forma invoice. International
Commercial Terms (INCOTERMS) are the universally recognized terms used in
export and import contracts. These terms refer to the rights and
obligations of each party: who pays what costs; when title to goods is
transferred; and where the goods should be delivered. A complete list of
INCOTERMS published in the book Incoterms 1990 can be obtained from the
International Chamber of Commerce and should be a permanent part of your
business library (see Part II, The Exporter's Directory).

PRO-FORMA INVOICE* EXAMPLE :

SHIPPER: Reference No. RB20693
Smith and Jones Co. Date: July 18, 1993
5555 Railroad Ave.
New York, N.Y. 10001 Customer P.O. No. 212-555-1234
Terms of Payment:
Estimated Date of Shipment

SOLD TO: SHIP TO:
Grupo Estevez, S.A. de C.V. Juarez Industriale
Tamales No. 1 Piso 2 454 Blvd. Cortez
12345 Cd. Polanco Mexico 11115 Mexico D.F. Mexico

VIA: Aero Cortez

ITEM QUANTITY DESCRIPTION UNIT PRICE TOTAL PRICE
100 Computer US $50.00 US $5,000.00
motherboards
FOB factory 5,000.00

Inland
Freight
Forwarder
fees 100.00
Air freight 1,200.00
Five (5)
sealed cartons Insurance 20.00
Gross weight:
10 lbs. C.I.F. Mexico 6,320.00

Authorized signature/Title

The above offering is based on current prices and is valid 60
days from invoice date.
*NOTE: This pro-forma invoice is only a sample. It is advisable to
contact a freight forwarder in advance of shipping.

NEGOTIATING SALES AND DISTRIBUTOR AGREEMENTS

Sales Contracts
Knowing how to include INCOTERMS in a contract is important, but this
represents only one aspect of the sales agreement. Legal rights and
obligations of the parties should be spelled out in a single document,
which can be incorporated into the final invoice. Frequently, the terms
and conditions are contained on the back of the invoice.
Some of the terms and conditions necessary in a written sales
agreement include:

Delivery Terms -- Risk of Loss
A force majeure clause is standard in most agreements. This clause
excuses the exporter from responsibility where a default in performance is
caused by events beyond the exporter's control, such as war, acts of God or
labor problems.

Payment and Finance Terms
In addition to defining the terms of payment, provisions should be
included for late payments, partial payments and remedies for non-payment.
The terms of payment should consider the use of letters of credit.

Warranties
Sales contracts generally describe the goods and their qualities,
workmanship and durability. In some cases, the exporter is obligated by
the law in the country of import. The importer will require the exporter
to warrant that the goods meet certain standards of construction and
performance.

Acceptance of Goods
Frequently, the importer will insist upon the right to inspect the
goods upon delivery; if found defective, the importer can reject them and
refuse to pay. However, the importer is still liable for
country-of-importation duties and other taxes. The export documents should
reflect any such requirements.

Intellectual Property Rights
Protection of the exporter's patents, trademarks or copyrights should
be assured in the agreement. However, protection under the laws of the
foreign country are not automatic, and you should not assume that your
product is protected.

Taxes
The obligations of the parties for payment of taxes other than customs
duties should be defined in writing.

Dispute settlement
It is advisable to specify how and where any disputes will be
resolved, as well as which nation's law would be applied. Bear in mind
that different countries have varying arbitration laws and systems which
may apply.

AGENT AND DISTRIBUTOR AGREEMENTS
If you choose to use an agent or distributor, it will be necessary to
develop a formal contractual agreement. Agent and distributor agreements
spell out in more detail the issues mentioned above and define other
aspects of the relationship between the parties to the agreement.
In the contract it is important to:
. specify the goods and/or services covered;
. describe the agent or distributor's sales territory, and whether
they will have exclusive or non-exclusive sales rights;
. set the length of the term for which the agreement is applicable
and agree upon specified minimum sales volumes and objectives;
. outline protection of intellectual property;
. describe other types of obligations imposed on the parties,
violations of which would justify termination of the contract; and
. list specific intellectual property rights granted to the agent
or distributor.

When negotiating and drafting contractual agreements, it is
recommended that you consult an attorney with experience in international
trade and exporting. Your company's business lawyer may be able to handle
your questions or refer you to an "export-oriented" attorney. Your local
bar association may provide referral services, as well.
Under agreement with the Federal Bar Association and DOC, SBA sponsors
the Export Legal Assistance Network (ELAN). ELAN is a network of attorneys
located throughout the United States who specialize in international trade.

Your local SBA office can assist in locating an ELAN attorney who will
provide a free, initial legal consultation to discuss your export-related
questions.
As an initial introduction, however, you may want to review the
information contained in International Business Practices, which covers the
legal aspects of doing business in over 100 countries. Copies are
available from US&FCS offices or from the Government Printing Office.
Terms for financing export sales should be discussed during contract
negotiations. While the U.S. seller will want to be paid as soon as
possible, the foreign buyer will want to delay payment as long as possible,
preferably until after the goods are resold. These two conflicting
objectives will factor into any negotiations on export financing.
In addition to reaching a compromise on the method of payment, the
U.S. exporter must also be able to offer the foreign buyer favorable
financing terms -- otherwise the sale could be lost to a foreign competitor
with an equivalent product but better payment terms.
The final step in completing the export transaction is arranging for
payment, the subject of Chapter 5, "Export Financing."

Source : foreign-trade.com

Identifying International Markets

2007-12-22T14:51:00.000+07:00

To succeed in exporting, you must first identify the most profitable
international markets for your products or services. Without proper
guidance and assistance, however, this process can be time consuming and
costly -- particularly for a small business.
The U.S. federal government, state governments, trade associations,
exporters' associations and foreign governments offer low-cost and easily
accessible resources to simplify and speed your foreign market research.
This chapter describes those resources and how to use them.

FEDERAL GOVERNMENT RESOURCES
Many government programs and staff are dedicated to helping you, the
small business owner, assess whether your product or service is ready to
compete in a foreign market.

The U.S. Small Business Administration
Many new-to-export small firms have found the counseling services
provided by the SBA's Service Corps of Retired Executives (SCORE)
particularly helpful. Through your local SBA District office, you can gain
access to more than 850 SCORE volunteers with experience in international
trade.

"Our SCORE counselor is really like a big brother to us and our
company," says Jim Hadzicki, Vice-President of San Diego-based Revolution
Kites, a recreational kite manufacturer. Exports now account for 24
percent of their sales in just three years. "I recently went on a trip to
Tokyo to line up a distributorship. Our SCORE counselor helped me list our
objectives, what I was to do and ask about and even told me what gift I
should take to the Japanese representative," says Hadzicki.

Two other SBA-sponsored programs are available to small businesses
needing management and export advice: Small Business Development Centers
and Small Business Institutes affiliated with colleges and universities
throughout the United States:

Small Business Development Centers (SBDCs) offer counseling, training
and research assistance on all aspects of small business management.
The Small Business Institute (SBI) program provides small business
owners with intensive management counselling from qualified business
students who are supervised by faculty. SBIs provide advice on a wide
range of management challenges facing small businesses -- including finding
the best foreign markets for particular products or services.

The U.S. Department of Commerce
The U.S. Department of Commerce's (DOC) International Trade
Administration (ITA) is a valuable source of advice and information. In
ITA offices throughout the country international trade specialists can help
you locate the best foreign markets for your products. Oklahoma exporter
OK-1 Manufacturing Co. has found the foreign market research available
through the ITA extremely useful:

"The Oklahoma District ITA office prepared a market research study to
determine whether we should export our fitness accessory items to Japan,"
says Sherry Teigen, OK-1 Manufacturing Co. export manager. Today, the
company exports to Japan in addition to 20 other countries. Since it began
exporting, the company staff has grown by 75 and Sherry's husband, OK-1's
President, Roger Teigen, won the 1991 SBA Exporter of the Year award.

District Export Councils (DECs) are another useful ITA-sponsored
resource. The 51 District Export Councils located around the United States
are comprised of 1,800 executives with experience in international trade
who volunteer to help small businesses export. Council members come from
banks, manufacturing companies, law offices, trade associations, state and
local agencies and educational institutions. They draw upon their
experience to encourage, educate, counsel and guide potential, new and
seasoned exporters in their individual marketing needs.

