Exporting for the first time? Exported before, but things have changed? Need answers, but not sure how or where to get them? This is the book you need. For more than 70 years, A Basic Guide to Exporting has given companies the information they need to establish and grow their business in international markets. Whether you’re new to exporting or just want to learn the latest ideas and techniques, and whether your product is a good or a service, this new 11th Edition—completely rewritten, revised, and updated—will give you the nutsandbolts information you need. Here are just some of the topics we’ll cover: • How to identify markets for your company’s products (Chapters 3 and 6) • How to create an export plan (Chapter 2) • How to finance your export transactions (Chapter 15) • The best methods of handling orders and shipments (Chapters 12 and 13) • Sources of free or lowcost export counseling (Chapter 4) In addition, this book also includes: • Reallife success stories from companies we’ve counseled on exporting • Sample forms and letters • Details on how to get free or lowcost U.S. government export support Turn the page, and let’s begin . .
• Is your company ready to export?
• How will exporting affect your company?
• How do you create an export plan?
This is one of the most frequently asked questions we receive at the U.S network of U.S
Most items exported from the United States to international buyers do not require an export license, with 95% of shipments proceeding without one However, U.S export control laws and regulations still govern these transactions, determining if your product can be sold abroad, specifying eligible destination countries, and identifying authorized buyers Understanding these laws is essential for compliance and successful international trade.
95 percent that don’t require a license doesn’t mean that you can sell it anywhere and to anyone.
Export Administration Regulations and the Bureau of Industry and Security
Most U.S.-sourced items and some internationally-sourced items that are considered dual-use
The Export Administration Regulations (EAR), managed by the Bureau of Industry and Security (BIS), govern the export of items with both commercial and military proliferation applications, as well as certain purely commercial and munitions products For detailed information, the EAR is accessible at bis.doc.gov.
To determine whether your item is subject to the EAR, you will need to refer to the EAR’s Commerce
Check the Control List (CCL) to determine if your item has an Export Control Classification Number (ECCN) Each item listed in the Export Administration Regulations (EAR) is assigned a specific ECCN Identifying the correct ECCN is essential to ensure compliance with export control laws and regulations.
Items classified as EAR99 by the U.S Department of Commerce are generally not listed on the Commerce Control List (CCL), meaning most EAR99 commercial products do not require an export license However, depending on the export destination, end user, or end use, even EAR99 items may necessitate a Bureau of Industry and Security (BIS) export license to ensure compliance with export regulations.
While only a limited number of items under the EAR require export licenses, licensing is mandatory in specific situations related to national security, foreign policy, or regional stability Export licenses are also necessary for items involved in controlling short supply, preventing nuclear nonproliferation, or restricting missile technology, chemical and biological weapons, crime, and terrorism Ensuring compliance with these licensing requirements helps protect U.S interests and maintain global security.
Establishing an Export Management and Compliance Program (EMCP) is essential for ensuring compliance with the EAR and effectively managing export-related decisions and transactions An EMCP enables you to analyze individual pieces of information and decisions, integrating them into a well-organized system that enhances export control compliance.
The BIS website has information on the nine core elements of an effective EMCP
In particular, note the EAR’s mandate for sufficient record keeping.
If you plan to sell a large catalog of items globally, developing a comprehensive compliance plan is essential To ensure adherence to export regulations, the responsible individual should study BIS online videos and publications and attend specialized EAR and export-control seminars Visiting the BIS website or consulting your local U.S Commercial Service office can provide valuable training resources and guidance Additionally, you can contact BIS directly for assistance in developing and reviewing your compliance plan to ensure it meets all regulatory requirements.
An item subject to the EAR will have a specific ECCN or be designated EAR99 When managing your inventory, inquire with suppliers about classification details, create fields in your system for ECCN and export restrictions, and collaborate with suppliers to understand how ECCNs are determined Ultimately, as the exporter, you are responsible for securing any required licenses, especially if exporting to countries with restrictions.
Ensure that export classification and license numbers are clearly listed on export documentation such as the Commercial Invoice and AES filings, with easy access in your inventory system BIS mandates electronic export information filing in AES for certain exports specified in Section 758.1 of the EAR, regardless of value or destination When completing shipping forms, you may need to enter “NLR” (No License Required) for specific EAR shipments, as required by the U.S Postal Service and major freight carriers For detailed information on EAR99, refer to the “ECCN Questions and Answers” section at bis.doc.gov.
Suppliers, consultants, and other third-parties can help you with many routine details However, always remember that you are ultimately responsible for your own compliance.
Implementing a company-wide policy emphasizing the proper classification under the EAR and HTS numbers is essential for compliance Ensure your inventory management system clearly lists ECCN or EAR99 designations, as items lacking these are ineligible for international shipping Additionally, modify your software to automatically flag problematic orders, helping your team maintain adherence to export regulations and streamline the shipping process.
