Shipping Solutions Newsletter

I live a rules-driven life. My daily existence is guided by the norms of what is right and wrong or by what simply works best. Call me conventional, but I find following some simple rules to be efficient. It frees up time to do other more important things with my life. It makes my day flow more smoothly.

Take getting dressed in the morning. I put on my pants first, then socks and then my shoes. Some days I live on the wild side and put my socks on first then pants then shoes. I’ve learned through experience, however, never to put my shoes on first. It makes putting my pants on devilishly tricky, not to mention it looks pretty silly wearing my socks on the outside of my shoes.

This is pretty logical stuff. Don’t you think? These are lessons learned by most people as preschoolers. Why, when it comes to trade compliance, are so many importers and exporters walking around with their socks on the outside of their shoes?

In the world of importing and exporting there are a variety of tasks that should occur long before a company goes to market. There is none more important than assigning the harmonized system (HS) code. Too frequently, however, importers issue and exporters accept purchase orders before they are aware of HS codes. This, in my opinion, is akin to wearing socks on the outside of your shoes.

This may seem a trivial distinction. Failing to assign HS codes prior to issuing an import purchase order or prior to issuing an export quote is simply not good international business practice. It can lead to issues that distract a company from its core business. It can cause inefficiencies, waste time, damage the company’s reputation with the regulators, and cost it money. How so? Consider the following:

Every supply chain is slightly different. Some importers and exporters may choose to put on their socks…er assign HS codes even earlier within their commercial processes. For example it is not uncommon for companies to assign HS codes as part of the product development, design or specification process. The earlier HS codes are assigned in a supply chain the better prepared the company will be to address more substantive issues within its business. Such companies clearly understand the importance of assigning HS codes and desperately do not want to be seen in public with their socks on the outside of their shoes!

Other companies still fail to assign HS codes. That is tantamount to not wearing any socks. That, however, is a metaphor I’ll leave you to explore on your own.

If your company has any customers in Canada or Mexico, or if you have domestic customers that ship to one of those two countries, you've probably been asked for a NAFTA Certificate of Origin. And depending on how much money these Canadian or Mexican customers can save in duties under NAFTA, the requests may be frequent and strongly worded.

Keep in mind, however, that not all products qualify for NAFTA. That includes goods that are manufactured or produced in Canada, Mexico or the United States. Before you can determine whether or not your products qualify for reduced duties under NAFTA, you must understand the NAFTA Rules of Origin, you must know and document the origin of each of the components of your products, and you must know and document where your products were finished.

Don't think this is important? If you provide someone with a NAFTA Certificate of Origin and you can't provide documentation that your goods qualify, your company—and the person who signed the NAFTA Certificate—are at the mercy of U.S. Customs and Border Protection, which can penalize you thousands of dollars per violation.

You and your company can't take chances with your NAFTA program. There's still time to register for International Business Training's (IBT) series of live, two-hour presentations on the fundamental elements of NAFTA that are important to successfully managing the program:

Each two-hour webinar is held twice a day so both east coast and west coast attendees can participate over their lunch hours. Of course, if you've already got lunch plans, we don't mind if you register for the other session that day.

Each webinar is only $150 per person, and you'll receive a copy of the instructor's PowerPoint presentation prior to the webinar so you can take notes, and we'll mail you a Certificate of Completion at the end of each webinar. Additional employees from your company can attend on the same internet connection for only $50 each.

By Joseph A. Robinson email | bio

Exporters often think of chambers of commerce only in terms of signing Certificates of Origin. But are there other services and programs that chambers of commerce provide to assist you in your export process? The answer is a big "Yes." Business savvy managers utilize chambers of commerce routinely to help increase the efficiency and effectiveness of their international business.

How did chambers of commerce get started, and why are they relevant to the global scheme of things? The World Chambers Federation (WCF) was established by the International Chamber of Commerce (ICC) in 1951 to be the advocate of its chamber of commerce members worldwide. The WCF is a non-political, non-governmental body representing the interests of all local, national, regional, bilateral and transnational chambers of commerce and industry. The WCF seeks to strengthen and improve performance as well as discover new products and services to offer their members. Because chambers are recognized locally and globally by government agencies and businesses alike, the WCF provides a universal platform and forum to standardize and facilitate international business transactions. Incoterms come to mind as a premier ICC function.

Chambers are the recognized source for signing Certificates of Origin (CO). The CO verifies the country in which the goods were manufactured. Some nations restrict imports from certain countries; many countries limit the quantity of goods that are allowed to be imported or give preference to goods manufactured in the United States. The CO requires the authorized signature of the local chamber of commerce secretary and the seal of that organization. Virtually every country in the world considers the origin of imported goods when determining what duty will be assessed on the goods, or in some cases, whether the goods may be legally imported at all. In most countries, chambers of commerce are the key agent in the delivery of certificates of origin.

The role of chambers of commerce delivering certificates of origin can be traced back to the 1923 Geneva Convention relating to the Simplification of Customs Formalities. Under the Convention, its signatory governments were obliged to make the process and procedures as simple as possible for companies requiring certificates of origin. Due to the widespread network of the chamber of commerce community in nearly all countries around the world, its facility and ease, and the respected reputation of serving the business community, in most countries chambers of commerce issue certificates of origin.

The chamber's goal in international business is to generate job growth and economic development. Chamber international programs seek to promote economic growth by assisting local businesses to expand into international markets. Throughout the year, local chambers present various seminars for businesses to assist with exporting their products. Some of these seminars are country specific while others are industry specific. Other training seminars cover the mechanics of exporting such as financing, locating distributors, methods of payment, export documentation, and transportation.

I visited my own local chamber of commerce recently to ascertain their current agenda for assisting exporters. I wanted to know what they offered in addition to authenticating certificates of origin. Rex Hammond, CCE, President & CEO of the Lynchburg Regional Chamber, told me his chamber offers networking events (including a trip to China in October), educational opportunities (including emails, workshops and seminars), and opportunities for increased visibility and business referrals. You may want to check out your chamber of commerce to evaluate their programs and services that can help grow your international business.

In a future article I will cover the AmChams (American Chamber of Commerce) located in major cities all over the world. These can be a gold mine of value to the international executive and global marketing and sales managers as they go about market penetration and expanding global business development. Stay tuned.

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Thousands of successful exporters are using Shipping Solutions to complete their export documents faster, easier and less expensively than ever before. Why aren't you?

If you're too busy trying to complete your export documents by hand to spend some time reviewing the Shipping Solutions Professional export documentation and compliance software yourself, let us do it for you! Sign up for one of our free online demos and let us give you a one-hour overview of the software.

We'll take you step-by-step through the process of completing your export forms, filing your SEDs electronically through AES, and checking your exports against the various government restricted parties lists and export regulations to make sure your shipments are in compliance, and you—and your company—stay out of trouble.

These free online demos are available on Tuesdays at 1:00 p.m. and Thursdays at 10:00 a.m. Central Time. All you need is an Internet connection to watch the demo and a phone to listen in and ask questions about the software. It's the perfect opportunity to get your first view of Shipping Solutions or to convince your co-workers and your boss that Shipping Solutions is the perfect solution for your company.

See why Shipping Solutions is America's #1 export software. Sign up for the free online demo today!

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