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World Trader - February11
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Feb/Mar 2011
Volume 8 | Issue 1

World Trader

From the President

Upcoming Events

EU Regulation 1875/2006 Entry Summary Declaration (ENS)
by Kevin Johnson

Recap of the National Export Initiative’s New Markets, New Jobs Tour
by John S. Wilson

MN, U.S. Officials Promote Small-Business Exports
by Christa Meland

India: Steps for Business Success
by Mari McClafferty

MGTA Announces New International Trade Scholarship
by Mari McClafferty

Registration for Annual Trade Symposium Now Open

Treasury Publishes International Boycott Country List

Thank You Outgoing MGTA Board Members

MGTA Volunteer: Paula Farell, Nativa Yerba Mate

Export Licensing, Enforcement Statistics for FY 2010 in BIS Annual Report

Who Said it?


From the President

by Mark Toth, MGTA President

Mark TothGreetings from the "desk” of the MGTA President,

Neither I, nor the past MGTA Presidents, have or had a desk. We, as our fellow board members and committee volunteers, all give our time and energy to make MGTA what it is today. Our desk is simply "where we are,” when representing MGTA. I wish to thank all the volunteers for your time and energy and for the opportunity to work with such giving people. We help the organization grow as a resource for all that can redeem benefits from it: importers, exporters and the entities that move freight around the world.

Let 2011 begin on a positive note. Here is to hoping the economy snaps back and our colleagues and friends in Global Trade have steady work and food on the table.

2010 was a strong year for MGTA despite all odds. We weathered the storm of worldwide financial meltdown and managed to actually grow membership base (over 500 members). Our attempt to fulfill our name of "Midwest” Global Trade Association connected us with several Midwest organizations that we title as "cooperating organizations.”

Our target area is NW Wisconsin, Iowa, Minnesota and the Dakotas. These groups are advertised on our website calendar with mutually beneficial events. In turn their websites and newsletters do likewise. At times we actually plan to join forces to share a speaker or co-sponsor events. Working to promote a government event like the recent "National Export Initiative Small Business Tour” is an example.

The MGTA budget is made up of membership dues, seminar/forum registrations and the very important sponsorships. A new opportunity for the website and the newsletter is advertising. Please consider this with your advertising budget in 2011.

The website for MGTA is a great tool that is adding new features all the time. Please frequent our calendar for all events.

The Communications Committee has added a job board for seekers and employers. Soon there will be a bookmark menu with links to commonly used government websites, steamship lines, airlines, truckers, rail lines, warehouses/terminals and freight forwarders. We want MGTA to be the one stop shop on the World Wide Web. By the way, here is a little known fact: MGTA has discounts on its website for members under an area called "mall.” There are many familiar stores to choose from.

The Board will meet next month in a planning session for short and long term goals of MGTA. We welcome any input to steer the organization. Please email suggestions to mark.toth@mgta.org. We discuss the financials, membership, the future seminar and forum topics, social calendar events and ways to fulfill our mission statement.

Again I thank you all for giving me the opportunity to serve as the 2011 President.

I would like to thank the outgoing board members for their years of service. The term is three years per our bylaws, and I hope the years were fruitful. I wish to acknowledge Mari McClafferty (2010 President); Colleen Erickson, Target Corp (Event Committee); Whitney Docken, Target Corp (Event Committee); and Scott Raes, UPS (Membership Committee). Thanks also to non-voting members Sandy Taylor, Hyundai (2009 President); and a perpetual volunteer that is not locked into a term, Mark McNeil, Lindquist & Vennum PLLP (Legal Counsel).

Back to my desk,

Mark Toth, MGTA President

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Upcoming Events

MGTA April Seminar – Entering Foreign Markets: Doing it For the Right Reasons, Learning from Others' Mistakes

April 11, 2011
2:30-4:30 pm

American businesses of all sizes routinely commit scarce executive and monetary resources to entering foreign markets—often before they have researched those markets as thoroughly as they might do for a domestic opportunity. Many strong, successful, mature American companies have developed a love/hate relationship with their international divisions, often due to the fact that the American domestic leadership fails to understand the challenges and opportunities of overseas markets. Register now

Save the Date: Padelford River Boat Cruise on the Mississippi

May 12, 2011
5:30-8:00 pm

Check in from 5:00-5:45 pm. The cruise disembarks promptly at 6:00 pm. More details coming soon! Learn more

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EU Regulation 1875/2006 Entry Summary Declaration (ENS)

by Kevin Johnson, Best Buy Co., Inc.

