uscs intl trade 101

8/12/2019 USCS Intl Trade 101

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International Trade 101

Presented by: FedEx Services and the U.S.Commercial Service

Facilitator: Steve Miles


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Agenda for Todays Webinar

Part 1 Jim Golsen, Foreign Commercial Officer, U.S. Commercial Services

Export Opportunities

Free Trade Agreements

Hurdles and Solutions for First Time Exporters

Part 2 Shawn Coll ins , Sales Professional, FedEx Services

Domestic vs. International shipping

International Documentation

Resources

Q&A

04/27/11International Trade 101


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Additional Panelists

In addit ion to our speakers, we also have others present to answerquestions:

Arnethia Hopson FedEx Express, Regulatory Consulting Group

Amy Johnson FedEx Services, U.S. International Marketing

Kosha Mehta FedEx Services, U.S. International Marketing

Stephen Smith FedEx Services, U.S. International Marketing



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Disclaimer

Every effort has been made to ensure the accuracy of this

presentation at the time of publ ication, but the comments herein are

necessarily of a general nature, are for information purposes only, are

subject to change as regulatory requirements change, and do not

constitute legal advice in any matter whatsoever.

You are urged to seek specific advise on matters of concern and not to rely

solely on this presentation.



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INTERNATIONAL TRADE 101

Jim Golsen, U.S. Commercial Service



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Export Opportunity

U.S. Exports of goods and services in 2010 reached $1.83 tri llion,the second highest annual total on record and the largest year-to-year percent change in over 20 years. In 2010, exports contributedto nearly half of the 2.9 percentage point growth in real U.S. GDP.

National Export Initiative making exporting easier:Streamlining export controls

Broadening access to export finance

Enhancing export advocacy and market access

Pursuing Free Trade Agreements



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Leading Export Sectors - Mexico


Agribusiness

Automotive Parts and Supplies

Education and TrainingServices

Energy Sector

Environmental Sector

Franchising Sector

Housing and Construction

Internet and IT Services

IT Health Care

Packaging Equipment

Plastic Materials/Resins

Secur ity and Safety

Telecommunications

Transportation Infrastructure

Travel and Tourism Services


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Free Trade Agreements

Country 2007 2008 Percent Change

NAFTA 332,499 353,931 6.45%

Canada 213,118 222,424 4.40%

Mexico 119,381 131,507 10.20%

CAFTA-DR 21,274 23,922 12.45%

Costa Rica 4,224 5,047 19.50%

Dominican Rep 5,793 6,293 8.60%

Guatemala 3,872 4,493 16.00%

Honduras 4,327 4,699 8.60%

Nicaragua 846 1,030 21.70%

El Salvador 2,209 2,357 6.70%

Australia 17,916 20,948 16.90%

Bahrain 565 779 37.80%

Chile 7,610 11,366 49.40%

Israel 9,940 10,238 3.00%

Jordan 831 904 8.70%

Morocco 1,333 1,506 12.90%

Oman 1,034 1,380 33.40%

Peru 3,764 5,686 51.10%

Singapore 23,576 25,655 8.80%

Total 420,348 456,319 8.60%


Improving intellectual propertyright (IPR) protection

Enhancing labor rights

Government procurement

Opening service sectors tocompetition

Enhancing rules on foreign

investment

Environmental standards

Improving customs facilitation

Free Trade Agreements (FTA) canbenefit companies

All figures are shown in US dollars (millions)


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Hurdles and Solutions for First Time Exporters

Product registration, local standards requirements (Medical, Electronic,Food Products, etc.). Work with local U.S. Export Assistance Center (USEAC) Trade Specialists to map out

requirements before entering market.

Import Documentation, Customs Duties.

Call 1-800-USA-TRAD(E) to find out the duties and documentation requirements for your market.

Getting Paid. Commercial Service Officers overseas will work with you to ensure you get paid by your

international buyer.

Protecting your technology, Intellectual Property Rights (IPR). USEAC Trade Specialists can counsel you on how to protect your IPR before entering a market.

stopfakes.gov Cultural Barriers, getting to know the market.

Access Commercial Service Country Commercial Guides and other free market research on your targetmarket at export.gov.


U.S. Commercial Service provides solut ions


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Suggested Markets for First Time Exporters

Ease of entry Start with developed markets with predictable, easy to understand market entry models

(NAFTA, EU).

