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Tables of Contents for The Ultimate Guide to Export Management
Chapter/Section Title
Page #
Page Count
Foreword
xix
Preface
xxi
Identifying the Risks of Global Trade
1
18
International business means opportunity, but with this comes a certain degree of risk. International businesspeople need to be able to know when these risks are present, develop systems for identification, and understand how these exposures affect global business strategy
Facing the Challenges of World Trade
1
2
Using Creative Financing as a Marketing Tool
Improving Logistics
Providing Export Cost Savings
Developing Key Resources
Shipping to a New Market-Potential Exposures
3
4
Establish a Network of Resources
Carefully Manage the Terms of Sales and Payments
Execute Preplanned Logistics
Know the Documentation Requirements
Know the Export Insurance Issues
Staying Competitive while Reducing Exposure
Facing the Risks of Global Trade
7
3
The Future Holds Perils for Smaller Exporters: Potential Deregulation Issues and Tips on How to Survive
10
2
Navigating the Obstacles of Global Trade
12
1
Exposures in Today's Foreign Market
13
2
International Freight Shipments-Avoiding the Major Pitfalls: Where Did My Shipment End Up?
15
2
Start with the Correct Documents
Complete Those Documents
Obtaining Support
Accurate Documents = Prompt Payment
Concluding Remarks
17
2
Gaining Entry into World Markets
19
22
This chapter reviews the questions that should be asked to determine if a company should enter the field of export sales and marketing. It also provides the information needed to analyze products and services to determine if they can compete globally and discusses the beginning steps in the export process
Global Overview
19
3
Reasons to Become Involved in Global Markets and Export
Effectively Developing a Global Strategy
Should Your Company Enter the Global Arena and Begin to Export?
22
2
Senior Management Issues
Aligning with Export Professionals
Structuring an Export Program
24
9
Market Research
Utilizing Third Party Assistance
Export Management and Trading Companies
Foreign Distributors or Sales Agents
Developing Your Costing Structure
Preparing Your Product for Foreign Sale and Distribution
Logistics of Export Distribution
33
1
Foreign Tax Considerations
34
1
Foreign Sales Corporations
34
1
Finding and Managing Export Service Providers
34
1
Identifying the Costs of an Export Shipment
35
2
An Export Case Study
37
2
Concluding Remarks
39
2
Meeting International Customer Sales and Service Demands
41
24
Servicing global customers is an art, as much as it is a science. This chapter presents various options the international businessperson can use to develop a global customer service strategy. Hands-on-solutions are included
Skills Needed to Succeed in International Trade
41
3
Excellence in Customer Service in Global Trade
44
3
Competitive Advantage
Quality Communication
Building Personal Relationships
Negotiating Problems with International Customers: Three Key Steps
47
1
Be in Their Face
Mitigation Is Key
Follow-Up and Communication are Critical
The Growing Need for Third Party Logistics in Exports
48
4
Reasons for Downsizing in Corporate Transportation
Cost and Benefits of Third Party Export Logistics
Intermodalism in Exports
Electronic Data Interchange (EDI) and Management Information Systems (MIS)
Setting Up Quality Control Procedures for Exports
52
2
Ship Timely
Ship Accurately
Communicate Intelligently and Responsibly
Controlling the Terms of Sale
54
3
Overview: Sales Terms
Name the Terms and the Point of Shipment
Terms of Payment
Additional Considerations
Increase Your Export Sales through Credit Insurance
57
2
Worldwide Shipping: Know, Name, and Control the Destination
59
1
Gaining Competitive Advantage: Customer Service and Logistics
60
5
International Transportation and Logistics: Potentially the More Difficult Part
Some True and Interesting Sea Stories (slightly modified to protect the innocent)
Eight Steps Toward Competitive Advantage
The Concept of Competitive Advantage
Freight and Logistics Issues for Import/Export Managers
65
18