The United States and Foreign Commercial Service (US&FCS) helps U.S.
firms compete more effectively in the global marketplace with trade
specialists in 69 United States cities and 70 countries worldwide. US&FCS
offices provide information on foreign markets, agent/distributor location
services, trade leads and counseling on business opportunities, trade
barriers and prospects abroad.

The United States Department of Agriculture
If you have an agricultural product, you should investigate the U.S.
Department of Agriculture's (USDA) Foreign Agricultural Service (FAS).
With posts in 80 embassies and consulates worldwide, the FAS can obtain
specific overseas market information for your product. The FAS also
maintains sector specialists in the United States to monitor foreign
markets for specific U.S. agricultural products.
Most state commerce and economic development offices have
international trade specialists to assist you. Many states have trade
offices in overseas markets. Dial Tool and Manufacturing of Franklin Park,
Illinois, found the Illinois State office in Hong Kong very helpful:

After visiting the Illinois State office in Hong Kong, Dial Tool and
Manufacturing President Steve Pagliuzza reports that he was able to sign on
sales reps for his company's metal stamping equipment: "My state office in
Hong Kong gave me several names of potential reps. We eventually signed
them on and are now successfully exporting to Asia, in addition to Europe,
Canada and Mexico. In four years, 15-20 percent of our sales now come from
exporting."

Port Authorities are a wealth of export information. Although
traditionally associated with transportation services, many port
authorities around the country have expanded their services to provide
export training programs and foreign-marketing research assistance. For
example, the New York-New Jersey Port Authority provides extensive services
to exporters including XPORT, a full-service export trading company.

PRIVATE SECTOR RESOURCES

In addition to government-supported resources, private sector
organizations can also provide invaluable assistance.

Exporters' Associations
World Trade Centers, import-export clubs and organizations such as the
American Association of Exporters and Importers and the Small Business
Exporter's Association can aid in your foreign market research.

Trade Associations
The National Federation of International Trade Associations lists over
150 organizations in the U.S. to help new-to-export small businesses enter
international markets. Many of these associations maintain libraries,
databanks and established relationships with foreign governments to assist
in your exporting efforts.
More than 5,000 trade and professional associations currently operate
in the United States; many actively promote international trade activities
for their members.
The Telecommunications Industry Association is just one association
which leads frequent overseas trade missions and monitors the pulse of
foreign market conditions around the globe. Whatever your product or
service, a trade association probably exists that can help you obtain
information on domestic and foreign markets.
Chambers of Commerce, particularly state chambers, or chambers located
in major industrial areas, often employ international trade specialists who
gather information on markets abroad.

HOW TO GATHER FOREIGN MARKET RESEARCH

Now that you know where to begin your research, you should next
identify the most profitable foreign markets for your products or services.

You will need to:

. classify your product;
. find countries with the largest and fastest growing markets for
your product;
. determine which foreign markets will be the most penetrable;
. define and narrow those export markets you intend to pursue;
. talk to U.S. customers doing business internationally;
. research export efforts of U.S. competitors.

Classifying your product
The Standard Industrial Classification (SIC) code is the system by
which the United States government classifies its goods and services.
Knowing the proper code for your product or service can be useful in
collecting and analyzing data available in the United States.
Data originating from outside the United States -- or information
available from international organizations -- are organized under the
Standard International Trade Classification (SITC) system, which may assign
a different code to your product or service.
Another method of classifying products for export is the Harmonized
System (HS). Knowing the HS classification number, the SIC and the SITC
codes for your product is essential to obtaining domestic and international
trade and tariff information. DOC and USDA trade specialists can assist in
identifying the codes for your products. The United States Bureau of the
Census (USBC) can help identify the HS number for your product.

Finding countries with the largest and fastest growing markets for your
product
At this stage of your research, you should consider where your
domestic competitors are exporting. Trade associations can often provide
data on where companies in a particular industry sector are exporting their
products. The three largest markets for U.S. products are Canada, Japan
and Mexico. Yet these countries may not be the largest markets for your
product.
Three key United States government databases can identify those
countries which represent significant export potential for your product:
SBA's Automated Trade Locator Assistance System (SBAtlas), Foreign Trade
Report FT925 and the U.S. Department of Commerce's National Trade Data Bank
(NTDB).
SBA's Automated Trade Locator Assistance System (SBAtlas) is offered
only by the U.S. Small Business Administration and provides current market
information to SBA clients on world markets suitable for their products and
services. This valuable research tool supplies small business exporters
with information about where their products are being bought and sold and
which countries offer the largest markets. The Country Reports detail
products imported and exported by various foreign nations. Data are
supplied by the DOC's USBC and member nations of the United Nations. This
information can be obtained through a SCORE counselor at the SBA District
and Regional Offices and at SBDCs and SBIs. This service is free to
requesting small businesses.
Foreign Trade Report FT925 gives a monthly country-specific breakdown
of imports and exports by SITC number. Available by subscription from the
Government Printing Office, the FT925 can also be obtained through DOC ITA
offices.
The National Trade Data Bank (NTDB) contains more than 100,000 U.S.
government documents on export promotion and international economic
information. With the NTDB, you can conduct databank searches on country
and product information. NTDB can be purchased by subscription and used
with a CD-ROM reader, or can be used at Federal libraries throughout the
United States. DOC ITA offices will also conduct specific NTDB searches to
meet your foreign market research needs.
Once you learn which are the largest markets for your products,
determine which are the fastest growing markets. Find out what demographic
patterns and cultural considerations will affect your market penetration.

Several publications provide geographic and demographic statistical
information pertinent to your product: The World Factbook, produced by the
Central Intelligence Agency; World Population, published by DOC's USBC; The
World Bank Atlas, available from the World Bank; and the International
Trade Statistics Yearbook of the United Nations. Volume Two of this U.N.
publication (available at many libraries) lists international demand for
commodities over a five-year period.

DETERMINING THE MOST PENETRABLE MARKETS

Once you have defined and narrowed a few prospective foreign markets
for your product, you will need to examine them in detail. At this stage
you should ask the following questions:

. how does the quality of your product or service compare with that
of goods already available in your target foreign markets?
. is your price competitive in the markets you are considering?
. who are your major customers?

Answering these questions may seem overwhelming at first, but many
resources are available to help you select which foreign markets are most
conducive to selling your product.
The DOC's ITA can link you with specific foreign markets. ITA offices
are part of the US&FCS and communicate directly with FCS officers working
in United States Embassies worldwide.
FCS staff and in-country market research firms produce in-depth
reports on selected products and industries that can answer many of your
questions regarding foreign market penetration.
One small business exporter who regularly uses foreign market
information obtained through the DOC's US&FCS is Fabri-Quilt Inc. of North
Kansas City, Missouri.

According to Fabri-Quilt President Lionel Kunst, "When I decide to
enter a foreign market, the Commerce Department ITA office in Missouri
sends information on my company to the Foreign Commercial Service Officer
in the country where I want to export. They send me back information on
that particular country and even make appointments for me when I decide to
visit the market myself." Of the product line Fabri-Quilt exports, 25
percent of their sales can be attributed to exporting.

You can also order a comparison shopping service report through ITA
district offices. The report is a low-cost way to conduct research without
having to leave the United States.
SBA's and DOC's Export Legal Assistance Network (ELAN) provides new
exporters with answers to their initial legal questions. Local attorneys
volunteer, on a one-time basis, to counsel small businesses to address
their export-related legal questions. These attorneys can address
questions pertaining to contract negotiations, licensing, credit
collections procedures and documentation. There is no charge for this
one-time service, available through SBA or DOC district offices.
Trade Opportunities Program (TOPs) of the DOC can furnish U.S. small
businesses with trade leads from foreign companies that want to buy or
represent their products or services. These trade leads are available in
both electronic or printed form from the DOC. Participating companies must
pay a modest fee to gain access to this service.
Other important issues about the target foreign markets you should
explore are:
. political risk considerations,
. the cultural environment, and
. whether any product modifications, such as packaging or
labelling, will make the product more "exportable."

One U.S. poultry producer discovered it had to modify its product to
make it more palatable to Japanese consumers:

Atlanta-based Gold Kist Inc. found that, to be successful in Japan,
they needed to cut and package their chicken parts to meet Japanese
consumer preferences. That change required substantial modification in
Gold Kist's operations. The alteration paid off: Gold Kist's Don Sands
reports, "In 1988, we shipped 5.3 million pounds of poultry to Japan, 9
million in 1989 and 12 million in 1990."