Effective January 1, 2011, EU Regulation 1875/2006 – Entry Summary Declaration (ENS) came into effect. This regulation establishes that all ocean and air cargo (excluding small parcel shipments) entering the European Union (including Norway and Switzerland) requires an Entry Summary Declaration (ENS) to be submitted at minimum 24 hours prior to origin vessel loading for ocean freight. Timing requirements for air shipment filings are a minimum of four hours prior to arrival at the first airport within the EU for long haul flights (with duration over four hours) or upon departure for short haul flights. This includes cargo destined to the EU countries or transiting through the EU as freight remaining on board cargo (FROB).

The Entry Summary Declaration is transmitted to the EU authorities through the services of your US Freight Forwarder. To ensure your shipments are not delayed, be sure to submit timely and accurate shipment data to your Freight Forwarder prior to the cutoff windows provided above. It is highly recommended that the information be clearly communicated via formal shipping instructions and that you include all of the required data elements for your respective mode of transport.

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Recap of the National Export Initiative’s New Markets, New Jobs Tour

by John S. Wilson, UPS

The National Export Initiative (NEI) rolled into the University of Minnesota’s McNamara Alumni Center in Minneapolis on February 17 in the first stop on the "New Markets, New Jobs" tour. The NEI was tasked by President Barack Obama to double exports of US-made goods by 2014.

An impressive group of speakers and presenters outlined federal and state resources available to aid exporters headlined by US Commerce Secretary Gary Locke and Minnesota Governor Mark Dayton. Secretary Locke stated, "The tour’s objective is for small and medium sized businesses to sell more goods and services abroad so they can create more jobs here at home.” This message was reiterated several times throughout the day’s agenda as it was noted that one in three US manufacturing jobs is tied to exports. Governor Dayton expressed the world’s recognition of Minnesotan innovation and reinforced the Minnesota Trade Office’s availability to assist exporters with information and consulting.



MGTA Board Members Jim Moore, John Novak, Mari McClafferty, and John Wilson (L to R).

Small business leaders from around the state provided many exporting lessons learned and success stories in a panel discussion. The panelists shared the Department of Commerce support they’ve received on everything from international buyer matchmaking services to trade financing. Afternoon breakout sessions on the three leading export destinations for the US (Canada, China, and Mexico) conveyed their market landscapes and various entry strategies. Another breakout session provided detailed information on trade financing and insurance opportunities available from the Small Business Administration and Export-Import Bank. Minnesota companies shared their exporting insights during these sessions, which added color and practicality.

According to Secretary Locke, the NEI is off to a good start as 2010 exports increased 17 percent, yet only 1 percent of US companies export and of those that do, 58 percent export to a single country. As Secretary Locke summed up in his closing remarks, "Small and medium sized business must lead the way. When you succeed, the entire economy succeeds.”

For more information, visit trade.gov or positivelyminnesota.gov.

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MN, U.S. Officials Promote Small-Business Exports

by Christa Meland, Twin Cities Business

Minneapolis was the first stop on the federal "New Markets, New Jobs” tour—and local government officials joined U.S. leaders to promote the growth of small-business exports.

The tour was a national outreach effort that aims to help small- and medium-sized businesses that want to break into new export markets abroad. Both Governor Mark Dayton and Minneapolis Mayor R.T. Rybak participated in the February 17 tour kickoff in Minneapolis—as did U.S. Commerce Secretary Gary Locke, U.S. Trade Representative Ron Kirk, U.S. Small Business Administration Administrator Karen Mills, and Export-Import Bank Chairman Fred Hochberg.

"It’s fitting that the Obama Administration has chosen Minneapolis to kick off this important tour,” Rybak said in a statement. "Minneapolis–Saint Paul has long been home to globally-oriented companies that have sustained our local economy by exporting, and as a global metropolitan area, we are also home to many dynamic small businesses that are well positioned to take advantage of this important initiative. As President Obama said in the State of the Union address, ‘the more we export, the more jobs we create here at home.’”

