World Tradewinds
October - November 2004 - Issue N. 125
A Publication of the Monterey Bay International Trade Association (MBITA)
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MBITA CORPORATE
SPONSORS:
MBITA PARTNERS & AFFILIATES:
UPCOMING
EVENTS:
For more details on MBITA events, go to www.mbita.org/events/home.php President Vice President Members: Dr. Victor Cordell Marcelo Siero Jim Faith Staff: Lidia Thompson
725 Front St. Ste 104 If you would like to have an article published on this
newsletter please contact the editor by email.
This newsletter has been created by MBITA's editor MBITA Members and Corporate Sponsors' Newsletter
Links CalTrade Report |
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MBITA's UPDATE
Please go to MBITA
newsletter archives to see MBITA Members profiles and visit MBITA's
Export Promotion Services.
President tlivoti@mbita.org
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Port security is a top priority for the U.S. Department of Homeland Security and the task is huge. Some three-quarters of U.S. merchandise trade is shipped through the nation's seaports. In the three years following the 9/11 terrorist attacks, the United States has taken the lead in tightening port security through three important initiatives: 1) Customs Trade Partnership Against Terrorism (C-TPAT) is a joint government-business initiative aimed at building "cooperative relationships that strengthen overall supply chain and border security". Essentially, it is a non-contractual voluntary agreement whereby applicants complete the C-TPAT Supply Chain Security Questionnaire and sign a C-TPAT Agreement to Voluntary Participate. The program requires participants to encourage their business partners to incorporate security recommendations/guidelines along the entire supply chain. Participants in the program benefit by receiving preferred customs treatment i.e. accelerated customs clearance. The relationship is based on U.S. Customs gaining familiarity with the importer or shipper which in turn leads to a lower risk score. The system is subject to periodic verifications and either party can withdraw from the relationship by simple notification. By May 2003, some 3,000 companies had signed up, including 2,119 importers, 20 U.S. port authorities/terminal operators, 410 carriers and 806 brokers/freight forwarders.
a.)
establishing security criteria to identify high risk containers; Implementation of CSI requires bilateral international agreements with the world's major ports. It involves the assignment of U.S. customs personnel to foreign ports to inspect cargos being loaded on containers destined for U.S. ports. The goal is to improve security without slowing down legitimate trade. The program, based on reciprocity, does not cover the costs of inspection equipment in the foreign port. At present, some 30 mega-ports worldwide are participating in the program. 3)
"The 24 Hour Advance Vessel Manifest Rule" is perhaps
the most burdensome and controversial initiative launched to date
by the U.S. Government. It aims at information collection and is closely
associated with the CSI program. The goal of the "24 hour rule"
is to identify prior to loading those containers which are thought
to be high risk. The rule was strengthened considerably under the
U.S. Trade Act (2002) which imposes sanctions and penalties
on shippers who fail to comply. As amended, the act requires the shipping
community to provide advanced electronic information for cargo. Prior
to 2002, only carriers participating in the vessel Automated Manifest
System (AMS) were required to provide information electronically.
In
conclusion, new U.S. security regulations impose significant compliance
costs on the international shipping community. These costs relate
to fixed costs of new equipment and technologies being deployed to
screen shipments plus administrative costs related to the extensive
new reporting requirements for U.S. customs. Contact Donald
Masters , Ph.D.
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MBITA New Member: |
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Based
in Scotts Valley, CA, Avenue Two
provides international business consulting, import/export services and
high-tech marketing to companies in a variety of industries. Focusing
primarily on marketing and partnering, trade and distribution with Asia
and North America, Avenue Two has been successful in bringing manufacturers,
wholesalers and retailers together to successfully expand their business
prospects.
Avenue Two was founded
by Rebecca Cavagnari with the vision of expanding business opportunities
on both sides of the Pacific Ocean. With over 15 years experience in the
high-tech industry and with a background in international 
business
and international relations, Ms. Cavagnari struck out on her own to fill
a niche in the international trade arena. With a working knowledge of
Chinese, Portuguese and Turkish languages she has had the opportunity
to work and travel in most areas of the globe.
Avenue Two provides consulting services designed to assist companies with the expansion of their international business endeavors, including but not limited to trade, manufacturing and distribution partnerships.
Recent consulting projects have included:
Rebecca
Cavagnari is also an adjunct professor for UCSC,
SJSU and the Monterey
Institute of International Studies where she teaches and advises students
on international projects, entrepreneurial training, business planning
and market research. She has been working with MBITA for many years and
is the acting Sales & Marketing Director for
TradePort, the premier online resource for comprehensive information
and links to global trade assistance centers throughout California. Ms.
Cavagnari holds an MBA from the Monterey Institute of International Studies
and a BA in Global Studies from World College West.
Ms.
Cavagnari is currently planning a Trade Mission to China in the October/November
timeframe. Participants will attend the Canton Trade Fair and meet target
companies and government officials for their industry sectors. Additional
details can be found at: http://www.avenuetwo.com/pr01412.htm.
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Contact: Rebecca Cavagnari |
Based in Santa Cruz,
CA, MBITA Member IP Society is
a donor supported membership organization working to increase public
awareness of, and participation in, the evolution of intellectual property
rights and emerging technologies. IP Society's mission is to provide
outreach from the intellectual property professions to entrepreneurs,
technologists, artists and investors.
The general public has a growing thirst for knowledge concerning the interaction of intellectual property in the realms of private, entrepreneurial, governmental, social and communal activities. The IP Society addresses this thirst and engenders wider popular support for the enforcement of reasonable and beneficial intellectual property rights.
The
IP Society enriches the collaborative process of the evolution of the
scopes, definitions, modalities, and applications of intellectual property
rights by including the public, professionals, academics, corporate
leaders, intellectual property stake holders and thought leaders into
a thoughtful exploration of these rights and their impact on local,
national and global communities.