Identifying market-specific issues is easily accomplished by
contacting foreign government representatives in the United States.
Commercial posts of foreign governments located within embassies and
consulates can assist you in obtaining specific market and product
information.
American Chambers of Commerce (AmChams) abroad can also be an
invaluable resource. As affiliates of the United States Chamber of
Commerce, 61 AmChams, located in 55 countries, collect and disseminate
extensive information on foreign markets. While membership fees are
usually required, the small investment can be worth it for the information
received.
Another fundamental question to ask country-specific experts is what
market barriers, such as tariffs or import restrictions (sometimes referred
to as non-tariff barriers), exist for your product? Specialists at U.S.
Trade Representative (USTR) should be consulted on trade barriers.
Tariffs are taxes imposed on imported goods. In many cases, tariffs
raise the price of imported goods to the level of domestic goods. Often
tariffs become barriers to imported products because the amount of tax
imposed makes it impossible for exporters to profitably sell their products
in foreign markets.
Non-tariff barriers are laws or regulations that a country enacts to
protect domestic industries against foreign competition. Such non-tariff
barriers may include subsidies for domestic goods, import quotas or
regulations on import quality.
To determine the rate of duty, you will need to identify the
Harmonized Tariff section which corresponds to the product you wish to
export. Each country has its own schedule of duty rates corresponding to
the section of the Harmonized System of Tariff Nomenclature, I-XXII.

DEFINING WHICH MARKETS TO PURSUE

Once you know the largest, fastest growing and most penetrable markets
for your product or service, you must then define your export strategy.
Do not choose too many markets. For most small businesses, three
foreign markets will be more than enough, initially. You may want to test
one market and then move on to secondary markets as your "exportise"
develops. Focusing on regional, geographic clusters of countries can also
be more cost effective than choosing markets scattered around the globe.
After you have identified the best export markets, your next step will
be to determine the best way to distribute your product abroad. Chapter 3,
"Market Entry," discusses distribution methods.

Source : foreign-trade.com

Country Ratings Table for Payment

2007-12-22T14:45:00.000+07:00

A more in-depth explanation of the ratings:

A1 – Steady political and economic environment is likely to further the already excellent payment record of companies. Very low risk probability.

A2 – Political and economic stability is generally good. Although the payment record of companies is not as good as A1, the risk is still considered low.

A3 – Unfavourable political or economic conditions MAY lead to a worsening of a payment record that is lower than that of A1 and A2. However, risk is still considered low.

A4 – Negative political or economic conditions is likely to worsen a patchy payment record of companies within this country. However, risk level is considered acceptable.

B – Unsteady political or economic conditions are likely to worsen an already poor payment record.

C – Very unsteady political or economic conditions are likely to worsen an already bad payment record.

D – Extremely unsteady political or economic conditions are likely to worsen an already very bad payment record.

Important!

The ratings should only be used as a guide, as a good company could be within a country with a poor/less favoured rating. Likewise, a poor company could be within a country with a good/highly favoured rating.

It is therefore important to research the company as you would when trading with a company in the UK.

Country Ratings

You should use these country ratings as a guide only. Further research of the individual company is required to help you determine the payment risk more accurately.
Albania D
Algeria B
Argentina D
Australia A1
Austria A1
Bangladesh B
Belarus D
Belgium A1
Bolivia D
Bosnia D
Brazil B
Bulgaria B
Cameroon B
Canada A1
Central African Rep. D
Chile A3
China A3
Colombia B
Costa Rica B
Croatia A4
Cuba D
Cyprus A3
Czech Republic A2
Denmark A1
Dominican Republic C
Ecuador D
Egypt B
Estonia A3
Ethiopia C
Finland A1
France A2
Gabon C
Georgia D
Germany A2
Ghana C
Greece A2
Guinea D
Hong Kong A2
Hungary A2
Iceland A1
India A4
Indonesia C
Iran C
Iraq D
Ireland A1
Israel A4
Italy A2
Ivory Coast D
Jamaica C
Japan A2
Jordan B
Kenya C
Korea A2
Kuwait A2
Latvia A4
Libya C
Lithuania A4
Luxembourg A1
Macedonia D
Malaysia A2
Mali B
Mauritius A3
Mexico A4
Moldova D
Mongolia D
Morocco A4
Nepal D
Netherlands A2
New Zealand A1
Niger C
Nigeria D
Norway A1
Pakistan D
Papua New Guinea B
Paraguay D
Peru B
Philippines A4
Poland A4
Portugal A2
Qatar A2
Romania B
Russia B
Salvador B
Saudi Arabia A4
Serbia Montenegro B
Singapore A1
Slovakia A3
Slovenia A2
South Africa A4
Spain A1
Sri Lanka B
Sweden A1
Switzerland A1
Taiwan A1
Thailand A3
Trinidad A3
Tunisia A4
Turkey B
Ukraine C
United Arab Emirates A2
UNITED KINGDOM A1
United States A1
Uruguay D
Vietnam B
Yemen C
Zambia D
Zimbabwe D

Making the Export Decision

2007-12-22T14:44:00.000+07:00

Exporting is crucial to America's economic health. Increased exports
mean business growth, and business growth means more jobs. Yet, only a
small percentage of potential exporters take advantage of these
opportunities. It is critical for U.S. businesses to think globally. Your
decision to read this book indicates an interest in exporting. However,
you may have discovered your company is already competing internationally
-- foreign-owned companies are competing with you in your "domestic"
markets. The division between domestic and international markets is
becoming increasingly blurred. Your business cannot ignore international
realities if you intend to maintain your market share and keep pace with
your competitors. Making the export decision requires careful assessment
of the advantages and disadvantages of expanding into new markets. Once
the decision is made to export, an international business plan is
essential. This chapter presents the advantages and disadvantages of
exporting and offers a sample business plan.

ADVANTAGES AND DISADVANTAGES OF EXPORTING
Consider some of the specific advantages of exporting.Exporting can
help your business:
. enhance domestic competitiveness
. increase sales and profits
. gain global market share
. reduce dependence on existing markets
. exploit corporate technology and know-how
. extend the sales potential of existing products
. stabilize seasonal market fluctuations
. enhance potential for corporate expansion
. sell excess production capacity
. gain information about foreign competition

In comparison, there are certain disadvantages to exporting.Your
business may be required to:
. develop new promotional material
. subordinate short-term profits to long-term gains
. incur added administrative costs
. allocate personnel for travel
. wait longer for payments
. modify your product or packaging
. apply for additional financing
. obtain special export licenses

These disadvantages may justify a decision to forego exporting at the
present time. For example, if your company's financial situation is weak,
attempting to sell into foreign markets may be ill-timed. On the other
hand, some companies have been successful selling abroad even before they
have made any sales domestically:

Landmark Systems of Vienna, Virginia, had virtually no domestic sales
before it entered the European market. Landmark had developed a software
program for IBM mainframe computers and located an independent distributor
in Europe to represent their product. In their first year, 80 percent of
their sales were attributed to exporting. In their second year, sales
jumped from $100,000 to $1.4 million -- with 70 percent attributable to
exports.

As you can see, there are no hard-and-fast rules as to which
businesses should export, and which should not. In the case of Landmark
Systems mentioned above, a foreign distributor produced results before any
significant domestic sales occurred. Landmark Systems' decision to export,
like that of many other small business exporters featured in this guide,
was based on careful planning.

THE NEED FOR AN INTERNATIONAL BUSINESS PLAN
Behind most export success stories is a plan. Whether formally
written down, or sketched out informally at a meeting of your management
team, an international business plan is an essential tool to properly
evaluate all the factors that would affect your company's ability to go
international.

An international business plan should define your company's:
. commitment to international trade;
. export pricing strategy;
. reason for exporting;
. potential export markets and customers;
. methods of foreign market entry;
. exporting costs and projected revenues;
. export financing alternatives;
. legal requirements;
. transportation method; and
. overseas partnership and foreign investmentcapabilities.
Creating an international business plan is important for defining your
company's present status, internal goals and commitment, but is also
required if you plan to seek export financing assistance. Preparing the
plan in advance of making export loan requests from your bank can save time
and money. Completing and analyzing an international business plan helps
you anticipate future goals, assemble facts, identify constraints and
create an action statement. It should also set forth specific objectives,
an implementation timetable and milestones to gauge success.

