Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Ricardo Moreira to discuss Total Cost of Ownership or Optimization (TCO). Many companies already have implemented a series of initiatives to reduce costs, which has made it more difficult to find ways to bring costs down even further.  In this episode we explore ways to find “hidden” supply chain costs that can add to the company’s bottom line.

First, Kim and Ricardo look at what factors contribute to cost. This encompasses everything indirectly related to buying the materials or product, activities such as; training your workers to use the new machine, testing to accept a new material, and more. It can also include costs related to not taking actions, items such as; poor quality materials or machines that are defective, down time in the factory, or scrap rates.  

Ricardo quotes Richard Drucker, "You can't manage what you don't measure,” underlining one big issue for the procurement team. How can procurement measure expenses in other departments of the company?  Thankfully, Ricardo shares some methods to convinceing colleagues to share information so that an analysis can be done. 

Lastly, Kim and Ricardo discuss process-based costing, also known as ABC or Activity Based Costing. Now known as Quantum Costing, it’s a method to capture the cost of procedures and activities in the supply chain and related areas of the business.  

How does this fit into TCO? 

Learn all this and more in this information-packed episode!

Things you’ll learn 

• The difficulties of continuing to reduce costs and ways to identify hidden or indirect costs that can save organizations money
• Major issues when gathering data from colleagues and methods for accomplishing your data collection. 
• Quantum Costing and the importance of not only gathering data, but analyzing it.

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Scott Scofield to discuss the keys to success when importing into Japan. Kim and Scott break down the ways in which Japanese import compliance is opaque, not digitized, and how it relies heavily on the import partner. 

Why are import partners so critical to success?  They hold many of the rights and responsibilities, so changing partners later on can result in problems. Selling into Japan can be complex for companies new to the process. There are multiple steps for import compliance, including selecting the importer of record, meeting product and labeling standards, as well as applying and being approved for other regulatory compliance (medical, food, electronics, etc). 

The import application itself is complex, almost like a patent application.  Filling it out requires the company to disclose information about the product, the materials, and how it’s made. In addition to the import application the product may need to be registered with various regulatory agencies, such as the PSE and PMDA.  These agencies provide ambiguous instructions, so someone with "tribal knowledge" is often needed to fully understand the process. 

Finally, Kim and Scott discuss best practices for companies selling into Japan.  It’s not all compliance!  .

Learn all this and more in this information-packed episode!

Things you’ll learn 

• An inside look at how to ace the lengthy process to apply as an importer 
• The regulatory bodies and the requirements to import into Japan
• How your local partner that manages imports is a key decision, and why once you choose a company it will be difficult to change.

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Pradeep Sacitharan to discuss Using Data in E-Commerce for Product Optimization. He trained as a scientist at University of Oxford and at Harvard, and is founder and CEO of Donsfield, a company focused on International E-Commerce Development. 

First, Kim and Pradeep dive into one of the major ways to succeed in E-Commerce, and that’s by making sure you're focusing the company's time and energy on the products that actually sell in your business and eliminating the products that don't. A good starting point is to analyze your primary data by looking at sales trends, analyzing profitability, and capturing hidden costs in that analysis. 

Next, Pradeep dives into third party data on sales, including the different methods of collecting publicly available data including how to analyze that information to optimize product offerings. If you collect and analyze the right data, it will actually tell you what the consumer is looking for, even if the consumer is a bit confused. How you ask?  Listen to the podcast to find out!  Overall it's critical to look at product data across markets, brands, customer demographics, and more segments to help you identify opportunities.  

Learning to use unit economics can help optimize your ad spend. We know cost per click on Google, Meta, and Amazon advertising is increasing. By looking at your unit economics, you can see what your margins are and adapt your marketing plans according to the data. 

Finally, Pradeep covers the importance of analyzing your competition. Understanding what makes you different or what your differentiation factor is can be the key to longevity.  Unique selling points are easily copied - what is your overall benefit to the customer that drives them to you?  It may be a great mix of products - which is why some of the greatest brands on earth keep bringing new products out. It’s figuring out which products, in which international markets, that is the key to continued success!

Learn all this and more in this information-packed episode!

Things you’ll learn 

• How business can better utilize data to optimize product mix in international E-Commerce.
• How unit economics can help businesses make good use of their data to measure true profitability.
• The importance of analyzing the competition.- and not just their top sellers - to better understand the market and your own business.

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Bob Eckman to discuss tangible concrete steps companies should be taking to protect their data in a global business environment. This episode is full of actionable information to help your company assess risk and protect data.  Bob joins us with over 30 years experience in IT and as a leader in Cyber Security innovation. 

