international shipping

Dear BettySue

5 Key Considerations When Exporting

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5 Key Considerations When Exporting From Frostproof, Florida After taking your class The Riddle of the Exporter™, we have become interested an in understanding the key considerations when exporting as we grow. Our store, Geeky Gastro Gadgets in Frostproof, Florida, specializes in finding unique gastronomic gadgets from new inventors around Florida and the U.S. We carry items that range from a crawfish cracker, to a jalapeño seed remover to a foolproof sushi rolling kit. We are considering adding some Florida seafood spice concoctions to the mix. Right now, we have a steady flow of international orders and an increasing number of inquiries from clients overseas. One inquiry is from a kitchen specialty store in London that caters to expats. Can we export? How can we tell if exporting should be in our future? Signed, Gastro Gal *Disclaimer: The names of exporters and their stories have been changed to protect their identity. The names and expertise of our advisors are very real and often understated. The story is funny, the advice is authentic. The Key Considerations To Global Trade, International Distribution, and Import-Export Compliance​ Dear Gastro Gal, Congratulations for considering exporting as part of your business strategy. Every company should, even if they decide that it’s not in the stars. A decision to start exporting should take a more consideration than looking into a crystal ball at the local fair. A friend and colleague, Mr. Hal Jacobson who is an International Trade Specialist with SCORE and North Texas SBDC, is just than man that can help you map out your next step… or not. Mr. Jacobson is a wealth of information, having served as the VP of Quaker Oats International for 37 years with a slight break in the middle when he performed his service as WWII Air Force pilot. (He asked me not to mention that he was awarded the Purple Heart but how could I help myself?)  So lets turn it over to the expert and let him guide us in determining our future. Signed,  Betty Sue, preferring fact to fortune telling *Hal Jacobsen was a global trade mentor to BettySue and many other new exporters. He is no longer with us but I am certain he is still a cheerleader forinternational trade in Heaven. Expanding into global trade is exciting, but before diving in, it’s crucial to assess whether exporting is viable for your company. I receive export questions from businesses nationwide, and the following five key considerations will help you navigate foreign market adaptation, international pricing of products, and how to get paid in international trade. #1: Can Your Product Be Adapted for Foreign Markets? Successful foreign market adaptation is essential for selling internationally. Consider the following factors: Regulatory Compliance: Certain countries require multi-lingual product labels (e.g., exporting food products to Russia requires Cyrillic labels). Technical Adaptation: Electrical products designed for 110V/60Hz (U.S. standard) may need modification to work in countries using 220V/50Hz.Expecting customers to buy a transformer isn’t practical. Metric System Adaptation: Many global markets require metric conversions for product specifications. Metricizing packaging, instructions, andproduct dimensions is crucial for success. #2: Understanding International Distribution Channels Selecting the right distribution channel is key to reaching your target market efficiently. Ask yourself: What are the preferred distribution channels in your target market? Options include:             Retailers vs. wholesalers             Third-party e-commerce platforms like Amazon Global, Alibaba, or Shopify How do international distribution networks differ by region?             Exporting retail products may require partnerships with foreign wholesalers.             B2B industrial products often use direct sales or authorized distributors. Every country has unique import-export compliance regulations that impact international distribution strategies. #3: International Pricing Strategies One size does NOT fit all when it comes to international pricing of products. Common mistakes include: Using U.S. domestic pricing in global markets:o This often fails because: Domestic prices include costs like U.S. advertising, marketing, and localdelivery.o Foreign markets require different pricing structures, factoring in import duties, freight, tariffs, and local taxes. Build pricing based on international costs only:o Currency fluctuations and the impact of exchange rates.o Competitor pricing in the foreign market.o Landed cost calculations, ensuring the final price reflects all expenses associated with delivery. #4: How Will You Get Paid in International Trade? A major concern in exporting is ensuring secure payments. You must establish a reliable international payment method to avoid financial losses. Options include: Credit card or PayPal – Suitable for small transactions but may have high fees. Advance payments – Often a deal breaker, as foreign buyers may hesitate to prepay. Letters of Credit (LCs) or Documentary Drafts – These banking instruments provide security by ensuring payment upon shipment or delivery. Trade credit insurance – Protects exporters against the risk of non-payment by foreign buyers. Without a solid payment structure, even a strong global trade expansion plan can fail. #5: Cultural Considerations in Exporting Cultural differences can significantly impact international business transactions. Consider: Translations: Poorly translated product names and slogans can damage your brand. Negotiation etiquette: Different cultures have unique approaches to business discussions and decision-making. Professional Titles Matter: In global business, job titles impact credibility. Instead of “Sales Associate,” use “International Sales Specialist” toestablish authority in negotiations.   Final Thoughts: Preparing for Export Success By carefully considering foreign market adaptation, international distribution, export pricing strategies, payment security, and cultural nuances, you can confidently enter international markets. All the best, Hal Jacobson Facebook LinkedIn Taranis, LLC dba Export Connector Contact Cactus, Texas & Dallas, Texas & Gun Barrel City, Texas Facebook Linkedin

