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Page 1: For Placeholder Only. Cover - Channeling RealityBanamex-Accival (Banacci) and WorldCom, announced last January the beginning of operations in corporate local telephony in Mexico. This

Cover

For Placeholder Only.Cover art supplied on disk.

Page 2: For Placeholder Only. Cover - Channeling RealityBanamex-Accival (Banacci) and WorldCom, announced last January the beginning of operations in corporate local telephony in Mexico. This

INTERNET & TELECOMMUNICATIONS

TRADE MISSION TO GERMANY

ADVERTISEMENT

MISSION DESCRIPTIONThe International Trade Administration’s Office of Information Technologies and Office of TelecommunicationsTechnologies will lead a trade mission to Munich, Frankfurt and either Berlin or Hamburg from November 4-9, 2001. It willinclude representatives from a variety of U.S. firms specializing in products and services for the Internet and telecommuni-cations who are interested in entering or expanding their presence in Germany.

GERMAN MARKETTelecommunications: Germany has the largest telecommunications market in Europe and the third largest globally, with anestimated value of $53 billion for telecom services and $13 billion for telecom equipment during the year 2000. The mar-ket is expected to continue to grow at its current rate of 5-10%, fueled by ongoing liberalization, continued expansion ofmobile communications and broadband and the convergence of information and communication technologies.

Internet Technologies: Germany boasts the largest number of Internet users in Europe and ranks eighth worldwide inInternet penetration. Twenty-five million Germans were using the Internet at the end of April 2001, a number expected torise to 47 million by the end of 2003 and a recent survey reports that over 90% of German businesses use the Internet.Demand for Internet technologies and services is growing rapidly due to the liberalization of telecommunications servicesand need for German businesses to leverage Internet technologies as they move into e-commerce.

WHY PARTICIPATE?Business Contacts: � One-on-one business meetings custom tailored to your products/services, market objectives and type of representation/

partnership you are seeking

� Business networking receptions at each stop allow you to meet with government and industry representatives andprospective business partners

Market Exposure:� Publicity in Germany provided through advance press releases, press coverage and other promotional materials

Logistical Support:� Advance and on-site support provided by staff in Germany and Washington, DC

� Advance and on-site briefings given by government and industry experts on the German Internet and telecom marketsand business climate

Participation fee: $2950 • Closing date: September 7, 2001

MUNICH•FRANKFURT•BERLIN OR HAMBURGNOVEMBER 4-9, 2001

FOR MORE INFORMATION, PLEASE CONTACT DANIELLE KRIZ OR MYLES DENNY-BROWN OR FAX THIS FORM TO 202.482.3002 OR 202.482.5834

Contact Name: ____________________________________________ Phone Number:________________________________

Title: ______________________________________________________ Email: ________________________________________

Company Name: __________________________________________ Company URL:________________________________

Company Address: ________________________________________ Products/Services: ____________________________

CONTACT INFORMATIONDanielle KrizU.S. Department of Commerce Office of Information TechnologiesTel: 202.482.0568 Fax: [email protected]://exportIT.ita.doc.gov

Myles Denny-BrownU.S. Department of CommerceOffice of Telecommunications TechnologiesTel: 202.482.0398 Fax: [email protected]://telecom.ita.doc.gov

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U.S. Consumer Goods: 18Exporting the Good LifeBy Office of Consumer Goods

GLOBAL NEWS LINEBriefs on Brazil, Mexico, IDB, Denmark, 4Albania, Russia, Korea, and World BankPrepared with the assistance of the U.S. & Foreign Commercial Service

SUCCESS STORIESNothing to Fear But Fear Itself: 6 Hydraulics Parts FirmTakes thePlunge into New Marketsby Erin Butler

NEWS FROM COMMERCEMaking a Group Effort 8 by Mark Wells, Julia Vanover and Debbie Dirr

Import Administration: 10 Leveling Trade’s Playing Fieldby Office of Policy, Import Administration

NNEEWW OOPPPPOORRTTUUNNIITTIIEESS

TABLE OF CONTENTS

August 2001 EXPORT AMERICA 1

CO

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EN

TS

August 2001 Volume 2 Number 10 http://exportamerica.doc.gov

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TECHNICAL ADVICEExport Markets Developing 13a Penchant for Accuracyby Mark Bello

ASK THE TRADE INFORMATION CENTER 16Issues with Software Exportation by Dava Kunneman and Jim Golsen

INSIDERS CORNERTrade Events Schedule: Upcoming Trade Events 24Schedule: September 2001 - January 2002 Prepared with the assistance of the U.S. & Foreign Commercial Service

A Look at U.S. Exports 28Prepared by the Office of Trade & Economic Analysis, Trade Development

FEDERAL SCOOPStreamlining Trade: 32U.S. Customs Goes High-Techby Virginia Noordewier

COVER BY DANIEL STAFFORD

TABLE OF CONTENTS

U.S. DEPARTMENT OF COMMERCEInternational Trade Administration

Donald L. EvansSecretary of Commerce

Grant AldonasUnder Secretary

for International Trade

Greg JenkinsDirector of Public Affairs

Cory ChurchesEditor

John WardContributing Editor

Frank DeaselPrinting Specialist

Blake CooperEditorial Intern

Aaron ThompsonEditorial Intern

Published monthly by the U.S.

Department of Commerce,Washington, D.C.

Annual subscription rate is $65. All subscription inquiriesshould be sent to the GovernmentPrinting Office, Superintendent of Documents, Mail Stop: SSOM,Washington, D.C., 20401.Tel: (202) 512-1800, Toll Free (866) 512-1800

Other inquiries should be sent to theU.S. Department of Commerce, Room3414, 1401 Constitution Avenue,NW, Washington, D.C., 20230.

First-class postage paid at Washington, D.C.

Contents of this publication are not copyright-ed unless indicated, and if not so indicated the articles may be reproduced in part or in full without any prior consent. The Secretary of Commerce has determined that the publication of this periodical is necessary in thetransaction of the public business required bylaw of this department.

22 EXPORT AMERICA August 2001

6

32

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June 2001 EXPORT AMERICA 3

EDITOR’S

ME

MO

They faced untold risks, no guarantees,pirates, as well as the potential of good for-tune and prosperity. The difference lies onlyin the modernization of business practices.Instead of embarking on a yearlong journeyby ship to trade with Southern Africa orIndia, risking disease and starvation, not tomention pirates, entrepreneurs now engagein business through the Internet, over cellphones and through intermediaries but stillface obstacles that can be just as devastating.

The most significant difference betweenthe traders of the 16th century and thoseof today is that trade is now accessibleand profitable for smaller companies.Small businesses also have countless part-ners to assist them in navigating thewaters of international trade; partnerssuch as the Commerce Department’sExport Assistance Centers, the U.S. SmallBusiness Administration as well as localand state agencies who will smooth thechopy seas for small and medium-sizedcompanies conducting business abroad.

There is still the threat of pirates (intel-lectual property rights, trademarks andpatents) and the risks can be just as over-whelming as in years past, but assistancefrom government and community organ-izations can reduce those risks so that

businesses can successfully pursue oppor-tunities in overseas markets.

This month, as one example, we look atconsumer goods exports, specific industrieswhere U.S. manufacturers are globally competitive and efforts to open markets forother goods. We will learn about changesthat the U.S. Customs Service is imple-menting to make trade easier and hearabout how trade associations can help theirmembers reach global markets.

Next month, we’ll bring the entire trademessage to you in one neat package. As youmay be aware, President Bush has requestedthat Congress grant him Trade PromotionAuthority (TPA), which will support thePresident in negotiating agreements withour trading partners. Specifically, we willlook at the direct impact TPA will have onindustry, hear from businesses on their suc-cesses and failures due to open (or closed)markets and find out how trade positivelyimpacts our communities.

Until we meet next month, good luck in your exporting endeavors and we wel-come your comments and feedback. Visit us at our web site http://expor-tamerica.doc.gov where you can view pastissues, send us email or subscribe.

Cory ChurchesEditor

he explorers and traders of the 16th to 19th centurieshave much in common with today’s entrepreneursengaged in international trade. T

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GLOBAL NEWS LINE

Companies interested in investing inEducation and Training Services willfind an attractive market in Brazil. Thenumber of new franchisers grew 109 per-cent between 1995 and 2000 and isexpected to grow another 26 percent in2001. There are 40 different franchisersin this sector, representing 8.5 percent ofthe total Brazilian market. Most of thesecompanies operate in the areas of foreign-language and computer training.

According to Ricardo Young Silva, ownerof the foreign-language school Yazigi andformer president of the BrazilianFranchising Association (ABF), manysuch schools are fated to merge with oneanother and form large companies, mean-ing that smaller franchise operations willmost likely struggle to survive. Yazigi wasone of the first companies in Brazil toadopt the franchise system (1963) andcurrently owns more than 300 schools infive different countries.

American franchises planning to enterthe Brazilian market should considerhiring a local consultant who can helpthem understand the various regionalaspects of this market. A commonstrategy for new-to-market companiesentering Brazil is to open their firstunit in the interior of the state of SãoPaulo or in Curitiba, the state capital ofParaná. These areas have a high pur-chasing power, lower operating costsand the competition is not as great asin the major Brazilian cities such as SãoPaulo and Rio de Janeiro.

Avantel and Alestra announced thatthey would provide local telephony toresidential users by the end of thisyear or at the beginning of 2002.These companies have already startedto provide this service to business of all sizes.

Meanwhile, Avantel, which is a part-nership between Grupo FinancieroBanamex-Accival (Banacci) andWorldCom, announced last January thebeginning of operations in corporate

local telephony in Mexico. This servicecomplements and adds value to thealready operating long distance servic-es, data transmission and Internetaccess in place since 1996. This makesAvantel an integral provider oftelecommunication services.

For further information on the telecom-munications market and opportunitiesfor U.S. business companies, please con-tact: M. Angeles Avila Chiquini, E-mail:[email protected]

Finding information on E-Commerceat the Inter-American DevelopmentBank (IDB) just got easier . The Information Technology forDevelopment Division of the IDB nowhas an online newsletter focusing on theInternet Industry. The newsletter, whichis published every two months, coverstechnology and market trends related tothe new economy with a specific focus onLatin America and the Caribbean and onhow technology can support economicdevelopment. The IDB is a multilateraldevelopment bank lending to LatinAmerican and Caribbean countries.

U.S. firms can take advantage of thisfree, up-to-date data and analysis of the Internet Industry in the LatinAmerican region by logging on to:www.iadb.org/ict4dev/pdf/EcommerceBrief11.pdf.

The current issue focuses on the evolution of venture capital, B2B e-Commerce in the region and featuresa letter from the CEO of trigonet.com.br,a Brazilian business-to-business onlineexchange portal for the grain market.For information on other E-opportuni-ties at the IDB direct your browser towww.iadb.org.

Each year the Danish governmentprocures products and services worthmore than $10 billion from differentvendors and companies. To ensure that

costs are kept low and in order tostreamline the process, a publicInternet auction hall is to be estab-lished at which enterprises can makebids for the supplying of goods andservices to the public sector. It is alsopossible for public institutions to makejoint procurements using the portal.The electronic auction hall is to bebased on commercial incentives andcommercial business models. The planis that a large part of public employeesuse this site in the future when buyingand procuring goods and merchandise.

Beginning this October, governmentprocurement worth $1 billion will bedone via this new public web portal.On this date a directive instructing var-ious government institutions to use theportal will take effect, and the plan isthat one third of all government pro-curement should be done this waywithin a few years-worth more than $4billion a year.

gatetrade.net, who is making the por-tal for the government, is a functioninge-marketplace that was launched inMarch 2001 by four of Denmark’slargest companies, Maersk Data,Danske Bank, Post Danmark andTDC (former TeleDanmark). The por-tal is open to all companies, mainlymedium-sized and larger. gatetrade.netexpects to reach a revenue of $5 billionwithin a couple of years.

American companies that want to sell tothe Danish government will have to meetthese standards and be able to developelectronic catalogs to be posted on theportal. By being well equipped to meetthese demands, U.S. companies have agood chance to be included in the portaland to benefit from their experience andknowledge in B2B eCommerce.

The government of Albania has issuedan announcement for Expressions of Interest in the privatization ofAlbania’s largest state-owned bank,the Savings Bank of Albania (SBA).The largest bank in Albania, SBA was

GLOBAL NEWS LINE

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4 EXPORT AMERICA August 2001

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created in 1991 and operates as a univer-sal and commercial bank while providingretail and wholesale banking services. Ithas 200 branches throughout Albaniathat serve approximately 400,000 cus-tomers. It holds roughly 80 percent ofthe country’s deposits. As of December2000, SBA has assets of $1.2 billion andhas paid-up capital of $4.9 million. InMarch 2001, the deposit volume was$940 million. In 2000, SBA reported aprofit of over $27.5 million, double itsexpectations. The bank will be privatizedthrough an open international tender.The Albanian government hopes toattract a foreign strategic partner andinternational financial institutionsthrough the tender and will offer mini-mal shares to the Albanian public. Thedeadline for expressions of interest isAugust 20, 2001. For the completeannouncement of expressions of interestor further information about doing busi-ness in Albania, please contact the Centraland Eastern Europe Business InformationCenter (CEEBIC) at telephone: (202)482-2645 or e-mail: [email protected] vis i t the CEEBIC website :www.mac.doc.gov/eebic/ceebic.html

The Russian medical equipment mar-ket has recently been growing rapidlyin tandem with a return to growth inRussia's economy. In the medicalequipment sector, emergency careequipment and products appear tohave potential for U.S. exporters. ForRussia, establishing a high-level systemof emergency and disaster care is a priority. Internal displacement of thepopulation in Chechnya, to naturaldisasters and epidemics have demon-strated the need for improved, large-scale emergency services.

