Steps to Take to Process Export - Essay Example

Export Import Research Paper Specify what cultural determinants about this country would be most important to you as you reach a decision about whether or not to do business in this country. International trade is known to be influenced by several socio-economic factors while the cultural factor can be considered to be amongst the most important determinants for the aspect of international trade. International trade (export/import) is supposed to be significantly based on the commonality of culture. The facet of cultural commonality facilitates the people of same culture (in terms religion, languages and values) to establish trust and communicate efficiently. USA is considered to be amongst the world’s most diverse nations consisting of a significant number of ethnic communities and multiple languages. Moreover, USA also played a vital role in shaping the international culture due to its vast market size and the interest of other nations to establish export/import relationship with the country. The business of US has been reasonably dependent on exporting internationally (The state university of New York. 2012). Contextually, owing to its large market size, the US is considered to be one of the most profitable import destinations in the world. The language factor is also measured to be a crucial determinant in relation to the import and export process (Wei, 2007). Hence, the culture of US does not seem to pose a grave impact on the overall process of conducting business. Therefore, US can be considered to be amongst the most favorable destinations for conducting international trade (i.e. export/ import). Specify what governmental, compliance management, and security requirements concerning this country would be most important to your decision. It would be necessary for the concerned business individual to consider certain actualities relating to import and export of goods from and to US. Therefore, the initial step prior to indulging in export related activities would be to get acquainted with the basic requirements levied by the US government in relation to export (specifically the products that an individual plans to export). The next step would relate to complying with the import requirements levied by the partner country importing the product. Conceptually, the US government makes it necessary for the individuals planning to export to obtain an export documentation owing to security reasons along with abiding by the laws with regard to export of goods which are meant to protect the local market as well as to ensure the quality of products to be exported. In the US, the Bureau of Industry and Security is deemed to be liable for implementing Export Administration Regulation (EAR) which pertains to the directives of export activities in the US (United States Department of Agriculture, 2012). The export documentation is considered to be quite essential as it assists in comprehending certain aspects such as the kind of products eligible to be exported and other export criteria regarding the products as well as the country. Globally the countries possess different import requirements associated with documentations and import shipments. The countries engaged in import of goods require documentations in order to ensure that the goods are imported through proper channels and such goods meet the minimum quality standards. Documentations enable the importing country to assess tax and determine the ‘certificate of origin’. Thus, the individual involved in activities relating to import/export need to comply with the requirements of both the exporting and importing nations and must adhere to the relevant laws established by the nations for monitoring such activities (United States Department of Agriculture, 2012). Create action steps you would take to initiate export / import activities in this country. It is considered necessary for every kind of business to obtain licenses from the concerned departments which imply that the same needs to be performed while carrying out import/export activities in US. In the initial step it would be essential for an individual to learn that whether the product selected for the export complies with the regulations of the jurisdiction of the US Department of Commerce or not. Next, the individual would need to classify the item by assessing the US Commerce Control list (Bureau of Industry and Security, 2010). After classifying the item, it is necessary to categorize the item under the Export Control Classification Number (ECCN). The ECCN is known to entail five characters such as 1A991 which identifies the groups in accordance with the items selected for export, for instance 1= computers, 9= animal products and so on. In the fourth step, an individual would need to make certain of the actuality that no-prohibited users are directly or indirectly involved in the export transactions. In case prohibited users are involved then it would require being ascertained that whether an individual can still continue with the export transaction or would need to obtain additional licenses prior to the execution of the transaction (Bureau of Industry and Security, 2010). Finally, an individual can export the item either by using Export Administration Regulations EAR99 or by obtaining a genuine ECCN (Bureau of Industry and Security, 2010). An individual is supposed to be responsible for the payment of custom duty according to the classification of the imported items under the Harmonized Tariff Schedule which is liable for determining all import duties prevailing in USA. Notably, an individual must be aware of the fact that the rates of custom duty may vary with respect to the origin of the item and may have to pay high or low duty charges based on the origin of the item. At times special permits and licensing requirements would be required for importing certain restricted items such as animal products, certain drugs and ammunition along with alcoholic beverages. However, a few critical steps while importing items in US have been stated below (Bureau of Industry and Security, 2010). An individual would need to decide the port of entry initially for carrying out import activities. The decision might be found to be based on the location of the individual within the territory of the country. In the next step, an individual would need to ascertain the duty or tariff value and the legality of the item being intended to be imported. The following step would be related to the process of classification which means that the individual would need to establish the percentage of tax that will be charged from him\her for the value of the item imported. Finally, the individual would need to pay custom duties or tariffs to the concerned government officials in order to take possession or collecting the imported items (Bureau of Industry and Security, 2010). Recommend the governmental and private assistance and resources you would choose to streamline the initiation of business in this country. The United States Commercial Service (USCS) is one of the trade promotion subsidiaries of the International Trade Administration which operates under the United States Department of Commerce. The primary objective of the USCS is to ensure the efficient flow of goods and services from the US. It also aims to promote and help the domestic institutions to find and conduct businesses with qualified international partners (United States Trade Representative, 2012). An individual may receive vital information relating to export/import of goods from this centre and thereby assisting an individual to overcome some of the barriers related to such relevant activities to a significant extent. US Export Assistance Center has been contributing sincerely to meet the needs of the individual and businesses involved in export/import activities. Such centers have been established in major cities throughout the US. These centers operate under the US Department of Commerce, and the US Export –Import Bank along with other privatized and public organizations (U.S. Small Business Administration, 2012). Assistance from this center would also greatly help an individual to perform the relevant and necessary activities as established and specified by the concerned authorities. Additionally, the US Trade and Development Agency is learnt to render its services jointly with the individual firms and service associations to promote and identify the opportunities and hurdles relating to international trade. Furthermore, the department of Commerce ‘s Trade Compliance Centre (TCC) ensures foreign compliance with the export and import activities as well as closely monitors and evaluates the operation of the trade activities with its foreign partners (Export Gov, 2012). Therefore, the above mentioned centers would provide the necessary assistance and resources for streamlining the initiation of an import/export business by an individual in this country. References Bureau of Industry and Security. (2010). Summary of steps to take to process your export. Retrieved from http://www.bis.doc.gov/licensing/exportingbasics.htm Export. Gov. (2012). Export advice. Retrieved from http://export.gov/basicguide/eg_main_043077.asp The state university of New York. (2012). The dominance of the American market. Culture and Globalization, pp. 2-16. U.S. Small Business Administration. (2012). U.S. export assistance centers. Retrieved from http://www.sba.gov/content/us-export-assistance-centers United States Trade Representative. (2012). United States commercial service. Retrieved from http://www.ustr.gov/trade-topics/trade-toolbox/export-assistance United States Department of Agriculture. (2012). Shipping, documentation and requirements. Retrieved from http://www.fas.usda.gov/agx/ship_doc_req/ship_doc_req.asp Wei, Y. (2007). Cultural factors. Retrieved from http://doc.utwente.nl/58090/1/thesis_Wei.pdf Read More