first steps into international business a case study steps into international... · first steps...
TRANSCRIPT
First Steps Into
International Business
A Case Study
First Steps Into International
Business – A Case Study
Jon Kleinman – Procurement Manager
Michelle Westrich – Controller
Deborah Kurvach – Compliance Manager
Klein Steel Service Inc.
• Metal Service Center with 6 locations
throughout NY and customers throughout
the country --- and the world!
• More than metal – processing capability
significantly increased in past 10 years
• Award winning and nationally recognized
Klein Steel Service Inc.
Why would you want to do
business internationally?
- Lessen dependence on
regional economy
- Resources not available here
- Exposure to new markets
- Support existing customer
requirements
How did this happen? - Customer requirements made us
interested in trade compliance
NAFTA Certificate of Origin
Conflict Minerals
International Traffic And Arms Regulation (ITAR)
Then a customer asked….
“Can you import this for us?”
Customer Request
• Customer needed specific
product from foreign country
• Customer requested shipping
finished product to another
country
Considerations (Before You
Decide if You Want to Enter
International Business)
• Business processes in place
• Well established in your current
market
• Resources to support international
requirements
Planning
• Build the team
• Understand the opportunity
• SWOT
• What don’t you know
• Who knows it
• Identify 3rd parties who can help
Procurement Considerations
• Identify a Freight Forwarding partner
• Qualifying potential foreign suppliers
• Calculate total cost Cost of goods
Shipping & Delivery
Duties & Taxes
Insurance
Other fees
Procurement Considerations
• Lead time for incoming material
• Determine port of entry
• Are there terminal charges at the
port?
• Fees to be aware of – anti-dumping
duties, Harbor maintenance fee
• Can you unload containers safely?
Finance Considerations Insurance
Power of Attorney
Customs Bond
Payment terms
Payment
Wire transfers
Talk to your bank
Compliance & Documentation
• Denied Parties List -
http://export.gov/ecr/eg_main_023148.asp
• Memorandum For Record – records the logic
of why you did something a certain way
(Product info to support customs declaration,
Binding Rulings, etc.)
• HTS & Schedule B Numbers
• Order/Contract
• Airway bills/Bill of Lading
• Selecting the correct Incoterms
Compliance & Documentation
• Merchandise Value
• Marking requirements
• Packaging requirements
• Create a process to retain and index all
your documents!
February 2012 – original customer discussion
Mar – May 2012 – Research & qualify foreign supplier
June 2012 - Interview potential freight forwarding partners & selection
July 2012
• Customer places order with Klein Steel
• Customer contract drafted
August 2012
• Attorney review & approval of customer contract
• Plan order – incoterms- importer security form worksheet
• Place order from foreign supplier
September 2012
• Weekly communication with foreign supplier
October 2012
• Receive imported material
Timeline
- Everything went very smoothly
- Customer extremely satisfied
- Repeat business
- Request to transport to end user
(more business!)
- Opens the door for similar
opportunities with other customers
Results
• Select the right Freight Forwarding
partner
• Use resources at IBC, Commerce and
local businesses
• Document, document, document
• Create a checklist of steps & who is
responsible
Take Aways
Questions
Get your Upstate NY Trade Conference passport signed by at least 10 exhibitors for a chance to win the
following prizes, which will be raffled off and announced after the closing keynote
Exhibitors: 1 GRE/IBC/NYSERDA
2 Time Warner Cable Business Class
3 Advanced Language Translation
4 Freed Maxick CPAs, P.C.
5 Wells Fargo Bank, N.A.
6 KCI Engineering of New York, PC
7 JR Language Translation Services Inc.
8 RIT Saunders College of Business
9 Speed Global Services
10 RBS Citizens
11 FBI
12 US Small Business Administration
13 Mohawk Global Logistics
14 School of Business Administration and Economics,
The College at Brockport
15 Gallagher Benefit Services
16 U.S. Department of Commerce
17 U.S. Customs and Border Patrol
18 County of Monroe Industrial Development Agency (COMIDA)
Procurement Technical Assistance Center (PTAC)
19 Employer Support of the National Guard & Reserves (ESGR)
Exhibitor Passport Prizes:
• Advanced Language Translation, Inc.
$500 Gift Certificate towards translation services
• Hong Wah Restaurant – $10 Gift Certificate
• Mario's Via Abruzzi Restaurant – (2)
$50 Gift Certificates
• Mohawk Global Logistics
$100 Gift Card to Black & Blue Restaurant
• Richardson’s Canal House Restaurant – (2)
$25 Gift Certificates
• Speed Global Services
Dictionary of International Trade
& 50% off 2nd international shipment
• The Cheesecake Factory – $25 Gift Certificate
• The Spa at the Del Monte
50 minute Massage
• Wegmans – $100 Gift Card
• Wilmorite Inc. – $50 Mall Gift Card