How do I find out which countries are now buying products similar to mine?

What is the best way to do market research?

Should I participate in a trade show?

What is a Carnet?

How do I respond to a foreign inquiry?

Do I need to know a foreign language to be involved in international trade?

How do I find an agent or distributor?

Should I offer an exclusive distributorship for my products?

Do I need a license to export?

Do I need to adapt my product to different standards for exporting?

Are there quotas on how much I can ship?

Do I need a "Certificate of Origin"?

How do I protect my patent trademark, or copyright?

What is a Pro Forma invoice? What is a commercial invoice?

What do "CIF" and "FOB" mean?

Who pays for insurance on shipments?

Does the seller or buyer pay the duty on a shipment?

What is the best way to ship my product?

Do I need a freight forwarder?

How will I be paid? Is payment guaranteed?

What is a Letter of Credit?

Is there financial assistance available for support of my international trade?

What do all these acronyms mean?

Have a question not asked here? Give us a call at (603) 271-8444 or email us at itrc@dred.state.nh.us.

How do I find out which countries are now buying products similar to mine?

With some 200 countries to consider, finding potential customers can be a daunting task. However, there are reports on specific world markets, available from many sources such as the International Trade Data Network, trade associations, and the U.S. Department of Commerce. Also, export statistics broken down by product category or code are available at the Trade Center.

What is the best way to do market research?

There is a wealth of information available to assist you. Statistical data, industry reports, market analyses, and country marketing reports are readily available.

You may wish to start searching for relevant information at the International Trade Resource Center library and/or through the International Trade Data Network, with locations throughout New Hampshire. Trade professionals at the ITRC will be happy to assist you in further locating market research information relative to your specific need.

Another resource recently made available free to the public by the U.S. Department of Commerce is the USATrade website, www.export.gov.

Should I participate in a trade show?

A trade show can be an inexpensive and easy way to expose products internationally. A trade show can help you locate foreign buyers and provide a firsthand account of how the product will fare in the international target market. You will be able to personally assess the competition and meet potential distributors/agents for the product.

To make participation productive, research the trade show ahead of time by reviewing past ones, looking over their attendee list to see that their audience in your target audience.

What is a Carnet?

A carnet (pronounced car-nay) is a customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration, or similar purposes without paying duties or submitting the normal customs documents.

The United States is a member of the ATA (Admission Temporaire) Carnet System, which enables it to issue a carnet valid for one year, allowing a business traveler's product sample access into countries of fellow signatories to the ATA Convention.

For more information: www.uscib.org

How do I respond to a foreign inquiry?

Always respond to all inquiries from potential buyers in a clear and prompt manner. Standards vary greatly from nation to nation, so do not make the mistake of disregarding correspondence simply because it is not in English, or because it contains grammatical or typing errors, or is on inferior quality stationery.

When replying to correspondence, you should supply information on your company, product information, and information on export policies (do not send any banking information even if requested). When writing, be sensitive to international business practices and cultural differences.

Do I need to know a foreign language to be involved in international trade?

English is considered the language of international business. However, that does not totally eliminate potential problems in international transactions when communicating with your foreign counterparts.

When engaging in foreign correspondence, remember the following:

• Use short and simple sentences.
• Avoid idiomatic expressions and slang.
• Be polite.
• Objectively re-read correspondence to check for potential misunderstandings.

How do I find an agent or distributor?

Agents and/or distributors may be identified by utilizing a variety of sources, including trade shows, professional trade organizations, foreign chambers of commerce, industry-specific trade publications, and other organizations.

The ITRC  provides a computerized listing of agents and distributors in the International Trade Data Network and Kompass, in addition to hard copy listings in our library.

Through the U.S. Department of Commerce, located at the ITRC you can get a customized list of agents and distributors or even have one-on-one meetings set up for you with them in-country.

Should I offer an exclusive distributorship for my products?

An exclusive distributorship can be extremely beneficial and even mandatory in some markets. The necessity of exclusivity will depend upon the product being exported, the customer base, and the country of destination.