To start the podcast off Bob shares that one of the key issues for organizations in managing data risk - and it’s as simple as not recognizing the value of their data. Too often companies don’t have systematic mechanisms for identifying the risk for each category of data (personnel, customer, financial, etc.).  They think of the obvious, but often miss categories of data that can be very damaging to the business. 

Kim asks Bob to share what the major threats facing a company are, and he lists; data being held hostage, ransom attacks, and partners selling data. That last one may be a surprise to many companies as they don’t consider what their SAS partners are doing with the data or how secure their data environment is. . 

Next, he outlines three ways that data is most likely to be compromised — email, shared drive, and ERP system. Bob and Kim talk about the methods used to access data in each of these.  He shares the most effective ways to protect these data types, including encryption and classification.  An area often overlooked by companies is compliance with foreign regulations on personal data, hosting data, and more. 

Finally, Bob and Kim recap the steps listeners can take to protect their data. Some of these include; credentials, training, passwords, blockers, and storage. This episode is full of tools you can start using today to ensure you and your company are adequately protected. 

Learn all this and more in this information-packed episode!

Things you’ll learn 

• The entry points for data thieves (email, shared drives, and ERP systems).
• The four methods to secure data.
• The biggest issues you are not aware of with staff, outside providers, and partners.

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Alejandro Alcalde to discuss the recent impact supply chain disruption, politics, and tariffs have had on trade between Mexico with the US and Canada. Alejandro is a trade compliance professional who is also currently studying for his trade lawyer diploma and consecutively attending the Mexico Trade and Law College in California, Mexico to get a  degree in international business and customs law. 

Americans like to call USMCA the “new NAFTA” because it replaced NAFTA. What has changed?  Companies are keen to understand its impact on compliance for international trade. In this episode we will discuss these changes and other factors over the last few years that are catching companies off guard.

First, Kim and Alejandro discuss Country of Origin or COO and how that has become a major focus for imports from Mexico.  Why? As companies shift production from China to Mexico, and in some cases only do final assembly or packing in Mexico that can impact COO.  The rules of country of origin can be applied differently between USMCA and USTR regulations.  In some situations based on value and in others based on substantial transformation - this is critical to understand!  

Besides the COO issue Alejandro also talks about how the current president changed the tax system and moved it under the military. Customs is now more robust, and the impact felt by importers & exporters has increased. The Mexican government wanted to exert more control to reduce tax evasion, smuggling, etc. 

Finally, Kim and Alejandro outline what steps a company can take to make sure they are compliant so that their shipments cross the border with ease. Best practices include; looking at the product’s BOM, the COO of raw materials / components, confirming the HTS code, and doing all this planning in advance of production.  

Learn all this and more in this information-packed episode!

Things you’ll learn 

• Why defining the country of origin is important and how this is applied under different regulations / agencies like the USTR and USMCA. 
• What are the changes with the implementation of USMCA and under the current President of Mexico - and how are they felt in cross border trade.
• Best practices to make sure your company understands and can comply with regulations so that shipments cross the border with ease. 

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Andrew Jeanblanc to discuss credit risk insurance. Andrew has spent the last eight years in trade finance and international credit risk insurance. Currently he’s the business development manager broker for a Risk Insurance company which specializes in private trade risk and credit risk insurance. He’s also worked in many business development and project management roles, as well as spent some time in China.

First, Kim and Andrew dive into what credit risk is and why companies may need outside help in order to mitigate it. Credit risk insurance helps companies minimize risk undertaken when they export and sell overseas. Primary risks companies may encounter are non-payment by foreign companies, foreign war, political violence, cancellation of import license, and more.

Andrew breaks down what the requirements are for EXIM bank to provide credit insurance and how that compares to a private insurer. Ultimately, when determining which policy type to go with, the insurance company will have to determine what exactly they're covering. Companies should expect a deep dive into their business and the transaction. If a company is new to export, that's when Andrew would steer them more towards EXIM (if they qualify).  EXIM makes more sense for companies with newer customer relationships and/or new to international.

Finally, Kim and Andrew list some of the benefits and limitations of EXIM insurance. Companies get 95% indemnity with 5% co-insurance coverage, whereas in private markets you’d usually get 90% indemnity with 10% co-insurance. Companies may not qualify for EXIM if they’re selling products that aren't US made, products that have military use, or are selling to the military, as those are some of other limitations of EXIM insurance. 

Learn all this and more about credit risk insurance in this information-packed episode!

Things you’ll learn 

• Start with EXIM bank if you can due to lower cost and only pay when you use it.  
• Private insurers can be more flexible but they will charge more for the flexibility.  
• You still need a solid sales order with reliable customers and reasonable payment terms for anyone to finance the sale.

