The Exporter-Counselor Dynamic: Export Questions I Should Have Asked – Answers I Should Have Given

In this 6th weekly article, I want to focus on the “disconnects” I see in export counselors' interactions with their SME clients. The primary export assistance organizations -- USEACs, SBDCs, and State trade development offices -- are critical first-stops for SMEs seeking export advice, especially for newer exporters. However, because the two parties generally come from different perspectives, they are not always on the same page when they first meet. SME clients tend to seek advice based on a particular need they have or think they have. Too often, the newer exporters don’t know enough to ask the right questions, or they think they need help with this when it’s really that.

Counselors tend to be creatures of their organizations – their particular programs and services -- and base their advice on what their organizations can do for a client. The high potential for “disconnect” occurs whenever a) the client is not ready for the canned “solutions” offered by the organization; and/or b) the counselor does not have the experience to diagnose the client’s actual needs and address the questions the client should really be asking.

Is there a way to bridge this gap? I believe so, and I created Q&As for Export Counselors and Companies as a free new tool precisely for this purpose. The tool is essentially a 3-column matrix. Column 1 poses 124 specific questions that typical export clients might or should ask, and/or that counselors might reasonably anticipate from clients. Columns 2 and 3 provide answers to these questions, specifically in the form of free, online videos (Column 2) and other Web-based tutorial resources (Column 3).

The premise is that neither export counselors nor their export clients are know-it-alls and that both could benefit from a resource that gave direct “answers” – in authoritative, easily digestible visual formats – to a range of “questions” that might or should be asked in a counseling session.

Q&A Structure

The Questions:

Each of the 124 questions has at least one corresponding video or another resource that directly addresses the question. See all 124 questions below to get a sense of the extent of coverage.

Why all these questions?

Because, even without answers, questions like these can trigger a needed thought process. They can help counselors better anticipate, diagnose, and address their clients’ real needs.?

Why just these 124 questions?

That’s for starters. Maybe there should be fewer, more, or better questions. I’d welcome your feedback in the Linkedin comments or email me at [email protected].

Give me your feedback on:

1. Are the 124 current questions typical of what export clients might or should ask, or that you as a counselor would want to be able to answer if asked?
2. Would you phrase any of the questions differently? If so, how?
3. What other questions, and/or topics/sub-topics, would you like to see added??
4. What other online resources, including yours, would you recommend to answer more of the current questions??

The Answers:

Questions are good, but answers are better. After a ton of Googling, I came up with (so far) 240 free videos and 228 free, online, non-video web resources that directly address each question. They are all from authoritative government and other expert sources.?

Terms of Use:

This tool is offered free of charge as a “non-profit educational” resource, which allows references to be cited without permission from the source. To protect that status, recipients must agree that they will not make it available in any form as part of another service for which a fee may be charged.?

User Instructions:

Step 1: To access the Q&A tool, go to my International Trade Compliance Institute website (www.tradecomplianceinstitute.org).

Step 2: Click on Q&As for Export Counselors and Companies. This takes you to a Google spreadsheet version of the tool. Because this format is cumbersome to navigate, it’s better to use the Download feature here and go to Step 3.

Step 3: The Download feature in Step 2 brings up the entire Q&A tool in a somewhat more user-friendly Excel document. It’s still not ideal, but is the best we could come up with for mass use. You can scroll up and down/left to right in order to access the information in all 3 Columns.??

The 124 Questions

Why Export – Benefits and Risks

• How can I benefit from exporting as a producer of a good or service?
• What are the risks of exporting; how can I avoid them?

Direct vs. Indirect Exporting – Do it Yourself or Through an Intermediary

• If exporting makes sense for me, should I do it myself or use a domestic intermediary?
• If I want to export through a domestic intermediary, where can I find one?

Export Start-Up – As Producers or Intermediaries

• Do I need any special legal structure or permit to operate an export business??
• Do I need a DUNS # as an exporter; how can I get one if needed?
• How do I start exporting as a producer; what is involved?
• How do I start exporting as an intermediary; what is involved?
• How and where can I find sources of export start-up capital?

