Matt Deichmann: Majority of the nations exporters are small and medium size firms but some US companies are exporters without even shipping a product, it may sound like a riddle but its serious business according to our guest David Noah, David.
David Noah: Thank you.
Matt Deichmann: Thanks for being here, David is the Founder and President of Shipping Solution a developer of export software, David how can a business get into exporting without shipping.
David Noah: Well the US government controls certain information technology and products. So that it doesn’t fall into the hands of foreign or foreign nationals so that, it could be used against us, against our national security. And that definition of sharing information doesn’t include just the goods that we export but also the information or the technology, the schematics of how to build that good or even the technology used in a production line and how to mass-produce that good.
Matt Deichmann: That’s a great point I think a lot of us you know when we first think about exporting, we imagine things you can put in a box that physical, you know a tangible but this is the information ages and sometimes you know that’s adds or more valuable than what you're putting in the box.
David Noah: Exactly, yes.
Matt Deichmann: What is a—and the word is important to hear, it’s a matter of schematics what is a Deemed Export.
David Noah: A Deemed Export is exactly what is just describing it’s the transfer of the technology, of the information, about a good, about how to produce a good to a foreign nationals. So the products is controlled by the US government and if you need a license to shift the physical goods to a particular country, you need to also then get a license before you can transfer that information about that good to a foreign country. Or a foreign visitor whose in the United States.
Matt Deichmann: So what are the business inmpacts of this deemed goods that we are exporting?
David Noah: Well many companies have foreign students who intern at their companies or foreign workers who worked in the country. If they are from a country that is—to which that product controlled that information is then controlled to this individual as well. So if you have a student worker say from China who is in your office and you can’t ship that good to China without getting the export license you can’t have that student worker involved in the technology behind that product when they're in your office in the United States.
Matt Deichmann: So we need to guard our intellectual property just as we guard our physical property.
David Noah: That’s right; two of our largest client one Northrop Grumman one is a Goodrich Landing Gear. Whenever I go and visit their offices I have to send information about me, at least a week ahead of time and they checked to make sure that I'm in any of the government bad pile list and that I'm a US citizen. Before I can even walked in the door and go in into their plant and talk to people I need to talk too.
Matt Deichmann: It seems like—David in terms of compliance there might be gray area or some fine lines. Where would a business go to make sure that they are compliant?
David Noah: Well I always say that that one of the best place is to start is the US commercial service, if you have questions about export processes fine the local US commercial service office in your area or in the City near you. You could talk to them on phone, you make appointments, call and visit them in their offices, they're here to help you as companies with their exporting and their great resource.
Matt Deichmann: Great information David, thank you.
David Noah: Thank you Matt.
Matt Deichmann: Thinking about our information as well as our intellectual properties, David is the founder and President of Shipping Solutions the developer of export software. You can learn more about his company at www.ShipSolutions.com our company is sbtv.com where small business is our only business.
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