MBITA's Global Trade Law and Tax Event Draws Rave Reviews
MBITA was proud to host the 'Global Trade Law Taxes' conference on October 22 in San Jose in association with Klueger & Stein LLP. The conference featured presentations from some of California's leading international law experts on various topics, including: dealing with U.S. customs, international IP enforcement, international litigation and arbitration, international taxation, structuring cross-border business transactions and many more.
The participants were business owners with significant international trade exposure and had a chance to network with other participants and the speakers, share their experiences and learn a great deal about international trade and law.
The conference received rave reviews from the presenters and participants and MBITA is looking forward to an encore conference in Los Angeles in late Spring to early Summer of 2016. Please stay tuned for future announcements.
- "This was a very informative event, one of the best I've attended on the many legalities of exporting. The attorneys presenting brought a evidence depth of knowledge and experience to the topics. Thanks for a great program".
Jeff Deiss, Regional Export Finance Manager-Northern California, U.S. SBA Office of International Trade.
- "The Global Trade Law and Taxes - Challenges and Solutions' event was arguably one of the most informative and best populated panels I've been to in a while. The event was informative, interactive and productive and I am looking forward to the next one".
Jeff Olson, VPTax.
- "As the owner of a small civil engineering business, sometimes I have to do business with foreign firms here and abroad. The information provided during the Global Trade Law and Taxes conference was invaluable. I wish this information had been available to me back in 1994 when my Company had to work in Taiwan and in Spain. Attending this conference was a great investment of time. MBITA should conduct more similar forums".
MBITA member Jack Ybarra, President/CEO, Transmetrics.
- "The conference was very educational and provided a lot of legal information about customs and taxes that I was not aware of. It also enabled me to develop relationships with the other speakers who I had not known before. This will help me in counseling my clients in the future and allow me to guide them to real experts in those areas"
Billy Robbins, Of Counsel, Novak Druce Connolly Bove + Quigg LLP.
- As a language translation company most of our business involves international trade. MBITA's Global Trade Law event provided valuable insights that help us better understand the challenges our clients face when doing business internationally. The speakers were very knowledgable discussing laws ranging from tax and corporate structure to import/export regulations. All the while blending in first hand experiences and humorous anecdotes making for an excellent day of learning and networking.
Carl Magnuson, VP Business Development, Translation By Design.
Monterey County Business Council (MCBC) Joins the MBITA Membership Program
Founded in 1995, the Monterey County Business Council (MCBC) is a 501(c)(6) corporation primarily comprised of professionals from business, government and education working together on countywide issues. A membership only organization, the MCBC seeks to promote the concept of private-public partnerships by bringing business experience and techniques to the public arena.
For over 20 years, the non-profit corporation has promoted this concept by bringing business experience and techniques to the public arena in order to best promote workforce and economic development. As it ventures into its third decade of work, the MCBC remains at the forefront of promoting and developing regional assets and collaboration in areas such as workforce, transportation, broadband infrastructure, affordable housing, and inventory of assets to better help create and retain jobs and businesses in Monterey County.
The MCBC serves both business and local government by providing collaborative leadership, promoting sustainability and global competiveness of existing and emerging businesses, while reflecting the organization's strong commitment to economic vitality, the environment and quality of life.
MCBC's key objectives remain the following:
- To create greater alignment among the activities of business, government, education, media, health and foundation / community based efforts;
- To build coalitions around key community issues and foster increased public-private partnerships;
- To develop strategies and programs that support the development of jobs and business opportunities, workforce training and development;
- To work to improve the business climate to retain and expand existing businesses and the recruitment of new businesses; and
- To work to integrate workforce services with business needs.
Tommy G's TAGlines
|Tommy's Taglines is a new feature column for the World TradeWinds eZine. Thomas A. Gardiner was a founding member of MBITA in 1987 and one of the leading tourism professionals in California. Please enjoy these tagline headlines on the current trends and milestones in our news rich society.
1 - China's Jack Ma - Alibaba's 2015 promotion 'Singles Day' $ALE$ $14.3-Billion smashed records up 60% from $8 Billion in 2014, per CNBC interview on 11-11-2015. Jack noted that Alibaba's 'active accounts' are greater than all the US population, 374-million users, and that 70% of purchases use SMART phones of which China is the #1 by hefty margin and the largest Global mobile-centric culture in the world with 600+million devices which is a little less than 50% of China's 1.3million people. Read More
2 - 13 Amazing Reasons Why Couples Who Travel Together Stay Together - Next time you consider a business trip, consider having your significant other meet you for an 'extended stay' weekend. Read more.
3 - The 'Oprah Effect' on US Stock Market Investment - 1st reported on CNBC, I was astonished when the next day after the Oprah show, the Weight Watchers stock rose to $14+ from $6+ that's a 100+% increase, thus validating the 'Oprah Effect'. Read more.
4 - U.S. Dollar - 'Lucky' 13 - As Clint Eastwood aka Dirty Harry asserts, "Do you feel lucky today?" The dollar bill has several references to 13. On the back of the dollar there are 13 steps on the pyramid, 13 stars above the eagle's head, 13 war arrows in the eagle's claw, and 13 leaves on the olive branch. The 13 references are from the influence of our U.S. Founding Fathers; George Washington, Ben Franklin, Thomas Jefferson and all the others being Free Mason members. Read more.
5 - Big Mac Index - Wikipedia - The Big Mac Index is published by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. It "seeks to make exchange-rate theory a bit more digestible".. Read more.
6 - Big Mac Index Global Hotel Rate Calculator - Newest destination-trip planning global lodging price tool. Read more.
7 - Starbucks Index - Chart lists the cost of a Starbucks Latte coffee in cities globally, Travelers beware!?! Read more.
