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Indirect Exporting with Trade Intermediaries (EMCs and ETCs)

December 14, 2016
by bronwenelizabeth
Global Business Management
0 Comment

Trade Intermediaries: Role, Services and Tips

A trade intermediary works as an agent between the manufacturer of a good and the end user of the product or service. As an intermediary, your job is to make the export process as easy and seamless as possible for the products/services you represent.

As the export department or authorized export representative, you seek exclusive rights to represent a company/product line in specified markets for X years, with an option to renew. You will seek to develop markets, screen and qualify potential buyers and distributors, and present the manufacturer/wholesaler with confirmed purchase orders backed by guaranteed payments. You handle all documentation, payment and delivery arrangements. In return, you expect to receive a commission on the value of the export sale.

Typically the percent ranges from 5% on low-margin commodities up to 15% on more elastic goods. As needs arise, you may also offer to purchase the products for export. In that event, you will arrange to pay directly, take title to the goods and sell them to the overseas customer. If you take title of the goods, you may charge more of a commission to cover the finance risk and invoicing.

So how do you do all this? To help you in this trade intermediary role, the CITD can provide all the building blocks to help you expand your overseas markets and sales. Here’s a sampling of what we do for you:

  • Assess your/your client’s export readiness and market potential
  • Identify best markets for the products you represent
  • Assess the product’s competitiveness in each market
  • Develop effective market entry strategies
  • Find overseas buyers and distributors
  • Promote the products in target markets
  • Respond to overseas inquires
  • Issue price quotes [for the products you represent]
  • Present purchase orders to you with delivery terms
  • Arrange secure financing and payment terms
  • Complete all export documents
  • Arrange delivery of the products

 
The following are some tips for start-up trade intermediaries (a.k.a. export management companies, or EMCs). There is much more to this subject than can be discussed in one message, but this will give you some initial food for thought.

The question, “Which comes first, the chicken or the egg” presents a similar dilemma for the new EMC—should you seek buyers first (search for trade leads, etc.) then try to find matching suppliers? OR, should you try to find suppliers to represent, then try to find matching buyers? No matter where you start, you must convince your “client” – the buyer or the seller – that you have the expertise to effectively do the job. Establishing credibility for a newcomer is not easy.

A second problem is, how to avoid direct contact between the supplier and buyer you brought together (bypassing you).

A third problem is a buyer’s perception that dealing through middlemen raises the cost of the product (commission add-on). This is often a false perception, because your modest commission is probably much lower than the cost if the supplier had to maintain an in-house export function.

Establish credibility: You need some kind of literature about you and your company to answer the question: “who are you?” and “what can you do for me?” This could be a flyer, brochure and/or a webpage.

Product Focus: It is best to focus on products you know most about, rather than any or all products that come across your radar screen. At some point, your prospective supplier or buyer will ask how this product stacks up against the competition (why should I buy yours instead of X; or how well can you explain why a customer should buy product instead of brand X). You should ideally be able to converse persuasively about any product you handle.

Market Focus: Although you may receive unsolicited inquiries from time to time, you’re better to determine and systematically pursue the most promising markets for the product. This requires investigation – talking to others in the industry, market research, contact lists of buyers/distributors, etc.

Protecting against direct buyer/seller contact: This is a contractual issue. If you undertake any contacts in behalf of any buyer/seller client, you obviously do not want to disclose names of your “interested” contacts until you have a written agreement with your client that protects your interests in a specified time frame. If the agreement is properly worded, even if one or the other party attempts to bypass you at some point within the time frame, you are legally entitled to the commission they attempted to avoid. An attorney can help you
draw up agreements that cover single or multiple transactions with any named parties or broadly, with exclusive or non-exclusive rights in specified territories.

Avoiding “middleman” stigma: Once you have contractual “rights” to represent a supplier, you should attempt to present yourself as much as possible as if you were the supplier’s export manager or department in communication with overseas buyers or distributors, with you as their contact.

The Export Development Process

December 27, 2015
by bronwenelizabeth
0 Comment

To simplify the export development process, we break down the steps into four stages—global business management, global marketing, trade finance and supply chain management. These stages coincide with the four domains of the Certified Global Business Professional (CGBP) accreditation. The four stages also include the four CGBP domain threads (topics across all four domains)—documentation, legal and regulatory compliance, intercultural awareness and technology resources.

