basic-guide-to-exporting_Latest_eg_main_086196

More documents

Recommendations

Info

Some of the more important services are described in Chapter 6. You can access these servicesby contacting your nearest U.S. Commercial Service office. The U.S. Commercial Service can alsoprovide assistance with business travel before departure by arranging advance appointmentswith embassy personnel, market briefings, and other services in the cities you will be visiting.U.S. Trade and Development Agency (ustda.gov)Industry and international trade specialists in the U.S. Trade and Development Agency (TDA)work directly with individual companies and manufacturing and service associations to identifytrade opportunities and obstacles by product or service, industry sector, and market. TDA analystsparticipate in trade policy development and negotiations, identify market barriers, and advocateon behalf of U.S. companies. TDA’s statistical data and analyses are useful in export development.The TDA staff also develops export marketing programs and obtains industry advice on tradematters. To assist U.S. businesses in their export efforts, TDA’s industry and international expertsconduct executive trade missions, trade fairs, marketing seminars, and business counseling, andprovide product literature centers.Export-Import Bank of the United States (exim.gov)The Export-Import Bank of the United States (Ex-Im Bank) is an independent U.S. governmentagency that facilitates the export of U.S. goods and services. As the federal government’s exportcredit agency, Ex-Im Bank provides export credit insurance, loan guarantees to lenders, directloans to exporters on market-related credit terms, and loans to foreign buyers.Ex-Im Bank’s insurance and loan guarantees are structuredto encourage exporters and financial institutions to supportU.S. exports by reducing the commercial risks (such as buyerinsolvency and failure to pay) and political risks (such as warand currency inconvertibility) of international trade that couldresult in nonpayment to U.S. exporters by foreign buyers. Thefinancing made available under Ex-Im Bank’s guarantees andinsurance is on market terms, and most of the commercial andpolitical risks are born by Ex-Im Bank.Ex-Im Bank provides export creditinsurance, loan guarantees, directloans, and foreign buyer loans—all designed to help you completeyour international sale more easily.Ex-Im Bank’s loan program is designed to neutralize interestrate subsidies offered by foreign governments. By responding with loan assistance, Ex-Im Bankenables U.S. financing to be competitive with that offered by foreign exporters.Preexport FinancingThe working capital guarantee enables lenders to provide the financing that an exporter needs topurchase or produce a product for export, as well as to finance short-term accounts receivable. Ifthe exporter defaults on a loan guaranteed under this program, Ex-Im Bank reimburses the lenderfor the guaranteed portion—generally, 90 percent of the loan—thereby reducing the lender’soverall risk. For qualified loans to minority, woman-owned, or rural businesses, Ex-Im Bank canincrease its guarantee coverage to 100 percent. The working capital guarantee can be used eitherto support ongoing export sales or to meet a temporary need for cash flow arising from a singleexport transaction.Chapter 4: Export Advice47
The working capital guarantee offers generous advance rates, so exporters canincrease their borrowing capacity. Rates apply in:• Inventory—up to 75 percent advance rate (including work-in-process—that is,material that has been released to manufacturing, engineering, design, orother services)• Foreign accounts receivable—up to 90 percent advance rate guaranteed workingcapital loans are secured by export-related accounts receivable and inventory(including work-in-process) tied to an export order. (For letters of credit issuedunder a guaranteed loan, Ex-Im Bank requires collateral for only 25 percent of thevalue of the letter of credit.)Postexport FinancingEx-Im Bank offers export credit insurance to offset the commercial and political risksthat are sometimes associated with