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Success StoryDon’t Wait—Innovate!Infinity AirRepairing and replacingaircraft parts is big business.The CompanyInfinity Air was founded in 1977 by JimmyWu, the child of immigrants from China. Thecompany, a manufacturer and distributor ofnew and refurbished aircraft parts for thecommercial aerospace industry, has sold $63million in products and services to customers in 60countries. The export of parts alone accounts formore than half of total worldwide sales.Five aircraft manufacturers, including Boeing,account for 80 percent of Infinity Air’s repairs andspare parts. Aircraft serviced are mainly Boeing’s737-600-900 series, 767 twin-aisle, 747-400, and777 aircraft. Today, the company employs 115people and operates out of a 160,000-square-footfacility in southern California, with two additionallocations in Seattle and Miami.The ChallengeBecause the business is global, Wu has plenty oflower-cost competitors, and he can’t compete on adollar-for-dollar basis with low-wage countries inAsia. His higher costs coupled with fluctuations inthe business cycle were constant worries.The SolutionWu says that Infinity Air competes on innovationand business process. “Because of these processes,”he says, “we perform the service in less timeand have a strong reputation for reliabilityand technical support—that’s the key to ourinternational success.”For example, Infinity uses technology to managecustomers’ procurement and repair. “We constantlytry to be imaginative in everything we do—tomake the best products, deliver the best service.”Wu said he also relies on free trade agreements togive him a competitive edge, though they are nota substitute for creativity and innovation. WhileKorea has always been a good market for InfinityAir, it’s getting even better now with the U.S.-Korea Free Trade Agreement.“It put a spring in the step of our business there.Korea is a huge market for us, and with the tradeagreement in place, the market just got a wholelot bigger. We’ve already seen a spike in sales, withnew orders coming from the Korean governmentfor maintenance on regional jets, helicopters,72U.S. Commercial Service • A Basic Guide to Exporting
and other aircraft—I wouldn’t be surprised tosee a 20 percent growth in our sales this yearalone, due to the agreement. Prior to the tradeagreement, servicing Korea’s aviation marketrequired payment of tariffs of up to 15 percent onparts—the customer would have to pay hundredsor thousands of additional dollars just to cover thetariffs. Now, the tariffs have either been removedor are in the process of being phased out, givingInfinity Air more leverage for competitive pricing.”But the FTA was not sufficient to grow thebusiness. Wu turned to the U.S. government,specifically the U.S. Commercial Service, to helpfind the customers. In 2010 Infinity Air was lookingto expand long-term partnership opportunitiesin Korea and sought counseling from the U.S.Commercial Service in Los Angeles and the U.S.Embassy in Korea. Wu attended a U.S. CommercialService Aerospace business matchmakingprogram at the 2010 Singapore Air Show; he wasintroduced to several airline representatives inmeetings prearranged by the U.S. CommercialService. As a result, he signed a representativeagreement with an airline and has greatlyexpanded Infinity Air’s presence in Korea.“There’s no question it would have been muchmore difficult and time-consuming for us if we’dtried to make this connection on our own. We alsogot essential firsthand insights into the legal andfinancial aspects of doing business in Korea. Withcontinued government help we’re now makingsales to aerospace operators in Turkey, Japan,Vietnam, Singapore, Indonesia, India, and Panama.Exporting has enabled us to buffer the ups anddowns of a tough economy, and made us a bettercompany by forcing us to face the reality of globalcompetition. Since 2008 we’ve doubled our exportsales, which shows what can be achieved with agood product and superior customer service.”Lessons LearnedPreviously fearful of the threat posed to hisbusiness by Chinese competitors, Wu feels he hasa more accurate view of what he’s up against. “TheChinese don’t have the imagination piece. Thismay be a cultural thing that’s very hard to change.We have that in this country. Some countries aregood at copying things. They are content takers,not makers. As a result, the takers are hiringAmericans to do the imagination part because weare content makers. Just look at Apple. No surprisethat most Asian car manufacturers design the carshere. Freedom is an integral part of this, and theChinese don’t have it and probably won’t for theforeseeable future.”Hard to say how long the foreseeable is, butWu plans to keep innovating and not wait tofind out. He believes that part of imagination issustainability and that it should be consideredin everything the company does. He sayssustainability generates imagination when you areforced to look at the whole process, the whole lifecycle, as Infinity does with everything it repairsand sells.“It’s not easy and takes time. We start by tellingpeople that they are unconscious and unskilled,and that at the end of the process they will beconscious and skilled. And finally they will beunconscious and skilled. In other words, lookingat things in new ways will become second nature;they won’t have to think about doing that.”It may sound “very southern California,” but Wuinsists it works. “We’re all doing it, includingme. We think it works. When we say you areunconscious and unskilled, don’t take it personally;it’s not a criticism. The goal is unconscious andskilled. The goal is for insights to become secondnature. It’s a long process.”Lastly, Wu has learned to be optimistic about thefuture of manufacturing in the United States. “Ithas been more than 30 years since my parentsovercame hardships in China to bring our familyto the United States. Looking back, I’m so happy tohave realized the dream of becoming an Americanand running an internationally successful business.In fact, I’m living the American Dream every day—and enjoying every second.”Success Story: Infinity Air73