The total market for medical equipmentis currently estimated at about $2 billion.Imports continue to play a significantrole, accounting for approximately 45percent of the total market despite a sig-nificant increase in local production inthe last two years. Currently, high-techmedical devices dominate imports. Untilrecently relatively inexpensive low-tech

medical devices and equipment represented most imports. Russia stillproduces some high-end medical equip-ment such as computer tomographs,ultrasound equipment and sophisticatedx-ray equipment. Emergency care equip-ment and products have recently becomea fast growing subsector, in whichimports have gained a significant marketshare. Competition is high from WesternEuropean suppliers, especially Germany.However, with aggressive marketing andby exhibiting at appropriate venues, thereis the potential for U.S. companies to sig-nificantly increase their market share.

The Emergency Medicine internationaltrade show, held annually in Moscow, isthe major show in the field. For potentialU.S. exporters it is represents the bestvenue to explore the Russian market.This year's show, the second in its histo-ry, was held in April 2001 and attractedaround 60 exhibitors and approximately10,000 visitors. In 2002, the EmergencyMedicine show is scheduled for April 17through 20.

The Korean government agreed toamend the Enforcement Decree(Presidential Decree) implementingthe Telecommunications BusinessLaw during a cabinet meetingpresided over by President Kim Dae-jung on June 5 to relax rules on foreign investment in Korea’s keytelecommunications sector. Currently,Korean companies having foreign equi-ty holdings of 50 percent or more aretreated as foreign-firms and, as such,are not eligible to participate in thecountry's telecommunications sector.The Korean government raised theceiling on foreign equity stakes in aKorean company from the present 50percent to 80 percent. As privatization,deregulation and competition emerge,owners of these telecommunicationsservice companies may be looking toenhance the level of customer services,providing opportunities for U.S. companies. This cabinet decision isexpected not only to step up the government's effort to attract foreign

investment, but also to develop a favor-able image of telecommunicationscompanies currently working withpotential foreign investors.

Korea is one of the fastest growingtelecommunications markets in theworld. To stay ahead of the global competitive curve, U.S. suppliers oftelecom equipment and services should carefully monitor the changes in play-ers and in trends in Korea's changingtelecom market.

The World Bank is funding $18 billionin projects in the environmental sectorthroughout developing world. Thesefunds are used by government agencies indeveloping countries to purchase a widerange of goods and services needed tocarry out these projects. As of April 2001,there were 100 active environmentalprojects which the World Bank is funding totaling $5.6 billion. There areprojects in other sectors with primaryenvironmental objectives as well as thosewith minor environmental impact,amounting to $12.4 billion. World Bankprojects cover a wide spectrum in theenvironmental sector including waterresources projects, forestry projects andair quality projects.

Information on these projects is avail-able on the World Bank’s website athttp://www4.worldbank.org/projects/.U.S. companies are encouraged to con-tact Clifton Brown at the U.S.Commercial Service CommercialLiaison Office to the World Bank,

Tel: (202) 458-1954; Fax (202) 477-2967; E-mail [email protected]. �

GLOBAL NEWS LINE

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NNEEEEDD MMOORREE DDEETTAAIILL?? Ask a Foreign Commercial Officer atone of the Department of Commerce’sposts located around the globe.Contact information, including phone,fax and email, is available by calling the Trade Information Center at (800) USA-TRAD(E).

August 2001 EXPORT AMERICA 5

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SUCCESS STORIES

There are some 23 millionsmall businesses in theUnited States, but onlyabout 1 percent sell theirgoods outside the country. Fortunately, the number of businessesthat export is increasing, more thantripling in the past seven years. Themain reason behind the surge inexporters is fairly simple: small busi-nesses export in order to grow.

Selling internationally can be an intim-idating prospect for a small business

comfortable in markets closer to home.Why bother with freight forwardersand letters of credit when you can sim-ply sell to a customer across town?Anxiety keeps many entrepreneurs athome—and out of reach of 95 percentof the world’s consumers.

Knight Hydraulics of Bridgeton,Missouri is one small business that has successfully made the jump intoglobal markets. Brenda Underwoodand her husband Zip entered theexport business without trying to—butfound that succeeding in it took somereal effort and some expert assistance.

Their company, Knight Hydraulics, isa small business that sells and serviceshydraulic parts used in large machin-ery, such as drilling rigs and construc-tion equipment. They specialize inhard-to-find parts, which may be whytheir small company started attractingnotice from buyers in other countries.

But foreign inquiries alone do not anexporter make. When their web sitebegan to get unexpected hits andinquiries from international buyers, the Underwoods were stumped. “Wedid not have a clue as to how to actually sell to another country,” recalls Brenda Underwood.

Fortunately, the Underwoods did have a clue about the wealth of busi-ness resources offered by governmentagencies. They contacted their localU.S. Export Assistance Center in St. Louis, part of the global networkof the U.S. Commercial Service, aCommerce Department agency thatprovides international business support to small and medium-sizedU.S. companies.

At the St . Loui s o f f i ce , theUnderwoods met Margaret Gottlieband Jennifer Gasparich, the two tradespecialists who visited the company’soffice to go over the basics of export-ing, including methods of paymentand documentation issues. “We werepleasantly surprised that our size did

NOTHING TO FEARBUT FEAR ITSELFby Erin Butler,Office of Director General, U.S. Commercial Service

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A Knight in shining armor: (L-R) Jennifer Gasparich and MargaretGottlieb of the St. Louis U.S. Export Assistance Center; Jim Hopkins,Brenda Underwood and Zip Underwood of Knight Hydraulics

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6 EXPORT AMERICA August 2001

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SUCCESS STORIES

not make any difference in the qualityof service we received from the Commercial Service,” BrendaUnderwood remembers. Counselingand market research are other funda-mental services that new exportersrequire. Gottlieb and Gasparich evalu-ated Knight’s products and their exportreadiness to determine best marketsand help the Underwoods shape theirexport strategy.

Trade specialist Gottlieb says that U.S.business owners need to carefully targetthe best markets for their products andthen be prepared to deal with culturaldifferences, unfamiliar labeling stan-dards, customs issues and a host ofother challenges. “Helping navigate theexporter through the process involvedin making their first sale is a big part of

what I do,” says Gottlieb. She and hercolleagues have access to a vast amountof market research; if more is needed toanswer highly specific questions aboutparticular markets and products, cus-tomized research is available from oneof the Commercial Service expertsaround the world.

Knight had received inquiries fromCanadian buyers and Gottlieb encour-aged the Underwoods to pursue theseleads. Canada is the United States’largest export market and is a logicalfirst choice for many new exporters.While documentation, customs andlegal requirements exist, business practices and consumer preferences aresimilar. Plus, NAFTA makes bothCanada and Mexico particularly accessible to U.S. companies by offeringtariff-free benefits for U.S.-producedgoods. For this reason, third-countrycompetition—from Europe, Asia, orelsewhere—tends to be far less preva-lent in Canada than in most otherinternational markets.

U.S. companies do not need to be bigor in high-tech sectors to find good markets in Canada. While computers,software and telecommunications arehot sectors for U.S. exports, otherpromising sectors include automotiveparts and service equipment, buildingproducts, electronic components andpower systems. Other advantages of theCanadian market are strong culturaland historic ties between the two countries. Geographic proximityreduces time and expense. Add theadvantages of congruent time zones, astraightforward regulatory regime anda common language, doing business inCanada simply makes good sense.

The U.S. exported more to Canada in2000 than to its number two and threeexport markets (Mexico and Japan)

combined. Two-way trade between thetwo countries is huge— over $1 billionin goods crosses the U.S.-Canada bor-der every day.

With Gottlieb and Gasparich to walkthem through the process, KnightHydraulics soon completed their firstinternational sale to Canada andembarked on what Brenda Underwoodcalls “the great adventure of interna-tional trade.” Underwood credits theExport Assistance Center with makingher company feel “less alone” in thisadventure and declares that “if it were not for the advice and timely serv-ice we received, we could not havemade this sale.”

Knight Hydraulics now has severalCanadian customers and recently madea large sale to a buyer in Peru that theyexpect will be the beginning of a longrelationship. “For now, our comfortzone is in this hemisphere,” laughsUnderwood. The same could be said ofmany small exporters—this hemisphere

is becoming increasingly more com-fortable for Underwood and businessowners like her. There’s NAFTA, ofcourse, but small businesses should alsobe aware of plans to integrate SouthAmerica with the U.S., Mexico andCanada. President Bush is eager to construct a Free Trade Area of theAmericas (FTAA) which will progres-sively eliminate barriers to trade andinvestment between countries, makingit easier for U.S. companies like KnightHydraulics to do business with buyersin Peru and the rest of Latin America.

This is not to say that exporting is as easy as selling to customers in yourown backyard. Underwood still maintains a healthy caution toward international inquiries. She advisesother small businesses to be scrupulous

about checking the credit and reputa-tion of potential international buyersand enlisting the Commercial Serviceto help.

“Our fear of the unknown has beenreplaced by a positive attitude towarddeveloping solid international tradeopportunities,” says Underwood. ForKnight Hydraulics, the benefits ofexporting are clear—they’re now sellingto “a great big market as opposed to alittle one,” says Underwood. �

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August 2001 EXPORT AMERICA 7

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Trade associations andchambers of commerce canincrease their value to mem-bers by using the resourcesof the U.S. CommercialService to help open upexport opportunities.

In 1996, the School, Home and OfficeProducts Association (SHOPA)—a2,100-member trade associationfounded in 1991—was looking forways to help its members expand intoglobal markets. The Dayton, Ohio-based organization decided to undertakesome pro-active measures. Accordingto SHOPA’s president, Steve Jacober,“we created an annual trade show tomeet the growing business needs of ourmembers and attract overseas buyersinterested in purchasing our members’products and services.”

But the organization also took anotherstep and contacted the U.S. ExportAssistance Center (USEAC) located inCincinnati. “We were introduced toDebbie Dirr, an international trade specialist, with whom we have beenworking ever since,” said SHOPA’sJacober. “Together, working closely withour international affairs manager, she helped us develop our international marketing plan and export strategy,identify our potential export marketsand provide us with export trade data.This allowed us to prioritize which mar-kets we wanted to target first.”

Using Customized Market Analysisfrom the U.S. Commercial Service,Jacober says SHOPA was able to provide members with need-to-know

information. The overseas trade staff of the U.S. Commercial Serviceresearched specific questions and pro-vided SHOPA with detailed reports foreach target market.

The customized reports answered several important questions:

� What is the market potential forU.S. school and office supplies inthe country market?

� Who are the major domestic andoverseas competitors?

� What prices do school and office sup-plies sell for in the country market?

� What are the legal regulations,product certifications, marketingand labeling questions that need tobe addressed?

Using the reports, SHOPA’s memberswere able to plan trade missions, par-ticipate in overseas trade events (suchas PaperWorld in Germany) and makeuse of other export services provided bythe U.S. Commercial Service (such asits “Gold Key Service”) to help themlocate agents, distributors and businesspartners in their target markets. Todate, more than 200 SHOPA membersare now exporting to various overseasmarkets and many more member com-panies are attending domestic andoverseas trade events each year.

To increase their members’ reach in theglobal economy, business organizations

help identify potential new marketsoverseas. Providing good resourcesfor research on the best markets,developing training programs andbridging overseas contacts are impor-tant services that associations andchambers of commerce can offer totheir members.

As the example of SHOPA’s successfulpartnering with outside organizationssuch as the network of 105 USEACsand the U.S. Commercial Serviceshows, business groups can successful-ly leverage their resources to make thebest use of the exporting and market-ing tools offered to businesses by thesegovernment partners.

The U.S. Commercial Service, whichstaffs the USEACs in partnershipwith four other federal agencies, is aresults-oriented unit of the U.S.Department of Commerce. With 105offices located throughout the UnitedStates and 157 offices abroad, theU.S. Commercial Service works toincrease the number of U.S. organiza-tions that benefit from internationaltrade, protect U.S. business interestsabroad and provide a wealth ofexpertise and online information toassist associations.

Guiding members into the global mar-ketplace is a tremendous task for abusiness organization, but followingthe seven steps listed below can helpthe members of your group succeed ingetting the most out of the U.S.Commercial Service and other tradedevelopment resources.

NEWS FROM COMMERCE

8 EXPORT AMERICA August 2001

MAKING A GROUP EFFORTby Mark Wells, Julia Vanover, and Debbie DirrU.S. Commercial Service

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1. Create a vision for your association’sinternational business program.Determine your members’ needs, goalsand objectives for expanding their busi-nesses to international markets. Create acomprehensive plan and followthrough, designating someone on staffto lead your international program.

2. Develop a solid business relationshipwith your local USEAC and an inter-national trade specialist. To locate theUSEAC nearest you, visit the U.S.Commercial service’s Web site(www.usatrade.gov; the locations of theUSEACs are also printed on the backpage of Export America). The Web sitealso provides market research informa-tion for products and services, the full texts of individual CountryCommercial Guides on doing businessin more than 120 countries and adetailed listing of all export programsand services offered by the U.S.Commercial Service.

