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					                         EXPORTING
               SOME FREQUENTLY ASKED QUESTIONS

I. GETTING STARTED:
1.     How can I find out more about international trade?
       The International Trade & Investment Division of the Arizona Department of Commerce
       is a good place to start. To find out how we can assist you, contact one of our
       experienced international trade specialists by calling 602-771-1192. In print, one of the
       most comprehensive single sources on exporting is the Basic Guide to Exporting*
       published by the U.S. Department of Commerce (602-254-2907) you can also find it on
       http://www.unzco.com/basicguide/. Another excellent printed information source is the
       Guide to Doing Business Internationally a joint publication of the Tempe Chamber of
       Commerce, the Arizona Department of Commerce and the U.S. Department of
       Commerce. Copies can be obtained from any of those three organizations.
       In terms of identifying what is exported from Arizona, the Arizona Department of
       Commerce receives export statistics that describe, in dollar volume, the destinations of
       Arizona products and the types of products sold internationally.
       If you are interested in learning what events are taking place throughout the state,
       please refer to the Upcoming Events. To be put on the mailing list for this calendar or
       receive the export statistics, please call 602-771-1192.
2.     How do I start an exporting business?
       The Arizona Business Connection at the Arizona Department of Commerce (602-771-
       1196) can help by providing you with a comprehensive package of information aimed at
       start-up companies. Information and assistance in developing a business plan can be
       obtained from the Service Corps of Retired Executives (SCORE) at 602-640-2329.

II. GOVERNMENT REGULATIONS:
1.     Do I need a license to export?
       Relatively few exports require an export license. Licenses are required in certain
       situations involving national security, foreign policy, short-supply, nuclear non-
       proliferation, missile technology, chemical and biological weapons, regional stability,
       crime control, or terrorist concerns. License requirements are dependent upon an item's
       technical characteristics, the destination, the end-use, and the end-user, and other
       activities of the end-user. Depending on the type of product and the buyer and country
       to which you are selling it, you may need permission to export from the U.S.
       government. In fact, you may even need an export license if you plan to present
       technical material at an international conference.
       The need for an export license and, if required, the type of license, is dictated by the
       type of product (buttons versus super computers) and the destination (Canada versus
       Iraq). You are strongly advised to seek assistance in determining which type of license
       your product requires by contacting the U.S. Department of Commerce Export
       Assistance Center in Phoenix (602-640-2513) or the Bureau of Industry and Security


*For more information on this publication, please refer to the attached bibliography.   05/21/10
       Office of Exporter services (OexS) Newport Beach, CA (949-660-0144,
       www.bis.doc.gov). The penalty for not obtaining proper export licenses can be
       serious—fines and/or imprisonment.


2.     What other government regulations exist?
       In addition to export licensing, there are several U.S. laws of which you need to be
       aware--e.g., antitrust laws, anti-boycott regulations, the Foreign Corrupt Practices Act,
       etc. An excellent general discussion of these regulations is provided in the Basic Guide
       to Exporting.*
       Foreign governments' import regulations will vary from country to country. Many of
       them are covered in such publications as Dun and Bradstreet's Exporter's
       Encyclopedia* and the Bureau of National Affairs' Export Reference Manual.* You
       may also wish to contact the country of importation's embassy or consulate here in the
       U.S.

III. LEGAL:
1.     I have a product that I would like to patent, trademark and/or copyright internationally
       and I am considering signing an agent or distributor agreement for representation in
       another country. Where can I get information?
       Several Arizona law firms have specialists in international agent/distributor agreements,
       patents, trademarks, copyrights, intellectual property protection, etc. To contact one of
       these law firms call the State Bar of Arizona (602-252-4804 – www.azbar.org).

