slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
AIM Quarterly Seminar July 24, 2008 Market Access Issues: Due Diligence Resources PowerPoint Presentation
Download Presentation
AIM Quarterly Seminar July 24, 2008 Market Access Issues: Due Diligence Resources

Loading in 2 Seconds...

play fullscreen
1 / 35

AIM Quarterly Seminar July 24, 2008 Market Access Issues: Due Diligence Resources - PowerPoint PPT Presentation


  • 91 Views
  • Uploaded on

Virginia Economic Development Partnership Division of International Trade. AIM Quarterly Seminar July 24, 2008 Market Access Issues: Due Diligence Resources. Control/Mitigate Risks Related to: Country (Market) Export Compliance

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'AIM Quarterly Seminar July 24, 2008 Market Access Issues: Due Diligence Resources' - sook


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Virginia Economic Development Partnership Division of International Trade

AIM Quarterly Seminar

July 24, 2008

Market Access Issues:

Due Diligence Resources

due diligence doing your homework
Control/Mitigate Risks Related to:

Country (Market)

Export Compliance

Customer- Know Your Buyer

Bank/Finance

What is Due Diligence?

Due Diligence = Doing Your Homework

Due Diligence is a Continuous Process

slide3
What is the target market’s overall risk?

Corruption (Foreign Corrupt Practices Act)

http://www.usdoj.gov/criminal/fraud/fcpa/

Capital Controls (getting paid)

Private Property Protection

Intellectual Property Protection

Does the US have a Trade Embargo/Sanctions against the country?

Macroeconomic Conditions (defaults)

Verifying Country Risk

slide4

Verifying Country Risk

Resources (free)

www.export.gov Country Commercial Guides

www.countryrisk.com Portal of free online resources

www.trading-safely.com Industry-specific risks for over 150 countries

www.globalcorruptionreport.org Transparency International annual publication

www.worldbank.org

slide5
Who Regulates US Exports?

US Dept of Commerce

Bureau of Industry & Security (BIS)

Export Administration Regulations (EAR)

U.S. State Department

U.S. Dept of Agriculture

U.S. Drug Enforcement Administration

Who Will Receive Your Product?

Make sure individual buyer, company, and/or country not prohibited

What Will Your Product be Used for?

Dual-use goods

Export Compliance- Know Your Buyer

slide6

Export Compliance- Know Your Buyer

  • Red Flags
  • Customer or its address is similar to someone on a list
  • Product usage does not fit buyer’s business
  • Customer willing to pay cash for expensive items
  • Customer unfamiliar with product details
  • Routine installation or training denied by customer
  • Customer evasive regarding whether product is for domestic use, export, or re-export
slide7
US Government

VEDP

Subscriptions

Program Partners

Overseas Trade Managers

Other Resources: Free and Fee

Export Compliance- Know Your Buyer

Resource Review

slide8
Denied Persons List – by name of company and/or person

http://www.bis.doc.gov/dpl/thedeniallist.asp

Unverified List – by name of company and/or person

http://www.bis.doc.gov/Enforcement/UnverifiedList/unverified_parties.html

Entity List – by country, then company name or address

http://www.access.gpo.gov/bis/ear/pdf/744spir.pdf

Specially Designated Nationals List – by name of company and/or person

Embargoed Countries List- by country and type of sanction imposed

www.treas.gov/offices/eotffc/ofac

Debarred List- by name of company and/or person

http://www.pmddtc.state.gov/debar059.htm

Nonproliferation Sanctions- by name of person, entity, or government

http://www.state.gov/t/isn/c15231.htm

General Order 3 to Part 736 (page 9)- by name of company and/or person

http://www.access.gpo.gov/bis/ear/pdf/736.pdf

Export Compliance- Know Your Buyer

“Bad Guy” Lists

All conveniently located on ONE website! www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm

slide9

Export Compliance- Know Your Buyer

One Website Has All Lists

www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm

slide17

Export Compliance- Know Your Buyer

One Website Has All Lists

www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm

slide18

**NOTE**

Some freight forwarders offer to verify all government lists for a specific client/buyer for a fee. Check with them for rates and availability.