Source : foreign-trade.com

Foreign Market Entry

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Having determined the best international markets for your products,
you now need to evaluate the most profitable way to get your products to
potential customers in these markets.
There are several methods of foreign market entry including exporting,
licensing, joint venture and off-shore production. The method you choose
will depend on a variety of factors including the nature of your particular
product or service and the conditions for market penetration which exist in
the foreign target market.
Exporting can be accomplished by selling your product or service
directly to a foreign firm, or indirectly, through the use of an export
intermediary, such as a commissioned agent, an export management or trading
company.
International joint ventures can be a very effective means of market
entry. Joint ventures overseas are often accomplished by licensing or
off-shore production. Licensing involves a contractual agreement whereby
you assign the rights to distribute or manufacture your product or service
to a foreign company. Off-shore production requires either setting up your
own facility or sub-contracting the manufacturing of your product to an
assembly operator.
Licensing and off-shore production are discussed in Chapter 7,
"Strategic Alliances and Foreign Investment Opportunities."

EXPORTING

Of the various methods of foreign market entry, exporting is most
commonly used by small businesses. Start-up costs and risks are limited,
and profits can be realized early on.
There are two basic ways to export: direct or indirect. The direct
method requires your company to find a foreign buyer and then make all
arrangements for shipping your products overseas. If this method seems
beyond the scope of your business' in-house capabilities at this time, do
not abandon the idea of exporting. Consider using an export intermediary:

American Cedar, Inc., a Hot Springs, Arkansas, producer of cedar
products reports that 30 percent of its product sales now comes from
exporting: "We displayed our products at a trade show, and an export
management company found us. They helped alleviate the hassles of
exporting directly. Our products are now being distributed throughout the
European Community from a distribution point in France," says American
Cedar President Julian McKinney.

INDIRECT EXPORTING

Many small businesses like American Cedar have been exporting
indirectly by using an export intermediary. There are several kinds of
export intermediaries you should consider.

Commissioned agents
Commissioned agents act as "brokers," linking your product or service
with a specific foreign buyer. Generally, the agent or broker will not
fulfill the orders, but rather will pass them to you for your acceptance.
However, they may assist, in some cases, with export logistics such as
packing, shipping and export documentation.

Export Management Companies (EMCs)
EMCs act as your "off-site" export department, representing your
product -- along with the products of other companies -- to prospective
overseas purchasers. The management company looks for business on behalf
of your company and takes care of all aspects of the export transaction.
Hiring an EMC is often a viable option for smaller companies that lack the
time and expertise to break into international markets on their own.
EMCs will often use the letterhead of your company, negotiate export
contracts and then provide after-sales support. EMCs may assist in
arranging export financing for the exporters but they do not generally
assure payment to the manufacturers. Some of the specific functions an EMC
will perform include:

. conducting market research to determine the bestforeign markets
for your products;
. attending trade shows and promoting your productsoverseas;
. assessing proper distribution channels;
. locating foreign representatives and/or distributors;
. arranging export financing;
. handling export logistics, such as preparing invoices,arranging
insurance, customs documentation, etc.; and
. advising on the legal aspects of exporting and othercompliance
matters dealing with domestic and foreign trade regulations.

EMCs usually operate on a commission basis, although some work on a
retainer basis and some take title to the goods they sell, making a profit
on the markup. It is becoming increasingly common for EMCs to take title
to goods.

Export Trading Companies (ETCs)
ETCs perform many of the functions of EMCs. However, they tend to be
demand-driven and transaction-oriented, acting as an agent between the
buyer and seller. Most trading companies source U.S. products for their
overseas buyers. If you offer a product that is competitive and popular
with the ETC buyers, you are likely to get repeat business. Most ETCs will
take title to your goods for export and will pay your company directly.
This arrangement practically eliminates the risks associated with exporting
for the manufacturer.

ETC Cooperatives
ETC cooperatives are United States government-sanctioned co-ops of
companies with similar products who seek to export and gain greater foreign
market share. Many agricultural concerns have benefited from ETC
cooperative exporting, and many associations have sponsored ETC
cooperatives for their member companies. The National Machine Tool
Builders' Association, the Outdoor Power Equipment Institute and the
National Association of Energy Service Companies are a few examples of
associations with ETC co-ops. Check with your particular trade association
for further information.

The Export Trading Company Act of 1982
This legislation encourages the use and formation of EMCs/ETCs by
changing the antitrust and banking environments under which these companies
operate. The Act increases access to export financing by permitting bank
holding companies to invest in ETCs and reduces restrictions on trade
finance provided by financial institutions. Under the Act, banks are
allowed to make equity investments in qualified ETCs.

Foreign Trading Companies
Some of the world's largest trading companies are located outside the
United States. They can often be a source of export opportunity. U.S. &
Foreign Commercial Service (US&FCS) representatives in embassies around the
world can tell you more about trading companies located in a given foreign
market.

Exporting through an Intermediary -- Factors to Consider
Working with an EMC/ETC makes sense for many small businesses. The
right relationship, if structured properly, can bring enormous benefits to
the manufacturer, but no business relationship is without its potential
drawbacks. The manufacturer should carefully weigh the pros and cons
before entering into a contract with an EMC/ETC. Some advantages include:

. Your product gains exposure in international markets --with
little or no commitment of staff and resources from your company.
. The EMC/ETC's years of experience and well-establishednetwork of
contacts may help you to gain faster access to international markets than
you could through establishing a relationship with a foreign-based partner.

. Using an intermediary lowers or eliminates your exportstart-up
costs, and, therefore, the risks associated with exporting. You can
negotiate your contract with an EMC so that you pay nothing until the first
order is received.
. Your intermediary will guide you through the exportprocess
step-by-step. Over time, you will develop your own export skills.

Some disadvantages of exporting through an intermediary include:
. You lose some control over the way in which yourproduct is
marketed and serviced. Your company's image and name are at stake. You
will want to incorporate any concerns you may have into your contract, and
you will want to monitor closely the activities and progress of your
intermediary.
. You may lose part of your export-sales profit margin
bydiscounting your price to an intermediary. However, you may find that
the economies of scale realized through increased production offset this
loss.
. Using an intermediary can result in a higher pricebeing passed on
to the overseas buyer or end-user. This may or may not affect your
competitive position in the market. The issue of pricing should be
addressed at the outset.

Export Merchants/Export Agents
Export merchants and agents will purchase and then re-package products
for export, assuming all risks and selling to their own customers. This
export intermediary option should be considered carefully, as your company
could run the risk of losing control over your product's pricing and
marketing in overseas markets.

Piggyback Exporting
Allowing another company, which already has an export distribution
system in place, to sell your company's product in addition to its own is
called "piggyback" exporting.
Piggyback exporting has several advantages. This arrangement can help
you gain immediate foreign market access. Also, all the requisite
logistics associated with selling abroad are borne by the exporting
company. Oklahoma-based DP Manufacturing's winches were attached to
another product and sold abroad by another company. DP Manufacturing now
handles its own exports and reports that 15 percent of its sales comes from
international markets.

How to Find Export Intermediaries
Small businesses often report that intermediaries find them -- at
trade fairs and through trade journals where their products have been
advertised -- so it can often pay to get the word out that you are
interested in exporting.
One way to begin your search for a U.S.-based export intermediary is
in the Yellow Pages of your local phone directory. In just a few initial
phone calls, you should be able to determine whether indirect exporting is
an option you want to pursue further.
The National Association of Export Companies (NEXCO) and the National
Federation of Export Associations (NFEA) are two associations that can
assist in your efforts to find export intermediaries. The Directory of
Leading Export Management Companies is another useful source (see Part II,
The ExporterÕs Directory).
DOC's Office of Export Trading Company Affairs (OETCA) can also assist
in providing information on how to locate ETCs and EMCs, as well as ETC
cooperatives in the U.S. The office, under a joint public/private
partnership, compiles the Export Yellow Pages, which provides the names and
addresses of EMCs/ETCs, as well as other export service companies, such as
banks and freight forwarders. Manufacturers, or producers, can also be
listed in the guide free of charge; 50,000 copies are distributed worldwide
annually. Contact your local U.S. Department of Commerce district office
for information on being listed or for a free copy of the directory.
Locating the best export intermediary to represent you overseas is
important. Do your homework before signing an agreement.