3. Educate members about the availability of research focused on theirproductnor services. While the pricevaries, such services are inexpensiveand an imperative for guidingmembers to their best markets. TheU.S. Commercial Service offers tworesearch options:

� the Flexible Market Research pro-gram provides timely, customized,reliable answers to questions abouta market’s export potential forproducts or services;

� the Customized Market AnalysisProgram provides customizedresearch on a single product orservice in one overseas market.

4. Get an international trade specialistor a Commercial Service Officer tomeet with your members. Practicalways of doing this include:

� Organizing seminars designed towalk companies through the tradeprocess. Your local chamber ofcommerce may already offer such

seminars, so partnering with itcould prove fruitful. The U.S.Commercial Service can also develop a seminar that is tailoredto your membership’s needs.

� Organizing virtual seminars withlocal and foreign internationaltrade specialists, to walk membersthrough the exporting processthrough video conferences withCommercial Service market andindustry experts overseas.

� Inviting an international trade specialist or Foreign Service officerto your conference to presentinformation on trends, answerquestions, or run a booth.

5. Encourage members to make overseascontacts by using one of the programsoffered by the Commercial Service.These include:

� Gold Key Service, where one totwo days of meetings are scheduledin the target country, providing apotential exporter with well-matched buyers, distributors, legalexperts, etc. (Clients of the U.S.Commercial Service favor thisproduct because it is relativelyinexpensive and very successful.)

� Video Gold Key Service, which isthe same as the Gold Key Service,except that pre-screened contactsare met through videoconferenc-ing, thereby saving time and travel expenses.

� International Partner Search putsU.S. Commercial Service expertsin more than 80 countries to workfinding your members the mostsuitable partners, including buyers,agents, distributors, or overseasrepresentatives.

� International Company Profile is acredit report on one overseas com-pany. Unlike computer-generatedreports, the in-country industryexperts of the U.S. Commercial

Service will examine a prospectivebusiness partner.

6. Organize a trade mission, orencourage your organization to join anongoing trade mission. These are excit-ing, valuable programs that can bringgreat success to your member compa-nies. While on trade missions, the U.S.Commercial Service will match yourmembers with foreign firms interestedin discussing business opportunities.The foreign offices of the U.S.Commercila Service already have thecontacts, translators and hospitalityinformation you need.

7. Provide your members with infor-mation on the best financial resourcesfor trade investments. The U.S. SmallBusiness Administration provides loansfor exporters. The Export-Import Bankof the United States provides loans andloan guarantees for trade projects. Inaddition, local U.S. CommercialService international trade specialistscan assist in connecting companieswith local banks that are familiar withexport finance options.

In broadening its service to members,the School, Home and Office ProductsAssociation is now using the U.S.Commercial Service’s Flexible MarketResearch program, which provides cus-tomized information about a market’sexport potential for products or servic-es. This will enable SHOPA’s membersto plan entry strategies and implementexport programs in target markets.

Partnering with the experience, exten-sive resources and export promotionsuccess of the U.S. Commercial Serviceshould be an ongoing and enjoyableprocess for any business organizationthat is beginning to explore marketopportunities around the world.

Portions of this article were repintedwith the permission of ASAE Global Line �

NEWS FROM COMMERCE

August 2001 EXPORT AMERICA 9

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Unfair foreign pricingand government subsi-dies distort the free flowof goods and adverselyaffect American businessin the global marketplace.The Import Administration, within theInternational Trade Administration of

the Department of Commerce,enforces laws and agreements designedto protect U.S. businesses from unfaircompetition within the U.S. that resultfrom below-cost pricing by foreigncompanies or subsidies to foreign com-panies provided by their governments.

Many U.S. businesses have benefittedfrom the enforcement of the U.S. laws to address unfair trade practices.Antidumping and countervailing dutytrade remedies have been successfully pur-sued by a variety of domestic industries,including producers of steel, industrialequipment, computer chips, agricultural

products, textiles, chemicals and con-sumer products. In many instances, theenforcement of these laws has meant thedifference between survival and extinc-tion for a number of U.S. industries.

For example, in the 1990s, U.S. pro-ducers of dynamic random accessmicrochips (known as DRAMs)found themselves under attack fromlow-priced imports, primarily from

Korea. Most U.S. producers ceasedDRAM production under the pressureof these low-priced imports, leavingonly one significant U.S. DRAM pro-ducer, Micron Technologies of Boise,Idaho. Micron suspected that the low-priced imports were the result ofunfair trade practices by Korean pro-ducers and petitioned the ImportAdministration to investigate whetherthese Korean producers were “dump-ing” their product into the U.S. mar-ket. As a result of its investigation, theImport Administration found thatKorean producers were indeed sellingDRAMs in the United States at prices

below their cost of production andimposed duties at the border, allowingMicron to compete with its foreigncompetitors on a level playing field.Micron is now a competitive force inthe DRAM industry and continues todevelop its markets in the UnitedStates and abroad.

The Import Administration’s role inadministering unfair trade-laws is vital.

There is nothing more dispiriting toAmerican workers and farmers thanbelieving that they are not competingon equal ground with foreign com-petitors. When U.S. companies face unfair trade practices, the ImportAdministration provides relief, whileseeking long-term solutions to eliminategovernment interference and underlyingdistortions in the market. By enforcingU.S. antidumping and countervailingduty laws, the Import Administration,together with the International TradeCommission and the U.S. CustomsService, ensures that the existing traderegulations are enforced.

NEWS FROM COMMERCE

10 EXPORT AMERICA August 2001

IMPORTADMINISTRATIONby Office of Policy, Import Administration

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WWHHAATT IISS DDUUMMPPIINNGG??

“Dumping” occurs when a foreign pro-ducer sells a product in the UnitedStates at a price that is below that producer’s sales price in the country oforigin (“home market”) or at a pricethat is lower than the cost of produc-tion. The difference between the price(or cost) in the foreign market and theprice in the U.S. market is called thedumping margin. Unless the conductfalls within the legal definition ofdumping as specified in U.S. law, a for-eign producer selling imports at pricesbelow those of American products isnot necessarily dumping.

WWHHAATT IISS AACCOOUUNNTTEERRVVAAIILLAABBLLEESSUUBBSSIIDDYY??

Foreign governments subsidize indus-tries when they provide financial

assistance to benefit the production,manufacture or exportation of goods.Subsidies can take many forms, such asdirect cash payments, credits againsttaxes and loans at terms that do notreflect market conditions. U.S. law andregulations establish standards fordetermining when an unfair subsidyhas been conferred. The amount ofsubsidies the foreign producer receivesfrom the government is the basis forthe subsidy rate by which the subsidy isoffset or “countervailed” through high-er import duties.

HHOOWW IISS DDUUMMPPIINNGG OORR SSUUBBSSIIDDIIZZAATTIIOONNRREEMMEEDDIIEEDD??

If a U.S. industry believes that it isbeing injured by unfair competitionthrough dumping or subsidization of a foreign product, it may request the imposition of antidumping (AD)

or countervailing duties (CVD) by filing a petition with both the Import Administration and the U.S.International Trade Commission. TheImport Administration investigatesforeign producers and governments todetermine whether dumping or subsi-dization has occurred and calculatesthe amount of dumping or subsidies.

WWHHAATT IISS TTHHEE RROOLLEE OOFF TTHHEE UU..SS.. IINNTTEERRNNAATTIIOONNAALL TTRRAADDEE CCOOMMMMIISSSSIIOONN??

The U.S. Internat ional TradeCommission (ITC) determineswhether the domestic industry is suf-fering material injury as a result of theimports of the dumped or subsidizedproducts. The ITC considers all relevant economic factors, includingthe domestic industry’s output, sales, market share, employment andprofits. For further information

on the ITC’s injury investigation, see www.usitc.gov. Both the ITC and the Import Administration must make affirmative preliminary determi-nations for an investigation to go forward.

WWHHAATT RREELLIIEEFF IISS TTHHEE EENNDD RREESSUULLTT OOFF AANN AADD OORR CCVVDDIINNVVEESSTTIIGGAATTIIOONN??

If both the Import Administration andthe ITC make affirmative findings ofdumping and injury, the ImportAdministration instructs the U.S.Customs Service to assess duties againstimports of that product into the UnitedStates. The duties are assessed as a per-centage of the value of the imports andare equivalent to the dumping and sub-sidy margins described above. For exam-ple, if the Import Administration finds adumping margin of 35 percent, the U.S.

Customs Service will collect a 35 per-cent duty on the product at the time ofimportation into the United States inorder to offset the amount of dumping. Information regarding theU.S. Customs Service may be found atwww.customs.ustreas.gov.

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If both the ITC and the ImportAdministration make affirmative pre-liminary determinations (within 190days of initiation of the antidumpinginvestigation, or 130 days for counter-vailing duty investigation) importersare required to post a bond or cash to cover an estimated amount for the duties which would be collected in the event that an AD or CVD orderis issued upon the completion of the investigations. Typically, the final

phases of the investigations by theImport Administration and the ITCare completed within 12 to 18 months of initiation.

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Petitions may be filed by a domesticinterested party, including a manufac-turer or a union within the domesticindustry producing the product which competes with the imports to be investigated. To ensure that there is suf-ficient support by domestic industryfor the investigation, the law requiresthat the petitioners must represent atleast 25 percent of domestic produc-tion. The statute requires the petitionto contain certain information, includ-ing data about conditions of the U.S. market and the domestic industry,

NEWS FROM COMMERCE

August 2001 EXPORT AMERICA 11

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as well as evidence of dumping orunfair subsidization.

Both the Import Administration andthe ITC have staff available to assistdomestic industries in decidingwhether there is sufficient evidence tofile a petition for antidumping orcountervailing duty investigations. TheImport Administration’s Office ofPolicy assists U.S. businesses in prepar-ing materials to be submitted to theDepartment as part of the petitionsneeded to initiate an investigation.This office can assist businesses withidentifying import trends (includingvolume and value of the products inquestion), defining the merchandise tobe covered under a potential investiga-tion and by offering suggestions forcompiling information on allegeddumping or subsidization.

An example of this process began lastyear, when the Great Eastern MusselsCompany of Maine found that manyof their customers were turning tolower-priced mussels from Canada.Great Eastern suspected that theirCanadian competitors were able toundercut U.S. producer’s prices byunfair trade practices. Great Easterncontacted the Import Administrationfor help. The Import Administrationwas able to direct this small Mainecompany to utilize the U.S. unfairtrade laws and initiate an investigationinto allegations that Canadian produc-ers were dumping mussels into the U.S.market. The Import Administration isnow conducting this investigation andis scheduled to make its final determi-nation later this year.

Through its enforcement of theantidumping and countervailing dutylaws, the Import Administration canassist a U.S. industry under attack fromthe unfair trade practices of foreignproducers and foreign governments.Look for upcoming articles in ExportAmerica that will discuss how theImport Administration also assists U.S.

companies in identifying foreign market-distorting practices that inhibit the growth of their export markets. Pursuant to the UruguayRound Agreements Act, ImportAdministration is also responsible forcoordinating multilateral subsidiesenforcement efforts through theSubsidies Enforcement Office. Thisoffice works actively with the privatesector to remedy harm caused by subsi-dies provided to foreign competitors ofU.S. exporters. �

RREEQQUUIIRREEMMEENNTTSS

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� Industry Support: Must rep-resent at least 25 percent of the industry

� Scope of the Investigation:Complete NarrativeDescription of Merchandiseto be Covered (includingHarmonized Tariff ScheduleClassification)

� Evidence of Dumping: Basedon comparison of U.S. priceand home market price or cost.

� Evidence of Subsidization:Based on information rea-sonably available to the U.S. industry on foreign government subsidies

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12 EXPORT AMERICA August 2001

NEWS FROM COMMERCE

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Contact the Import Administra-tion, Office of Policy at (202)482-4412 or by e-mail [email protected] information can also befound at the Import Administrationweb site: www.trade.gov/ia.

PPRREE--PPEETTIITTIIOONN CCOOUUNNSSEELLIINNGG::

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TECHNICAL ADVICE

Measurements are thecommon language ofglobal commerce. They are used to specify product features andperformance, to characterize processesand to assess compliance with regula-tions. But the words of this technicaldiscourse can become jumbled andhollow if they are not backed by reliable sources—internationally recog-nized measurement references.

Suppliers, for example, may assert thattheir parts or products meet specifica-tions. But can customers be confidentthat measurements underlying theseclaims are accurate? And how can sup-pliers demonstrate the validity and reli-ability of their measurement results toskeptical buyers or regulators?

The validity of measurements is easilychallenged by a deceptively simplequestion: “Compared to what?”Measurements that are beyond com-pare might inspire an offbeat poet, butthey can be dismissed by customers andregulators. In contrast, measurementsthat are compared to accepted interna-tional or national standards inspire theconfidence of trading partners.

Increasingly, exporters are beingrequired to demonstrate that theirmeasurement results, as realized inproduct specifications and tolerances,are “traceable” to recognized stan-dards. In response, the Commerce

Department’s National Institute ofStandards and Technology—the pre-mier measurement laboratory in theUnited States—has created a new website (www.nist.gov/traceability/) to pro-vide traceability novices and veteranswith key information on this increas-ingly important topic.

“More and more of our customers areasking questions about traceability,”explains NIST Acting Director KarenBrown. “These range from the mostbasic—What is it?—to the more com-plex—How can I judge the credibilityof suppliers’ claims that their measure-ments are linked to those developedand maintained by NIST andultimately to the SI, the InternationalSystem of Units?”

