International Trade Resources Podcast

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Josh Rodman, who is a Senior Associate Attorney with Sandler, Travis & Rosenberg, to discuss the customer risk in Export Compliance as it fits into the interplay between customer, product, and country. NOTE: none of the information here or in the podcast is legal advice and it is provided for informational purposes only. We discuss the different organizations listeners need to be aware of for Export Compliance. These organizations include the Department of Commerce, Department of Treasury, The Department of State, and Bureau of Industry and Security. Josh also covers acronyms such as CIFUS, OFAC, SDN, CSL, CCAT, CCL,  ITAR, EAR, and ECCN. When we talk about export controls that apply to products, we're talking about US Department of Commerce and State rules. Treasury and OFAC rules relate to sanctions.Kim and Josh move into how important it is to know your customer. Josh emphasizes that a company's responsibility does not end at their sale to a distributor. Depending on the country that the distributor is located in and the export control level of the product or products, you may need to do additional digging and research on who the subsequent customers will be after the distributor takes possession of the goods. It can be important to get additional information or written assurances from the distributor as to who the subsequent customers will be.The OFAC 50% rule applies to company ownership of customers, distributors, end users. The Department of Treasury puts out a list called the Specially Designated Nationals list, among other resources. Doing business with individuals and/or companies on the SDN list typically requires  a license. Josh notes that the Department of Treasury typically doesn’t issue licenses to anyone on the list. Josh explains how the 50% rule works as it applies to SDN companies & individuals.  Josh discusses resources available to companies looking to improve their export controls. He shares the many free tools available by the Department of Commerce or through the Department of State. Kim talks about the importance of primary and secondary data collection when companies are doing their research.   When it comes to the “who” part of export compliance, a lot of the work  revolves around gathering information and asking questions. We note how complicated that can be in daily business when sales people may not be as aware of compliance regulations.  Establishing  a compliance team can help ensure gathering information from customers becomes a daily part of business. Things you’ll learn The three factors in export control risk don't exist in a vacuum.  The company needs to assess customer, country and product in most situationsOur guest outlines free resources companies can use to research their export transaction to identify if that sale falls under regulations and learn about what to do if it doesThe importance of training and procedures to reduce the risk of a problematic transaction and for support if there is a government investigation into a prior transactionEpisode 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 Elaine Ho and Nicola Licata, managers at Clean Energy Associates. They discuss the ins, outs, and issues with supplier compliance audits. Companies must be compliant with regulations and programs such as ESG, UFLPA (Uyghur Forced Labor Act), CTPAT, and others. The environment of increased regulation is currently impacting the international trade ecosystem, and Elaine and Nicola are here to offer insight into the steps your company can take to be compliant. Nicola is a Senior Project Manager - ESG & Traceability in Shanghai, China and works on traceability and chain of custody audits. Elaine is the ESG Project Manager, and is focused on financial analysis. CEA is focused in the solar industry and they go deep into the supply chain to confirm information for their foreign customers.We begin the episode discussing the two biggest components of supplier audits: remote document review and onsite supplier audits. The geopolitical situation recently has become much more tense between China and the U.S. and that has complicated every company’s ability to perform supplier audits. Customer facing nodes of the supply chain will always be easier, but as you go upstream into the B2B suppliers (second, third, fourth, fifth tier sub-suppliers) it becomes increasingly difficult to obtain documents and schedule onsite audits. Nicola talks about some of the Chinese policies that complicate audits - China Anti-Foreign Sanctions Law, PIPL (personal data privacy). Nicola stresses the importance of Supply Chain Mapping, appealing to the supplier’s self interest, and other tips to overcome their reluctance. Elaine and Kim discuss another way to solve this problem with public third party data and gathering indirect information from the supplier. Elaine also highlights how the information she gets from reviewing the supplier's financial information can provide insight into their company and how they can use the Altman Z Score for analysis.Kim mentions that Supplier Compliance Audits are not only about meeting government regulations, many companies have programs that require the same standards. ESGs (environment, social, and governance), company values are a big movement and both Elaine and Nicola have seen this growing customer expectation. As more companies embed their values into their procurement strategy, suppliers are responding by shifting their own supply chains to meet heightened standards of accountability.  