DIRECT EXPORTING

While indirect exporting offers many advantages, direct exporting also
has its rewards: although initial outlays and the associated risks are
greater, so too can be the profits.

California exporter Bayley Suit, Inc. reports that 80 percent of its
sales come from exporting. The company president says that "40 percent of
sales come from the Pacific Rim and 40 percent from the UK and Europe. In
just a few years, exports have pushed our gross sales from $1 million to $4
million."

Direct exporting signals a commitment on the part of company
management to fully engage in international trade. It may require that you
dedicate a staff person or even several personnel to support your export
efforts, and company management may have to travel abroad frequently.
Selling directly to an international buyer means that you will have to
handle the logistics of moving the goods overseas. But, as the case of
Ekegard, Inc. reveals, the extra efforts can pay off:

Using agents based in Pakistan and Thailand, Iowa-based Ekegard, Inc.
states that 80 percent of its sales now come from exporting -- quite an
achievement in just three years. According to Ekegard President Janne
Ekstam, "Exporting helps to offset fluctuations in the United States
economy."

Different Approaches to Direct Exporting

Sales Representatives/Agents
Like manufacturers' representatives in the United States,
foreign-based representatives or "agents" work on a commission basis to
locate buyers for your product. Your representative most likely will
handle several complementary, but non-competing product lines. An agent
is, generally, a representative with authority to make commitments on
behalf of your firm. Be careful, therefore, about using the terms
interchangeably. Your agreement should specify whether the agent/rep. has
legal authority to obligate the firm.

Distributors
Foreign distributors, in comparison, purchase merchandise from the
U.S. company and re-sell it at a profit. They maintain an inventory of
your product, which allows the buyer to receive the goods quickly.
Distributors often provide after-sales service to the buyer.
Your agreement with any overseas business partner -- whether a
representative, agent or distributor -- should address whether the
arrangement is exclusive or non-exclusive, the territory to be covered, the
length of the association, and other issues. (See Chapter Four, The Export
Transaction, for additional information on negotiating agent/distributor
agreements.)
Kansas-based Airparts Companies has been extremely successful using
overseas distributors:

"We employ 1,200 distributors worldwide," says Marta E. Maxwell,
president of Airparts Companies, Inc. of Wichita, Kansas. With over $13
million in sales and 38 employees, Maxwell attributes 70 percent of her
sales to exporting.

Finding overseas buyers for your products need not be more difficult
than locating a representative here in the United States. It may require,
however, an investment of time and resources to travel to your target
market to meet face-to-face with prospective partners. One way to
identify those interested in your product is to tap the DOC's
Agent/Distributor Service. This program provides a customized search to
identify agents, distributors and representatives for United States
products based on the foreign companies' examination of the United States
product literature.

"The Commerce Department Agent/Distributor Search located a
distributor for us in India, and we've had a good working relationship for
three years," says Shirley Wright, a representative of the Wisconsin
biotechnology firm Promega. Promega derives more than 30 percent of its
sales from exporting.]

Other sources of leads to find foreign agents and distributors are
trade associations, foreign chambers of commerce in the United States and
American chambers of commerce located in foreign countries.
Many publications can be useful. The Standard Handbook of Industrial
Distributors lists agents and distributors in more than 90 countries. The
Manufacturers' Agents National Association also has a roster of agents in
Europe (see Part II, The Exporter's Directory).

Foreign government buying agents
Foreign government agencies or quasi-governmental agencies are often
responsible for procurement. In some instances, countries require an
in-country agent to access these procurement opportunities. This can often
represent significant export potential for U.S. companies, particularly in
markets where U.S. technology and know-how are valued. Foreign country
commercial attaches in the United States can provide you with the
appropriate in-country procurement office.
Retail Sales
If you produce consumer goods, you may be able to sell directly to a
foreign retailer. You can either hire a sales representative to travel to
your target market with your product literature and samples and call on
retailers, or you can introduce your products to retailers through
direct-mail campaigns. The direct-marketing approach will save commission
fees and travel expenses. You may want to combine trips to your target
markets with exploratory visits to retailers. Such face-to-face meetings
will reinforce your direct marketing.

Direct Sales to End-User
Your product line will determine whether direct sales to the end-user
are a viable option for your company. A manufacturer of medical equipment,
for example, may be able to sell directly to hospitals. Other major
end-users include foreign governments, schools, businesses and individual
consumers.

HOW TO FIND BUYERS

Advertise in Trade Journals
Many small businesses report that foreign buyers often find them. An
ad placed in a trade journal or a listing in the DOC's Commercial News USA
can often yield innumerable inquiries from abroad. Commercial News USA is
a catalog-magazine featuring U.S. products and distributed to 125,000
business readers in over 140 countries around the world and to over 650,000
Economic Bulletin Board users in 18 countries. Fees vary with the size of
the listing. Many U.S. companies have had enormous success in locating
buyers through this vehicle:

"When overseas buyers contacted us we were thrilled," says Maryland's
Marine Enterprises Vice President Brenda Dandy, discussing the results of
a listing her company bought in Commercial News USA. Exports now represent
20 percent of Marine Enterprises' sales.

Participate in Catalog and Video/Catalog Exhibitions
Catalog and Video/Catalog exhibitions are another low-cost means of
advertising your product abroad. Your products are introduced to potential
partners at major international trade shows -- and you never have to leave
the United States. For a small fee, the US&FCS officers in embassies show
your catalogs or videos to interested agents, distributors and other
potential buyers.
A number of private sector publications also offer U.S. companies the
opportunity to display their products in catalogs sent abroad. A few
include Johnston International's Export Magazine, The Journal of Commerce
and the Thomas Publishing Company's American Literature Review.

Pursue Trade Leads
Rather than wait for potential foreign customers to contact you,
another option is to search out foreign companies looking for the
particular product you produce. Trade leads from international companies
seeking to buy or represent U.S. products are gathered by US&FCS officers
worldwide and are distributed through the DOC's Economic Bulletin Board.
There is a nominal annual fee and a connect-time charge. The leads also
are published daily in The Journal of Commerce under the heading, "Trade
Opportunities Program" and in other commercial news outlets.
Another source of trade leads is the World Trade Centers (WTC)
Network, where you can advertise your product or service on an electronic
bulletin board transmitted globally.
If your product is agricultural, the U.S. Department of Agriculture
(USDA) Foreign Agricultural Service (FAS) disseminates trade leads
collected by their 80 overseas offices. These leads may be accessed through
the AgExport FAX polling system, the AgExport Trade Leads Bulletin, The
Journal of Commerce or on several electronic bulletin boards.

Exhibit at Trade Shows
Trade shows also are another means of locating foreign buyers. DOC's
Foreign Buyer Program certifies a certain number of U.S. trade shows each
year. Foreign buyers are actively recruited by DOC commercial officers,
and special services -- such as meeting areas and translators -- are
provided to encourage and facilitate private business discussions.
International trade shows are another excellent way to market your
product abroad. Many U.S. small businesses find that going to a foreign
trade show once just is not enough:

"You have to hang in there," said Allen-Edmonds Shoe Corporation
President John Stollenwerk. "In the beginning, in many countries where we
displayed our products at foreign trade shows, we saw no results. But
gradually people began to take our product, American made shoes, seriously.

We market our shoes as `the world's finest.' That's one way American
companies can compete." Twelve percent of Wisconsin-based Allen-Edmonds
sales are derived from exporting.

Through a certification program DOC also supports about 80
international fairs and exhibitions held in markets worldwide. U.S.
exhibitors receive pre- and post-event assistance. The USDA FAS sponsors
about 15 major shows overseas each year.

Participate in Trade Missions
Participating in overseas trade missions is yet another way to meet
foreign buyers. Public/private trade missions are often organized
cooperatively by federal and state international trade agencies and trade
associations. Arrangements are handled for you so that the process of
meeting prospective partners or buyers is simplified.
Matchmaker Trade Delegations are DOC-sponsored trade missions to
select foreign markets. Your company is matched carefully with potential
agents and distributors interested in your product. Tennessee-based
Shaffield Industries, a futon manufacturer, reaped excellent returns as a
result of a 1991 Matchmaker trade mission to Asia:

"I was especially surprised at the high-level of appointments
scheduled for us during the Matchmaker trade mission. Each was a true
prospect," stated David Goff, comptroller for Shaffield Industries. As a
result of the mission, his company negotiated the sale of three containers
of his product to South Korea and two containers to Taipei.