A critical aspect and cost of selling goods overseas is freight. This chapter reviews many of the factors affecting the decisions importers and exporters must make when dealing with freight. It also provides comprehensive options for reducing cost, negotiating better rates, and obtaining the best service contracts
Export Trade: Five Key Areas to Get the Best from Your Forwarder
65
5
Selection
Logistics Consulting
Pricing
Value-Added Services
Setting Performance Standards
Use of ``Consolidators'' in Export Trade: A Viable Option for Ocean and Airfreight
70
3
Ocean Freight Rates: Some Unsettled Seas for Small Shippers
73
2
Potential Increases in Airfreight Rates
75
2
Negotiating International Freight Rates
77
6
Achieving the Skills to Negotiate Global Transit Costs
Determine the Field of Vendors/Suppliers
Provide Quality Information
Put Everything in Writing
Contingency Plan
The Ocean Shipping Reform Act of 1998 (OSRA)
Carrier Liability
Container Positioning
Payment Terms
Accessorial Charges
Long-Term Contracts
Collect Freight Arrangements
Logistics Services
Specialty Logistics Issues for International Trade
83
24
Many U.S. corporations facing unique challenges to their import/export operations use specialized solutions to ship freight and meet customer satisfaction objectives. This section reviews these nuances of global trade logistics
Controlling Shipping Issues in the Entertainment, Communications, and Broadcast Industries: Six Key Practices
83
5
Use experienced reputable carriers
Make sure the shipment is insured
Pack and label the freight
Competitive bidding
Form partnerships with your carriers
Dealing with time-sensitive and specialized freight needs
Shipping Equipment Internationally on a Temporary Basis
88
4
Carnet (ATA)
Local Leverage
Temporary Import Bonds (TIBs)
Shipping Perishable Freight
92
6
Use Specialized Carriers and Forwarders for the Best Service and Rates
98
1
Develop Relationships with Your Carriers and Forwarders
Know Your Commodity Classification
98
1
Review the Logistics
98
1
Check Out Intermodalism
Develop Negotiating Skills and Bring Them into Practice
99
1
Compromise on Little Things to Win Bigger Issues
The Choice of Transportation: Air vs. Ocean
99
3
Cost
Time Sensitivity/Delivery Requirements
Nature of Product and Size of Orders
Needs, Origin, and Destination Issues
Dealing with Strikes in Purchasing Transportation Services: The 1998 United Parcel Service Disaster Teaches Us a Few Lessons
102
5
Don't Put All Your Eggs in One Basket
Maintain a Portfolio of Options
Develop a Contingency Plan
Maintain Quality Communications
Change the Logistics
Export Documentation: Practice, Compliance, and Procedures
107
26
Quality export documentation is the backbone of global trade. This chapter discusses correct export documentation and presents the best resources and systems for mitigating potential errors
INCO Terms: Utilization in Export Trade/Name the Shipping Point
107
1
Overview of INCO Terms
107
5
Name the Terms and the Point of Shipment
Terms of Payment
A Review of the Thirteen Standard INCO Terms
Obstacles to Export Documentation
112
4
Five Helpful Hints
Documentation and Letters of Credit
Power of Attorney
Harmonize Tariff Schedule of the United States (HTSUS)
Unsettled Seas Ahead for Many Exporters: Government Regulations and Posture Is Changing
116
1
Bureau of Export Administration (BXA)
Federal Maritime Commission (FMC)
Automated Export System (AES)
Export Compliance: ``You Can't Look the Other Way''
117
2
The SED
U.S. Government Requirements for the SED
Highlights of Exporter and Freight Forwarder SED Requirements
Key Exporting Carrier Requirements
2001 Changes for SEDs and Principal Party in Interest (PPI)
119
4
HTSUS
When to Use and How to Value the SED
INCO Terms
Overview of the BXA
123
6
How Does ITAR Affect Exports? (Registration of Defense Trade and Obtaining an Export License)
129
1
The Best Sources for Export Documentation
130
1
Societe Generali Surveillence Inspections
131
1
Concluding Remarks
131
2
What Exporters Should Know about Importing
133
6
All exporters have freight returned or have simultaneous imports of raw materials or finished products. This chapter outlines the information necessary for a working knowledge of importing
Import Compliance: A Necessary Evil!