Finally, Kim, Nicola, and Elaine discuss the services Clean Energy Associates provides, the companies they work with. Listen now for all this and more on the International Trade Resources Podcast!Things you’ll learn U.S. regulations are increasing requirements for importers to document their supply chain - and Chinese government regulations have made it harder to comply with U.S. regulationsRecommendations for how companies can gather information on their full supply chain, drilled down to the smallest sub suppliersHow are Chinese companies adjusting (if they are) to these increased US requirementsEpisode Sponsors:  Acclime China: Corporate Services and full Accounting/CPA/Tax for China.https://china.acclime.com/ 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 Francis Kremer. Francis works in China and has been for about six years. He's the sales and marketing director for Juli Automotive, an electric vehicle (EV) motor company. In this podcast he shares insights on managing teams and the differences between selling to domestic and foreign customers in China.We begin the episode talking about how Francis found a job working in China after working unsatisfactorily in Germany. He realized he could stay in Germany on this path, or pursue work in China. His first job was with a German company in China, but it wasn't the best fit.  However he learned a lot about how Chinese companies operate and he eventually moved to his current company Juli Automotive.Francis discusses the challenges and benefits for domestic companies selling into China compared to foreign companies. Foreign companies, such as American, German, Italian, and Japanese, have a big advantage because what they sell in China is a product they’ve developed for decades. They’ve developed deep technical knowledge, so Chinese consumers like working with them. However, it comes with culture and language barriers, which Francis describes. Francis then discusses Chinese companies and how they compares to foreign companies. For Chinese companies, helping them establish credibility and trust with the customer is important to building success when working in foreign  customers. Francis also covers certain challenges he faces as a foreigner working in China, such as transparency, skills, and trust.  Finally, Francis and Kim discuss creating a system that encourages spontaneity and still establishes procedures. Many foreign managers struggle with not getting much detail back from their Chinese teams - and on this podcast we talk about why that happens. Because of the lack of transparency - foreign management can be concerned. That is why transparency and building trust are key, both for domestic and international team members. Listen now for all this and more on the International Trade Resources Podcast!Things you’ll learn The benefits of domestic vs foreign selling styles with Chinese customersHow Francis manages to build trust as a foreign manager working in ChinaAdvice on how to build a more efficient team based in trustEpisode 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 Michel Nouafo to discuss growing international sales organizations.  In this podcast he shares insights on key factors and best practices for building a world class sales organization to can drive sales, increase market share, and increase customer satisfaction.We begin the episode talking about the stages companies go through when growing an international sales organization. The biggest challenge is that many companies don’t create a long-term strategy, but rather react as opportunities come their way. If you go into it with a plan, it makes growth that much easier. A key component to growth in a developing market is having a sales agent or representative in place to help implement the sales plan.Michel explains how to recognize when it’s time to take each next step. One challenge to your growth can be the structure of your sales and distribution models. Sometimes the business model can be the reason you aren’t growing. Financial ROI, calculating risks, and resource analyses are key aspects to deciding whether or not to expand. Kim and Michel also touch on common challenges faced by businesses as they move through the growth stages and how to best overcome them. Michel outlines why a company may want to move towards having “boots on the ground.” Those drivers include better control over your plan, increased sales, market intelligence, and providing technical support. Listen as they talk about the options companies have for expansion and how to ensure the investment is well placed. Finally, Michel and Kim discuss how to measure success, including areas such as; running financial forecasts on expected sales, customer feedback on support, and meeting your anticipated margins. When you’re faced with difficult choices, as we often do in business, it can come down to whether you are profitable enough to sustain yourself through volatile sales cycles. Unfortunately, not everyone has the experience to assess the opportunities and risks. Having tangible goals, long-term growth plans, and a metrics driven mindset are key components to setting up for success. Listen now for all this and more on the International Trade Resources Podcast!Things you’ll learn The stages companies go through when growing an international sales organization.How to recognize when it’s time to take the next step.Measure success and return-on-investment.Episode Sponsors:  Modifi:www.modifi.comBusiness Payments for Global CommerceWith MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe.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 with Emilio Estevez to discuss trade financing exports. He is currently an account executive with the North American team at Modifi and has experience in a variety of different companies in financial services. We begin the episode talking about one of the most common ways to finance exports - a Letter of Credit, or L/C. It’s a guarantee from the bank that they are providing to both the seller and buyer. A guarantee that the buyer will pay a certain amount at a specific time. When you’re dealing with different countries and laws you might not be familiar with, that Letter of Credit provides security. You are also able to customize the letter to fit the transaction. Having everything laid out, can also make things very rigid and difficult to change. Another downside is that the funds must be available in order for the bank to provide the L/C (in your account, etc). Kim and Emilio discuss the details of L/C’s to start the conversation. Next Emilio mentions other options, including common term loans and Lines of Credits, which also use collateral owned or owed to the borrower. There are challenges to using these loans for exports, one of which is because the banks think foreign buyers are more risky. However many companies don’t want to use cash flow to finance orders, so if the company has a heavy balance of domestic customers to balance that risk, these options allow for more flexibility.  Emilio and Kim discuss these in more detail in the podcast.Another option is supply chain finance programs.  These give buyers a way to get paid now, but allow their customers even 90-100 day payment terms. Factoring is common for domestic orders and collections, in part because the service provider can qualify your customer more easily.  However many people don’t realize it’s available for exports as well.  One of the other benefits Emilio mentions is that as a seller, it’s hard for YOU to qualify your international customers in general, not only for payment. That’s part of the risk the factoring service takes on. Kim and Emilio talk about the challenges of finding company and credit information on foreign customers in some countries.  (hint: listen to our earlier podcast on international trade data for customers)In summary Emilio notes that there’s two main counterparts to international trade: trust (who is the counterparty, will they get the product you need, and will you get paid) and time (when you get paid). In trade finance, these are addressed to make sure needs and expectations are adequately met. Learn more about the ins and outs of trade finance with Emilio now!Things you’ll learn The different options for financing exportsThe pros and cons of eachAn export financing option many companies don’t know exists. Episode Sponsors:  Modifiwww.modifi.comBusiness Payments for Global CommerceWith MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe. Acclime Chinahttps://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.

Welcome back to the International Trade Resources Podcast with your host, Kim Kirkendall. On today’s episode, Kim and Ervis Micukaj discuss business data production across borders. Ervis is the owner of Jet Services in China and provides a variety of data security services to foreign companies with business interests in Asia. In the discussion today we talk about how many employers and employees aren’t aware of the legal requirements for sharing data, and how that can cause major issues. In mainland China, management has to choose between two options: separate the China network from the Global network, or to combine into one worldwide system. To make that choice one should consider who is in charge of decision making, manages the solutions, and who will establish the rules, access, authority, and more. Having a strong local arm and a strong international arm is critical to success. The PIPL is China’s data protection law, and you don’t have to have a company in China to be subject to the PIPL. The new law is not on most foreign company’s radar - it is not even on most Chinese company’s radar. So it is important to understand the requirements - Kim and Ervis discuss this new regulation.  Ervis also performs IT audits for his clients and ensures they are using the right vendors to stay in compliance. One major issue is where they are store their information to be compliant with Cloud storage regulations. Many people in upper management in the west are in their fifties and sixties, so their views and experience working with China is from twenty years ago. There were less regulations and need for compliance, which is just not the case anymore. Ervis talks about what questions to ask your teams to stay safe today. VPNs are another hot-button topic in Chinese data protection. VPN stands for Virtual Private Network and allows various entities access to a network controlled by a company’s IT team or outside service provider. It can be used to access data across countries - and avoid the great