September 14, 2017      wtcutah.com   Facebook Twitter   LinkedIn   Instagram

Helping Utah Companies Think, Act and Succeed Globally

CEO Derek Miller
@DerekMillerUtah

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

In early September I joined Gov. Gary R. Herbert and a delegation of 20 Utah companies on an important trade mission to Singapore and Vietnam – two key gateway regions for Utah companies interested in doing business in Asia.

Singapore and Vietnam have growing middle classes and offer an ease of doing business that makes them prime markets for doing business in Asia. In fact, the World Bank ranks Singapore second in the world for ease of doing business. Vietnam is an attractive location for Utah companies to do business because of its strong GDP growth, large population and political stability.

Many Utah companies already do business in Singapore and Vietnam. For example, during the trade mission the Utah delegation visited with Rio Tinto representatives in Singapore and stopped by Nu Skin's Vietnam office.

Thanks to a large overlap in targeted industries in Utah and these countries, the opportunities for collaboration were plentiful and the trade mission provided exceptional opportunities for Utah leaders to build connections with potential clients and partners.

Happy exporting!

Going Global: Ogden to Host Inbound European Outdoor Recreation Industry Trade Mission

The City of Ogden, in partnership with EU4SportsClusters Alliance, is hosting European businesses in outdoor sports, cycling, skiing and tourism at an inbound trade mission, Sept. 17-20.

The purpose of the trade mission is to create opportunities for business expansion, collaborate on product development and market growth, and to foster trade relations. Outdoor companies and trade business resources can register to attend the mission and schedule business meetings by clicking here.

The European Commission created the EU4SportsClusters to help develop new business and international opportunities. The alliance is made up of five European partners: INDESCAT from Catalonia, Spain; Sports & Technology, The Netherlands; European Platform for Sports Innovation, Cluster Montagne, Auvergne-Rhône-Alpes, France; and Flanders' Bike Valley, Belgium.

Bert Celis with EU4SportsClusters Alliance, said the opportunity to come to Ogden is unique in the way that the area has everything that the EU4SportsClusters Alliance is looking for – the support, the geography and the sports facilities for cycling, skiing and outdoor recreation.

"This trade mission allows companies to explore the possibilities of this promising market, and go into dialogue with established US companies and business experts of all kinds," Celis added.

Ogden Mayor Mike Caldwell noted that hosting this trade mission will connect Ogden with outdoor industry partners and discover synergies for business growth.

"We want to open doors to global outdoor brands and support their efforts as they look to Ogden's mountain-to-metro community as their partner for U.S. market expansion," he said.

Trade mission attendees will have opportunities to engage in business meetings with Ogden area outdoor companies and tour Utah ski resorts. Attendees will also engage with the Ogden Business Exchange – a lifestyle-themed business park for cycling and outdoor companies – and Ogden innovation resources like White Clouds's 3D printing, Darko Technologies' wind tunnel testing, Weber State University's Concept Center and the Ogden-Weber Technical College Composites Center.

Together, Ogden City and the State of Utah have identified outdoor products as a target economic cluster. The outdoor recreation industry in Ogden contributes to the region's manufacturing strengths, well-qualified labor force, business opportunities and creates a robust supply chain network. Meanwhile, the Outdoor Industry Association credits Utah's outdoor recreation industry for generating $12.3 billion annually with $737 million collected in state and local tax revenues.

For additional information, please contact Ogden City Business Development Project Coordinator Sara Meess, sarameess@ogdencity.com; 801-629-8974.

Register for the Utah Global Forum

Register now for the Utah Global Forum, an event that facilitates dialogue on how businesses can expand beyond local boundaries and develop an import and export strategy to expand into the global marketplace. The event is hosted by Gov. Gary Herbert and takes place Oct. 17 from 7:30 a.m. to 2 p.m. at the Grand America Hotel in Salt Lake City.

Focusing on "Prosperity Through Diversity," the forum offers an incredible breadth of content and brings experts from across multiple industries, all with a single objective: move Utah businesses to the global business stage and meet the challenges of today's business environment.

We are excited to have CNN commentator Ana Navarro as our keynote speaker. She will go behind the headlines to give attendees a look at the current global business climate. Other major speakers include Javier Palomarez, president of the U.S. Hispanic Chamber of Commerce, and Governor Gary R. Herbert.

Click here to register or for more information.

Exporter training? Still a few places available in the fall 2017 Global Business Management Course

The Salt Lake Community College Global Business Center is accepting registrations for the fall 2017 Executive Certificate of Global Business Management course, which begins Sept. 27 and ends Dec. 6, 2017. Classes are held Wednesday evenings from 6-9 p.m.

