Episode 006

Welcome to the LA Export Series podcasts brought to you by the El Camino College Center for International Trade Development. Each podcast will focus on a specific export topic presented by an industry expert. Our complete series will walk you through the trade process from getting started to getting paid and delivering the goods.  

In this session we will discuss Online Resources for International Trade. Through the El Camino CITD website, many tools are available to address your international trade needs. We will introduce these valuable on-line resources and provide a brief demonstration to show how to make these resources work for you.

Our Presenter is Maurice Kogon, Director of the El Camino College Center for International Trade Development.  Maurice has over 49 years of experience in the international business field as a U.S. government official, business executive, educator, and consultant.  He has written, lectured, and trained extensively on international trade and has developed numerous Web-based export tools now used throughout the world. He is also a past President of NASBITE and has served on the NASBITE Board of Governors since 1999. Maurice obtained both his Master’s and Bachelor’s degrees in Foreign Affairs from George Washington University.

Web Portals for International Trade

The Internet is a goldmine of international trade information. Many Websites offer useful resources for almost anyone in this field. The key is not whether what you want exists – it does -- but whether you can find it in the Website morass. The Web is now so vast that it’s not easy to find just the nuggets you need. The usual Google search might work, but could also waste a lot of time, as it usually lists pages of “hits” that may or may not be relevant, or the hits you really want may be too far down the line.

Fortunately, a solution exists. A few Internet sites have aggregated this mass of trade information into more user-friendly, one-stop “portals. Among the best portals are

•     The Website of the El Camino College Center for International Trade Development (CITD) (www.elcaminocitd.org)
•     The CITD’s International Trade Compliance Institute Website (www.tradecomplianceinstitute.org)
•     The Commerce Department’s export Website (www.export.gov)
•     Michigan State University’s GlobalEdge Website (http://globaledge.msu.edu)

For this Podcast, we’ll mostly focus on the extensive portal developed by the El Camino CITD. It pulls from many different trade-related Websites, including governmental, international, and commercial, to save you the time to go separately into each one.

The CITD’s One-Stop Portal

Despite its size, navigating the CITD site is easy. The Home Page provides easy access to the two main areas of the site -- the “International Trade Toolbox” and the “Trade Information Database.” These have virtually all the information needed at any stage of the export process. The Home Page also has an updated list of “News and Highlights” and a link to an “Events Calendar.” Now, let’s take a look at what you can find in the Toolbox and Trade Information Database in particular.

International Trade Toolbox

The Toolbox appears on the left side of the CITD Home Page and has nine options to choose from.

The Trade Information Database alone has over 1,000 “deep” links to trade information in 12 broad sections and 54 subsections. Deep links mean you’re taken directly to the specific content you seek within a broader site.

It’s easy enough to say the Web has it all, and it’s in this section or that of a Website. Exporters still need to know the right questions to ask, where to find the information within a site, and how to pull it out once they get there. Information needs differ as exporters advance in stages from start-up to full export engagement. Exporters generally go through four such developmental stages.

The Start-Up Kit includes my own Exporting Basics, Export FAQs & Internet Export Search Wizard downloadable to PDF.

We’ll look next at what exporters generally need to know at each stage and where to find it.

In this Stage, as a start-up exporter, you need to prepare yourself for this new activity. That means determining if your product has export potential and if your company has what it takes to export. If so, you then need to learn how to export and know which organizations you can go to for export help. You’ll also need to know the classification code for your product, such as its Schedule B or Harmonized code, the different terminology used in exporting, such as Incoterms, and how to convert exchange rates, weights, and measures used internationally.

By Stage 2, you already know how to export and that your products have export potential. You now need to determine which markets offer the highest export potential and how best to enter each target market. You’ll also want to know about specific opportunities to promote yourself in these markets and find interested buyers and distributors.

By Stage 3, you will have selected your target markets, established representation and recognition in those markets, and should be attracting inquiries and leads. You now need to know how to respond quickly to these opportunities, quote prices, close the deal on price, credit, payment, and delivery terms, and limit your risk.

By Stage 4, you will have agreed on all terms of sale and now need to fill the order. You need to know how to comply with regulatory and documentary requirements at both ends, and manage your logistics to get the goods to the foreign buyer.

Now, let’s cover where you can find the information you need at each stage.

Exporter Information Sources in Stage 1 – Build Export Capacity

The Start-Up Kit (#1 in the Toolbox) is one place to go if you’re new to export. It has four of my own contributions -- Exporting Basics, Export FAQs, Export Readiness Assessment, and Internet Export Search Wizard.

Within the Trade Information Database:

• The Export Readiness Tools section has many guides, Webinars and videos on how to export.
• The Trade Reference Tools section has quick look-ups to international commodity codes, definitions and conversions.
• The Trade Promotion Section lists programs and services that can help you export.
• The Trade Resources section lists federal, state, private sector, academic, and international sources of export assistance.