Get Help from Export Experts

• Who can I turn to for export advice and assistance?
• Where can I learn more about how to export -- basic steps and procedures?
• If my product is a "service," can I export it and who can help??
• How can SBDCs and SCORE help me start and manage an export business?
• How can the U.S. Commercial Service (USCS) help me export non-agricultural products?
• How can the Foreign Agricultural Service (FAS) help me export agricultural products?
• How can the SBA and Export-Import Bank help me finance and insure my export sales?
• How can commercial banks help me finance my export operations?
• How can a freight forwarder help with my export documentation and logistics?

Build Export Capacity -- Prepare for Export

• Am I export-ready; do I have what it takes to export?
• How can I assess/strengthen my company's export competitiveness?
• How can I determine if my product has export potential?
• How do I develop a plan to start or expand my export activity??
• How do I develop a budget for new or expanded export activity?
• How can I globalize my website for export audiences?
• How can I develop global eCommerce, social media, and digital marketing capabilities?
• How can business information systems help me better manage my export operations?
• How and where can I find contract manufacturers to private-label my export products??
• How should I price my products for export markets?

Classify Products for Export - Commodity Coding Systems

• What are the relevant coding systems to classify my export products??
• How do I find the HS code or Schedule B number for my export products??
• How do I find the Export Control Classification Number (ECCN) for my export products?

Find Best Export Markets?

• How can I find the best export markets for my products?
• What statistical and research tools can help me identify best export markets?

Develop Target-Market Entry Strategy

Market Entry Planning

• How do I develop and adapt entry plans for my target markets?

Cultural and Regulatory Adaptation? Strategy

• How does culture impact how I should conduct my export operations??
• How does culture impact how I should interact and communicate with export customers?
• What changes in my product or marketing might I need for cultural or regulatory reasons??

Distribution Strategy

• What are the options to sell and distribute my products in target markets??
• For market distribution, should I look for an agent or distributor; what's the difference??
• How can I find potential foreign buyers or agents/distributors for my product??
• How can I verify the bona fides of potential foreign partners?
• Do I need a written agreement with my foreign partner; what should it include?

Pricing Strategy

• How should I determine the price for my products in target markets?

Promotion Strategy

• What marketing methods and media are mainly used to promote export products?
• How can I use or enhance my website to reach global customers?
• How can I use eCommerce, social media, and digital marketing to attract foreign buyers?
• How can I use trade shows and trade missions to attract foreign buyers?
• How can I avoid paying import duties for trade show goods I plan to bring back?
• If a promotional sales trip to the market makes sense, how should I prepare for it??
• What financing is available to defray my costs for export marketing and promotion?

Make Export Sales

• What are Proforma and Commercial Invoices; how are they used to bill export customers?
• What are Incoterms; how are they used to specify price, delivery points, and liability en route?
• How can I use Incoterms to manage shipping costs and risks?
• How and where can I get working capital to promote sales and fill large orders?
• How can I protect against adverse changes in exchange rates?
• How can a small business like mine sell to foreign governments?
• When and how can the U. S. support my bid for a foreign government procurement?

Get Paid for Export Sales

• How do I get paid for traditional export sales?
• How can I get paid for my eCommerce export sales?
• What are Letters of Credit; how do they work as an export payment method?
• What are Documentary Collections; how do they work as an export payment method?
• What is Open Account; how does it work as an export payment method?
• What are the risks of non-payment by my foreign buyer - commercial/economic/political?
• What is factoring; how does it assure that I get paid for export sales?
• How can Exim protect against buyer default on open account sales (30-120 days)?
• How can Exim protect against buyer default for medium-term sales (5-7 years)?
• Can anyone help me apply for Exim export credit insurance at no charge?
• If Exim won't insure me as a new exporter, who else can provide it?
• If my foreign buyers need financing to buy my product, where can they get it?

Protect International Legal Interests

• How can I protect against foreign theft of my intellectual property?
• How can I protect other legal interests in foreign markets?
• How should I handle a demand for a bribe to secure a sale or a needed approval?
• What foreign bribes are prohibited under the U.S. Foreign Corrupt Practices Act?
• What should I do if told I can only export to my target country if I boycott another country?
• What methods are available to resolve international commercial disputes?

