Download The Exporter’s Toolkit

Posted on August 1, 2012 by Global Reach Daniel

Find yourself going through a gazillion web pages just to find out the basics of exporting? It shouldn’t be that difficult. This is why we have compiled “The Exporter’s Toolkit”. This toolkit acts as a guide and includes a listing of different government resources available to you. From locating a market to figuring out financing options to determining applicable regulations, this toolkit is a central source for all of your exporting needs.

The Exporter’s Toolkit: Your Guide to U.S. Government Exporting Resources

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The Nuts and Bolts of Getting Equipment Overseas

Posted on July 25, 2012 by Global Reach Daniel

By Bill Armbruster for the United States Council for International Business (USCIB)

When you are traveling with high-value goods overseas, it helps to have things nailed down in advance.

Gregory Young, vice president of International Bolting Technologies Inc., remembers the hassles he used to have when traveling outside the U.S. to demonstrate to potential foreign customers sophisticated electronic equipment. To ensure that the product cleared Customs, Young hired a Customs broker in the foreign country to file documents for temporary admission and airfreighted the equipment four weeks before his (Young’s) arrival to demonstrate the equipment. Once the job was complete, he again airfreighted the product back to the U.S. using a second broker to clear U.S. customs.

“Depending on the country, those steps alone could cost up to $2,000,” says Young. “Furthermore, many countries require that goods brought in under temporary admission be returned to their original point of entry, so making a multi-country trip is not practical.”

The USM-3 Ultrasonic Bolt Meter measures bolt stretch, as little as 0.00001 inch or 0.0001 millimeter, and diagnoses problems caused by over- or under-tightening of bolts. “Improper bolt stretch can result in catastrophic failure,” adds Young. Industries using the USM-3 include aerospace (It was used on the payload of STS-125 – Hubble Repair Mission 4). to automotive, mining and petrochemical refineries. International Bolting Technologies, based in Orange City, Florida, is a distributor for Norbar USA, which manufactures the bolt meter in Connecticut.

In 2008, when a customer recommended to Young that he try an ATA Carnet for demonstrating his equipment to Finland and Russia to potential customers there, Young was all ears. “The U.S. Export-Import Bank had mentioned the ATA Carnet to me previously, but at that time I did not grasp how it could truly benefit my situation,” Young says.

Carnets are an internationally agreed customs document that allow for the temporary tax- and duty-free entry of goods into 71 countries. Customs duties and VATs (value-added taxes) vary widely around the world. In the European Union, the minimum VAT is 15 percent with Finland at 23 percent. In Mexico, the VAT ranges from 10 to 16 percent. Duty is imposed on top of the VAT.

The USM-3 is an expensive, cigar box-sized device. Carrying it by hand, before he started using Carnets, caused Young a lot of anxiety, as he was often required by customs to surrender physical possession of the unit. “Customs forms ask whether you have any commercial merchandise to declare. Due to the high value of the goods, Customs would take them from me and place them in storage, leaving me with just a receipt. They would only return the goods after a customs broker had filed the necessary documents for temporary admission,” Young says. “Customs clearance could take days, depending on the country,” he adds. With the Carnet, Young carries the USM-3 with him and clears customs without the aid of a broker.

Young has used Carnets five times, most recently in October on a trip to the International Mining Expo in Acapulco, Mexico. “The Carnet made everything a lot smoother,” he says, noting that the equipment attracted considerable attention. He expects the leads he developed at the Acapulco show will translate into sales for his three-person company. Exports account for about half of his business, so by cutting red tape, Carnets allow Young to concentrate on sales.

Young notes that it only takes two or three days to receive his Carnet from USCIB after he applies for it. “It’s a short turnaround, and it’s very affordable,” he says. Carnets cost $215 to $355, depending on the value of the product. “The people at USCIB are very professional and very helpful,” citing, in particular, Carnet staffers Kristi Bang and Fred Mardis.

Young expects that his next overseas trip will be a two-week visit to three or four countries in Europe next May. Asked whether he plans to use the Carnet then, he replied, “Absolutely. It would be too time-consuming and expensive to go back to the old method. I would never even consider taking one of my products to another country without a Carnet.”

In the U.S., the United States Council for International Business (USCIB) administers Carnets under appointment of U.S. Customs and Border Protection. For more information about Carnets, please visit www.merchandisepassport.org.