black and grey camera
Dear BettySue

Export Compliance

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Export Compliance From Confidence, California Hello from Confidence, California, the home of American ingenuity going global. We design and manufacture the soon to be famous Diva-On-Demand state of the art camera for professional photographers. Of course, it comes with faux leopard carrying case. We receive inquiries daily from around the world. We are ready to start shipping internationally today but our freight forwarder put up a big YIELD sign. He says we might need an export license and to learn about following export compliance for our camera. He gave us a copy of The Riddle of the Exporter™ Workbook (excellent workbook by the way) and sent us to Step 5 – Compliance. It says there that we need to ask four questions: what is the product; where is it going; who is it going to and how will it be used? That’s a lot to answer! Do we really need a license for this automatic air brushing camera? Signed, Arnie Leibovitza, Inventor of Diva-On-Demand Camera *Disclaimer: The names of exporters and their stories have been changed to protect their identity. The names and expertise of our advisors are very real and often understated. The story is funny, the advice is authentic. BettySue Response Dear Arnie and the good folks in Confidence, California, Isn’t it exciting to invent, design and sell—all from the good ol’ U.S.A. We always want to encourage companies to sell overseas but we agree with your freight forwarder- slow down and do it right. As my mama always said “tackle trouble before trouble tackles you.” Glad you are using the workbook. The one thing Earnie Earl and I believe in as strongly as hot dogs and fireworks on the 4th of July is that we always call the experts, especially when learning about export compliance for your growing business.  In this case, our expert is Cesar Reyna of Trade Consulting Services. Cesar is a real “go-pro” in assisting companies with all of their compliance needs. We got in touch with Cesar and he will take us through the next steps to determine if you need a license. My friend Cesar Reyna the president and founder of Trade Consulting Services, LLC. wanted to chime in and offer a helping hand. What do you think Cesar!? Cesar Response Dear Arnie, Betty Sue is right, you always want to make sure you have all of your t’s crossed and your I’s dotted before you export. Following export compliance is crucial to maintaining a consistent export output. The Export Administration Regulations, EAR, is the regulation you will want to comply with when exporting your camera.  Determining the Export Control Classification Number (ECCN) for your product is one of the most important steps for exporting. The ECCN is a 6 digit alpha-number that tell us what the product is and why it is controlled.  The ECCN along with the country, end-use and end-user will help you determine if a license is required to export your product. After reviewing your specifications and consulting the Commerce Control List, (CCL) we have determined that your camera is controlled under EAR99. EAR99 is used to control items that are not found in the Commerce Control List and is generally used for low-level technology products and will not usually require a license. But wait a minute; don’t get too excited just yet….there are still other steps you need to take even when exporting EAR99 products. Export compliance for your camera business is just getting started. Embargoes and Sanctioned Countries   Now that you know your products is controlled under EAR99 you still have to determine if you are exporting to an embargoed or sanctioned country, to a prohibited end-use or a prohibited end-user. Betty Sue calls this-checking the “Bad Guy Lists”. The list of embargoed and sanctioned countries can change so the best source is to check Supplement Number 1 to Part 740 to find a list of the Country Groups and review Country Group E. If you are shipping to any of the countries found on this list, give us a call and we can go from there. Anytime you export the camera you should verify that the parties involved in the transaction are not considered parties of concern on the “Bad Guy Lists”.  The Department of Commerce provides a great resource that allows you to check your parties at https://apps.export.gov/csl-search#/csl-search.  If the companies you are doing business with come up in one of these list you should place your transaction on hold until you verify if the party you are doing business with is the same party that comes up on the list.  Double Check Documents   There are several lists this resource checks and depending on the list it could mean that the export is prohibited, a license would be required or there is a red flag associated with this company.  Be sure to document that you have performed this screening as part of your due diligence process by printing a copy of the results for your records. Lastly, you have to ask yourself if the end-use is prohibited. Start out by going through the General Prohibitions (Part 736 of the EAR), the General Prohibitions will walk you through some of the things we just talked about and will refer you to Part 744 of the EAR to determine if your product is going to a prohibited end-use.  Some of the prohibited end-uses include if your camera will be used for nuclear activities or for missile technology end-use but Part 744 will give you more details on this and other prohibited end-uses. Conclusion   Now that we know your camera is going to France to Vogue Magazine for use in fashion shoots and we have screened all the parties involved, we can safely say that your camera does not need a license to export.  Following export compliance for cameras and any product for that matter is a staple of exporting. We covered a bit but there is more to learn. You can learn

