Int Net Export 1 Mod GIO Notes View

8/7/2019 Int Net Export 1 Mod GIO Notes View

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The Internet is a goldmine of information for exporters, importers and trade

assistance organizations. Literally millions of Web sites offer valuable information

for classroom and commercial uses. The downside to this is that the totality of

options is now so vast that its not easy to find the nuggets we need.

A few Internet portals have sought to aggregate and organize this abundance of

riches in more user-friendly, one-stop environments. Some portals are fee-based,

some are free. This presentation focuses on the extensive international trade portal

developed by the El Camino College Center for International Trade Development

(CITD). The ECC/CITD site is widely regarded as one of the best of its kind

anywhere in the world, and its all FREE.

This presentation applies specific Web resources to typical export assistance

scenarios, including client export readiness assessment, basic export training, and

helping clients pinpoint best markets, develop export market plans, find overseas

buyers and distributors, advertise and promote, comply with documentary and legalrequirements, ship the goods, and get paid.

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The CITDs International Trade Database is a rich Internet resource for exporters. In one convenient

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Exporters and Trade Assistance Organizations: Assess export readiness of companies and help

them pinpoint best markets, develop market entry strategies, find overseas buyers and distributors,

advertise and promote abroad, comply with legal requirements, prepare export documentation, ship

the goods, and get paid.

Specific resources include:Export Readiness Tools: Tools to assess company export readiness and market potentials and

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Training & Education: How-to guides on basic export requirements, functions and

procedures; quick lookups to commodity classifications, trade terms and acronyms, and world

time zones and other handy conversions; and (coming soon) available courses and training

programs on all aspects of international business and trade.

Market Intelligence: Trade statistics and market research to track international trade flows,

pinpoint promising markets, and develop effective market entry strategies.

Matchmaking Services: Directories and trade lead systems to search for worldwide trade

contacts, post specific buy/sell offers, and advertise and promote abroad.

Documents & Regulations: Documentary and regulatory requirements to facilitate complianceand avoid legal pitfalls.

Logistics: Tools to optimize and manage logistics functions, track and book cargo.

Finance & Insurance: Guidance, programs and sources for trade finance and insurance.

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region and company developments.

Trade Assistance Sources: Sources of international trade assistance, information and support

services.


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EXPORT READINESS TOOLS

The Internet offers a wealth of tools to assess and develop company export readiness.

Export Readiness Assessment System, an interactive, diagnostic tool to assess a

company's export readiness. The ERAS customized assessment is based directly on thecompany's answers to 23 questions about its present operations, attitudes and products.

ERAS rovides immediate feedback in the form of an ex ort readiness score; a

detailed, point-by-point assessment of the company's export strengths and weaknesses;

and how-to tips to overcome weaknesses and increase export readiness.

Export Guides and FAQ's covering all aspects of exporting, from the costs, benefits

and risks to the how-to's of getting started, market analysis and planning, distribution,

pricing, promotion, documentary and regulatory compliance, financing and logistics.

On line guides include Export FAQ's, Exporting Basics; A Basic Guide to Exporting;

Breaking into the Trade Game; and Become an Export Agent.

Trade Reference Tools, quick, handy look-ups of Schedule B, HS, SITC and

SIC/NAICS numbers; definitions of international trade terms and acronyms; and

international conversions for units of measurement, time, currency, electrical current,

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The Internet offers powerful tools to pinpoint promising markets. The "best" markets offer a combination of

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affinity) are easier to relate to, but are rarely the most promising (large, emerging, fast-growing, receptive,

open, limited competition, etc.). To find best markets for a specific product, try these techniques and Internet

sources:

Where is the product mostly exported? U.S. export statistics show the largest, fastest growing exportmarkets for specific U.S. products.

Which countries mostly import this product? Foreign import statistics show the largest, fastest growing

importers of U.S. and third-country products.

In which markets would this product be most competitive? Foreign import statistics by product show

import market shares of leading competitor countries . Also, Industry Sub-sector Analyses (ISAs) and Agworld

Attach Re orts rovide com etitive market assessments and identif the ke domestic and third-countr

competitors.

Which markets are most open to this product? ISAs and Agworld Attach Reports assess market entry

conditions and requirements, including the effect of applicable tariffs and non-tariff barriers.

Which markets do the experts consider most promising? Best Market Reports (BMRs) list "Best-Prospect"

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world markets for specific industries. ISAs are only written if the specified sector offers high potential in the

specified country. ISAs further itemize "best sales prospects" within the industry sector.