Before signing an exclusive agreement, make sure you have conducted a thorough onsite and in-country assessment of your distributor's background and capabilities. You may wish to opt for a mutually agreeable trial period with exclusivity.

Do I need a license to export?

Relatively few exports require an export license. Licenses are required in certain situations involving national security, foreign policy, short-supply, nuclear non-proliferation, missile technology, chemical and biological weapons, regional stability, crime control, or terrorist concerns. License requirements are dependent upon an item's technical characteristics, the destination, the end-use, and the end-user, and other activities of the end-user.

The Department of Commerce, Bureau of Industry and Security (BIS) is the primary licensing agency for dual use exports (commercial items which could have military applications). Other departments and agencies have regulatory jurisdiction over certain types of exports and reexports. For example, the State Department licenses the export defense articles and services, while certain nuclear materials and equipment are licensed by the Nuclear Regulatory Commission.

Of those exports and reexports subject to the Export Administration Regulations (EAR), a relatively small percentage require the submission of a license application to the Department of Commerce. License requirements are dependent upon an item's technical characteristics, the destination, the end-use, and the end-user, and other activities of the end-user. You will need the following five facts to determine your obligations under the EAR: What is the item you intend to export or reexport; Where is it going; Who will receive it; What will they do with it; and, What other activities are they involved in?

The first step in determining your license requirements under the EAR is to classify your product by determining its Export Control Classification Number (ECCN) on the Commerce Control List (CCL).

Do I need to adapt my product to different standards for exporting?

Unless you are marketing to international customers with the same characteristics and demands as your domestic customers, you may be required to adapt your product and marketing methods to comply with different regulations, customs, geographic and climate conditions, buyer preferences, or standards of living.

Common considerations include:

• re-engineering or redesign of your product
• packaging
• labeling
• branding or advertising
• ease of product installation
• warranty policies
• methods of after-sales service, perhaps including local technicians or distributors.

Are there quotas on how much I can ship?

A quota is a restriction on the quantity of goods of a specific kind that a country permits to be imported during a specified time, before the imposition of added duties. Both a quota and tariff may be imposed by the importing country for a product or a service. Your overseas partner will be able to tell you if a quota is present in the country of import. To determine if a tariff will be imposed, contact Export.gov (formerly USATrade) at 1-800-USA-TRADE.

Do I need a "Certificate of Origin"?

Certificates of Origin are often required by the importing country. There are different certificates for certain countries. The receiver of your goods will know if a certificate is needed or you can contact our office for this, and other necessary documents needed throughout the world.

How do I protect my patent trademark, or copyright?

First, conduct a copyright/patent search to determine whether your patent or trademark may already be registered.

If it is not already being used, look into registering the copyright/patent/trademark in the foreign country. Requirements for different forms of intellectual property (e.g., copyright, patent, trademark) vary from country to country, as do registering requirements and levels of protection.

What is a Pro Forma invoice? What is a commercial invoice?

Although they may look identical, a pro forma invoice and a commercial invoice serve different purposes.

A pro forma invoice is provided by the seller prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications including weight and size. It is the document that spells out your terms of sale. It can be used by the importer to reserve foreign exchange, apply for a letter of credit, or to obtain pre-import clearance.

A commercial invoice is a document representing a complete record of the business transaction (itemized list of goods shipped) between the exporter and the importer. It is issued usually at the time of shipment.

What do "CIF" and "FOB" mean?

These are two of the internationally accepted commercial terms known as International Commercial Terms or incoterms used in international transactions. The terms specify and define the obligations for the buyer and seller, respectively, for delivering goods in international contracts. It is of the utmost importance that you understand the meanings of the various incoterms when quoting and in subsequent transactions.

For example, CIF stands for Cost, Insurance and Freight - Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. FOB stands for Free On Board - Risk passes to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller.

Who pays for insurance on shipments?