Claims of accuracy can be judged onthe basis of a kind of pedigree, a welldocumented and continuous line ofmeasurement comparisons—each withan established level of uncertainty. Ineffect, this unbroken chain of compar-isons transfers accuracy—link bylink—to the manufacturing floor, clinic or anywhere else that reliablemeasurements matter.

The chain typically begins with state-of-the-art, high-accuracy measurementreferences and services supplied byNIST or a counterpart national meas-urement laboratory in another country.

Testing laboratories, makers of high-precision instruments and regulatoryagencies are among the types of organizations that calibrate their meas-urement equipment directly againstNIST references.

Most organizations have less demand-ing measurement needs, however. Theycan tolerate the additional—and accu-mulating—uncertainty that is intro-duced with each successive comparisonalong the chain. To demonstrate trace-ability, they can calibrate equipmentagainst intermediate or lower-tier refer-ences that may be several interconnect-ed links away from the highest-orderstandard available from NIST oranother accepted authority.

Except for defense suppliers and heavi-ly regulated U.S. industries, such asutilities and pharmaceuticals, formalmeasurement traceability requirementshave been relatively rare. For the mostpart, measurement-intensive sectorsestablished their own systems forassessing accuracy and ensuring highlevels of quality control.

The 21st century marketplace appearsto be moving toward more formalizedand more systematic approaches forensuring—and demonstrating—meas-urement accuracy. Major impetus forthis transition has come from quality

EXPORT MARKETSDEVELOPING A PENCHANTFOR ACCURACYby Mark Bello,Office of Public and Business Affairs, National Institute of Standards and Technology

UUNNBBRROOKKEENN CCHHAAIINN

MMOORREE SSYYSSTTEEMMAATTIICCAAPPPPRROOAACCHH

August 2001 EXPORT AMERICA 13

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management system standards issuedby the International Organization forStandardization, or ISO. Adopted bymore than 350,000 organizations in150 nations, the so-called ISO 9000family of standards specifies that, whenpossible, measuring equipment shouldbe calibrated against standards traceableto international or national measure-ment standards.

Since many large manufacturersrequire their regular suppliers to beISO 9000 registered, a growing legionof businesses is becoming familiar withmeasurement traceability.

Another ISO Standard—the recentlyapproved standard in the “geometricalproduct specifications” series (ISO14523: Part 1)—deals with rules fordeciding whether a part meets specifi-cations. It obliges suppliers and purchasers of parts to quantify theuncertainty of their dimensional andgeometric measurements, necessitatingtraceability to higher-order standards.It also requires suppliers to subtracttheir measurement uncertainty fromthe tolerance.

“This could cause some trouble inindustries, such as advanced optics,where they are making parts close to thelimits of measurement technology,” saysNIST precision engineering expertChris Evans. “Unless suppliers makecontractual arrangements to the con-trary, parts may be required, by default,

to comply with the standard, leaving lit-tle room for manufacturing variation.”

Also, the European Union will requiremakers of in vitro diagnostic test sys-tems (IVD products) to demonstrate,by 2003, traceability to “referencematerials of a higher order.” Vendorswill have the option of establishingindependently the accuracy of theirmeasurement results. Yet, observerssuggest that alternatives to formaltraceability may prove to be more difficult and ultimately may compli-cate efforts to secure the CE mark forIVD products.

These developments and others—including a proliferation of regulationsin some sectors—are making traceabil-ity a matter of interest for more thanmeasurement professionals.

At NIST’s traceability web site, a heavystream of visitors is already exploringthe ins and outs of this systematicapproach to demonstrating accuracy.There, they can learn about NIST’scalibration services and its more than1,300 different Standard ReferenceMaterials—benchmark references formeasurements of everything from thecarbon content of steel to cholesterollevels and from temperature to thediameter of optical fiber. Visitors canread the NIST policy on traceability.They also can review easy-to-understand answers to an extensiveset of “frequently asked questions”

about traceability, from the most general to specific points about labo-ratory accreditation. Other resourcesinclude a glossary of terms and atraceability checklist for users of cali-bration services.

“Businesses know the level of accuracythey must achieve in product andprocess measurements,” explainsRichard Kayser, NIST’s director ofTechnology Services. “To satisfy trace-ability requirements they will have tomake certain that each step they take toreach this level can be related back tonational or international standards.And they must know how to supporttheir claims of measurement traceabili-ty. Just as important, they must be ableto evaluate traceability claims made bysuppliers and by providers of measure-ment services.”

But NIST and its counterparts must gobeyond supporting traceability withintheir borders. “We should enable glob-al acceptance of measurement resultstraceable to individual NationalMetrology Institutes (NMIs), be itNIST in the United States, thePhysikalisch-Technische Bundesanstaltin Germany or the National MetrologyLaboratory in South Africa,” says RobertWatters, manager of a NIST programfocused on this objective.

“We need comparability and harmo-nization of measurement resultsacross national borders,” he explains.“Otherwise, we will not make anyprogress in reducing redundant testing that can impede access to export markets.”

Now, for example, a regulator or a cus-tomer in a foreign market may onlyrecognize measurement results that aretraceable to a particular NMI. Thismay necessitate testing U.S.-madeproducts at a foreign laboratory, dupli-cating testing already done in theUnited States.

TECHNICAL ADVICE

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14 EXPORT AMERICA August 2001

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Watters and his collaborators are build-ing the machinery to establish theequivalence of measurement results onregional and, ultimately, global scales.NIST has set up the InternationalComparisons Database, a vehicle forcomparing the measurement and cali-bration capabilities of NMIs aroundthe world, with special emphasis on the Western Hemisphere. With thedatabase, a Brazilian purchaser of elec-trical equipment manufactured in theUnited States could determine thatpower and voltage measurementsshown to be traceable to NIST areequivalent to those traceable toINMETRO, Brazil’s NMI.

The database supporting the so-calledInter-American Metrology System alsocontains data from other NMIs, as supplied by a comparison and calibra-tion database maintained by theInternational Bureau of Weights andMeasures, a treaty organization that hasthe task of ensuring worldwide unifica-tion of physical measurements. Withlinks to all of the world’s regionalmetrology organizations, this organiza-tion’s database will eventually providedirect and indirect means to judge thedegree of equivalence of measurementcapabilities in different countries,which could ease the burdens retesting.

“The databases should open the doorto achieving traceability by alternativeroutes,” Watters says. “Our aim is tomove the database from the exclusiverealm of the measurement scientist andmake it an easy-to-use tool for compa-nies and regulators, providing themwith a clear line of sight for assessingthe degree of equivalence of measure-ment results. Ultimately, our hope isthat this tool will help to eliminatetechnical barriers to market entry.”

To learn more about the InternationalComparisons Database visit the program’sweb site at: http://icdb.nist.gov/. �

August 2001 EXPORT AMERICA 15

TTRRAACCEEAABBIILLIITTYY IINN TTHHEE CCLLIINNIICCTraceability provides a way of relating the results of a measurement to higher-level standards,

helping to ensure consistency and reliability. In the United States, traceability systems are

well established in the radiopharmaceutical industry.

About 37,000 nuclear medicine procedures are performed daily in U.S. hospitals and clinics.

Used mainly in the diagnosis of cancer, cardiovascular disease and neurological disorders,

radioactively labeled drugs must be administered in exceedingly accurate doses. The aim is to

limit radiation exposure to the level needed to capture essential information on the patient’s

condition. In addition to diagnostic procedures, more than 100,000 therapeutic nuclear

medicine procedures are performed annually. The primary example is the treatment of thyroid

cancer patients with iodine-131, but new radiopharmaceutical therapies are emerging. Here,

too, the accuracy of dosage is key. Accuracy in the administration of radiopharmaceuticals to

patients depends on the accuracy of measurement instruments used in the manufacturing

process. These instruments are traceable to NIST primary standards for radioactivity.

Organizations involved in establishing this traceability system include the pharmaceutical

manufacturers of North America, under the auspices of the Nuclear Energy Institute, the U.S.

Food and Drug Administration, the NIST Physics Laboratory and the NIST Standard

Reference Materials Program.

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Features include answers to frequently asked questions, calibration checklist and more.

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Offers information and guidance on expressing measurement uncertainty—a key ele-

ment of traceability—as well as useful background material on the international meas-

urement system.

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Developing resource for comparing the capabilities, measurements and measurement

standards of “national metrology institutes,” especially those in the Western

Hemisphere. Links to the Key Comparison and Calibration Database of the International

Bureau of Weights and Measures.

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NIST offers about 1,300 different types of measurement standards to support industri-

al, environmental, health and science applications.

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Features detailed listing of types of instrument calibrations and special tests that NIST

performs in support of makers and users of high-precision equipment.

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Provides “one-stop shopping” for background information on conformity assessment—

the various and sometimes confusing procedures used to assess whether products or

services comply with requirements.

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Foreign sales of packaged software are projected to grow 49 percent by 2004 to $153 billion, according to IDC. The following article is meant as a guide for businessesexporting software.

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Many countries, including the United States, will classi-fy software products under an identical HarmonizedTariff System (HTS) category. However, software classi-fication poses similar challenges that arise with otherproducts. Since only the first six digits of the HTS codeare harmonized globally, a country may designate amore specific classification beyond those six digits. Inrare cases, the customs authority in another countrymay dispute the general classification of a product alto-gether based on interpretation of its purpose and use.The rapid evolution of information technology (IT)products is making the process of determining classifi-cation more difficult for this sector. Advancements intechnologies are outpacing updates to the existingHTS. Therefore, it is prudent to check with the customsauthority in the recipient country to ensure properclassification of a product.

HHOOWW IISS SSOOFFTTWWAARREE VVAALLUUAATTIIOONNDDEETTEERRMMIINNEEDD??

Countries vary in their methods for the valuation andassessment of software duties on imports. Under ArticleVII of the 1984 General Agreement on Tariffs and Trade(GATT), it was declared that software valuation mayeither be inclusive or exclusive of the cost or value forthe intellectual property component of the product.However, it was recommended that software valuation bebased on the value or cost of the carrier medium (i.e.,optical disk) rather than the “intellectual property”embedded on the medium. This decision was based onthe premise that the cost or value of the intellectualproperty is distinguishable from the value of the medi-um. This requirement is satisfied if the cost or value of

either the medium or intellectual property is identifiedseparately on the commercial invoice. It is important tonote that this GATT ruling does not cover software thatincludes features such as sound, cinematic or videorecordings. Software incorporating these features (e.g.,game software) will be subject to a separate valuationpolicy. For example, India differentiates entertainmentsoftware, healthcare software and telecom software fromstandard software.

This decision has granted customs authorities broad lat-itude in determining software valuation. Therefore, onecan expect to encounter different software valuationregimes. The United States maintains the practice ofvaluing software on the carrier medium. In general,Canada, Western Europe and many Asian countries alsoadhere to this method of valuation. In the Middle East,the method of valuing software on its full value or cost isfrequently applied. Africa and Latin America are regionswhere no defined trend for software valuation exists.

An additional consideration with software is the assess-ment of taxes on the product. Unlike tariffs, taxes onimports from the United States (e.g., value added taxesimposed at the border) are always assessed on the fullvalue of the software, including intellectual property,unless the United States has a special tax treaty with aparticular country.

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The Information Technology Agreement (ITA) is a pluri-lateral trade agreement that requires participants toeliminate tariffs on a specific list of IT products. Theseproducts include computer hardware and peripherals,telecommunications equipment, computer software,semiconductor manufacturing equipment, analyticalinstruments and semiconductors and other electroniccomponents. The agreement covers approximately 95percent of world trade in defined IT products.

Twenty-nine countries (or customs territories), includingthe United States, originally signed the ITA in 1997. TheITA now has 56 signatories with China and Russia sched-uled to join upon their accessions to the World TradeOrganization. Currently, only three Latin American coun-tries, Costa Rica, El Salvador and Panama are signatoriesto the ITA. The U.S. Government is working diligently toencourage more participation by South and CentralAmerican countries.

ASK THE TIC

16 EXPORT AMERICA August 2001

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and Jim Golsen,Office of Information Technologies

ISSUES WITH SOFTWARE EXPORTATION

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Computer software is included in the ITA. To ensure thatonly computer software and not recorded movies ormusic, are accorded duty-free treatment, most ITA signa-tories use a strict definition of computer software, devel-oped by the World Customs Organization, in their tariffschedules. U.S. exporters must be aware that, althoughsoftware imports may be duty-free in many countries, VATand other taxes often are applied.

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In most cases, the answer is no. Packaged software isdefined as software that is generally available to thepublic by sale from stock at retail selling points ordirectly from the software developer or supplier. Thevast majority of customs agencies do not treat cus-tomized software differently from packaged software. Toconfirm that the software’s destination does not treatthe two types of software differently, contact the TradeInformation Center or the customs authority in therecipient country.

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Yes. If one’s product utilizes encryption technology, itmay require an export license from the Bureau of ExportAdministration (BXA) and depending on the destination,an import license may be necessary to get the productinto market. “Retail" encryption products, which are wide-ly available in the open market, may now be exported toany end-user, including foreign governments. For all newsoftware products with encryption capabilities a one-timeproduct review by the BXA continues to be required. Ingeneral, U.S. companies may export any encryption product to commercial firms, individuals and other non-government end-users under a license exception (nolicense required). It is imperative for exporters of encryption technology to become familiar with the BXAregulations pertaining to these products. If one has a con-cern about the legality of their shipment, it is importantto consult with the BXA.