IV. MARKET RESEARCH:
1.     I would like to do business in another country. Where can I get general information?
       Two good places to start are the Internet and your local library. A library that is a federal
       depository will have a great deal of government publications on international subjects.
       To find the nearest federal depository library, call 1-866-512-1800 or on the Internet go
       to http://www.gpoaccess.gov/libraries.html.
       Perhaps the single most useful market research publication available from the U.S.
       government is the National Trade Data Bank* (NTDB). It contains international
       information from virtually all federal government agencies that deal with international
       issues–e.g., US Department of Commerce, US Department of State, Office of the US
       Trade Representative, Export-Import Bank of the United States, Central Intelligence
       Agency, etc. Examples of the type of information include: thousands of market research
       reports on industries in specific countries, statistics on such things as import and export
       trade, country background information, business climates in most countries of the world,
       reference books on exporting, trade leads, etc. it can be accessed for a subscription fee
       on the Internet at www.stat-usa.gov or found in local libraries. In Arizona, some of the
       libraries at which you may access the NTDB are:
               American Graduate School of International Management Library (602-978-7232)
               Arizona Department of Commerce (602-771-1192)
               Arizona State Capital Archives (602-542-4159)
               Arizona State University Hayden Library (480-965-3390)



*For more information on this publication, please refer to the attached bibliography.     05/21/10
               Arizona State University Law Library (480-965-6144)
               Mesa Public Library (480-644-2207)
               Northern Arizona University Cline Library (520-523-6805)
               Paradise Valley Community College Library (602-787-7200)
               Phoenix Public Library, Central Library (602-262-4636)
               Tempe Public Library (480-350-5500)
               Tucson Public Library (520-791-4010)
               University of Arizona Library (520-621-2101)
               Yuma County Public Library (520-782-1871)
       In addition to your local library, country specific information may be obtained from the
       relevant country's embassy or consulate in the U.S. If you are new to exporting, the U.S.
       government's        Trade        Information       Center       (1-800-USA-TRAD         or
       http://www.ita.doc.gov/td/tic/) can provide detailed information. Country desk officers at
       the U.S. Department of Commerce in Washington, D.C. can also provide you with
       extensive information on trade potential in specific countries.

2.     Which countries are the best markets for my products?
       One way to determine potential markets abroad is to consult U.S. export statistics. This
       will demonstrate where your type of products have been exported, in what quantity, as
       well as the market trends. One source is the National Trade Data Bank (NTDB)*. The
       NTDB also contains industry analysis reports and country marketing plans which
       describe potential markets in much more detail. Another source is the US, government
       Export: http://www.export.gov/market_research/index.asp.

V. MARKET PROMOTION:
1.     How can I find a buyer, agent, or distributor for my product or service in another
       country?
       Several sources exist to help you find buyers for your product or service.
       The Arizona Department of Commerce’s overseas trade offices, located in Japan,
       Mexico, Taiwan and the United Kingdom can conduct preliminary searches on your
       behalf. Contact one of the Arizona Department of Commerce’s international trade
       specialists for more information (602-771-1192). The U.S. Department of Commerce's
       Agent/Distributor Service (602-640-2513) is another good way to develop a pre-qualified
       list of potential business partners in another country. Yet another option would be to
       contact international chambers of commerce located in the U.S., or American chambers
       of commerce abroad. Import and industrial directories can be found in libraries. In
       addition, trade leads are available on the NTDB*. Moreover, you may purchase direct
       mail lists, access on-line databases at your local library, or contact trade associations in
       the U.S. or overseas (some may be found in the NTDB industry analysis reports or with
       U.S. Department of Commerce country desk officers).
       Finally, consider talking to your business colleagues and other personal contacts you
       may have that are from your targeted country or have had business dealings there.

2.     Where can I advertise my products?
       In addition to advertising in U.S. trade publications having international circulation, there
       are many ways for you to advertise your product abroad. The U.S. Department of



*For more information on this publication, please refer to the attached bibliography.       05/21/10
       Commerce's Commercial News USA* (602-640-2513) is a catalog/magazine with a
       circulation of approximately 110,000 and which contains only advertisements of U.S.
       products. Many of the U.S. Embassies have their own publications in which you may
       advertise. The Internet is another excellent medium.
       To identify foreign publications, please refer to the International Media Guide*. This
       publication lists the advertising rates for newspapers and magazines worldwide. The
       American Graduate School of International Management (Thunderbird) library (602-978-
       7232) has a copy for reference.

