The Trade Bridge Blog

Cultural Exchange Alive & Threatened

The National Performing Arts Convention (NPAC) just closed in Denver and I returned home awed by the number of live performers and performance groups that have plans for overseas tours and performances. This, in spite of all the concern I heard about the difficulties getting visa and the horror stories from previous trips. NPAC brought together choruses, orchestras, opera, theater and dance companies for the second time in 5 years. They discussed all aspects of arts in America.

I was there promoting carnets for Corporation for International Business and had the chance to ask just about everyone I spoke to whether they toured or did business overseas. I estimate that 3 out of 4 people said "yes we plan to tour to -fill in the blank- in 2009 or 10 or 11." The other quarter said "no" but asked if we could help them with visas for importing overseas performers they want to bring to the US.

The common message in all the conversation was that national and international security initiatives were putting up additional barriers to international cultural exchange. Visas to come the the US have made accurately scheduling performances almost impossible because of the uncertainty of getting the visa in time to meet the marketing and promotion deadlines. Visas have become more expensive, harder to get and a highly sought after commodity.

International tours, for US troupes travelling with tools-of-the trade i.e. instruments, props, sets, costumes or equipment, are threatened by the pending 10+2 US security initiative. This will require harmonized tariff numbers on carnets for these tools-of-the trade and thus create unnecessary barriers to cultural exhange unless carnets are allowed the requested waiver. Said waiver was requested by the League of American Orchestras and the United States Council for International Business and is still in play.

Of course the weakened dollar also can make international touring out of reach for cash-strapped non-profit perfomance groups. But there's not much we can do about the US economic situation on a macro level.

So cultural exchange is alive and threatened. Ideas?

Trade Resources Proliferating

Proliferation can mean "an idea whose time has come." I came across two interesting trade resources today and was reminded of a third. Check out GlobalGoodsTV for online video featuring international trade news and analysis AND product videos. This is brand new and could be a great way to get online video exposure for importers and exporters. Then my friend, Huyen Bui of DI-Central, sent me a link to a super intermediary, B2X, which specializes in acting as importer of record for importers that want to bring in products from China, virtually risk free. I'm anxious to find out how their platform actually performs as they progress. And that lead me to the international trade expert, journalist and publisher, Michael White, and his podcast, the International Business Report. Michael is a trailblazer and innovator in using media to expand the cause of international trade, to educate and to inform. I can almost imagine no borders as I surf betwixt and between these sites.

Getting an A+ on Your AES Compliance Review

Jerry Greenwell, Ombudsman for the Census Foreign Trade Division, delivered an informative and entertaining session at the ICPA annual gathering recently. A few key points...

• Don't get confused by the lack of coordination between Incoterms and export regs etc. The only thing to understand is whether the export is buyer or seller-controlled.
• New on his presentation agenda...AES Compliance Review Program...help to avoid costly penalties and being sent to the principal's office, Office of Export Enforcement (ital added for emphasis).
• Best Practices to get an A+ on your compliance review...(I love this one), "Keep your contact data at the Census Foreign Trade Division up-to-date." Duh!
• Voluntary Self-Disclosure is also new...need to report a violation or potential violation? Score brownie points by self-disclosing.
• Routed export transactions (where the overseas buyer controls the movement of the cargo) are not good business practice.
• Option 4, post-departure filing is still under moratorium, "...and probabaly will not re-open..." (This is Jerry opinion.)

Jerry knows his stuff and is available for trainings for the cost of travel and a per diem. If you want to contact him directly call 301-763-6975 or e-mail him.

SME's & Emerging Markets Overseas

If you are interested in exporting to emerging markets, check out the joint initiative by the Small Business Association (SBA) and the Overseas Private Investment Corporation (OPIC): OPIC Small Business Center. Our friend, the respected U.S. Rep. Donald Manzullo (R-Illinois 16th) helped put this one together. Thanks again, Don, for your relentless support of U.S. small business.

SBA Trade Programs Act Approved by Committee - Sometimes I Feel So Republican

Sometimes I feel so Republican. (You know, "keep taxes low to stimulate the economy" vs. "increase taxes to pay for programs to stimulate the economy.")

Call me "old-fashioned" but I would like to know that taxpayers' hard earned dollars are actually funding something worthwhile. And that's why I can't quite decide whether I like this amendment to the Small Business Act or not.

The House Small Business Committee just approved an amendment to the Small Business Act that appears to be a big coup for future and beginner SME exporters: "SBA Trade Programs Act of 2007 - To amend the Small Business Act to improve trade programs, and for other purposes." It covers the gamut of govenmental support from finance to trade protection. The intent of expanding U.S. exports via the SME exporter is laudable. I'm just not convinced this is the way to do it.

The amendment will cost taxpayers money to implement and maintain. Will the cost be worth the return to our economy? What is the expected return to our economy? None of this information appears in the amendment so it's impossible to make an informed decision about whether or not to support the amendment.

As an advocate for SME exporters it seems like a slam dunk for Trade Bridge to come out in favor of this amendment. It does, after all, appear to provide significant help to SMEs that want to expand into global markets. But is it prudent to support the amendment on what may simply be, a noble goal? If monies are appropriated (which the amendment calls for) and the amendment doesn't do anything to either improve the export capabilities of SMEs or the U.S. economy it will be wasted time, effort and money.

I'm wary of the government's ability to design and implement these changes effectively and efficiently when the accountability seems either nonexistent or an afterthought. (Again, call me "old-fashioned.")

For now though, I'm keeping an open mind while I conduct more research. Check back here regularly as I will continue to update and post information as I get it.

Expert Export Advice

Expert advice is often hard to come by or too costly for SMEs. But the Internet is a wealth of information on practically any subject including exports. SME exporters may find the Export Institute's Ask the Experts page useful not only to get their questions answered but also to read the Q&A from previous users. For example, "How much do we add to our domestic price to establish export prices? might be a question that piques your interest to investigate further....