Conferences at each tour stop will feature trade resource panels on key export topics—including federal resources available to businesses to begin exporting or expand exports, materials and resources to guide sales abroad, and lessons that local businesses have learned and applied to successfully expand into new markets and grow.

The tour is part of President Obama’s national export initiative, which was launched a year ago. The goal behind it is to double U.S. exports within a five-year period in order to create several million new jobs.

After the tour kicked off in Minneapolis, there will be additional stops in California, Louisiana, and Delaware.

Minnesota has an active export market. Figures from the fourth quarter of 2010 aren’t yet available, but the state’s manufacturers exported $4.4 billion worth of goods during the third quarter—representing a 17 percent year-over-year increase. Meanwhile, U.S. exports were up by the exact same percentage in the first 11 months of 2010 to $1.67 trillion.

A recent survey by the U.S. International Trade Commission found that small- and medium-sized manufacturers that exported their products in 2009 had more than twice the total revenue of their non-exporting counterparts. The group that exports experienced 37 percent revenue growth between 2005 and 2009, while revenue for the non-exporting group declined by 7 percent over the same period.

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India: Steps for Business Success

by Mari McClafferty


Dr. Rama Yelkur, UWEU and NWITA President (L) and Mari McClafferty.

On February 25, the University of Wisconsin – Eau Claire and the Northern Wisconsin International Trade Association (NWITA) (cooperating organizations with the MGTA) held an insightful seminar on what it takes to compete successfully in India. Sachin Tuli with the Wisconsin School of Business provided an excellent overview with promising growth trends – 40 percent of the population in India is the target for US products and services.

Jeff Pharris, Director at Harley-Davidson, painted a picture of what it was like to ride a Harley across the unbeaten path from New Delhi to Pakistan. After looking at some of the trade barriers he asked the question: Why even bother? The sales and profits have allowed the company to increase international sales from 20 percent in 2005 to 35 percent in 2010. The number of dealers exceeded US dealers for
the first time in 2010. Jeff reported sales to India have been a great hedge against domestic dependence and enabled us to perform to shareholders expectations.

"Our mission is to serve loyal and passionate motorcycle riders all over the globe,” Jeff said. A panel of other successful businesses confirmed that sales in India have proven successful for them. US Commercial Services can provide assistance at www.trade.gov – Country Commercial Guide, India.

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MGTA Announces New International Trade Scholarship

by Mari McClafferty

In recognition of its responsibility to promote and provide international trade education, the MGTA has established an annual scholarship for students of international trade.

Scholarships awarded (minimum $1,000) will be paid directly to the institution, in the name of the awardee.

Criteria for eligibility:

  • Applicants must have student status for 2011-2012 in an accredited US college or university with at least a 3.0 Grade Point Average or equivalent B average.
  • Applicants must be currently enrolled and pursuing either an undergraduate or graduate degree in International Trade studies, such as political science, international relations, economics, international business, international law, international finance, etc.

For application details, click here.

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Registration for Annual Trade Symposium Now Open

Registration to attend U.S. Customs and Border Protection’s 2011 Trade Symposium, which will be held April 13-14 in Washington, D.C., is now available online. The symposium will also be available via a live webcast and recorded for subsequent on-demand viewing over the Internet.

In addition, CBP has announced the specific topics for the sessions to be held at the symposium. General sessions will cover interagency cooperation at the border, pilot programs and initiatives for account management, enhancing air cargo security, and creating a smarter and safer border. Breakout sessions will address agriculture, CBP’s trade strategy, in-bond, intellectual property rights, partnership programs, the role of customs brokers, the National Export Initiative and foreign-trade zones, and current and future capabilities of the Automated Commercial Environment. However, these sessions will be scheduled according to demand and some may not be offered if there is insufficient interest.

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Treasury Publishes International Boycott Country List

The Treasury Department has published a current list of countries that may require participation in, or cooperation with, an international boycott. The list includes Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen. Treasury notes that Iraq is not included on this list but that its status with respect to future lists remains under review. Read more

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Thank You to Outgoing MGTA Board Members

Whitney Docken, Target
Member since 2005, Events Committee, Secretary 2009, Board 2008-2010

"Being a part of the MGTA has allowed me to form relationships with individuals and companies across the industry. I particularly enjoy networking at the Annual Reception and annual golf tournament. The MGTA is comprised of dynamic members that have a passion for what they do and also like to have fun!”

