March 2, 2018      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

The medals have been handed out, the Olympic Stadium in Pyeongchang is silent and the athletes have gone home. Now it's time to congratulate Team USA and especially the Utah athletes for representing Utah so well. They certainly enhanced our international connections.

In January, the Salt Lake Tribune noted that of the 244 Olympians on Team USA, some 50 athletes have ties to Utah, including alpine skier Ted Ligety, from Park City, Salt Lake City figure skater Nathan Chen and Maame Biney, a short-track speedskater originally from Ghana who moved to Utah from Virginia to live and train.

Here's the Trib's list of the athletes that either hail from or live and train in Utah. KSL.com also published a nice rundown of the athletes with Utah ties.

For most of these athletes, preparing for the Olympic Games is a lifetime endeavor and they represent the best of the best. We congratulate them for their dedication and commitment to the Olympic spirit.

Happy Exporting!

Going Global: The Blueberry Hill

During its Export Acceleration Grant Pitch Competition in January, World Trade Center Utah awarded the second-place $10,000 grant to The Blueberry Hill, a Salt Lake City-based clothing accessory wholesaler "dedicated to making memories" for its customers.

The Pitch Competition and the Utah Export Acceleration Grant were sponsored by JPMorgan Chase & Co. and managed by WTC Utah. Grant funds are used to pay for services or resources that help the recipient company grow globally. The Blueberry Hill products are sold by retailers across the U.S. and the company will use its grant funds to help grow its international presence.

The Blueberry Hill creates handmade children's apparel that inspires and celebrates "everlasting moments." The company's unique products are "made to endure daily life and all of the beautiful messes that come with it." Little ones don't remain little for very long, so each Blueberry Hill product is crafted "with love to help customers capture every moment." The company was founded in 2011 by Jenn Davis after she spent "a few months selling children's hats and clothing at street festivals in Salt Lake City."

As the company notes on its website, Jenn had a knack for making things for herself – a talent she learned while growing up in a family of six children with a mother that made all of their clothing. Hence, "with a passion for creating and a head full of ideas, Jenn began to create her brand. She envisioned unique items with the ability to tell a story and express one's individuality. She wanted her brand to represent the essence of capturing memories and embracing moments that can otherwise be forgotten."

Jenn designed her company's first hats in her living room, while constantly asking her sons to try them on so she could perfect each product. As the company notes, Jenn's "experience in creating and dedication to sharing her passion is what sets The Blueberry Hill apart." The accessories not only feel and look good, but they help trigger those long-lasting memories that only a Blueberry Hill product could achieve.

The company says its "one of a kind" product collection can bring a fresh, fun and playful element to daily life, be that in the U.S. or across the globe. Its products are made to reflect personal style and modern flare for any occasion, including dressing up, photo-ops, everyday shenanigans or those unpredictable cozy moments that occur spontaneously.

To learn more about The Blueberry Hill, visit theblueberryhill.com or call 801-979-3305.

Sign Up Now: Executive Certificate of Global Business Management

Do you need exporter training? Register now for the spring 2018 Executive Certificate of Global Business Management Course. The Salt Lake Community College Global Business Center is accepting registrations for the spring 2018 “Executive Certificate of Global Business Management” course.

This course is offered to business executives, marketing professionals, staff and entrepreneurs who want to increase their exporting knowledge and improve their strategies in global business practices. The instructors are professional business practitioners, and the text is "The Global Entrepreneur, Taking Your Business International," by James F. Foley.

The course is an excellent, hands-on working program for exporters. Classes will be on Wednesday evenings starting March 28 and end on May 30. The course is also available live to distance learning locations throughout Utah by using the Utah interactive UEN audio-video connection. Please register as soon as possible to reserve your place. Click here for a flyer with more information. To register email Stan Rees at stan.rees@slcc.edu or phone him at 801-957-5336.

Upcoming Class: Emerging Leaders

The SBA is collaborating with Weber State University to offer a "mini-MBA" training course to business communities from Bountiful to Logan. The SBA Emerging Leaders Program is a federal training initiative that specifically focuses on executives of businesses poised for growth.

The initiative provides business executives with the organizational framework, resource network and motivational support to build sustainable businesses and promote economic development within their communities. SBA's outreach has resulted in entrepreneurial success that generates new jobs, attracts investment and provides a more sustainable economic base in distressed areas.

