You are on page 1of 28

International Trade 101

Presented by: FedEx Services and the U.S.


Commercial Service
Facilitator: Steve Miles
2
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 Collins , Sales Professional, FedEx Services
Domestic vs. International shipping
International Documentation
Resources
Q&A
04/27/11 International Trade 101
3
Additional Panelists
In addition to our speakers, we also have others present to answer
questions:
Arnethia Hopson FedEx Express, Regulatory Consulting Group
Amy J ohnson FedEx Services, U.S. International Marketing
Kosha Mehta FedEx Services, U.S. International Marketing
Stephen Smith FedEx Services, U.S. International Marketing
04/27/11 International Trade 101
5
Disclaimer
Every effort has been made to ensure the accuracy of this
presentation at the time of publication, 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.
04/27/11 International Trade 101
6
INTERNATIONAL TRADE 101
Jim Golsen, U.S. Commercial Service
04/27/11 International Trade 101
8
Export Opportunity
U.S. Exports of goods and services in 2010 reached $1.83 trillion,
the second highest annual total on record and the largest year-to-
year percent change in over 20 years. In 2010, exports contributed
to 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
04/27/11 International Trade 101
9
Export Opportunity
Partner 2005 2006 2007 2008 2009 2010
World 901,081,812,545 1,025,967,497,363 1,148,198,722,191 1,287,441,996,730 1,056,042,963,028 1,277,503,931,887
Canada 211,898,689,378 230,656,013,599 248,888,144,575 261,149,833,516 204,657,955,218 248,194,089,454
Mexico 120,247,580,142 133,721,712,754 135,918,138,711 151,220,056,463 128,892,137,645 163,320,752,355
China 41,192,010,123 53,673,008,343 62,936,891,576 69,732,837,543 69,496,678,611 91,878,263,856
J apan 54,680,579,847 58,458,978,071 61,159,582,766 65,141,753,124 51,134,184,201 60,545,481,743
United Kingdom 38,568,083,046 45,410,106,533 49,981,491,297 53,599,069,711 45,703,598,254 48,496,669,439
Germany 34,183,656,274 41,159,115,809 49,419,703,142 54,505,255,730 43,306,258,441 48,201,242,184
South Korea 27,571,605,977 32,219,124,163 34,401,709,969 34,668,671,020 28,611,928,167 38,843,771,795
Brazil 15,371,717,849 18,887,031,477 24,172,315,213 32,298,654,561 26,095,455,340 35,357,376,959
Netherlands 26,467,744,578 30,959,583,096 32,836,958,949 39,719,476,892 32,241,517,656 34,997,732,191
Singapore 20,466,073,458 23,825,546,496 25,618,565,860 27,853,610,178 22,231,821,976 29,149,783
04/27/11 International Trade 101
Source: http://tse.export.gov/TSE/TSEhome.aspx
The growth of U.S. exports over past 5 years
10
Leading Export Sectors - Canada
Automotive
Aerospace
Oil and Gas
Defense Products and Services
Safety and Security Equipment
04/27/11 International Trade 101
Source: http://export.gov/mrktresearch/index.asp
Renewable Energy
Information and
Communications Technology
Pollution Control Wastewater
Treatment
Mining
11
Leading Export Sectors - Mexico
04/27/11 International Trade 101
Agribusiness
Automotive Parts and Supplies
Education and Training
Services
Energy Sector
Environmental Sector
Franchising Sector
Housing and Construction
Internet and IT Services
IT Health Care
Packaging Equipment
Plastic Materials/Resins
Security and Safety
Telecommunications
Transportation Infrastructure
Travel and Tourism Services
12
Leading Export Sectors - China
04/27/11 International Trade 101
Aviation Market
Automotive Components Market
Healthcare Market
Travel and Tourism Sector
Agricultural
Education & Training
Marine Industries
Air Pollution
Green Building
Renewable Energy
Safety / Security
13
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%
J ordan 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%
04/27/11 International Trade 101
Improving intellectual property
right (IPR) protection
Enhancing labor rights
Government procurement
Opening service sectors to
competition
Enhancing rules on foreign
investment
Environmental standards
Improving customs facilitation
Free Trade Agreements (FTA) can
benefit companies
All figures are shown in US dollars (millions)
14
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 target
market at export.gov.
04/27/11
International Trade 101
U.S. Commercial Service provides solutions
15
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 Distribution
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.
04/27/11 International Trade 101
Selecting the right first market will help ensure you are
successful and have a good experience.
16
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 on
