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EXPORTING 101

Exporting 101

Exporting 101Jake Mieske2022-04-28T16:41:42-05:00

ASSISTANCE FOR EMBARKING ON AN EXPORTING JOURNEY

The obstacle most cited by companies as an impediment to exporting is a lack of information. It’s not that information on exporting regulations doesn’t exist; rather, busy executives lack the time and personnel to find, interpret and apply it to their operations. Enter Exporting 101. This series of well-organized, easy-to-understand documents will help answer basic questions you have about exporting terminology, documentation, regulations and more.

And if you don’t find what you’re looking for here, don’t worry. WEDC’s export development manager would be happy to answer your specific export-related questions.

TAX SAVINGS

IC-DISC offers exporters permanent tax savings primarily resulting from a reduction in the tax rate on qualified dividends. It is available to all forms of business organizations.

FOREIGN TRADE ZONES

Foreign Trade Zones (FTZs) were created in the United States to provide special customs procedures to U.S. organizations engaged in international trade-related activities.

EXPORT CLASSIFICATION

The International Harmonized System (HS) is administrated by the World Customs Organization and serves as the foundation for the import and export classification systems used in the United States.

EXPORT DEVELOPMENT PLANNING

If you think exporting will be part of your business’s future, it’s essential to develop an export strategy. An export plan is your guideline for the development of your international business.

EXPORT DOCUMENTATION

Export documentation is a necessary process that all exporters must pay close attention to, as documentation requirements vary considerably by country, commodity and situation.

EXPORT PRICING

Establishing an appropriate price is one of the most crucial parts of the export marketing mix. When you establish a price for your product in a foreign market, you need to consider the kind of pricing concept you will apply to the product.

EXPORT READINESS

Prior to entering an export market, companies should first establish if they are export ready. In order to do so, it is helpful to look at the characteristics common to successful exporters and the fundamental decisions they had to make when considering whether to proactively pursue export market opportunities and the impact it might have on their business.

EXPORT REGULATIONS/CONTROLS

All U.S. exports (goods and services) are regulated by the U.S. Federal Government. To comply with federal law, your company must determine which government agency has jurisdiction over your exports and whether your exports need an export license.

INCOTERMS©

Incoterms® are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. Incoterms® provide a common set of rules to clarify responsibilities of seller and buyers for the delivery of goods under a sales contract.

INTERNATIONAL METHODS OF PAYMENT

Among the most prominent concerns for new to export companies is the increased exposure to risk of payment default. A successful export transaction starts with the negotiation of a sales contract and ends with a timely payment.

EXPORT FINANCE & RISK MITIGATION

Export financing is often a key factor in a successful sale. This quick reference is designed to help Wisconsin companies learn the fundamentals of trade finance to turn their export opportunities into actual sales and to achieve the ultimate goal to get paid for their export sales.

FINDING INTERNATIONAL PARTNERS

Accurate, up-to-date market intelligence is essential for your company to target the best market opportunities and make informed business decisions when evaluating potential overseas business partners. A good overseas distribution partner is one of the most important decisions to make when starting to sell internationally.

FOREIGN TRADE BARRIERS

A trade barrier is generally any government-induced restriction that makes trade difficult or even impossible. Trade barriers have a negative effect on exporters because they interfere with the normal supply and demand and make international trade more complicated.

FREE TRADE AGREEMENTS

Free Trade Agreements (FTAs) have proved to be one of the best ways to open up foreign markets to U.S. exporters. Trade agreements reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the FTA partner country.

INTERNATIONAL INTELLECTUAL PROPERTY PROTECTION

Globalization and the rapid proliferation of technology have elevated the importance of intellectual property (IP) protection for small- and medium-sized enterprises (SMEs).

INTERNATIONAL MARKET RESEARCH

Systematic market research and planning is essential to exporting and is instrumental in avoiding costly mistakes. Exporters encounter different income levels and demand cycles abroad; languages, cultures and environments; laws and regulations; ways of doing business; and risks.

FOREIGN EXCHANGE AND CURRENCY

Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous. Exchange rates represent the linkage between one country and its partners in the global economy.

INTERNATIONAL BUSINESS TRAVEL

Any company involved in international business will eventually need to send staff abroad. When conducting business overseas, there may be visa and health requirements to consider, national holidays to avoid, trade events to try to coincide with your visit, and certain areas of the world to avoid.

GLOBAL IMPERATIVE

The benefits of export trade, even during sluggish years, prove to keep Wisconsin’s companies intact. International trade opens an array of opportunities for Wisconsin companies, and the state’s exports play an essential role in powering output, employment and profits for the economy.