Dear BettySue

International Shipping As You Grow

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International Shipping As You Grow From Bowlegs, Oklahoma Howdy from Bowlegs, Oklahoma home of Tornado Alley World Famous BBQ Sauce. We are well known for our Tornado Alley BBQ Sauce and are beginning to embrace international shipping for our BBQ sauce. We started off small and just shipped samples through the USPS and small orders through UPS and FedEx.  It worked for some countries like Germany but certainly didn’t work for Mexico (Yikes!). Here is what is happening now. We are moving past the small stage and on to the big stage which requires international shipping. We have two new distributors (big ones!) in South Korea and in Colombia.   When the orders get bigger and bigger what do we do about shipping internationally?  Right now we don’t think we have enough of an order for a full container but if things go as planned by next year we will.   Signed, Linda Kay, The BBQ Queen of Tornado Alley *Disclaimer: The names of exporters and their stories have been changed to protect their identity. The names and expertise of our advisors are very real and often understated. The story is funny, the advice is authentic. Dear Linda Kay and Brave Friends in Bowlegs, It is excellent to see you planning ahead for the big stage and beginning the process of international shipping your BBQ sauce. What we at Bestway like to do is to work with your customers as they grow. You are correct the USPS works fine for samples, depending on the import country’s level of service. The USPS is rated the #1 postal service in the world but not all others are up to the same level, so beware. Of course, as you continue to grow, you will need to develop a logistics plan. First, determine which of the four modes of transportation is best for your quantity, time and cost requirements. You will use one of the four modes of shipping – air, ocean, rail or truck when international shipping. Utilizing more than one mode is referred to as multimodal. You will also need to calculate your landed costs which means determining the final cost to land your product in the other country. This will include many “hidden costs” such as tariffs, union fees, harbor fees. Your freight forwarder ( your BFF-Best Friend Forever) will assist you in doing this. International shipping by ocean is much cheaper than air but there are some things to consider. The time it takes to deliver will be longer especially if you have less than a container. A full container (20’ or 40”) is called an FCL-Full Container Load and and if you cannot fill a container, you will have an LCL-Less than Container Load. The LCL must be transported to a warehouse for consolidation with other LCLs. The second important thing to consider (for all shipments ocean or air) is proper packaging. In the case of the BBQ sauce, the glass jars must be sufficiently package in full strength boxing and palletized. If cartons are palletized ISPM-15 wood restrictions are valid for both countries listed. All of this should be able to withstand the rolling sea! If ocean containers are loaded, prepare a load plan, taking weight in consideration and order your blocking and bracing materials. For air shipments consider the temperature ranges and non-pressurized cabins. For multimodal, all of the containers will be moved several times and possibly dropped (many times!). Always package for extreme circumstances. Check with your distributors for best port of destination in desired countries.   Before you proceed, you need to check the regulations!! If the USDA has not given any red flags in regards to the components of the BBQ sauce you’re only half way there. You still need to work with your distributor to determine the testing required to import the food product into the foreign country. Are any health certificates required? There will be a government agency that is similar to the USDA. Remember, without this approval your shipment will be stopped at customs. Of course your BFF, your freight forwarder, will assist you but always remember the responsibility lies with you because you are the USPPI-the U.S. Principal Party of Interest. So you have decided the best mode of shipment, determined your landed costs, paying attention to any “hidden costs” and checked out the regulations on both sides of the ocean. As you sell more and grow always keep in mind when international shipping your BBQ sauce to follow the same steps for each new country and always remember your BFF is always your freight forwarder. You can learn more about international shipping BBQ sauces and a wide range of other products as you grow your business by checking out our WORKBOOK & TRAINING so you can solve the riddle of the exporter and grow successfully! If you are still unsure whether you can solve the riddle of exporting, check out what others have said about the 8 step process over on our testimonials page. If you have any issues or any further questions give us a holler here! Best of luck Mike and Linda, hoping to be your new BFF!   Source: Mike Mahony, Linda Reynolds, Hellman Logistics-Bestway International Kansas City, Missouri  Facebook LinkedIn Taranis, LLC dba Export Connector Contact Cactus, Texas & Dallas, Texas & Gun Barrel City, Texas Facebook Linkedin

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