Some countries, most notably France, have specificrequirements on the importation of encryption technolo-gy. Systems that incorporate encryption of 128 KB andabove are particularly subject to review, although certainprograms incorporating encryption less than 128 KB havebeen known to be restricted in certain cases.

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The delivery of software via the Internet offers severaladvantages. First, it allows one to avoid tariffs and taxes dueto the WTO moratorium on taxing Internet commerce.Second, it provides for expedited delivery to the customerand allows one to circumvent customs clearance proce-dures. Third, it lowers costs by eliminating shipping andhandling fees. However, one must consider the recipient’sInternet capacity for this mode of delivery. It may not be anoption in some regions of the world due to a lack of sup-porting high-speed Internet infrastructure. Most countriesin Latin America and Africa are examples of such places.Exporters need to keep in mind that electronic shipmentsare subject to encryption export controls and the exportershould contact the BXA if they have questions regardingthe legality of their shipment.

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� To obtain more information about software valuation,contact the Trade Information Center at 1-800-USA-TRAD(E) or visit the “Tariff and Taxes” section of the Office of Information Technologies’ website at:http://exportIT.ita.doc.gov

� To receive additional information about the ITA, contactDanielle Kriz in the Office of Information Technologies [email protected] or (202) 482-0568.

� Questions relating to encryption controls should be directed to the Bureau of Export Administration at (202) 482-4811or visit their web site www.bxa.doc.gov/encryption �

The Trade Information Center (TIC) is operated by theInternational Trade Administration of the U.S. Department ofCommerce for the 20 federal agencies comprising the TradePromotion Coordinating Committee. These agencies areresponsible for managing the U.S. Government’s export promotion programs and activities. You, too, can “Ask the TIC”by calling 1-800-USA-TRAD(E) toll free, Monday throughFriday, 8:30-5:30. Or visit the TIC’s website at http://tradeinfo.doc.gov.

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TECHNICAL ADVICE

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The United States is a leading producer andexporter of a wide variety ofconsumer goods includingprocessed food, beverages,furniture, appliances, motor-cycles, boats, marine engines,printing, publishing, sport-ing goods, jewelry, toys andtableware, among others.

Industries covered by the InternationalTrade Administration’s (ITA) Office ofConsumer Goods employ roughly 4.4million Americans or 24 percent oftotal U.S. manufacturing employment.

Exports from these industries accountfor more than $54 billion or 8 percentof U.S. manufacturing exports. Importsof these products, at $121 billion,amount to approximately 12 percent ofall U.S. manufacturing imports.

Today, many U.S. manufacturers ofconsumer goods face intense competi-tion from countries with lower laborcosts not only in the domestic market,but in foreign markets. This competi-tion is especially acute for firms thatproduce standardized products usingmature, labor-intensive technologiescommonly available throughout theworld. Nevertheless, many U.S. con-sumer goods manufacturers are fullycompetitive in the global marketplacebecause consumers worldwide value

the superior design, quality, technologyor other attributes.

The Office of Consumer Goods (OCG)is one of several industry offices withinthe International Trade Administrationthat specialize in responding to theneeds of U.S. industries in the interna-tional marketplace. Analysts cover bothdurable and non-durable goods. Eachprovides analysis of competitiveness ofU.S. industries, identifies tariff and non-tariff barriers to U.S. exports, partici-pates in bilateral and multilateral nego-tiations to ensure consumer goodsindustries receive fair treatment abroadand provides research on promising

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18 EXPORT AMERICA August 2001

U.S. CONSUMER GOODSby The Office of Consumer Goods, Trade Development

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export markets for consumer goodsproducts. Additionally, analysts worktogether with export promotion specialists to encourage companies toparticipate in trade shows and other pro-motional events designed to gain marketexposure for U.S. products overseas.

The Office of Consumer Goods pro-vides information and assistance onmore than 100 industries within theclassification of consumer goods.Below is an example of market opportunities as well as how analystswork to improve market access andglobal competition for these industries.

World markets are increasingly impor-tant to the furniture industry. WhileU.S. exports of furniture totaled almost$5 billion in 2000, up from $3.3 billion in 1996, the industry is justbeginning to realize its export poten-tial. On average, U.S. manufacturersexport less than 10 percent of domesticproduction. The top export marketsare Canada, Mexico, Japan, the UnitedKingdom and Saudi Arabia. Progress isbeing made to allow U.S. producersgreater access to Latin America, partic-ularly Venezuela, Brazil and Argentina,which represent an area of strongexport potential.

Tarriffs, however, still remain as prohibitive trade barriers affecting U.S.furniture exports in several countries.Tariff rates in Asia can range as high as20 to 30 percent, as in Malaysia, whilein South America, Brazilian andArgentine furniture tariffs are 21 percent.

Evidence of the efficacy of free tradepolicies is demonstrated by the tremen-dous growth in exports that occurredfollowing reduction in tariffs under theCanada Free Trade Agreement (CFTA)and the North American Free TradeAgreement (NAFTA). Prior to the

trade agreements, Canada and Mexicolevied furniture tariffs of 15 and 20percent respectively. Since the CFTA in1989, U.S. exports of household furniture to Canada increased at a com-pound annual growth rate of 15.8 percent. After the implementation ofNAFTA in 1994, U.S. exports toMexico increased at a compound annualgrowth rate of 6.8 percent. Canada andMexico are now the largest U.S. exportmarkets for household furniture.

The industry also benefitted from tariffelimination in key developed marketsduring the Uruguay Round. Beginningin 2001, all tariffs on wood and metalhousehold and office furniture have beeneliminated in Canada, the EuropeanUnion, Hong Kong, Japan, Korea,Norway, Singapore, Switzerland and theUnited States.

Some manufacturers have been very suc-cessful in marketing their productsabroad despite problems inherent inexporting furniture: size and weight andthe differing ways furniture is designedand used in other cultures. Japan hasbeen an excellent market for U.S. furniture, particularly for manufacturerswilling to reduce the size of some of theirproducts and to make other productmodifications necessary to appeal toJapanese consumers.

The United States is the world’s largestpublisher of books. It exports many ofthese books overseas, almost 230 mil-lion books last year alone. Asia has highliteracy rates and a strong interest intechnical and scientific fields. Thus, itis one of the largest potential marketsfor U.S. English-language books. Asiaalready encompasses seven of the top20 export markets for U.S. books, withU.S. exports exceeding $327 million in2000. This region also has the dubioushonor of being the largest source ofbook piracy in the world. The industryestimates that Asian piracy cost U.S.publishers an estimated $282 millionin sales in 2000 alone. More impor-tantly, many small and medium-sizedU.S. publishers do not even attempt toenter the Asian market due to fears oframpant book piracy.

To combat this problem, OCG supportsthe publishing industry’s initiative toprotect U.S. books in Asia. OCG pro-vides the industry’s trade association,the Association of American Publishers(AAP), with information on specificcases of book piracy. OCG obtains thisinformation from ITA commercial staffin embassies and consulates abroad andfrom U.S. publishers who contact ITA

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in Washington. The association hasused this information and othersources to find actual book pirates andpersuade local authorities to raid thefacilities of those pirates and to prose-cute them.

AAP announced in its March/April2001 Monthly Report that these effortshave begun to pay off. In what AAPbelieves is the largest raid in publishinghistory, Korean authorities found600,000 counterfeit English-languagebooks worth an estimated $14.5 mil-lion. These books were high-qualitycounterfeits sold as legitimate books bythe book pirate and customers werecharged full retail price for the books.The Office of Consumer Goods plansto expand its cooperation with AAP inthe future.

Harley-Davidson Motor Company isthe primary U.S. manufacturer ofmotorcycles. Other manufacturersinclude two Japanese-owned produc-tion facilities and several much smallerfirms. These producers manufacturerlarge-size motorcycles, over 750cc withmost of them around 1400cc. Harley-Davidson’s motorcycles are mostly

cruiser and touring motorcycles thathave a unique appeal worldwide.

World markets are increasingly impor-tant to the motorcycle industry. U.S.exports of motorcycles totaled almost$563 million in 2000, up 20 percentfrom 1999. U.S. manufacturers exportan estimated 30 percent of domesticproduction. The top export marketsare Canada, Japan, Australia andGermany. Japan has been the strongestAsian market for U.S. manufacturers,as Harley-Davidson became the largestsupplier of motorcycles with enginesover 750cc in 2000 thanks to marketopening activities and the uniquedesign and appeal of the products.Other Asian markets also have greatpotential as these countries have a highper capita usage of motorcycles.

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Beginning in 1994, OCG has led sev-eral initiatives to reform outdatedJapanese road traffic laws. These lawsseverely limited the market for largemotorcycles like those exported fromthe United States. In 1996, after a U.S.petition requesting several reforms,Japan instituted motorcycle operatorlicense reforms that improved trainingand removed restrictive testingrequirements. These reforms led to alarge increase in the number of quali-fied riders and to a 30 percent increase

in sales of U.S.-made motorcycles.They also led to a 70 percent reduc-tion in the accident rate for newlylicensed riders of large-sized motorcy-cles. In 2000, the Japanese respondedto another U.S. request and raised themotorcycle highway speed limit toequal the automobile speed limit. Thisreform allows motorcycles to movelegally at the same speed as other traf-fic, enhancing safety.

OCG is continuing efforts to endJapan’s prohibition on motorcycletandem riding (i.e., carrying a passen-ger) on expressways. No other coun-try in the world bans tandem ridingon expressways, which safety researchdata prove are by far the safest roadsfor motorcycles. OCG drafted a peti-tion and presented testimony in asubsequent hearing with Japan’sOffice of Trade and InvestmentOmbudsman (OTO). The merits ofthe U.S. position are such that it issupported, not only by European gov-ernments and the European motorcy-cle industry, but by the Japanesemotorcycle industry as well.

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Large-size motorcycles have long beenbanned in Taiwan. Although this banapplies to both domestic and importedproducts, it disproportionately affectsthe U.S. motorcycle industry. All U.S. motorcycles are larger than the permitted size. In addition, Taiwan’senvironmental laws do not takeaccount of the unique pollution signa-ture of these large motorcycles.

At U.S. industry’s request, OCG madesure that ending the large-sized motor-cycle ban was included among U.S. objectives when Taiwan negotiat-ed to become a WTO member. TheTaiwanese Government agreed toremove the ban on motorcycles over150cc upon accession. In addition,Taiwan’s Environmental ProtectionAgency agreed to new emission stan-dards for large-size motorcycles that

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will be implemented upon accession.This agreement is pending a final voteof WTO members on Taiwan’s acces-sion. Should this agreement pass, asexpected, U.S. motorcycle manufactur-ers will be able to sell in a market thathas the world’s highest per capita usageof motorcycles.

Safety is important to the U.S. toyindustry and to countries throughoutthe world where toys are sold. But ifeach country were to adopt differentsafety standards, different toys wouldhave to be made for each market. Costswould skyrocket and trade would bemuch more difficult.

To overcome this problem, the toyindustries in the United States and theEuropean Union, working through the International Organization forStandardization (ISO), drafted a newtoy safety standard. To encourage the21 Asia-Pacific Economic Cooperation(APEC) countries to adopt the stan-dard, the U.S. industry requestedOCG’s help. These countries areimportant because the APEC regionproduces more than 80 percent of theworld’s toys.

OCG, in collaboration with U.S.industry, arranged for a three-day sem-inar in Hong Kong to inform attendeesabout the technical aspects of the ISOstandard and encouraged APECeconomies to align their toy safetystandards to conform to the standard.The APEC seminar attracted 256 par-ticipants from fourteen economies.Included were ten APEC economies,namely, Australia, China, Hong Kong,Japan, New Zealand, the Philippines,Russia, Chinese Taipei (Taiwan),Thailand and the United States.

The U.S.-sponsored project resulted inthe significant advancement of one of

the U.S. toy industry’s key internation-al goals. The seminar provided techni-cal information about the standard,demonstrated testing methods andsupplied a forum in which all membersof the industry and government offi-cials could openly discuss the standard.All participating countries expressedthe desire and willingness to worktowards harmonization. In thoseeconomies that currently lack a toystandard, full adoption of the ISO wasmentioned, thereby encouragingincreased U.S. toy exports to thesepotentially lucrative markets. Theadoption of a uniform and transparentstandard will reduce the costs of com-pliance, product testing and enforce-ment, but more importantly, representsa giant step towards ensuring the safety of toys.

Export markets are increasingly important to the $7 billion U.S. wineindustry. In 2000, total U.S. wineexports were $521 million, up from$385 million in 1996. These exportscould grow to $800 million by 2006,if export barriers are reduced. OCGis an active participant in two sepa-rate initiatives to remove wine exportbarriers.

New World Wine Producers: OCGhas been active in discussions of theNew World Wine Producers (NWWP)on reducing wine trade barriers sinceits inception in 1998. Members of thisorganization include Argentina,Australia, Canada, Chile, NewZealand, South Africa, the UnitedStates and Uruguay. These discussionshave resulted in a draft MutualAcceptance Agreement for wine mak-ing (oenological) practices. NewZealand, Australia, Canada and theUnited States have already initialed theagreement. The next key issue on theNWWP agenda is a wine labeling agree-ment. These agreements will greatly easetrade among the NWWP countries.