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How to Benefit from Free Trade Agreements

Posted on July 18, 2012 by rosannatorres

By: Melissa Scott

Many of you are probably aware that three free trade agreements (FTAs) were approved in October, 2011 – South Korea, Colombia and Panama. The U.S. – Korea FTA became effective March 15, 2012, and the U.S. – Colombia FTA became effective on May 15, 2012. Panama is targeted to enter into force by the end of 2012.

As soon as Free Trade Agreements are published in the Federal Register, the Census Bureau’s, Foreign Trade Division hits the ground running to implement all of the necessary program changes to ensure the U.S. trade statistics capture FTA related trade as soon as possible. This is approximately 40 to 42 days after the end of the statistical month.

Interestingly enough, following the U.S. – Korea agreement, April imports from South Korea were the highest on record at $5.5 billion. For more detailed information about the most current import and export statistics on South Korea, and all U.S. trading partners, go to USATradeOnline.

Another great resource that can help answer your questions about how the U.S.- Korea and other trade agreements can benefit you is the FTA Tariff Tool! The FTA Tariff Tool combines tariff and trade data into a simple and easy-to-search interface. Key features of using the tool include:

  • FTA Tariff Information – This tariff search tool allows users to find tariff information on specific ‘industrialized goods’ covered under the U.S. FTAs. U.S. importers and exporters can see the tariff applied on the date the FTA enters into force, and the rates each subsequent year as the tariffs are reduced or eliminated altogether under the agreement. Products are searchable by Harmonized System (HS) codes. If you do not know your products HS code, the U.S. Census Bureau’s Schedule B Search Engine can help you determine your HS code by allowing you to search by keyword or product description.
  • Market Access Reports – This tool provides users with the ability to determine the levels of new market access presented under various U.S. FTAs. Users can search various industrial sectors or product groups and see the amount of trade or products assigned to the various duty-elimination categories as negotiated under the agreement.
  • FTA Tariff and Trade Snapshot – Users can obtain a snapshot of current tariff rates and trade under the various U.S. FTAs. Using this tool, users can search by industrial sector or HS chapter and drill down for more detailed product information.

A current limitation to the FTA Tariff Tool is that it covers only “industrial good” products. Work is ongoing to add agricultural and textile products to future versions of the Tariff database.

Ultimately, these resources can help you calculate appropriate pricing for your product, identify new markets, and take full advantage of the U.S. trade agreements!

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May 2012 Trade Data

Posted on July 11, 2012 by katrinarosen

By: John Sperry

For May 2012, the trade deficit in goods and services decreased to $48.7 billion from $50.6 billion (revised) in April, as imports decreased and exports increased to $231.8 billion and $183.1 billion, respectively.  May exports and imports of services were the highest on record $52.4 billion and $37.5 billion, respectively. 

Record exports of foods, feeds, and beverages ($11.8 billion) contributed to the April to May increase in exports. Exports of services ($52.4 billion) were the highest on record.  These new records helped drive May’s ($183.1 billion) exports of goods and services to the second highest on record, behind March’s ($184.4 billion).

Record imports of automotive vehicles, parts, and engines ($25.0 billion) contributed to offsetting the April to May decrease in imports.  Decreases in industrial supplies and materials ($3.6 billion); consumer goods ($0.4 billion); and foods, feeds, and beverages ($0.1 billion) represented key import declines.

May also reinforced China’s April ascension above Mexico as the United States second largest trading partner. To see more go to http://www.census.gov/foreign-trade/statistics/highlights/top/top1204cm.html.

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BusinessUSA is here to Help Exporters

Posted on June 27, 2012 by Global Reach Daniel

By Matthew Falls of BusinessUSA. Matthew can be contacted at MFalls@doc.gov

BusinessUSA.gov and its partner Export.gov feature resources for companies to become involved in exporting, from filling orders for domestic buyers (such as export trading companies that then export the product) to exporting products yourself. However you choose to export, the development of a detailed and thorough strategy is an important part of the planning process. Steps in developing a strategy include:

  • Evaluating your product’s export potential;
  • Determining if you are really willing to make a commitment to international markets and evaluating whether your company is “export-ready”;
  • Identifying key foreign markets for your products through market research;
  • Evaluating distribution and promotional options and establishing an overseas distribution system;
  • Determining export prices, payment terms, methods, and techniques;
  • Familiarizing yourself with shipping methods, export documentation procedures, export financing, and other requirements for exporting.

The Trade Information Center (TIC) trade specialists can help your company analyze its export potential. The Export Basics section of the website is also available to help you better understand the export process and evaluate your company’s export-readiness.