Colleen Erickson, Target
Member since 2008, Events Committee, Board 2008-2010

"Being an MGTA member has expanded my network within the trade community.”

Mari McClafferty
Member since 1983, Commuications Committee, Board 2006-2008, Board 2008-2010, VP 2009, President 2010

"What makes the MGTA shine is the consistency over the years with educational programs and website/newsletter updates.”

Scott Raes, UPS
Member since 2007, Membership Committee, Board 2008-2010

"The MGTA provides wonderful opportunities for members to remain connected to the new requirement and regulations of global trade. So, there are definite benefits to be reaped from participating, whether as a volunteer for a MGTA event or committee, or as a MTGA board member: information, education, involvement, meeting people who share similar interests and concerns. But more than that, volunteering for the MGTA, and especially serving on the Board, is a way to give back to the association.”


Also, a special thanks to 2010 Communications Chair Jonathan Pixler. Welcome 2011 Communications Chair Jason Lloyd and Board Liaison Kevin Johnson.

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MGTA Volunteer: Paula Farell, Nativa Yerba Mate

Q: Tell us a little bit about yourself, Nativa Yerba Mate, Inc. and the primary markets you serve?
A:
In 1999, I launched my first self-designed and optimized website targeted for "yerba mate" which was just gaining popularity in the U.S. Nativa Yerba Mate was born in order to help promote and differentiate my blend's strengths, as well as to present the first-hand content I was able to compile since my immediate family is from Uruguay, where it has been heavily consumed for centuries.

Nativa Yerba Mate is now sold through hundreds of health food chains, co-ops and coffeeshops around the country, as well as consumers ordering direct, some for over 10 years. All customers have been "organically sourced" in that I have never had to run a paid advertising campaign.

Q: You recently attended the MGTA's "South America's Hidden Gems: Business Opportunities with Bolivia, Columbia, Ecuador and Uruguay" event. What was your initial reason for attending this event?
A:
I was asked to be on the Importers Panel for the event "South America's Hidden Gems: Business Opportunities with Bolivia, Columbia, Ecuador, and Uruguay."

Q: Did your attendance at this event meet your expectations of what you wanted to get out of it?
A:
The event was very well-managed and executed in a welcoming business-casual format. I didn't know what to expect since this was my first MGTA event.

Q: Has Nativa Yerba Mate entered any new markets and/or gained any new customers as a result of attending this event?
A:
Nativa has not gained anything tangible as of yet, but it always helps to get the word out there. The knowledge I gained from the event will benefit the company. Most interesting to me was the section on financing Accounts Receivable, which will prove crucial in deciding when to take the leap into national distribution and the resulting high-dollar advertising program investments which go along with it.

Q: What are Nativa Yerba Mate's biggest challenges when exporting product to a foreign market?
A:
Nativa does not export at the moment, but I can imagine the challenges are very similar to the import-side. There are always cultural challenges, but since I speak fluent Spanish and some Portuguese this enables me to resolve these and establish a crucial sense of trust with all parties. This is particularily important when bringing up quality control issues, which latin people tend to take personally if one is not careful.

As the importer, my logistics and information systems background has been essential to avoiding any number of problems which can render the container's products damaged or unsellable. This knowledge has also been instrumental in achieving "100% in stock" status since the company was founded, and to developing processes for all Fulfillment (sub-contracted), Purchasing, Sales, Marketing Programs, Data Architecture, and full-compliance with a multitude of federal and state regulators' requirements.

Q: Are you planning on attending any future MGTA events?
A:
I attended the January 20 event, I became a member, and I would love to serve the group in whatever capacity makes most sense.

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Export Licensing, Enforcement Statistics for FY 2010 in BIS Annual Report

Source ST&R's WorldTrade

The Bureau of Industry and Security recently submitted to Congress its annual report for fiscal year 2010. This report includes information and statistics on regulatory changes, export licensing and enforcement, and public outreach. Highlights include the following.