Over the course of seven months, program participants are given the opportunity to work with experienced mentors, attend specialized workshops and develop connections with their peers, city leaders and the financial community.

Recruitment for the Emerging Leaders program is going on now and classes are scheduled to begin on March 30. The estimated value of this class is approximately $15,000, however, participation is free. All costs are covered by the SBA and its local partners. For more information email ian.lorenzana@sba.gov or call 801-524-3209. Register here.

2nd Annual Diplomatic Conference on International Trade Relations

Utah Valley University is hosting its 2nd Annual Diplomatic Conference on International Trade Relations, which takes place March 12 at the Utah Valley University Sorensen Center.

The free conference serves as a powerful forum to exchange ideas, network and collaborate with entities in the state of Utah, both economic and academic. It offers breakout sessions and networking opportunities where individual countries are featured, and conference participants will be able to interact directly with trade representatives.

In addition, at the end of the networking session the school will host a VIP luncheon catered by the UVU Culinary Arts. To RSVP for the luncheon please email Lago Baldomero, LAGOBA@uvu.edu, or Veronica Caballero, Veronica.Caballero@uvu.edu.

Market Highlight: United Kingdom

The United Kingdom (estimated 2016 GDP of $2.7 trillion) has the fifth-largest economy in the world, according to the CIA's World Fact book, the second-largest economy in the European Union and is a major international trading power.

While the United Kingdom (UK) is geographically relatively small (about the size of Oregon), it has a population of more than 64 million people.

Highly developed, sophisticated and diversified, the UK market is the largest in Europe and the fifth largest in the world for U.S. goods exports. The UK is also the largest market in the world for U.S. service exports. With few trade barriers, the United Kingdom serves as the entry market into the European Union for more than 43,000 U.S. exporters. U.S. exports to the UK of goods and services combined were estimated to be worth about $121 billion in 2016.

Major categories of U.S. exports include Aerospace Products, Agricultural Products, Biomass, Cyber Security, Medical Equipment, New Build Civil Nuclear, certain consumer goods such as Pet Products, Smart Grids, Sustainable Construction and Travel & Tourism. The United Kingdom remains the number one overseas market for travel to the United States with about 4.6 million UK travelers estimated to have visited the United States in 2016.

The U.S.-UK investment relationship is the largest in the world with cumulative bilateral stock in direct investment valued at more than $1 trillion in 2014. More than two million jobs, approximately one million in each country, have been created over the years to manage and drive this investment. More than 7,500 U.S. firms have a presence in the UK, which is also the top location in Europe for U.S. regional headquarters covering Europe, the Middle East and Africa.

The UK economy grew by 1.8% in 2016, reflecting an uncertainty caused by the Brexit vote and what it will mean for the UK economy. The economy is expected to weaken slightly in 2017 as consumer confidence weakens due to rising inflation.

A major international financial, media and transportation hub, London is also headquarters to the European Bank for Reconstruction and Development (EBRD).

On June 23, 2016, the UK voted to leave the European Union. The government triggered the two-year exit process by invoking Article 50 of the Lisbon Treaty in March 2017. The UK is now negotiating with the EU on the terms of its leaving the EU and once this is agreed, will negotiate its future trading relationship.

A general election was held on June 8, 2017, which resulted in a hung parliament after the Conservative Party failed to secure an overall majority in the House of Commons. This has weakened the government and will potentially hamper its efforts to secure a good deal with the EU. It will likely also make it harder to push through the legislation required to make Brexit happen in UK law. Until March 2019, the UK will remain part of the EU and the single market.

Toolbox: Tip #5 Part 1 – Know the Rules of the Game

World Trade Center Utah's "10 Tips to Help you Think, Act and Succeed Globally" provide a deeper dive into topics that will help as you pursue international business opportunities.

There are regulations and laws you need to be aware of when exporting if you want to be successful. To learn about these regulations and laws, you must first familiarize yourself with the organizations that regulate trade in the U.S. and the countries you're exporting to. These organizations will help you know if the countries you are considering have embargoes or sanctions that might prohibit you from exporting your product.

Once you become familiar with the organizations that regulate trade in your chosen area, it is time to classify your product. This will help you know what type of license(s) you need to obtain from agencies such as the U.S. Department of Commerce and U.S. Department of State.