3.     What trade shows do you recommend for my industry?
       Within the NTDB* industry analysis reports, you will find recommendations for the best
       trade shows for an industry in a given country. Industry desk officers at the U.S.
       Department of Commerce can also recommend shows. Many of the U.S. Department of
       Commerce certified shows are listed in their official magazine, Business America* (on
       the NTDB or www.stat-usa.gov).* The Arizona Department of Commerce also works
       with Arizona industry groups to exhibit at certain, major trade shows overseas. For a
       current listing, please consult our International Calendar of Events.

4.     I would like to bid on government projects, where do I get information?
       To receive information on current foreign and domestic governmental projects up for
       bid, consult the U.S. Agency for International Development (202-712-4810,
       www.info.usaid.gov/business/), Commerce Business Daily (www.ld.com) and the
       Arizona State Procurement Office (602-542-5511).

VI. PRICING:
1.     How can I find the import duty or tariff on my product if I export?
       To determine the import duties on your products, it will be helpful for you to determine
       the appropriate classification code for your products. This code (referred to variously as
       the Harmonized System (HS) number or the Schedule B number) is applied to all
       commodities exported from the United States. The Schedule B code is a 10-digit
       number, the first six digits of which comprise the Harmonized System code.
       The correct codes for your products can be determined by consulting the publication
       Schedule B Classification of Domestic and Foreign Commodities Exported from
       the United States which is available in Federal Depository Libraries or on the Internet at
       http://www.census.gov/foreign-trade/schedules/b/#about.        Once the numbers are
       identified, your freight forwarder or the country desk officers at the U.S. Department of
       Commerce (1-800-USA-TRAD) may be able to assist you in determining the relevant
       duty. Keep in mind, however, that a customs official in another country may not agree
       with your selection of the Schedule B number and feel another best describes your
       products. If that happens, the duty rate may well change. In some countries, this may
       be avoided by obtaining a duty classification ruling in advance from that country’s
       customs officials before your first shipment.

2.     Do I need to price my product differently for export?
       Today's world of instant and free flowing communication and freer trade has brought an
       end to the days when a company could easily price their products differently for each



*For more information on this publication, please refer to the attached bibliography.   05/21/10
       market (sometimes with significant markups over domestic prices). In general, you
       should calculate your international prices as you do your domestic prices--i.e., determine
       the fixed (overhead) and variable costs for producing the product and add to it your
       international marketing expenses. Just as you should not include your international
       marketing expenses in your domestic prices, you also should not include your domestic
       marketing expenses in your international prices.

VII. GETTING PAID AND FINANCING:
1.     Is there anyone who can help me get export financing?
       Start with your banker. Your banker can talk to you about letters of credit or Export-
       Import Bank financing (http://www.exim.gov/). Letters of credit are similar to the sales
       contract between you and your foreign customer, except that the contract exists
       between your bank and your customer's bank, and is governed by a set of international
       rules. As a branch of the federal government, the Export-Import Bank's loan,
       guarantee, and insurance programs are designed to help US exporters finance their
       international sales. While there is no official minimum, transactions under $100,000
       may not be worth the required paperwork. For more information, contact your banker,
       or Export-Import Bank directly at their West Coast office in California (562-980-4580).
       Loans to finance export orders can be obtained through the Small Business
       Administration’s LowDoc loan program. Additionally they offer International Trade
       Loans and can guarantee up to $1.25 million for a combination of fixed-asset financing
       and Export Working Capital Program assistance. For details, contact the Small
       Business Administration in Phoenix (602-745-7200).

2.     How do I get paid?
       Payment terms are inevitably one of the negotiating points in any sales contract. Cash
       in advance is the easiest and safest for you. It is also the most risky for your customer
       as s/he must instruct the bank to wire funds to your account before you ship. Dollar
       denominated checks received by you in the mail will involve collection charges and
       possibly delays of up to several weeks if they are drawn on a bank in a foreign country.
       Letters of credit (described briefly above) are a secure and flexible way of mitigating
       risks for both you and your customer and are a very common means of international
       payment.