U.S.-EU Wine Negotiations: In 1999,the United States and the EuropeanUnion began intensive bilateral negoti-ations to reduce barriers that unneces-sarily restrict the trade of wine. OCGparticipates actively in these negotia-tions. The most recent negotiating session took place in Brussels in June.Discussions centered on oenologicalpractices, recognition of wine nameson labels, U.S. and EU regulatorydevelopments, import certificationissues, EU subsidies and tariffs.Resolution of these issues is essentialfor continued and improved U.S.access to the EU wine market.

The Office of Consumer Goods repre-sents the interests of industry at tradenegotiations, solicits input from indus-try in formulating trade policy andlooks to industry for direction in tradepromotion. Industry representativeshelp identify trade barriers that whenremoved will help firms realize theirexport potential.

OCG oversees two advisory commit-tees that give industry a forum to bringmarket barriers to light, confer withnegotiators at ITA and USTR duringtrade talks and at the same time, allowgovernment to get industry perspectiveon trade issues. The Industry SectorAdvisory Committee (ISAC) membersdevelop their industry’s specific positionson U.S. trade policy and negotiationobjectives and provide advice to offi-cials in the Department of Commerceand the Office of the U.S. TradeRepresentative. The committeesaddress trade agreements; marketaccess problems; tariff levels; discrimi-natory foreign procurement practices;electronic commerce, marketing andother advocacy needs of their sector.ISAC members are executives andmanagers of U.S. manufacturing or service companies involved in international trade or are trade associa-tion executives.

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August 2001 EXPORT AMERICA 21

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OCG industry analysts study U.S. con-sumer goods industries to learn theircompetitive strengths and weaknessesand determine which markets have thegreatest potential for growth and whichbarriers are the most significant. Theyare in regular contact with principalfirms and trade associations. OCG willbe using this expertise to help set theagenda for future negotiations, such asthe U.S.-Chile Free Trade Area, theFree Trade Area of the Americas andthe new round of WTO negotiations.

How can a small or medium size con-sumer goods company introduce itsproducts to an overseas market?Exhibiting at trade shows can be a cost-effective way to find agents, dis-tributors and customers. Each year,OCG organizes several different USApavilions and exhibits at major foreigntrade shows around the world to show-case American products. Upcoming

OCG trade events are described on theweb site www.trade.gov/td/ocg/.

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U.S. sporting goods firms exhibited atthe U.S. Product Sample/LiteratureCenter at the most recent ISPOSummer Show. This trade fair tookplace in July of this year in Munich.The OCG exhibit displayed U.S. prod-ucts to retail and wholesale buyers fromall over Europe. Held annually, ISPOhas more than 1,500 exhibitors andattracts more than 40,000 trade visitors. It has become recognized as akey event to reach Europe’s sportinggoods market.

The Product Sample/Literature Centeroffers a convenient and affordable wayto stimulate sales leads and find repre-sentation. It showcases a company’sproduct literature, videos and othervisuals Participating companies neednot travel to the show. OCG and over-seas U.S. Commercial Service staff plana high-visibility catalog exhibition andpublicize it to potential customers. The

U.S. exhibit is a low-cost and effectiveway for new-to-export and new-to-market sports equipment companies tointroduce themselves to the Germanand European markets.

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OCG is now recruiting firms to participate in a large ProductSample/Literature Center at GolfEurope, October 7-9, 2001, inMunich, Germany. The servicesoffered will be the same as thosedescribed for ISPO above. This annualevent is a specialized show for golfcourse owners and operators. It hasbecome recognized as a key event thatfuels Europe’s golf market. Major product categories that would benefitfrom participating in such a show are all kinds of golf equipment, apparel, accessories and other golf-related products. The trade visitors willinclude retail and wholesale buyers andgolf pros from all over Europe. At lastyear’s event, nearly 300 firms from 21 countries exhibited and a total of5,500 strictly trade-only buyers from47 countries visited the show. InGermany alone, sales generated by golf equipment, clothing and acces-sories grew to more than $165 millionin 1999. Retail sales rose by 16.3 percent compared with 1999. TheGerman golf market is the fastest growing and is now the fifth largestforeign market for U.S. golf equipmentexports. Excellent opportunities exist for U.S. golf companies in theGerman and European golf markets. The sophisticated, quality-consciousGerman market highly regards U.S.-made golf equipment. In Germany,trade fairs play a major role in productmarketing. For more information please contact Ludene Capone ([email protected].).

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Prospective distributors, buyers and rightslicensees from all over Europe and theworld descend on Frankfurt, Germanyevery year. They seek the best booksoffered by the biggest and smallest pub-lishers worldwide. For the 2001 show, to

NEW OPPORTUNITIES

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be held October 10-15, OCG will spon-sor a by-the-book exhibition open to allU.S. publishers, but highlighting U.S.minority publishers. Each book will bedisplayed full face to attract the attentionof trade visitors. Participating companiesneed not travel to the show. OCG andoverseas U.S. Commercial Service staffplan and publicize the U.S. exhibit. Theywill translate information about the pub-lisher and the book for foreign visitors.OCG collects information on agents orpublishers interested in importing booksor purchasing translation rights and sendsit to the U.S. company. The U.S. exhibitis a low-cost and effective way for new-to-export and new-to-market publishers to introduce themselves to a world wide market.

The Frankfurt Book Fair is an idealvenue to find foreign publishers. It offersmore than 380,000 books published bymore than 6,600 individual exhibitorsand 80 national exhibitions representingmore than 110 countries. English-lan-guage books are increasingly importantin Europe. The Frankfurt Book Fair ishost to one of the world’s largest exhibi-tions for such books, devoting an entirehall to English-language books. Lastyear, more than 300,000 trade profes-sionals visited the fair, making theFrankfurt Book Fair the largest and mostimportant trade show in the industry.

U.S. books have significant growthpotential in Europe, with current salesequaling only a small part of the entireEuropean book market. For example,the combined size of just the French,German and British book marketstotals more than $4 billion.

For additional information on the Frankfort Book Fair, please contact Nate Herman ([email protected]).

All of this work depends upon theexpertise of OCG industry specialists.These experts analyze trends in produc-tion, employment and imports andexports for consumer goods industries.Much of this work provides specialistswith the expertise to represent consumergoods interests at the negotiating table.In addition, this expertise is made avail-able directly to U.S. companies. OCGcontributes several chapters to theDepartment of Commerce’s U.S.Industry & Trade Outlook, includingFootwear, Leather and Leather Products,Household Consumer Durables, OtherConsumer Durables, Printing andPublishing, Processed Food andBeverages and Recreational Equipment.These chapters present a comprehensiveoverview of each of the covered indus-tries, including its present status andoutlook for the next five years.

OCG’s web site www.trade.gov/td/ocg/provides trade statistics and otherinformation, updated quarterly, formost major consumer goods industries.OCG analysts respond every week todozens of information requests fromU.S. business and others. This data andinformation allow consumer goodscompanies, many of whom are smalland medium-sized enterprises, to makebetter informed business decisions.They are also valuable resources foracademia and policy makers. �

CCOONNTTAACCTT IINNFFOORRMMAATTIIOONNDr. J. Hayden Boyd, Director Office of Consumer GoodsTel: (202) 482-0037Email: [email protected]/td/ocg

Jim Rice, Director, Durable Goods DivisionTel: (202) 482-1176Email: [email protected]

Leslie Simon, Director, Non-Durable Goods DivisionTel: (202) 482-0341Email: [email protected]

Export Promotion SpecialistsLudene Capone Tel: (202) 482-2087Email: [email protected]

Edward Kimmel Tel: (202) 482-3640Email: [email protected]

American Furniture Manufacturers AssociationTel: (336) 884-5000Fax: (336) 884-5303http://www.afma4u.org

Association of American Publishers, Inc.Tel: (202) 232-3335Fax: (202) 347-3690http://www.publishers.org

International Housewares AssociationTel: (847) 292-4200Fax: (847) 292-4211http://www.housewares.org

Lawn & Garden Marketing & Distribution AssociationTel: (215) 564-3484Fax: (215) 564-2175http://www.lgmda.org

Manufacturing Jewelers & Suppliers of AmericaTel: (401) 274-3840Fax: (401) 274-0265http://mjsa.polygon.net

National Marine Manufacturers AssociationTel: (312) 946-6200Fax: (312) 946-0388http://www.nmma.org

Sporting Goods Manufacturers AssociationTel: (561) 842-4100Fax: (561) 863-8984http://www.sgma.com

Toy Industry AssociationTel: (212) 675-1141Fax: (212) 633-1429http://www.toy-tma.org

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DDAATTEESS EEVVEENNTT LLOOCCAATTIIOONN

September 1- 3 Lyon Mode City Lyon, FranceThe Lyon Mode City trade fair is the top lingerie and swimwear trade show in the world and brings togetherover 800 exhibitors from 27 different countries. For several years, the show has confirmed its international rep-utation by attracting lingerie and swimwear trade professionals. The 2000 show attracted 18,446 visitors.

September 4 - 6 Health and Aged Care 2001 Melbourne, AustraliaHealth and Aged Care is Australia's only trade show dedicated to medical equipment. It is held bienniallyand attracts around 3,000 visitors and 120 exhibitors. The show features hospital furniture and fittings,sterilizers, disability aids, educational materials, laundry and waste facilities and information technology andcommunication systems.

September 9 - 12 Deco Contract Fair Brussels, BelgiumDeco Contract is the professional trade fair for the hotel, cruise, office and theater design, showing fabrics,floorcoverings and wallcoverings. This fair will include trend presentations and technical information.

September 15 - 18 Arab Oil and Gas Show Dubai, United Arab EmiratesThe 10th international exhibition for the Oil, Gas and Petrochemical Onshore and Offshore industries serv-ing the Arab Gulf states is held every two years. This event enables international suppliers to mount a com-prehensive presentation of technology, services and equipment to nearly 4,000 specialist visitors.

October 1 - 5 Medical Industry Product Literature Show Panama, Ecuador, PeruPanama, Peru and Ecuador buy nearly $50 million in medical equipment and supplies each year from theU.S. This tri-product literature show is a cost effective tool for small and mid-sized companies to findagents and distributors in each country. American companies will have their products attractively showcasedand displays will be staffed by medical industry specialists of the U.S. Commercial Service in each country.

October 8 - 13 Bucharest International Fair Bucharest, RomaniaBIF, a member of the International Fair Union, is the leading commercial event in Romania and one of theprominent trade fairs in Eastern Europe. It is a general technical fair with a strong emphasis on industrialequipment and consumer goods.

October 9 - 14 Kyung Hyang Housing Fair Kyung Hyang, South KoreaThis housing fair is the most prestigious and largest housing/building product exhibition in Korea. It fea-tures a wide range of building products, construction equipment and architectural/engineering services.This year it is expected to draw over 50,000 qualified and invited visitors. This event is an excellent market-ing forum for foreign companies to enter the Korean market.

October 9 - 12 IKK - Refrigerating and Air Conditioning Hannover, GermanyIKK is a major trade fair offering a full range of refrigeration components and units for building services,process technology and logistics.

October12 - 17 China Hi-Tech Fair/Biotech 2001 Shenzhen, ChinaThis is the third edition of this event which will feature products in the following industries: biotech equip-ment, bioinformatics, biotech services, bioengineering material, technology and management and bio-agriculture. More than 350,000 professional visitors are expected to attend.

October 22 - 26 Environmental Technologies Matchmaker Czech Republic, Hungary, PolandThere will be the traditional matchmaker offering of one-on-one, prescreened appointments at each stop aswell as briefings, logistical support and hospitality events.

October 22 - 26 Healthcare Technologies Matchmaker to Brazil and Chile Brazil and ChileThis event will be a traditional Matchmaker with two days of pre-screened appointments at each stop.Participants will also benefit from in-depth briefings and hospitality events.

October 30 - 31 Electrical Power Trade Mission & Seminar Toronto, CanadaThis trade event and seminar is designed to provide small to medium-sized export ready companies, utilitiesand their suppliers with a first-hand opportunity to become familiar with the Canadian electrical power market, establish new and profitable commercial relations and provide valuable trade and market-relatedinformation from up-to-date industry briefings.

24 EXPORT AMERICA August 2001

INSIDER’S CORNER

UPCOMING TRADE EVENTSSSEEPPTTEEMMBBEERR 22000011 -- JJAANNUUAARRYY 22000022

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Pamela KirklandTel: (202) 482-3587Email: [email protected]

Marie HillTel: (61 3) 9526-5927Email: [email protected]

Kim NguyenTel: (202) 482-4805Email: [email protected]

Adel FehmiTel: (971 4) 331-3584Email: [email protected]

Steven HarperTel: (202) 482-2991Email: [email protected]

Doina BrancusiTel: (40 1) 210-4042 x 345Email: [email protected]

Mitchel AuerbachTel: (82 2) 397-4655Email: [email protected]

Helen Simpson-DavisTel: (202) 482-1882Email: [email protected]

Elizabeth AusberryTel: (202) 482-4908Email: [email protected]

Molly CostaTel: (202) 482-0692Email: [email protected]

Molly CostaTel: (202) 482-0692Email: [email protected]

Peter DykemanTel: (416) 595-5412 x226Email: [email protected]

IINNDDUUSSTTRRYY

Apparel

Health CareServices andMedicalEquipment

Textile Fabrics andProducts

Oil/Gas FieldMachinery,MetalworkingEquipment

Dental, Medicaland LaboratoryScientificEquipment

General IndustrialEquipment/Supplies

Building Productsand ConstructionEquipment

Air Conditioningand RefrigeratingEquipment

Biotechnology

Pollution ControlEquipment

Biotechnology,Dental Equipment,Health CareServices

Electrical PowerSystems, PollutionControl, RenewableEnergy

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SEPTEMBER 6 – 7, 2001SAN JOSÉ, COSTA RICA

The Costa Rican Importers Association (CRECEX) is organiz-ing its International Business Roundtable and Trade Fair.CRECEX’s primary mission is to facilitate and promote inter-national trade. CRECEX has over 800 associates that representevery dimension of international commerce, including:importers, distributors, customs agencies and transportationproviders. Some of the industries that will be represented at thistrade mission will be apparel, processed foods, medical equip-ment, pumps, valves and compressors, toys and games, textilefabrics and veterinary medicine equipment and supplies.

