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When Classifying Parts Using HTS Codes, Read the Notes!

John Goodrich | September 23, 2016 | Import Basics

We all know intuitively what a part is. Nearly every company has a parts department. These are the areas of the company staffed by those magical people who never throw anything away and always seem to be able to find that one widget or what is needed to repair a product and satisfy a customer.

It comes as a surprise to some that the Harmonized Tariff Schedule (HTS) uses the word part with a much narrower and precise definition. What we call a part in industry is rarely what the HTS code refers to as a “part” or “parts thereof.” As examples, it is not uncommon to find headings in the tariff such as:

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Export Compliance: You Can Outsource Responsibility, but You Can't Outsource Liability

David Noah | September 21, 2016 | Export Compliance, Export Basics

In many ways, exporting is like hiring a marketing firm to represent you. With marketing, you have several options: You can do all of your work in-house with your own staff, you can hire freelancers, you can hire an agency, or you can do a combination of all of them.

Exporting works similarly—you can do everything yourself, you can hire vendors like freight forwarders to take care of parts of the process for you, or you can do a combination of both. The goal, of course, is to find resources that can help you do it efficiently.

But there’s something you must remember about both of these partnerships. No matter how you do it, you have to actively manage all the pieces of the process.

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Shipping Dangerous Goods: Basic Facts and Talking Points

Lisa Nemer | September 20, 2016 | Dangerous Goods/Hazmat, Shipping Solutions News & Tips

I recently attended two days of training on the extremely complex topic of moving dangerous goods from one place to another. While I don't know nearly enough to tell you how to actually ship dangerous goods, I did learn enough to give you some interesting cocktail party talking points, which will amaze your friends and maybe even help them understand why some things do need complex regulations.

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What Is the Destination Control Statement and Why Should It Be on Your Commercial Invoice?

David Noah | September 19, 2016 | Export Compliance, Export Basics

The Destination Control Statement is a legal statement required by the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR) stating that the goods you are exporting are destined to the country indicated in all the shipping documents. It is a necessary legal boundary clarifying what happens to shipments, and it essentially states that the buyer isn’t going to take the goods and forward them to another country.

Up until now, the statement required by the Bureau of Industry and Security (BIS) under the EAR was different than the statement required by the State Department under the ITAR. That changes on November 15, 2016, after both agencies published notices in the Federal Register of a single, harmonized statement that can be used by exporters regardless if their goods fall under the jurisdiction of BIS or State.

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Need Export Finance Help? Use an SBA Export Loan Program!

Joseph A. Robinson | September 16, 2016 | Export Finance

Savvy entrepreneurs say, "An order is a gift. Getting paid is business." Putting money into the company till is generally a bit more difficult, risky and time consuming in foreign sales transactions than domestic business transactions because your customer could be 10,000 miles away. This is one of the reasons why some companies hesitate to try exporting.

But there is good news. Exporters can reduce cash flow stress and minimize financial risks plus have access to financial assistance while the transaction is a work in progress or in transit to the overseas consumer.

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Export License Number or Exemption Code Required for All AESDirect Filings

Lisa Nemer | September 14, 2016 | Automated Export System (AES), Shipping Solutions News & Tips

One thing that has come as a surprise to some exporters as they have transitioned to AESDirect via the ACE Portal is that a license number or exemption code is required for all line items, even if they are C33—No License Required items.

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A Beginner’s Guide to Export License Exceptions

Arnesh Roy | September 13, 2016 | Export Regulations

In my previous blog post, I described how to determine if you need an export license by identifying the reasons for control and checking the Commerce Country Chart. In this article I will describe how to determine if there are any export license exceptions available and how to utilize these exceptions.

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Preparing a NAFTA Certificate of Origin for Your Domestic Orders

Sue Senger | September 9, 2016 | NAFTA

The United States has entered into many free trade agreements that benefit both exporters and importers. In order to receive those benefits, exporters must certify that their products qualify with the provisions of those agreements. For example, when an exporter provides a NAFTA Certificate of Origin to their buyer, they are certifying that their goods qualify for reduced or free duty under the North American Free Trade (NAFTA) agreement.

When a shipment occurs within the United States, companies must realize that their domestic shipment may become international. When your domestic customer takes your products and sell them internationally as either a finished product or as a component of a larger product, they must provide their foreign buyer with country of origin information.

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Don't Start Importing or Exporting without First Knowing Your HS Codes

John Goodrich | September 2, 2016 | Import Basics, Export Basics

When you get dressed in the morning, you probably put your pants on first, then socks and shoes. But do you ever put your shoes on first? Probably not because it makes getting your pants on devilishly tricky, not to mention it looks pretty silly wearing your socks on the outside of your shoes.

This is pretty logical stuff—lessons learned by most people as preschoolers. Why, when it comes to trade compliance, are so many exporters walking around with their socks on the outside of their shoes?

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What You Need to Know about the Inland Bill of Lading

David Noah | August 31, 2016 | Export Basics, Export Forms

How much do you know about the inland bill of lading? Even though it’s a straightforward form, it’s important to understand it and make sure you’re completing it correctly. After all, it may be the only transportation document you fill out as an exporter.

Below, I’ll walk you through what the inland bill of lading is, what it does, and four significant reasons to use one.

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