Building a Global Presence - Inc.com

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Building a Global Presence - Inc.com

The Office of the United States Trade Representative’s countryspecifictrade information database is a good jumping-off pointfor researching foreign markets. There’s also a U.S. CommercialService Market Research Library database that you can search bya combination of variables, including country, region, and industry,to access market research reports and country commercial guides.This Introduction to Trade Data and Analysis can help you makesense of market information and statistics.Trusted local contacts can beinvaluable in helping you toassess market opportunitiesand work through languagebarriers. Spending timeface-to-face with foreigncolleagues also can help youto become acclimated tocultural differences and learnto manage them productively.But at some point, you may want to attend international tradefairs or other events where you’ll have the opportunity to meetand establish a rapport with prospective trading partners. Trustedlocal contacts can be invaluable in helping you to assess marketopportunities and work through language barriers. Spendingtime face-to-face with foreign colleagues also can help you to become acclimated to culturaldifferences and learn to manage them productively. Export.gov offers a database that features aschedule of upcoming trade fairs, or you can check with your professional associations for newsabout industry-specific trade events.3Learning the RopesOnce you’ve cleared the market evaluation hurdles, you’reready to start mastering foreign trade processes andprocedures. U.S. Customs and Border Protection’s Tips forNew Importers and Exporters and the International TradeAdministration’s import and export FAQ can get you startedon the process and paperwork side.You’ll also need to educate yourself about the costs associatedwith foreign commerce and ensure that you have the workingcapital necessary to enter the global market successfully.Your financial plan for market entry must take into account license fees; logistical and shippingexpenses; costs related to Customs documentation in both the U.S. and your trading partner’scountry; and duties, tariffs, and taxes.Building a Global Presence | UPS © 2013 3


4Financing Your VentureThe Export-Import Bank of the United States committed, through its Global Access forSmall Business program, to double its annual small business volume between 2010 and2014. Toward that goal, it approved $17.1 billion in small business loan guarantees,export credit insurance, and direct loans through fiscal year 2012 and plans to increasethat amount to a total of $30 billion by fiscal year 2014.Access the site for information about the Bank’s working capital, insurance, loan guarantee,finance lease guarantee, and direct loan products as well as other services that you can use inconjunction with the services and financing options available from your business banker.One financial instrument that’s central to foreign trade transactionsis the letter of credit. It protects the interests of exporters andimporters by putting the terms of their agreements in writing andensuring completion of their financial transactions once thoseterms are met. For exporters, that means assurance of paymentfor the goods they’ve shipped and delivered. For importers, itmeans assurance that the goods for which they’ve paid meet thespecifications of their orders. Speak with your business banker aboutthe process of getting approved for letter of credit financing oradding letter of credit capability to your existing line of credit.Once you’ve identified foreign markets and negotiated sales withtrading partners, UPS Capital® has financing options that may be ableto assist your company with the working capital it needs to completethose import or export transactions. That’s a financing relationship thatyour own bank may not be willing to take on.One financial instrumentthat’s central to foreigntrade transactions is theletter of credit. It protectsthe interests of exportersand importers by putting theterms of their agreementsin writing and ensuringcompletion of their financialtransactions once thoseterms are met.Finally, it’s important to stay abreast of global news so you remain aware of political andeconomic conditions that may have an impact on your export or import activity. Bear in mindnot only questions of political stability and security, but also economic shifts that can sparkexchange rate volatility. When trading with companies in countries whose currency is unstable,it’s usually best to denominate the price of goods in dollars so you aren’t paid less than youexpected for exports or charged more than expected for imports.Your business banker andfinancial advisers can help guide you through these decisions, and you can refer to trading firmOANDA’s currency converter to track interbank (not retail) exchange rates.Building a Global Presence | UPS © 2013 4


• Invoices (covers commercial and other invoices andprovides cautionary information about frequent errorsin invoicing).• Assessment of Duty (offers information about thedutiable status of goods, temporary free importations,antidumping and countervailing duties, drawback andrefunds of duties, and details of a variety of free tradeand trade preference agreements).• Classification and Value (explains transaction value,currency conversion, and rules of origin).7Customs ResourcesThe following resources offer further information that your company can use to familiarizeitself with Customs procedures and documentation requirements.U.S. Customs and Border Protection is a division of the Department of Homeland Security. Its rolein international trade is to ensure that imported goods are legal and pose no threat to nationalsecurity. The agency’s website offers a variety of resources to assist businesses in their foreigncommerce activities.Many Customs forms are available in digital format for completion online. (You’ll need AdobeReader to access the forms.) You’ll find links to the forms at the U.S. Customs and BorderProtection (CBP) site.CBP offers an introduction to the Automated Export System, “the central point through whichexport shipment data required by multiple agencies is filed electronically to Customs.” As theCustoms site explains, “AES provides an alternative to filing paper Electronic Export Information.Export information is collected electronically and edited immediately, and errors are detectedand corrected at the time of filing.” The system is intended to benefit exporters by reducing theirpaperwork completion and processing costs.If you prefer, you may use this CBP form to order hard copies of any Customs forms yourbusiness needs.Building a Global Presence | UPS © 2013 6


Leverage Logistics for Your BusinessIf you’re selling in multiple global markets, having help in navigating logistics across borderscan be invaluable. Rekluse founder and CEO Al Youngwerth utilizes UPS services to removecomplexity when exporting his motorcycle parts to 41 countries through 20 distributors and 10international dealers. For example:• UPS Paperless Invoice SM , an industry first, eliminates the need for paper commercialinvoices by integrating order and shipment processing, and transmitting commercialinvoice data to enable clearance by customs offices across the globe. You can easilymanage your paperless shipping lane preferences on a per-shipment basis, or byshipping lane, to gain even more flexibility. Simply enter shipment commodity detailsinto your UPS shipping system and the information becomes available electronicallyand is used to clear your shipment through customs. With this electronic transmission,shipment processing for package or air freight can begin earlier, enabling timelycustoms clearance.• WorldShip ® uses your company’s existing customer data to generate shippinglabels, other forms, and send email notifications using Quantum View Notify. Itcaptures billing information, making accounting more efficient. You can access thecomplete range of UPS services within the WorldShip shipping software: air, ground,international, LTL freight, and air freight.Learn more about the ways in which UPS logistics can level the playing field for your company,helping you compete and win against other businesses. Our logistics solutions and services canaid your business in working smarter and more efficiently, whether locally or globally. For moreinformation about the ways in you can put logistics to work for your business, download thefree guide, 16 Ways to Benefit from Logistics.Building a Global Presence | UPS © 2013 10

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