Contact: Margaret Hanson-MuseTel: (506) 220-3939 x 2293Email: [email protected]

SEPTEMBER 24 – 28, 2001MEXICO CITY AND GUADALAJARA, MEXICO

The Office of Textiles and Apparel will sponsor a textile trademission to Mexico for representatives from U.S. apparel andhome furnishing fabric companies interested in selling theirproducts in Mexico or establishing representation agreements.Companies selling apparel fabrics made from natural fibers andcotton blends of fibers and yarns in the better price and qualityranges are likely to have the best chance of success. This eventis a good opportunity for companies selling home furnishingfabric remnants as well.

Contact: Jon KuehnerTel: (52) 5140-2610Email: [email protected]

SEPTEMBER 25 – 28, 2001MEXICO CITY, MEXICO

Environment Technology Industry Washington Specialists willshowcase companies’ technologies at the 8th annual Enviro-Pro2001 by displaying the company’s catalogs at the show. Afterthe 2000 show, 67 percent of the attendees planned on pur-chasing products on exhibit within twelve months. This is agreat time for companies to enter the Mexican environmentalmarket. In recent years the Mexican economy has been on anupward trend and the demand for environmental technologiesis forecasted to grow by 7 percent in 2001.

Contact: Anne NovakTel: (202) 482-8178Email: [email protected]

CRECEX TRADE MISSION

HIGHLIGHTED EVENTS

TEXTILE TRADE MISSION TO MEXICO

ENVIRO-PRO 2001

August 2001 EXPORT AMERICA 25

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DDAATTEESS EEVVEENNTT LLOOCCAATTIIOONN

October 30 - European Banking Technology Fair 2001 Frankfurt, GermanyNovember 1 The European Banking Technology Fair is the leading European technology show for banks and financial insti-

tutions. Exhibitors include hard and software products, security products and financial services.

November 10 - 13 MediPhar Taipei - American Products Literature Center Taipei, TaiwanMediphar is a major exhibition for the health care industry in Taiwan focusing on hi-tech products and the lat-est technologies. This event attracts decision-makers from some of the most advanced health care systems inAsia. American Products Literature Center offers smaller companies new to Taiwan a very cost-effective marketintroduction to the Taiwanese market.

November 14 - 17 International Amusement Parks Show Atlanta, GeorgiaIAAPA is the premier trade show for the amusement park and entertainment industry, encompassing the entirespectrum of companies from small family-run operation to large multi-national corporations. Exhibitors run thegamut from high technology such as virtual reality simulators to the latest games, rides, food and beverage andstate of the art themed attractions.

November 10 -14 6th International Transmission and Distribution Exhibition Brisbane, AustraliaThe biennial Distribution 2001 Exhibition is the leading event on the energy calendar for transmission anddistribution utilities, manufacturers and suppliers in the Asia/Pacific region. This is an important forum for thepresentation and discussion on new developments in transmission and distribution.

November 21 - 24 CEO Medica 2001 Dusseldorf, GermanyThis trade mission is a world's forum for doctors' surgeries and hospitals. A Congress will be held in conjunc-tion with this leading international trade fair.

December 3 - 5 International Tourism and Infrastructure Conference Athens, GreeceThe goal of this conference is to introduce and network participating U.S. companies with business and gov-ernment decision-makers from countries in Europe and the surrounding regions. This growing market is con-stantly seeking innovative and experienced overseas suppliers to fill its vast need. As one of Japanese govern-ment's export-to-Japan facilitation efforts, JETRO invites environmental companies looking to enter and/orexpand their business in Japan to Environment Japan 2001.

December 3 - 5 Maintenance, Repair & Overhaul Conference and Hong KongExhibition (MRO Asia)MRO Asia consists of a conference and an exhibition. They are targeting participants from high-level manage-ment positions from airlines, OEM/suppliers, the government, the military and the aviation industry.

December 4 - 7 Marintec China 2001 Shanghai, ChinaMarintec China is a major maritime event and will attract the most influential Chinese personalities and worldwide maritime companies. From ship building to ship registries, this is the maritime event in which to participate if you are interested in the world maritime industry.

December 14 - 17 Paperex 2001 New Delhi, IndiaThis is the 5th International Trade Fair and Conference on Pulp, Paper & Conversion Industry featuring rawmaterial handling and preparation, pulping, bleaching and paper making, news print manufacture, conversiontechnology and automation in paper mills among others.

January 9 - 15 Maison & Objet Paris, France2002 Maison et Objet is a European event for the homeware market. The show attracts more than 2,200 exhibitors

with more than half coming from overseas. Visitors include 55,000 professional buyers with more than 15,000coming from outside France.

January 29 - 30 Visit North America Seminar Zurich, Switzerland2002 The Visit North America Seminar is the main travel trade event promoting Swiss tourism exclusively to the U.S.

and Canada. The exhibit features some 130 exhibitors, mostly from the U.S. and the program includes 70 edu-cational workshops. Representatives from over 800 Swiss travel agencies will attend. The 4October,000 Swisstourists to the U.S. produced revenues in excess of $2 billion in 2000.

January 29 - Pacific 2002 International Maritime Exhibition Sydney, AustraliaFebruary 1, 2002 Pacific 2002 will showcase the world's latest developments in maritime and naval technology.

INSIDER’S CORNER

26 EXPORT AMERICA August 2001

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ComputerSoftware andFinancial Services

MedicalEquipment

Sports andRecreation

Electrical PowerSystems

Dental Equipment,Drugs/Pharmaceuticals,LaboratoryInstruments

TourismInfrastructure

Aircraft Parts,Ground SupportEquipment andAviation Services

Port/ShipbuildingEquipment

Paper/Pulp

Giftware,HouseholdConsumer Goods,Toys and Games

Travel andTourism

Defense IndustryEquipment

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Elizabeth PowellTel: (49 69) 956-204-17Email: [email protected]

Lisa HuotTel: (202) 482-2796Email: [email protected]

Linda BurlingameTel: (202) 482-5416Email: [email protected]

Noela CainTel: (361 3) 9526-5924Email: [email protected]

Ed FantasiaTel: (49 211) 737-767-10/80Email: [email protected]

Amy ZonaTel: (202) 482-3190Email: [email protected]

Elanna TamTel: (852) 2521-5950Email: [email protected]

Elizabeth AusberryTel: (202) 482-4908Email: [email protected]

Elizabeth AusberryTel: (202) 482-4908Email: [email protected]

Ludene CaponeTel: (202) 482-2087Email: [email protected]

Werner WiedmerTel: (41 31) 357-7342Email: [email protected]

Phil KeelingTel: (61 2) 9373-9209Email: [email protected]

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Genoa’s International Boat Show is one of the largest and leadinginternational boat shows in the world for motor boats, sailing boats,surf boards, inflatable crafts, diving and fishing equipment, engines,instruments and accessories. This show is an excellent opportunityfor U.S. companies to get involved in the international boating mar-ket. Last year’s event attracted 350,000 visitors and had 1,468exhibitors. This is the fourth consecutive year that the U.S.Commercial Service will hold a U.S. Catalog Exhibit at the Show.

Contact: Susanna LezziTel: (39 010) 543-877Email: [email protected]

NOVEMBER 4 – 9, 2001MUNICH, FRANKFURT, BERLIN AND HAMBURG

This trade mission will include representatives from a variety ofU.S. firms providing products and services for the Internet andtelecommunications who are interested in entering or expand-ing their presence in Germany. The mission aims to provide theparticipants with first-hand market information as well as accessto potential business partners and key government official. Itwill also generate publicity and market exposure for participat-ing companies. In sum, the mission will facilitate access for thefirms and opportunities resulting from the increasing marketdemand in Germany for U.S. products and services in theInternet and telecommunications industries.

Contact: John Lumborg (Berlin)Tel: (49 30) 8305-2736Email: [email protected]

Contact: Danielle KrizTel: (202) 482-0568Email: [email protected]

NOVEMBER 14 – 17, 2001MIAMI, FLORIDA

School, Home and Office Products Association (SHOPA)Show is one of the 200 largest trade shows in the United States,according to Tradeshow Week. The show is offering seminarsthe day before the show and customized local store tours withassociation executives serving as speakers on an as-needed basis.Products will include: computer accessories and software, deskaccessories, furniture, writing instruments and accessories,office storage, school supplies and much more.

Contact: Joan HallTel: (202) 482-2267Email: [email protected]

GENOA INTERNATIONAL BOAT SHOW

INTERNATIONAL SHOPA SHOW

INTERNET/TELECOMMUNICATIONSTRADE MISSION

INSIDER’S CORNER

August 2001 EXPORT AMERICA 27

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INSIDER’S CORNER

28 EXPORT AMERICA August 2001

AL

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.S.

EX

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in percent

75

RECENT TRENDS

in billions of dollarsper year

1998 1999 2000 2001

62

BY REGION

0

60

40

80

BY INDUSTRY

Energy Products

Grains &Feedstuff

OtherFoods

in percent

26%

67%

7%

50

East Asia33%

Other20%

EuropeanUnion11%

NorthAmerica

36%

20

in percent

Other

200

100

150

RECENT TRENDSin billions of dollars

per year

1998 1999 2000 2001

in percent

BY REGION

EastAsia22%

Other18%

EuropeanUnion20%

NorthAmerica

40%

30

20

40

BY INDUSTRY

BuildingMaterials

Chemicals Metals Paper Textiles0

6%

34%

22%

9%7%

22%

10

FFOOOODD AANNDD EENNEERRGGYY

MMAATTEERRIIAALLSS

Monthly data are centered three-monthmoving averages, based on seasonally adjust-ed figures and expressed as annual rates.

Product categories (except for services) arebased on end-use classification. Commercialservices include all private services.

North America: Canada and Mexico.

European Union: Austria, Belgium, Denmark,France, Finland, Germany, Greece, Ireland,Italy, Luxembourg, Netherlands, Portugal,Spain, Sweden and United Kingdom.

East Asia: China, Hong Kong, Indonesia,Japan, Malaysia, Philippines, Singapore,South Korea, Taiwan and Thailand.

The chart showing exports of services byregion is based on data for calendar year1999. Other charts showing product mixand geographic destination are based ondata for the year ending April 2001.

Source: Bureau of the Census (goods),Bureau of Economic Analysis(services).

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INSIDER’S CORNER

August 2001 EXPORT AMERICA 29

40

20

0

60

BY INDUSTRY

ElectricalEquip.

IndustrialEquip.

Mining &Constr. Equip.

in percent

26%

60%

9%

Other

5%

in percent

150

90

RECENT TRENDSin billions of dollars

per year

1998 1999 2000 2001

120

BY REGION

East Asia25%

Other17%

EuropeanUnion20%

NorthAmerica

39%

in percent

200

100

RECENT TRENDSin billions of dollars

per year

1998 1999 2000 2001

150

BY REGION

0

30

20

40

BY INDUSTRY

Computers Instruments Semi-conductors

in percent

Telecom. Equip.

33%

12%

36%

19%

10

East Asia39%

Other14%

EuropeanUnion25%

NorthAmerica

22%

in percent

BY REGION

East Asia39%

Other13%

EuropeanUnion25%

NorthAmerica

24%

MMAACCHHIINNEERRYY

EELLEECCTTRROONNIICCSS &&IINNSSTTRRUUMMEENNTTSS

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INSIDER’S CORNER

in percent

150

RECENT TRENDSin billions of dollars

per year

130

110

BY REGION

0

45

30

60

BY INDUSTRY

Aerospace Automotive Other

in percent

40%

59%

2%

15

East Asia13%

Other14%

EuropeanUnion23%North

America49%

1998 1999 2000 2001

in percent

55

35

RECENT TRENDSin billions of dollars

per year

1998 1999 2000 2001

45

BY REGION

0

30

20

40

BY INDUSTRY

ConsumerElectronics

HouseholdGoods

RecreationalEquipment

in percent

Other

21%

38%

17%

24%

10

East Asia18%Other

23%

EuropeanUnion33%North

America35%

TTRRAANNSSPPOORRTTAATTIIOONNEEQQUUIIPPMMEENNTT ((CCIIVVIILLIIAANN))

CCOONNSSUUMMEERR DDUURRAABBLLEESS

30 EXPORT AMERICA August 2001

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INSIDER’S CORNER

Additional information is available fromthe International Trade

Administrationwww.ita.doc.gov/tradestats/,

the Bureau of the Censuswww.census.gov/foreign-trade/www/,

and the Bureau of Economic Analysiswww.bea.doc.gov/bea/.

