Agenda Industry overview Reasons for going global Planning to go global Export/Import process overview
Industry Overview It is a great moment to Export! President Obama has launched the National Export Initiative
Industry Overview “…Trade increased substantially over the decade, with exports up from $1.10 trillion in 2000 to $1.83 trillion in 2010” (SBA 2008 and Census 2010) Exports
Industry Overview Small businesses constituted 97.5% of exporters, and they accounted for 31.3% percent of the total dollar value of goods export transactions (ITA, 2008) Exports
Industry Overview US Top Export Markets (Goods) 1.Canada ($248.8 billion) 2.Mexico ($163.3 billion) 3.China ($91.8 billion) 4.Japan ($60.5 billion) 5.United Kingdom ($48.4 billion) (U.S. Dept. of Commerce, 2010) Exports
Industry Overview Florida Top Trading Partners (FL-Origin) (EFI, 2010) 1.Switzerland 2.Brazil 3.Canada 4.Venezuela 5.Colombia 6.Mexico 7.Chile 8.DR 9.Paraguay 10. Peru Exports
Industry Overview Florida Top Exports (FL-Origin) (EFI, 2010) 1.Industrial Machinery 2.Electric Machinery 3.Pearls, Precious Stones and Metals 4.Air/Spacecrafts 5.Optical/Medical Instruments 6.Vehicles & parts 7.Fertilizers 8.Plastics 9.Essential Oils, Perfumery, etc. 10.Toys, Games & Sports Equipment Exports
Industry Overview In 2010, the value of imports increased to $2.3 trillion. (Census, 2010) Imports
Industry Overview US Top Import Partners (Goods) 1.China ($364.9 billion) 2.Canada ($276.4 billion) 3.Mexico ($229.6 billion) 4.Japan ($120.3 billion) 5.Germany($82.6 billion) (U.S. Dept. of Commerce, 2010) Imports
Industry Overview Florida Top Import Partners (Merchandise) (EFI, 2010) 1.China 2.Japan 3.Colombia 4.Mexico 5.Costa Rica 6.Chile 7.Brazil 8.Honduras 9.France 10. DR Imports
Industry Overview Florida Top Imports (Merchandise) (EFI, 2010) 1.Electric Machinery 2.Mineral Fuel, Oil 3.Vehicles & Parts 4.Industrial Machinery 5.Pearls, Precious Stones and Metals 6.Knit or Crochet Apparel 7.Copper 8.Fish and Seafood 9.Special Classification Provisions 10.Non-Knit Apparel Imports
Reasons for Going Global Grow your business Avoid changing domestic conditions Access to lower cost structures 95% of world population is outside the U.S.
Reasons for Going Global “Companies that export grow 15% faster, pay 15% higher wages and are 12% more profitable” (EFI, 2011)
Reasons for Going Global #4 state in total state-origin exports #3 state in “high tech” exports ($15.1 B) 1.3 million jobs supported (1 of every 5) 14 deep water seaports 19 commercial service airports (EFI, March 2011) Location, location, location!!!
Planning to go Global Identify products/services Identify foreign markets – Culture – Legal requirements – Economic, political or credit risk Analyze how to sell in each market – What is your role? – Direct or indirect?
Planning to go Global Landed Cost Analysis Break Even Analysis Competitiveness Analysis IS IT FEASIBLE????
Planning to go Global 1.Management commitment 2.In-depth experience with the product or service 3.Capacity and capability to produce international products or provide the service 4.Ability to invest into the process Critical Requirements
Process Overview Product Coding – Schedule B – Harmonized Tariff Schedule Licenses – Bureau of Industry and Security (BIS) – US Customs and Border Protection (CBP) Logistics & Documentation – Freight Forwarders – Import Brokers
Process Overview Incoterms – Determine the TERMS OF SALE – Examples: EXW, FOB, CIF Payment Terms – Cash in advance – Letters of credit – Collections – Open Account