Other resources for exporters on BusinessUSA.gov include:

There are also additional export training and counseling services:

  • The Trade Information Center provides export counseling to U.S. businesses and individuals by phone and via the Web.
  • The Small Business Development Centers offer free business advice and low-cost training to existing and future entrepreneurs.
  • SBA has a network of SCORE Mentors who volunteer as mentors to small businesses.
  • U.S. Export Assistance Centers (U.S.EACs) provide front-line outreach and service operations for U.S. exporters. The centers assist U.S. businesses that are new to exporting, want to expand to additional export markets, or want to increase their market share in existing markets.
  • The Exporting Strategic Partnership Program promotes exporting and the government resources available to small and medium-sized businesses to export.
  • The U.S. Commercial Service provides International Trade Advocacy to level the global playing field for U.S. companies pursuing contracts with foreign governments.
  • MEP ExporTech helps companies enter or expand in global markets. The program assists participating companies in developing an international growth plan, provides experts who will vet their plans, and connects the companies with organizations like yours that will help them move quickly beyond planning to actual export sales.
  • International Trade Missions help U.S. companies learn first-hand about overseas markets by attending market briefings, visiting sales channels, and meeting face to face with qualified potential buyers, agents, distributors, and other business partners.
  • The International Buyer Program provides practical, hands-on assistance at select U.S. trade shows to U.S. exhibitors interested in exporting and making contacts with prospective qualified overseas trade partners. This assistance includes export counseling, marketing analysis, and matchmaking services.
  • The Automated Export System is an electronic service for mandatory reporting of items exported from the United States.
  • Dual-Use Export and Reexport Control Regulatory Compliance Assistance provides export regulations and compliance counseling, nationwide seminars, and online educational materials for exporters.
Posted in Export Filing, Foreign Trade Data, Foreign Trade Regulations | Tagged , , , , , , | 1 Comment

States battle for export spotlight – The race to expand U.S. exports is on!

Posted on June 20, 2012 by Global Reach Daniel

By: Daniel Cariello

Exporting goods has always been integrated in the fabric of the U.S. economy but recently there has been a growing trend to capitalize on foreign demand of American goods.

According to data provided by USA Trade Online between the years 2002 and 2011 average U.S. exports have grown by $760.5 billion. Quite an impressive figure! Growth like this may leave you wondering which states are leading U.S. export expansion.

The graph below depicts the change in export value between the year 2002 and 2011 for the top twenty states in descending order.

*data obtained from USA Trade Online

Export growth in Texas ($154.4 billion) was the largest increase in the United States between 2002 and 2011. It leads California, the second largest growing export state, by $87.3 billion. Mineral fuels, mineral oils and products of their distillation grew $52.7 billion and were the largest contributors to export growth in Texas. $44.6 billion (or 85 percent) of the growth in mineral fuels is concentrated in the following commodities:

Light Oils – $16.8 Billion

Petroleum Oil – $27.8 Billion

*data obtained from USA Trade Online

If you want to obtain commodity data at the national and state level, feel free to contact our analysts in the Data Dissemination Branch of the Foreign Trade Division to learn more about how to use our interactive online tool USA Trade Online.

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National Export Initiative Priority Markets: Thailand

Posted on June 13, 2012 by Global Reach Daniel

The U.S. Commercial Service is the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration. U.S. Commercial Service trade professionals in over 100 U.S. cities and in more than 75 countries help U.S. companies get started in exporting or increase sales to new global markets. *So far this year, we have helped American business achieve 6,400 export success stories.*

This is a featured video from the National Export Initiative Priority Markets series.

Download

full video .mp4 (19MB)

Thailand’s population is 68 million. Two-way trade was about $33 billion in 2010, with $23.6 billion in Thai exports to the U.S. and $9 billion in U.S. exports to Thailand, an increase of 28 percent, while Thailand’s GDP went up 8 percent. Thailand’s economic growth has created opportunities for U.S. companies in infrastructure sectors, including electrical power, telecommunications, and renewable energy, and also for U.S. medical products, cosmetics, security equipment, food supplements and educational services.

For more information about Thailand:

Thailand Market Research

Upcoming Thailand Trade Events

U.S. Commercial Service Thailand

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April 2012 Trade Data

Posted on June 8, 2012 by katrinarosen

By: Janet Freas

For April 2012, the trade deficit in goods and services decreased to $50.1 billion from $52.6 billion (revised) in March, as both exports and imports decreased to $182.9 billion and $233.0 billion, respectively.  Both exports and imports where down from the record highs in March resulting in an unremarkable April. 