Free Trade Agreement (FTA) markets Take advantage of preferential treatment of U.S. goods in FTA markets (NAFTA, Israel,

Singapore, Australia, Chile, etc.).

Regional Distribut ion Look for a market that can act has your regional distribution hub for the region once your

product is ready to expand (Asia-Singapore, Europe-Ireland, Middle East-Dubai, etc,).

Work with your local U.S. Export Assistance Center Discover and address all potential hurdles. Conduct due diligence on potential overseas

partners.


Selecting the right fi rst market wil l help ensure you aresuccessful and have a good experience.


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USCS Resources export.gov

Market Entry Strategy - (No Cost) Specialists will work with you directly to develop a market entry strategy for your product or

service, utilizing on the ground experts in your target market. Once in the market, USCS

will work with your company to ensure your product as market access and will advocate onbehalf of your company with the local government.

Finding Trading Partners - Gold Key Service ($700) CSs premier for fee service, CS specialists based in your target market will translate your

promotional materials, identify and vet potential partners and arrange a visit for you to themarket to meet with pre-qualified, interested end users or distributors of your product.

Due Diligence - International Company Profile ($500) CS staff in country, will perform an in-depth due diligence report on prospective partners,

distributors or customers.


U.S. Commercial Service staff are located in 110 U.S. Cities andbased out of U.S. Embassies and Consulates in over 90 marketsworldwide.


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INTERNATIONAL SHIPPING 101

Shawn Collins, FedEx Services



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Domestic vs. International Shipping:Regulatory Requirements

Customs regulationsDifferent documents may be required based on product, value, and destination

country.

Customer satisfaction is dependent upon customs clearance.

What can your carrier provide to help?

Tools to help plan in advance and guide you through shipping process.

Support in the event of a customs delay.

Up-to-date tracking information on the status of your shipment.

The primary differences between domestic and internationalshipping are the requirements that governments put in place toensure safety and duties & tax payment. This requires additionaldocumentation to identify the type of product being shipped and itsvalue.

International Trade 101 04/27/11


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International Shipments Require Extra Documentation

International requires additionaldetails

Importer of record if different thanconsignee. Ship To and Sold Toperson

Full commodity description with valueof the goods

Harmonized Tariff Code

Payer for Duties & Taxes, whenassessed

Most commonly used/requireddocumentation types

International Air Waybill (IAWB)

Bill of Lading (Ocean, Trucking)

Commercial Invoice (CI)

Electronic Export Information (EEI)

Certificate of Origin/NAFTA Certificate

of Origin

There are several pieces of information required to be included onthe shipment documentation for an international shipment

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Document Samples

Top primary documents required: International Air Waybill

Commercial Invoice

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Consequences of Incomplete Paperwork

Movement delays

Shipment could be held at pick up or clearance location

Incorrect classification

Higher duties and taxes

Detention or seizures by customs or other government agencies

Any of these could result in a bad experience for your customers

We will now review the most common documents, the

international air waybill and the Commercial Invoice, and therequired fields on each.



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International Air Waybill

Essential Data Elements

1. Appropriate accountnumbers

2. Name of seller/shipper

3. Name of buyer/consignee

4. Adequate descriptions ofshipment, contents &origins

5. Accurate values


1

2

3

4, 5


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International Air Waybill (Continued)


Essential Data Elements

1. Appropriate account numbers

2. Name of seller/shipper

3. Name of buyer/consignee

4. Adequate descriptions ofcontents & origins

5. Accurate values

4

4

5


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Commercial Invoice

Required Data:

1. The shippers information: Contact name, company name,complete address and tax identification number.

2. The recipients information: Contact name, company name,complete address and phone number.

3. The buyers information (the person to whom the goods are soldby the seller) if di fferent from the recipient: Contact name,company name, complete address and phone number.

4. Tracking number or Air waybill number

5. Complete descriptions of contents & origins: What the product

is, what material its made of, HTS code, intended use, country ofmanufacture, and serial numbers (if applicable).

6. Signature and date



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Commercial Invoice Example

Required Data:

1. The shippers information

2. The recipients information

3. The buyers information, if differentfrom the recipient

4. Tracking number / air waybill number

5. Complete descriptions of contents &

origins

6. Signature and Date


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EEI: Commodities Valued over $2,500

The U.S. Census Bureau documents and records export shipments

wi th single commodities valued over $2,500 that leave the U.S.