behalf 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 the
market 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.
04/27/11 International Trade 101
U.S. Commercial Service staff are located in 110 U.S. Cities and
based out of U.S. Embassies and Consulates in over 90 markets
worldwide.
18
INTERNATIONAL SHIPPING 101
Shawn Collins, FedEx Services
04/27/11 International Trade 101
20
Domestic vs. International Shipping:
Regulatory Requirements
Customs regulations
Different 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 international
shipping are the requirements that governments put in place to
ensure safety and duties & tax payment. This requires additional
documentation to identify the type of product being shipped and its
value.
International Trade 101 04/27/11
21 International Trade 101
International Shipments Require Extra Documentation
International requires additional
details
Importer of record if different than
consignee. Ship To and Sold To
person
Full commodity description with value
of the goods
Harmonized Tariff Code
Payer for Duties & Taxes, when
assessed
Most commonly used/required
documentation 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 on
the shipment documentation for an international shipment
04/27/11
22 International Trade 101
Document Samples
Top primary documents required:
International Air Waybill
Commercial Invoice
04/27/11
23
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 the
required fields on each.
04/27/11 International Trade 101
24
International Air Waybill
Essential Data Elements
1. Appropriate account
numbers
2. Name of seller/shipper
3. Name of buyer/consignee
4. Adequate descriptions of
shipment, contents &
origins
5. Accurate values
04/27/11 International Trade 101
1
2
3
4, 5
25
International Air Waybill (Continued)
04/27/11 International Trade 101
Essential Data Elements
1. Appropriate account numbers
2. Name of seller/shipper
3. Name of buyer/consignee
4. Adequate descriptions of
contents & origins
5. Accurate values
4
4
5
26
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 sold
by the seller) if different 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 of
manufacture, and serial numbers (if applicable).
6. Signature and date
04/27/11 International Trade 101
27
Commercial Invoice Example
Required Data:
1. The shippers information
2. The recipients information
3. The buyers information, if different
from the recipient
4. Tracking number / air waybill number
5. Complete descriptions of contents &
origins
6. Signature and Date
04/27/11 International Trade 101
3
2
1
4
5
6
28 International Trade 101
EEI: Commodities Valued over $2,500
The U.S. Census Bureau documents and records export shipments
with single commodities valued over $2,500 that leave the U.S.
Shippers must file 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 the
requirement
Self-file via U.S. Census site, registration required. www.aesdirect.gov
Connect to AESDirect using a FedEx Ship Manager

electronic shipping solution


with AESWebLink - FedEx Ship Manager will notify you that EEI is required based
on information you enter.
Use FedEx Export AgentFile

, you can authorize FedEx either electronically or


via fax to file an EEI on your behalf.
04/27/11
29
Avoid Vague Commodity Descriptions
Invalid Descriptions Valid Descriptions
Samples Wood screws (samples)
Parts Guide, part for printing press
Promotional items
Golf 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 of
classification.
International Trade 101 04/27/11
30
Submitting Documents Electronically
Some carriers, including FedEx, offer a service that allows customs
documentation to be submitted electronically. This can have many
benefits:
Operational Efficiency
Completed documents can be saved online to be reused, eliminating completing all fields for
each shipment.
Electronic documentation can be submitted to customs ahead of time, allowing the
clearance 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 every
shipment.
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
04/27/11 International Trade 101
31 International Trade 101
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 with 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 International Shipping Information
fedex.com/us/international/
04/27/11
32 International Trade 101
External Resources
U.S. Commercial Service website
www.Export.gov Free
U.S. Census Harmonized Code Lookup
http://uscensus.prod.3ceonline.com/#/p=0
A Basic Guide to Exporting 10
th
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