November 4, 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

Among the many highlights of our third annual Utah Global Forum, which took place last week at the Grand America Hotel in Salt Lake City, was the announcement by Gov. Gary R. Herbert regarding the formation of an exploratory committee to drive the development of an inland port in Utah.

An audience of more than 400 business and community leaders were on hand to hear the announcement and take part in the forum, which highlights Utah's ever-growing global presence. In his remarks, Gov. Herbert noted that Utah remains committed to promoting international trade, despite the anti-trade rhetoric we often hear at the national level. He attributed the state's success in part to the unique collaboration and partnerships we share in the Beehive State.

Regarding the inland port, a study by the Kem C. Gardner Policy Institute has confirmed that Utah has the potential to support an inland port for several reasons: Salt Lake City's geographic location, Utah's robust labor market and infrastructure projects (such as the airport expansion). Establishing an inland port here would support small businesses, manufacturing and economic growth statewide.

It's a fact that trade opens our landlocked state to millions of new customers and opportunities that would not be available in a closed economy. I believe that foreign trade is the key to economic prosperity and harmonious relationships worldwide.

We hope you will visit UtahGlobalForum.com for detailed information and video recordings from this year's event, plus updates for the 2017 Utah Global Forum.

Happy exporting!

Going Global: From Belarus to Utah

Utah's status as a global business destination received the attention of the Belarusian Telegraph Agency last week, as the news agency described a recent working visit to Utah by Pavel Shidlovsky, Charge d'Affaires of Belarus to the United States.

The news agency said Shidlovsky's visit to Salt Lake City was aimed at establishing contacts with Utah state officials, business associations and leading universities to boost trade and economic and humanitarian cooperation.

While in Utah Shidlovsky met with were Dennis Neuenschwander, the Honorary Consul of Belarus to Utah, and Franz Kolb, director of diplomacy and protocol in the Governor's Office of Economic Development (GOED). Discussions between the trio centered on prospects for the development of cooperation between Belarus and Utah and opportunities for establishing contacts between the business circles.

One outcome the visit was a commitment for a delegation of Belarusian business leaders to visit Utah and their planned participation in several future international and regional trade shows to be held in the state.

Shidlovsky also discussed opportunities for cooperation between Utah and Belarus in the high technology and information technology sectors during in a meeting with two representatives from the Utah Technology Council (UTC): Jonathan Jackson, of Overstock.com, and John Huntsman, UTC director of member services.

The news agency said promising areas for science and technology cooperation between Belarusian and U.S. universities and research institutions led to visits with Shidlovsky and BYU President Kevin Worthen, and with Baldomero Lago, assistant vice president at Utah Valley University. At BYU, Shidlovsky gave a lecture "Belarus at the crossroads of Europe: promoting partnerships, security, and stability" to students and faculty at the school. He also presented Belarus' foreign policy priorities, spoke about the geopolitical location of the country, and Belarus' relations with the state of Utah.

Seminar: Doing Business in Australia

Join World Trade Center Utah and the U.S. Foreign Commercial Service on Nov. 8 to learn the important details about doing business "down under." The seminar runs from 9:30 - 10:30 a.m. at WTC Utah, 60 East South Temple, suite 300 in Salt Lake City.

Speaking at the event will be Duncan Archibald, a channel and business development manager with the U.S. Department of Commerce in Sydney, Australia. With 20 years of experience helping U.S. companies export, Archibald has an in-depth understanding of what it takes to successfully do business in Australia.

He will discuss the ins and outs of doing business in Australia, highlight the Australian economic environment and answer specific questions you may have about exporting. The seminar is free, but seating is limited so register here today.

SBA Awards Utah District Office $365,700 to Support Small Business Trade Growth

The U.S. Small Business Administration (SBSA) has awarded $365,700 to the SBA Utah District Office through the competitive State Trade Expansion Program (STEP) to help small Utah businesses acquire the tools, resources and relationships they need to take their products and services global.

"Exporting is an important growth opportunity for our small businesses and entrepreneurs," said Stan Nakano, SBA's Utah District Director, in announcing the award.

According to the SBA, two-thirds of the world's purchasing power can now be found outside the United States, but only about one percent of America's 28 million small businesses are reaching customers beyond our borders. Markets are seemingly wide-open for businesses that are ready to expand their reach into new and increasingly borderless global markets.

STEP awards were created to advance key priorities identified in the President's National Export Initiative, namely to expand the base of small businesses that become exporters and to make the exporting process as easy as possible for small businesses.

The SBA STEP awards are granted to U.S. states and territories to support programs that help small businesses expand their export-related activities, such as participation in foreign trade missions, foreign market sales trips, subscription services for access to international markets, the design of international marketing campaigns, export trade show exhibits, export training workshops and more.

STEP funds allow small businesses the opportunity to meet foreign buyers face-to-face at trade shows or on trade missions, and complement SBA's export loan guaranty programs, which can finance the working capital needed to complete export orders and in turn help finance the expansion of production facilities due to export success. Loans are available for up to $5 million. More information can be obtained from the SBA's Export Finance Mangers located in 21 U.S. Export Assistance Centers across the country.

Toolbox: Tariffs and Taxes

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 details extra costs that may be applied to your product when it is shipped internationally. All additional costs to you as a seller will increase the cost of your product to your foreign buyers and may affect your competitiveness in the market.

Tariffs
Tariffs are taxes collected on imports or exports. Tariffs are specifically intended to guard a local economy by discriminating against foreign goods. Additionally, tariffs may not be applied equally to each exporting country, affecting competitiveness. Tariffs can be quite high for this reason. Tariffs are collected at the time of customs clearance in the foreign port. Tariffs will need to be considered both in your international pricing strategy and in your market selection process.

The U.S. does have free trade agreements with 20 counties, which can be found on this page on trade.gov. Countries that have free trade agreements can buy or sell goods amongst each other without tariffs. As an exporter, it is advantageous to sell to these countries to keep your good to these markets because they are more likely to have a competitive advantage in cost to your buyer. Resources for determining your tariff rate outside of free trade agreement counties can be found here. Remember that any figure calculated is only an estimate as tariffs are determined by the foreign buyer's Customs agency.

Taxes
In addition to tariffs, national sales and local taxes will often be charged on goods. National taxes are commonly referred to as value-added taxes or national consumption taxes. These taxes are applied generally to consumer goods at a standard rate, unlike tariffs, which target specific goods. Importers are responsible for paying these taxes once goods are cleared through customs. As costs increase for your foreign buyer, they are less likely to buy your goods and choose local products or products produced in a country with lower taxes.

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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