International
Trade Frequently Asked Questions
How do I export?
The following are basic steps that should be followed before deciding
to "go global":
1. Carefully
assess the business and its products
2. Develop
a good, solid business plan. VERY IMPORTANT!
3. Conduct
ample research (foreign market trends, demographics, political, economic
and social environments, etc.)
4. Determine
the method of foreign market entry (agent/distributor, direct exporting,
joint venture, etc.)
5. Select
an agent or distributor most small businesses find that it
is too costly to sell directly to an end user; therefore finding a
good distributor to represent your company and products is crucial.
Do
I need a license to export?
Not necessarily. All export shipments are carried out on a transaction
basis, and 98 percent of all exported products are automatically covered
under a general license issued by the U.S. government; this license
requires no paperwork. Should a product not fall under a general licensing
category, a "validated license" must be obtained from the
government. Also, validated licensing may be applicable to countries
such as Cuba or China due to foreign policy concerns.
For an
application to obtain a validated license, contact the Exporter Assistance
Office at the U.S. Department of Commerce, Room 1099D, Washington, D.C.
20230, (202) 482-4811.
Where
can I obtain market research information?
The following public and private organizations offer excellent market
and research assistance:
Freight
forwarders, international departments of banks, export management
companies, small business development and international trade centers
(located at community colleges or chambers of commerce), state international
offices, export hotline, private firms/consultants.
What
is ISO 9000?
The International Organization of Standardization (ISO) is a series
of documents that represents quality assurance standards used by companies
that supply goods and services internationally. ISO certification is
received only after a rigorous inspection by an approved assessment
body. ISO 9000 has become increasingly important as exports are realizing
that compliance is crucial for overseas success.
What
is the best way to ship products?
It is advantageous to keep freight costs to a minimum. While there are
benefits for both air and ocean shipments, the customers' needs should
be considered first. Normally, air shipments reach the customer in approximately
one week, whereas ocean shipments can take up to three weeks. It is
also important to receive quotes from different air and ocean freight
forwarders in order to receive the best possible rate and service.
What
forms are needed to export products?
The most common forms are bill of landing, certificate of origin, commercial
invoice, consular invoice, destination control statement, export packing
list, inspection certificate, insurance certificate and shippers
export declaration. Some freight forwarders will do this paperwork for
you.
Where
can I obtain these forms?
If you are working with a freight forwarder, the forms usually are provided.
They can also be obtained from a Government Printing Office or business
supply store.
What
is a Certificate of Origin?
A document signed by the exporter required by certain foreign countries
for tariff purposes. It simply indicates that the country originating
the specified goods is indeed the exporters country. Proof of
origin is especially important to countries in which the U.S. has a
reciprocal trade agreement, such as NAFTA and the Canadian Free Trade
Agreement.

Developed
in cooperation with the U.S. Small Business Administration, the Illinois
Department of Commerce and Economic Opportunity, and College of DuPage
as a service to Illinois businesses under cooperative agreement #SB-2M-00097-15.
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