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The Internet offers powerful tools to pinpoint promising markets. The "best" markets offer a combination of

-.

affinity) are easier to relate to, but are rarely the most promising (large, emerging, fast-growing, receptive,

open, limited competition, etc.). To find best markets for a specific product, try these techniques and Internet

sources:

Where is the product mostly exported? U.S. export statistics show the largest, fastest growing exportmarkets for specific U.S. products.

Which countries mostly import this product? Foreign import statistics show the largest, fastest growing

importers of U.S. and third-country products.

In which markets would this product be most competitive? Foreign import statistics by product show

import market shares of leading competitor countries . Also, Industry Sub-sector Analyses (ISAs) and Agworld

Attach Re orts rovide com etitive market assessments and identif the ke domestic and third-countr

competitors.

Which markets are most open to this product? ISAs and Agworld Attach Reports assess market entry

conditions and requirements, including the effect of applicable tariffs and non-tariff barriers.

Which markets do the experts consider most promising? Best Market Reports (BMRs) list "Best-Prospect"

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world markets for specific industries. ISAs are only written if the specified sector offers high potential in the

specified country. ISAs further itemize "best sales prospects" within the industry sector.


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Exporters cannot survive on unsolicited business. They must aggressively seek and pursue potential buyers and

distributors. Most exporting is done through overseas agents or distributors. As market "insiders," they speak

the language, understand how business is done, and know who the customers are and how to reach them.

Choosing the right rep is crucial. A good rep will develop ongoing, long-term business for the exporter. A bad

rep could squander growth potential and, worse, be difficult to terminate under local law. Once prospects are

identified, diligent screening is needed to select the best prospects. Look especially for these attributes:

Experienced -- has a solid track record and strong connections in the industry. Capable -- can market and support the product as needed. o va e -- s en use a ou e pro uc an w ng o g ve pr or y. Loyal -- would not jump a competitor or carry a competing line. Honest -- has a good reputation and positive bank and trade references.

Sources of Leads: The Internet is an exploding source of trade leads. However, many are best avoided (fishing

expeditions, scams, etc.). The key is to know which leads are worth pursuing.

Specialized trade directories, such as Worldwide Company Information, Kompass, Coface,

EuroBase and others, can be selectively searching to identify potential foreign buyers and distributors.

o ra e ea s w some or s gn can screen ng are repor e a y n s ra e

Opportunity Program (TOP), USDA/FAS Agricultural Trade Leads, and UN Electronic Trade

Opportunities.

Major Project Opportunities with strong financing appear in Global Infrastructure Database and

monthly procurement bulletins of the regional development banks.

Screening and selection Aids: Exporting Basics has qualification checklists and model agreements for

agent/distributor screening and selection. International Company Profiles and others offer background and

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credit information on prospective agents/distributor. The Export Assistance Legal Networ (ELAN) lists

nationwide lawyers willing to give free initial consultations.


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Exporters that aren't known abroad attract no business, so exposure is a must. The Internet is a low

cos , g o a promo ona me um. xpor ers w a e presence can e seen a mos anyw ere n

the world without high-cost direct marketing or media ads. The Internet also links to more targeted

promotional media, such as international trade shows and trade and industry journals with global

outreach.

Promotion methods/techniques typically used in exporting are described in the various how-to-export guides available in Exporting Basics and Basic Guide to Exporting. Promotional techniques

t at wor we n part cu ar countr es are scusse n oun ry ommerc a u es s an n

Industry Sector Analyses (ISAs) as they relate to industry-specific promotion in the country.

Company Web Pages can be virtual company/product catalogs, with text, images, price sheets,

and order forms. The audience is international, whether intended or not. However, Web Page

exposure has limits for exporters. Finding any one Web Page among millions is a chore, and most

of the companies don't or won't export. This deters Web searches by importers.

Company export directories, such as Thomas Export Register and MyExports, and product

export directories, such as the CITDs Trade Directory and the Commerce Departments

Commercial News USA, offer greater promotional impact. Foreign buyers can search them for thecompanies and products they seek, knowing they only include U.S. exporters likely to respond.

Trade event directories, such as TSNN, Expo 24-7, ExpoWorldNetand others list specific

international trade events by theme, with dates, venues, attendance, fees, etc.

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An export sale often starts with an inquiry, solicited or unsolicited. The inquiry might be be general

or a specific request for quote. Treat inquiries like gold. It's a buyer's market, and the inquirer has

other options. Some inquiries, however, may be fishing expeditions, so use discretion in responding.

Some pointers include:

Do respond promptly - Delay implies lack of interest or low priority.

Do respond to all questions - Forcing repeat questions is a turnoff.

