Export 101
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Transcript of Export 101
The World Is Open For Business. Yours.
An Overview of the U.S. Commercial Service
Why Should You Export?
95% of the world’s consumers are outside of
the U.S.
Exporting helps to diversify your client baseand take advantage of regional growth
If you are not exporting, it’s highly likely yourcompetitors are selling abroad or will be soon
Free trade agreements, the Internet, improvedtransportation, and Government assistance
Economic Impacts of Exporting
• Exports help diversify the U.S. economy
• U.S. manufactured exports support
6,000,000 American jobs
• Trade generates $9,000 more in purchasing power for the average American family
• Companies that export are 8.5% less likely to go out of business
• Jobs related to exports pay 15% more
Market Diversification
• Extend product life cycles
• Counter unstable economic markets
• Ability to maintain production year-round
o Seasonal differences
o Consistent sales
Exporters Are Small Business
97% of U.S. exporters are
SMEs with < 500 employees
75% of exporters have < 20
employees
7 in 10 new U.S. jobs are
created by small businesses
Exports & Hawaii
Hawaii’s Top Exports
Tourism Services
Education & Training Environmental Technologies
Cosmetics / Skin Care
Agriculture & Processed Foods
Hawaii Exports Based on Origin of Movement
HTS Description US Dollars % Share %Δ 08/07
2007 2008 2007 2008 2008/2007
22 Beverages 42,204,853 37,569,727 7.54 3.9 -10.98 18 Cocoa 15,944,232 16,599,114 2.85 1.72 4.11 9 Spices/Coffee And Tea 7,304,677 7,018,267 1.3 0.73 -3.92 76 Aluminum 7,361,090 6,900,668 1.31 0.72 -6.25 12 Misc Grain/Seed/Fruit 3,805,825 5,133,636 0.68 0.53 34.89 20 Preserved Food 4,553,234 5,068,279 0.81 0.53 11.31 10 Cereals 1,486,206 3,281,321 0.27 0.34 120.79 42 Leathr Art;Saddlry;Bags 2,862,885 2,978,381 0.51 0.31 4.03 95 Toys And Sports Equipmt 2,413,336 2,872,111 0.43 0.3 19.01 33 Perfumery/Cosmetic/Etc 2,720,209 2,654,592 0.49 0.28 -2.41 93 Arms And Ammunition 5,645,967 1,850,516 1.01 0.19 -67.22 30 Pharmaceutical Products 1,852,556 1,761,063 0.33 0.18 -4.94 91 Clocks And Watches 1,010,997 1,681,710 0.18 0.17 66.34 92 Musical Instruments 2,648,193 1,633,804 0.47 0.17 -38.3
Hawaii’s Top Exports
Hawaii Export: Coffee
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
Rank Reporting CountryUnited States Dollars
2006 2007
Reporting Total 14,297,492,235 17,053,983,357
1 Germany 2,346,555,380 2,780,324,135
2 France 922,715,741 1,135,345,616
3 Italy 871,668,372 1,091,582,381
4 Japan 990,582,099 1,007,536,566
5 Belgium 576,881,197 616,942,661
6 Canada 633,235,711 681,828,070
7 Spain 485,158,540 615,529,732
8 United Kingdom 420,201,477 481,947,242
9 Switzerland 252,695,531 326,401,485
10 Austria 267,985,342 386,423,340
Who is buying? Top Global Importers
Hawaii Export: Coffee
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
RankingPartner Country
US Dollar % Change
2007 2008 2008/2007
World 544,540,906 617,324,345 13.37
1 Canada 402,913,519 455,420,320 13.03
2 Japan 44,294,196 55,704,640 25.76
3 Russia 233,570 23,024,121 9757.48
4 Singapore 11,451,807 13,562,164 18.43
5 China 10,656,153 13,014,006 22.13