Being properly prepared for the kinds of inquiries you might encounter
on overseas trade missions is important. The SBA offers pre-mission
training sessions through its district offices and the SCORE program.
Contact your local SBA office for a schedule of upcoming "How to
Participate Profitably in Trade Missions" seminars.

Contact Multilateral Development Banks
In developing countries, large infrastructure projects are often
funded by multilateral development banks such as the World Bank, the
African, Asian, Inter-American Development Banks and the European Bank for
Reconstruction and Development.Multilateral development bank (MDB) projects
often represent extensive opportunities for U.S. small businesses to
compete for project work. DOC estimates that MDB projects could amount to
at least $15 billion dollars in export contracts for United States
businesses.
One U.S. small business that successfully entered the international
marketplace by bidding on a World Bank project is DSI of Poestenkill, New
York:

"As a result of World Bank loans to the People's Republic of China,
DSI received over $1 million dollars in contracts for laboratory
equipment," reports DSI President Dave Ferguson. Exports now account for
60-70 percent of DSI's business.

Development bank projects can be an excellent way to start exporting.
Many U.S. small business exporters have benefited from large MDB projects
through subcontracting awards from larger corporations.
A list of MDBs is included in Part II, The Exporter's Directory. From
their Washington, D.C. headquarters, many MDBs hold monthly seminars to
acquaint businesses with the MDB procurement process. Additionally, the
DOC's Office of Major Projects can be of assistance in identifying
contracting and subcontracting opportunities.

QUALIFYING POTENTIAL BUYERS OR REPRESENTATIVES
Once you locate a potential foreign buyer or representative, the next
step is to qualify them by reputation and financial position. First,
obtain as much information as possible from the company itself. Here are
a few sample questions you will want to ask:
. What is the company's history and what are the qualifications and
backgrounds of the principal officers?
. Does the company have adequate trained personnel, facilities,
resources to devote to your business?
. What is their current sales volume?
. What is the size of their inventory?
. How will they market your product (retail, wholesale or direct)?
. Which territories or areas of the country do they cover?
. Do they have other U.S. or foreign clients? Are any of these
clients your competitors? It is important to obtain references from
several current clients.
. What types of customers do they serve?
. Do you publish a catalogue?
. What is their sales force?

When you have this background information and are comfortable about
proceeding, then obtain a credit report about their financial position.
DOC's World Trade Data Reports (WTDRs), available from your local District
ITA Office, are compiled by US&FCS officers. A WTDR can usually provide an
in-depth profile of the prospective company you are investigating.
There are also several commercial services for qualifying potential
partners, such as Dun & Bradstreet's Business Identification Service and
Graydon reports. U.S. banks and their correspondent banks or branches
overseas, and foreign banks located in the United States can provide
specific financial information.
In this chapter we have discussed methods of market entry, how to find
potential foreign buyers and representatives and how to qualify whom you
will be doing business with overseas. Advance market research and
preparation is the best way for a small business to define a potential
export market.
The next question that needs to be explored involves how to accomplish
the business of exporting -- that is, how the deal should be structured,
the topic of, "The Export Transaction."

Source : foreign-trade.com

Country Ratings for Payment

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Introduction

When trading with a company overseas, it can often be difficult to obtain sufficient information to assess the company’s credit worthiness. It is therefore advised that the supplier obtains an assessment of the location of the company to help determine a more confident decision.

In addition, a company may want to assess which countries offer less risk when trading overseas – with respect to the repayment of credit – to target their business.

This can be done with the help of the ‘country ratings system’.

What is the Country Ratings System?

The country ratings system allows a company to assess the average corporate payment default risk (repayment of credit) in a given country.

The country ratings system indicates (using ratings) to what extent a company’s financial commitments may be affected by local business and economic/political issues within a given country.

What are the Ratings?

Each country is regularly assessed with respect to the local business environment, economic issues and political issues. Each country is then given a rating to reflect the anticipated payment default risk.
The ratings are split into two grades:

The ‘investment’ grade (A1 – A4)

Countries with these grades are considered to have economic and political stability in addition to a sound business environment (payments, etc). Countries with grade A1 are considered the least risky – however, although countries with grades A2, 3, or 4 are graded lower, they are still considered countries with low risk.

The ‘speculative’ grade (B, C, D)

Countries with such grades are considered to have economic and political instability. Such instability MAY have an affect on the repayment of credit and are considered high risk countries (‘D’ having more risk than ‘B’)

Letter of Credit (LC)

2007-12-22T14:41:00.000+07:00

What is a Letter of Credit?

A letter of credit is a banking mechanism which allows importers to offer secure terms to exporters.

All letters of credit contain these elements:

a payment undertaking given by the bank (issuing bank)

on behalf of the buyer (applicant)

to pay a seller (beneficiary)

a given amount of money

on presentation of specified documents representing the supply of goods

within specific time limits

these documents conforming to terms and conditions set out in the letter of credit

documents to be presented at a specified place.

Put simply, the issuing bank's role is twofold:

to guarantee to the seller that if compliant documents are presented, the bank will pay the seller the amount due. This offers security to the seller - the bank says in effect "We will pay you if you present documents (XYZ)"

to examine the documents, and only pay if these comply with the terms and conditions set out in the letter of credit. This protects the buyer's interests - the bank says "We will only pay your supplier on your behalf if they present documents (XYZ) that you have asked for"

Note that the letter of credit refers to documents representing the goods - not the goods themselves! Banks are not in the business of examining goods on behalf of their customers
Typically the documents requested will include a commercial invoice, a transport document such as a bill of lading or airway bill, an insurance document; but there are many others.

Letters of credit deal in documents, not goods.

The stages of the letter of credit
Buyer and seller agree terms, including means of transport, period of credit offered (if any), latest date of shipment, Incoterm to be used

Buyer applies to bank for issue of letter of credit. Bank will evaluate buyer's credit standing, and may require cash cover and/or reduction of other lending limits

Issuing bank issues L/C, sending it to the Advising bank by airmail or (more commonly) electronic means such as telex or SWIFT

Advising bank establishes authenticity of the letter of credit using signature books or test codes, then informs seller (beneficiary). Advising bank MAY confirm L/C, i.e. add its own payment undertaking

Seller should now check that L/C matches commercial agreement, and that all its terms and conditions can be satisfied, (e.g. all documents can be obtained in good time.) If there is anything that may cause a problem, an AMENDMENT must be requested.

Seller ships the goods, then assembles the documents called for the L/C (invoice, transport document etc.) Before presenting the documents to the bank, the seller should check them for discrepancies with the L/C, and correct the documents where necessary.

The documents are presented to a bank, often the Advising bank. The Advising bank checks the documents against the L/C. If the documents are compliant, the bank pays the seller and forwards the documents to the Issuing bank

The Issuing bank now checks the documents itself. If they are in order (and it is a sight L/C), it reimburses the seller's bank immediately

The Issuing bank debits the buyer and releases the documents (including transport document), so that the buyer can claim the goods from the carrier.

Payments and Insurance

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Payment

(i) Currency

It is important to remember that when you import or export goods, you may be required to pay (or accept payment) in a number of currencies. You need to arrange with the supplier or buyer in advance who will bear the costs of exchanging the currency (E.g.: From Euros to Pounds); this can affect the costs a considerable amount and may need some negotiation to find the fairest option.

In most cases the buyer (importer) will pay the currency conversion charges, although it now a lot easier for payment to be converted as it enters the bank account (particularly with Euro payments).

(ii) Payment methods

Open Account (OA)

An open account is where you credit check the buyer, and organise an appropriate credit limit and credit period for payment. When you ship the goods, the payment is due a set number of days after.

This type of payment method is normally used only in strong or long-term business relationships, where you can be sure that the buyer will pay.

This type of payment is preferable to small businesses when importing, helping you keep positive cash flow. It is however much more preferable to have payment in advance when exporting.

Documentary Collection (DP, DA)

This where the exporter/seller sends a number of documents to the customer’s bank; when the customer pays in full, the bank gives them the import and release documents (DP).

In some cases, the customer will sign a ‘bill of exchange’, which sets out a specific number of days to pay (E.g.: 90 days after collection). When the customer signs the bill, they will receive the import and release documents (DA).

