First Steps Into

International Business

A Case Study

First Steps Into International

Business – A Case Study

Jon Kleinman – Procurement Manager

Michelle Westrich – Controller

Deborah Kurvach – Compliance Manager

Klein Steel Service Inc.

• Metal Service Center with 6 locations

throughout NY and customers throughout

the country --- and the world!

• More than metal – processing capability

significantly increased in past 10 years

• Award winning and nationally recognized

Klein Steel Service Inc.

Why would you want to do

business internationally?

- Lessen dependence on

regional economy

- Resources not available here

- Exposure to new markets

- Support existing customer

requirements

How did this happen? - Customer requirements made us

interested in trade compliance

NAFTA Certificate of Origin

Conflict Minerals

International Traffic And Arms Regulation (ITAR)

Then a customer asked….

“Can you import this for us?”

Customer Request

• Customer needed specific

product from foreign country

• Customer requested shipping

finished product to another

country

Considerations (Before You

Decide if You Want to Enter

International Business)

• Business processes in place

• Well established in your current

market

• Resources to support international

requirements

Planning

• Build the team

• Understand the opportunity

• SWOT

• What don’t you know

• Who knows it

• Identify 3rd parties who can help

Procurement Considerations

• Identify a Freight Forwarding partner

• Qualifying potential foreign suppliers

• Calculate total cost Cost of goods

Shipping & Delivery

Duties & Taxes

Insurance

Other fees

Procurement Considerations

• Lead time for incoming material

• Determine port of entry

• Are there terminal charges at the

port?

• Fees to be aware of – anti-dumping

duties, Harbor maintenance fee

• Can you unload containers safely?

Finance Considerations Insurance

Power of Attorney

Customs Bond

Payment terms

Payment

Wire transfers

Talk to your bank

Compliance & Documentation

• Denied Parties List -

http://export.gov/ecr/eg_main_023148.asp

• Memorandum For Record – records the logic

of why you did something a certain way

(Product info to support customs declaration,

Binding Rulings, etc.)

• HTS & Schedule B Numbers

• Order/Contract

• Airway bills/Bill of Lading

• Selecting the correct Incoterms

Compliance & Documentation

• Merchandise Value

• Marking requirements

• Packaging requirements

• Create a process to retain and index all

your documents!

February 2012 – original customer discussion

Mar – May 2012 – Research & qualify foreign supplier

June 2012 - Interview potential freight forwarding partners & selection

July 2012

• Customer places order with Klein Steel

• Customer contract drafted

August 2012

• Attorney review & approval of customer contract

• Plan order – incoterms- importer security form worksheet

• Place order from foreign supplier

September 2012

• Weekly communication with foreign supplier

October 2012

• Receive imported material

Timeline

- Everything went very smoothly

- Customer extremely satisfied

- Repeat business

- Request to transport to end user

(more business!)

- Opens the door for similar

opportunities with other customers

Results

• Select the right Freight Forwarding

partner

• Use resources at IBC, Commerce and

local businesses

• Document, document, document

• Create a checklist of steps & who is

responsible

Take Aways

Questions

Get your Upstate NY Trade Conference passport signed by at least 10 exhibitors for a chance to win the

following prizes, which will be raffled off and announced after the closing keynote

Exhibitors: 1 GRE/IBC/NYSERDA

2 Time Warner Cable Business Class

3 Advanced Language Translation

4 Freed Maxick CPAs, P.C.

5 Wells Fargo Bank, N.A.

6 KCI Engineering of New York, PC

7 JR Language Translation Services Inc.

8 RIT Saunders College of Business

9 Speed Global Services

10 RBS Citizens

11 FBI

12 US Small Business Administration

13 Mohawk Global Logistics

14 School of Business Administration and Economics,

The College at Brockport

15 Gallagher Benefit Services

16 U.S. Department of Commerce

17 U.S. Customs and Border Patrol

18 County of Monroe Industrial Development Agency (COMIDA)

Procurement Technical Assistance Center (PTAC)

19 Employer Support of the National Guard & Reserves (ESGR)

Exhibitor Passport Prizes:

• Advanced Language Translation, Inc.

$500 Gift Certificate towards translation services

• Hong Wah Restaurant – $10 Gift Certificate

• Mario's Via Abruzzi Restaurant – (2)

$50 Gift Certificates

• Mohawk Global Logistics

$100 Gift Card to Black & Blue Restaurant

• Richardson’s Canal House Restaurant – (2)

$25 Gift Certificates

• Speed Global Services

Dictionary of International Trade

& 50% off 2nd international shipment

• The Cheesecake Factory – $25 Gift Certificate

• The Spa at the Del Monte

50 minute Massage

• Wegmans – $100 Gift Card

• Wilmorite Inc. – $50 Mall Gift Card