The-International-Trade-Process-The-Four-CGBP-Domains

  • Global Business Management

    Build Export Capacity

    1. Maximize Operational Efficiency
      • Production Processes
      • Business Practices
    2. Develop Export Readiness
      • Take Quick Assessment
      • Consult with a Trade Specialist
    3. Identify Trade Assistance Resources
      • Federal Government Assistance
      • State Government Assistance
      • Local Government Assistance
      • Non-profit/Educational Assistance
    4. Understand Cultural Protocol and Etiquette 
      • Cultural Constructs
      • Cultural Theory
    5. Know your Free Trade Agreement Partners
      • U.S. Trade Agreements
      • Regional Trade Agreements
    6. Develop Export Management and Trade Compliance Know-How
      • Business Counseling and Training
      • Export/Import Planning
      • Product Standards and Marks
      • Intercultural Awareness
      • U.S. Export Controls
  • Global Marketing

    Develop International Markets

    1. Product Classification
      • Schedule B Code
      • HTS Code
    2. Industry Research
      • Largest Importers by Volume
      • Fastest Growth and Industry Trends
    3. Conduct Market Research 
      • Select Target Markets
      • Assess Market Environments (Standards, Regulations)
    4. Market Planning
      • Export Market Plan Development
      • Legal Regulations
    5. Develop Your Market Entry Strategy
      • Distribution Channels, Pricing and Promotion
      • Product/Service Localization
    6. International Marketing
      • Partner-Find Services
      • Event Venues (Trade Shows and Trade Missions)
    7. Partner Matchmaking
      • Partner Selection Checklist
      • Due Diligence (Background Checks & Credit Reports)
  • Trade Finance

    Make Sales & Get Paid

    1. Issuing Export Price Quotations with Incoterms
    2. Negotiate Sales Terms
    3. Credit Analysis
    4. Risk Assessment & Mitigation
    5. Understanding Payment Methods
    6. Knowing Trade Finance & Credit Insurance Resources
      • Pre-export Financing
      • Post-export Financing
      • Export Credit Insurance

     

  • Supply Chain Management


    Transporting the Goods

    1. Incoterms
    2. Packing & Labeling
    3. Shipping Documents & Export Licensing 
    4. Insurance
    5. Modes of Transportation
    6. Customs Clearance 

Top 50 Search Phrases from Export.gov

December 27, 2015
by bronwenelizabeth
0 Comment

As a recap of 2011, Export.gov is highlighting the top 50 search phrases of the year.