Do enclose informative literature - These may preempt questions and expedite an order.

Do use a business-like tone - Informal or obvious form responses appear unprofessional.

Do print and sign all letters - Handwritten or unsigned responses leave a bad impression.

Do reply in the language specified - in English if invited; translate as needed.

Dont send costly samples right away - Wait until satisfied the inquirer is serious.

Exporting Basics and other Internet export guides explain how to respond to general inquiries andRequests for Quote, calculate and quote export prices, and invoice customers.

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Exporters must comply with a host of regulatory requirement to get their goods out of

their own country and into the importing country. Failure to comply has severe

potential consequences. At minimum, a shipment could be delayed at either end and

payment held up. Worse, the goods could be seized, fines imposed, or further export

privileges denied. Take all requirements seriously.U.S. Export Administration

Regulations are available on the Internet. CCGs, ISAs, International Market Insights(IMIs), Country Reports on Economic Policy & Trade Practices, and National Trade

Estimates Report on Foreign Trade Barriers identify applicable re ulatory

requirements in target markets, including import duties, quantitative restrictions and

standards, etc. Several sites give applicable import duties and taxes by product in key

markets, including WTO Tariffs, APEC Tariff Database, and others.

Exporting also involves lots of paperwork. All necessary documents must be precisely

filled out and filed. Even slight discrepancies or omissions could hold up a shipment

on departure or arrival; delay payment; or even risk seizure of the goods. Given the

ur en an r s , most exporters use re g t orwar ers, w o are spec a sts n export

documentation. However, the exporter retains ultimate responsibility, so it's best to be

familiar with the requirements and the filing process.

Exporting Basics and other Internet export guides describe and provide models of

export documentation, including Shipper's Export Declarations, commercial and

consular invoices, certificates of origin, packing lists, bills of lading, etc.)..

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Export goods must arrive intact, in good condition, on time, and in compliance

with any laws. To assure this result, the goods must be properly packed,

labeled, insured and shipped. Competition dictates fast, least-cost delivery aswell. Freight forwarders can assist in all these respects for a modest fee.

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export delivery issues in some detail. The CITD site also offers direct access to

on-line logistics management, cargo tracking, and cargo insurance services.

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Exporters usually get paid through banks in the importing and exporting

countries. From least to greatest risk, payment methods include cash in

advance (wire transfer credit card), Letter of credit (L/C), documentary drafts

(sight, time and date drafts), open account, and consignment. Other than cash

up front (rare), exporters prefer irrevocable, confirmed L/Cs, because they

require the importer to effectively obligate the payment in advance. Importersprefer deferred payment methods, such as documentary drafts or open account.

T ese increase t e payment ris for t e exporter, ut may ecome necessary to

meet competitor terms. Exporters can reduce deferred payment risks with

export credit insurance from Eximbank and other sources. Exporters might

also consider factoring or forfaiting (discounting the receivable) as ways to get

paid up front while still offering competitive credit terms to buyers.

Export guides and other publications in the CITD site describe payment terms

and methods in great detail (Bankable Deals: A Small Business Guide to

Trade Finance; Exporting Basics/Making Export Sales). Pre-export workingcapital is available under the Export Working Capital Program. Sources of

trade and project finance are described in SBA News & Loan Programs;

Export-Import Bank Programs and Information; and International Finance

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Corporation. The CITD site also offers direct links to commercial banks and

other services, such as InternetLC, that provide export financing services).


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The Internet is an exhaustive medium for export query and communication. Whatever the

question or need, some organization, some service or some individual can help. The CITD

Web site provides one-stop access to nearly every form of export assistance, including:

Trade assistance organizations - Particularly helpful are federal, state and quasi-public

organizations, including U.S. Export Assistance Centers, overseas U.S. commercial offices,state export development agencies, SBDCs, World Trade Centers, and trade and industry

associations. For information about these organizations, see A Business Guide to Federal

Export Assistance; SBA News and Loan Programs; USAID Business Information; National

Export Directory; Key Officers of Foreign Service Posts; American Chambers of Commerce

Abroad; Trade & Industry Associations; Organizations Conducting Standards Activities.

Counseling/consulting services The CITD and US Export Assistance Centers can provide

advice or referral on specific questions or problems. Also, the CITD can draws on a network

of specialists to meet customized needs for market research, market planning, agent/distributor

searches, etc.

Current Events The International Trade News section of the CITD site provides directaccess to daily news feeds, trade periodicals and industry publications that cover worldwide

company, industry and regional news on an ongoing basis.

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Int Net Export 1 Mod GIO Notes View

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