6 Germany 35,747,261 12,714,003 -64.43
7 South Korea 5,923,339 9,627,450 62.53
8 Mexico 3,355,982 5,678,248 69.2
9 Taiwan 1,996,288 3,645,264 82.6
10 Bermuda 1,581,979 1,694,163 7.09
Where is U.S. coffee going? Top U.S. exports
Hawaii Export: Coffee
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
US Dollar % Change
Rank Country 2007 2008 2008/2007
World7,117,465 6,966,482 -2.12
1 Japan 5,530,968 5,050,100 -8.69
2 Sweden 1,212,584 1,244,283 2.61
3 Canada 91,023 317,836 249.18
4 Germany 204,835 249,702 21.9
5 South Korea 28,838 49,679 72.27
6 United Kingdom 0 18,000 0
7 Taiwan 32,901 10,169 -69.09
8 Australia 12,566 10,112 -19.53
9 Finland 0 9,277 0
10 France 0 4,800 0
Where is Hawaii coffee going? Top HI exports
Industry Sector
Architecture & Engineering Services • • • • • • • •Cosmetics & Skin Care • • • • •Educational Services • • • • • • •Renewable Energy Equipment • •Travel & Tourism Services • • • • • • • • •Water Resources Equipment • • • • • • • •
Japan India Australia MalaysiaChina South Korea
Hawaii’s Best Export Markets
Hong Kong
Leveraging Free Trade Agreements
Free Trade Agreements
• FTAs help open foreign markets
o Reduced trade barriers (tariffs, quotas, etc.)
o Strengthen legal protections
• Promote fair competition
• Address trade issues
• Bring costs down for U.S. consumers
Free Trade Agreements
Topics of FTA Negotiations• Opening Sectors to Competition
• Improving IPR Protections
• Enhancing Labor Rights
• Dispute Settlement
• Environmental Standards
• Government Procurement
• Enhancing Investment Rules
• Improving Customs Facilitation
Free Trade Agreements
Free Trade Agreements
ISRAEL JORDAN
Free Trade AgreementsCountry 2007 MMUSD 2008 MMUSD 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%
Free Trade Agreements
U.S - Korea FTA, Pending
• Model for new Asia FTAs
• 95% of U.S. consumer & industrial products will enter duty-free
• 67% of agricultural exports will be immediately duty-free
• Remaining tariffs eliminated <10 years
• Hawaii: agricultural / food products, tourism
Going GlobalConnecting with International Markets
Are You Export Ready?
• Domestic Success?
• Production Capacity?
• Financial Resources?
• Management Commitment?
• International Plan with Goals?
• Know-how? (shipping & methods of payment)
Common Export Mistakes
• Lack of Export Business Plan
• Low commitment to exporting
• Neglecting export customers for local customers
• Reliance on inadequate partnerships
• Failure to modify products & methods to accommodate foreign regulations and preferences
Determine Product Potential
• Examine Domestic Market Success
• Assess Unique or Important Product Features
• International Market Research
• Where are International Hits Coming from on your Website? Target markets?
• Where are Your Competitors Selling?
Develop An Export Strategy
• Be PRO-ACTIVE & REALISTIC about your ability to expand
• Define your resource limitations (money, personnel, and time)
• Identify a few target markets
• Evaluate target markets, customers, distribution channels
• Evaluate future profits & opportunities to expand business
• Develop an entry strategy for each market
Focus Your Efforts!