133
1
Customhouse Brokers
133
1
Duties and Taxes
Selectign a Customhouse Broker
134
1
What You Should Know about ``Drawback''
135
2
Necessary Drawback Documentary Requirements
Returns and Repairs: The Most Cost-Effective Options
137
1
Concluding Remarks
137
2
Trade Finance, Banking, and Letters of Credit
139
8
A key issue to increase export sales is to arrange competitive and creative approaches to finance transactions and protect overseas receivables. This chapter reviews the financial and accounting concerns of exporters and provides the fundamental details of international banking, terminology, and various payment options
Trade Finance
139
1
Options in Global Finance and Banking
139
2
Export-Import Bank
141
1
Working Capital Guarantee Program
141
1
Intermediary Lending Program
142
1
Export Credit Insurance
142
1
Small Business Administration (SBA)
142
1
Overseas Private Investment Corporation (OPIC)
143
1
Commercial Banks
143
1
Reducing Risk through Insurance
143
1
Export Credit Check Information
144
1
Key Issues in Managing Letters of Credit
145
1
Concluding Remarks
146
1
Cargo Loss Control
147
32
More than 70 percent of cargo loss in transit could be eliminated if goods are properly packed for transit. This chapter addresses the concerns that shippers face and presents ideas, solutions, and options for loss-free imports and exports
Export Packing: A Mystery, an Art, and a Science
147
3
Management Policy
Export Packing: Learning Your Reference Sources
150
1
Cargo Loss Control in International Trade
151
3
The Right Attitude
Packaging and Labeling
Documentation
Minimizing Cargo Losses in the Transport of Bulk Liquids
154
4
Losses: Real or Imagined?
Why Measurements Fail
Passing the Bulk
Paper Handlers Move to Cut Insurance Costs
158
1
Affecting the Bottom Line: Marine Cargo Loss Control in the Pulp and Paper Industry
158
1
Marine Insurance
159
5
Distribution Hazards
Loss Control Recommendations
Summary
Containing Losses on Ocean Shipments
164
3
Bags, Cartons, and Drums
How Dry It Is
The Mode Sets the Mood
167
1
General Packaging and Stowage Considerations for Marine Containerization
167
2
Hazards
Moisture and Condensation
Containerization Mode
169
4
Vessel Motion and Stowage
Packaging Considerations for Container Shipments
Containerization-General Considerations
173
1
Container Yard Security
Shipments by Air Need Cargo Loss Control
174
4
Marking, Stowing, and Packing
Air Cargo Containerization
Sealing
Security Areas
Container Yard Security
Air Cargo Receiving Procedures
Claims Procedures
Concluding Remarks
178
1
Risk Management in International Business
179
34
The key to successful global trade is to identify and then manage risk exposure. This is called ``risk management.'' International business presents certain exposures not seen in domestic sales. This chapter discusses these issues and offers viable cost-effective alternatives
The Logistics of Political Risk Management in Exporting
179
2
Political Risk Insurance Update: 2000 and Beyond
181
8
History
Spread of Risk
Political Risk Coverages
ISO War Risk Exclusion
Trade Disruption
Markets
Loss Control
Conclusion
Political Risk: Not for the Fainthearted
189
3
Other Players
Insurance against Political and Credit Risk Exposure for the Small and Medium-Size Enterprise
192
2
Overseas Sales Activity
Personnel
Liability Insurances
194
1
Financing
Basic Steps to Protection
Basics of Insuring against Political and Credit Risks
195
1
Political Risk Coverage Analyzed: Ten Critical Steps for Risk Managers
196
4
Use a Specialist to Arrange International Protection
200
2
Transporters and Exporters Need Political Risk Coverage
202
1
Getting More from Marine Insurance
203
3
Terms and Conditions
Brokers and Underwriters
Insurable Interests
Competitive Markets
206
2
Reduced Paperwork
Settling Fees
Buy-Back Deductibles
Airshippers Beware---Be Warned: Recent Air Disasters Cause New Regulations
208
2
Pilferage
Shippers Security Endorsement Form
The SwissAir Disaster: Makes You Think Twice about the Perils of Global Trade
210
2
Concluding Remarks
212
1
Technology in Global Trade
213
12
The Internet is becoming a significant driving force of global trade. Many companies on the cutting edge have an advantage over those that have maintained a wait and see approach. The importance of technology in global trade and various applications in import/export practice are discussed
Using Technology to Gain a Competitive Advantage in Global Trade
213
2
Automation Takes the Pain out of International Trade Documentation
215
1
EDI-What to Expect from the Carrier
216
2
Basic EDI Services the Carrier Provides
Delivery Systems
Where's My Export Freight?