  1. Safe Harbor
    Safe Harbor is a certification program for EU and Switzerland regarding data privacy
    http://1.usa.gov/rXq9Ar
  2. ECCN
    If your product fits an Export Control Classification Number (ECCN), then it may need a license
    http://1.usa.gov/s22Moj
  3. Incoterms
    International Commercial Terms are a series of sales terms commonly used in international transactions
    http://1.usa.gov/v0ELsg
  4. Certificate of Origin
    Not all countries require a Certification of Origin (CO). Also, some COs are prepared by the exporter and some are prepared by the importer
    http://1.usa.gov/uSeHat
  5. Export Documentation
    A listing of common export documents is available on Export.gov
    http://1.usa.gov/qosJ0D
  6. Market Research:
    Search our database for market research or look for agricultural market research, which is listed separately
    http://1.usa.gov/uDn7vi
  7. Schedule B
    HS Classification Numbers and Schedule B Numbers are different. Learn more
    http://1.usa.gov/vUVaPf
  8. NAFTA
    North America Free Trade Agreement - As of 1/1/08 all tariffs and quotas were eliminated on exports to Mexico and Canada under NATFA.
    http://1.usa.gov/snN8dy
  9. National Export Initiative (NEI)
    Presidential initiative to doubling exports by the end of 2014, supporting millions of jobs
    http://export.gov/nei/
  10. E-Commerce
    Selling goods and services internationally thru online transactions. Are you E-Commerce ready?
    http://1.usa.gov/tkGjxR
  11. Country Commercial Guides (CCG)
    CCGs give you basic country info, such as which are the best markets and other cultural insights
    http://bit.ly/rDTRWj
  12. International Logistics
    International logistics includes packing, labeling, documentation, insurance, shipping, etc.
    http://1.usa.gov/uL1Z9O
  13. Free Trade Agreements (FTA)
    FTAs are agreements between two or more countries to reduce trade barriers & enhance the rule of law
    http://export.gov/fta/
  14. Freight Forwarders
    Freight forwarders are agents for the exporter who can move cargo from “dock-to-door.” They also can provide other, additional services
    http://1.usa.gov/qDm3cT
  15. HS Tariff Classification Number
    HS Classification Numbers and Schedule B Numbers are different. Learn more about the differences
    http://1.usa.gov/vUVaPf
  16. Export License
    Most export transactions don't require a license. Learn more about when licenses are needed
    http://1.usa.gov/rFwZsU
  17. AES Filing
    Export info must be filed electronically thru the Automated Export System (AES) or you may be subject to penalties
    http://1.usa.gov/pmq8fO
  18. Exporting to China
    China has many great opportunities to help you expand your business thru exporting
    http://1.usa.gov/tulkjh
  19. USEAC
    ITA has 100+ US Export Assistance Centers (USEACs) to help you. A listing of the domestic offices is available
    http://1.usa.gov/vB9ZBD
  20. Trade Information Center (TIC)
    The TIC is staffed with trade specialists who can answer your exporting questions
    http://1.usa.gov/vUlD8m
  21. CE Mark
    CE Mark certifies that a product has met EU health, safety, and environmental requirements
    http://1.usa.gov/uTBiAz
  22. Declaration of Conformity
    Manufacturer use this form to declare their product is in conformity with the European Union essential requirements
    http://1.usa.gov/un71zO
  23. Preference Criterion
    Learn about the six preference criterion for qualifying for a NAFTA tariff rate
    http://1.usa.gov/ssesE7
  24. CAFTA-DR
    CAFTA-DR is the Dominican Republic-Central America-United States Free Trade Agreement
    http://1.usa.gov/sdyGZY
  25. US Export Data
    Trade data helps companies identify the best countries to target their exporting efforts
    http://1.usa.gov/w2TpzC
  26. International Sales
    We have a variety of services to help you sell your products abroad. Come see our list http://1.usa.gov/tCXEMH
  27. Export Regulations
    Some countries have standards that you should be aware of and that you need to comply with in order to sell your products there
    http://1.usa.gov/vFmhtK
  28. Trade Leads
    Search our trade leads by country, industry, or region. Export.gov registration is required to access trade leads
    http://1.usa.gov/thyrTT
  29. Shippers Export Declaration (SED)
    SEDs should no longer be filed. All export information must be filed electronically with AESDirect or you may be subject to penalties
    http://1.usa.gov/pmq8fO
  30. How to Export
    Do you know if you are export ready? Start here and take our self-assessment
    http://1.usa.gov/p7ZsuW
  31. International Finance
    Finance programs are available to help you with working capital, financing international buyers, etc.
    http://1.usa.gov/o30WBv
  32. Export Control Reform
    Presidential initiative that counters threats & proliferation of weapons of mass destruction thru controlling certain exports
    http://export.gov/ecr/
  33. Terms of Trade
    New to exporting and need help with some trade terms? Here is a listing of the common ones
    http://1.usa.gov/vryEvE
  34. Qatar
    The trade specialists in our Qatar office can be your eyes and ears in the Qatar marketplace
    http://export.gov/qatar/
  35. Tariff Rates By Country
    Different countries have different tariff rates. View the tariffs for a specific country
    http://1.usa.gov/tE5EkD
  36. Export Statistics
    Export stats can help companies identify the best countries for their exporting efforts
    http://1.usa.gov/w2TpzC
  37. Methods of Payment
    We describe four different payment options that you can use when exporting
    http://1.usa.gov/smEsEq
  38. Fumigation Certificate
    A fumigation certification provides evidence of the fumigation of exported goods. This is one of our common export docs
    http://1.usa.gov/rLRmzj
  39. India
    India has many opportunities for US exporters
    http://1.usa.gov/ufeaI9
  40. China Compulsory Certification (CCC Mark)
    The CCC Mark is a safety license for manufacturers exporting to or selling in China
    http://1.usa.gov/uCNfRX
  41. CE Mark Countries
    CE Mark applies to 32 countries. See which countries are on the list
    http://1.usa.gov/uPWCgc
  42. Gold Key Service
    Need custom market and industry briefings or appointments with prospective trade partners? Then the Gold Key service is for you!
    http://1.usa.gov/rNKrUp
  43. Basic Guide to Exporting
    Are you exporting yet? The Basic Guide to Exporting includes everything you need to know to get started
    http://1.usa.gov/tHHgQ2
  44. Trade Promotion Coordinating Committee (TPCC)
    The TPCC includes the 20 federal trade agencies with 7 core agencies
    http://1.usa.gov/uzh0nT
  45. Advocacy Center
    The Advocacy Center ensures that sales of US products and services have the best chance competing abroad
    http://export.gov/advocacy/
  46. ATA Carnet
    The ATA Carnet is an international customs document that allows the temporary entry of goods duty-free and tax-free. It is accepted by 75 countries
    http://1.usa.gov/rH7Kjh
  47. Export Business Plan
    Having an export plan is a good step and it is required if you need financial assistance
    http://1.usa.gov/qukgiP
  48. US Commercial Service (CS)
    CS has trade specialists in over 100 US cities and over 75 countries to help you export
    http://1.usa.gov/sBHHMB
  49. International Buyer Program (IBP)
    IBP brings foreign buyers to US trade shows giving exhibitors more export sales opportunities
    http://export.gov/ibp/
  50. International Company Profile
    Need a credit check on a potential international partner? Then this is for you!
    http://1.usa.gov/vTySV8