You need to be especially careful with items that are subject to the EAR, whether the items have
ECCNs or are EAR99—you don’t want to inadvertently violate the EAR.
International Traffic in Arms Regulations
The International Traffic in Arms Regulations (ITAR) govern the sale and transfer of defense items and defense services that are essential to the U.S military and intelligence capabilities Manufacturers and exporters of these items must understand ITAR requirements, including the need to register with the U.S Department of State’s Directorate of Defense Trade Controls Compliance with ITAR is crucial to ensure lawful international defense trade and to avoid severe penalties.
(DDTC) Details can be found at pmddtc.state.gov
Start by finding out whether your item for export (hardware, technical data, and/or defense service) is on the U.S Munitions
List (USML), found in Part 121 of the ITAR If it is, then explore the ITAR website for complete information on ITAR licensing.
Exporting controlled items that are listed on the USML without obtaining proper licensing has very serious legal consequences.
Both the U.S Department of the Treasury’s Office of Foreign
BIS administers and enforces economic and trade sanctions against specific foreign countries, companies, and individuals to align with U.S foreign policy and national security objectives The Office of Foreign Assets Control (OFAC) and BIS maintain comprehensive lists of sanctioned persons and entities to ensure compliance and uphold national security.
(natural persons and entities, including corporations) that
U.S Department of Commerce’s Bureau of Industry and Security
Strictly commercial, dual-use, and less sensitive military commodities, software, and technology
Check lists of parties of concern on the BIS website.
Determine whether the item is subject to the EAR (ECCN or EAR99).
Apply for license (if needed). bis.doc.gov export.gov
International Traffic in Arms Regulations (ITAR)
U.S Department of State’s Directorate of Defense Trade Controls
Defense articles and defense services (providing critical military or intelligence capability)
Check if products are on U.S Munitions List (USML).
Determine if a license or other approval is needed pmddtc.state.gov export.gov
Office of Foreign Assets Control (OFAC)
Sanctions are tools used to advance U.S foreign policy and protect national security by targeting foreign countries, terrorists, and international narcotics traffickers They also aim to curb activities related to the proliferation of weapons of mass destruction and address other threats to the U.S economy, foreign policy, and security interests.
All U.S persons, wherever they are located, must comply with OFAC regulations.
OFAC recommends that all exporters implement a comprehensive, risk-based compliance program to adhere to current regulations Exporters should be aware that items subject to export control restrictions are governed by agencies such as treasury.gov/ofac and export.gov, which enforce trade regulations within their jurisdictions Additionally, both agencies impose trade restrictions and embargoes on specific countries, making it essential for exporters to stay informed about these restrictions to ensure legal compliance and avoid penalties.
Every exporter should stay informed about individuals and organizations on the parties of concern lists to ensure compliance with export regulations You can access consolidated screening lists from BIS, OFAC, and the U.S Department of State at 1.usa.gov/1J7UYY2 for comprehensive and up-to-date information.
• Methods and sources of information
This company specializes in English-language software accessible via smartphone downloads, targeting high-demand markets with strong mobile phone penetration Their strategic planning focused on identifying regions where English learning is popular and mobile technology is widely available They also analyzed the feasibility of mobile credit card payments to facilitate easy transactions Additionally, the company conducted demographic research to pinpoint the most probable buyers of their software, while evaluating the varying costs associated with reaching these target audiences.
Some companies choose to delay market research until they have identified potential buyers, but conducting independent market research is essential regardless of this approach A comprehensive market research strategy involves understanding the various types of data available, knowing where to find them, and analyzing what they reveal about optimal resource allocation Later in this guide, we will explore cost-effective methods and venues for connecting with qualified buyers Ultimately, thorough market research lays the foundation for targeted sales efforts and more successful buyer engagement.
Many foreign markets differ greatly from markets in the United States Some differences include:
• Local availability of raw materials or product alternatives
• Varying amounts of purchasing power
Once your company has committed to exporting, the next crucial step is to develop a comprehensive export plan by gathering and analyzing data from reliable sources This approach ensures informed decision-making and strategic planning for successful international growth Utilizing these insights helps your business identify target markets, understand export regulations, and optimize logistics, ultimately boosting export success and competitiveness in global markets.
Creating a comprehensive written plan is essential for effectively growing the export side of your business Customizing key sections of this plan allows you to develop a valuable strategic and operational tool tailored to your specific export goals A well-structured export plan provides clarity, direction, and actionable steps to maximize international market opportunities and drive sustainable growth.
