Thinking about international business? Looking for new market opportunities? The Pennsylvania Small Business Development Centers can help you enter and compete in markets around the world. If your company is looking to grow, the international marketplace offers a world of opportunities.

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The SBDCs can help small firms take the steps to becoming successful competitors in foreign markets. If your company is already engaged in international trade, the SBDC can help you take advantage of new opportunities.

Why Your Company Should Consider International Business

International trade boosts profits
Foreign markets represent a major growth area for U.S. companies
Elimination of trade barriers has made foreign markets more accessible
Exporting minimizes risk through market diversification
Diversification abroad may offset loss of sales at home
Exporting lengthens production schedules for seasonal products
Long-term business success increasingly depends on participation in the global economy
Exporting may help to extend product lifecycles
International trade participation encourages companies to monitor technological developments
Importing may reduce product costs allowing a company to be more competitive
Import opportunities may offer your business new market opportunities

How the SBDC Can Help Your Company Expand Global Market Opportunities

An international trade specialist will work with you on a confidential, one-on-one basis to help you plan and implement your export strategy. Services include:

Assessing your company's international trade readiness
Evaluating your products or services for export potential
Identifying the best foreign market opportunities
Developing strategic and marketing plans
Identifying foreign sales agents and distributors
Planning market entry strategies
Explaining international trade procedures and regulations
Providing information on technical standards and export/import documentation
Determining sources of trade financing and risk management
Identifying trade mission and trade show opportunities
Determining import restrictions, duties, and tariffs

You can find an international business consultant at your local Small Business Development Center.

Trade Leads

The SBDCs utilize a variety of resources, including database networks, electronic bulletin boards and the Internet, to identify worldwide trade leads for your products or services. These sales leads are evaluated and forwarded to your company at no charge.

Education

As an extension of its consulting services, the SBDCs provide information on international trade opportunities, issues, and exporting/importing mechanics through introductory, intermediate and advanced level workshops. Examples of such programs include:

Export Planning, Financing and Documentation
Developing an International Marketing Plan for Food/Agricultural Products
International Insurance for Business
Mastering the European Union
Doing Business in China
Cross Cultural Communications
Licensing Technical Data and Software for Export

Product Promotion

SBDC international trade consultants work closely with Pennsylvania and federal agencies and programs to promote your products in foreign markets. As a member of the Team Pennsylvania Export Network, the SBDCs have access to the state’s overseas offices. Among the many services provided by the Commonwealth’s overseas offices is a review of your preliminary market assessment by in-country experts who review your strategy and provide comments to help you fine-tune your approach.

Center for International Regulatory Assistance

The Center for International Regulatory Assistance (CITRA), is an SBDC program that offers U.S. companies assistance on how to comply with European trade regulations and CE marking.

International Trade FAQs

How can I gain a better understanding of international trade issues?
Do I need a license to export?
I need assistance in importing materials for my manufacturing process. Can the SBDC help me with importing issues?
What is a Foreign-Trade Zone?
Where can I find information on tariff and import fees?
I want to do business with Canada and Mexico. Where can I find information to help me?
I have a product that is covered under a U.S. patent and is protected by intellectual property rights. Is my product safe if I sell on international markets?
This is my first entry into an export market and I need some legal assistance. Is there someone to help me?
What documentation will I need to ship my goods?

How can I gain a better understanding of international trade issues?
The United States International Trade Commission is one of the best sources of information on international trade issues. They are an independent, quasi-judicial Federal agency with broad investigative responsibilities on matters of trade. The agency investigates the effects of dumped and subsidized imports on domestic industries and conducts global safeguard investigations. The Commission also adjudicates cases involving alleged infringement by imports of intellectual property rights. Through such proceedings, the agency facilitates a rules-based international trading system. The Commission also serves as a Federal resource where trade data and other trade policy-related information are gathered and analyzed. The information and analysis are provided to the President, the Office of the United States Trade Representative (USTR), and Congress to facilitate the development of sound and informed U.S. trade policy. The Commission makes most of its information and analysis available to the public to promote understanding of international trade issues.

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Do I need a license to export?
A relatively small percentage of total U.S. exports and reexports require a license from Bureau of Industry and Security (BIS). License requirements are dependent upon an item's technical characteristics, the destination, the end-user, and the end-use. You, as the exporter, must determine whether your export requires a license. When making that determination consider:

What are you exporting?
Where are you exporting?
Who will receive your item?
What will your item be used for?

Licenses are no longer required for all exports. Licenses are only required for restricted exports as stated by the Export Administration Regulations (EAR). An SBDC international business consultant can help you determine whether or not you need a license to export.

The export provisions of the Export Administration Regulations are intended to serve the national security, foreign policy, nonproliferation, and short supply interest of the United States, and in some cases, to carry out its international obligations. Licenses are granted on a case by case basis that can cover a single transaction or multiple transactions. Exporters apply for an export license through the Department of Commerce, Bureau of Industry and Security at the address noted below:

Department of Commerce/Bureau of Industry and Security
Office of Exporting Licensing/Export Counseling Division
14th Street and Pennsylvania Avenue, NW
Room H1099D
Washington, DC 20230

Tel: (202) 482-4811
Fax: (202) 482-3617

For additional information you may want to visit the Bureua of Industry and Security website.