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Tony Nogueras, owner of Alliance International, to break down Duty Drawback. Not enough companies take full advantage of this program which allows people to recapture duties on products that were imported - either when they later export the same or similar goods or when there is another triggering event. Tony joins the show to discuss how companies can identify opportunities and maximize recapture.

First, Kim and Tony discuss how tariffs have been an impediment to many companies' profitability when importing from China, and how duty drawback can help recapture some of that expense. These tariffs still have a huge impact on US companies and the cost of goods in the United States. There have also been exclusions and exceptions in place or have expired, which can make navigating section 301 Tariffs particularly difficult.  

Duty Drawback is a US government program where you can reclaim duty paid in certain situations, such as when you export or when goods are deemed obsolete. The regulations in Customs Regulations Chapter 190 specifically allows for the refund of duties, taxes, fees incurred at the time of importation if you have product that's subsequently exported. We can look at this as an important export incentive program. However, there are other factors that might need to be considered, such as foreign trade zones, bonded warehouses, and temporary import bonds that can affect tariff mitigation strategies.

Tony dives into the details of how duty drawback works; the 5 year lookback period, the difference between filing based on direct identification or substitution, and calculating raw materials imported value compared to exported finished goods. Often a claimant can see potential recovery, but aren’t sure how to match an export back to a particular importation. Navigating that process can be very painful.

Lastly, Kim and Tony cover the 2015 program, TFEA, and how it makes it easier for companies to optimize duty drawbacks, what process to follow, and what documentation to keep in order to be successful and limit liability. Under the new substitution rules, there’s less worry about material grades, part numbers, and specifications. They’ve liberalized the substitution matching so that we only have to match the harmonized tariff schedule number at the 8th digit.

Listen now and start exploring strategies to minimize tariffs and maximize Duty Drawback!

KEY TAKEAWAYS:

• Duty Drawback can seem overwhelmingly complicated, but it can also save the company significant money
• The US government TFEA regulations have created more opportunities to file for duty drawback
• It is important to understand the regulations, what procedures to follow, and how to document the basis for filing.

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Hiten Shah, founder and President of MES, an Inc 500 company supplying critical components from Asia, to discuss supply chains shifting to India. With tension between the U.S. and China, many companies are setting up dual sourcing in India. In this podcast episode we explore the latest trends and best practices for how companies can optimize and control multi-region supply chains.  

We discuss the benefits of sourcing from India. One of the largest growth areas is the automotive and component supplier segment. Hiten also summarizes other key industries including textiles, electronics, and software, and the regions currently on the rise in India. One limiting factor is that India is a net importer of raw materials, and so it has to balance its domestic needs versus what it can export.

Other challenges to sourcing in India include poor infrastructure, government bureaucracy, and regionalism.  The business environment in India is one of the issues any foreign national could struggle with, and Hiten recommends having local team members, managers, and leaders to help you navigate the regulatory compliances and paperwork. The slow pace of the regulatory environment in India significantly impacts the speed with which things move. Each region has its own labor pool, but there are pockets where labor conflicts and competition can cause challenges. 

Kim and Hiten discuss the importance of managing teams in India. Like in China, there is a very hierarchical management style where employees defer to their superior. Therefore foreign management often ends up encouraging staff to increase independent thinking. Listen to the podcast to hear more about developing your staff.

They agree that Dual Sourcing can result in challenges when coordinating suppliers between two regions. There are multiple sets of tools, product changes, the challenge of keeping two suppliers busy, packaging differences, and raw material differences. Hiten shares some of his experience on how to manage these multi region supply chains and the importance of gathering all the details as you're developing the product and communicating clearly and quickly between the stakeholders in the supply chain. 

Finally, Hiten and Kim recap the best methods of navigating changes in the an expanding supply chain. These include having a customer focused strategy that determines the sourcing direction makes the decision more clear.  Some components to a good strategy include having a strong MRP system, and planning teams!  Hiten shares many of the key components his company uses to multi-region supply chain success. 

Things you’ll learn 

• India is growing manufacturing industrial centers but companies will need to develop staff skills, raw material sourcing, and work within the pace of business
• Dual Sourcing can drive the need for additional resources to ensure product conformity, optimal product supply, and coordination of efforts worldwide.
• Managing teams in India is similar to China where the culture is hierarchical and the company needs to develop employee soft skills and collaboration.

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Josh Rodman, who is a Senior Associate Attorney with Sandler, Travis & Rosenberg, to discuss the customer risk in Export Compliance as it fits into the interplay between customer, product, and country. NOTE: none of the information here or in the podcast is legal advice and it is provided for informational purposes only. 