firewall of China. Commercial VPNs in China are illegal, so you should not provide them to your employees locally. Kim and Ervis discuss what VPN’s are legal and what companies provide the best services. Things you’ll learnBackground on China’s data sharing networksPIPL and China’s protection lawsChina’s use of VPNs and the regulations around themEpisode Sponsors:  Modifiwww.modifi.comBusiness Payments for Global CommerceWith MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe. Acclime Chinahttps://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 with “Tom,” an anonymous guest working in Southeast Asia for a conglomerate of Taiwanese companies. He is anonymous because he is going to give us a behind the scenes look at factories overseas. “Tom” has years of experience living in Asia (he is North American) and working in the trade and supply chain space. This is a critical episode or importers! Our topic today is the dynamic between Asian owned manufacturing and their foreign client’s management, and how that impacts the regular business transactions. “Tom” offers insight on how specifically in China, Taiwan, and Vietnam the locally owned companies interact with their foreign clients.  In this discussion we focus on the intersection of China, Taiwan and Vietnam.  Vietnam in particular has seen massive growth in foreign direct investment, and not just from western investors, but companies from Mainland China have been expanding into Vietnam. Our anonymous guest breaks down the dynamic behind the scenes of the most common interactions between domestic Asian manufacturer and foreign customer - including the lies that are told. It is a foreign customer's greatest fear - that the factory changes materials to lower cost or accepts a low price and then increases later.What is the focus of the lies?  Compliance standards, pricing, sub contracting, quality assurance, and more are all possible areas affected. Many people incorrectly assume that this process is driven by the factory, when more often than not, it’s a result of another dynamic in play.  Listen in as Kim and “Tom” talk about what leads to these situations and offer advice for how to have a clear understanding of what is really happening behind the scenes.They talk about whistleblowing, bribery, falsified documents, and more.  And then we will break down the drivers behind these situations - is it greed or laziness or what?Finally, Tom offers his advice to buyers in the west to help them read between the lines and improve the outcomes - better product, fair pricing, etc.Things you’ll learn What is happening behind the scenes in Asian factoriesWhat are the drivers for fraud and falsificationWhat can you do about improving your product outcomesActionable items to improve your organizations import proceduresEpisode Sponsors:  Modifiwww.modifi.comBusiness Payments for Global CommerceWith MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe. Acclime Chinahttps://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 with Alan Scott, CEO of Laicon Consulting Services. Alan works with many companies in North America, helping them manage their CE and UKCA certifications, training, documentation review, compliance safety assessments, and other components surrounding CE certifications. Our topic today is how companies outside of Europe who are selling into the EU / UK can ensure they are prepared to meet CE requirements. Alan dives in with the four basic steps that should be taken for CE compliance: determining the correct directives, preparing your technical file, applying the CE mark, and obtaining a Declaration of Conformity. Each of these steps can be quite technical, so it’s worth taking notes on what Alan outlines. This is an informative episode and Alan equips our listeners with what they need to know before shipping their products. You’ll be surprised at what Alan shares, including that following Brexit – the UK is phasing in UKCA regulations, not CE requirements.One major theme in the discussion is that it’s important to be prepared BEFORE you start selling into Europe.  In this episode we get into a lot of the details that help companies be compliant. There are some key differences to understand between the EEA (European Economic Area) and the EU, and the important role a EUAR (European Authorized Representative) plays. This information will keep you protected ahead of any problems that may arise. Alan then goes on to explain crucial aspects of EN (European Norms), a set of guidelines for health and safety, as well as how to build a technical file for your product.Finally, he shares his list of top mistakes companies make when going through a certification process. You won’t want to miss it, or you could risk being a victim to one of the pitfalls he describes!Things you’ll learn 4 Steps for CE Compliance Changes happening in the UKCA and CE requirementsDifferences between EEA and EUThe role of a EUAR (your representative in Europe - now required)Understanding EN, technical files for your product, and liabilityMajor mistakes companies make throughout the processLinksECEuropa.eu - the European Commission's official websiteContact: alan.scott laicon.usEpisode Sponsors:  Modifiwww.modifi.comBusiness Payments for Global CommerceWith MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe. Acclime Chinahttps://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.

