your business has joined the world of … · up to $1.2 billion in fines and penalties . zte export...

YOUR BUSINESS HAS JOINED THE WORLD OF

ECOMMERCE…..NOW WHAT?? PRESENTED BY MOHAWK GLOBAL TRADE ADVISORS

DECISIONS, DECISIONS….

ARE YOU READY TO FACE THE WORLD?

Who Are You?

DOMESTIC

UNITED STATES & CANADA

NORTH AMERICA & EUROPE

GL OBAL

Impacts

• Freight Methods

• Payment Options

• Freight Terms / Incoterms

• Technical Support

• Responsibilities

How BIS Views eCommerce

• Orders processed using the internet with tangible delivery of goods;

• Intangible downloads and releases of technology and software.

• The various services performed during transactions; and

• Transfer of funds to certain entities and prohibited activities

Because… exporting is a privilege, not a right.

support positive growth.

non-compliance does have a cost.

Up To $1.2 Billion in Fines and Penalties

ZTE Export Fines = 489,000 Google results

Loss of valid business to US corporations

Telco Industry compliance put to test

Key Exporter Responsib ilit ies

• Classification

• Valuation

• Free Trade Agreements

• Marking

• Partner Government Agencies

• Documentation

• Recordkeeping

• Procedures

• Due Diligence

Export Due Diligence

What Where Who End Use License

Watch f or Red Flags

Most Common Docs

Commercia l Invoice

• key document

• to get paid or pay shipper

• to arrange import/export

• errors = delays, fees, and

seizures

COMPLETE DESCRIPTION TELLS A STORY

BAD AT 1400

BETTER Compressor part

BEST Steel housing section, part of a compressor

Common Invoice Errors

• ECCN or USML category

• country of origin

• value and currency

• destination control statement

Packing List

• more detail than domestic

packing list

• confirms shipment details

Shipper’s Let ter of Inst ruct ion (SLI)

• freight forwarders

• related parties

• routed transaction

• license no. /exemption

• ECCN

• limited POA

Cert ificate of Origin

• establishes country of origin

• needed for reduced

tariff rates

• required by certain countries

• be SURE of origin

• NAFTA

Web Site Ideas

• Limit available countries in order form • Publish standard terms and conditions • Export control language

• Tie web to ERP and compliance screening software

Kristen Morneau, LCHB, Senior Trade Advisor

(978) 430-7210 kmorneau@mohawkglobalta.com www.mohawkglobalta.com

Kr isten Morneau has worked in internat ional t rade compliance and logist ics for over two decades. Her dut ies at MGTA include impor t and expor t gap analysis, compliance manual development , product classificat ion, and ITAR l icensing assistance.