international trade. The insurance protects anexporter’s short-term credit extended for the sale of consumer goods, raw materials,commodities, spare parts, and other items on payment terms up to 180 days. Capitalgoods are eligible for up to 360 days. If the buyer fails to pay, Ex-Im Bank reimbursesthe exporter in accordance with the terms of the policy. Ex-Im Bank insurance is thelargest federal program supporting short-term export credit.Ex-Im Bank insurance policies for exporters include Multi-Buyer Credit Insurance, theSmall Business policy, and the Single-Buyer policy. With prior written approval, anexporter can assign the rights to any proceeds from an Ex-Im Bank insurance policyto a lender as collateral for financing. Ex-Im Bank’s policies generally cover up to95 percent of defaults caused by specified political risks and defaults arising fromcommercial risks. Ninety percent coverage is provided on short-term single-buyerpolicies. Exporters generally must meet U.S. content requirements and, under somepolicies, must insure all eligible foreign sales.Several private companies also offer export credit insurance that covers politicaland commercial risks. Private insurance is available, often at competitive premiumrates, to established exporters who have a proven history, although underwriting inparticular markets may be limited.Under separate programs, the bank buyer credit policy, Ex-Im Bank offers insuranceor a guarantee to encourage banks and other lenders to make export loans tocreditworthy foreign buyers of U.S. goods and services. Ex-Im Bank supports eithermedium-term financing (1 to 5 years for repayment after delivery or equipmentinstallation) or long-term financing (up to 10 years for repayment) for heavyequipment and capital projects, such as power plants, telecommunications systems,and transport facilities and equipment.As an alternative to guarantees, Ex-Im Bank also offers medium- and long-term loans.Ex-Im Bank loans are made on the same terms and conditions as guarantees, with48U.S. Commercial Service • A Basic Guide to Exporting
Page 1 and 2: A BASIC GUIDE TOEXPORTINGThe Offici
Page 3: export.gov/basicguideLibrary of Con
Page 6 and 7: Table of ContentsChapter 1: Introdu
Page 8: global GDP and 30 percent of global
Page 11: A GEE might consist, for example, o
Page 14 and 15: Success StoryPedaling Through Trial
Page 16 and 17: Chapter 2Developing anExport Strate
Page 18 and 19: specified in the EAR under a specif
Page 20 and 21: All U.S. businesses have many ways
Page 23 and 24: Answer these 11 questions:1. Which
Page 25 and 26: Product or Service• What need doe
Page 27 and 28: Sample Outline of anExport PlanTabl
Page 29 and 30: 5. Current Trends and Practices•
Page 31 and 32: 16. My Product’s Harmonized Code
Page 33: Success StoryDownloading NewInterna
Page 36 and 37: This last advantage is especially i
Page 38 and 39: Gathering and evaluating secondary
Page 40 and 41: Drawing ConclusionsAfter analyzing
Page 42 and 43: United Nations Statistical Yearbook
Page 44 and 45: Private-Sector Product and Industry
Page 46 and 47: Success StoryHelping Feed the World
Page 48 and 49: Chapter 4Export AdviceIn this chapt
Page 52 and 53: the important difference that the b
Page 54 and 55: at no cost to the small business ex
Page 56 and 57: A commercial bank can perform many
Page 58 and 59: location and construction of manufa
Page 60 and 61: To prevent reverse engineering in C
Page 62 and 63: We are agnostic on the question of
Page 64 and 65: Distribution ConsiderationsHere are
Page 66 and 67: Often, the first company does not p
Page 68 and 69: your ability to terminate agreement
Page 70 and 71: Once your company has prequalified
Page 72 and 73: Choosing a ForeignRepresentative or
Page 74 and 75: Success StoryDon’t Wait—Innovat
Page 76 and 77: Chapter 6Finding QualifiedBuyersIn
Page 78 and 79: companies are available from many p
Page 80 and 81: Trade Fair Certification Program (e
Page 82 and 83: Millennium Development CorporationT
Page 84 and 85: Who Is the “Ideal”International
Page 86 and 87: Scores of new franchising concepts
Page 88 and 89: Success StoryCast a Wide Net to Cat