Traditionally, the buyer pays for insurance on shipments. However, the seller may take responsibility to arrange for the purchase of insurance and bill it back to the buyer or importer by itemizing the cost separately. This is another responsibility defined by Incoterms.

Does the seller or buyer pay the duty on a shipment?

In the majority of export shipments, the importer pays the duty on a shipment. In certain circumstances, the exporter may make arrangements with the customs broker to pay the duty. This is another responsibility defined by Incoterms.

What is the best way to ship my product?

Develop a relationship with a good freight forwarder who can advise you on packing, proper documentation, when to use air or sea, and who to contact to make the necessary arrangements to move the product. Familiarize yourself with how international shipments work.

Do I need a freight forwarder?

As a general rule, freight forwarders are needed to export products. Freight forwarders are among the best sources of information and assistance on U.S. export regulations and documentation, shipping methods, and foreign import regulations.

How will I be paid? Is payment guaranteed?

You can be paid in a variety of ways:

• Cash in advance
• Letter of credit
• Some form of documentary collection
• Open account/credit terms for your foreign customer

What is a Letter of Credit?

A Letter of Credit (L/C) is a document issued by a bank on behalf of the buyer to a seller in which the bank substitutes its own credit for that of the buyer. The bank assures payment to the seller upon fulfillment of the documentary conditions specified. A Letter of Credit is an internationally recognized instrument.

Is there financial assistance available for support of my international trade?

Financial assistance programs are available either through the Export-Import Bank of the United States or the Small Business Administration.

Contact the export finance officer at the ITRC for an assessment.

What do all these acronyms mean?

