“There is almost limitless potential for growth in trade between our two countries, and that can contribute to economic recovery and job creation in the United States and continued economic growth in India,” Ron Kirk, U.S. Trade Representative said in a statement.  

In October 2009, Mr. Kirk and Anand Sharma, Indian Minister of Commerce and Industry met at the Trade Policy Forum meeting to create the necessary framework to support small to mid-sized companies and encourage trade. This week the two representatives will met again to host an advisory meeting of American and Indian trade experts to enhance their efforts for this new program.

“We can realize that potential by working together toward the goals set forth in the framework agreement, such as developing and enforcing policies that encourage technological innovation; increasing agriculture, services, and industrial goods; and increasing investment flows,” Ron Kirk added.

To continue reading…

In January, the Chamber presented the government with a 14-point International Engagement plan, which included a recommendation to double the $335 million appropriated for export assistance to small and medium-size companies.

“These steps will help address the continuing struggle of small businesses to get the loans they need to start up and grow,” Small Business Administrator Susan Mills said. “There’s no reason we can’t meet that demand and help small business owners create more jobs.”

To read more, click here.

“USTR is sharpening its focus on small- and medium-sized American businesses to craft new trade policies and enforce existing ones in ways that will help these firms grow exports around the world, and grow jobs here at home,” said U.S. Trade Representative Ron Kirk in a statement. “American companies of all sizes must export their goods and services to get our economy growing again.”

Management Dynamics offers a solution to SME exporters, who are interested in expanding its exports and to ensure compliance. Export On-Demand is a complete trade automation solution that helps U.S. SMEs establish an Export Management System, automate many aspects of compliance and demonstrate reasonable care.

For more information on Export On-Demand, click here.

For more information about the article, click here.

Nathan Pieri, SVP Marketing & Product Management for Management Dynamics, describes how “leveraging FTAs is one of the biggest value propositions for trade compliance systems.”

According to an Aberdeen report:

“A disturbing 71 percent of all companies surveyed complain that internal stakeholders outside of the compliance department do not understand the impact of their actions on trade compliance or the risks associated with non-compliance,” it reports.

To respond to growing demand for more trade-agreement support, Management Dynamics last year introduced a solution capable of managing multiple FTAs. “Today we support 10 free-trade agreements and by the end of the year we will support 20,” Pieri says.

How does ROI play into compliance?

According to Supply Chain Brain, time will tell whether there is ROI to be found in the Importer Security Filing, but there will be costs in failing to comply. Fines of $5,000 per incident will begin next January when U.S. Customs and Border Protection is set to begin enforcement of the 10+2 rule.

For more information about trade agreement and how to stay compliant, click here.

To read the full article, click here.

We would like to invite you to participate in an industry survey on companies’ uses of an Export Management System.  With the results, we hope to advance industry knowledge of best practices and better understand export compliance operations and processes across a wide spectrum of organizations.

Take the 2009 Export Compliance Survey

Your answers will be kept strictly confidential and will be reported anonymously.  

The findings of the survey will be shared during an upcoming webinar on ‘Key Strategies for Establishing an Export Management System’ on October 13, 2009.

Management Dynamics is a leading provider of global trade management solutions that improve the performance of global supply chain for importers, exporters, logistics service providers, and carriers. Our solutions are used by more than 13,000 global users at some of the world’s most successful 3PLs, carriers, manufacturers, retailers, and high technology companies.

Take the 2009 Export Compliance Survey

“More than a quarter of a million U.S. firms export goods. Ninety-seven percent of those firms are small- and medium-sized businesses who particularly need our help accessing global markets,” said U.S. Trade Representative Ron Kirk in a May 18 speech to the U.S. Chamber of Commerce about the Obama administration’s trade agenda.

The Small Business Exporters Association (SBEA) has dedicated its programs to help small and mid-sized businesses succeed in exporting. James Morrison, president of SBEA believes it’s easier in a recession for small businesses to grow as more companies are reducing costs and purchasing at a lower rate.

   “Small businesses are often more agile than larger ones, and can do well based on small sales,” said James Morrison in an interview. “There are currently a lot more overseas buyers at the $200,000 and $500,000 level than at $2 million or more.”

Once the small to mid-size company exports grows, it’s recommended to purchase global trade management solutions to ensure compliance at each stage of the export. Managment Dynamics offers a great solution that is cost effective and is flexible and on-demand. Export On-Demand can be quickly deployed and configured for an small to mid-sized exporter.

To learn more about Export On-Demand, click here.

To read the full article by American Shipper magazine, click here.

How can a small to mid-sized company step into the global trading world? Well, according to this article, here are some ideas.