Shippers must f ile Electronic Export Information (EEI) with the U.S.Census

Previously known as the Shippers Export Declaration.

Multiple choices are available to enable exporters to meet therequirement

Self-file via U.S. Census site, registration required. www.aesdirect.gov

Connect to AESDirect using a FedEx Ship Manager electronic shipping solutionwith AESWebLink - FedEx Ship Manager will notify you that EEI is required basedon information you enter.

Use FedEx Export AgentFile, you can authorize FedEx either electronically orvia fax to file an EEI on your behalf.

04/27/11
http://www.aesdirect.gov/http://www.aesdirect.gov/


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Avoid Vague Commodity Descriptions

Invalid Descriptions Valid DescriptionsSamples Wood screws (samples)

Parts Guide, part for printing press

Promotional itemsGolf balls, ballpoint pens, key chains (for promotional use only,not for sale)

See Commercial Invoice

or see invoice

Desktop computer system (see Commercial Invoice for

breakdown)Part #Tf123 USB computer cable

Gift Mans 100% cotton T-shirt (gift)

No description Business letter

The description should answer these questions:

What is it?

What is it made of?

What will it be used for or with?

How many are there?

Must include enough information to allow classification or verification ofclassification.

International Trade 101 04/27/11


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Submitting Documents Electronically

Some carriers, including FedEx, offer a service that allows customsdocumentation to be submitted electronically. This can have manybenefits:

Operational Efficiency

Completed documents can be saved online to be reused, eliminating completing all fields foreach shipment.

Electronic documentation can be submitted to customs ahead of time, allowing theclearance process to begin earlier, which reduces chances of customs delays.

Save time, money, and be green

Save paper by eliminating the need to print multiple copies of each document for everyshipment.

Save time by eliminating the printing, folding, stuffing, and attaching to each shipment.

For information on FedEx Electronic Trade Documents:fedex.com/us/international/trade-documents/index.html

http://www.fedex.com/us/international/trade-documents/index.htmlhttp://www.fedex.com/us/international/trade-documents/index.html


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FedEx Online Tools and Resources

FedEx Global Trade Manager:

Determine which documents are required for your shipment

Estimate your duties and taxes

View country profiles

Get regulatory information for your shipment

Identify parties that have been denied international business transactions

Complete and store documents in the Document Preparation Center

fedex.com/GTM

Online document samples with instructions

fedex.com/us/international/shipping-documents/tips/index.html

Process your international shipment label wi th FedEx Ship Manager

https://www.fedex.com/shipping/shipEntryAction.do?origincountry=us&locallang=us&urlparams=us

Or go to fedex.com. Under Ship tab click Create Shipment. FedEx Ship Manager will

automatically update to an international air waybill when the destination country is changed. Additional Internat ional Shipping Information

fedex.com/us/international/

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http://fedex.com/GTMhttp://www.fedex.com/us/international/shipping-documents/tips/index.htmlhttps://www.fedex.com/shipping/shipEntryAction.do?origincountry=us&locallang=us&urlparams=ushttp://www.fedex.com/us/international/http://www.fedex.com/us/international/https://www.fedex.com/shipping/shipEntryAction.do?origincountry=us&locallang=us&urlparams=ushttp://www.fedex.com/us/international/shipping-documents/tips/index.htmlhttp://fedex.com/GTM


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External Resources

U.S. Commercial Service websitewww.Export.gov Free

U.S. Census Harmonized Code Lookup

http://uscensus.prod.3ceonline.com/#/p=0

A Basic Guide to Export ing 10th Edition

Available online at www.amazon.com

Approx $14.00

Dictionary of International Trade

Available online at

http://www.worldtradepress.com/Dictionary_of_International_Trade.php

Approx $65.00

04/27/11
http://www.export.gov/http://uscensus.prod.3ceonline.com/http://www.amazon.com/http://www.worldtradepress.com/Dictionary_of_International_Trade.phphttp://www.worldtradepress.com/Dictionary_of_International_Trade.phphttp://www.amazon.com/http://uscensus.prod.3ceonline.com/http://www.export.gov/