International Trade Resources Podcast

Today on the International Trade Resources Podcast we have taken an excerpt from arecent webinar. The webinar is moderated by Kim Kirkendall and she is joined byRussell Brown, and Art Dicker. They discuss the complexities and regulations involvedin closing or scaling back business operations in China, with a focus on regulatory,financial, and strategic aspects.This episode includes a focus on the actual liquidation process – Kim and Russell diveinto the key aspects and regulations that govern business closures in China, includingcompany law, taxation laws, labor law, union law, bankruptcy law, and foreigninvestment enterprise law. The closure process involves interactions with governmentbureaus, tax authorities, customs, state administration of foreign exchange,administration of market regulation, banks, social welfare bureaus, and other relevantagencies. The closure process typically begins with an application letter and involvesvarious documents and approvals. Tax-related matters, including transfer pricing, canbe time-consuming and complex.Considerations for closing include deciding when to close or change operations andannouncing it to employees, complying with labor laws and severance pay, ensuringcompliance with various contracts and supplier agreements, and handling customerrelations, contracts, and asset shipments. Managing taxes is also an important aspectto consider, including corporate income tax, import duties, customs duties, individualincome tax, property tax, and social welfare contributions.Lastly Kim and Russell look at the planning, strategy, and procedures for closing.Planning and strategy can include pre-planning and assessing potential liabilities,evaluating financials and taxes, and developing a comprehensive strategy for theclosure or restructuring process. Throughout the closing process, it’s key to obtainclearance letters from government bureaus, maintain documentation for a specifiedperiod, and explore options for voluntary bankruptcy or restructuring if necessary.Closing or scaling back business operations in China is a complex process that involvesa multitude of regulations, interactions with various government bureaus, and carefulplanning. Learn how in this information-packed episode!Things you’ll learn● The complexities and regulations involved in closing or scaling back businessoperations in China.● The various regulations that govern business closures and changes in China,including company law, taxation laws, labor law, union law, bankruptcy law, andforeign investment enterprise law.● The need to interact with government bureaus such as tax authorities, customs,foreign exchange administration, market regulation, and more during the closureprocess.● Factors to consider when deciding to close or change operations, includingemployee management, contract compliance, customer relations, and assetshipments.Episode Sponsors:Acclime China:https://china.acclime.com/Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Josh Rodman, a partner at Sandler, Travis & Rosenberg, to discuss the complexities of Country of Origin, or COO. Country of Origin is not as simple as it seems, with different definitions by different agencies that can impact both import and export. In this episode, we dig into the details with Josh as he shares actionable steps for staying up-to-date.First, Kim and Josh discuss how COO can affect general aspects of importing like assessing duties and tariffs.  COO regulations can be different for duties compared to the labeling of the product's country of origin.Multiple trade agreements and agencies are interested in the COO, and they may have differing standards that impact what the final determination of COO will be - for their purposes.  It may be one COO for one purpose (duties) and another for another purpose (labeling).Determining COO may require you to dig into the bill of materials (BOM) to identify where components and materials came from to decide. Josh talks about how It becomes more complicated if some of the parts were made in China, but finished in Mexico or Vietnam. Kim mentions how companies selling direct to consumer in the US don't necessarily consider these issues when they pivot to shipping larger quantities to the US for distributionLastly Kim sheds light on the political nature of many regulations and rulings in the last ten years. The layering of COO regulations between different agencies, trade agreements, and regulatory bodies that all have an interest in the outcome, means this process is not a simple decision. Josh mentions how different US acts such as Buy America, and agencies such as the ATF and FDA all rely on COO for how your product is categorized. . How do you stay on top of this ever-changing landscape? Learn how in this information-packed episode!Things you’ll learn How Country of Origin (COO) can require the use of different assessment methods for different agencies and purposes.The layering of COO regulations and some of the agencies, agreements, and regulatory bodies that have an interest in the outcome.How to make sure you are considering all the factors that could affect your product when you are importing. .Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Ricardo Moreira to discuss Total Cost of Ownership or Optimization (TCO). Many companies already have implemented a series of initiatives to reduce costs, which has made it more difficult to find ways to bring costs down even further.  In this episode we explore ways to find “hidden” supply chain costs that can add to the company’s bottom line.First, Kim and Ricardo look at what factors contribute to cost. This encompasses everything indirectly related to buying the materials or product, activities such as; training your workers to use the new machine, testing to accept a new material, and more. It can also include costs related to not taking actions, items such as; poor quality materials or machines that are defective, down time in the factory, or scrap rates.  