The Importance of International Business and Export Counseling Assistance from the U.S. Commercial Service

The Importance of International Business and Export Counseling Assistance from the U.S. Commercial Service

Make Locally and

Sell Globally!

Marcus Verner

Oklahoma Export Assistance Center

U.S. Commercial Service

tel: 405-608-5302

fax: 405-608-4211

Oklahomacity.office.box@trade.gov

www.export.gov

Why Export?

  • 1. JOBS
  • businesses create 64 percent of the net new jobs in America of the past 15 years. It is important to help these firms increase their exports.
  • than 10 million U.S. jobs depend upon U.S. exports.

 

  • one of every five factory jobs—20% of all jobs in America’s manufacturing sector—depend on exports.
  • in jobs supported by exports receive wages 13 to 18 percent higher than the national average. High tech industry jobs supported by exports pay even more.

Why Export?

Why Export?

  • 2. Market Growth
  • 95% of the world’s consumer’s live outside of the U.S. borders.
  • domestically means they are reaching just a small share of potential customers.
  • 2010, U.S. exports reached a record $1.83 trillion, an increase of 16.6 percent over the previous year.
  • markets for U.S. exports in 2010 were Canada, Mexico, China, Japan, United Kingdom, Germany, South Korea, Brazil, The Netherlands, Singapore.

Why Export?

Why Export?

Why Export?

  • 3. The World is Your Market!!!
  • 2010, U.S. exports to countries where there was an FTA in effect exceeded $472 billion, accounting for roughly 41 percent of U.S. exports.
  • United States has Free Trade Agreements with 20 countries:

Australia, Bahrain, Canada, Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Mexico, Morocco, Nicaragua, Oman, Peru, Singapore,

  • Korea and Panama just passed Congress October 12, 2011.

Places to Start (Basic Resources)

Places to Start (Basic Resources)

  • Commercial Service
  • Department of Commerce
  • Federal and Local Resources
  • the above websites for additional info.
  • Basic Guide to Exporting

Oklahoma Export Assistance Center

Oklahoma Export Assistance Center

  • link to worldwide Commercial Service resources & experts
  • with
  • research
  • entry strategy
  • questions
  • export information
  • time is paid for so don’t hesitate to call!
  • I don’t know the answer—I’ll help find it!

Commercial Service Programs

  • information on all services & market research
  • Key Service
  • Partner Search (IPS)
  • Market Research
  • News USA (www.cnewsusa.com)
  • Shows
  • Missions

Commercial Service Programs

Overview of an Export Process

Overview of an Export Process

  • Determination/Research
  • you know this customer?
  • will affect the payment terms you offer
  • may affect whether or not you take the sale
  • TO KNOW YOUR CUSTOMER!
  • need to know:
  • they want
  • they want it
  • they want it delivered to
  • they can pay

International Marketing

International Marketing

  • Exporting
  • Management Companies (off-site export department)
  • Trading Companies (demand driven)
  • exporting
  • Exporting
  • Representatives/Agents
  • Sales
  • marketing

Legal & Economic Issues

Legal & Economic Issues

  • Risk – political, currency, banks
  • and Quotas
  • Licensing, Import Licenses for your customer
  • government trade sanctions, “Specially Designated Nationals”, etc. – www.ustreas.gov/ofac
  • Inspections
  • Goods
  • Settlement-Jurisdiction - contracts under Vienna Convention CISG (Contracts for the International Sale of Goods)

Method of Payment

Method of Payment

  • you know this customer?
  • new customer - probably payment in advance or Letter of Credit
  • this out in the Pro Forma Invoice
  • L/C – send instructions on how you want it opened

Don’t Forget…

Don’t Forget…

  • the Pro Forma- define period of validity
  • terms(Cash, Draft, L/C, Credit)
  • of Sale (Incoterms)
  • date of shipment (from receipt of order)
  • description of the goods (unit price)
  • of all elements added to the price
  • costs, insurance
  • unique reference number you can use to refer to this Pro Forma

Shipping Costs

Shipping Costs

  • with your freight forwarder
  • you call, know:
  • of shipment
  • frame
  • if you want insurance
  • 2010

Incoterms

  • responsibilities of buyer and seller
  • of common ones in Basic Guide
  • are your friend - experienced foreign buyers will understand them
  • avoid confusion
  • the book! Incoterms 2010

Incoterms

Export Documentation

Export Documentation

  • to Basic Guide
  • Invoice
  • Export Declaration
  • List
  • of Lading/Airway Bill
  • of Origin
  • Certificate
  • Certificate
  • Invoice
  • License

Types of Partners

Types of Partners

  • Representatives
  • Alliance
  • Retailers
  • Venture
  • Trading Company

Issues of Concern

Issues of Concern

  • of the territory - exclusive?
  • to provide service
  • period
  • lines
  • & trademark integrity and policing

Finding Partners

Finding Partners

  • Shows - both in the U.S. and overseas
  • exporters of complimentary products
  • - directories, your own web site may attract them, search engines
  • missions
  • Service programs
  • associations, journals

Motivating Partners

Motivating Partners

  • Visits (Understanding Culture)
  • (money talks)
  • sales promotion and packaging
  • materials
  • Visits
  • and Incentives
  • terms - improve as relationship lasts
  • foreign partners to domestic meetings
  • shows - work together

In Summary

In Summary

  • business is important
  • local resources!
  • potential markets & choose a manageable number of countries
  • your company in those markets
  • relationships/sells

Make Locally and

Sell Globally!

Questions……Thank you!!!

Questions……Thank you!!!

Marcus Verner

Oklahoma Export Assistance Center

U.S. Commercial Service

tel: 405-608-5302

fax: 405-608-4211

Oklahomacity.office.box@trade.gov

www.export.gov


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  Notice to Visitors!


  The link you have chosen will take you to a non-U.S. Government website.

  If the page does not appear in 5 seconds, please click this: outside web site

  BuyUSA.gov is managed by the International Trade Administration and external links are covered by its website disclaimer statement.