Your Export Plan :Transportation and Documentation continued Section 5 Part4

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Transportation and Documentation

continued

Export License/ Shipper’s Export Declaration (SED)

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Export License

Export controls are based on the type of goods being shipped and their ultimate destination. While most exports do not require a license, it is your legal obligation to seek an official determination from the Bureau of Industry and Security (BIS).

• Technically, most exports are shipped under a “No License Required” (NLR) classification, which is a self-certification that a license is not required.
• Should your particular export be subject to export controls, a “validated” license must be obtained. In general, your export would require a “validated” license if export of the goods would threaten U.S. national security, affect certain foreign policies of the United States or create short supply in domestic markets.

To determine whether your product needs an export license, you must have the Export Commodities Classification Number (ECCN) for your product. An ECCN is assigned to products that require a license at their ultimate destination or if required due to the nature of the product itself–for example, if the product has dual use as a civic and military item

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If your freight forwarder cannot provide you with the ECCN, you may be able to obtain it from the manufacturer, producer or developer of your product if it has been exported before, and you are not the producer.

• The Bureau of Industry and Security at the U.S. Department of Commerce can also help you obtain an ECCN.
• Or, you can look up the number in the Code of Federal Regulations, 15 CFR Parts 730–774, online; it is also

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Your Export Plan :Transportation and Documentation continued

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Creating Your Export Plan Section 5 Part 3

Transportation and Documentation

continued

On the last post we looked at transporting your goods to your chosen destination and how the Freight Forwarder can make all of the necessary connections to make it all happen.

There are certain requirements that they have to meet before someone actually becomes a Freight Forwarder. They must obtain a FF number, insurance and a Surety Bond of 75 K. There are other candidates that you can use for your international needs, but be sure to check them out.

In this post we start out with the mode of transportation and documentation.

Mode of Transportation

In preparing your goods for international transport, you must first determine what mode of transport you will use.

• If shipping to Mexico and Canada, land transportation may be the preferred method. (Or, depending on what you are shipping, you might find that air service to these countries makes the most sense for your business.)
• Other methods of shipping internationally include sea and air transportation.

Maritime shipping is usually slower and less expensive than air freight. However, you must factor in the additional costs of sea freight, such as surface transportation to the dock. Another factor is the time value of money: payment may not be made until the ship reaches its destination—and ocean freight can take significantly longer than air freight.

Your international freight forwarder can assist in weighing the pros and cons of different modes of transportation. Once you have decided on the best option for transporting your goods, you must begin to compile the necessary documents.

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Creating Your Export Plan :Transportation and Documentation

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Creating Your Export Plan Section 5 Part 2

Transportation and Documentation

Role of the Freight Forwarder

Once you’ve pinpointed your target markets, you need to assess how you will get your product or service to your potential customers. There are many options for market entry strategies.

These include

• Licensing technology abroad
• Acquisitions of foreign companies through direct investment
• Strategic alliances
• Joint ventures
• Exporting (direct and indirect)

The benefits and risks associated with each method are contingent on many factors, including the type of product or service you produce, the need for product or service support, and the foreign economic, political, business and cultural environment you are seeking to penetrate. The best strategy will depend on your firm’s available resources and level of commitment, as well as the degree of risk you are willing to incur.

Small businesses most commonly select exporting as their strategy for market entry. Start-up costs and risks are limited, and exporting is less complex than some of the other market entry methods.  Exporting can be done directly or ...

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