The 2011 annual revisions release did not change the overall trend in the goods and services balance.  On an annual basis, the goods and services deficit was revised down 0.6 percent for 2009, was revised down 1.1 percent for 2010, and was virtually unrevised for 2011.  The goods deficit was revised down for 2009 and 2010 and up for 2011; the services surplus was revised up for all three years.  These revisions reflect newly available and revised source data and minor improvements to estimation methodologies. For more information, please see U.S. International Trade in Goods and Services – 2011 Annual Revision.

The March to April decrease in exports of goods reflected decreases in capital goods ($1.5 billion); industrial supplies and materials ($1.0 billion); and other goods ($0.6 billion). Increases occurred in foods, feeds, and beverages ($0.7 billion); automotive vehicles, parts, and engines ($0.4 billion); and consumer goods ($0.2 billion).  

The March to April decrease in imports of goods reflected decreases in capital goods ($2.0 billion); industrial supplies and materials ($0.6 billion); other goods ($0.5 billion); consumer goods ($0.5 billion); and automotive vehicles, parts, and engines ($0.4 billion). Foods, feeds, and beverages were virtually unchanged.

 April imports from South Korea ($5.5 billion) were the highest on record. This follows the entry into force of the U.S.- Korea trade agreement on March 15, 2012.  The graph below shows the largest commodities imported from South Korea in April.  You can find more information about import and exports from South Korea and all U.S. trading partners on the Census, Foreign Trade page Country and Product Trade Data.    For more information on the U.S. International Trade in Goods and Services, or to sign up to be notified by email when changes occur, go to the Foreign Trade Statistical Notices page.

 

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ITN: Trade Term of the Month

Posted on May 30, 2012 by rosannatorres

By: Terri Long

In life when you travel the world, you need a passport to verify your identity. Your passport provides all of the necessary information that allows you to move from country to country. The same kind of verification is required for export transactions.

An ITN, our May Trade Term of the Month, is essentially the passport for your export shipment.

The ITN (Internal Transaction Number) is the number you receive confirming your Electronic Export Information (EEI) has been accepted in the Automated Export System (AES). AESDirect filers will receive an email with the ITN after acceptance. The ITN begins with an X and consists of the year, month, day of acceptance and a 6-digit random number. For example, an ITN for an accepted filing on January 1, 2012, would look like X20120101999999.

In order to clear Customs at the port of export and send the shipment along its journey, the ITN must appear on the following (where applicable):

  • Bill of lading
  • Air waybill
  • Export shipping instructions
  • Other commercial loading documents

Unlike our international travel, there are some exceptions to the ITN requirement, including:

  • Export transactions valued at or under $2,500 that don’t require a license or
  • Non-licensed export transactions destined to Canada

However, barring those exceptions, a carrier (plane, vessel, train, truck) will not accept your export shipment without its corresponding ITN.

Essentially, without an ITN, in most cases you cannot export your merchandise.

For more information about the ITN, please call 1-800-549-0595,  Option #1. You may also find ITN and other trade terms in our Definitions page.

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Back to the Basics – Ensuring Your Privacy, Leave the EIN Out!

Posted on May 23, 2012 by Global Reach Daniel

By: Nidaal Jubran

Be mindful of the information you are transmitting electronically. We often receive requests for a number of items surrounding AES, such as resolutions for fatal errors, tracking AES responses for shipments, initiating suppressions, etc. In doing so, some people provide their company’s sensitive information through email, particularly their company’s Employer Identification Number (EIN). This should be avoided. EIN information should never be transmitted to the Census Bureau via email. Although we require your EIN to identify your company’s profile in the AES and to service your AES needs, there are other ways for you to provide this information to us, indirectly. The best, and safest, way for you to send this information is by providing a previously accepted Internal Transaction Number (ITN) filed by your company. Your EIN is directly linked to your ITN. Once we have this information we can safely and securely identify your company’s information.

There are plenty of other business practices you can adopt to protect your EIN. I’ve listed a few of them below:

  • Do not reply or forward an email message that contains an EIN in the thread history. If you must reply or forward the message, make sure that the message history is not included in your reply. You have the option to send a reply without including the full history of the email thread.
  • Do not include your company’s EIN in the subject line of your email message. I do see this from time to time when I am monitoring the ASKAES mailbox, and when this happens I always remind the user that this is not a safe business practice.
  • Do not submit your EIN as an attachment within a message. Although it appears to be secure, and safer than including the EIN in the body of the message itself, this type of practice should be avoided.
Posted in Export Filing | Tagged , , , | 3 Comments