We discuss the different organizations listeners need to be aware of for Export Compliance. These organizations include the Department of Commerce, Department of Treasury, The Department of State, and Bureau of Industry and Security. Josh also covers acronyms such as CIFUS, OFAC, SDN, CSL, CCAT, CCL,  ITAR, EAR, and ECCN. When we talk about export controls that apply to products, we're talking about US Department of Commerce and State rules. Treasury and OFAC rules relate to sanctions.

Kim and Josh move into how important it is to know your customer. Josh emphasizes that a company's responsibility does not end at their sale to a distributor. Depending on the country that the distributor is located in and the export control level of the product or products, you may need to do additional digging and research on who the subsequent customers will be after the distributor takes possession of the goods. It can be important to get additional information or written assurances from the distributor as to who the subsequent customers will be.

The OFAC 50% rule applies to company ownership of customers, distributors, end users. The Department of Treasury puts out a list called the Specially Designated Nationals list, among other resources. Doing business with individuals and/or companies on the SDN list typically requires  a license. Josh notes that the Department of Treasury typically doesn’t issue licenses to anyone on the list. Josh explains how the 50% rule works as it applies to SDN companies & individuals.  

Josh discusses resources available to companies looking to improve their export controls. He shares the many free tools available by the Department of Commerce or through the Department of State. Kim talks about the importance of primary and secondary data collection when companies are doing their research.   

When it comes to the “who” part of export compliance, a lot of the work  revolves around gathering information and asking questions. We note how complicated that can be in daily business when sales people may not be as aware of compliance regulations.  Establishing  a compliance team can help ensure gathering information from customers becomes a daily part of business. 

Things you’ll learn 

• The three factors in export control risk don't exist in a vacuum.  The company needs to assess customer, country and product in most situations
• Our guest outlines free resources companies can use to research their export transaction to identify if that sale falls under regulations and learn about what to do if it does
• The importance of training and procedures to reduce the risk of a problematic transaction and for support if there is a government investigation into a prior transaction

Episode Sponsors:  

Acclime China:

https://china.acclime.com/ 

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.

Today on the International Trade Resources Podcast, our host Kim Kirkendall is joined by Elaine Ho and Nicola Licata, managers at Clean Energy Associates. They discuss the ins, outs, and issues with supplier compliance audits. Companies must be compliant with regulations and programs such as ESG, UFLPA (Uyghur Forced Labor Act), CTPAT, and others. The environment of increased regulation is currently impacting the international trade ecosystem, and Elaine and Nicola are here to offer insight into the steps your company can take to be compliant. 

Nicola is a Senior Project Manager - ESG & Traceability in Shanghai, China and works on traceability and chain of custody audits. Elaine is the ESG Project Manager, and is focused on financial analysis. CEA is focused in the solar industry and they go deep into the supply chain to confirm information for their foreign customers.

We begin the episode discussing the two biggest components of supplier audits: remote document review and onsite supplier audits. The geopolitical situation recently has become much more tense between China and the U.S. and that has complicated every company’s ability to perform supplier audits. Customer facing nodes of the supply chain will always be easier, but as you go upstream into the B2B suppliers (second, third, fourth, fifth tier sub-suppliers) it becomes increasingly difficult to obtain documents and schedule onsite audits. 

Nicola talks about some of the Chinese policies that complicate audits - China Anti-Foreign Sanctions Law, PIPL (personal data privacy). Nicola stresses the importance of Supply Chain Mapping, appealing to the supplier’s self interest, and other tips to overcome their reluctance. Elaine and Kim discuss another way to solve this problem with public third party data and gathering indirect information from the supplier. Elaine also highlights how the information she gets from reviewing the supplier's financial information can provide insight into their company and how they can use the Altman Z Score for analysis.

Kim mentions that Supplier Compliance Audits are not only about meeting government regulations, many companies have programs that require the same standards. ESGs (environment, social, and governance), company values are a big movement and both Elaine and Nicola have seen this growing customer expectation. As more companies embed their values into their procurement strategy, suppliers are responding by shifting their own supply chains to meet heightened standards of accountability.  

Finally, Kim, Nicola, and Elaine discuss the services Clean Energy Associates provides, the companies they work with. Listen now for all this and more on the International Trade Resources Podcast!

Things you’ll learn 

• U.S. regulations are increasing requirements for importers to document their supply chain - and Chinese government regulations have made it harder to comply with U.S. regulations
• Recommendations for how companies can gather information on their full supply chain, drilled down to the smallest sub suppliers
• How are Chinese companies adjusting (if they are) to these increased US requirements

Episode Sponsors:  

Acclime China: Corporate Services and full Accounting/CPA/Tax for China.

https://china.acclime.com/ 

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.