Prepared by the Office of Trade and Economic Analysis, Trade Development. For more information call (202) 482-2056.

in percent

50

RECENT TRENDS

in billions of dollarsper year

1998 1999 2000 2001

40

BY REGION

25

15

0

35

BY INDUSTRY

ApparelPharmaceuticals

Printed Matter

in percent

Other

24%

35%

10%

31%East Asia17%Other

26%

EuropeanUnion26%

NorthAmerica

31%

30

in percent

RECENT TRENDS

300

250

200

in billions of dollarsper year

1998 1999 2000 2001

BY REGION

0

30

20

40

BY INDUSTRY

Travel PassengerFares

OtherTrans

in percent

29%

7% 11%

Royalties &License Fees

OtherPrivate

14%

39%

10East Asia

22%

Other31%

EuropeanUnion33%

NorthAmerica

13%

CCOONNSSUUMMEERR NNOONNDDUURRAABBLLEESS

CCOOMMMMEERRCCIIAALL SSEERRVVIICCEESS

August 2001 EXPORT AMERICA 31

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The U.S. Customs Service isembarking on a moderniza-tion effort—the CustomsModernization Program—to improve Customs trade,enforcement and administra-tive operations. The Customs Modernization Program will bring anenterprise approach to the planning,definition, development and imple-mentation of new business processesand the infrastructure that supportsthese processes.

The Modernization Program will have apositive impact on almost every aspect ofU.S. and international trade and travel,Customs operations and related federaland international government agency

missions and programs. TheModernization effort will impact itsmany stakeholders on a day-to-day basis.

With the challenges of explosivegrowth in international trade and travel and ever-increasing law enforce-ment demands, Customs is relying ontechnology to enhance operations.Modernization will include the re-engineering of Customs operationalprocesses and the development of newtechnology infrastructure, computersystems and software applications tosupport these processes. It will addressCustoms commercial, enforcementand administrative operations. Thefirst Modernization project is thedevelopment of the AutomatedCommercial Environment (ACE),Customs new high-tech trade system.

Although ACE will be the first significant accomplishment, the Modern-ization process is much more. Theentire Modernization program will span 15 years and will cover each of Customs mission areas: Trade,Enforcement and Administration.

Modernization will update the systemsthat Customs uses to do business by:

� Reducing maintenance costs

� Maximizing service to other govern-ment agencies and to industry

� Allowing greater access by the public

� Using technologies that are interop-erable and easy to upgrade.

On April 27, 2001 the U.S. CustomsService accomplished a major goal—award of the Customs ModernizationPrime Integration Contract to the “e-Customs Partnership,” led by IBMGlobal Services. Key team membersinclude Lockheed Martin Corporation,KPMG Consul t ing , ComputerSciences Corporation (CSC) andSandler & Travis Trade AdvisoryServices (STTAS), Inc.

“The selection of our Modernizationpartner, the Prime IntegrationContractor, is a significant achievementfor Customs,” says Acting CommissionerCharles Winwood. “We can now beginbringing 21st century business practicesto America’s borders.”

THE FEDERAL SCOOP

STREAMLINING TRADEby Virginia NoordewierCustoms Modernization Office, U.S. Customs Service

U.S. Customs Acting Commissioner Charles Winwood announces theselection of a Customs Modernization prime contractor.

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CCUUSSTTOOMMSS CCHHOOOOSSEESSMMOODDEERRNNIIZZAATTIIOONN PPAARRTTNNEERR

32 EXPORT AMERICA August 2001

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Modernization will deliver new toolsand cutting-edge technologies toCustoms employees so that they canaccomplish mission responsibilities inan environment that is constantlychanging. It will also simplify transac-tions, allowing Customs to interact andcommunicate more easily with thetrade community and other agencies.

“The Prime Integration Contractorwill help Customs design, build andimplement new information systems,”says S.W. Hal l , J r. , Ass i s tantCommissioner for the Office ofInformation and Technology andCustoms Chief Information Officer.“The e-Customs Partnership is a teamof top-notch companies and highly-qualified professionals. They have successfully developed and managedlarge information systems projects similar to Customs Modernization.The team’s business knowledge andtechnical capabilities, combined withthe institutional and operationalknowledge of dedicated Customsemployees, as well as input from stake-holders like the trade community, isour blueprint for successfully buildingmodernized systems that meetCustoms mission needs.”

The team name, “e-Customs Partner-ship,” conveys a vision of Customsfuture as a paperless organization thatuses electronic means to carry out mis-sion responsibilities. Team membershave a long history of working togeth-er, assisting customers in transformingtheir enterprise and employing tech-nology to solve business challenges.The team offers a balance of commer-cial and government experience thatcan leverage best practices from bothsectors for designing and engineeringinnovative solutions to Customs chal-lenges. The team also has trade andenforcement experience, which will helpthem understand and address the complexities of Customs mission andoperating environment. Each member of the e-Customs Partnership will play an integral role in ensuring thatModernization goals are achieved.

� IBM Global Services will lead andmanage the e-Customs Partnership.IBM is the world’s largest systemsintegration and infrastructure man-agement firm and will be accountablefor achieving Modernization goalsand objectives.

� Lockheed Martin Mission Systems(LMMS) will develop and integratenew systems and software. LMMS iscertified at Level 5 of the CapabilityMaturity Model for Software (SW-CMM®) and Level 3 of the SystemsEngineering Capability MaturityModel (SE-CMM®). This level ofcapability reduces risk in delivery ofsoftware and systems.

� KPMG Consulting will contributebusiness transformation, knowledgemanagement and training expertiseto the e-Customs Partnership.

� CSC brings its experience in information security and telecom-munications to the team. STTAS isthe nation’s largest dedicatedprovider of international trade andcustoms services and will provideglobal trade and Customs expertise.

Modernization should benefit everyone.With this goal in mind, Customs hasestablished a subcommittee structurewithin the Trade Support Network(TSN) to collect user requirements for theAutomated Commercial Environment.

The TSN was established in 1994 to bea forum for discussions regarding theredesign of its trade systems. Thegroup’s more than 120 members repre-sent a cross-section of the trade com-munity and include importers,exporters, brokers, carriers, sureties,couriers, software vendors, attorneysand consultants.

Now revitalized, the TSN held its firstACE meeting in May of this year in

Washington, D.C. In addition to theMay plenary hearing, the TSN accom-plishes its work through subcommittees,which are small working groups com-prised of TSN members who discussspecific components of the trade com-pliance process. The subcommittees areformed on an as-needed basis. CurrentTSN subcommittees are as follows:

� Account Management

� Entry Revision Project

� Revenue

� Multi-modal Manifest

� Trade Interface

� International Trade Data System

� Business Technology

Each subcommittee is co-chaired by aCustoms and Trade representative. Thetwo co-chairs of each subcommitteealso serve as the Trade User Require-ments Integration Committee.

This summer, the subcommittees willmeet periodically to continue workingon their recommendations for the firstincrement of ACE, which will includea foundation for account management,periodic payment processing, fastrelease of cargo for compliant compa-nies and a single interface for the trade.

TSN recommendations for the firstincrement of ACE are due to Customsby early fall 2001 so that they may beevaluated and incorporated into theACE requirements being developed bythe e-Customs Partnership. �

THE FEDERAL SCOOP

August 2001 EXPORT AMERICA 33

TTRRAADDEE SSUUPPPPOORRTT NNEETTWWOORRKKPPLLAAYYIINNGG AA RROOLLEE IINN AACCEE DDEEVVEELLOOPPMMEENNTT

FFoorr mmoorree iinnffoorrmmaattiioonn oonn tthheeTTSSNN aanndd hhooww ttoo bbeeccoommee aa mmeemm--bbeerr,, pplleeaassee ccoonnttaacctt Janet Pence, TSN AdministratorClient Representative BranchSoftware Development DivisionOffice of Information and Technology7501 Boston BoulevardSpringfield, VA 22153Tel: (703) 921-7500

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U.S. DEPARTMENT OF COMMERCEINTERNATIONAL TRADE ADMINISTRATIONRoom 3414, 1401 Constitution Avenue, NW, Washington, D.C., 20230Official BusinessPenalty for Private Use $300 fine

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ALABAMA Birmingham (205) 731-1331

ALASKA Anchorage (907) 271-6237

ARIZONAPhoenix (602) 640-2513 Tucson (520) 670-5540

ARKANSAS Little Rock (501) 324-5794

CALIFORNIAFresno (559) 325-1619Inland Empire (909) 466-4134Downtown Los Angeles (213) 894-8784 West Los Angeles (310) 235-7104Monterey (831) 641-9850 North Bay (415) 492-4546 Oakland (510) 273-7350 Orange County (949) 660-1688Ventura County (805) 676-1573 Sacramento (916) 498-5155 San Diego (619) 557-5395San Francisco (415) 705-2300 San Jose U.S. Export Assistance Center(408) 271-7300Silicon Valley (408) 271-7300

COLORADO Rocky Mountain (303) 844-6623

CONNECTICUT Middletown (860) 638-6950

DELAWARE Served by the Philadelphia U.S. ExportAssistance Center

DISTRICT OF COLUMBIA Served by the NorthernVirginia Export Assistance Center

FLORIDAClearwater (727) 893-3738Miami U.S. Export Assistance Center (305) 526-7425Ft. Lauderdale (954) 356-6640Orlando (407) 648-6235Tallahassee (850) 942-9635

GEORGIAAtlanta U.S. Export Assistance Center (404) 657-1900 Savannah (912) 652-4204

HAWAII Honolulu (808) 522-8040

IDAHO Boise (208) 334-3857

ILLINOISChicago U.S. Export Assistance Center (312) 353-8045 Highland Park (847) 681-8010Peoria (309) 671-7815 Rockford (815) 987-8123

INDIANA Indianapolis (317) 582-2300

IOWA Des Moines (515) 288-8614

KANSAS Wichita (316) 263-4067

KENTUCKY Lexington (859) 225-7001 Louisville (502) 582-5066 Somerset (606) 677-6160

LOUISIANANew Orleans U.S. Export Assistance Center (504) 589-6546 Shreveport (318) 676-3064

MAINE Portland (207) 541-7400

MARYLAND Baltimore U.S. Export AssistanceCenter (410) 962-4539

MASSACHUSETTSBoston U.S. Export Assistance Center (617) 424-5990

MICHIGANDetroit U.S. Export Assistance Center (313) 226-3650 Ann Arbor (734) 741-2430Grand Rapids (616) 458-3564Pontiac (248) 975-9600

MINNESOTA Minneapolis U.S. Export AssistanceCenter (612) 348-1638

MISSISSIPPI Mississippi (601) 857-0128

MISSOURI St. Louis U.S. Export Assistance Center (314) 425-3302 Kansas City (816) 410-9201

MONTANA Missoula (406) 243-2098

NEBRASKA Omaha (402) 221-3664

NEVADALas Vegas (702) 229-1197 Reno (775) 784-5203

NEW HAMPSHIRE Portsmouth (603) 334-6074

NEW JERSEYNewark (973) 645-4682Trenton (609) 989-2100

NEW MEXICO New Mexico (505) 827-0350

NEW YORKBuffalo (716) 551-4191Harlem (212) 860-6200 Long Island (516) 739-1765New York U.S. Export Assistance Center (212) 466-5222Westchester (914) 682-6712

NORTH CAROLINACarolinas U.S. Export Assistance Center (704) 333-4886 Greensboro (336) 333-5345Raleigh (919) 715-7373 x514

NORTH DAKOTA Served by the Minneapolis ExportAssistance Center

OHIOAkron (830) 376-5550Cincinnati (513) 684-2944 Cleveland U.S. Export Assistance Center (216) 522-4750Columbus (614) 365-9510 Toledo (419) 241-0683

OKLAHOMAOklahoma City (405) 608-5302Tulsa (918) 581-7650

OREGONEugene (541) 484-6575Portland (503) 326-3001

PENNSYLVANIAHarrisburg (717) 221-4510Philadelphia U.S. Export Assistance Center (215) 597-6101 Pittsburgh (412) 395-5050

PUERTO RICO San Juan (787) 766-5555

RHODE ISLAND Providence (401) 528-5104

SOUTH CAROLINACharleston (843) 760-3794Columbia (803) 765-5345 Upstate (864) 271-1976

SOUTH DAKOTA Siouxland (605) 330-4264

TENNESSEE Knoxville (865) 545-4637Memphis (901) 323-1543Nashville (615) 259-6060

TEXASAustin (512) 916-5939 Dallas U.S. Export Assistance Center (817) 277-1313 Fort Worth (817) 212-2673Houston (713) 718-3062 San Antonio (210) 228-9878

UTAH Salt Lake City (801) 524-5116

VERMONT Montpelier (802) 828-4508

VIRGINIANorthern Virginia (703) 524-2885 Richmond (804) 771-2246

WASHINGTONSeattle U.S. Export Assistance Center (206) 553-5615 Spokane (509) 353-2625Tacoma (253) 593-6736

WEST VIRGINIACharleston (304) 347-5123 Wheeling (304) 243-5493

WISCONSIN Milwaukee (414) 297-3473

WYOMING Served by the Denver U.S. Export Assistance Center

FFOORR EEXXPPOORRTT IINNFFOORRMMAATTIIOONN,, CCAALLLL TTHHEE TTRRAADDEE IINNFFOORRMMAATTIIOONN CCEENNTTEERR 11--880000--UUSSAA--TTRRAADD((EE))

DIRECTORY OF EXPORT ASSISTANCE CENTERS IN THE U.S.