3.     What are the financial risks of doing business abroad?
       There are three kinds of financial risks:
       1. Commercial risks. Your foreign customer does not pay you, either because they do
          not have the funds or perhaps there is a contract dispute. Through insurance
          programs such as those offered by the Export-Import Bank of the United States, you
          can protect yourself against such risks.
       2. Political and economic risks. Foreign governments have, from time to time,
          restricted or prohibited commercial payments due to economic downturn or political
          instability. Some companies elect to obtain insurance from the Export-Import Bank
          and a few private vendors to cover these kinds of risks.
       3. Currency risks. This refers to the risk encountered if the exchange rate between the
          local currency and the US dollar changes. To protect themselves from having to



*For more information on this publication, please refer to the attached bibliography.   05/21/10
           monitor international currency movements, many US exporters keep their contracts
           and payment terms in US dollars.

VIII. SHIPPING:
1.     Who can help me ship my products abroad?
       There are many air express companies as well as freight forwarders who can help you
       ship your products. Freight forwarders provide export services for a fee and are also an
       excellent source of information on all aspects of shipping including country specific
       foreign import restrictions and export documentation.

2.     Are any special documents required for exporting?
       Yes. A different set of export documents may be required by different countries of
       importation. To identify which ones and how many copies of each, you may refer to the
       Bureau of National Affairs' Export Reference Guidel* (www.bna.com) or ask your
       freight forwarder. Another good reference is the Exporters' Encyclopedia* which
       provides information, on a country by country basis, on export documentation, including
       a documentation checklist.

IX. IMPORTING:
1.     How do I find suppliers abroad, or companies in another country to manufacture my
       products?
       You need to contact the relevant country's embassy, consulate or trade office in the
       U.S. Another possibility is the international chambers of commerce present in the U.S.
       Also, don’t overlook the resources of your local library which may have directories of
       manufacturers and exporters in other countries.

2.     Who can give me advice on importing?
       Many community colleges offer courses in their Business curriculum that focus on
       importing and exporting. Contact your local community college to find out more. The
       basics are also covered in a book from the U.S. Bureau of Customs & Border Protection
       entitled, Importing into the United States. This, plus other publications and on line
       information can be found on the Customs & Border Protection website at www.cbp.gov.
       For assistance with specific U.S. customs clearance issues please contact a customs
       broker or the U.S. Customs Service, Phoenix 602-914-1400 and Tucson 520-799-8348.

X. MISCELLANEOUS:
1.     How can I network with other exporters?
       Some of the ways you can meet other exporters are by attending the events listed in the
       Arizona Department of Commerce's International Calendar of Events, or contacting your
       local chamber of commerce which may have an international committee.

2.     How can I find a job in exporting?
       Neither the Arizona Department of Commerce nor the U.S. Department of Commerce
       are able to track job opportunities with Arizona exporters. However, the following



*For more information on this publication, please refer to the attached bibliography.   05/21/10
       reference directories may be of assistance – Directory of Arizona Exporters* (602-
       771-1192. Another useful publication is International Career Employment Weekly *
       (434-985-6444).

3.     Can you translate for me?
       Although the international trade specialists at the Arizona Department of Commerce do
       have foreign language capabilities, they are not available to serve as translators. We
       can, however, provide you with a list of some translation services available in the state.
       Also, check the various universities and colleges in the state, many students are willing
       to undertake translation work on a fee basis.

4.     I'd like to set up an office in a foreign country. Where do I go to get more information on
       regulations and incentives?
       You should contact the embassies or consulates in the U.S. for your targeted countries,
       the appropriate international chambers of commerce in the U.S., or American chambers
       of commerce abroad. Several countries have economic development offices in the U.S.
       the sole function of which is to recruit U.S. companies to their country.




