International Trade Blog

At some point the North American Free Trade Agreement (NAFTA) might be replaced by the United States-Mexico-Canada Agreement (USMCA), although at this point we don't know if and when that will happen.

As of now, however, NAFTA is still the free trade agreement in force between the three countries. You should continue to do everything your company is currently doing to take advantage of duty-free trade under NAFTA.

But the decision to participate in NAFTA is not always a slam dunk. Because of its complexity and specificity, NAFTA can become more burdensome than it is useful for those tasked with computing whether or not their goods are eligible for preferential duty rates.

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To succeed in international trade and win sales against foreign competitors, exporters must offer their customers attractive sales terms supported by the appropriate payment methods.

Since getting paid in full and on time is the ultimate goal for each export sale, you need to choose the appropriate payment method that minimizes payment risk while also accommodating the needs of the buyer.

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So, you want to know how to become an exporter. Congratulations on choosing to embark on this journey!

Now, take a deep breath: There’s a lot you need to know in order to become successful in the world of international trade. This article will help you get started.

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I’ve been reading article after article about the future of freight forwarding in the face of A.P. Moeller-Maersk’s and CGA CGM Group's approach to integrated services along with the widely available technology we employ in standard business transactions.

Maersk and CGA CGM have acquired large freight forwarder and customs broker organizations to create an end-to-end, port-to-port service profile for their core business, container shipping. Maersk acquired customs broker Vandegrift, Inc. to complement its acquisition of Damco Sea & Air; CGA CGM acquired CEVA Logistics.

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One of the most costly mishaps an exporter can face is to get their goods to the destination and realize that something was overlooked. Either they made a mistake, the deal was structured incorrectly, or responsibility was overlooked.

Often, this happens because sellers get seduced by the thought of a sale and put on blinders for the realities of it. Unfortunately, they end up in a difficult and costly situation because they didn’t think about what steps needed to be taken.

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How do you prove you own your car? You prove ownership with an official looking document called the title.

How do you prove you own a shipment of goods? Well, it’s a title of sorts, but it’s called a bill of lading.

The bill of lading (BoL or B/L) always signifies or declares the shipment’s ultimate owner (consignee).

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Ask anyone on the street to define "export," and you'll almost certainly get an answer, and it will probably be accurate (but not complete). Read more at Surprise! You May Be an Exporter Without Even Knowing It.

Ask those same people to define "reexport," and you're bound to get some interesting (and confusing) answers. Really, go try it. It's an interesting way to spend your lunch hour.

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For many exporters, Canada is the first country they decide to export to, and it’s easy to see why trade with our neighbors to the north is a smart business decision. According to these facts from the U.S. Trade Representative:

• Canada was the United States' largest goods export market in 2018.
• U.S. exports of goods to Canada were $298.7 billion in 2018. That same year, U.S. exports of services were $61.8 billion.
• According to the Department of Commerce, U.S. exports of goods and services to Canada supported an estimated 1.6 million jobs in 2015 (the latest data available).

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If your company exports goods valued at more than $2,500 to anywhere other than Canada or exports goods that require an export license, U.S. Foreign Trade Regulations (FTR) require that you file your export information electronically through the Automated Export System (AES).

The Census Bureau uses this information to calculate export statistics and shares it with U.S. Customs and Border Protection (CBP) to ensure compliance with U.S. export regulations.

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Unfortunately, once both parties agree to the method of payment, sellers frequently don’t give much thought to the actual terms and conditions that are contained in the letter of credit. This is a mistake, and it can lead to a world of problems.

As the seller, you should pay particular attention to the international bill of lading requirements in the letter of credit.

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