Page 90 and 91: Chapter 8Preparing YourProduct for
Page 92 and 93: You can also contact the Office of
Page 94 and 95: training seminars, or DVDs. Zeigler
Page 96 and 97: The ChallengeSmith first looked tow
Page 98 and 99: encompasses services in transportat
Page 100 and 101:
give U.S. companies a competitive e
Page 102 and 103:
Success StoryRecruiting New Franchi
Page 104 and 105:
Chapter 10International LegalConsid
Page 106 and 107:
For more information from the U.S.
Page 108 and 109:
When goods enter a bonded warehouse
Page 110 and 111:
under the UCC. Older works may also
Page 112 and 113:
Trade names are also protected on a
Page 114 and 115:
knowledge, in turn, promotes furthe
Page 116 and 117:
prevent him or her from obtaining a
Page 118 and 119:
Business-to-Consumer E-Commerce Wor
Page 120 and 121:
Because such a website is often sta
Page 122 and 123:
An online exporter may choose to pu
Page 124 and 125:
important to identify and incorpora
Page 126 and 127:
other business contacts) options re
Page 128 and 129:
Success StoryGrowing Strong withInt
Page 130 and 131:
Chapter 12Shipping YourProductIn th
Page 132 and 133:
One popular method of shipment is t
Page 134 and 135:
Certificate of ConformityRequired b
Page 136 and 137:
The cost of the shipment, delivery
Page 138 and 139:
To learn more about comprehensive r
Page 140 and 141:
China but needed to do a lot of hom
Page 142 and 143:
price is too high, the product or s
Page 144 and 145:
CompetitionIn the domestic market,
Page 146 and 147:
Commonly Used TermsIt is important
Page 148 and 149:
Success StoryAligning Innovationwit
Page 150 and 151:
Chapter 14Methods ofPaymentIn this
Page 152 and 153:
Letters of Credit and Documentary C
Page 154 and 155:
You must provide documentation show
Page 156 and 157:
associated with open-account trade
Page 158 and 159:
payment. This is because the export
Page 160 and 161:
ut they were willing to make the sm
Page 162 and 163:
• The need for preshipment financ
Page 164 and 165:
Thus it is in your best interest to
Page 166 and 167:
to support ongoing export sales or
Page 168 and 169:
To be eligible, a business must hav
Page 170 and 171:
Medium Enterprise Department and OP
Page 172 and 173:
Success StoryManufacturingInternati
Page 174 and 175:
Chapter 16Business TravelAbroadIn t
Page 176 and 177:
Planning an ItineraryTravel agents
Page 178 and 179:
Business Culture TipsAlways answer
Page 180 and 181:
Gift giving is an important part of
Page 182 and 183:
particularly intense issue. So the
Page 184 and 185:
Here are a few suggestions.• Expe
Page 186 and 187:
Building a Working RelationshipOnce
Page 188 and 189:
negotiations and agreements with it
Page 190 and 191:
Chapter 18Rules of Originfor FTAsIn
Page 192 and 193:
5. Determine if the foreign content
Page 194 and 195:
The original ROOs are listed in an
Page 196 and 197:
Example Rules of OriginCombining Mu
Page 198 and 199:
Israel, Jordan, Morocco, Bahrain, a
Page 200 and 201:
The importer may ask the exporter w
Page 202 and 203:
Generic CertificatesIf a good does
Page 204 and 205:
Architectural Association of Kenya
Page 206 and 207:
Appendix A: Glossary of TermsAdvanc
Page 208 and 209:
Export-Import Bank of the United St
Page 210 and 211:
Market SurveyReport that provides a
Page 212 and 213:
Appendix B: Definitions of Abbrevia
Page 214 and 215:
Appendix D: FormsHere, you will fin
Page 216 and 217:
228U.S. Commercial Service • A Ba
Page 218 and 219:
Tech International1000 J Street, N.
Page 220 and 221:
COMMERCIAL INVOICESELLER: INVOICE N
Page 222 and 223:
Copyright © 1998 UNZ & CO.SHIPPER/
Page 224 and 225:
DEPARTMENT OF HOMELAND SECURITYU.S.
Page 226 and 227:
PACKING LIST© Copyright 2001 Unz &
Page 228 and 229:
1a. U.S. PRINCIPAL PARTY IN INTERES
Page 230 and 231:
U.S. $13220of this FIRST of Exchang
Page 232 and 233:
IndexAA2ASee account-to-account (A2
Page 234 and 235:
Global Entrepreneurship Ecosystem (
Page 236 and 237:
Swinko, RonSee Jet IncorporatedSzuc
Page 238 and 239:
International OfficesAfghanistanKab
show all

basic-guide-to-exporting_Latest_eg_main_086196

Create successful ePaper yourself

Delete template?

Save as template?