U.S. Federal Government Compliance Contact Information

December 27, 2015
by bronwenelizabeth
0 Comment

Trade Information Center: 1-800-USA-TRAD(E)

AESDirect Technical Support

Every day, 7 a.m.–7 p.m. ET
Voice: 877-715-4433
Fax: 301-562-7795
E-mail: boc-support@tradegate2000.com

Foreign Trade Division Call Center

800-549-0595 (see menu options below)
The e-mail addresses below are not secure. Confidential company information should not be sent to  these addresses.

Automated Export System Branch, Menu Option 1
Monday through Friday 7:30 a.m.–6 p.m. ET
Fax: 301-763-6638
E-mail: askaes@census.gov

Commodity Analysis Branch (Schedule B Export Classification), Menu Option 2
Monday through Friday
8:30 a.m.–5 p.m. ET
Fax: 301-763-4962
Schedule B questions: ftd.scheduleb@census.gov

Regulations, Outreach, and Education Branch, Menu Option 3
Monday through Friday
8 a.m.–6:30 p.m. ET
Fax: 301-763-4610
E-mail: ftdregs@census.gov

Data Dissemination Branch, (Press Release/Data Products) Menu Option 4
Monday through Friday
8:30 a.m.–5 p.m. ET
Fax: 301-763-4962
E-mail: ftd.data.dissemination@census.gov

Foreign Trade Division (all branches)
Secure fax: 301-763-8835
This fax number is for confidential company information (i.e., data requests). Please include a cover sheet with the name and/or phone number of the branch or person to whom the fax should be delivered.

U.S. Customs and Border Protection (CBP)

Trade Enforcement and Facilitation
For questions regarding CBP, ITAR, and Used Vehicles, contact: Robert Rawls, Program Manager, 202-344-2847
E-mail: robert.rawls@dhs.gov or manifest.branch@dhs.gov

Bureau of Industry and Security (BIS)

Help Desk, Washington, DC 202-482-4811
Western Regional Office, Los Angeles/Newport Beach, CA 949-660-0144
Western Regional Office, San Jose, CA 408-351-3378

Directorate of Defense Trade Controls

U.S. State Department, Washington, DC Response Team 202-663-1282
D-Trade Questions 202-663-2838

Export Compliance Flipper

Contact: Crystal Mackall
Phone: 301-763-6983
E-mail: askregs@census.gov
To order: http://www.census.gov/foreign-trade/www/products/roebproducts.html

Websites

  • U.S. Census Bureau, Foreign Trade
    www.census.gov/trade
  • U.S. Customs and Border Protection
    www.cbp.gov
  • Bureau of Industry and Security
    www.bis.doc.gov
  • U.S. Small Business Administration
    www.sba.gov
  • U.S. State Department, Directorate of Defense Trade Controls
    www.pmddtc.state.gov
  • U.S. Treasury Department, Office of Foreign Assets Control
    www.treas.gov/offices/enforcement/ofac

UN Comtrade Screenshot 7

December 27, 2015
by bronwenelizabeth
0 Comment

Copy the tables contents into two Excel sheets:

  1. Separate imports and exports (exports are shown first; about halfway down the table it changes to imports).
  2. Include the column’s titles on the first page.

 

Sort the table by the Trade Value in descending order and delete all countries except for the top 30.

UN-Comtrade-Screenshot-7

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