For more information, contact IP Society's President Patrick Reilly
at 831-332-7127 or Patrick.Reilly@ipsociety.net
Contact
Patrick
Reilly , President
The Intellectual Property Society
Tel. 831-332-7127
Web: www.ipsociety.net
email: Patrick.Reilly@ipsociety.net
TradePort
Announces Trade Finance
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TradePort is pleased to announce TradePort Export Finance Online (TEFO), a trade finance program for small business. TEFO provides consulting services in trade finance and access to pre-export working capital for California's small and mid-sized enterprise companies (SMEs), their buyers, suppliers and partners worldwide.
Large multinational banks are generally thought to be the most experienced in trade finance. Frequently these services are reserved for their major clients and maintain transaction minimums of $1M or more. These banks are less interested in working with SMEs because of smaller deal size and volumes accompanied by greater risk. In fact, small importers and exporters often present a business profile that creates obstacles to financing. Even SMEs with large trade deals are not attractive to larger banks due to risk and credit issues such as loan concentration, debt-earnings ratio restrictions or insufficient collateral.
The
TEFO Program is a managed financial network of banks, lenders and brokers
focused on the SME market. The TEFO/TradePort partnership brings together
the international trade strengths of TradePort, CalTrade
Coalition California's trade promotion community, private sector
banks and lenders, the U.S. Department of Commerce, the U.S.
Export-Import (EXIM) Bank and the Small
Business Administration (SBA) for the benefit of SMEs trade development.
While large companies normally have structures in place to generate, market and expand their businesses, SMEs often need direct, customized assistance in taking their first steps into global markets, or in expanding the number of markets in which they trade. TEFO's mission is to provide access to affordable trade finance and credit, which is considered the key to the growth and health of a company's trade capacity.
TEFO will assist exporters and importers in finding and negotiating better deals on their trade financing. TEFO will provide loan counseling and access to pre-shipment working capital and transaction financing from $10,000 to $10,000,000, as well as Letters of Credit, Factoring, Purchase Order financing, Medium term Foreign Buyer financing, Supplier financing and Forfait financing.
Approximately
40,000 companies exported from California in 2003. Nearly 94 percent
of these companies - accounting for almost 40 percent of the state's
total exports - were SMEs with less than 500 employees. In fact, more
than 85 percent of all California exporters were small firms with less
than 100 workers.
In the past,
SMEs turned to the California Export Finance Office (CEFO) for their
specialized financing needs. CEFO was a state-funded program managed
by the Technology, Trade and Commerce Agency. CEFO helped finance export
sales by providing working capital loan guarantees to financial institutions
on behalf of the SME. CEFO also worked in partnership with the SBA and
the EXIM Bank to co-guarantee loans used to finance the purchase of
materials, services and labor to fulfill an export sales order or contract.
Since its inception in 1985, CEFO helped facilitate $1,792,990,347 in
export sales to California's economy, issuing 1021 bank guarantees totaling
$304,481,568.
However, on January 1st, 2004 all of California's international trade and investment programs, including CEFO, were disbanded by the Legislature as part of cost saving measures enacted in the 2003-04 State budget Act. Due to the continuing budget crisis, returning to a state-run model of the past is no longer a viable option.
Today,
TEFO and its partners seek to fill the void left by the closing of CEFO.
TEFO is taking the leadership role in developing a public-private partnership
and collaborative effort to assist SMEs by mobilizing private sector
capital for their trade finance needs.
Importers and exporters can use the TEFO website to research their trade finance options, with additional tutorials provided on the TradePort site. Users can submit their contact information and financial requirements via an online form. TEFO staff will review the information contact the borrower for follow-up, qualification and discuss various options. More and more of this process will be automated over time and as funding becomes available. Ultimately, with private sector partners, TEFO will provide a seamless, end-to-end solution for the SMEs' financial supply chain.
The
TEFO Pre-export Working Capital Program is based on loans against Documentary
Letters of Credit for export transactions only. Under this unique program,
Pre-export working capital is provided to the beneficiaries of an L/C
or the beneficiary's suppliers or vendors. This financing is transactional
in nature without traditional collateral requirements.
TEFO will arrange credit for:
Credits arranged
by TEFO may be used to finance the purchase of materials, services and
labor to fulfill export sales orders and contracts. Qualified California
exporters may receive loans to extend post-shipment payment terms to
creditworthy foreign buyers.
TEFO's loan counseling is provided free of charge. Neither the service
provider nor the lender will increase their respective fees to cover
these costs. Since there are no additional costs, it may be advantageous
to check with TEFO and see if we might provide a better solution than
you may have found on your own.
TEFO's
loan counseling is provided free of charge. Neither the service provider
nor the lender will increase their respective fees to cover these costs.
Since there are no additional costs, it's advantageous to check with
TEFO and see if we might provide a better solution than you may have
found on your own.
TradePort is owned by the Bay Area Economic Forum and the Los Angeles Area Chamber of Commerce and managed by the Monterey Bay International Trade Association (MBITA)
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Contact: Jim Faith |
2)
Container Security Initiative (CSI) focuses on U.S. inbound shipping
containers, of which 90 percent originate in thirty countries. The
CSI is a four part program which includes:
MBITA
would like to introduce its new member Meza & Associates. The President
of the company, Mr. Bart Meza migrated from Peru to the USA in 1955 and
has been a resident in Pacific Grove since 1958. He worked in the construction
business for ten years and became a building contractor in 1967.
Meza
& Associates is starting to do business with Peru by exporting sawmills
and furniture-making machinery and by importing hardwoods to the construction
business in the U.S. The fact that Peru has just started to implement
a reforestation project for wood harvesting insures a continuous supply
of hardwoods. 