Building an international business requires significant time and dedication, often taking months or even years before seeing a return on investment Developing a detailed, written plan is essential to ensure your company stays on track and completes each step of the process By committing to a structured strategy, you increase the likelihood of achieving your export objectives and turning your international ambitions into successful reality.
To successfully export your product, conducting thorough foreign market research is essential This process helps identify marketing opportunities and challenges abroad, as well as prospective buyers and customers Market research involves various methods to evaluate which international markets offer the best potential for your products The findings from this research enable your business to make informed decisions, optimize export strategies, and increase your chances of international success.
• The largest markets for your product and the fastest-growing markets
Your company can begin exporting without prior market research when receiving unsolicited international orders Reviewing your existing customer list is a useful first step, especially if you operate an e-commerce business with foreign buyers or inquiries Leveraging current and potential foreign customers can serve as valuable indicators for developing an effective export marketing strategy While existing customer insights are helpful, conducting a systematic market search can uncover even more promising international markets for your business growth.
You may research a market by using either primary or secondary data resources
Primary market research involves collecting data directly from foreign markets through interviews, surveys, and interactions with representatives and potential buyers This method offers tailored insights specific to your company's needs and helps answer targeted questions, though it can be time-consuming and costly to conduct independently The U.S Commercial Service can assist by gathering and analyzing primary data on your behalf, saving you travel expenses and effort Typically, this service costs several hundred dollars per market analyzed and also provides support in connecting you with experienced local intermediaries for market entry.
The U.S Commercial Service can help you collect and analyze data We can also help you find additional partners with specific market expertise
Conducting secondary market research involves collecting data from sources like trade statistics for countries or products, which is a cost-effective way to inform your marketing strategy While secondary data is essential for understanding market trends, it has limitations, such as potentially outdated information or data that is too broad to be actionable Relying on recent and specific data ensures more accurate insights, enabling your company to make well-informed decisions and optimize marketing efforts effectively.
Because of the expense of primary market research, most companies rely on secondary data sources These three recommendations will help you obtain useful secondary information:
Stay informed about global events impacting the international marketplace by monitoring political developments and key project announcements For instance, improved diplomatic relations can open new economic channels between countries, creating new opportunities for trade Currency fluctuations also play a crucial role; a decline in the dollar’s value can enhance your product’s competitiveness internationally, while a strong dollar may reduce market attractiveness Keeping an eye on these factors helps businesses adapt strategies and seize emerging market opportunities.
Analyzing trade and economic statistics is essential for understanding market opportunities Trade data, categorized by product and country, offers valuable insights into shipment volumes over specific periods, helping your company track international demand Additionally, demographic and economic indicators—such as population size, per capita income, and industry production levels—serve as critical indicators of market potential, guiding strategic decisions for expanding your company's presence globally.
Seeking expert advice is crucial for successful international trade You can contact professionals at the U.S Department of Commerce and other government agencies for valuable insights Attending industry seminars, workshops, and international trade shows provides opportunities to learn from experienced exporters Hiring an international trade and marketing consultant can offer tailored strategies to expand your global reach Additionally, engaging with successful exporters of similar products, including members of your District Export Council, can provide practical guidance and proven practices for entering new markets.
Councils in your local area. ŦContact trade and industry associations.
Questions Answered by Market Research
• What countries/markets are currently buying products similar to yours?
• How large are your potential markets?
• Who are your competitors, and how large are they?
• What are the required standards, testing, and certifications?
• Do your products (or their labeling or packaging) need to be modified for one or more markets?
• Is your price point appealing within the market?
If not, what can you do to make it more appealing?
• What distribution channels are available?
• What will be your duties, taxes, and other costs or restrictions?
Gathering and evaluating secondary market research may be complex and tedious
However, several publications are available that may simplify the process The following approach to market research refers to the publications and resources that are described later in this chapter.
A Step-by-Step Approach to Market Research
Your company may find the following approach useful It involves screening potential markets, assessing the targeted markets, and drawing conclusions.
Obtain reliable export data by accessing published statistics that detail U.S product exports to various countries, which serve as key indicators of current export destinations These statistics are available through the U.S Census Bureau at census.gov/foreign-trade, providing essential insights for informed export planning.
Identify 5 to 10 large, rapidly expanding markets that align with your product, focusing on trends from the past 3 to 5 years Evaluate whether market growth has been steady year-over-year and if import growth persisted during economic downturns Additionally, assess whether growth resumed alongside economic recovery to pinpoint the most promising markets for expansion.
Explore smaller, rapidly emerging markets that offer prime ground-floor investment opportunities with less competition compared to established markets Look for countries experiencing significantly higher growth rates, such as Burma, which recently opened its economy after years of sanctions, and Morocco, which entered a free trade agreement with the U.S in 2005, as prime examples of promising up-and-coming markets.