Course instructors are professional business practitioners and the text is "The Global Entrepreneur, Taking Your Business International," by James F. Foley. The hands-on working text is designed for exporters. A 40 percent discount on the $995 cost is available using the State of Utah "Custom Fit" training program. For-profit companies who sponsor the tuition for their employees are eligible for the discount. Click on this link for the course flyer.

Registration deadline is Sept. 21, 2017. For more information contact Stan Rees, 801-957-5336 or stan.rees@slcc.edu.

Toolbox: Learn the Lingo – The Codes of International Business

Earlier this year, 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 third tip, "Learn the Lingo," stressed the importance of learning the terminology of international business. The aim of this article is to simply and concisely explain the international business language of harmonized codes.

Did you know more than 200 countries in the world follow a standard of coding? Did you know every product has a specific code assigned to it? Keep reading to learn how this coding works and why it is important to you.

Harmonized Codes
The Harmonized Commodity Description and Coding System, more commonly known as Harmonized Codes or HS Codes, is the international standard of product classification. These codes clarify to people (especially foreign governments) exactly what a product is. Every product of yours will fit under an HS code classification.

Why do Harmonized Codes matter to me?

Taxes. How you classify your product will determine the types of taxes that will be charged at customs. A slight change in the classification of your product can change the customs tax from 5 percent to 15 percent.

Penalties. If you have misclassified your product, a customs office might not allow your product through, or worse, detain it until you have paid penalty fees for misclassification.

Trade Data. While it might be inconvenient to figure out the classification of your product, having the codes can help you access useful trade data. For example, by knowing the HS classification of your product, World Trade Center Utah can access trade databases and see where products like yours are being purchased.

The Format of Harmonized Codes
What does an HS code look like? Each HS code consists of a 10-digit number. For example, below is the HS Code for grated cheese with a breakdown of what the numbers represent:

HS 0406.20.0000
0404060406.20
ChapterHeadingSubheading
Dairy Produce; Birds' Eggs; Natural Honey; Edible Products of Animal Origin, Not Elsewhere Specified or IncludedCheese and curdGrated or powdered cheese, of all kinds

What do the numbers mean? Every two digits in an HS code represent a specific product category, with each additional two-digit section representing a more detailed product sub-section. For example, in regards to grated cheese, here is the breakdown of how each two-digit section further specifies what the product is:

Does an HS code mean the same thing in every country? Kind of. The first six digits are universal and standardized. So, for grated cheese, all countries would use at least the first six digits 0406.20. However, the last four digits are specific to each country, allowing each country to further specify a product if they would like.

0406.20.0000
Standard InternationallyCountry Specific

As an example of how the last four digits of an HS code are used, a country might want further specification of a grated cheese (to clarify the specific type of cheese, the process of preparing the cheese, etc.). The country might want this further classification of the grated cheese to prevent the importing of a specific type of grated cheese that they domestically produce and want to protect. So, while grated parmesan cheese might be classified in the US as HS 0406.20.0000 with all other grated cheeses, it might be classified in another country as HS 0406.20.5060, with the last four digits (0506) specifying that it is parmesan. Again, it is important to get the correct ten digit code when you export so that going through customs is as easy as possible.

US.-specific HS Coding
The HS codes that are specific to the United States are referred to as the Schedule B numbers (for export) or Harmonized Tariff Schedule of the United States (for import). These coding schedules specify how the U.S. classifies those last four digits for each imported/exported product. Because there are different regulations depending on whether you export or import, there are the two different coding schedules.

How do I find the HS classification for my product?
The best way to classify your product is to contact the customs offices that you will be exporting out of and to. From these offices, you can get a binding document declaring the classification of your product before you ship it to ensure there will be as few headaches at customs as possible.

To lookup your product's HS codes specific to the United States with your Schedule B number, click here. If you click on the "Search" option, it will take you through a guided process to find out what your product is classified as.

For importing products, visit usitc.gov to figure out your HTSUS codes.

Remember that looking on the website is no guarantee of what the code actually is. It is wise to contact a customs office and talk to your local Export Assistance Center, run by the United States Commercial Services.

Other Codes
Aside from the HS Codes, Schedule B Codes and HTSUS Codes, there is one other significant classification system that will be useful in your international business pursuits. North American Industry Classification System, or NAICS, describes the type of activity a business is engaged in through a six digit code. This is in contrast to the HS, Schedule B and HTSUS codes that describe a product. NAICS codes can be obtained from the U.S. Census Bureau website.

To get further help understanding the codes of international trade, or to receive any of WTC Utah's other free services, please email WTC Utah's trade services team at exportassistance@wtcutah.com.







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