Matt Deichmann: Small firms lead the United States in Exporting going global can be a great way to grow a company but the strategy is not for every enterprise. We welcome David Noah, David welcome to sbtv.
David Noah: Thank you very much.
Matt Deichmann: David is a shipping expert and he suggests that there are five questions every entrepreneur should answer before shipping products internationally. David is the President and Founder of Shipping Solutions the developer of export software. David what's the first question that a small business owner should asked and then of course then answers.
David Noah: Well the first thing they need to know is what the proper classification for their products is. If a company is involved in international trade, they're familiar with the harmonized tariff code of their product but in addition, for exporters they need to know what the export control classification number is for their products that what determines whether or not a product requires and export license before it can be shift internationally.
Matt Deichmann: So if I needed to find out exactly what category, what classification may export product falls under, where do I go to find out that information.
David Noah: All that information is part of the export administration regulations and you can find it online if you go to US bureau of industry and securities website, which is part of the department of commerce. You can find that information online.
Matt Deichmann: Okay, David what's the second important question for a potential exporter, do you know who your costumer is? You need to know, how their going to use your products and make sure that it’s not something that going to be use that cold harm our country in some other regard.
David Noah: And that’s really a great tip for any small businessperson knows your costumer its one of the primary principles of business.
Matt Deichmann: And what's the third question you think owner should review before going global.
David Noah: Well there is no reason get into business if you're not going to get paid for what you’re selling. So how are you going to get paid and this is a case where maybe you need to spend sometime talking to at your local banker the international department to make sure that you’re going to get paid for your good in the timely matter.
Matt Deichmann: David you suggest that small business owners, exporters, know about ENCO terms, so what an ENCO term is and why is this so important?
David Noah: Well US companies are familiar with the uniform commercial code terms for domestic sales FOB is the term that almost everyone uses. Well international business uses a different set of terms called ENCO terms that control when the responsibility for the good transfer from the seller to the buyer. A company may use the term FOB domestically which means one thing if you use FOB internationally means entirely a different thing and by using that term you’re assuming extra responsibility and cost for transferring your good to that foreign costumer.
Matt Deichmann: So if I'm just starting out and I'm overwhelmed by all this information in terms, is there another resource where we can go to find out the ENCO terms.
David Noah: Sure, the US commercial service is a place I always recommend to start. Again, your international banker is going to know about ENCO terms and that maybe part of the letter of creditor some other form of payment that you use. There a lot of resources, online that can help you with ENCO terms.
Matt Deichmann: Finally David you recommend asking about the appropriate export documents, where do you suggest entrepreneurs start to research and answer this question.
David Noah: Well if you're just getting started in international trade the best place to start is to talk to your frat forwarder they're the company that’s going to help you arrange the transportation, the logistic part of that if you're into international shipment. They can help you with the basics of export documentation and even for a fee; they can complete those documents for you.
Now ones you're getting into the process more its something that you make and wanting to consider bringing in house just because there is a lot of regulations and the potential problems that can be caused by incorrect documents. But to start certainly take to your frat forwarder they can help with those.
Matt Deichmann: Five great questions and five great answers, David Noah, thank you very much for joining us from sbtv.com, David is the President and Founder of shipping solutions and developer of export software. And you can learn more about his company at their website, which is www.ShipSolutions.com thanks for joining us at sbtv.com where small business is our only business.
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