BIS Publishes New “Best Practices” for Exporters

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) recently released a new set of best practices that are aimed at helping exporters, re-exporters and freight forwarders guard against the diversion of dual use items shipped to a transshipment hub.  While transshipments are a growing part of international trade and offer many benefits, they can be used illegally to either disguise the final destination or divert trade to unauthorized end users.

The new set of best practices encourages exporters to maintain strong internal compliance strategies, conduct focused outreach, and continuously raise awareness of export control regulations and obligations.

The following is a summary of the best practices published by BIS:

 - Companies should pay attention to the Red Flag Indicators on the BIS website.

 - Companies should seek to utilize Trade Facilitators that administer sound export management and compliance practices.

 - Companies should “know” their foreign customers – by obtaining detailed information to measure the risk of diversion.

 - Companies should avoid routed transactions when exporting and facilitating the movement of dual-use items.

 - When the Destination Control Statement (DCS) is required, companies should provide the appropriate Export Control Classification Number (ECCN) and the final destination where the item(s) are intended to be used.

 - Companies should provide the ECCN or the EAR99 classification to freight forwards, and should report this information in AES.

 - Companies should use information technology to the maximum extent feasible to augment “know your customer” and other due-diligence measures.

For more detailed information, please read the full article.

 

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Upcoming Webinar: Building an Export Management Program

American Shipper is hosting an upcoming webinar, “Building an Export Management and Compliance Program.”  Sponsored by Management Dynamics (in partnership with BPE), the webinar will take place on July 28th at 2 pm ET.  The hour-long round table discussion will include the following expert panelists:

- Beth Peterson, President of BPE
- Joe Burks, Director of Trade Compliance for Cooper Industries
- Nathan Pieri, VP of Product Development and Marketing for Management Dynamics

These experts will discuss best practices for developing your company’s Export Management and Compliance Programs, including:

- Strategic value of your EMCP
- The core elements of an effective EMCP
- The steps required to build an EMCP
- Sharing your strategy with your C-level superiors

Learn how your company can implement processes and systems that ensure compliance with the Export Administration Regulations (EAR).  Best of all – it’s FREE!  Sign up today.

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Encouraged Bilateral Trade for Small to Mid-sized U.S.Companies to India

According to American Shipper magazine, both the U.S. and Indian government has announced an incentive to encourage small to mid-sized companies to trade bilaterally between the two countries.

 “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…

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House Votes Extends Trade Programs

On Monday, the House voted to extend two trade programs for one more year, according to the Journal of Commerce. The General System of Preferences and the Andean Trade Preference Act will expire December 31st and have been enacted for several years.

The General System of Preferences allows developing nations to export selected goods to the United States duty-free and the Andean Trade Preference Act gives similar benefits for exporters in Ecuador, Colombia, and Peru in exchange for cooperation in counter-narcotics efforts.

“As Congress and the administration increasingly shift their attention to job creation, we encourage them to remember the important role trade can play in boosting the U.S. economy through exports,” said Chuck Dittrich, vice president for regional trade initiatives.

Extending the programs for one more year will give the U.S. government opportunity to analyze all preference programs available.

To continue reading, click here.

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Small Business Administration Supports Efforts For More Attention to Small Business Exports

According to the U.S. Chamber of Commerce Web site, it and the Small Business Administration are calling on the U.S. government to stimulate the economy and create jobs by increasing  resources available to small and medium-sized businesses that are interested in engaging in international trade.

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.

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A New Free Trade Agreement Between Peru and European Countries

The New York Times reports that Peru has recently signed a Free Trade Agreement with four European countries, Switzerland, Norway, Iceland and Liechtenstein.

Compared to last year, Peruvian imports and exports are more than a billion U.S. dollars in trade with these four countries, and Peruvian exports has risen by 18 percent .

The new trade agreement will benefit the fishing and industry sector in Peru.

To read more, click here.

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Who Are the Biggest Trade Complainers?

The Economist received published an article with statistics about which country files the most complaints to the World Trade Organization(WTO)…and who receives the most trade complaints. Here’s what they found.

The United States and the European Community(a.k.a. European Union) are number one and number two for both filing the most complaints and receiving the most complaints. Rounding out the top five for the World Trade Organization members, who file the most compliants are:

5. Mexico

4. Brazil

3. Canada

2. European Community

1. United States

Thoses members, who are subject to the most trade complaints are:

5. Argentina

4. China

3. India

2. European Community

1. United States

Many of these disputes vary such as export curbs to the latest import ban of seal products from Canada. According to the article, more of the wealther nations tend to file complaints to the WTO dispute settlement body compared to other members.

To view the full lists, click here.