This is an effective method of payment for small businesses, as it helps provide security for both the buyer and seller. You must be sure however, if allowing a number of days to pay, that the customer is reliable and creditworthy. Otherwise you may be left needing to claim in court to retrieve your money, which is especially difficult with foreign companies.

Documentary Letter of Credit (LC)

This is where the customer’s bank provides a ‘letter of credit’, which promises to pay the supplier as long as the terms are met (and the bank has the money to pay) (ILC). There s also a ‘confirmed irrevocable letter of credit’ (CILC). This is a promise by a UK (or a large world bank) to pay the supplier, and is even more secure than an ordinary letter of credit.

A letter of credit is the most secure way to be paid, but you must be careful to ensure that all documents related to the sale are correct, as a serious mistake can make the letter of credit worthless.

Payment in Advance

This is the most preferable method of payment for a small business looking to export. It helps keep your cash flow positive, and minimises your risk in exporting. The main drawback is that few buyers will be willing to pay in advance, in case of problems with the order.

One solution is to arrange for part payment in advance. This provides some security that you will be paid, and helps to fund the cost of production and shipping; whilst allowing the buyer to check the quality of the goods before parting with the rest of their money.

Payment in advance is not preferable if you are importing, but if you are left with no other option, be certain to take Goods in Transit Insurance to help cover you against any problems.

Terms Of Delivery

It is essential that all importing or exporting be covered by an effective set of delivery terms. In the event of a late or damaged delivery, the costs to the importer could be huge.

Incoterms are a set of international standard definitions that allow terms to be set without the risk of confusion, even when translated into different languages.

Incoterms help to set out fair compensation rules in the event of a late, damaged, or missing delivery. They can also set out fair payment details once a complete delivery has been made.
More information on Incoterms is available at the International Chamber of Commerce Incoterms website.

Insurance

One way to protect your business against a damaged or late delivery is to take out Goods in Transit Insurance. This covers the goods against damage, loss, late delivery or no delivery while in transit, providing cover against the damage that a late delivery can cause to a buyer.

This is particularly important if you are an exporter, as the cost of replacing goods will usually be very high, as well as the cost of the business you may lose because of the problem.

Export and Import Regulations and Taxes

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Regulations and Taxes

(i) Duties and VAT

It is vital to ensure that you pay the correct duties and VAT on all products that you import. There are number of different excise duties (E.g.: Alcohol or Tobacco duty) that apply to goods, and you need to be sure that you are paying the correct rates.

In the majority of cases, you do not need to charge duty or VAT on exports. You must have official or commercial evidence of non-EU exports to not charge VAT. The rules are different depending on the product and whether it is being exported in or out of the EU. Before you start exporting, you must make sure that you are fully aware of any duty or VAT you need to pay when exporting.

As small businesses may not be VAT registered, the rules will vary depending on the product, you should be certain to clarify the duty or VAT you will need to pay, and how this will change if you register for VAT in the near future.

Depending on the amount you import and export, some business will be entitled to claim back some of the duty or VAT payments that you make. A number of businesses are also entitled to delay payment of duties (mainly for goods imported from outside the EU).

(ii) Customs Entries

If you are importing from outside of the EU or from special EU territories (including the Canary Islands and the Channel Islands), then the goods you bring in will almost always need to be entered and declared to Customs and Excise as they arrive (Either yourself or by an approved agent).

The vast majority of exports outside of the EU or to special EU territories also need to be declared to Customs and Excise as they leave the country.

If you are importing or exporting from within the EU, then a customs declaration is not usually necessary. Although if you are VAT registered, and your EU imports or exports exceed a set amount (currently £233,000 a year) you will need to fill in a supplementary declaration form each month.

(iii) Training

The exact details of import and export regulations are long and complicated, one way to help improve your businesses ability is to undertake import/export training. This will help you (or a chosen employee) to understand in more detail the rules and regulations regarding the products you move.

This will help to ensure that you pay all necessary duty, and are able to claim back all the money you may be entitled to. The cost of training can be quite high, but if your business is looking at importing or exporting in the long term, then the cost will usually be more than worth it.

The government offers some basic training and education in importing and exporting. More information can be found at the HMCE Customs and Excise website.

Getting Started in Imports and Exports

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Introduction

Businesses of all sizes become involved in importing and exporting for a variety of reasons. Whether you want to increase your sales abroad, import a new product to sell in the UK, or bring in components for your business; importing and exporting can provide you with a whole new range of products and customers.

Despite its many advantages, importing and exporting can be complicated and expensive; there are many rules, regulations, and situations that need taking into account. Here is a look at some of the most important things to look at when you want to start importing and/or exporting.

Are Your Products Suitable?

The most important thing to look at when you plan importing or exporting is whether the products you are moving are able to be imported (either to the UK, or to the country you are exporting to).

Although most products are suitable for import and export, a number of products are restricted in the UK; including some foods, some flowers, plants or seeds, some types of electronic equipment and certain types of art and antiques are also restricted.), and each country will have a different list of restricted products. You should always find out as soon as possible if the product you wish to move is restricted.

A number of items will require a licence from the Department of Trade and Industry’s (DTI) Import Licensing Branch to be imported legally.

Will Your Products Work?

A crucial element of importing or exporting is knowing that the product will work. If you import an electrical item, will it need a new plug or adaptor to run? Is it compatible with other UK accessories and products? Are the instructions and product details in the right language? Some countries and products require readable instructions by law.

E.g.: Company X import a Games Console / Computer from Japan to sell in the UK and export to France. They will need an expensive converter to allow it to run on a UK plug socket, and a different converter to allow it to run on a French plug socket. They will also be unable to use UK/French games or accessories, leaving their customers with only Japanese instructions and Japanese language games.

When importing, do you need to add the cost of modifications or extras to the product price, and will your customers be happy paying for them, particularly if there are no English instructions; or will you be forced to cover their cost?

When exporting, will the buyers be happy paying for the extras, or will they expect you to pay for them? Are they aware that the product may be unusable without them?

Marketing Your Products

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Introduction

Generally speaking, the term international marketing is actually a misnomer that is commonly used to describe import-export marketing. International marketing, per se, actually refers to cross-border marketing that is most often carried out by multinational corporations while small and medium sized domestic companies by way of foreign trade intermediaries most often carry out import-export marketing or trade. While import-export marketing and cross-border marketing do share common or similar characteristics in some aspects, it is very important for newcomers to understand the real differences. As a practical matter, articles written about both subjects sometimes blur the distinctions and this can become slightly confusing. So that we do not confuse you, we shall place both international marketing and import-export trade or import-export marketing under one umbrella term, “global marketing”.

Overview

For reasons that should be obvious to most readers, we are focusing here on import-export marketing or import-export trade. The aforementioned confusion about the use of terminology is actually crucial for a clearer understanding of exactly how trade, the buying and selling of goods and services, is facilitated. What is important to note here is that multinational corporations and small and medium sized domestic companies often use different channels to distribute and sell their products in overseas markets. As a general rule, multinational companies are usually selling goods that are sold to individual consumers such as cars, electronics, household appliances, food and beverage products and personal care items. Small and medium sized companies (SME’s) typically sell their products overseas to business customers. SME’s might sell industrial machine parts and various custom made machine shop items, medical products used in hospitals and clinics, industrial machinery and materials handling equipment like fork lifts and tools. In foreign markets, the most significant difference between multinational corporations who use cross-border marketing techniques and SME’s who use intermediaries is that the SME’s are selling business to business and the multinationals are using advertising driven national marketing strategies to reach individual consumers.

How Is International Trade Facilitated?
In Understanding Trade Regulations, we discussed the role of the foreign freight forwarder in moving products from the factory floor to their final destination overseas. Most import-export trade is further facilitated by what are known as trade intermediaries. Many people know trade intermediaries as “middlemen” and have this notion that intermediaries find both buyer and seller and put them together and earn a commission for arranging an international transaction thusly. Nothing could be further from the truth. Most intermediaries represent either the buyer or the seller and do their work solely on behalf of their client. The idea that a middleman could identify a buyer and a seller and then could keep both parties ignorant of each other is just plain fiction. Unfortunately, too many people come to international trade with this notion already firmly established in their minds and have extreme difficulty in accepting the reality of how import-export transactions are actually arranged.
There are really only two types of import-export transactions: 1) distributor/intermediary purchases and 2) sourcing and procurement buying. In the case of distributor/intermediary purchases, a foreign distributor will normally attempt to directly contact manufacturers or export management companies who represent manufacturers in order to develop a distributor relationship with the manufacturer that grants the distributor a defined territory in which to sell the manufacturer’s products. Most foreign distributors try to gain exclusivity rights in their country for a particular manufacturer. If a manufacturer is well known, exclusivity can be very profitable for the distributor. In the case of sourcing and procurement buying, an individual company is normally attempting to procure some equipment that it will use to do business or it is trying source components for its products at a lower price. Therefore, companies who do export their products will sell to two types of clients: distributors, intermediaries or other resellers and end-users.