Exporter Information Sources in Stage 2 – Identify Best Export Markets

Within the Trade Information Database:

• The Trade and Economic Statistics section has world trade, economic and demographic data to size up markets
• The Foreign Market Research section has product and country research to identify best markets and develop entry strategies.
• The Trade Contacts and Leads section has trade directories and specific trade leads to identify prospective buyers and distributors.
• The Trade Promotion section has trade event schedules and media directories for global marketing.
• The International Trade News section has daily news feeds and periodicals on specific topics, industries and regions.

Exporter Information Sources in Stage 3 – Make Sales & Get Paid

Export Finance (#6 in the Toolbox) has a comprehensive Export Finance Guide, methods of payment, protection against buyer default, and details about pre-and post-shipment financing.

The Finance & Insurance section in the Trade Information Database provides further information on trade finance basics, trade finance programs and services, and trade finance and insurance providers.   

Exporter Information Sources in Stage 4 – Deliver the Goods

The CITD’s International Trade Compliance Institute (#4 in the Toolbox) is entirely focused on international trade compliance. It will alert you to regulations you may face, and help you avoid unwitting violations.

Within the Trade Information Database:

• The Trade and Investment Regulations section has U.S. and worldwide laws and regulations affecting market access and compliance.
• The Trade Documentation section has requirements, procedures, and forms for documentary compliance.
• The Transport & Logistics section has tools and services to manage logistics and deliver the goods.

Now let’s try a few sample searches to get you started and familiar with the CITD portal.

Sample Stage 1 Search: Am I export-ready?

Go to Export Readiness Assessment (#2 in the Toolbox) to take this computerized self-test of your export potential and readiness. Click on the ERA link at the top to get to the Login page.

If you’re a first-time user, click on “register” to get a password, or enter your Email address and existing password, then click Login.

After logging in and looking over the 23 questions, click “Start Assessment.”

Here are the first 3 of 23 questions, and the 3-5 optional answers. Select the answers that best meet your situation. When you’ve answered all questions, click “Submit.”

To view your results, click “Show Results.” At this point you also have the option to send a copy of your results to a trade counselor of choice, by entering the counselor’s Email address and clicking “Send Results.”

This is the feedback for your answer to the first question. Each question has comparable feedback – essentially a diagnosis of your export strengths and weaknesses and tips on how to overcome weaknesses.

At the end of the feedback, you’ll see how you scored on a scale of 0- 100 in the four areas tested, along with an overall average score. In this case, the overall score of 17 falls in the “very weak” range, as shown in the “Score Explanation.”

You can save, copy, and print the entire report.

Go to Best Markets Reports (#8 in the Toolbox). Browse through the industry list, and view or download the latest report on your industry (in this sample, aircraft and parts).

Here is the table of contents of a typical report. These reports combine U.S. export statistics, world export and import statistics, and country-specific analysis to explain why the listed countries offer high export potential for the selected industry.

Sample Stage 3 Search: What are my least risky export payment options?

Go to Export Finance (#6 in the Toolbox) for complete coverage of export payment options and protection against non-payment. Click on the Trade Finance Guide.

...Here is the table of contents of the Trade Finance Guide.

Sample Stage 4 Search: What trade regulations must I comply with?

You’ll need to check for U.S. export regulations as well as the target country’s import regulations. Go to the CITD’s International Trade Compliance Institute site (#4 in the Toolbox).

For a quick search using cosmetics as an example, enter “cosmetics” into the keyword search field, in the upper left corner, then  check the boxes for the Regulatory Database and the Regulatory FAQs. Click search.

Here are results for cosmetics from the Regulatory Database and Regulatory FAQs.

Click on any FAQ to see the answer, in this case, “Is my product really a cosmetic under the law?”

For even more information, click on the enforcing agency at bottom, in this case FDA.

All the resources discussed in this Podcast are available at no cost, either directly from or through the CITD Website. These sample searches just barely scratch the surface. Take the time to browse through all the Toolbox areas and sections of the Trade Information Database. You’ll eventually reach your comfort level, understand what’s important to know, and be amazed at how quickly and easily you can find what you need.

Thank you for listening and special thanks to Maurice Kogon for sharing his valuable time and international business insights. Check out our full line of LA Export Series podcasts on our website www.Export Assist.org where you will find information on additional export topics with complementary tools and resources.

This podcast is brought to you by the El Camino College Business Training Center, a trusted resource delivering high-quality training and assistance to help meet your need for a more productive and competitive workforce.  The Business Training Center is part of the El Camino College Community Advancement Division and is proud to be part of the state’s economic development mission to advance California’s economic growth and global competitiveness through quality education and services focusing on continuous workforce improvement, technology deployment, and business development.  Funding for this podcast was provided by the El Camino College Center for International Trade Development and a Statewide Collaborative for Business Computer Information Systems Education mini-grant from Coastline Community College. Copyright © 2010, El Camino College Business Training Center. All Rights Reserved.

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