Licensing and Administrative Actions

  • BIS processed 21,660 export license applications valued at approximately $66.2 billion (up 6% from FY 2009) and approved 18,020 (83%), returned 3,513 without action (16%) and denied 127 (less than 1%). The average processing time was 29 days.
  • For calendar year 2009, U.S. companies exported $2.8 billion worth of licensed items (of which 6.8% were exported under a special comprehensive license) and $12.8 billion under a license exception, representing 0.3% and 1.2%, respectively, of overall U.S. trade.
  • Between 2007 and 2009, companies exported approximately 53.2% of the commodities they were authorized to export under BIS licenses.
  • BIS processed 7,360 classification request applications in an average of 42 days.
  • BIS approved approximately 1,600 licenses for encryption items and processed several encryption licensing arrangements for major exporters that provide broad authorization for unlimited exports and re-exports of more sensitive encryption items that continue to require licenses for export to government end-users in most countries. The increased use of ELAs resulted in close to a 10% decrease in license applications processed.
  • BIS provided recommendations to the State Department on 769 commodity jurisdiction requests in an average of 36 days.
    Enforcement
  • BIS conducted seven on-site reviews and two desk audits of holders of special comprehensive licenses, which are issued to qualified exporters and consignees in place of individual export licenses. BIS also conducted 18 Export Management and Compliance Program reviews of corporate written compliance programs.
  • BIS completed approximately 101 licensing determinations, which contribute to criminal investigations of unlawful exports of sensitive items, for the Federal Bureau of Investigation.
  • BIS completed 505 enforcement license determinations, which are used to support Customs and BIS enforcement actions connected with potential violations of the Export Administration Regulations, in an average of 27 days.
  • BIS investigations resulted in the criminal conviction of 31 individuals and businesses for export violations, down from 33 in FY 2009. The penalties for these convictions came to $12.3 million in criminal fines, more than $2 million in forfeitures and more than 522 months of imprisonment, compared to $455,409 in criminal fines, more than $1.5 million in forfeitures and 886 months of imprisonment in FY 2009.
  • BIS investigations resulted in the completion of 53 administrative cases against individuals and businesses and more than $25.4 million in administrative penalties, compared to 54 cases and more than $14.5 million in administrative penalties in FY 2009.
  • Of the 53 closed cases, 14 involved anti-boycott violations that resulted in penalties of $380,975, up from three cases and $124,475 in penalties in FY 2009. Fourteen companies agreed to pay civil penalties totaling $380,975 to settle allegations that they violated the anti-boycott provisions of the EAR. BIS responded to 1,020 requests from companies for guidance on compliance with the anti-boycott regulations.
  • BIS completed 708 end-use checks in over 30 countries, including 67 pre-license checks and 641 post-shipment verifications. To conduct these checks, BIS maintains export control officers in U.S. embassies and consulates in Moscow, Beijing, Hong Kong, New Delhi, Abu Dhabi and Singapore. Approximately 55% of the checks were conducted by ECOs, while the rest were conducted by Office of Export Enforcement special agents deployed from the U.S. and Foreign Commercial Service officers and support personnel stationed at various U.S. embassies.
  • Other preventive enforcement actions included the issuance of 215 warning letters, 88 detentions, 28 seizures, temporary denial orders against three companies and three individuals, renewals of TDOs previously issued against seven companies, and six other denial orders.

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Do you know an MGTA member who was recently promoted or hired to an import/export company? Share the good news with your industry colleagues by emailing JLloyd@scoular.com.

Who Said it?

"In matters of truth and justice, there is no difference between large and small problems, for issues concerning the treatment of people are all the same."
– Albert Einstein

"Everybody can be great... because anybody can serve. You don't have to have a college degree to serve. You don't have to make your subject and verb agree to serve. You only need a heart full of grace, a soul generated by love."
– Martin Luther King Jr.

"If the human race wishes to have a prolonged and indefinite period of material prosperity, they have only got to behave in a peaceful and helpful way toward one another."
– Winston Churchill

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Thank you Newsletter Sponsor:

Port of Seattle

2011 Annual Sponsors:

 

BremerZepol

CH RobinsonJacobson Companies
HMMNeville Peterson LLP

© 2011 Midwest Global Trade Association. All Rights Reserved.
World Trader is distributed bi-monthly to MGTA members.
Articles submitted by our membership do not express the views of MGTA or the Board of Directors. If you would like to submit an article for publication in the World Trader, please contact the MGTA office at office@mgta.org.

Midwest Global Trade Association
1000 Westgate Drive, Ste. 252 | St. Paul, MN 55114
p 651.290.7482 | f 651.290.2266 | office@mgta.org |
www.mgta.org


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