June 2014, Second Month in a Row Trade Deficit Decreases

By: Henock Kebede

The trade deficit in goods and services decreased for the second month in a row as it went down $3.1 billion to $41.5 billion. The decrease was driven by an increase of exports and a decrease of imports of $0.3 billion (to $195.9 billion) and $2.9 billion (to $237.4 billion), respectively. One of the main drivers for the increase in exports is the record high exports of Total Services, driven by record exports in Other Business Services and Travel (for all purposes). Exports of both Automotive ($13.7 billion) and Consumer Goods ($17.2 billion) increased to record levels, while their imports decreased by $1.3 billion for Consumer Goods and by $1.1 billion for Automotive.

Did you know that the U.S. usually has a trade surplus in Civilian Aircraft, Engines, and Parts? Yes, products in this end-use category make up 11% of the exports in “Capital Goods” and typically, exports are about twice the size of imports. This year so far, the top five countries for U.S. exports in this category are China ($4.9B), United Kingdom ($3.5B), France ($3.4B), Canada ($2.7B) and Germany ($2.7B). Check out the “Graph of the Month” page for a visual representation of export and import trends for Civilian Aircraft, Engines, and Parts.

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Choosing the Ultimate Consignee Type

By: Heather Hrytsyshyn

You probably know that identifying the ultimate consignee in the Automated Export System (AES) is mandatory. However, did you realize that you need to select an ultimate consignee type? There are four types: direct consumer, government entity, reseller and other/unknown.

Let’s dive into the details of each type: woman questioning

  1. Direct Consumer is a non-government institution, enterprise, or company that will consume or use the exported good as a consumable, for its own internal processes, as an input to the production of another good or as machinery or equipment that is part of a manufacturing process or a provision of services and will not resell or distribute the good.
  2. Government Entity is a government-owned or government-controlled agency, institution, enterprise, or company.
  3. Reseller is a non-government reseller, retailer, wholesaler, distributor, distribution center or trading company.
  4. Other/Unknown is an entity that is not a Direct Consumer, Government Entity or Reseller, as defined above, or whose ultimate consignee type is not known at the time of export.

Helpful tips to consider:

  • If the form of the good (commodity) exported is changed or consumed by the ultimate consignee, the type would be direct consumer.
  • If you chose other/unknown and later determine the ultimate consignee type changed, you may update the type in the AES.

So which type do you choose?

Identifying the proper ultimate consignee is pretty simple. Just remember to focus on the primary business function of the ultimate consignee. If more than one type applies, choose the type that applies most often. Let’s take a look at a couple of examples:

Example 1: If you export printers to a company in Scotland and they use the printers in their office, what ultimate consignee type do you choose?

Drum roll please… Direct Consumer.

The Reason: The ultimate consignee is using the printer for its own consumption.

Example 2: If you export paintings to an art distributor in France, what ultimate consignee type do you choose?

Drum roll please…Reseller

The Reason: The ultimate consignee is a distributor.

For more information on ultimate consignee type, refer to Section 30.6(a)(28) in the Foreign Trade Regulations. If you still have questions, contact the Regulations, Outreach and Education Branch at 1-800-549-0595, Option #3.

woman questioning

 

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Watch our FREE Webinar: International Traffic in Arms Regulations (ITAR)

summerwebinarseries2014On July 22, we held our 4th webinar in The Basics of Export Compliance Summer Webinar Series, which focused on the International Traffic in Arms Regulations (ITAR) and how to be compliant when exporting military items. If you missed it, you can still benefit from our new information packed webinar. Click here to watch the recording for free!

Experts from the Department of State presented on the following items:

  • US Munitions List (USML) items
  • Application Process for obtaining an ITAR controlled item license
  • Updates on the Export Control Reform
  • Filing ITAR controlled items in the Automated Export System (AES)

Don’t forget to Mark your calendar for August 5th @ 2pm EST. We will have the experts from the Office of Foreign Asset Control discussing sanctions and embargoes on foreign countries.

Go to our Basic of Export Compliance webpage for more information on this webinar and view our previous recordings.

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Discover Global Markets with TradeSource

By: Cesar Anchiraico

Are you looking to increase your export sales or expand into new international markets? With most of the world’s consumers outside of the United States, now is the opportunity to boost your bottom line by attending one of the DISCOVER conferences. Each DISCOVER conference features different regions for U.S. business, including key contacts, industry expertise and market opportunities with high U.S export potential.

For a quick preview of the DISCOVER GLOBAL MARKETS 2014 series schedule, please see below:

discover_global_mkts_business_forum

 

2014 Schedule:

Free Trade Agreements

Detroit, MI

September 9–10

Click here for the latest agenda and to register.

Greater China

New York, NY

October 7–8

Click here for the latest agenda and to register.

The Americas

Charlotte, NC

October 29–31

Click here for the latest agenda and to register.

Sub-Saharan Africa

Atlanta, GA

November 5–6

Click here for the latest agenda and to register.

Healthcare and Life Sciences

Minneapolis, MN

November 17–18

Click here for the latest agenda and to register.

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For specific details about the DISCOVER conferences and how to register, please refer to the July 2014 TradeSource edition.

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Watch our FREE Webinar: Learn more about the Export Administration Regulations

summerwebinarseries2014

On July 8, we held our third webinar in The Basics of Export Compliance Summer Webinar Series, which focused on Export Administration Regulations (EAR). If you missed our new information packed webinar, click here to watch the recording for free!

