November 17, 2016      wtcutah.com   Facebook Twitter   LinkedIn   Instagram

Helping Utah Companies Think, Act and Succeed Globally

CEO Derek Miller

President's Message
Derek B. Miller, World Trade Center Utah

Earlier this month we hosted the Business Innovation Summit of Eastern Utah in Vernal with our partner the Department of Workforce Services (DWS).

We were thrilled to be joined by more than 100 local business leaders from Duchesne, Daggett, Uintah, Carbon, Emery, Grand and San Juan Counties for the event. Motivating and educating these business leaders regarding global business opportunities is one of our highest priorities. We believe exporting can help lift rural economies more quickly than many other efforts. With the resources that exist, barriers to global markets have never been lower and the time has never been better to grow exports from rural Utah.

We presented the Vanguard in International Business Award to Shamrock Mining LLC for its international growth. The company has grown the international share of its business to 35 percent of its total business in 2016. Meanwhile, we presented the Champion for International Business Award to Commissioner Ron Winterton for his important role in the development of the oil shale in the Uintah Basin. Congratulations to Shamrock Mining and Ron for their leadership.

Happy exporting!

Going Global: Zero Manufacturing

"We sell protection." That's a phrase Ryan Ramsey, president of Zero Manufacturing, likes to use to describe his company's products. "Our protection is in the form of aluminum, roto-molded plastic and injection-molded plastic cases," he says. "We manufacture highly engineered custom products that ensure the safe transport and viability of valuable equipment and electronics for our customers."

Zero's cases, enclosures and assemblies are designed, engineered and fabricated at the company's 300,000-square-foot facility in North Salt Lake, where the company employs 175 workers. Ramsey says Zero provides solutions through a standard product line, or the ability to customize any existing product or engineer and manufacture any protective solution from scratch.

The company got its start in Utah in 1992 after relocating from southern California. Zero is now a world supplier of protective cases and enclosures. Its specialties include quality, deep-drawn and fabricated aluminum and molded plastic cases, enclosures and assemblies for the aerospace, industrial, medical, oil and gas, logistics, electronics and telecommunications markets.

International sales comprise approximately 12 percent of Zero's revenues. Its primary international markets include India, South America, Canada and Europe. Military applications comprise nearly 50 percent of the company's sales, followed by aerospace, which is about 13 percent, and then industrial oil and gas, medical and food service.

As an original equipment manufacturer, the company sells its products to primary contractors, end customers and end users and utilizes manufacturing sales representatives to drive sales in its foreign markets.

Ramsey says Zero is the leader in aluminum deep draw manufacturing and is using its technical expertise to expand its domestic and international markets to meet growing demand for its protective cases. For more information about Zero visit its website, www.zerocases.com or call 801-298-5900.

'Discover Cuba' With WTC Utah and the Salt Lake Chamber

Join World Trade Center Utah and the Salt Lake Chamber for a "Discover Cuba" trip May 3-10, 2017. We'll explore Cuba's unique history with Utah business leaders and learn about the challenges and opportunities of doing business in Cuba. View the itinerary here.

The Salt Lake Chamber and World Trade Center Utah have been invited to a briefing at the U.S. Embassy in Havana. Join us for this optional event and learn about U.S. foreign policy in Cuba, policies and programs implemented in Cuba and normalizing the trade relationship between the U.S. and Cuba.

This trip is limited to a small group of travelers and registrations are due January 23, 2017 (based on availability). You must submit a completed registration form and a deposit to secure your spot. Contact Maria Loftis at mloftis@slchamber.com or 801.328.5047 for details.

Toolbox: Tax and Accounting Issues

In 2015, World Trade Center Utah launched its "10 Tips to Help You Think, Act and Succeed Globally." Since the launch, we have featured corresponding articles in the export toolbox section of our newsletter. We are pleased to revisit these "10 Tips" and dig deeper into topics that will be important as you pursue international business opportunities.

Our tenth tip, "Make Money," emphasized maximizing your profits by understanding export costs, the skill of payment negotiation and how to get paid on time. This article outlines a few areas of accounting that could have a long-term impact on your international expansion.

Transfer Pricing
Transfer pricing applies when two related parties, such as the domestic headquarters of a company and its foreign subsidiary, buy and sell goods to one another. Without government regulation, companies would set the purchase price where taxes would be minimized. Nothing is really being sold in this scenario, but transferred.

The rules of transfer pricing vary. A good rule of thumb is to use a price that you consider justifiable if this sale was made to a non-related party. Your company can then show it would use the same price for companies in which it does not hold financial interest.

Duty Drawback
Duty drawbacks apply to exports that contain components or raw materials that were originally imported into the United States. A drawback is a refund on the import duties of these components and raw materials. Drawbacks apply both to goods that are exported in the same state in which they are imported as well as goods that transform raw materials into something new.

Canada and Mexico are an exception to this rule. Drawbacks do not apply when exporting to Canada or Mexico if the imported good was transformed into another good in the U.S.

The system for receiving duty drawbacks is fairly strict in order to prevent fraud. Prior to exporting, the exporter must file a drawback proposal to the regional commission of customs. Additionally, exports must maintain significant documentation about the importation of the original goods.

For more information, or for any other help with your international expansion efforts, please contact the WTC Utah Trade Services Team at exportassistance@wtcutah.com.







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