Getting Your Product to Market China, South Korea, Taiwan

1. Getting Your Product to Market China, South Korea, Taiwan FedEx Services Getting Your Product to Market

2. Getting Your Product to Market • Export preparation • Customs clearance • Transportation Getting Your Product to Market

3. Export preparation Getting Your Product to Market

4. Export licenses • Export Administration Regulations (EAR) https://bxa.ntis.gov/ • Export Control Classification Number (ECCN) http://www.bis.doc.gov/licensing/do_i_needaneccn.html • Commerce Control List (CCL) http://www.bis.doc.gov/licensing/exportingbasics.htm • Required Licenses • Origin • Destination Getting Your Product to Market

5. Product buyers • Screening • Who do you intend to sell your products to? • Do they have a good credit rating? • Will you be paid for the merchandise you sell to them? • What will they do with your product upon purchase? • Denied Parties Lists • Companies known for illegal activity Getting Your Product to Market

6. Trading with the World • World Trade Organization* • Deals with rules of trade between nations • Members: • China – December 2001 • South Korea – January 1995 • Taiwan – January 2002 • Trade Agreements** • Asia Pacific Economic Cooperation (APEC) • ASEAN Initiative *World Trade Organization – www.wto.org; http://fpc.state.gov/documents/organization/23370.pdf** Office of the U.S. Trade Representative - www.ustr.gov Getting Your Product to Market

7. Customs clearance Getting Your Product to Market

8. Customs • Who are they? • They are government employees • What do they do? • Regulate and enforce inspection • Assess and collect revenues, inform of duties and taxes • Arrange for release of goods from carriers which involves presentation of required documentation Getting Your Product to Market

9. Three common problems international shippers encounter:   • Documentation Missing, incorrect or improperly completed documents • Duties and taxes Difficulty estimating duties and taxes • Regulatory Compliance with regulations and laws Getting Your Product to Market

10. Documentation • U.S. required export documentation • Electronic Export Information (EEI)Formerly the Shipper’s Export Declaration (SED) • Export licenses (where applicable) • Carrier of choice documentation • The air waybill or waybill, Bill of Lading • Customs documentation • Commercial Invoice • Regulatory agency documentation • Packaging certifications, ie wood packaging material certification Getting Your Product to Market

11. Duties and taxes • Customs valuation • Harmonized Tariff System • Duty rate Getting Your Product to Market

12. Regulatory • General import restrictions • Import licenses • Packaging Getting Your Product to Market

13. Commodity regulations* • Import prohibitions, some examples: • China: • Weapons, imitations of weapons, ammunition and explosives • Counterfeit money and counterfeit securities • Printed matter, films, photos, computer storage media and other commodities which are harmful to China's politics, economy, culture, and/or ethics • South Korea: • Dehydrepiandrosterone (DHEA) hormone drug • Poisons • Soil • Vietnam • Counterfeit money and counterfeit securities • gambling apparatus, lottery tickets • books, magazines, pictures and other articles, that are obscene and indecent * FedEx® Global Trade Manager Getting Your Product to Market

14. Finding assistance • Customs and regulatory information • U.S. Customs and Border Patrol – Tradehttp://www.customs.ustreas.gov/xp/cgov/trade/ • U.S. Census Bureau http://www.census.gov/foreign-trade/regulations/regs/flipper/index.html • International Trade Information Center http://www.export.gov/exportbasics/ticredirect.asp • Commercial Servicewww.buyusa.gov • Bureau of Industry and Security http://www.bis.doc.gov • USDA Animal and Plant Health Inspection Service http://www.aphis.usda.gov/import_export/plants/plant_exports/wpm/wpm_faqs.shtml • FedEx® Global Trade Manager http:www.fedex.com/gtm/international Getting Your Product to Market

15. Transportation Getting Your Product to Market

16. Transportation choices • Air vs ground vs ocean • Choice factors • Carrier reputation • Speed • Destination • Customer needs • Cost • Shipment visibility • Shipment handling • Origin, destination. What logistics options are available? • Clearance options • Carrier supplied broker vs consignee’s own broker Getting Your Product to Market

17. Transportation considerations • Shipment destination • Clearance location • Special Economic Zones Free Trade Zones Getting Your Product to Market

18. Airports* • Some of the largest cargo airports in the world are in Asia: • No. 2 – Hong Kong, China – Hong Kong International (HKG) • No. 4 – Incheon, South Korea - Incheon (ICN) • No. 5 – Shanghai, China – Pudong (PVD) • No. 36 – Taipei, Taiwan – Chiang Kai-Shek (TPE) • Year over year growth rates: • Hong Kong International – 4.5% • Seoul Incheon – 9.4% • Shanghai, China (Pudong) – 15.5% * Air Cargo World, July 2008 Getting Your Product to Market

19. Seaports* • Some of the largest seaports in the world are in Asia: • No. 1 – Shanghai, China • No. 2 – Ningbo-Zhoushan, China • No. 8 – Hong Kong, China • No. 9 – Busan (Pusan), South Korea • No. 18 – Kaohsiung, Taiwan • No. 20 – Inchon, South Korea • Year over year growth rates 2006 vs 2005: • Shanghai, China – 21% • Busan, South Korea – 6% • Incheon, South Korea – 5% * www.geohive.com Getting Your Product to Market

20. Country specifics Getting Your Product to Market

21. China • Clearance • Regulations • Transportation Getting Your Product to Market

22. China • Busiest Cargo Airports • Shanghai (PVG) • Beijing (PEK) • Guangzhou (CAN) • Shenzhen (SZX) • Busiest Seaports • Shanghai • Shenzhen • Qingdao • Ningbo • Guangzhou Source: Air Cargo World; Dictionary of International Trade www.cia.org Getting Your Product to Market

23. South Korea • Clearance • Regulations • Transportation Getting Your Product to Market

24. South Korea • Airports • Incheon (ICN) • Gimpo (GMP) • Kimhae (PUS) • Seaports • Busan (Pusan) - Incheon • Masan - Mokpo • Pohang - Tonghae • Ulsan - Yosu Source: Air Cargo World; Dictionary of International Trade www.cia.org Getting Your Product to Market

25. Taiwan • Clearance • Regulations • Transportation Getting Your Product to Market

26. Taiwan • Airports • Kaohsiung City (KHH) • Taichung (RMQ) • Taipei (TSA) • Taoyuan (TPE) • Seaports • Hualien • Kaohsiung • Keelung • Taichung Source: Wikipedia, Taiwan Transportation www.cia.org Getting Your Product to Market

27. Product in market • Export preparation • Customs clearance • Transportation Getting Your Product to Market

28. Questions? Getting Your Product to Market