Basic Guide to Exporting
• How to identify the best markets
• Financing export transactions
• Best methods to handle orders and shipments
• Case studies of successes
• Sources of free or low-cost export counseling
• $19.95 online @ www.export.gov
An Overview of the U.S. Commercial ServiceHow the U.S. Government Can Help
U.S. Commercial ServiceCreating Prosperity Through Global Trade
• A global network in more than 80 countries of the best trade professionals in the world
• Our global presence and international marketing expertise helps U.S. companies compete & win in global markets
• Our Goal - promote economic prosperity, enhance job creation, and protect U.S. commercial interests abroad
Our Services
Four Ways to Grow Your International Sales
Market Research Trade Events
International Partners
Consulting & Advocacy
Our Services: Market Research
• Market Research Library (FREE) – over 100,000 country and industry-specific market reports, web sites, events, and trade directory listings
• Country Commercial Guides (FREE) – annual U.S. Embassy reports on the business, economic, and political environment as it affects U.S. business and foreign investments
• Customized Market Research – personalized report prepared specifically for your company with information that answers your specific international business questions
* Find these reports and more at www.export.gov
Target the Best Markets with Our World Class Research
Our Services: Trade Events
• Trade Missions – face-to-face meetings with pre-screened partners, country briefings, logistical support, and counseling
• International Buyer Program – brings thousands of foreign buyers to U.S. trade shows each year
• Certified Trade Fairs – the best international trade shows with access to thousands of buyers and pre-screened matching
• Single Company Promotion – pre-screened invitations to help you promote your products/services
Promote Your Product or Service to Pre-Screened Buyers
Our Services: Find a Partner
• Gold Key Service – one-on-one meetings with pre-screened contacts in your desired market
• International Partner Search – a detailed list of potential partners interested in your product/service
• International Company Profile – low-cost due diligence and credit check on buyers & distributors
• Featured U.S. Exporter (FUSE) – on-line listing featuring your company in the market of your choice
• Commercial News USA – official U.S. trade magazine that promotes your product or service to over 400,000 international buyers
Meet the Best Buyers, Distributors, and Agents
Our Services: Consulting
• Counseling – your local office that can help you with your export strategy and obtaining financing
• Resolve Trade Issues – we can help resolve regulatory hurdles and recover payment
• Platinum Key Service – customized, long-term support to help you achieve your business goals
• Advocacy – U.S. diplomatic assistance to help level the playing field for your business
Get Personalized Advice at Every Stage of Exporting
Leverage Our Additional Resources
www.Export.gov – Your U.S. Trade Portal•Export basics, market research, HS & schedule B numbers•Information on international finance, logistics, and standards
www.Export-U.com – FREE export tutorials
Trade Information Center - 1.800.USA.TRADE•Open Monday through Friday until 6pm EST / 12pm Hawaii time•Get immediate answers to your trade questions•Information on tariffs & duties, customs procedures, legal requirements and standards, government assistance programs
Business Information Centers•China: www.export.gov/china •India: www.export.gov/india•Middle East / North Africa: www.export.gov/middleeast
Note: A small company is defined as employing 500 employees or less. Fees vary for Trade Missions, Single Company Promotions, and the Platinum Key Service.
Cost of Services
Our Services Small Company
New Exporter Discount
Large Company
Local Counseling FREE FREE FREE
Market Research Reports FREE FREE FREE
Country Commercial Guides FREE FREE FREE
Export.gov Information FREE FREE FREE
1.800.USA.TRADE FREE FREE FREE
Gold Key (Matchmaking) $700 $350 $2,300
International Company Profile (Due Diligence) $600 $350 $900
International Partner Search (Prequalified contacts) $550 $350 $1,400
Featured U.S. Exporter (Overseas web promotion) $150 $75 $300
Commercial News USA (global print advertising) www.thinkglobal.us/advertiser/rates.php
Our Strategic Partners
Our Partners help you export by:
•Conducting joint outreach events
•Leveraging training and education
•Reaching exporters through communication and marketing
•Leading trade missions
•Providing global contacts
What Our Clients Have To Say…
“Using the U.S. Commercial Service’s foreign market research, we now export to more than 70 countries and have received a presidential award for our export success.”
Ampro Electronics, Los Angeles, CA
“Trade shows supported by the U.S. Commercial Service are a great way to reach the right foreign buyers.”
Artcrete, Natchitoches, LA
“Thanks to support from trade specialists at the U.S. Embassy, we not only saved jobs, but continue to increase our exports.”
Ford Meter Box, Wabash, IN
“In only six months, local trade specialists helped me get quality distributors covering 13 foreign markets.”
Excel Holdings, Leesburg, VA
Mahalo!John Holman, DirectorHawaii Export Assistance Centerwww.buyusa.gov/hawaii 808.522.8040 or 808.522.8041
www.export.gov1.800.USA.TRADE