Today, it’s more practical than ever to sell goods and services across the globe. 95 percent of world's potential consumers are outside of the United States, and the global affinity for Made-in-USA products and services is second to none.
Many exporters continue to boost their bottom line and build their competitiveness by selling to world markets, and you can too. U.S. small and medium-sized companies—firms with fewer than 500 employees —account for 98 percent of the nearly 280,000 exporting businesses. In 2019, the value of U.S. goods and services exports was an impressive $2.5 trillion. With significant projected growth in global trade, fueled in large part by newly affluent consumers in other developing economies, the challenge for businesses of all sizes in the United States is how to dip into this incredible revenue torrent.
This list of questions for new exporters includes areas to consider when determining your level of export readiness, and provides an initial assessment of your exporting needs and capabilities.
A product or service’s success in the domestic market is a good indicator of its potential for export success. If your product or service is untried in the domestic marketplace, you could benefit from concentrating on domestic sales first.
Management commitment is the number one determining factor for export success, and an essential part of any export plan. Many companies begin export activities haphazardly, without carefully screening markets or options for market entry. Without an export plan, better export opportunities are often overlooked. Start by formulating a well-thought-out export strategy.
Can your company meet the increased demand it is creating? More space and equipment might be required to manufacture for the specific countries (which often have their own product standards and regulations) you are selling to. Financing might be needed to include any product modification costs.
A big hurdle for many companies is market development, as it requires funds for activities such as international travel, trade missions, trade show participation, market research, and business training. However, federal government export financing programs can assist.
U.S. businesses should know that protecting your intellectual property domestically does not extend your protection internationally, so companies should do their research first before exporting.
Selecting and preparing your product for export requires both knowledge of the product and the unique characteristics of each target market. However, before the sale can occur, your product(s) may need to be modified to satisfy buyer tastes, or regulatory requirements in foreign countries.
When shipping a product overseas, be aware of packing, labeling, documentation and insurance requirements. Also, be familiar with methods of shipping, import rules and regulations of foreign countries, and export regulations of the U.S. government.
Experienced exporters have extensive knowledge of export payment mechanisms, extend credit cautiously, and monitor older accounts. A U.S. Commercial Service International Company Profile (ICP) provides key information for credit checks.
Check to see if your product might require an export license, particularly if your product has military or dual military/civilian use. There are several U.S. government agencies that oversee licensing requirements for distinct categories of products.
We avoid Routed Export Transactions because we do not want to give up control over compliance.
Here are the risks involved with Routed Export Transactions:
-You cannot guarantee Automated Export System (AES) information is filed correctly.
- You are not in complete control of your compliance, which is a bad idea.
- You give up the right to decide which freight forwarder you want to use.
- You are unsure what’s going on with your goods, no visibility or control over the process.
We only deal in standard/normal exporting transactions where:
- We have full visibility and control of the product until the ship leaves POL in the United States.
- We meet pertinent FTR, EAR and ITAR and other compliance requirements, as required of us.
- We correctly and timely file the EEI though AES with the appropriate government authorities.
- We act as USPPI of the record with in the government records.
- We use our trusted Freight Forwarders who are answerable to us.
US Suppliers love working with us for the following reasons, among others:
Non-US Importers love working with us for the following reasons, among others: