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									     HOW TO SET UP AN EXPORT

          DEPARTMENT IN YOUR

                       COMPANY

                                                        FOR BEGINNERS




AUTHOR: GILBERTO CAMPIÃO


                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                             GILBERTO CAMPIÃO
                                                                      PAGE. 1
FOREWORD:


This material is the result of my personal experience in the international Area.

I have worked in several organizations in the International area, but I never find out
practical books and bibliography that could help me to set up an export department. This
material is my try and my contribution to the new entrants in this exciting area.

I did not have the ambition to produce a final and complete material, but I hope that it can
be of any help for you.

Have you a good reading!




                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                      PAGE. 2
ABSTRACT


This material was the result of my personal experience in the International Trade and my
goal is to give glues, routines, and examples of the best practices that could help you to
conduct better the installation of your export department.




                                         HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                           GILBERTO CAMPIÃO
                                                                                    PAGE. 3
INDEX

Initial Considerations – page 05
Basic department structure – page 07
Department division
        Commercial Area – page 07
        Operational Area – page 08
        International Marketing – page 09
Suggested position of the export department in your company – page 10
Export’s order flow – page 11
Area structure – Criteria to select your key partners – page 14
        How to contract a Customs Broker – page 14
        How to contract a Cargo Broker – page 14
        How to contract a Warehouse – page 14
        How to contract your Bank – page 15
        How to contract your Sales Agent – page 16
Is your product and company prepared to go abroad? – page 17
Go or not to go out? – page 19
Strategies of market entry modes – page 22
Tools to promote your products abroad – page 28
Tools of research – page 29
Basic reminder for beginners - page 30
Document Model – page 32
Bibliography – page 53
Conclusions and suggestions – page 54




                                        HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                          GILBERTO CAMPIÃO
                                                                                   PAGE. 4
Initial Considerations

Exportation is not a simple action. Exportation should be a very thoughtful strategy that can
change completely the structure of your company. The company should be ready to rethink
all organization to be successful in the overseas market.

There will be a lot of initial difficulties to set up an export department in your company.
You should turn your company into an export organization that can conceive and carry out
aggressive foreign market entry strategies and, at the same time, fully meet the pressing
demands of day-to day domestic operations.

Brazil is a big country with a very big domestic market. Because of the size of this market,
the Brazilian Companies were not used to worrying about going abroad. It was easy to sell
internally and sell abroad was done only in sporadic way or done between Brazilian
Affiliated and their International Headquarters.

This situation has changed in the recent years. The competition increased among Brazilian
Companies and additionally International Companies start to operate or export to Brazil.
The size of the market did not increase at the same level.

Today to sell abroad is crucial for several companies and in certain sectors is question of
surviving.

Your company should be competitive in the domestic market and prepared to sell and
operate in the International Environments.

Brazil is still a bureaucratic country and exportation demands a lot of paper and patience,
but all efforts will be compensate.

We suggest you to prepare a plan to help your company develop better its export activities.
You should keep in mind that exportation begins to be profitable on the average or long
terms. It becomes necessary to study markets, choose partners, develop or modify products,
change the packaging and obtain expensive certifications to be competitive in the
international scenario.
Other issue is to be sure that your company is ready to start exporting. It is essential that
your company:
    a) Has reached a certain maturity;
    b) Holds a nice share in the domestic market;
    c) Has full control of the production process and
    d) Has a good financial position to make the initial investments necessary to start the
        process.



                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                      PAGE. 5
A new department will require investments in structure and people. There are specific
regulations regarding the international market, paper work to be done, production changes
to be implemented among other needs to be competitive in the international environment.

Some companies consider “exportation” just a simple extension of sales department.
However, we strongly recommend the implementation of an independent area, linked
directly to the main board.

The export department has its own needs and the use of the domestic mindset will limit its
development.

WE CAN PRODUCE DOMESTICALLY, BUT WE SHOULD ACT AND THINK
GLOBALLY1

The companies that use the same structure in the domestic and international market, used to
be unsuccessful in their operations abroad. The international client has other needs than the
domestic ones. The use of the some procedures will abort the possibilities of success of this
new enterprise.

Your company ought to have someone in the staff who “lives and breathes exportation” all
the time, someone who really fights for results. It is no use to place in this position a
secretary or someone else who has no experience in this field. Some qualities are
indispensable in such a person that will prevent amateurism that might jeopardize the
company positions as a whole.

This area needs exclusive dedication. The use of non-specialist can cause finance losses and
can damage the company image. The consequences can be anrepairable.

Internationalization asks for capable people that can act and think globally.

All communication should be done through this responsible person that will coordinate all
exportation of your company in the international scenario.

Our suggestion is to link the export department directly to the company’s presidency or
main board. Linking the export department to the marketing or sales area will limit the
export’s actions and results.

Besides of the physical structure the Export Department should be considered more than a
new Department, but an implementation of a new cycle in the company “ THE
COMPANY INTERNALIZATION”.




1
    from Coca-Cola learns to think globally and act locally – pg. 429 Global Business 3rd edition
                                                     HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                       GILBERTO CAMPIÃO
                                                                                                    PAGE. 6
BASIC DEPARTMENT STRUCTURE


Companies entering into direct export are likely to establish an export department staffed
by only an export manager and a few assistants. This department is usually subordinate to
the domestic sales department and depends on other departments for order filling,
accounting, credit approval etc. Known as a “built in export department”2 this arrangement
is a good way to gain export experience with only a limited commitment of the company’s
resources. Once experience is gained in export markets, therefore, the “built in export
department” should be transformed into a full-function department, division, or subsidiary
with the authority and resources to plan, operate, and control export-marketing activities.


DEPARTMENT DIVISION


In small companies only one person can do all necessary activities in the area, but in bigger
companies are necessary to share the operations in at least three basic sectors:

       1) Commercial Area
       2) Operational Area
       3) International Marketing


1) Commercial Area
It will centralize the sales efforts of your company.

           Main attributions:

Help to identify and select main business opportunities
Help to plan and coordinate promotional plans in international market
Set up a commercial structure abroad
Help the supervision and elaboration of the Promotional material
Create and retain the portfolio of international clients

           Specific tasks:

Market visits
Partner selection
Agreements analysis
Market management
Develop and adapt products
Create and manage an International database

2
    .pg. 87 – Foreign Market Entry Strategies – Franklin R. Root
                                                    HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                      GILBERTO CAMPIÃO
                                                                                               PAGE. 7
Competitiveness study
Participate in International Fairs
Preparation of list of price
Coordinate the visit of international clients to your company

The Commercial area can the shared, depending on the size of the operations, in regions
like “NORTH AMERICA” “AFRICA” LATIN AMERICA etc or in Departments like “
FOOD”, “ ELECTRONICS” etc

2) Operational Area

It will centralize the paperwork and support activities.

       Main attributions:

Offer elaborations
Order confirmation
Fabrication order elaboration
Schedule of production
Control of warehouses, customer brokers, cargo brokers etc
Logistic control
Documents preparation
Invoicing
Commission payment to International agents
Contacts with banks, customs brokers and customs authorities
Licenses
Documents issue
Registers
Controls


       Specific Tasks:

Keep updated the files with the data of your Freight Forwarders, Banks, Cargo Brokers,
Insurance Co, Lawyers etc
Keep updated schedule of international fairs
Keep updated country control. It means legislation, agreements, vessels schedules, freight
levels, certificates validity etc


Depending on the size of the company and the quantity of exportations, it is possible to
include the sub-area “INTERNATIONAL TRAFFIC”. That will be the department in
charge of contracting, paying and control the freights of the export department.




                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                      PAGE. 8
3) International Marketing3

This area is the truly intelligence of the company. The International Marketing area will
define the strategy of the company regarding exportations, new affiliates, joint ventures etc.

The responsible for this area should have strategic vision. The sales will be the result of a
well-implemented market policy that ought to be established as per a Global Market Plan.

There are companies where the responsible for the sales (TRADER) is also responsible for
the Marketing strategies. We suggest sharing the responsibilities of sales and market
between two distinct areas. There is a trend of the COMMERCIAL DEPARTMENT to
think only in the short run (sales) forgetting the other important aspects of the Marketing
strategies (positioning, price practices etc). This short run vision can cause lack of
marketing consistency and decrease of the company competitiveness in the long turn.


           Main attributions:

Market research
Product police
Packing
Price administration
Propaganda and promotion
Merchandising
Distribution channels
International relationship

Depending on the size of the company it is possible to include on sub-area of
“MARKETING RESEARCH” that will be in charge of collecting, buying, analyzing the
information regarding the company, competitors and environment that will support the
Marketing decisions of the company.




3
    Marketing Internacional para Brasileiros – Luiz R.Carnier – Aduaneiras
                                                   HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                     GILBERTO CAMPIÃO
                                                                                              PAGE. 9
SUGGESTED POSITION               OF THE        EXPORT       DEPARTMENT           IN YOUR
COMPANY


               PRESIDENT


                                                         EXPORT
               DIRECTORS                                 DIRECTOR



                                                 SALES              ADMINIS            MARKETING
                                                                    TRATIVE
               MANAGERS



                                                 SALES                                 RESEARCH
                                                 AGENT



The export department should be directly linked to the presidency of the company or
subordinated to its. This will avoid the initial problems regarding the fixation of the export
culture and the inevitable comparisons between the domestic market that can create barriers
and difficulties in the process of the company internalization.

The new department will centralize all efforts of the company in the international arena.
The good performance of your department will create the company image in the overseas
marketing and will develop the necessary basic conditions of the success of your company
in the International Environment.

It is very important to work intensively with the other departments of the Company.
Exports is a group work, there will be an intense change of information and share of
attributions among the production, logistics, finance, R&D and other departments of the
company. It should be stimulate an intradepartmental integration among all areas, in one
main body, in order to sell and develop the company strategies.

There is a rule in the export efforts “ DO NOT WAIT FOR QUICK RESULTS”. Your
company should dispute space in very competitive markets, where there are a infinite
number of companies already established. The results will only appear in the Middle Run
(At least 06 months).


                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                      PAGE. 10
         EXPORT’S OPERATIONAL FLOW


 ASK FOR THE           SEND L/C              SHIPPING
 SHIPPING              INSTRUCTION           PRE BOOKING
 INSTRUCTION


QUOTATION                                          CLIENT´S                SHIPPING                 AFTER
TO CLIENT         ORDER                            PERIODIC                CONFIRMATION             SERVICE
                  CONFIRMATION                     STATUS ORER



                                                            FOLLOW-UP
         PRODUCTION                                         CONTROL DOCUMENTS
         ORDER                PRODUCTION
                              SCHEDULE                      VALIDITY, QUANTITIES,
                                                            INSPECTIONS, TESTS AND
                                                            DO GENERAL FOLLOW-UP


QUOTATION
REQUEST




     MAIN PURPOSE:

      CONTROL PRODUCTION CHAIN
      ORDER TRACKING
      QUALITY SYSTEM MAINTENANCE
      KEEP HIGH QUALITY OF SERVICE
      KEEP WHOLE VISION OF THE
       PROCESS
      PROFESSIONAL APPROACH




         Description

         1) Quotation Request
         The Order flow will start when the potential client send to your company their request of
         quotation. This order will receive a number that will be the same until the end of the order
         process.



                                                   HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                     GILBERTO CAMPIÃO
                                                                                             PAGE. 11
2) Quotation to client
Your company should answer the request of quotation very quickly. This will show
professionalism and interest of your company.
The quotation should be sent in standard form and should contain validity.

3) Order confirmation
It will be send an order confirmation to the client, as soon the deal is closed.

This confirmation will consolidate all order’s details. Since the request of quotation until
the Order Confirmation is common the negotiating and change of several items of the
original proposal.

4) Production order
The production will be scheduled just after the credit approval (by the credit area, payment,
Bank guarantee etc).


5) Production Schedule
The production responsible will schedule the production based on your industrial structure
(production constraints, priorities, start ups etc) and validities (credit documents,
agreements etc)

6) Shipping Instructions
We suggest sending to your client a form to be filled up. This form will give instructions to
your Operational Department. In this form will be given information about the Export
documents issue, shipping details, packing requests etc

7) Letter of Credit instructions
In operations supported by Letter of credits, the export department should send to the client
a form where the importers will find details how to open their Letter of credit. This will
avoid unnecessary amendments in the letter of credit.


8) Shipping Pre Booking
The Pre booking will guarantee space in the vessels and aircrafts. This pre booking should
be in line with the production schedule and the documents validity.


9) Order Status
Your company should keep their clients updated about their shipment. This can be done
“on line” through your web-site or through a form that can be sent to your client regularly.




                                            HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                              GILBERTO CAMPIÃO
                                                                                      PAGE. 12
10) Follow Up
The person in charge of the operational area should take care of the order flow, validities,
production etc.

11) Shipping Confirmation
The shipping confirmation should be sent to the client as soon you receive the shipping
details. In this shipping confirmation will be reported the final details of your shipment
(quantities, name of vessel, date of shipment, transit time etc)

12) After Service
This after service will follow up the goods until the clearance at the destiny. It will be
controlled the tenure dates, courier tracking, transshipments, delays etc




                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                    PAGE. 13
AREA STRUCTURE- CRITERIA TO SELECT YOUR KEY PARTNERS4

How to contract a Customs Broker

Exporting in Brazil is still very bureaucratic. It is necessary a lot of clerical jobs and
somebody in the Port/Airport area to clearance the goods. This partner can be in charge of
these responsibilities. Delays in goods shipping and remittance of Export documents can
damage your image and can cause financial losses to your company.

Please find below a basic checking list that can help you to hire your Customs Broker

      1) Knowledge and Background
      Our suggestion is to hire a professional with experience in your product. He knows
      better the potential problems that can occur in your shipments.

      2) Financial Stability
      Your Customer Broker should be financial stable, with very good financial health. They
      will be dealing with high amounts of your money and you should be aware about their
      financial situation.

      3) Low Employee turnover
      This aspect shows that there is knowledge retention, in other words that its staff, in
      theory, is more trained and prepared to give to your company service with quality.

      3) Performance
      Results versus service fees. You should choose your Customs Broker based on results
      not in costs.

      4) Operational Structure
      You should analyze the physical structure of this partner. They should have good
      installations (office, location, people and management).


How to contract Cargo Broker

The Cargo Broker will be responsible for quoting the freights and manage the shipment
details.

It will be possible to use the same criteria that you use to choose your Customs Broker

How to contract your Warehouse

You should hire a warehouse to receive, warehouse and stuffing the goods that will be
shipped abroad.
It will be necessary to adopt some criteria to choose the best place.
4
    Guia Prático do Exportador – Nicola Minervini – Makron Books
                                                 HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                   GILBERTO CAMPIÃO
                                                                                           PAGE. 14
First of all it will be necessary to visit the warehouse and check its location and structure.

You should verify the quality of the Warehouse’s pavement, security, roof quality,
equipment, person in charge, reception, roof height, illumination and number of shifts.

The warehouse should have conditions to receive several containers and trucks at the same
time.

Your goods should be stocked in a clean, dry, dustless, daylight/rain protected place, in
order to guarantee your product quality.

Some products need special equipments like cooled storage, truck docks, specific software,
security controls etc

Besides the physical structure, it is important to check the background of their employees.
There are warehouses that are experts in shipment in bulk, electronics devices, perishables
etc

How warehouse charge:

-Per Space – the stocked goods can be paid per period. This period can vary per day,
fortnight or month.

-Insurance – per period. Value will depend on the goods characteristics, term and value.

-Collect and delivery Containers– the warehouse can collect the container at the Shipping
Warehouse and delivering it at the Port’s dock.

How to contract your Bank

Your bank will be responsible for the negotiating the exports documents and/or finance
your company.

Bank mistakes can cause losses of clients and money expenditures.

Your Bank should be structured to give very good services associated to reasonable costs.

       Checking list:

International Tradition
Well-trained staff
Services quality
Structure to check and send the documents quickly to your client’s bank
Services of collecting unpaid invoices
Structure to help you to analyze your client’s risk.
International Branches
                                            HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                              GILBERTO CAMPIÃO
                                                                                        PAGE. 15
Competitive fees
Wide line of credit options to finance your exportations
Very good international rating

How to contract your sales agent

Your agent will represent you Abroad.

This is a key partner for your department. They will be responsible for the sales and for the
pre-sales and after sales efforts. The buyer is more comfortable when they deal with a
person or company of their own country. In some cases the use of a local agent is law
enforcement. (If you want to export food to USA is necessary to have a local agent to
represent you in the Customs Service)

These agents will receive commissions upon each sale. The commission is free negotiated
between the parts, but the Market adopt the following commission levels:

From 2 to 5% to commodities products
From 5 to 7 % for intermediaries products
From 6 to 10 % for electronic and machines

The agent should have a good physical structure, background in your area and if possible
they should have already a portfolio of clients.



       Checking list

-International knowledge
-Market knowledge
-Proficient in a foreign language
-Technical knowledge
-A lot of experience in the export area.
-Experience in similar company or products.
-To have already a “portfolio” of international clients
-Strong operational knowledge
-Correct business attitude
-Portfolio of clients




                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                     PAGE. 16
IS YOUR PRODUCT AND COMPANY PREPARED TO GO ABROAD?


YOUR COMPANY
Your company should understand that EXPORTATION is more than TO SELL ABROAD.
The High management should understand that exportation is a strategic tool for your
company as a whole5, because:

      a) Your company will access strong currency (US Dollars, euro etc ). Companies that
         import or have debt in strong currencies use the exportation as a natural hedge for
         these operations.
      b) Reduce its vulnerability in the domestic market. Brazilian Market has its ups and
         downs and companies can use their international operations to balance their results.
      c) Make a better use of the company production capacity
      d) Lower fixed costs through an increase of production (the reduction can be reflected
         in the final price or increase in the profit margin).
      e) Pay less duties (fiscal engineering). There are fiscal incentives to export. These
         incentives reduce the tributary weight
      f) Cheaper Lines of credit. Normally There are credit incentives or special lines of
         credit for export companies.
      g) Have access to new technologies and foreign investments
      h) Creation of international image.
      i) Competitiveness improvement
      j) Seasonal reduction

YOUR PRODUCTS
The products that you want to export should have “QUALITY”, that means that your
company should be able to produce uniform goods, without defeats and that work as per the
consumer’s needs. There are markets with “High”, “Average” and “Low” quality, but
despite of the required level, your product should be uniform and produce in the client the
minimum wanted satisfaction when they buy and use your product.

The information that the International Market is only for VERY GOOD QUALITY is not
true; several times we were discouraged by some buyers that want minimum price with the
maximum quality.

Your product should fulfill the consumer’s needs. It means you should know very well the
market niche and you should produce and promote your product as per these Market’s
requirements.

If you work for a big company you can contract a International Consultant Company to
help you to sell your products abroad (to make research, marketing plan etc ), but if you
work in a small company without financial resources you should do the job yourself. Firstly
you should verify if your competitor is exporting, to what countries and in at price’s levels,

5
    Comércio Exterior – Informe B.Brasil – Edição Especial
                                                  HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                    GILBERTO CAMPIÃO
                                                                                            PAGE. 17
these information is not difficult to find out. You can raise this information in Associations,
friends, ex-employees etc.

If your competitors are exporting, this can be a good indication that you can also export.
The first recommendation is starting your export efforts in countries that already know our
country.

Compare your prices and quality with your competitors that already export. If your
company has similar products and prices to those competitors, this will be a confirmation
that you can export, then go ahead with your export plan.

You will find below a charter with a logical flow that will help in your Market analysis6:




6
    pg. 25 – Foreign Market Entry Strategies – Franklin R. Root
                                                   HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                     GILBERTO CAMPIÃO
                                                                                             PAGE. 18
GO OR NOT TO GO
OUT....

                                        Do we have products that       NO
                                        can probably be marketed
                                        abroad ?

                                                            yes

                                        We have interest to go         NO
                                        abroad ?

                                                            yes


                                        Prelimary screening
                                                                       NO
                                        indicate potential target
                                        country ?

                                                          yes

                                        Does secundary data            NO        Continue to
                                        analysis indicate high sales             explote the
                                        potential ?                              domestic
                                                                                 market
                                                          yes


                                         Do primary(field) data        NO
                                         support secundary data?

                                                            yes
                              NO
            Redesign Entry              The adopted entry mode is
            Mode                        the most appropriate mode
                                        to achieve our purposes?

                                                         yes

                               NO
             Redesign                    Is our marketing plan the
             Marketing Plan              most appropriate, given our
                                         resources and objectives?


                                                            yes
                               NO
              Delay Entry                Should we enter the foreign
                                         market now?

                                                            yes


                                            Operations


                                                       yes
                                   NO
                redesign                  Is our performance                       Withdraw
                                                                        NO
                strategy                  satisfactory?


                                                      yes

                     YES
                                                                            NO      Stay with a
                                          Should We investigate
                                                                                    single market
                                          other markets?
                                        HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                          GILBERTO CAMPIÃO
                                                                                               PAGE. 19
       Analyze your product

The ideal is to sell abroad the same product that you produce domestically, this will
represent production savings, but your company should be ready to develop or adapt their
productions as per the clients needs. The Export Department should work in very well
consonance with the Production and R&D area.

The new exporters should try the first exportations to less sophisticates markets or with
similarities with our domestic market, which in thesis will need less product adaptations
and investments in new equipments.

Choose the products with more International Potential. Start export in small quantities, so
you can test your company, partners (freight forwarders, Banks, Customs Brokers etc) and
the importer.

In the market analysis you should answer at least the following questions:

           a) Does your product have unique characteristics?
                      Peculiar quality?
                      Special appeal?
                      Lower price?
                      Can be adapted to meet the needs of the foreign market?
           b) Is your delivery time shorter than the competitors?
           c) Is your company in a position to keep consistent standard quality?
           d) Is the company’s production capacity large enough to meet the demands of
              both domestic and foreign markets?
           e) Is your product produced as per the target country law regulations?
           f) Who are your competitors?
           g) What are the best practices of the Market?
           h) Is there any reprised demand?
                    Is a stable or crescent demand?
           i) The required investments would be excessive?
                    Is it necessary to change your packing or product?
                    Is it necessary to change measurement unit or electric system?
                    Is it necessary any technical assistance?
                    Is it necessary training the local people?
                    Is it necessary to keep local inventory for replacement?
                    Is it necessary to prepare manuals in the local languages?
                    Your trademarks and patents are protected?
           j) Are the negotiated prices firms or variables?
           k) How is the country potential?
                    Are the restrictions for importation too great?
                    Does the country have stable economy?
                    Does the country have stable politic environment?
                    Does the country respect international rules?
                    Is there any commercial agreement?
                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                    PAGE. 20
                      Are freight prices too high?
                      Is our product subject to quotas?
                      Is our product subjected to any country or law restriction?


Analyze if the Market Potential justify the necessary changes in your product or industrial
plant.

The questions above will be answered after a market research 7, that can be done using
secondary data and in loco analysis.

Your research plan will be shared in 04 main steps:

        DATA GATHERING:
General data (country size, population, history, main cities etc)
Participation about the national product x imported product
Buyer behavior, distribution channel, seasonality
Historical antecedents and statistics about product consumer, market trends in medium and
long term and the influence of similar products
Prices and presentation of the consumed product
Local government interest to develop domestic production and new potential barriers to
entrance of similar products
Product needs regarding quality inspection, certifications etc
Buy product of your competitors (reverse engineering)
Packing studies (transport and promotion)
Tranport alternative from Brasil to the country
Importation duties and other applicable duties to foreign products and to the domestic
products
Main foreign suppliers and tariff treatment (aladi, mercosul etc)
Local legislation about trademarks and patents

         INTERPRETATION

Analyze the data and verify if the country meet the minimum conditions for further analysis
and investments.

         PROSPECTION

You will gather primary data about the market. This can be done through international
travels, participation in International Fairs, Missions, hiring international consultants etc.

         PREPARATION OF THE PLAN

Prepare your strategic plan.

7
    Marketing Internacional para Brasileiros – Luiz R.Carnier – Aduaneiras

                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                      PAGE. 21
It is necessary to keep in your mind that each country has its own needs. You will prepare
the publicity, catalogs, fair participation etc as per your market study.


Our recommendation is starting to work with few countries. Avoid working with several
countries at the same time, this will increase only your expenses in research (without
focus), and at the end will probably decrease your chances of identifying an important and
profitable niche to your product.

Choose the target country and research demographic information, economics, historical,
commerce statistics etc. All information will be important. Part of this information is
available for free in the Internet or in Chambers of Commerce. It is worth to start reading
newspapers and magazines of the target country. You also recommend you to start visiting
the Chamber of Commerce or Representatives Associations of the country that you want to
export. These visits will put you updated about the country reality and it will put you in
contact with key persons that can help you in the planning and implementation of your
market plan.

Before any market effort in the target market, it is necessary to know the local and
international competitors and the main rules of importation. Study the market, first the
client and after the product. (Demand perspective).

You should analyze the product (variety, quality levels, legislation regulation, packing etc)
and the competitor market strategies. You should share the market in segments and check
in what segments you will be more competitive.

We suggest you to work in countries, where you can learn with the lowest investments, if
possible in countries close of Brazil (less logistics expenses) and with the lowest cultural
difference as possible. Try to start with countries with COMMERCIAL AGREEMENTS
with our country, because your product will be more competitive upon the international
competitors.

You should see the first exportations in a learning perspective. (no immediate profits)

You should eliminate countries with excess of commercial and legal barriers


STRATEGIES OF MARKET ENTRY MODES8

The strategy of entrance of new markets will depends on of each product, competition
characteristics, buyers and financial resources of your company.

Companies with few exportation experiences look for strategies with small investment and
risk.

8
    Foreign Market Entry Strategies – Franklin R.Root
                                                   HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                     GILBERTO CAMPIÃO
                                                                                             PAGE. 22
DEGREE OF RISK
LOW                                  MODERATE                            HIGH
Indirect Exportation                 Independent agent                   Local Company
                                     Distributor                         International direct
                                     Direct Sales                        investment and acquisitions
                                     Technology Sales
                                     Contractual agreements
                                           Franchising
                                           Foreign licensing
                                           Subcontracting
                                           Turnkey´s
                                           Management


Indirect Exportation

Low risk – low return

In this case you will sell your product to a TRADING COMPANY that will resell it abroad.
In this kind of operation the Trading Co will take all risks.(commercial and financial)

Your company will not have any contact with the final importer; sometimes you will even
know the name of the importer or country of destination. In this case your company will
learn very little about the needs of the client. The Trading Co retains all knowledge about
the market and client. Your position regarding the client is very vulnerable and you can be
discharged very easily.

In Brazil the indirect Exportation has the same fiscal benefits of the direct exportation9 and
for small companies without structure or production volume is a good way to sell abroad
with the minimum risk and investment.


                                        Trading Co



                                                                Final
        Your                                                    Client
        Company




9
    Comércio Exterior – Informe B.Brasil – Edição Especial
                                                  HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                    GILBERTO CAMPIÃO
                                                                                              PAGE. 23
Independent Agent

They did not buy and resell; they only represent your company in the target market.

This Independent Agent will receive its commission only if the business is closed.

Your company will take all finance and product risks. The agent only will represent you in
the market and they will intermediate the operations as per your requirements.


                                                                          Final clients

     Your                       Independent
     company                    Agent
                                Intermediate
                                the operation




                                Direct shipment


Normally it is signed on agreement between your company and this agent. In this
agreement is defined the geographical area and the performance that is required from that
agent.


Distributor

They can be exclusive or not. The Distributor will import your products, store and sell
them to their final clients. This distributor will import the goods in quantity and this scale
will allow them to reduce the costs of transport and product management.

Your company will export directly to that Distributor and take all risks regarding this
operation (financial, politic, commercial).




         Your                     Distributor
         company



                                                     Final clients


                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                      PAGE. 24
Direct Sales

The goods are sold directly to the final client:

-Boutiques
-Specialized Shops
-Department Stores
-Small Shops
-Supermarkets
-End Consumer
-Manufacturer, because your product will complete its product (spare parts, raw material
etc)

In this case, your company should know very well its international client. Depending on the
kind of client is necessary to change and adapt your product approach.


       Your
       company



                                 Final clients


This kind of client will need more support of your company. It is necessary to invest in
local structure to give the minimum required services to those clients. Your client can asked
for just in time delivery, delivery in small lots, maintenance, people to help them to replace
the goods etc.

Local company
In some situations is necessary a Direct Investment in the country

This structure will be in charge of the importation of the goods, storage and direct
distribution to the final client. The local structure will give to your company advantages
upon the international competitors and increase the confidence in your company regarding
your product and company.

Sometimes the investment in a local structure is a mandatory condition of the Local
Government.

       New company
       Your company can start a new company since the beginning. It will be necessary
       investment to set up the company and hire local people.

       Buy a established company
                                            HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                              GILBERTO CAMPIÃO
                                                                                      PAGE. 25
       Your company can buy an established company in the target market. Your company
       will start the operation with a structure already known and tested and sometimes
       with a good portfolio of clients.

       Joint venture
       Your company can become a partner in an established company. Your company will
       have access to the market through this partner. Sometimes this is compulsory in
       some countries (like China).


Technology sales
This is also a kind of exportation. You will increase your revenues and company’s
exposition in the International Market.

In this case, your company will transfer to a foreign company part of its technology
knowledge , receiving royalties. Some cases this negotiation is restricted to the use of the
trademark or product patent. This is a easy way to penetrate new markets with relative
security.


Other Contractual Entry Modes
      Contracting manufacturing – subcontracting

It is a cross between licensing and investment entry. In contract manufacturing, an
international firm sources a product from an independent manufacturer in a foreign country,
and subsequently markets that product in the target country or elsewhere. The
disadvantages of contract manufacturing resemble those of licensing. It may be difficult or
impossible to find a suitable local manufacturer. Once a manufacturer is found, substantial
technical assistance may be required to bring him up to the desired quality and volume
levels, and to keep him at those levels. Finally the international company runs the risk of
creating a future competitor.

       Turnkey’s construction contracts
Obligate the contractor to bring a foreign project up to the point of operation before it is
turned over to the owner. A further step is the contactor’s obligation to provide services.
Such as management and worker training, after construction is completed in order to
prepare the owner to operate the project.

       Management contract
An international management contract gives a company the right to manage the day-to-day
operations of an enterprise in a foreign target country. Normally this kind of contract is
limited to ongoing operations.

         Franchising
 It is a method of doing business wherein a franchisor licenses its trademarks and methods
of doing business in exchange for a recurring royalty fee. The Franchisee will receive from
the Franchisor support to manage its business. There will be an agreement defining the
                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                    PAGE. 26
responsibilities of each part and the form of payment of the use of the trademark and/or the
business methodology (the best example is practice is the fast food restaurant
MacDonald’s)


OTHER ENTRY MODES

-Sales Through Internet
Actually this is a variation of DIRECT EXPORT, which sales are done by the WEB

This kind of exportation is perfect to products with low weight and small values. Products
with those characteristics can be sent easily by airmail and paid by credit cards.
The popularization of the Internet, the facilitation of the payment through credit card and
the efficiency of the international couriers are ingredients that can help your company to
sell your product worldwide. To sell through Internet did not ask for huge investments and
the range of potential clients is very big.

Export’s Consortium
This is a good and inexpensive way to promote and sale your product abroad. The
Consortium is an association of Companies of the same or complementary segments that
market their products together, sharing the costs.

They can be:
PROMOTIONAL CONSORTIUM - each company produces and sells its products. The
companies participate together in catalogs, fairs and missions. The cost is shared among the
associated companies

SALES CONSORTIUM - the sales are done through the consortium. They can adopt a
single trademark and produce the same product, sharing the production among the
companies. The consortium can finance the installation of “show-rooms” abroad,
international offices, warehouses etc. The strategy is to share costs and maximize the
results.

It is possible to have support of governmental agencies that can share with them the costs of
promotion and investments in infrastructure abroad.


COMBINATION OF STRATEGIES
There is no cake receipt, each company will analyze the situation and the strategy will be
done as per each case. Your company can work some countries using the strategy of
INDEPENDENT AGENT and in others they can use an EXCLUSIVE DISTRIBUTOR or
other Entry Modes.

For each strategy there will be risks and benefits. HIGHER THE RISKS, BIGGER THE
RESULTS.


                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                     PAGE. 27
TOOLS TO PROMOTE YOUR PRODUCTS ABROAD 10:



       a) BUSINESS LIST
          Keep your company name in business lists (yellow pages, sector lists etc). The
          greater part of these lists has already its web version, so your company name will be
          available worldwide. Your company should have WEB-Page and ELECTRONIC E-
          MAIL to facilitate the contact of potential importers.

       b) INDUSTRY ASSOCIATION
          The importers used to search for new suppliers in the respective industry
          Associations. These Associations have support services for exportation, as well.
          (Consultants, missions, fairs etc)

       c) STUDY GROUP
          You should participate in Technological Forums. The participation of your company
          in the discussions can give visibility to your company. (Internet – Conference)

       d) PUBLIC RELATION
          The journalists have difficult to find out companies and people to illustrate their
          articles and news. The mention of your name in their articles can be paid or free of
          payment. This can give to our company more visibility.

       e) SPECIALIZED MAGAZINES
          It’s worth to put an add in this kind of magazines. It is read for people specialized in
          your segment.

       f) PARTICIPATION IN INTERNATIONAL FAIRS
          It is excellent opportunity to show your company and product to potential clients.

       g) GOVERNMENT AND PRIVATE AGENCIES FOR EXPORTATION
          SUPPORT
          They have representation in the majority of countries. They can give support and
          make surveys to your company. Get in touch with the nearest Chamber of
          commerce or Government Foreign Trade Department.

       h) INTERNATIONAL TRAVELS
          It is a good opportunity to meet people, competitors, suppliers, and potential clients

10
     Guia pratico do exportador – Nicola Minervini/Informe B.B. Comércio Exterior
                                                  HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                    GILBERTO CAMPIÃO
                                                                                            PAGE. 28
   i) WEBSITE
      Your website can be your business card to the market. It can be used to show your
      company and products.

   j) PROMOTIONAL MATERIAL – Should be prepared by professionals.
      Catalogs, lists of price, mailing list, cd-cards, video, business cards



TOOLS OF RESEARCH

www.braziltradenet.com.br - this is the web-page of the Brazilian Foreign Affair
Department. In this site you will find information about countries, legislation, name of
importers, studies of market, you can promote your product etc


www.exportnews.com.br - in this site you will find news about the International Trade


www.portaldoexportador.gov.br - you will find statistics of international trade, articles,
news etc

www.guiatelefonica.com - you will find yellow pages of several countries and you can
research name of potential clients

www.google.com -
www.yahoo.com
www.altavista.com
This research tool is helpful to find out name of potential buyers, competitors etc


www.intracen.org - this is the official site of International Trade Chamber. You can find
good information, statistics, markets studies etc

www.sebrae.com.br - you can find all initiatives of the SEBRAE regarding the international
trade.


www.bb.com.br - you can find information about financing and operations supported by the
Banco do Brasil.

www.worldbank.org -   you can find information about project and international Bids.




                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                       PAGE. 29
www.undp.org - Inter-agency service unit (APSU)11. This is one agency of United Nations
Organization. They have a budget of more than 11 billions/year and your company can
participate in their INTERNATIONAL BIDS.



BASIC REMINDERS FOR BEGINNERS12:


          Exportation is 1% inspiration and 99% transpiration

          The export sector should be aggressive to gain space in the International Market

          The results of exportation will appear only after a meticulous planning

          Always plan before acting

          Have always a person in charge of exportation in your company

          Learn to make your export price (fiscal incentives etc)

          Sometimes is better not to sell

          Always answer your messages. Avoid delays in answering

          Take in mind that the profits will appear only in the long turn

          Avoid making your own documents. Let this task to professionals

          Never sign contract without consulting one local specialist

          Export asks for continuation. Reserve part of the production for exportation

          Never consider exports as escape valve to domestic crisis

          Be prepared to invest in the foreingn market. It will be necessary market research,

           careful search of sales agent, knowledge of markets etc

          Put a professional ahead of the department. The export department needs

           dedication, not part of the time of one director, secretary etc

11
     Marketing Internacional para Brasileiros – Luiz R.Carnier – Aduaneiras
12
     Comércio Exterior – Informe B.Brasil – Edição Especial
                                                   HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                     GILBERTO CAMPIÃO
                                                                                             PAGE. 30
   Avoid working with amateurs.

   Help your sales agents to develop the market strategies

   Not forget that the media, propaganda, sales promotion should be done in

    accordance and harmony with the target market.

   For a good product, there will be always a good market

   Keep a seriously commercial and moral behavior

   Do what you promised

   Reply quickly the messages received from abroad

   Do not prepare samples. Send goods from the regular line of production

   Accomplish the shipping and delivery times

   Keep the quality conformity

   Pay sharply the agent’s commission.

   Do not wait for quick results. Exportation needs efforts of medium and long turn.

    Consider these efforts as INVESTMENTS.




                                      HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                        GILBERTO CAMPIÃO
                                                                                PAGE. 31
EXPORT DOCUMENTS


                       QUOTATION
TO:
                                    QUOTE DATE:
                                    YOUR REQUEST NO.
SHIP TO :                           OUR QUOTATION NO.
                                    THIS QUOTATION IS VALID ONLY
                                    FROM          TO :


DELIVERY DATE    DELIVERY VIA       FOB                     TERMS OF
PROMISED:                                                   PAYMENT:




ITEM        ORDERED DESCRIPTION              UNIT     UNIT           TOTAL
            QUANTITY                                  PRICE          AMOUNT




SPECIAL NOTES:                         DATE:        APPROVAL
                                                    SIGNATURE:



COUNTRY OF ORIGIN : BRAZIL             THANK YOU FOR REQUESTING A
                                       QUOTATION FROM US. WE ARE
PACKING :                              PLEASED TO PROVIDE YOU WITH
                                       THIS INFORMATION. WE THANK
                                       YOU FOR THE PAST BUSINESS,
                                       AND WE LOOK FORWARD TO
                                       SERVING YOU IN THE FUTURE.




                                HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                  GILBERTO CAMPIÃO
                                                                          PAGE. 32
                         COMMERCIAL INVOICE

DATE:                                          COMMERCIAL INVOICE No.

SOLD TO:
ADDRESS:

PAYMENT CONDITIONS:

TRANSPORT:                                     SALES CONDITIONS:

PORT OF LOADING:

PORT OF DESTINATION:

TOTAL PACKING:         NET WEIGHT:                      GROSS WEIGHT:




QTY        DESCRIPTION OF GOODS                U. PRICE          TOTAL PRICE
           Descrição detalhada das
           Mercadorias a serem enviadas           US$                   US$




MARKS AND NRS.:




                              ------------------------------------------------------------------
                                           COMPANY NAME + SIGNATURE




                                    HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                      GILBERTO CAMPIÃO
                                                                                      PAGE. 33
DATE:                                          PROFORMA INVOICE No.

SOLD TO:
ADDRESS:

PAYMENT CONDITIONS:

TRANSPORT:                                     SALES CONDITIONS:

PORT OF LOADING:

PORT OF DESTINATION:

TOTAL PACKING:         NET WEIGHT:                      GROSS WEIGHT:




QTY        DESCRIPTION OF GOODS                U. PRICE          TOTAL PRICE
           Descrição detalhada das
           Mercadorias a serem enviadas           US$                   US$




COUNTRY OF ORIGIN : BRAZIL
VALIDITY :


MARKS AND NRS.:




                              ------------------------------------------------------------------
                                           COMPANY NAME + SIGNATURE




                                    HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                      GILBERTO CAMPIÃO
                                                                                      PAGE. 34
                   PURCHASE ORDER
TO
                                          CUSTOMER NO.
                                          TERMS
SHIP TO                                   SALES
                                          SHIP WEEK OF
                                          FOB


ORDER NO.              DELIVERY VIA                 ROUTING



            PLEASE SHIP THE FOLLOWING AS SPECIFIED
ITEM   QUANTITY   DESCRIPTION                   UNIT      UNIT      TOTAL
       ORDERED                                  COUNT     PRICE     AMOUNT




                                              TOTAL AMOUNT


SPECIAL INSTRUCTIONS:           DATE      APPROVAL SIGNATURE


                                PURCHASER SIGNATURE


                                TITLE




                                HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                  GILBERTO CAMPIÃO
                                                                          PAGE. 35
                          PACKING LIST

TO:

ADDRESS:

P.O. NO. :                      OUR REF. :
INVOICE DATE :                  INVOICE NO. :
VESSEL/ FLIGHT:                 B/L/AWB NO.:
SOLD TO :                       SHIP TO :


MARKS & NO. DESCRIPTION   NET WEIGHT         GROSS            MEASUREMENT
       OF GOOD                               WEIGHT




TOTAL PACKAGE(S):

REMARKS :




                                ----------------------------------------------------
                                AUTHORISED SIGNATURE(S)




                             HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                               GILBERTO CAMPIÃO
                                                                              PAGE. 36
COMMERCIAL LETTERS:

Model 1

Dear Sirs (Madams),

The (name of your company) manufactures (product names) and already exports to
major buyers in (country names). We are interested in expanding our trade to firms
in your country and were informed that your company imports the line of products
that we produce.

We are enclosing a copy of our brochure and price list for examination, and would
be pleased to forward samples of any article that may interest you.

Thank you in advance for your attention,

Model 2

XYZ is a major manufacturer of .....................articles in Brazil. We have been
exporting our products to over ........countries during the past five years.

XYZ’s products are top quality, contemporary design and very competitively
priced.


We are enclosing a brochure and price idea for your evaluation. However, should you be
interested, we could provide a special quotation based on your own selection of product
mix and estimated quantities.

Later this month we will be in the United States visiting prospective customers, and we
would be glad to discuss personally with you the possibilities of doing business together.

Should you be interested in meeting with us during our visit, please let us know which
dates would best suit you and we will confirm an appointment by return.

Looking forward to hear from you we remain,

Yours Sincerely,

      Spanish

Model 1

Estimados (as) Señores(as)

                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                     PAGE. 37
Nuestra industria, (COMPANY NAME), produce (PRODUCT NAME), y exporta ya a los
mayores compradores de (COUNTRY NAMES).

Estamos interesados en extender nuestro comercio a firmas de su país, y nos han informado
de que su compañía importa artículos de nuestra línea de producción.

Sometemos a su consideración nuestro folleto y lista de precios, quedando a su entera
disposición para el envío de muestras de cualquier artículo que pueda interesarles.

Agradeciendo anticipadamente su interés, reciba un cordial saludo,


IMPORTER´S ANSWER :

    English

Dear Sirs (Madams),

We acknowledge receipt of your letter of (INFORM DETAILS OF THE
MENSAGE), in which you indicated your interest in our line of products.

(ANSWER SUGGESTIONS):

   a) We will be pleased to send samples of those articles that interest you.
      They will be dispatched immediately by (COURIER NAME) and
      should arrive within (DELIVERY TIME).
   b) We hope these samples will meet your requirements and look
      forward to further business dealings with you.

   (or)

   c) With reference to your query concerning prices, we regret to inform
      that rising production costs prevent us from lowering prices by more
      than... per cent. Further reductions may be possible depending upon
      the volume of future business with you.
   d) We will be waiting for the confirmation of your interest.




   Sincerely,

               Spanish

   Estimados (as) Senhores (as),

   Acusamos recibo de su carta del día ((INFORM DETAILS OF THE
   MEN AGE), en la cual nos indica su interés en nuestros productos.
                                         HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                           GILBERTO CAMPIÃO
                                                                                   PAGE. 38
(ANSWER SUGGESTIONS):

  a) Tenemos la satisfacción de anunciarles el envío de las muestras de
     los artículos en los cuales están Uds. interesados, que serán remitidos
     inmediatamente por ( COURIER NAME) y llegarán a su compañia
     dentro de los días (DELIVERY TIME).
  b) Esperamos que las muestras cumplan satisfactoriamente con sus
     expectativas y especificaciones y favorezcam el inicio de relaciones
     comerciales entre nuestras compañias. (ou)
  c) b) Con referencia a su consulta sobre los precios, lamentamos
     informales de que el constante aumento de los costos de producción
     nos impiden conceder rebajas superiores al ... por ciento. No
     obstante, dependiendo del futuro volumen de negocios con Uds. tal
     vez sea posible ofrecerles mayores descuentos.



  Esperamos la confirmación de su interés.



  VISIT NOTICE

              English

  Dear Sirs (Madams),

  The (COUNTRY NAME) manufactures (PRODUCT NAME) and
  already exports to major buyers in (COUNTRY NAMES).

  We are interested in expanding our trade to firms in your country and,
  for this purpose; we plan to visit buyers of these articles in your country.

  We shall be in (DESTINATION CITY) from (ARRIVAL DATE) to
  (DEPARTURE DATE). We hope to contact you during this period in
  order to arrange an appointment to show you our line of products.

  We enclose herewith copies of our brochure and price list.

  Thank you in advance for your interest.

  Sincerely,




                                         HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                           GILBERTO CAMPIÃO
                                                                                   PAGE. 39
          Spanish

Nuestra industria, (COMPANY NAME), fabrica (PRODUCT NAME) y
exporta ya a (COUNTRY NAME).

Estamos interesados en ampliar nuestro comercio y, a tal objeto, hemos
proyectado visitar algunos compradores en su pais.

En el transcurso de nuestro viaje, estaremos en (DESTINATION
NAME) durante los días (ARRIVAL DATE), y esperamos poder
mostrar a Uds nuestra línea de productos.

Con la presente, enviamos ejemplar de nuestro folletos y lista de precios.

Agradecidos de antemano, aprovechamos la oportunidad para saludarles.




                                      HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                        GILBERTO CAMPIÃO
                                                                                PAGE. 40
            DOCUMENTS MODELS:

               BILL OF LADING INSTRUCTIONS


O/ORDER NO.                                   VESSEL/FLY NUMBER :
Place of Loading :                            Place of Discharge:
                                              Place of Transhipment/Conection:


CARRIER :



Consignee                                           Shipper:

Address :                                           Address :




                                                                SHIPPER'S INSTRUCTIONS

Notify:

Address :

    NO. SHIPPING UNITS   TIME     DESCRIPTION OF ARTICLES       WEIGHT    RATE           CHARGES
                                SPECIAL MARKS & EXCEPTIONS




                                        FREIGHT :                        PREPAID   
                                                                         COLLECT   
Contact Person :                              Fone/Email address:        Date:



                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                       PAGE. 41
    LETTER OF CREDIT INSTRUCTIONS


DOCUMENTARY CREDIT

This letter of credit should reach us at least 45 days bofore shipment and remain valid
for negotiation in ..................until .........days after aforesaid time of shipment.

                                                                                   Page 1/2

FROM                                       :   FIRST CLASS BANK OR CONFIRMED BY A
                                               FIRST CLASS AMERICAN OR EUROPEAN
                                               BANK
TYPE OF DOCUMENTARY CREDIT                 :   IRREVOCABLE
DATE AND PLACE OF EXPIRY                   :
APPLICANT                                  :   IMPORTER NAME
BENEFICIARY                                :   EXPORTER NAME
CURRENCY AND AMOUNT                        :   L/C VALUE AND ALLOWED VARIATION IN
                                               PERCENTAGE.
AVAILABLE WITH/BY                          :   ANY BANK IN (EXPORTER´S CITY ) BY
                                               NEGOTIATION
DRAFT AT                                   :   DRAFTS AT SIGHT (     )
                                               ........DAYS FROM B/L DATE
PARTIAL SHIPMENTS                          :   NOT ALLOWED or ALLOWED
TRANSSHIPMENT                              :   NOT ALLOWED or ALLOWED
LOADING IN CHARGE                          :   NAME OF PORT/AIRPORT
FOR TRANSPORT TO                           :   FOR TRANSPORTATION TO DESTINATION
                                               COUNTRY NOT LATER THAN (LIMIT DATA
                                               FOR SHIPMENT)


DESCRIPTION OF GOODS/SERVICES

PRODUCT:

QUANTITY : AROUND

UNIT PRICE:

TOTAL AMOUNT : AROUND




                                         HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                           GILBERTO CAMPIÃO
                                                                                   PAGE. 42
SHIPPING MARKS:

TERMS ARE : ( NEGOTIATED INCOTERM)



------------------------------------------------------




                                                                                                   Page 2/2

DOCUMENTS REQUIRED (IN DUPLICATE UNLESS OTHERWISE STATED)

         COMMERCIAL INVOICES
         FULL SET OF CLEAN ON BOARD MARINE BILLS OF LADING MADE OUT
          TO SHIPPER'S ORDER AND ENDORSED IN BLANK MARKED ¡FREIGHT
          PREPAID¨ AND NOTIFY APPLICANT.
         PACKING LIST
         INSURANCE POLICY FOR 110% CIF VALUE COVERING INSTITUTE
          CARGO CLAUSES A, INSTITUTE WAR CLAUSE AND INSTITUTE STRIKE
          CLAUSE
          CERTIFICATE OF ORIGIN

PERIOD FOR PRESENTATION

          DOCUMENTS MUST BE PRESENTED WITHIN ..................THE DATE OF
          ISSUANCE OF THE TRANSPORT DOCUMENT BUT WITHIN THE
          VALIDITY OF THE CREDIT

SPECIAL INSTRUCTION :

SENDER TO RECEIVER INFORMATION :

          SUBJECT TO U.C.P. I.C.C. PUBLICATION NO. 600



                                                         HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                           GILBERTO CAMPIÃO
                                                                                                   PAGE. 43
    BANK COLLECTIONS INSTRUCTIONS

O/REFERENCE:
Y/ORDER :

In order to issue correctly our documents and avoid future problems, We are asking you to
complete the below mentioned information:

Collecting Bank: ( please complete full details – e.g. Bank, address, account, telephone
number, swift code etc )

Necessary export documents:

1) B/L or AWB or CTR in ( ) originals and (  ) copies
       Shipper :
       Consignee:
       Advising:
       Shipment from:            to :
       Goods description:
       Remarks:      ( ) clean on board
                     Freight ( ) prepaid ( ) collect
                     ( ) other

       Shipping Marks:

Shipping Company indication:


2) Commercial Invoice in (        ) originals and (        ) copies
   Remarks:

3) Certificate of origin issued by
   Remarks:

4) Packing List in (       ) originals and (    ) copies
   Remarks:

5) Inspection certificate issued by
   Remarks:

6) Insurance certificate
   Remarks:


Please confirm:


                                               HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                                 GILBERTO CAMPIÃO
                                                                                         PAGE. 44
Your phone, fax, E-mail number and contact person to send our Status of Pending Order
and our correspondence.

Transshipment allowed : ( ) Yes ( ) No
Partial Shipment Allowed: (     ) Yes ( ) No
Allowed Quantity and amount variation:
Shipment can be released right after production or only after your “green light”

Please inform special Instructions: like import license number, Product Code, Packing etc




                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                    PAGE. 45
     INSURANCE INSTRUCTONS


                                   MARINE CARGO POLICY

POLICY NO.:
ASSURED:
CLAIMS PAYABLE BY:
AMOUNT INSURED:
CONVEYANCE:

VESSEL: ____________________
FROM: ______________________
FINAL DESTINATION: ______________
ETA/SHIPMENT PORT: ___________



SUBJECT MATTER INSURED:

CONDITIONS:



Place and Date signed in

Insured in

For




---------------------------------------
AUTHORIZED SIGNATURE(S)




                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                    PAGE. 46
                          AFTER SERVICE CONTROL


TO:


O/REFERENCE:
Y/ORDER:


In order to improve the quality of our services, we are kindly asking you to answer the
following questions:


                       BAD                     GOOD                   EXCELLENT
GOODS
PACKING
EXPORT
SERVICES



REMARKS:




Many thanks,




                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                    PAGE. 47
STATUS OF PENDING ORDERS

TO:


O/REFERENCE:
Y/ORDER:


Please find below the production and shipment details from the a/m order:


Production Schedule to :
Cargo Booked on the Vessel:
Eta/: Shipment place:
Transit time :
Transshipment at:                            on:
Eta/ discharge place :

Remarks:




                                         HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                           GILBERTO CAMPIÃO
                                                                                   PAGE. 48
SHIPPING CONFIRMATION


TO:


O/REFERENCE:
Y/ORDER:


We are glad to confirm that the a/m order was shipped, as follows:

Vessel: ( or Fly no.)
Sailed from :             in:
Transshipment at:          in:
ETA/ (NAME OF DESTINATION PORT)
Goods:
Net Weight:
Gross Weight:


Attached:

Copy of our commercial invoice, Bill of Lading, Packing list and.....


Documents were sent by our Bank on:                  by courier no.
To:




                                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                            GILBERTO CAMPIÃO
                                                                                    PAGE. 49
ORDER CONFIRMATION

TO:



O/REFERENCE:
Y/ORDER:


We confirm the following sale to you on the terms and conditions set forth hereunder.


Buyer:
Payment Terms:
Transport by:
Shipment from:
Product:
Quantity:
Currency:
Unit Price:
Total Amount:
Incoterm Condition:
Packing :
Production scheduled to:
Shipment Marks:

Shipment scheduled to:
Estimated transit time:
Cargo Booked in the Vessel:


Remarks:

Find attached our collection/letter of credit instructions.


Please check if everything is in order, in case of problems send your contestation in 24
yours at last, otherwise the product will be produced as stated above.


Best Regards,


                                            HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                              GILBERTO CAMPIÃO
                                                                                      PAGE. 50
                     PRICE LIST
                  LISTA DE PRECIOS


 MONTH/MES :                                     VALIDITY/VALIDADE
  :



 PRODUCT/PRODUTO:

 PACKING/EMBALAJE:

 INTERNATIONAL PRICE/PRECIO INTERNATIONAL


 MINIMUM LOT/LOTE MINIMO:

 PAYMENT TERMS/TERMOS DE PAGAMENTO:

 DELIVERY TIME/PLAZO DE ENTREGA:




                          HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                            GILBERTO CAMPIÃO
                                                                    PAGE. 51
COMMISSION SUMMARY

Period From/To:
Payment Scheduled to :
Salesperson Name
Territory

 Date       Order #      Client           Extended      Commission %        Amount




                                                        Total Invoiced
                                          Gross Commissions Earned
                                                         Less Advance
                                                     Other Deductions
                                                      Amount Payable




                                  HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                    GILBERTO CAMPIÃO
                                                                            PAGE. 52
References

Bibliography

      O Exportador – Nicola Minervini – Makron
      Building na import/Export Business – Kenneth D. Weiss
      Marketing Internacional para Brasileiros – Luiz R.Carnier – Aduaneiras
      Global Business – 3rd edition – South Western –Michael R.Czinkota/Ilkka A.
       Ronkainen/Michael H. Moffett/Eugene O.Moynihan
      Comércio Exterior – Informe B.Brasil – Ed. Especial – jun/99




                                     HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                       GILBERTO CAMPIÃO
                                                                               PAGE. 53
CONCLUSIONS AND SUGGESTIONS


This is not a final and finished work, but only a tentative to professionalize the export area,
giving subsidies and alerting about possible pitfalls that the new entrants in the external
area can find in their way. I am open and anxious to receive your critics and suggestions.

My personal E-Mail is : gcampiao@ig.com.br




                                           HOW TO SET UP AN EXPORT DEPARTMENT IN YOUR COMPANY
                                                                             GILBERTO CAMPIÃO
                                                                                       PAGE. 54

								
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