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Management Dynamics Releases Trade Wizards 10.0 Web-based Research Tool

Improves Compliance with International Trade Regulations and Advisories

EAST RUTHERFORD, NJ, November 18, 2009 — Management Dynamics, a leading provider of Global Trade Management solutions, today announced the release of Trade Wizards 10.0, a Web-based portal to trade content from 122 countries that facilitates the research of complex trade questions. The new release makes it easier for companies to classify products, calculate landed costs and perform document determination at the Harmonized Schedule (HS) level.  In addition, a new user experience allows users to manage their searches and ultimately find information faster.

“Trade Wizards is an invaluable tool for our global trade team and we use it daily to quickly and accurately classify our products, determine applicable import or export controls, or to answer a question from the business on total landed cost,” said Glenda Welch, Director of Corporate Logistics and Transportation, Belkin International. “The latest version of Trade Wizards is much easier to use, allowing us to conduct our research more efficiently and to fully tap into Management Dynamics’ trade content library including the new HS-based document templates.” 

Management Dynamics’ Trade Wizards 10.0 enables the user to make quick, interactive queries using a standard Web browser to calculate landed cost, screen for restricted trade parties, search for HS and Export Control Number (ECN) classifications, identify applicable regulatory controls, and determine trade documents. Management Dynamics maintains the trade content needed to answers these questions for 122 countries or approximately 99 percent of the world market. What used to require many hours to manually research trade rules and regulations can be achieved in minutes using Trade Wizards 10.0.

New key features available on Trade Wizards 10.0 include:

 

  • New Classification Workflow – Perform complex searches that include the tariff number and either a legal or common term to quickly find relevant classifications.  Also, searches may be defined with complete Boolean logic and search results are displayed in a tree format to simplify the navigation to a classification.

 

  • Landed Cost Calculator Scenarios – Build landed cost scenarios with multiple origin countries to quickly identify the minimum landed costs with respect to product invoice, duty, VAT, excise, other governmental charges, transportation and insurance.

 

  • Restricted Party Screening – Screen with an improved screening engine and access to Management Dynamics’ coverage of 94 restricted party lists offering the highest level of compliance with the lowest rate of false positives.

 

  • Document Determination – Determine the documents required for exporting and importing based on country of export, country of import, and HS number. Results returned include hundreds of documents required for exports, imports, preferential agreements and product specific documents based on the HS number provided.

Trade Wizards 10.0 functionality is available in a highly intuitive user experience with online help that can be used immediately with no user training.

 “As businesses continue to globalize at a fast pace, it is important for supply chain teams to have the resources they need to keep up with the ever-changing trade regulations and supporting content,” said Nathan Pieri, SVP Marketing & Product Management, Management Dynamics, Inc. “The latest Trade Wizards 10.0 release takes a big step forward on usability and ultimately makes it easier for users to accurately answer their toughest trade questions.”

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U.K. Sees Exports Rise and Recession Ending

U.K. Trade Minister claims trade is almost back to normal as exports are increasing, says the Wall Street Journal. The Office for National Statistics stated that the trade deficit widened to an eight-month high in September as a 3.9% rise in exports.

“Trade is gradually getting back to normal. The statistics from the U.K. reflect that,” Marvyn Davies, U.K. Trade Minister said. “More and more companies are exporting their way out of recession.”

The primary goal for the government is to supply the country’s nearly five million smaller businesses with the ability to compete in exports markets. He states that the U.K. has some of the world’s leading large exporters, but lacks the large spread of mid-sized exporters that a country like Germany has. To do this, Davies plans to look into expanding the role of the state-owned credit agency and to turn to other countries to learn how it manages its small to mid-sized exporters.

A great way for exporters to stay competitive and export with the big dogs, is to integrate a solution, like Management Dynamics’ Export On-Demand. The solution helps small to mid-sized exporters establish an Export Management System, automate many aspects of compliance and demonstrate reasonable care. Implementing this solution will help avoid potential fines and preserve export privileges.

Learn more about Management Dynamics’ Export On-Demand

To find out more information on the article, click here.

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New European Trade Measure Not Caused by Protectionism

The New York Times reports that European exporters has been confronted with more than 223 new and restrictive trade measures since the beginning of the trade crisis last year, but has avoided protectionism. A new report out last Friday introduces the new trade measures issues by EU Commission and its trading partners.

“Proliferation of the kind of beggar-thy-neighbor protectionist policies of the 1930s has been prevented,” adds the document, which was reviewed by the International Herald Tribune. “The current multilaterally based world trade system seems to have passed one of the most serious stress tests in its entire history.”

The report concludes that the 18 percent decrease in trade since 2008 is due to financial crisis rather than protectionism.

Wanna keep up-to-date with all the latest trade measures?

 Then, register for a FREE Management Dynamics’ GTM Newsletter that summerizes global trade content on a weekly basis.

To register: http://www.managementdynamics.com/gtm/

To read the full article, click here.

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