vedp subscriptions fee
Hoovers

Dunn & Bradstreet Company

Limited financial information on some companies

By company name

5.7 million entries

Mainly US and UK

Kompass

By company name

1.9 M in 70 countries

Interdata and Other Online Networks

By company name

Self-reporting

Export Compliance- Know Your Buyer

VEDP Subscriptions (fee)
slide20

Export Compliance- Know Your Buyer

VEDP Subscriptions- Hoovers

Also can include: Recent sales data, key players, major competitors

slide21

Export Compliance- Know Your Buyer

VEDP Subscriptions- Kompass

Codes unique to Kompass help specify a company’s product(s)

program partners
Law Firm

LECLAIR RYAN Peer Segelke: peer.segelke@leclairryan.com

Banking

SUNTRUST: Marsha Sompayrac: marsha.sompayrac@suntrust.comHai nah Ellison: hai-nah.ellison@suntrust.com

Web Optimization

ACTIVE MEDIA Laszlo Horvath: laszlo@activemedia.com

Language Services

TNB LANGUAGE Ralph Bosen: tnb_ent@yahoo.com

Export Compliance- Know Your Buyer

Program Partners

TNB LANGUAGE SERVICE

slide23
Freight Forwarding, Logistics

CVI Mike Coleman:mcoleman@cvinternational.com

Venetia Huffman:vhuffman@cvinternational.com

Linda Norman: lnorman@cvinternational.com

U.S.Export Compliance

ALLEGHENY James Loux:jloux@acustomsbroker.com

Susan Kovach: skovach@acustomsbroker.com

Strategic Planning

CAPSTONE John Dearing: jdearing@capstonestrategic.com

Gretchen Johnson: gjohnson@capstonestrategic.com

Partners may be able to provide:

Access to other databases

Foreign offices for reference

Industry experience & expertise

Export Compliance- Know Your Buyer

vedp overseas trade managers
One-on-One Export Marketing and Counseling*

Five VEDP offices worldwide

China, Japan, South Korea, Mexico, Brazil

Able to contact companies directly

May have experience with target company

*Availability of OTMs will depend on VEDP trade schedule

Export Compliance- Know Your Buyer

VEDP Overseas Trade Managers
other resources
U.S. Department of Commerce

International Company Profile (≈$300-500)

http://www.buyusa.gov/malaysia/en/intl_company_profile.html

American Chamber of Commerce

Foreign Affiliates - 94 AmChams in 82 countries

http://www.uschamber.com/international

Business & Trade Associations

List on MAP #4B for target market

Export Compliance- Know Your Buyer

Other Resources
slide26

Export Compliance- Know Your Buyer

Other Resources

Foreign company titles (Inc, llc, etc.)

www.export911.com/e911/export/export.htm#xForeign

Background checks (fee):

www.marsh.com

www.krollworldwide.com/services/screening/international/

www.dnb.com/us

www.icsworld.com/background_investigations_checks.asp

www.coface-usa.com

verifying financial risk
Verifying Financial Risk

Contracts with Clients/Buyers

INCOTerms

Foreign Currency Exchange

Overseas Banks

Taxes

slide28

Verifying Financial Risk

Contracts

Are there common pitfalls to contracts in your target market?

Goal: A contract with opportunity for legal recourse and clearly defined roles for both parties

Are there legal issues surrounding representative or distributor agreements? Does the target market uphold intellectual property rights?

Goal: Avoid an overseas relationship that leaves you open to liability

slide29

Verifying Financial Risk

INCOTerms

Universal set of rules for conducting international trade

Exporter communicates INCO Term details before sale

Goal: Negotiate with client/buyer for the least risky INCOTerms for the sale

verifying financial risk1
Verifying Financial Risk

Foreign Currency Exchange

Can US$ circulate in the country? Does it ever leave?

If you’re being paid in another currency, what is the exchange rate? What bank fees will be applied in the U.S. to convert it?

Goal: Make sure that your sale terms can be upheld in your target market, and get paid what you negotiated!

verifying financial risk2
Verifying Financial Risk

Overseas Banks

Determine the banking structure of the target market. Is your client/buyer’s bank large or small?

  • Risk receivable insurance
  • US bank acceptance of wire transfer, intermediaries
verifying financial risk3
Verifying Financial Risk

Taxes

Do VAT or GST taxes apply? What kind of incentives are in place in the U.S. to recover taxes?

  • Frequent changes to tax law, incentives for recovery available
  • Staff / offices overseas could lead to taxes spent overseas
verifying financial risk4
Verifying Financial Risk

Resources (free)

The Economist.com

www.economist.com

International Monetary Fund

www.imf.org

World Bank

www.worldbank.org

due diligence doing your homework1
Control/Mitigate Risks Related to:

Country (Market)

Export Compliance

Customer- Know Your Buyer

Bank/Finance

What is Due Diligence?

Due Diligence = Doing Your Homework

Due Diligence is a Continuous Process