U'S' Commercial ServiceHelping U'S' Business Succeed Abroad - PowerPoint PPT Presentation

Title: U'S' Commercial ServiceHelping U'S' Business Succeed Abroad


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• U.S. Commercial ServiceHelping U.S. Business
  Succeed Abroad
• Presentation for Intl Marketing 456
• Dr. Judy Strauss
• Sept. 9, 2009

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Why International?
Growth business level / national
level (Exporting primary component of GDP growth
in 2008) Full utilization of people and
production capacity Counter-cyclical
markets--Market diversification Defend your
domestic markets Enhance your competitive
posture, even at home Exporting companies
typically pay higher wageskeep good
employees If you sell it here, you can sell it
there
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Why International? Cont
Clines Axiom approaching new markets can
drive innovation, demand a re-think of
standard business practices, and lead to
product and service innovations and modifications
that also benefit domestic salesin short,
competing in the international marketplace will
make for a stronger company.
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U.S. Commercial Service
The U.S. Commercial Service is part of the U.S.
Department of Commerce, an agency of the United
States government.

• Our mission
• To promote the export of goods services from
  the United States, particularly by small- and
  medium-sized businesses
• To represent U.S. business interests
  internationally
• To help U.S. businesses find qualified
  international partners

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Our Global Network

• Trade specialists in over 100 U.S. cities
• 160 offices in US Embassies and Consulates in
  80 countries worldwide
• Sector-specific teams
• Regional teams

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What Our Network Does for U.S. Business

• Five Main Areas of Assistance
• Trade Counseling
• Market Research
• Customer Location/Qualification
• Business Programs
• Advocacy and Compliance

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1) Trade Counseling

• Our trade specialists in the U.S. work directly
  with our team of experts overseas in getting you
  all the information and advice that you need.
• We can help you

• Determine the best markets for your products
  services
• Evaluate international competitors
• Identify and help you comply with legal and
  regulatory issues
• Learn about cultural issues and business protocol

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Shipping Your Products

• Freight Forwarders (exports) and Customs House
  Brokers (import)dont try this at home. Even
  large companies with international shipping
  departments contract for these services.

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Terms of Sale

• International Commercial TermsINCOTERMS
• International Chamber of Commerce
• http//www.iccwbo.org/incoterms/wallchart/wallchar
  t.pdf
• While Important, INCOTERMS are NOT the only terms
  you need to consider, such as
• Currency of transaction
• Time limits on offers
• Changes to offer means change in price (eg,
  shipping)
• Banking/Finance Terms, Charges, etc

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2) Market Research

• Screen Potential Markets

• Assess Potential Markets

• Obtain Export Statistics
• Identify potential markets
• Target the most promising

• Examine product trends
• Research the competition
• Analyze marketing factors
• Identify barriers
• Identify any incentives
• Draw Conclusions

Consider both primary and secondary data sources
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Existing Market Researchwww.export.gov

• Country Commercial Guides (CCGs)
• - Prepared annually by US Embassy Staff, CCGs
  contain information on the business and economic
  situation of foreign countries and the political
  climate as it affects U.S. business and foreign
  investments.
• Industry Reports
• - In-depth analysis of specific industry
  sectors and sub-sectors within a given market.
• - Brief updates within a foreign country
  highlighting specific market opportunities, trade
  events, or changes in market conditions.
• On-line Market Research
• - http//www.export.gov/mrktresearch/index.asp
• Customized Market Research
• Negotiated fee service

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Market ResearchAdditional No-Cost Tools

• www.buyusa.gov/nevada/intl_links.html
• For food/ag products http//www.fas.usda.gov
• Trade Associations
• Trade Journals
• Trade Shows
• Foreign Customs agencies
• Competitors

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Product ClassificationThe Foundation of your
Export Program
HTS Schedule B EAR CCL ECCN
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Structure of a Harmonized Tariff Schedule Number
Pressure Reducing Valve

• The first six digits are the same worldwide.
• The last two to four digits, following the first
  six, differ from country to country.
• Example Confectionary Item
• CA 1704.90.9050
• MX 1704.90.99
• US 1704.90.3500

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HTS Why Important?

• Used to determine duty rates by both domestic and
  foreign customs services
• Not knowing your HTS would make it virtually
  impossible for you to challenge an adverse
  customs classification ruling
• Used to qualify goods for duty preferences under
  Free Trade Agreements
• Tariff Shift often used to determine country or
  origin
• US Trade Statistics compiled by Schedule B s
• Critical to take your market research to a
  certain level of specificity
• How determine HTS ?
• US Census Foreign Trade Division 301-763-2238
• --or
• http//www.census.gov/foreign-trade/schedules/b/
• --or
• Look in your own files and old shipping documents!

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Now What?With this information in hand, we can
Find time trended export data by product by
country http//dataweb.usitc.gov/scripts/user_set.
asp Find foreign customs duty rates http//www.ex
port.gov/logistics/eg_main_018142.asp Or
Call 1-800-USA-TRADE Qualify your product for
NAFTA (or other FTA) tariff preferences http//ww
w.export.gov/FTA/index.asp
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3) Finding/Qualifying Business Partners

• Gold Key Service
• Platinum Key
• Customized Contact List
• International Partner Search
• International Company Profile
• Single Company Promotions
• Commercial News USA
• FUSE

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4) Business Programs

• Trade Shows Domestic and Overseas
• Trade Missions
• Catalog Shows
• Local Seminars
• Video Conferences
• Webinars

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5) Advocacy-Market Access(trade complaints)

• Advocacy
• Bid Tenders
• Unfair Competition

• Market Access Compliance
• Used in Cases of Violation of Trade Agreements

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Tips for Preparing a Marketing Plan

• Follow proven planning templates No need to
  reinvent the wheel
• Pay significant attention client capabilities
• Management Objectives
• Experience
• Management and Personnel
• Production Capacity
• Financial Capacity
• ALL potential action plans have a cost and
  timeframe

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If I were seeking to open shop abroad, I would
want to know ...

• Can I bring my money home? Foreign Exch controls
• What is the legal infrastructure?
• Forms of business organization available
• Required to have local partner? At what level?
  Investor/work visas
• Import/export restrictions temp imports customs
  regulations
• Taxation
• Can foreigners own property/sign leases?
• Employment laws
• Market Questions
• Economic situation access to credit the market
  in your country for my product
• Is your country a viable launch pad to service
  neighboring/regional markets?

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http//www.usajobs.opm.gov
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THANK YOU!!
Bill Cline U.S. Commercial Service 1 E 1st St,
16th Fl Reno, NV 89509 Tel 775.784.5203 Fax
775.784.5343 Bill.cline_at_mail.doc.gov http//www.bu
yusa.gov/nevada