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

Posted on March 23, 2010 by marketing

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

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

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

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

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

Posted on December 14, 2009 by marketing

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

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

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

To read more, click here.

Management Dynamics Releases Trade Wizards 10.0 Web-based Research Tool

Posted on November 18, 2009 by marketing

Improves Compliance with International Trade Regulations and Advisories

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

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

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

New key features available on Trade Wizards 10.0 include:

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

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

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

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

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

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

U.K. Sees Exports Rise and Recession Ending

Posted on November 12, 2009 by marketing

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

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

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

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

Learn more about Management Dynamics’ Export On-Demand

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

Office of U.S. Trade Representatives to Focus on Small to Mid-Size Business

Posted on October 6, 2009 by marketing

According to American Shipper magazine, The U.S. Trade Representatives (USTR) have asked the International Trade Commission this week to determine the size of small to mid-sized enterprises (SME) in export throughout the U.S.

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

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

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

For more information about the article, click here.

European Small To Mid-sized Enterprises Called To Be More Represented

Posted on September 11, 2009 by marketing

Mr. Leclercq, founder and publisher and Mr. Zednik, ceo, both of EurActiv.com published an article in the Wall Street Journal discussing the need for the European Commission and its members to acknowledge the difficulty for small to mid-size enterprises(SME) to expand and compete compared to large enterprises, and to show more commitment to help.

Currently, there are 23 million SMEs in Europe representing about 75 percent of the European market. It is estimated that it takes more than 10 euros per employee on company spend compared to only around 1 euro in a large enterprise. These costs are partly due to regulatory filings, because a smaller company still must fill in the same forms as a big company. Another factor is large enterprises’ ability to hire compliance specialists.

In 2008, the EU passed the Small Business Act which aims to reduce the small business administration responsibilty by 25 percent by 2012. Mr. Leclercq and Mr. Zednik take issue with this Act already. They note that although the European Commission has good intentions with this Act, it’s still challenging for some European countries to have the quick turnaround as promised by the Commission to the SMEs. For example:

In Germany, company registration is supposed to take three days. But after agreeing all details in German, it still took us five hours of notary time and three months of waiting for notice or approval from five different authorities – the court, the business register, the chamber of commerce, tax authorities and the labor administration – to set up EurActiv.de, a simple joint venture.

Another point Mr. Leclercq and Mr Zednik both believe is that SMEs should be encouraged to cross-border trade. Only 8 percent of SMEs trade outside its borders, and 5 percent receive subsidies from aboard.

As the new European Commission President moves forward in his elected position, many SMEs will be eager to see what changes are to come.

To read the full article, click here.

International Trade Isn’t Just for Large Companies

Posted on July 21, 2009 by marketing

A recent article, The Idea Of Trading Internationally Can Seem Intimidating. Only The Big Players Do It, Right?, gave me the idea for this blog post. By either offering a small niche product or wanting to expand profit, stepping into an international market can be rewarding. Each situation offers the ability to market to a larger audience and gain more exposure for your business.

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

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

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

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

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

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

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

How Can SMEs Size Up to Border Regulations?

Posted on July 14, 2009 by marketing

Canadian Transportation & Logistics magazine’s recent article, Seeing Red, discusses the trade relationship between the U.S. and Canada. With the new U.S. administration up and running, Canada has begun talks on how to build more transparency and establishing a more consistant preclearance reporting.

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

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

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

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

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

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

Insurance Denied

Posted on June 26, 2009 by marketing

It’s challenging these days for small to mid-sized companies trying to compete with large scale enterprises. And, to make matters worse insurance companies are discouraging coverage for some of these companies, according to the Export Credit Guarantee Corporation (ECGC).

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

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

Understanding the Science of Importing for Small to Mid-sized Companies

Posted on June 26, 2009 by marketing

There is a lack of awareness in some small to mid-sized companies (SME) with the amount of tax planning for import duties. Because of this, there are a lot of missed opportunites to reduce company costs. According to Import Duties: Bend Me, Shape Me, Any Way You Want Me in CFO magazine this month, it discusses some key points for SMEs to reduce costs as an importer.

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

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

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

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

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

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

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

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