Comply with U.S. and International Regulatory Requirements

U.S. National Security Export Controls (EAR, ITAR, OFAC)

• Which U.S. agencies have primary responsibility for national security export controls?
• What basic export controls are enforced by these agencies?
• What are BIS Export Administration Regulations (EAR); how to comply?
• What is the BIS Commerce Control List (CCL)?
• What are Export Control Classification Numbers (ECCNs)?
• How do I use the CCL/ECCNs to classify products for EAR purposes?
• When are products considered "deemed exports" under the EAR?
• How do I know if a foreign buyer is a "denied" party under the EAR?
• How do I determine if I need an export license for EAR compliance?
• How do I know if my product is eligible for an EAR license exception?
• How do I apply for an EAR export license??
• How do I set up an EAR compliance program in my company?
• What are DDTC International Traffic in Arms Regulations (ITAR); how to comply?
• If my product can be used for a military purpose, do I need to register under ITAR?
• How do I register my company under ITAR if required?
• How do I set up an ITAR compliance program in my company?
• What are Office of Foreign Assets Control (OFAC) regulations (FACR); how to comply?
• How do I know which countries are sanctioned under FACR?
• How do I set up an OFAC compliance program in my company?

U.S. Health/Safety Export Regulations?

• What certificates might I need to export products under FDA jurisdiction?
• How do I apply for FDA export certificates?
• What U.S. certificates might I need to export products under USDA jurisdiction?
• What U.S. certificates might I need to export products under TTB jurisdiction?
• Are any special U.S. permits needed to export "dangerous" or "hazardous" goods?

Foreign Tariff & Non-Tariff Barriers

• What are tariff barriers to trade (import duties/taxes); how are they calculated?
• How do I determine the import duty for my product in target markets?
• Which countries might be duty free for my products under U.S. FTAs?
• How can I benefit from zero-or low tariffs under the US, Mexico, Canada (USMCA)?
• How do I determine country of origin of my products for preferential duty treatment?
• What are non-tariff trade barriers (NTBs)?
• How do I determine if my product is subject to any non-tariff barriers in target markets?

International Standards

• What international standards might I want to certify for or comply with?

Comply with U.S. & International Documentary Requirements

U.S. Documentary Requirements

• What is the Automated Commercial Environment (ACE) for export documentation?
• How do I register and set up an account in ACE?
• What export documents must be filed under ACE; how do I file them?
• What are the Automated Export System (AES) and Electronic Export Information (EEI)?
• What EEI documents must be filed in the AES; how do I file them?

International Documentary Requirements

• What are the most commonly needed export shipping documents?
• What do I do if asked for a Consular Invoice?
• What protection do Bills of Lading (B/Ls) offer in the export transaction?

Prepare Goods for Export Shipment (Marking, Labeling, Packaging)

• How are export goods typically marked and labeled?
• How can I safely package my goods for export shipment?
• How must hazardous materials in particular be marked, labeled and packaged?

Deliver Goods to Export Destinations

• Who can help with my export logistics??
• What software tools are available to help with export logistics?
• How can I use Incoterms to manage shipping costs and risks?
• How do I insure my goods against damage in transit?
• Why do I need a "General Average" clause in my cargo insurance policy?
• How can I transport my goods to foreign markets?

Epilogue

In my 6 weekly articles posted to date (see list below), I have tried to give some initial food for thought on the why, what, how, and who of exporting and export counseling. I could go on, but will pause here to see if any of this has caused you to think differently about your export engagement as a company, or how you interact with clients as export counselors. I encourage you to contribute your thoughts in the LinkedIn comments or email me at [email protected].?

Maurice Kogon has over 60 years in the international business field. In 2012, he founded Kogon Trade Consulting to do mostly pro bono export mentoring and training. In 2018, he teamed up with the Milken Institute to develop and direct an export enabler initiative for new-to-export manufacturers. Maurice established and maintains the website?International Trade Compliance Institute?(ITCI), with links to extensive online resources on all aspects of international?trade. His latest book –?Roadmap to Export Success: Take your Company from Local to Global?– was just published this month (May 2021). Maurice has a BA and MA in Foreign Affairs from George Washington University (GWU). Maurice is a past President of NASBITE (2008-09), is a longtime NASBITE Board member, and helped to develop NASBITE’s Certified Global Business Professional (CGBP) credential and exam.