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I need assistance in importing materials for my manufacturing process. Can the SBDC help me with importing issues?
Yes! The Pennsylvania SBDCs offer expert consulting assistance in importing issues especially for manufacturers who want to export their products. Often, importing raw materials that are otherwise unavailable in the U.S. is the only way manufacturers can be competitive in the global market. Additionally, further information is available online from the Import Administration.

To learn more about importing, download a copy of the Pennsylvania Small Business Development Center’s importing guide.

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What is a Foreign-Trade Zone?
A foreign-trade zone is a designated site licensed by the Foreign-Trade Zones (FTZ) Board at which special customs procedures may be used. These procedures allow domestic activity involving foreign items to take place prior to formal customs entry. Duty-free treatment is accorded items that are re-exported and duty payment is deferred on items sold in the U.S. market, thus offsetting customs advantages available to overseas producers who compete with producers located in the United States. Sub-zones are special-purpose zones, usually at manufacturing plants. A site which has been granted zone status may not be used for zone activity until the site has been separately approved for FTZ activation by local U.S. Customs and Border Protection (CBP) officials, and the zone activity remains under the supervision of CBP. FTZ sites and facilities remain within the jurisdiction of local, state or federal governments or agencies.

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Where can I find information on tariff and import fees?
Your first step to finding information on tariff and import fees should be your local SBDC international business consultant. It is very important to consider the effects of tariffs, taxes, port handling fees and other miscellaneous customs charges when determining your product's final cost. Depending on your product and country of destination, customs charges will affect the price your buyer is willing to pay for your product. Typically, the importer (buyer) is responsible for paying these charges. However, the responsibility for paying customs charges ultimately depends on how you define the “terms of sale” with your buyer. For additional information on tariff and import fees visit Export.gov.

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I want to do business with Canada and Mexico. Where can I find information to help me?
The Pennsylvania SBDC international business consultants are well versed in the requirements to do business in both Mexico and Canada. Regulations concerning trade with Mexico and Canada are outlined in the North American Free Trade Agreement. The SBDC international business consultant will help you understand these regulations along with Free Trade Area of the Americas (FTAA) and the U.S-Chile Free Trade Agreement. For additional information on NAFTA and Inter-American affairs visit the NAFTA website.

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I have a product that is covered under a U.S. patent and is protected by intellectual property rights. Is my product safe if I sell on international markets?
Not necessarily. In fact, the extent of protection and enforcement of these rights vary widely around the world and one rule does not apply to every country. If you are dealing with patent or intellectual property rights issues, it is imperative that you speak with an attorney specializing in international patent and intellectual property rights before you begin selling abroad. An international business consultant can help with the basic issues surrounding this topic and provide you with resources that will help protect your product. Additional information can be found at the World Trade Organization website.

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This is my first entry into an export market and I need some legal assistance. Is there someone to help me?
Yes! The Pennsylvania Small Business Development Centers maintain a referral listing of attorneys in your area with expertise in international business. Additionally, the U.S. Small Business Administration can provide assistance through the Export Legal Assistance Network (ELAN). The Export Legal Assistance Network is a program under which lawyers from the Federal Bar Association and other interested professional associations volunteer to provide initial legal consultation free of charge to companies making their first entry into the export market. The purpose of the program is to have lawyers with knowledge of export-related matters at the ready to help new exporters over the first hurdles in what may otherwise seem to be a strange and difficult new area.

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What documentation will I need to ship my goods?
An international business consultant will work with you to gather all the necessary documentation for your international shipment.The basic documentation you will need includes:

Commercial Invoice – This document is required for exporting and includes all the terms of sale. The commercial invoice must conform exactly to letters of credit, including misspellings and foreign languages. Product descriptions, prices, weights, and other information must follow requirements specified by the target country.

Bill of Lading – Shipping companies or freight forwarders usually provide a bill of lading.

Insurance Certificates – Exporters need these certificates if the terms of sale include cost, insurance, and freight (CIF).

Certificates of Origin – These are official documents that many Arab and Latin American countries require. Consulates generally sell the forms, which are then filled out in the language stipulated. For an additional fee, the consul stamps them to make them legal documents.

Certificates of Origin – Although these usually appear on the invoice, many countries require a separate certificate oforigin.

Certificates of Inspection – These consist of either an affidavit or a certificate from an official government agency or independent inspection company.

Dock Receipts – These are necessary when the exporter is not directly responsible for transporting goods to a foreign destination or otherwise needs to prove that the goods have been delivered to a port for further disposition by the importer.

Shipper's Export Declaration (SED) – Exporters may be required to file a SED when taking commercial goods out of the United States.

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