Ricardo quotes Richard Drucker, "You can't manage what you don't measure,” underlining one big issue for the procurement team. How can procurement measure expenses in other departments of the company?  Thankfully, Ricardo shares some methods to convinceing colleagues to share information so that an analysis can be done. Lastly, Kim and Ricardo discuss process-based costing, also known as ABC or Activity Based Costing. Now known as Quantum Costing, it’s a method to capture the cost of procedures and activities in the supply chain and related areas of the business.  How does this fit into TCO? Learn all this and more in this information-packed episode!Things you’ll learn The difficulties of continuing to reduce costs and ways to identify hidden or indirect costs that can save organizations moneyMajor issues when gathering data from colleagues and methods for accomplishing your data collection. Quantum Costing and the importance of not only gathering data, but analyzing it.Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Scott Scofield to discuss the keys to success when importing into Japan. Kim and Scott break down the ways in which Japanese import compliance is opaque, not digitized, and how it relies heavily on the import partner. Why are import partners so critical to success?  They hold many of the rights and responsibilities, so changing partners later on can result in problems. Selling into Japan can be complex for companies new to the process. There are multiple steps for import compliance, including selecting the importer of record, meeting product and labeling standards, as well as applying and being approved for other regulatory compliance (medical, food, electronics, etc). The import application itself is complex, almost like a patent application.  Filling it out requires the company to disclose information about the product, the materials, and how it’s made. In addition to the import application the product may need to be registered with various regulatory agencies, such as the PSE and PMDA.  These agencies provide ambiguous instructions, so someone with "tribal knowledge" is often needed to fully understand the process. Finally, Kim and Scott discuss best practices for companies selling into Japan.  It’s not all compliance!  .Learn all this and more in this information-packed episode!Things you’ll learn An inside look at how to ace the lengthy process to apply as an importer The regulatory bodies and the requirements to import into JapanHow your local partner that manages imports is a key decision, and why once you choose a company it will be difficult to change.Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Pradeep Sacitharan to discuss Using Data in E-Commerce for Product Optimization. He trained as a scientist at University of Oxford and at Harvard, and is founder and CEO of Donsfield, a company focused on International E-Commerce Development. First, Kim and Pradeep dive into one of the major ways to succeed in E-Commerce, and that’s by making sure you're focusing the company's time and energy on the products that actually sell in your business and eliminating the products that don't. A good starting point is to analyze your primary data by looking at sales trends, analyzing profitability, and capturing hidden costs in that analysis. Next, Pradeep dives into third party data on sales, including the different methods of collecting publicly available data including how to analyze that information to optimize product offerings. If you collect and analyze the right data, it will actually tell you what the consumer is looking for, even if the consumer is a bit confused. How you ask?  Listen to the podcast to find out!  Overall it's critical to look at product data across markets, brands, customer demographics, and more segments to help you identify opportunities.   Learning to use unit economics can help optimize your ad spend. We know cost per click on Google, Meta, and Amazon advertising is increasing. By looking at your unit economics, you can see what your margins are and adapt your marketing plans according to the data. Finally, Pradeep covers the importance of analyzing your competition. Understanding what makes you different or what your differentiation factor is can be the key to longevity.  Unique selling points are easily copied - what is your overall benefit to the customer that drives them to you?  It may be a great mix of products - which is why some of the greatest brands on earth keep bringing new products out. It’s figuring out which products, in which international markets, that is the key to continued success!Learn all this and more in this information-packed episode!Things you’ll learn How business can better utilize data to optimize product mix in international E-Commerce.How unit economics can help businesses make good use of their data to measure true profitability.The importance of analyzing the competition.- and not just their top sellers - to better understand the market and your own business.Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Bob Eckman to discuss tangible concrete steps companies should be taking to protect their data in a global business environment. This episode is full of actionable information to help your company assess risk and protect data.  Bob joins us with over 30 years experience in IT and as a leader in Cyber Security innovation. To start the podcast off Bob shares that one of the key issues for organizations in managing data risk - and it’s as simple as not recognizing the value of their data. Too often companies don’t have systematic mechanisms for identifying the risk for each category of data (personnel, customer, financial, etc.).  