A: The Export Ready Program is a 1-2 day program designed to prepare North Carolina businesses for global competition in the international marketplace. This progam is a combined effort of the N.C. Department of Commerce, the Small Business Center Network of the North Carolina Community College System, and the North Carolina World Trade Association. For details, call us at (919) 733-7193.

A Basic Guide to Exporting is a useful publication available from the U.S. Government Printing Office (GPO) toll-free at (866) 512-1800  for $5.50 and from the U.S. Department of Commerce’s National Technical Information Service (NTIS)  ($38.95 for a downloadable product, $48.00 as a customized CD or $59.50 as a paper copy) (stock number PB95-109799) at (703) 605-6000 or (800) 553-6847.

NTIS also offers its customers a RUSH Service option for an additional fee.

Another useful resource, Breaking Into the Trade Game, is available for free from the Small Business Administration (SBA). To contact your local SBA office, call (704) 334-6563.

A: Prior to exporting to a new region, it is wise to research the market to determine:

• Is there an export market for the products and services?
• What are the barriers to entry to a particular market?
• Which are the best markets and their size?
• Which products or services are best suited for export?
• What is the most effective method for entering a market?
• Who are the major participants in the market?
• What is the nature of the products and services offered in the market?
• Do the customers in the market demand special support for products or services?
• Are any of your major customers a force in any of the target markets?
• Do the products, services, packaging, advertising, or literature require modification to meet market needs?

A: Resources include:

• North Carolina Department of Commerce/International Trade Division (including North Carolina’s foreign offices)
• U.S. Department of Commerce Trade Specialists
• District Export Councils
• North Carolina and U.S. Department of Agriculture
• North Carolina World Trade Association
• World Trade Center North Carolina
• Small Business Administration
• Regional, state and local trade development agencies
• Trade development sections of professional and trade groups.

Call the N.C. Department of Commerce at 919-733-7193 to obtain contact information on the above agencies and groups.

A: Most companies that have not succeeded in exporting, regardless of their target market, product or service, have made one, or possibly several of the following ten mistakes that you’ll want to avoid including:

1. Failed to develop an international marketing plan before beginning to export.
2. Lacked total commitment of top management in the initial stages of exporting.
3. Selected overseas representatives too quickly without thorough investigation.
4. Chased orders around the world instead of using a systematic marketing plan.
5. Neglected new export customers when their domestic market was booming.
6. Failed to treat international and domestic representatives on an equal basis.
7. Refused to modify products to meet foreign regulations and local preferences.
8. Did not print sales, service and warranty messages in local languages.
9. Refused to use export management companies (EMC) in less promising markets.
10. Failed to consider licensing or joint venture agreements in more restrictive markets.

(Source: The Export Institute USA , Ask the Experts, Category One.)

A: Administered by the U. S. Department of Commerce and other government agencies, the Export Regulations of the United States are designed to accomplish the following three objectives:

(1) Support national security: prohibits the export of items that could affect the military potential of countries unfriendly or hostile to the United States.

(2) Support foreign policy: prohibits the export of items that could affect the execution of declared international obligations, i.e., trade embargoes.

(3) Protect resources in short supply: prohibits the export of natural resources that could affect national military potential or create inflationary pressures.

Penalties for violation of U. S. Export Regulations are severe. For companies, they range from fines up to $1,000,000 or five times the value of the exports involved - whichever is greater. For individuals, they can be as high as $250,000 in fines, or imprisonment for up to ten years - or both.

Other penalties that may apply are seizure of goods and suspension of exporting privileges. Another negative factor is the adverse publicity that may result when the news media and government agencies report and publicize court decisions and settlements of Export Regulations violations. (Source: The Export Institute USA, Ask the Experts, Category Ten.)

A : U.S. federal government seminars on the Export Administration Regulations (EARs) are offered by the Bureau of Industry and Security (BIS), an office in the U.S. Department of Commerce. Seminars range in length from one-half day to two days. Topics include:

• Export licensing requirements
• Export management systems
• Technical data handling
• Encryption of export information.

You may obtain a copy of the schedule online at http://www.bis.doc.gov/SeminarsAndTraining/elsem.htm. We recommend that you reserve a space as soon as possible. These seminars are very popular and are usually sold out in advance.

A : This Act makes it a crime for U. S. individuals and companies, including their subsidiaries, branches or affiliates, to knowingly offer payment or promise of payment of money or anything else of value to foreign government officials to secure business. It does not apply to bribes offered to non-government officials, although there may be local laws that could result in prosecution.

As a manufacturer and active exporter located in the United States, your company is subject to all of the provisions of the FCPA. Because of the many requirements of the Act, it is impossible to outline all of them here. We recommend that you refer to Chapter Six of the Export Sales and Marketing Manual titled Export Regulations (Kuldip, where can they get this document?) where the FCPA is presented in an easy-to-understand format.

It is important that you fully understand the requirements of this Act because, if a violation occurs, it could result in a fine of up to $2,000,000 USD for corporations, $100,000 USD for individuals, imprisonment of up to 5 years, or a combination of a fine and imprisonment. (Source: The Export Institute, Ask the Experts, Category Ten.)