Magaly Sanchez International Trade Specialist, IBA magaly@nmiba.com 575-589-2200 Why export? Global Economies of Scale Increase Profits Increase Sales Export Global Market Competition Is my company ready to export? Indicators: •Competitive product or service •Product or service suited for other countries •Capacity for serving international markets •Production capacity •Know-how and managerial expertise •Financial resources for overcoming entry barriers Keep in mind: Samples, promotional materials (websites) Regulations: Mark (European Union) ISO 9000/9001 (quality) Export documentation (custom broker) Tariffs and taxes Logistics/transportation Sources for business regulations: Economist Intelligence Unite “Country Commerce” World Bank database www.doingbusiness.org How Easy Is To Do Business In Different Countries? Export Documentation: Commercial invoice (usually to determine tariff) Harmonized Tariff Schedule www.dataweb.usitc.gov Shippers Export Declaration (US gov’t form) Export licenses for sensitive products (ITAR) Export Documentation: Bill of Lading Certificate of Origin for NAFTA Document to receive LOWER TARIFF or NO TARIFF in products manufactured in the US, Mexico or Canada when exporting. Logistics and transportation: Incoterms (series of terms) Who pays for transportation Who is responsible for insurance Way of delivery For freight or transportation you will need to hire an intermediary and a custom broker Where do I identify market opportunities? Typically companies enter markets that are similar or near: Geography Economic conditions Culture Regulations Trends that make exporting easier for small businesses Transportation costs Communications innovations Many countries are experiencing more economic growth than the US Leading Export Markets for the United States in 2011 Country Exports from US Country Exports from US 1. Canada $281 billion 6. Germany $49 billion 2. Mexico $198 billion 7. South Korea $44 billion 3. China $104 billion 8. Brazil $43 billion 4. Japan $66 billion 9. Netherlands $43 billion 5. United Kingdom $56 billion 10. Hong Kong $37 billion Leading Export Markets for New Mexico Products in 2011 Country Exports from NM Country Exports from US 1. Mexico $464 million 6. Germany $79 million 2. Israel $442 million 7. Japan $59 million 3. Canada $349 million 8. Thailand $44 million 4. China $90 million 9. Hong Kong $31 million 5. United Kingdom $81 million 10. South Korea $30 million Leading Export Products for New Mexico in 2011 ($2.1 billion) Product Exports Product Exports Integrated circuits $439 million Pipe taps, cocks, valves, etc. $67 million Civilian aircraft, engines & parts $103 million Cheese and curd $65 million Semiconductors & photovoltaics $86 million Electric apparatus for line telephony $55 million Oil (light oils & preparations) $75 million Liquid pumps or elevators $54 million Chemical elements for electronics $68 million Paintings, drawings or collages $50 million Computer, electronics, metal products, food, transportation equipment A big opportunity for New Mexico Small Business: To Use Gateway to Exporting Program Additional Resources: SBA Export Business Planner www.sba.gov/exportbusinessplanner US Department of Commerce Gateway to Exporting Webinars http://www.nmiba.com/gateway/webinars.html Thank you!