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A BASIC GUIDE TOEXPORTINGThe Offici
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export.gov/basicguideLibrary of Con
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Table of ContentsChapter 1: Introdu
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global GDP and 30 percent of global
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A GEE might consist, for example, o
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Success StoryPedaling Through Trial
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Chapter 2Developing anExport Strate
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specified in the EAR under a specif
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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 50 and 51: Some of the more important services
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 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
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important to identify and incorpora
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other business contacts) options re
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Success StoryGrowing Strong withInt
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Chapter 12Shipping YourProductIn th
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One popular method of shipment is t
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Certificate of ConformityRequired b
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The cost of the shipment, delivery
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To learn more about comprehensive r
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China but needed to do a lot of hom
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price is too high, the product or s
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CompetitionIn the domestic market,
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Commonly Used TermsIt is important
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Success StoryAligning Innovationwit
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Chapter 14Methods ofPaymentIn this
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Letters of Credit and Documentary C
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You must provide documentation show
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associated with open-account trade
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payment. This is because the export
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ut they were willing to make the sm
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• The need for preshipment financ
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Thus it is in your best interest to
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to support ongoing export sales or
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To be eligible, a business must hav
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Medium Enterprise Department and OP
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Success StoryManufacturingInternati
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Chapter 16Business TravelAbroadIn t
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Planning an ItineraryTravel agents
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Business Culture TipsAlways answer
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Gift giving is an important part of
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particularly intense issue. So the
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Here are a few suggestions.• Expe
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Building a Working RelationshipOnce
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negotiations and agreements with it
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Chapter 18Rules of Originfor FTAsIn
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5. Determine if the foreign content
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The original ROOs are listed in an
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Example Rules of OriginCombining Mu
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Israel, Jordan, Morocco, Bahrain, a
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The importer may ask the exporter w
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Generic CertificatesIf a good does
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Architectural Association of Kenya
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Appendix A: Glossary of TermsAdvanc
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Export-Import Bank of the United St
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Market SurveyReport that provides a
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Appendix B: Definitions of Abbrevia
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Appendix D: FormsHere, you will fin
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228U.S. Commercial Service • A Ba
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Tech International1000 J Street, N.
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COMMERCIAL INVOICESELLER: INVOICE N
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Copyright © 1998 UNZ & CO.SHIPPER/
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DEPARTMENT OF HOMELAND SECURITYU.S.
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PACKING LIST© Copyright 2001 Unz &
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1a. U.S. PRINCIPAL PARTY IN INTERES
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U.S. $13220of this FIRST of Exchang
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IndexAA2ASee account-to-account (A2
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Global Entrepreneurship Ecosystem (
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Swinko, RonSee Jet IncorporatedSzuc
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International OfficesAfghanistanKab
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