*For more information on this publication, please refer to the attached bibliography.    05/21/10
                         LIST OF REFERENCED PUBLICATIONS

A Basic Guide to Exporting, published by the U.S. Department of Commerce. Phoenix Export
Assistance Center, U.S. Department of Commerce, 2901 North Central Avenue, Suite 970,
Phoenix, AZ 85012, phone 602-640-2513.
Business America, U.S. Government Bookstore, 710 N. Capitol Street, Nw Washington, DC
20401, phone 202-512-0132.
Commercial News USA, Phoenix Export Assistance Center, U.S. Department of Commerce,
2901 North Central Avenue, Suite 970, Phoenix, AZ 85012, phone 602-640-2513.
Directory of Arizona Exporters, Arizona Department of Commerce, 1700 W.Washington Street,
Phoenix, AZ 85007 Phone: 602 771 1192.
Exporter's Encyclopedia, Dun's Marketing Services, 3 Sylvan Way, Parsippany, NJ 07054-
3896, phone 800-223-1026 or 201-605-6921, annual with fact file updates.
                                                                                        th
Export Reference Manual, Bureau of National Affairs, Inc., Distribution Center, 1231 25 Street
Northwest, Washington, DC 20037, phone 800-372-1033, http://www.bna.com.
Guide to Doing Business Internationally, can be ordered from Arizona Department of
Commerce (602-771-1155), Tempe Chamber of Commerce (480-967-7891) or the U.S.
Department of Commerce (602-640-2513).
International Career Employment Opportunities, The Carlyle Corporation, P.O. Box 6729,
Charlottesville, VA 22906-6729, phone: 434-985-6444.
International Media Guide, may be found at the American Graduate School of International
Management Library, 15249 59th Avenue, Glendale, AZ 85306-6000, phone 602-978-7232.)
National Trade Data Bank (NTDB), STAT-USA, U.S. Department of Commerce, HCHB Room
4885, Washington, DC 20230, (202) 482-1986, (800) STAT-USA, http://www.stat-usa.gov.




*For more information on this publication, please refer to the attached bibliography.   05/21/10
                              Index of Referenced Phone Numbers

           Thunderbird, School of International Management ............. (602) 978-7232
           Arizona Department of Commerce
           Small Business Services Division…………………………….(602) 771-1196
           International Trade & Investment Division .......................... (602) 771-1192
           Arizona Department of Economic Security ........................ (800) 835-2100
           Arizona State Procurement Office ..................................... (602) 542-5511
           Arizona State Capital Archives .......................................... (602) 542-4159
           Arizona State University Hayden Library ............................ (480) 965-3390
           Arizona State University Law Library ................................. (480) 965-6144
           The Carlyle Corporation ...................................................... (434) 985-6444
           Export-Import Bank of the United States ............................ (562) 980-4580
           Mesa Public Library ........................................................... (480) 644-2207
           Northern Arizona University Cline Library .......................... (520) 523-6805
           Paradise Valley Community College Library ....................... (602) 787-7200
           Phoenix Public Library ....................................................... (602) 262-4636
           Service Corps of Retired Executives (SCORE) …………….(602) 745-7250
           State Bar of Arizona ........................................................... (602) 252-4804
           Tempe Chamber of Commerce ………………………………(480) 967-7891
           Tempe Public Library .......................................................... (480) 350-5500
           Tucson Public Library ......................................................... (520) 791-4010
           Rio Salado Community College .......................................... (480) 517-8540
           U.S. Agency for International Development (Procurement) (202) 712-5130
           U.S. Customs Service, Phoenix ......................................... (602) 914-1400
           U.S. Customs Service, Nogales.......................................... (520) 287-1410
           U.S. Customs Service, Tucson………………………………..(520) 799-8348
           U.S. Department of Commerce
           Bureau of Industry and Security ......................................... (949) 660-0144
           Export Assistance Center Phoenix...................................... (602) 640-2513
           Office of Export Trading Company Affairs .......................... (202) 482-5131
           STAT-USA.......................................................................... 800-STAT-USA
           Trade Information Center ................................................... 800-USA-TRAD
           U.S. Small Business Administration in Phoenix ................. (602) 745-7200
           U.S. Government Bookstore .............................................. (202) 512-0132
           University of Arizona Library .............................................. (520) 621-2101
           Yuma County Public Library .............................................. (520) 782-1871




*For more information on this publication, please refer to the attached bibliography.                        05/21/10

				
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