On this episode of the International Trade Resources Podcast with your host, Kim Kirkendall, we’re sitting down with Art Dicker. Art is a senior lawyer at R&P China Lawyers, a full-service PRC law firm advising international businesses in China. He’s spent the last 15 years working in China to advise technology, manufacturing, and consumer companies on structuring their investments and managing legal risk in their operations here. He’s the host of the podcast Ganbei and is involved in the American Chamber of Commerce in Shanghai. Our topic today surrounds supplier agreements and why they are so important. Many people will establish basic Purchase order Terms & Conditions with their supplier, who will then, in turn, send back their acceptance with their own Terms & Conditions. This can lead to a lot of obscurities in whose terms control. A basic purchase order with basic terms and conditions is not going to be comprehensive enough to protect the seller. In addition, a supplier agreement leads to a better understanding of expectations between you and the supplier. It can protect payment and ownership, which T&C’s don’t do. Art and Kim go on to discuss what many companies miss when drafting a supplier agreement and problems that can arise. A major point of contention that foreign companies face when dealing with Chinese suppliers is agreeing on indemnification and insurance coverage. Indemnification is essentially another party promising to defend you in case you are sued by a third party. The idea of a supplier defending you if you’re sued comes as a foreign concept to many Chinese business owners, especially when dealing with IP ownership outside of China. So, how can the disconnect be addressed? Art and Kim discuss strategies you can employ to make sure you are covered. The issue of IP ownership has evolved in China over the years, and it’s critical to be very clear about the IP you’re using. In China, any improvement the supplier makes to your technology, can mean the technology is theirs, unless you can argue otherwise. Art and Kim extrapolate on why NDAs aren’t enough, and ways you can protect your IP ownership. Finally, there is one major, but simple mistake many companies make that can make or break your IP, and Art points it out. You don’t want to miss it. Things You’ll LearnThe difference between Terms and Conditions and a Supplier Agreement, and why they are so important.Indemnification and Insurance coverage as it relates to Chinese suppliers.How to protect your IP ownership and what to look out for when drafting an agreement. LINKSdicker@lplawyers.comEpisode Sponsors:  Modifiwww.modifi.comBusiness Payments for Global CommerceWith MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe. Acclime Chinahttps://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.

This week we’re talking with Jim Wilson, Functional Lead at Nitor Partners. With over 30 years of experience in banking, international treasury, and accounting with various major companies, he’s here to break down how you can strengthen your cash flow and improve your supply chain.Jim dives into the various ways of arranging international trade payments and the nuances that come with doing business overseas. Optimizing payments help your company to manage resources and improve cash flow.  Letters of credit are common, and can help manage cash flows, but there are other methods that companies often over look. There’s also the option of extending payment terms. If you are paying your suppliers later, you can hold onto more cash. The name of the game, Jim says, is to extend the payments as long as possible and one way to do that is to follow industry metrics. At the crux of extending payment is utilizing data to identify the opportunity to extend payment terms. When working with his clients, Jim will look at the previous 12 months of spending, segmented by the supplier, industries, and other specialized categories. From there, they’re able to look for inconsistencies between the client’s payment terms and the averages. Jim can help you use that data to compare how you’re paying versus other competitors in your industry. Jim then goes on to describe the reasons why so much money is being left on the table when it comes to payment terms. Much of the problem stems from a lack of understanding about the process and how to maximize cash flow through the negotiation of payment, the steps a company takes to send and receive payment, and more. He then shares with us his best practices in regards to finding data, using it, and making a decision. Things You’ll LearnThe fundamentals of analyzing payment terms: getting the data, analyzing it, and making a decision based on the analysis.How data can be used to leverage a better situation for your company when compared to your peers and competitors.Major pitfalls companies face, and best practices for maximizing cash flow.Episode Sponsors:  Modifi Payment Solutions. www.modifi.comBusiness Payments for Global CommerceWith MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe.Acclime Chinahttps://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for ChinaWebsite: 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.