218
3
Transfer of Shipping Data
Tracking and Tracing
Management Information and Reports
The Automated Export System-a Logistics Professional's Opinion
221
2
E-Commerce: Export Logistics
223
1
Concluding Remarks
224
1
Managing the Critical Geographic Areas of the World
225
22
Many countries present complicated exposures to foreign interests. Understanding these exposures and dealing with the issues maximizes the opportunities to protect profits and expansion potential. This chapter presents a review of many of these areas and offers well thought-out practical solutions
Dealing with Customs in Foreign Countries
225
2
Europe and the New Euro
227
4
The European Community (EC)
The Euro
EC Duties, VAT, and Taxes
Antidumping and Antiavoidance
Consumer Health, Safety, and Labeling
Protecting the Public
Insurance and Product Liability
Bidding on Public Contracts
ISO 9000, 9001, 9002
Sources of Information
Eastern Europe
231
1
Exports into the Former Soviet Union and Eastern Europe: Exporter Beware
231
2
Know the Buyer
Secure the Transaction
Quality Logistics
Russia 2000 and Beyond
233
2
Shipping to Mexico Painlessly
235
4
Problems in Profile
Patents for Certain Products
Product Standards
Dispute Resolution
Resources
239
1
Exporting to Brazil
240
5
Government Restricts Exports
Port Congestion
Air Freight to Brazil
Marking, Labeling, and Packing
New Brazil Packing Regulations
NAFTA Update: 2000 and Beyond
245
1
Concluding Remarks
246
1
Global Personnel Deployment and Structure
247
6
The cost-effective use of personnel in export sales and operations can make or break a new or mature global trade program. The author offers a survey of the issues with specific recommendations spanning more than 25 years of review
Successful International Sales: Future Managers Will Require Numerous Skill Sets
247
1
Patience and Commitment
Developing Resources and Networking Channels
248
1
Understanding the Landed Cost
248
1
Creative Marketing Skills
249
1
The Power of Networking in International Trade
249
1
Matured Export Departments: Review and Analysis
250
1
Attracting Quality Personnel
251
1
Concluding Remarks
252
1
Obtaining Export Assistance
253
10
This chapter identifies and outlines the options an exporter can use from an array of resources in sales, marketing, operations, and banking
Chambers of Commerce
253
1
State Governments
253
1
U.S. Department of Commerce
253
3
Small Business Administration (SBA)
256
1
World Trade Centers
256
1
Commercial Banks
256
1
International World Trade Clubs
256
1
Trading Companies
257
1
Universities and Major State/Community Colleges
257
1
Other Advisers
257
1
Key International Web Sites
257
6
Free Trade Zones (FTZs) and Bonded Warehouses
263
2
Exporters can gain significant benefits in their global supply chain programs through duty-free work areas, which are reviewed in this chapter
Making the Free Trade Zone (FTZ) Work for Your Export Program
263
1
What Exporter's Should Know about Custom Bonded Warehouses (CBW)
264
1
Concluding Remarks
265
2
Appendix
267
292
Contents
267
2
Glossary
269
7
Key Telephone Numbers
276
2
Government Resources
278
2
General Export Sample with Definitions and Instructions
280
4
Air Freight Export
284
9
Air Freight Import
293
7
Ocean Freight Import
300
7
NAFTA Shipment (Canada and Mexico)
307
10
Truck Export
317
5
Ocean Freight Export
322
13
Air Freight Export
335
6
Miscellaneous Export Documents
341
27
The Export Finance Matchmaker (EFM)
368
1
Export Management Systems (EMS) and BXA Guidelines
369
16
Menu of EMS Elements with Objectives
385
19
Import Compliance Issues Review and U.S. Customs Guidelines
404
1
Reasonable Care
405
18
Harmonize Tariff Schedule of the United States (HTSUS)
423
8
ATA Carnet
431
8
Options in Export Finance
439
3
Letters of Credit
442
6
Comparison Method of Export Payment Options
448
1
Examples of Volume Weight Versus Gross Weight
449
1
Resources for Export Credit Insurance
450
4
Countries Requiring Legalization and Consularization
454
3
SGS Inspection Countries
457
1
International Commerce (INCO) Terms
458
2
WTO Agreement on Rules of Origin
460
3
WTO Agreement on Anti-Dumping
463
4
Correct Way to Complete the Shipper's Export Declaration Form 7525-V
467
17
Sample Fines and Penalties on Export Transactions from the Bureau of Export Administration (BXA) Archive
484
47
International Traffic in Arms (ITAR) Regulations Overview
531
28
Index
559