Evaluating Trade Leads

Please read Evaluating Trade Leads by Mr. Jeffrey P. Graham. Many global business experts consider this article to be the finest ever written about the subject of trade leads and more specifically trade leads and the Internet. There is an article about Mr. Graham and his opinions on this subject that appears on page 40 of the January 2000 issue of Entrepreneur Magazine and it might be helpful in understanding this aspect of marketing your product in overseas markets.

Identifying Foreign Customers

For most newcomers to going global, the most daunting task is how to identify potential customers in foreign countries. A colleague of mine who worked with me at a large global trading company once said, “Finding a foreign distributor is very easy. Finding a good foreign distributor is another matter entirely.” It only took me six months to discover just how prophetic her words were. Because finding good foreign distributors and other value added resellers in foreign markets is not an easy task.
Proponents of the Internet will tell anybody who is willing to listen that the Internet has made it easier to find foreign customers. Unfortunately, as with trade leads, this is not true. In Choosing a Foreign Distributor, Mr. Graham once again debunks some myths about foreign distributors and takes a very hard look at how the choice should be made. While it is indeed true that the WWW disseminates more useful information than was available as recently as five years ago, it is also the case that such information is often very difficult to assimilate into the business enterprise. There are literally thousands of websites, many known as “trade boards” that are dedicated to posting trade leads and providing information about how to contact foreign distributors. The U.S. Department of Commerce, individual state offices for international business development, local and foreign chambers of commerce and industry and trade groups and business associations are just some of the organizations that offer assistance in finding foreign customers. Yet, with so much assistance and information readily available, the task is not made any easier. The most compelling reason why contacting foreign clients is getting harder instead of easier is that the criteria for appropriate foreign buyers has not changed as rapidly as the Internet. Merely claiming to be a legitimate buyer via e-mail and a website does not hold up to real scrutiny from any experienced trade intermediary.

Trade Intermediaries

There is really only one true trade intermediary: a global trading company. Global trading companies have been a part of global trade in the modern era for almost six hundred years now. A global trading company is exactly what its name implies. It is a company that trades on a global basis. That is, it is involved with several manufacturers and/or distributors and other value added resellers in a variety of import and export transactions around the world. Some of you might be more familiar with the export management company. Well, in reality, the export management company is nothing more than a specialized type of global trading company that focuses on exporting for its manufacturer clients.
There are other types of people and organizations that perform some functions that come under the heading of trade intermediary. Sales agents, commission merchants, manufacturers representatives, commodity brokers, sales brokers, procurement agents and buying agents all perform various aspects of facilitating trade. Some of these entities do become involved in import-export transactions, but their involvement is usually very specialized and most newcomers will not become involved with them upon their first foray into global marketing. Note: Technically speaking, foreign distributors can also act as intermediaries in some instances.
As was previously mentioned above, global trading companies are not middlemen. In fact, with rare exceptions, the highly glorified middleman does not truly exist. That is, it is not the role of the intermediary to bring together buyer and seller, all the while keeping each party unknown to the other. This is a highly unusual case and in most instances, it just does not work. The middleman of whom people speak is the global trading company, but its role is far different than people imagine. When a trading company represents a seller, it functions as an export management company. When it represents a buyer, it functions as an importer. In both instances, it is the intermediary. That is, its role is to facilitate the transaction. Normally, there is only one intermediary per each transaction. Obviously, wannabe intermediaries are always attempting to insert themselves into transactions for a so-called small “piece of the action”. However, only very inexperienced traders would allow this to happen. In some instances, such as the case of foreign governments making tender offers, intermediaries in the country where the tender originates have the opportunity to participate guaranteed by their government.
What does the intermediary actually do? In reality, the role of an intermediary is not at all sexy as most people imagine. Foreign companies who need to make a one-time procurement purchase of a big-ticket item sometimes retain trading companies. In this instance, an import-export clerk would go to the local library and search through hard print industrial directories in order to find as many manufacturers of the particular item requested unless the buyer already limited its choices to a few select manufacturers. Then a trade specialist would compose an RFQ: a request for a price quotation and then send it to all of the different manufacturers. Normally, the manufacturer would initially respond by asking the trading company about the destination of the product. Scrupulous companies would reply honestly. If the manufacturer had an exclusive distributor in that country, it would usually decline to send the trading company a price quotation in order to not “step on” or hamper the efforts of its local distributor. The trade specialist would then evaluate the price quotations of various manufacturers who did respond. (These price quotations are normally sent by way of what is called a pro forma invoice, which is merely a mock invoice.) The trade specialist might then contact the logistics department of the trading company in order to determine the transport and insurance costs. It would then send its own price quotation to the buyer. If the buyer accepts, then the trading company might shop around to different banks for the best deal on a letter of credit and would forward that information to the buyer. If a letter of credit is successfully opened, a shipping clerk at the trading company would note entry requirements for the destination country and then would advise the shipping department at the manufacturer about packing and marking requirements as well as required paperwork. The import-export clerk and trade specialist might review the required paperwork with the manufacturer and once it was completed, the logistics department of the trading company might then contact local trucking companies near to the manufacturer and look for a steamship going to the foreign destination. Once the cargo is loaded onto the steamship and the captain draws up a bill of lading, the trading company will get paid when the bank executes the letter of credit after all of the proper documents have been submitted. This is not something that an amateur without training, education or experience can do properly.

Success Factors

Many executives that are newcomers to global marketing, wonder about what exactly are the success factors. Well, to be honest and frank, one size never fits all in global marketing. There are, however, some general guidelines that newcomers should try to follow:
Set aside sufficient budget for going global. This is a very serious mistake that far too many companies make when going global. Global marketing is not really that much more expensive than most domestic marketing, but the volume is significant. Many business executives try to go global “on the cheap” as it were. This is a recipe for certain failure. The sales cycle in global business is much longer than in your domestic market. This means that you should not expect any quick returns on your initial investment. Set aside enough money.
Localize your product or service for your foreign clients’ tastes. “Well, if it is good enough for this market, then it should be good enough for them.” This is a very typical response heard many times from many executives. In most instances, product localization only involves minor setup costs that are quite often recouped after the first order is received. Yet, this is another area where business executives fail to properly follow through on significant export opportunities.
Provide excellent quality collateral materials in the foreign language used in the foreign market. This is actually a parallel product localization issue, but we are treating it as a separate item because it creates significant problems for so many companies. Even as globalization moves forward at tremendous speed with enormous momentum, there are still business executives who steadfastly refuse to acknowledge that the whole world does not speak one language. Business executives in the United States are probably guiltier of this oversight than executives in any other country. Beyond the foreign language aspect is the problem of not sending adequate product catalogs along with price lists. Foreign business executives are not mind readers. Send them enough information to allow them to be capable of making a positive buying decision in your favor.
Learn how to listen to foreign distributors. Some executives bristle when a foreign distributor writes to them with advice and/or criticism about their products. Foreign distributors earn their profits by selling the products of local and foreign manufacturers to their customers. They usually know what their customers want and they make every effort to provide what their customers are eager to buy. If such a company takes time to evaluate your product and then contacts you with their impressions, you should listen very carefully because this distributor is telling you how to be successful in this particular market.
Place the Internet in its proper perspective. The World Wide Web will not compensate for shoddy and inconsistent product quality and poorly kept promises about delivery schedules. Some companies are placing too much emphasis upon developing their websites and too little emphasis upon developing their real core competencies. Just because e-mail provides instantaneous communications capability does not mean that you’re more likely to receive a faster response from a foreign buyer. Use the Internet as a tool to educate yourself and your employees, conduct better business research and to communicate with more people in more places around the world.

This article was written by Mr. Jeffrey P. Graham originally intended for Citibank's now defunct international business portal. © Citibank. All Rights Reserved.
SOURCE : http://www.going-global.com/articles/marketing_your_products.htm