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International Trade 101
Presented by: FedEx Services and the U.S.Commercial Service
Facilitator: Steve Miles
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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 Coll ins , Sales Professional, FedEx Services
Domestic vs. International shipping
International Documentation
Resources
Q&A
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Additional Panelists
In addit ion to our speakers, we also have others present to answerquestions:
Arnethia Hopson FedEx Express, Regulatory Consulting Group
Amy Johnson FedEx Services, U.S. International Marketing
Kosha Mehta FedEx Services, U.S. International Marketing
Stephen Smith FedEx Services, U.S. International Marketing
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Disclaimer
Every effort has been made to ensure the accuracy of this
presentation at the time of publ ication, 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.
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INTERNATIONAL TRADE 101
Jim Golsen, U.S. Commercial Service
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Export Opportunity
U.S. Exports of goods and services in 2010 reached $1.83 tri llion,the second highest annual total on record and the largest year-to-year percent change in over 20 years. In 2010, exports contributedto 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
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Leading Export Sectors - Mexico
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Agribusiness
Automotive Parts and Supplies
Education and TrainingServices
Energy Sector
Environmental Sector
Franchising Sector
Housing and Construction
Internet and IT Services
IT Health Care
Packaging Equipment
Plastic Materials/Resins
Secur ity and Safety
Telecommunications
Transportation Infrastructure
Travel and Tourism Services
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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%
Jordan 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%
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Improving intellectual propertyright (IPR) protection
Enhancing labor rights
Government procurement
Opening service sectors tocompetition
Enhancing rules on foreign
investment
Environmental standards
Improving customs facilitation
Free Trade Agreements (FTA) canbenefit companies
All figures are shown in US dollars (millions)
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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 targetmarket at export.gov.
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U.S. Commercial Service provides solut ions
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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 Distribut ion 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.
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Selecting the right fi rst market wil l help ensure you aresuccessful and have a good experience.
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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 onbehalf 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 themarket 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.
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U.S. Commercial Service staff are located in 110 U.S. Cities andbased out of U.S. Embassies and Consulates in over 90 marketsworldwide.
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INTERNATIONAL SHIPPING 101
Shawn Collins, FedEx Services
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Domestic vs. International Shipping:Regulatory Requirements
Customs regulationsDifferent 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 internationalshipping are the requirements that governments put in place toensure safety and duties & tax payment. This requires additionaldocumentation to identify the type of product being shipped and itsvalue.
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International Shipments Require Extra Documentation
International requires additionaldetails
Importer of record if different thanconsignee. Ship To and Sold Toperson
Full commodity description with valueof the goods
Harmonized Tariff Code
Payer for Duties & Taxes, whenassessed
Most commonly used/requireddocumentation 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 onthe shipment documentation for an international shipment
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Document Samples
Top primary documents required: International Air Waybill
Commercial Invoice
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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 therequired fields on each.
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International Air Waybill
Essential Data Elements
1. Appropriate accountnumbers
2. Name of seller/shipper
3. Name of buyer/consignee
4. Adequate descriptions ofshipment, contents &origins
5. Accurate values
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4, 5
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International Air Waybill (Continued)
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Essential Data Elements
1. Appropriate account numbers
2. Name of seller/shipper
3. Name of buyer/consignee
4. Adequate descriptions ofcontents & origins
5. Accurate values
4
4
5
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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 soldby the seller) if di fferent 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 ofmanufacture, and serial numbers (if applicable).
6. Signature and date
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Commercial Invoice Example
Required Data:
1. The shippers information
2. The recipients information
3. The buyers information, if differentfrom the recipient
4. Tracking number / air waybill number
5. Complete descriptions of contents &
origins
6. Signature and Date
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EEI: Commodities Valued over $2,500
The U.S. Census Bureau documents and records export shipments
wi th single commodities valued over $2,500 that leave the U.S.
Shippers must f ile 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 therequirement
Self-file via U.S. Census site, registration required. www.aesdirect.gov
Connect to AESDirect using a FedEx Ship Manager electronic shipping solutionwith AESWebLink - FedEx Ship Manager will notify you that EEI is required basedon information you enter.
Use FedEx Export AgentFile, you can authorize FedEx either electronically orvia fax to file an EEI on your behalf.
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Avoid Vague Commodity Descriptions
Invalid Descriptions Valid DescriptionsSamples Wood screws (samples)
Parts Guide, part for printing press
Promotional itemsGolf 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 ofclassification.
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Submitting Documents Electronically
Some carriers, including FedEx, offer a service that allows customsdocumentation to be submitted electronically. This can have manybenefits:
Operational Efficiency
Completed documents can be saved online to be reused, eliminating completing all fields foreach shipment.
Electronic documentation can be submitted to customs ahead of time, allowing theclearance 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 everyshipment.
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
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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 wi th 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 Internat ional Shipping Information
fedex.com/us/international/
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http://fedex.com/GTMhttp://www.fedex.com/us/international/shipping-documents/tips/index.htmlhttps://www.fedex.com/shipping/shipEntryAction.do?origincountry=us&locallang=us&urlparams=ushttp://www.fedex.com/us/international/http://www.fedex.com/us/international/https://www.fedex.com/shipping/shipEntryAction.do?origincountry=us&locallang=us&urlparams=ushttp://www.fedex.com/us/international/shipping-documents/tips/index.htmlhttp://fedex.com/GTM8/12/2019 USCS Intl Trade 101
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External Resources
U.S. Commercial Service websitewww.Export.gov Free
U.S. Census Harmonized Code Lookup
http://uscensus.prod.3ceonline.com/#/p=0
A Basic Guide to Export ing 10th 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
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http://www.export.gov/http://uscensus.prod.3ceonline.com/http://www.amazon.com/http://www.worldtradepress.com/Dictionary_of_International_Trade.phphttp://www.worldtradepress.com/Dictionary_of_International_Trade.phphttp://www.amazon.com/http://uscensus.prod.3ceonline.com/http://www.export.gov/