International Trade Blog

Product classification codes, which are used by the Census Bureau through the Automated Export System (AES) for trade statistic purposes and are also used at the country of import for assessing duties and taxes, are required for most exports.

For some exporters, getting started with product classification can be difficult. “I need a Schedule B number. How do I find the right number?” “Should I just start Googling?” “Is there recommended place to start?” are all questions we’ve been asked, and today, we’ll address them.

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新年快乐

Even if you can’t read the above characters, there’s a good chance their meaning is significant to you. The translation, “Happy Chinese New Year,” is a greeting shared by more than 1.3 billion Chinese citizens and millions of others across the globe who celebrate the holiday.

Chinese New Year has a significant impact on exporters because Chinese factories, ports and many other businesses in China actually close down during the holiday. Territories with significant Chinese populations, including Macau, Taiwan, Singapore, Thailand, Indonesia, Malaysia, Mauritius and Philippines are also affected by the holiday; production and manpower come to a halt, slowing down international trade as well.

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We live in a scary world. We have to protect our country, particularly when it comes to exporting defense-related products including weaponry and military equipment (and components, parts, accessories, etc.) to other countries.

By regulating the export of these products, the U.S. State Department’s Directorate of Defense Trade Controls (DDTC) helps protect U.S. national security so this sensitive information and technology does not get into the wrong hands. Details are found primarily within the International Traffic in Arms Regulations (ITAR).

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Export compliance isn’t one big thing—it’s a million little things. That’s why it’s important to make sure you have a solid understanding of the the components; if you miss one, you could set off a chain reaction.

While this list is by no means exhaustive, by making sure you thoroughly understand these 10 terms, you can save yourself a lot of trouble (and potentially, a lot of money).

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I sometimes get calls from exporters who have been asked by their international customers for their AEO number for import customs clearance.

The calls are all very similar:

What is an AEO code, and how do I find out what ours is?

My short answer:

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Whatever you think about President Donald Trump's trade agenda, there's no denying that 2018 has been an unusual year for international trade.

We've seen new tariffs on steel and aluminum imports (with some on-again, off-again exemptions); renegotiation of the US-Korea Free Trade Agreement (KORUS) and the North American Free Trade Agreement (NAFTA, soon to be known as USMCA—The US-Mexico-Canada Agreement); imposition of broad new tariffs against China (and vice versa); and a whole lot of heated rhetoric. It's hard to keep track of all the changes!

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Are you ready and waiting for your next export compliance audit?

“Now, that’s a dumb question,” you might be thinking. “No one wants—much less eagerly awaits—the imposing entry of Office of Export Enforcement officials into their offices.”

And of course, you’re right! While you certainly don’t look forward to an export compliance audit, it’s absolutely something you should prepare for.

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In today's global supply chain, it's rare for a product to come entirely from one place. Unless you’re a farmer who’s planting seeds grown in the U.S. and harvested from your own land or a miner who's extracting elements from the earth, it’s likely that at your goods contain parts from multiple countries or that you make a part that is one piece of a larger good.

For this reason, it’s crucial that you determine which of your parts and finished goods are subject to U.S. export regulations. These regulations might make it illegal for your products to be shipped to certain individuals and organizations or to certain countries. In other cases, you may be required to obtain an export license before you, or another party, can ship the goods to a certain destination.

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“I am spending way too much time creating exporting documents—half my day is gone by the time I finish creating all the required forms.”

“Creating export forms is tedious! Just one little mistake or inaccuracy on one form can hold up our goods (or worse)—and with all the forms I have to make, there’s a lot of room for error!”

“I’m panicking because I don’t know if our company is in compliance with export regulations for every shipment we do.”

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Do you want to go bungee jumping?

Perhaps this seems like a strange question, but stay with me. Are people who bungee jump crazy? Or are they just having fun and seeking an adrenaline rush?

No matter your opinion, the point is that bungee jumpers have assessed the risk and determined that it is acceptable.

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