The Bureau of Industry and Security (BIS) Export Administration Regulations (EAR) division handles classifying products exported from the U.S. The classification numbers are referred to as the Export Control Classification Numbers (ECCN) and they determine if the product requires a license. The classification numbers can be found on the Commerce Control List (CCL).

If your product is not listed on the CCL and falls under the domain of the U.S. Department of Commerce, it is designated as an EAR99. Most commercial products are designated as EAR99 and generally do not require a license to be exported or re-exported. Exceptions apply when exporting to an embargoed or sanctioned country, to a party of concern or in support of a prohibited use. A list of exceptions can be found here.

To comply with U.S. regulations, you'll also need to find your product's Schedule B Classification code, which is a 10-digit numerical code maintained by the Census Bureau. Once the classification has been obtained for the product and transaction, you can determine what necessary license(s) are required and from which state or federal agency.

Only a small percentage of U.S. exports need a transaction license from the U.S. government. Exporters are responsible for knowing what classifications and licenses are needed to export their products and from what agencies.

Below are a few agencies that emit licenses according to the product and its use:

  • Department of Commerce – regulates commercial, military or proliferation applications, referred to as "dual-use" items that involve national security
  • Department of State – administers exports defense articles
  • Nuclear Regulatory Commission (NCR) – handles licensing of nuclear materials or equipment
  • Department of Energy - manages the export of natural gas and electric power
  • Drug Enforcement Administration (DEA) – oversees controlled substances and precursors chemicals
  • Food and Drug Administration (FDA) – responsible for protecting the public's health and ensuring safety
  • Department of Agriculture (USDA):
    • Food Safety and Inspection Service (FSIS) is a guide on exporting meat, poultry and egg products
    • Agricultural Market Service (AMS) deals with transportation options, costs and technical considerations of high-valued or value-added agricultural product
    • The Animal and Plant Health Inspection Service (APHIS) facilitates safe trade, monitors risk materials, regulates trade of plants and helps meet other countries' requirements

Export licenses are issued per individual transaction and are determined by the product, country, end use and end-user. Below are a few resources that can help get you acquainted with U.S. agencies:

Important legal considerations when exporting can be found in the following list:

  • Foreign Corrupt Practices Act (FCPA) prohibits American companies from making corrupt payments to foreign officials for the purpose of obtaining or keeping its business. Department of Justice in coordination with the Securities and Exchange Commission (SEC) enforces the FCPA act
  • Anti-dumping is the act of selling your product at a lower price than is normally charged in its home market, which could result in unfair competition. The measures taken against the practice serve to protect a country's domestic industry
  • Intellectual property (IP), patents, trademarks and copyrights are protected by law to ensure companies receive financial benefit or recognition for the products they create. Follow this link for more information.

As you take the first steps to exporting your product, WTC Utah advises acquiring legal counsel to avoid complications. Below are a few resources you can reference for guidance:

  • World Trade Center Utah – Helps Utah businesses navigate international trade and expand their global presence
  • Export Legal Assistance Network (ELAN) – A nationwide program that offers an initial legal consultation free of charge to companies beginning to export
  • U.S. Department of Commerce, Office of Chief Counsel for International Commerce – Provides legal counsel to International Trade Administration (ITA) and negotiation/enforcement of international agreements. Advises ITA on regulations and works closely with the Department of Justice on litigation
  • U.S. Commercial Service – Provides export counsel to small and mid-sized businesses on a variety of products and services
  • American Bar Association – Promotes international rule of law in more than 40 countries by focusing on human rights, anti-corruption and judicial reform

If you have questions or need assistance as you grow your business internationally, World Trade Center Utah's trade services team is available to help. Visit wtcutah.com for more information. Watch for part two of Tip Five, which will appear in the next issue of our newsletter, to learn more about the rules of the game, specifically documentation.


Upcoming Events
Mar. 6 International Trade Financing Seminar
 
Mar. 8 International Women's Day Celebration
 
Mar. 12 2nd Annual Diplomatic Conference on International Trade Relations
 
Mar. 28-May 30 Executive Certificate of Global Business Management
 
April 9-13 Mexico Trade Mission
 
June 17-20 OutDoor Trade Show
 
July 16-22 Farnborough International Airshow
 
September 2018 Taiwan Trade Mission
 

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