1. Update your Web site. Add international shipping options to your website. Accepting credit cards makes it easier for the purchaser to buy the product wtihout messing with money orders.

Also, add content in additional languages (use flag symbols to click-through to other web pages). English may be the dominant language on the Web, but offering content in your audiences’ native language is a big selling point. It shows you value their business. The article suggested even buying a local domain, such as www.yourbusiness.ie, if you are stepping into the Irish market for example. Having a country code domain name makes it clear that you trade in that particular country.

2. If stepping into a new market, monitor regional and international competitors. You may have to work harder to step into that regions’ market to win business. Look on competitor websites in each region to determine how it pitches its content to your new audience, and study its pricing stategy. $9.99 doesn’t translate in currency conversion effectively. Another option could be to offer multipy currency conversions on your website by allowing the customer to click on the preferred currency when paying.

3. Stay up-to-date with relevant customs regulations. This is where it can be cost-effective to purchase an On-Demand product from companies who specialize in global trade management, particular thoses who offer low-cost solutions specific for the small to mid-sized markets.  Management Dynamics offers an On-Demand solution to help build an Export Management System, called Export On-Demand. This solution can quickly be deployed and configured for an SME exporter. It covers all of the key export compliance capabilities including maintaining reference data, screening trade parties, producing documentation and maintains audit trails.

For more information on Export On-Demand, download a free brochure.

To read the full article on tips for entering the international market, click here.

The fear of added protectionism from the new US administration still feeling its way around the Canada-US trade relationship has also heightened the sense that the border is thickening, reports Julia Kuzeljevich, feature editor. 

Large enterprises have the resources with any change between the two countries trade policies to understand and meet any new regulations. But, what about the small to medium sized enterprises (SMEs)?

The more SMEs enter into cross border trade, the more work has to go into information being managed.

Nathan Pieri, senior vice-president of marketing and product management for Management Dynamics states, “There is not a good understanding among SMEs about what is required. They have a very hard time getting their message up the ranks.” 

Management Dynamics offers a solution that will help SMEs stay confident as it participates in global trade.  Export On-Demand is a complete trade automation solution that helps establish an Export Management System, automate many aspects of compliance and demonstrate reasonable care.

Wanna find out more information about Export On-Demand? click here.

 We are discouraging exporters who are asking for cover for one shipment or single buyer in a particular country… We are advising them to come for turnover cover (a bouquet of shipments),” a senior ECGC official said.

The economy has not helped. Many exporters are facing cases of  payment defaults, and without insurance to help cover this risk it can eat at the company budget.  The Commerce Ministry in the United Kingdom is already in discussions to help extend coverage to small scaled exporters.

From this article, I have composed 5 simple tips on how to reduce costs in your company as an importer:

1. View your import tax policy. Unlike import tax duties, import duties can change dramatically. How you classify your product, the type of packaging and assembly determines the particular rate you receive. Knowing you have the ability (with a little research) to recatergorize your product can help reduce costs.

2.Understand the subtle differences with the tariff schedule. Pay attention to how your product is labeled. An example from the article was an oversized t-shirt can be labeled as either a nightshirt or a swim suit cover. The swim suit cover had an increased rate of almost 7 percent compared to the nightshirt. Make sure its clear how your product is used. Furthermore, researching  the location your product is assembled can reduce costs. Should your product be imported pre-assembled? Or, is it more cost effective to import the parts and assemble domestically? You may be surprised from your research.

3. Audit your Supply chain. This may be commonsense, but many companies may just go through the motions and not notice extra costs popping up here and there.  For example, a U.S.-based wholesaler orders $1,000 worth of handbags from a France vendor. The vendor, in turn, orders the handbags from a factory in Manila for $750. If the American wholesaler can show through purchase orders that there was an arms-length sale between the France and Manila companies, and the handbags are clearly destined for the United States, the customs duties would be assessed against the $750, rather than the $1,000. Your audit trail will prove this transaction to the American government for tax purposes.

4.Discuss tactics with your ventor. Keep your ventors in the loop about tax breaks, this can help keep costs low and give you more for your money. Deciding on where you manufacture your product and where it is assembled, again, makes a difference for both you and the vendor.

5.Practice tariff engineering. According to CFO, “tariff engineering is the practice of designing and marketing a product with a tariff schedule in mind.” Understand how you will market the product. The terms and use of the product derives back to tip #2, how you classify your product can help you save money.  

“How you import products is actually a science. If you know the [importing] categories and how to work with the categories, you’ll save your company money.” states  Billy Pymm, CFO of Maverik Lacrosse

For further information on how to reduce costs and understand the science of global trade download this best practice white paper from Management Dynamics, inc., Five Best Practices to Reduce International Freight Costs.

 To read the full article, click here.