What is a NAFTA Statement?
Generally speaking, commerical goods exported from the U.S. to Canada or Mexico that are claiming reduced NAFTA duties are required to have a formal certificate of origin availalbe at the time of entry into either country. If the exported shipment is under USD 1,000.00, no formal certificate of origin is required; however, the invoice or document accompanying the shipment needs to contain a signed statement:

I hereby certify that the good covered by this shipment qualifies as an originating good for the purposes of preferential tariff treatment under the NAFTA.

Check One:
( ) Producer
( ) Exporter
( ) Importer
( ) Agent
_________________
Name
_________________
Title
_________________
Address
_________________
Signature and Date

Non-Commerical importations do not require the Fformal Certificate of Origin or written/signed statement, regardless of value.

Where can I find good resources on international trade show information?
Tscentral’s web site, www.tscentral.com, provides a comprehensive resource for participants in all business and professional events whether it’s trade shows, seminars or conventions. In addition, the Country Commercial Guides from the U.S. Dept. of Commerce usually contains country specific trade show information at the end of each country guide. The WTC research staff regularly accesses both of these resources.

I am traveling to a foreign country for business in the near future. Do I need a visa to travel?
There are a number of resources where you can find this information. One location is in the The Exporters Encyclopaedia – Dun & Bradstreet (WTC Library). Another would be on the Foreign Embassy web sites. Many of the embassies and consulates provide visa specific information directly on their web sites. The travel agency who booked your trip should advise you of any pre-trip requirements.

How can I find a good mailing list of prospects in another country?
There are numerous resources available to identify lists of prospective customers, distributors, sales representatives, etc. A few of the resources that we would recommend would be www.kompass.com, www.ameinfo.com and the contact lists at the back of a country commercial guide available from the U.S. Dept. of Commerce. Kompass is a worldwide database with close to 1.5 million companies and 23 million product and service references. Some information on this web site can be accessed free of charge. World Trade Center Saint Louis has a subscription to Kompass. This is a tool that is used on a regular basis with the research staff. Ameinfo is a useful Middle East business resource database with more than 200,000 companies from 14 Middle East countries.

Do I need a license to export?
Many exporters do not realize that they automatically possess the license to export for most countries of the world. The majority do not need to apply for a particular license since their product is automatically issued a “general license” by the government. No paperwork is required for this type of license. Should a product not fall under the general licensing category, then a “validated license” must be obtained by the government. This license is a very specific grant of authority issued by the U.S. government to a company or exporter regarding a particular product an its destination. Products that require a license are usually those that are of a strategic nature, in short supply or are highly technical goods. Products destined for a country on which the U.S. has placed an embargo or has foreign policy concerns are also subject to a license.

There are three main questions that determine whether your product requires an export license:

1. What is the destination of the export? Check the list of countries in the Export Administration Regulations, www.bxa.doc.gov.
2. What is being exported? Check the commodity control list.
3. Are there any special restrictions?

I've never exported before. What is a good resource for "getting started"?
There are many good books available, however, www.tradeport.org is the resource we recommend most often.

Where can I find general market information on a particular country?
We use many hard-bound and electronic resources, including:
The Exporter's Encyclopedia
Craigheads
Country Commercial Guides from the U.S. Dept. of Commerce

I do a lot of business with Canada. Where can I find comprehensive information on Doing Business in Canada?
This site is filled with very helpful information: www.strategis.ic.gc.ca

What is a Letter of Credit?
An instrument issued by a bank at the request of its customer (the buyer) that assures payment to the beneficiary (the seller) provided that the seller meets the terms and conditions as stated in the letter of credit. A letter of credit usually requires specified documents relating to the shipment of goods or providing of services.

What is a Standby Letter of Credit?
An instrument requiring a bank to assure payment to a third party beneficiary in the event of nonpayment or nonperformance by its customer. It has a wide range of uses including 1) guarantee of payment for goods or services 2) surety 3) escrow 4) bid/performance bond and 5) credit enhancement.

What is the best way to pay an invoice from a foreign country?
By an international Bank Draft or Wire Transfer
1) International Bank Draft is drawn on a bank in the seller's country. The draft would be issued to you and you would mail it to the Payee. The Payee could then deposit it at his bank.
2) A wire transfer would electronically remit funds to the Beneficiary's bank for credit to his account.

When travelling to a foreign country, is it better to take cash/travelers cheques or use my credit card?
Credit card. Today, virtually all credit card companies provide competitive rates on your foreign denominated purchases (FYI, the exchange rate used on your credit card charges is set by the credit card company, not the issuing bank). You should also take some cash, but just enough to get through initial tipping and transportation.

FAQ'S provided by UPS, WORLD TRADE CENTER Saint Louis Patron Client

What are duties and taxes? Why are they important?
Duties and taxes are fees charged by the importing country's government most often based on the monetary value of the commodities shipped. Customs agencies collect duties and taxes to generate revenue and protect the local economy.

Why do I have to fill out extra paperwork on my International shipment?
Customs agencies in foreign countries require all shipments that have a monetry value to include a pro forma or commerical invoice. It informs them who the importer is and what is being imported. Customs uses this paperwork to calculate the duties and taxes due to the government. It is the shipper's responsibility to complete all export documentation completely and correctly, and submit the documentation with the shipment.

What is an SED?
An SED is a Shippers Export Declaration. It is a standard U.S. government form used to keep statistics on export shipments valued over USD 2,500.00. The form is also required when any commodity to be shipped requires an export license, regardless of the value. The SED also has to be on yellow or buff paper. If the commodity has a license exemption, a Destination Control Statement should be placed on both the SED and the invoice.

Some shippers file electronically with the U.S. government, if so, they are given an AES Transaction number. The shipper would need to place that number in the SED portion of the Worldwide Services Waybill. If a shipper has questions about electronic filing, they will need to contact their local customs office.

Two copies of the SED are required when the value of any single Schedule B commodity is over USD 2,500.00.