ACH: Automated Clearing House
ADB- : Asian Development Bank
AEP: Asian Environmental Program (USAID program)
AES: Automated Export System
AfDB- : African Development Bank
AFTA: Asian Free Trade Agreement
AID: US Agency for International Development (or USAID)
AIT: American Institute in Taiwan
AmCham- : American Chamber of Commerce
APEC: Asia-Pacific Economic Conference
ASEAN: Association of South East Asian Nations
B/L: Bill of Lading
BENELUX: Belgium, Netherlands and Luxemborg
BIS : Bureau of Industry and Security (part of US Dept. of Commerce)
BISNIS: Business Information Service of the Newly Independent States
BIT: Bilateral Investment Treaty
BOP: Balance of Payments
BXA: Formerly Bureau of Export Administration (part of US Dept. of Commerce). Now BIS- Bureau of Industry and Security
C&F: Cost and Freight
CAFTA-DR: US-Central American/Dominican Republic Free Trade Agreement
CBI: Carribean Basin Intiative
CBW: Chemical/Biological Weapon
CCL: Commerce Control List
CEFTA: Central European Free Trade Area
CFR: Cost & Freight
CG: Consul General
CIF: Cost, Insurance & Freight
CIP: Carriage and Insurance Paid to ( Name Place of Destination)
CoC: Chamber of Commerce
COM: Chief of Mission
CPT: Carraige Paid to (name Place of Destination)
C-TPAT: Customs-Trade Partnership Against Terrorism
CVD: Countervailing Duty
DCM: Deputy Chief of Mission
DCR: Domestic Content Requirement
DDP: Delivered Duty Paid (Name Place of Destination)
DDU: Delivered Duty Unpaid ( Name Place of Destination)
DEC: District Export Council
DFZ: Duty Free Zone
DOC-: Dept. of Commerce
EAC: US Export Assistance Center
EAR: Export Administartion Regulations
EBRD: European Bank for Reconstruction and Development
EC: European Commission or European Community
ECCN: Export Control Classification Number
ECL: Export Control List
EFTA: European Free Trade Association
EU: European Union
EXIM: Export Import Bank of the United States
EXW: Inco term for ExWorks
FAO: UN Food and Agriculture Organization
FAS: Foreign Agricultural Service (part of USDA)/ Free Alongside Ship ( Name Port of Destination)
FCA: Free carrier (Name Place)
FCS: Foreign Commercial Service (part of US Dept. of Commerce)
FDI: Foreign direct investment
FEU: Forty-foot Equivalent Unit
FOB: Inco term for Free on Board
FOREX: Foreign Exchange
FSN: Foreign Service National
FSO: Foreign Service Officer
FSU: Former Soviet Union
FTA: Free trade agreement
FTAA: Free Trade Agreement of the Americas
FTZ: Free Trade Zone
FX: Exchange rate
G7: Group of 7 nations (US, UK, France, Canada, Germany, Italy and Japan)
GATT: General Agreement on Tariffs and Trade
GDP: Gross Domestic Product
GKS: Gold Key Service (by the US Dept of Commerce's Foreign Commercial Service)
GNP: Gross National Product
GSP: Generalized Systems of Preferences/ Gross State Product
GST: Goods and Services Tax
HS: Harmonized System
IADB (or IDB): Inter-American Development Bank
IAEA: International Atomic Energy Agency
IBOR: Interbank Offered Rate
IBRD: International Bank for Reconstruction and Development (World Bank)
IC: Import Certificate
ICC: International Chamber of Commerce
ICJ: International Court of Justice
IESC: International Executive Service Corps
IFC: International Finance Corporation (part of World Bank)
ILO: International Labor Organization
IMF: International Monetary Fund
IML: International Munitions List
INV: Invoice
IPR: Intellectual Property Rights
IsDB: Islamic Development Bank
ISO: International Standards Organization
ITA: International Trade Administration (part of Dept. of Commerce)
ITAR: International Trade in Arms Regulations
ITC: International Trade Commission/International Trade Center/International Transaction Number
JETRO: Japanese External Trade Organization
JIT: Just in Time
JV: Joint Venture
KOTRA: Korean Trade Promotion Corporation
L/C: Letter of Credit
LDC: Less developed country
LIBOR: London Interbank Offered Rate
MDB: multi-lateral development bank
MFN: Most Favored Nation
MIGA: Multilateral Investment Guarantee Agency (part of the World Bank)
MNC: Multinational Corporation
MOU: Memorandum of Understanding
NAFTA: North American Free Trade Agreement
NAICS: North American Industry Classification System
NATO: North Atlantic Treaty Organization
NGO: Non-Governmental Organization
NIC: Newly Industrialized Country
NIS: Newly Independent States
NTB: Non-Tariff Barrier
NTDB: National Trade Data Bank
NTM: New to Market
NVOCC: Nonvessel Operating Common Carrier
OAS: Organization of American States
OAU: Organization of African Unity
OBL: Ocean Bill of Lading
OECD: Organization of Economic Cooperation and Development
OFAC: Office of Foreign Assets Control (part of US Treasury)
OPEC: Organization of Petroleum Exporting Countries
OPIC: Overseas Private Investment Corporation (part of US Government)
PIERS: Port Import/Export Reporing Service
POE: Port of Entry
RWA: Returned without Action
SABIT: Special American Business Internship Training Program (US Government Program)
SACU: Southern African Customs Union
SCO: Senior Commercial Officer
SDR: Special Drawing Rights
SED: Shippers Export Declaration
SEZ: Special Economic Zone
SIC: Standard Industrial Classification Code
SITC: Standard International Trade Classification
SNAP: Simplified Network Application Process (Electronic Commerce License Application)
SWIFT: Society for Worldwide Interbank Financial Telecommunications
TDA: US Trade Development Agency
TEU: Twenty-foot Equivalent Unit
TIC: Trade Information Center (part of US Dept. of Commerce)
TM: Trade Mission
TNC: Transnational Corporation
TOR: Terms of Reference
USAID: US Agency for International Development (or AID)
USCIB: US Council for International Business
USEAC: US Export Assistance Center
USIA: US Information Agency
USML: US Munitions List
USTR: US Trade Representative
UTC: Universal Time Coordinated (Greenwich Mean Time)
VAR: Value Added Reseller
VAT: Value-Added Tax
WCO: World Customs Organization
WTO: World Trade Organization