Experts from the Bureau of Industry and Security (BIS) presented on the following items:

  • Determining Export Control Requirements
  • AES Changes for Export Control Reform
  • Types of Commerce Exports
  • Types of screening lists
  • Export Control Classification Numbers
  • Commerce Control List (CCL)
  • Filing export information for Commerce controlled items in the Automated Export System (AES)
  • EAR Changes
  • 600 series items

We will be hosting our next free webinar on July 22, which focuses on Complying with the International Traffic in Arms Regulations.

View past and sign up for future webinars.

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U.S. International Trade Deficit Decreases in May

By: Carlann Unger

The trade deficit in goods and services decreased $2.6 billion to $44.4 billion in May. Exports increased $2.0 billion to a record high of $195.5 billion. Imports decreased $0.7 billion to $239.8 billion. Contributors to the record high exports include record exports of automotive vehicles, parts, and engines ($13.5 billion) and consumer goods ($16.8 billion). For more information on these and other records for this month, check out the “Monthly Trade Highlights” page.

In May, the state with the largest increase in exports was Texas ($842.3 million). So far this year, Texas has exported $120.3 billion worth of goods, more than any other state. Their current top export is Petroleum and Coal Products ($25.3 billion), followed by Chemical Products ($10.4 billion), and Oil and Gas Products ($7.6 billion). Where are these goods going? Mexico is the top importer of goods from Texas, importing $43.1 billion worth of products so far this year. Canada is the second highest importer at $12.9 billion followed by Brazil at $5.3 billion. Visit our “State Trade Data” page to find trade information on your state

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Watch our FREE Webinar: Classifying your Product

6-26-2014 2-17-15 PMOn June 24, we held our second webinar in The Basics of Export Compliance Summer Webinar Series, which focused on Classifying your Product. If you missed our exciting new webinar, click here to watch the recording for free!

Our classification expert reviewed the following items:

  • What are the Harmonized Tariff Schedule and Schedule B?
  • How to use the General Rules of Interpretation to determine the correct Schedule B for your commodity
  • How to use the Schedule B search engine
  • Where to find additional resources for commodity classification

If you have questions regarding classification, please contact the Commodity Analysis Branch at 1-800-549-0595, option 2.

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Commodity Spotlight: Cotton

By: Mayumi Escalante

Cotton swabs, blue jeans, sewing thread, t-shirts, bed sheets. What do these products have in common? They all are made from cotton.

The U.S. Census Bureau is the source of detailed export and import statistics on finished goods (like those listed above). We also publish trade data on the very materials and inputs that are transformed into items you and I wear or use every day.

Just how much cotton does the U.S. export, you ask?

In 2013, the U.S. exported more than $5.5 billion of raw cotton (classified under Schedule B heading 5201). That’s a lot of fluff! Here is a list of the top five countries that imported American cotton during that year:

data tablepie - final2

Source: USA Trade Online

Want to know more about U.S. exports of cotton? Check out USA Trade Online for detailed statistics. First time users are eligible for a one-week (7-day) free trial. For additional information, contact the Data Dissemination Branch at 1-800-549-0595, Option #4.

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The Basics of Export Compliance – Summer Webinar Series begins June 10th

By: Josefina Hicho

We are pleased to announce that we are hosting free webinars on the basics of export compliance from June 10 through August 26. We collaborated with other government agencies to bring you the latest information on exporting, such as classifying your product, filing requirements and licensing determination. If you are looking to improve your compliance knowledge, this is a great opportunity you don’t want to miss.

The webinars are hosted by international trade experts and allow you the opportunity to ask questions along the way. All six sessions begin at 2pm EST. Visit our Outreach page to register and to find out more information on each session.

June

Understanding the Foreign Trade Regulations

Presented by: U.S. Census Bureau • June 10, 2014

Classifying Your Product

Presented by: U.S. Census Bureau • June 24, 2014

July

Learn more about the Export Administration Regulations

Presented by: Bureau of Industry and Security • July 8, 2014

Complying with the International Traffic in Arms Regulations

Presented by: State Department • July 22, 2014

August

Sanctions and Embargoes: What it means to you?

Presented by: Office of Foreign Assets Control • August 5, 2014

Utilizing the Features in the AES

Presented by: U.S. Census Bureau • August 26, 2014

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U.S. International Trade Deficit Increases in April

By: Henock Kebede

The trade deficit in goods and services increased $3 billion to $47.2 billion in April.  This reflects a decrease in exports by $0.3 billion to $193.3 billion, and an increase in imports of $2.7 billion to a $240.6 billion.  Among the contributors for this record import number are record imports for four goods categories (in billions of dollars): capital goods ($48.6), consumer goods ($47.5), Automotive ($27.2), foods, feeds and beverages ($10.8).  Check out our “Trade Highlights” page for more information.

Staying with the import theme, did you know that so far in 2014, China alone accounted for over 72% of U.S. imports of computers? More information on this can be found in our “Graph of the Month” page.

Lastly, as explained in last month’s blog, the following changes took effect this month:

  • New Exhibit (Exhibit 20) – it has quarterly seasonally adjusted trade in goods and services on a balance of payments basis for select major trading partners.
  • Reclassification of goods to a BOP basis – net exports of goods under merchanting are reclassified as goods through a new balance of payments adjustment.
  • Changes to services – The number of service categories in Exhibits 3 and 4 will change and increase from seven to nine.
  • Revision to goods and services – the annual revision for 2013 includes corrections and adjustments to trade in goods on a Census basis beginning with 2011, and statistics calculated on a balance of payments basis beginning with 1999.

More information on these changes can be found here.

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