They think of the obvious, but often miss categories of data that can be very damaging to the business. Kim asks Bob to share what the major threats facing a company are, and he lists; data being held hostage, ransom attacks, and partners selling data. That last one may be a surprise to many companies as they don’t consider what their SAS partners are doing with the data or how secure their data environment is. . Next, he outlines three ways that data is most likely to be compromised — email, shared drive, and ERP system. Bob and Kim talk about the methods used to access data in each of these.  He shares the most effective ways to protect these data types, including encryption and classification.  An area often overlooked by companies is compliance with foreign regulations on personal data, hosting data, and more. Finally, Bob and Kim recap the steps listeners can take to protect their data. Some of these include; credentials, training, passwords, blockers, and storage. This episode is full of tools you can start using today to ensure you and your company are adequately protected. Learn all this and more in this information-packed episode!Things you’ll learn The entry points for data thieves (email, shared drives, and ERP systems).The four methods to secure data.The biggest issues you are not aware of with staff, outside providers, and partners.Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Alejandro Alcalde to discuss the recent impact supply chain disruption, politics, and tariffs have had on trade between Mexico with the US and Canada. Alejandro is a trade compliance professional who is also currently studying for his trade lawyer diploma and consecutively attending the Mexico Trade and Law College in California, Mexico to get a  degree in international business and customs law. Americans like to call USMCA the “new NAFTA” because it replaced NAFTA. What has changed?  Companies are keen to understand its impact on compliance for international trade. In this episode we will discuss these changes and other factors over the last few years that are catching companies off guard.First, Kim and Alejandro discuss Country of Origin or COO and how that has become a major focus for imports from Mexico.  Why? As companies shift production from China to Mexico, and in some cases only do final assembly or packing in Mexico that can impact COO.  The rules of country of origin can be applied differently between USMCA and USTR regulations.  In some situations based on value and in others based on substantial transformation - this is critical to understand!  Besides the COO issue Alejandro also talks about how the current president changed the tax system and moved it under the military. Customs is now more robust, and the impact felt by importers & exporters has increased. The Mexican government wanted to exert more control to reduce tax evasion, smuggling, etc. Finally, Kim and Alejandro outline what steps a company can take to make sure they are compliant so that their shipments cross the border with ease. Best practices include; looking at the product’s BOM, the COO of raw materials / components, confirming the HTS code, and doing all this planning in advance of production.  Learn all this and more in this information-packed episode!Things you’ll learn Why defining the country of origin is important and how this is applied under different regulations / agencies like the USTR and USMCA. What are the changes with the implementation of USMCA and under the current President of Mexico - and how are they felt in cross border trade.Best practices to make sure your company understands and can comply with regulations so that shipments cross the border with ease. Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Andrew Jeanblanc to discuss credit risk insurance. Andrew has spent the last eight years in trade finance and international credit risk insurance. Currently he’s the business development manager broker for a Risk Insurance company which specializes in private trade risk and credit risk insurance. He’s also worked in many business development and project management roles, as well as spent some time in China.First, Kim and Andrew dive into what credit risk is and why companies may need outside help in order to mitigate it. Credit risk insurance helps companies minimize risk undertaken when they export and sell overseas. Primary risks companies may encounter are non-payment by foreign companies, foreign war, political violence, cancellation of import license, and more.Andrew breaks down what the requirements are for EXIM bank to provide credit insurance and how that compares to a private insurer. Ultimately, when determining which policy type to go with, the insurance company will have to determine what exactly they're covering. Companies should expect a deep dive into their business and the transaction. If a company is new to export, that's when Andrew would steer them more towards EXIM (if they qualify).  EXIM makes more sense for companies with newer customer relationships and/or new to international.Finally, Kim and Andrew list some of the benefits and limitations of EXIM insurance. Companies get 95% indemnity with 5% co-insurance coverage, whereas in private markets you’d usually get 90% indemnity with 10% co-insurance. Companies may not qualify for EXIM if they’re selling products that aren't US made, products that have military use, or are selling to the military, as those are some of other limitations of EXIM insurance. Learn all this and more about credit risk insurance in this information-packed episode!Things you’ll learn Start with EXIM bank if you can due to lower cost and only pay when you use it.  Private insurers can be more flexible but they will charge more for the flexibility.  You still need a solid sales order with reliable customers and reasonable payment terms for anyone to finance the sale.Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Tony Nogueras, owner of Alliance International, to break down Duty Drawback. Not enough companies take full advantage of this program which allows people to recapture duties on products that were imported - either when they later export the same or similar goods or when there is another triggering event. Tony joins the show to discuss how companies can identify opportunities and maximize recapture.First, Kim and Tony discuss how tariffs have been an impediment to many companies' profitability when importing from China, and how duty drawback can help recapture some of that expense. These tariffs still have a huge impact on US companies and the cost of goods in the United States. There have also been exclusions and exceptions in place or have expired, which can make navigating section 301 Tariffs particularly difficult.  Duty Drawback is a US government program where you can reclaim duty paid in certain situations, such as when you export or when goods are deemed obsolete. The regulations in Customs Regulations Chapter 190 specifically allows for the refund of duties, taxes, fees incurred at the time of importation if you have product that's subsequently exported. We can look at this as an important export incentive program. However, there are other factors that might need to be considered, such as foreign trade zones, bonded warehouses, and temporary import bonds that can affect tariff mitigation strategies.Tony dives into the details of how duty drawback works; the 5 year lookback period, the difference between filing based on direct identification or substitution, and calculating raw materials imported value compared to exported finished goods. Often a claimant can see potential recovery, but aren’t sure how to match an export back to a particular importation. Navigating that process can be very painful.Lastly, Kim and Tony cover the 2015 program, TFEA, and how it makes it easier for companies to optimize duty drawbacks, what process to follow, and what documentation to keep in order to be successful and limit liability. Under the new substitution rules, there’s less worry about material grades, part numbers, and specifications. They’ve liberalized the substitution matching so that we only have to match the harmonized tariff schedule number at the 8th digit.Listen now and start exploring strategies to minimize tariffs and maximize Duty Drawback!KEY TAKEAWAYS:Duty Drawback can seem overwhelmingly complicated, but it can also save the company significant moneyThe US government TFEA regulations have created more opportunities to file for duty drawbackIt is important to understand the regulations, what procedures to follow, and how to document the basis for filing.Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Hiten Shah, founder and President of MES, an Inc 500 company supplying critical components from Asia, to discuss supply chains shifting to India. With tension between the U.S. and China, many companies are setting up dual sourcing in India. In this podcast episode we explore the latest trends and best practices for how companies can optimize and control multi-region supply chains.  We discuss the benefits of sourcing from India. One of the largest growth areas is the automotive and component supplier segment. Hiten also summarizes other key industries including textiles, electronics, and software, and the regions currently on the rise in India. One limiting factor is that India is a net importer of raw materials, and so it has to balance its domestic needs versus what it can export.Other challenges to sourcing in India include poor infrastructure, government bureaucracy, and regionalism.  The business environment in India is one of the issues any foreign national could struggle with, and Hiten recommends having local team members, managers, and leaders to help you navigate the regulatory compliances and paperwork. The slow pace of the regulatory environment in India significantly impacts the speed with which things move. Each region has its own labor pool, but there are pockets where labor conflicts and competition can cause challenges. Kim and Hiten discuss the importance of managing teams in India. Like in China, there is a very hierarchical management style where employees defer to their superior. Therefore foreign management often ends up encouraging staff to increase independent thinking. Listen to the podcast to hear more about developing your staff.They agree that Dual Sourcing can result in challenges when coordinating suppliers between two regions. There are multiple sets of tools, product changes, the challenge of keeping two suppliers busy, packaging differences, and raw material differences. Hiten shares some of his experience on how to manage these multi region supply chains and the importance of gathering all the details as you're developing the product and communicating clearly and quickly between the stakeholders in the supply chain. Finally, Hiten and Kim recap the best methods of navigating changes in the an expanding supply chain. These include having a customer focused strategy that determines the sourcing direction makes the decision more clear.  Some components to a good strategy include having a strong MRP system, and planning teams!  Hiten shares many of the key components his company uses to multi-region supply chain success. Things you’ll learn India is growing manufacturing industrial centers but companies will need to develop staff skills, raw material sourcing, and work within the pace of businessDual Sourcing can drive the need for additional resources to ensure product conformity, optimal product supply, and coordination of efforts worldwide.Managing teams in India is similar to China where the culture is hierarchical and the company needs to develop employee soft skills and collaboration.Episode Sponsors:  Acclime China:https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China.Website: www.intltraderesources.com Email: intltradepodcast@gmail.com Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.