8 - Emergency eReady - Have a SMARTphone and worry about communicating with family, friends and business associates during an accident, disaster and/or health emergency. OK, RedCross Emergency App to the rescue. Read more
9 - US Global Inbound Tourism spend on average, $606 million a day into the U.S. economy in September 2015. Read more.
Thomas A. Gardiner is the current California Representative for John Gardiner's Tennis Ranch Foundation
Thomas A. Gardiner has been in the Hospitality Destination Resort business all his life.
Born in Carmel, CA in 1951 and living on the Monterey Bay all his life, his parents John and Barbara Gardiner were recognized in 1957 by Time Magazine for opening the 1st Destination Tennis Resort‐Summer Children's Tennis School Camp in the World: the John Gardiner's Tennis Ranch Foundation, a
501(3)c CA-Non-Profit Hospitality & Tourism Careers Development organization in Carmel Valley CA.
Growing up in a Family Business, doing almost every resort job, becoming the General Manager and being recognized by Forbes, Gourmet, Tennis and Town & Country magazines, Mr. Gardiner resigned in 1984 to form TAGCORP Management & Marketing Services Consultant Business.
|Ayse's Corner is a feature column of the World TradeWinds eZine'. Ayse Oge is a published author and global trade marketing expert and author of Emerging Markets.
'World Smart Veterans" - From War to International Trade
Ultimate Trade, a consulting, speaking and training firm, announces the release of "World Smart Veterans," an e-book sold on Amazon Kindle that helps veterans transition into civilian life by guiding them through the necessary steps of finding international trade jobs in the United States.
A recent study by the Bureau of Labor Statistics shows that 21.2 million men and women were veterans in 2014. Out of those 21.2 million, only 10.2 million veterans actually had jobs! When it comes to finding employment, the biggest hurdle that veterans face is matching their skills, education and training from the military field to appropriate civilian jobs. This is unfortunate, as vets deserve to be seen and understood by potential global business employers who can appreciate their unique skill sets, values and discipline.
Dr. Leonard Wong, a research professor at the U.S. Army War College Strategic Studies Institute, points out in his work that "junior officers are being developed into creative, innovative, and independent leaders." He attributes vets' unique ability to stand out in the workplace to the ambiguous, complex, and unpredictable environment of post-war Iraq. This environment (albeit on a much smaller scale) is similar to how small and mid-sized global businesses operate in the U.S. For employers who are looking to find and mold international trade champions, they should realize that veterans are the perfect candidates. Some reasons why a veteran would be a great fit in any U.S. global business include (but aren't limited to): their capacity of making fast decisions on the front line, their diverse outlook and ability to speak multiple languages, and their commitment to quality.
More Benefits of Hiring Vets:
- Veterans are change agents. The Army's New Field Manual 5-0, The Operations Process, addresses adaptation by focusing on creative thinking. It introduces vets to a process that involves creating something new or original when facing old or unfamiliar problems that require fresh solutions. This particular skill set comes in handy for employers who are responding to the product design and development needs of their international customers.
- Veterans have the discipline to learn essential aspects of international trade such as marketing, customer service, logistics and global management.
- Employers who hire veterans can benefit from this decision! The VOW to Hire Heroes Act of 2011 provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans.
With the release of "World Smart Veterans," hopefully we will start to see more veterans being provided with the resources, tips, and opportunities they need to incorporate the skills and experience they acquired in the military, and it will ultimately end up leading to many vets becoming global entrepreneurs or international trade professionals in the U.S.
Ayse Oge is President of Ultimate Trade, International Trade Consulting, Speaking and Training. She is also Board Member of California Business Education Association. She is currently writing a book entitled, "World Smart Veterans, Transferring Your Skills to Global Business," which will be published as an e-book in October 2015.
MBITA's trade finance column features articles from the experts in the field of EXPORT FINANCING.
Pay-As-You-Go. vs. Non-Cancellable Export Credit Insurance Policies
by MBITA Member T. John Keevan-Lynch, President of Provident Traders, Inc.
Most export credit insurance policies written in the US require the insured to pay at least 80% of the annual premium on projected export sales in advance, or with interest over the course of the year, regardless of whether the projected exports materialize. However, at least two US insurers offer pay-as-you-go export credit insurance policies under which the insured is obliged to pay premium only on shipments effected in the previous month.
So, why would an insured opt to pay in advance for shipments that may or may not take place nine months in the future?
Part of the answer lies in the history of the most recent financial crisis in this country. At the outset of the Great Recession, a couple of large export credit insurers cancelled or lowered their previously-approved overseas buyer credit limits for policies that had already been issued and paid for.
These insurers were able to do so because their policies were cancellable, i.e., they allowed the insurers to reduce or cancel a credit limit at any given time and for any reason. Only credit-insured shipments made prior to the withdrawal of cover remained insured. The insurers that cancelled or drew down buyer limits were reacting not only to particular buyer or country risk, but to sudden insecurity in all financial transactions.
Afterwards, exporters wanted non-cancellable policies whose terms and conditions could not be changed by an insurer during the policy term. In effect, non-cancellable policies give the insured a reservation of capacity that cannot be given to another insured or re-priced at a higher premium rate if and when the risk of non-payment rises for industry-wide or country-specific reasons.
Still, like cancellable policies, non-cancellable policies do not cover shipments made under specified high-risk conditions that become more prevalent in times of economic recession or political upheaval. Both policies preclude shipping to a buyer who is seriously past due on existing invoices, has ceased normal operations or has become the subject of insolvency proceedings. Both require that the insured use measures to prevent and minimize loss.
While all non-cancellable credit insurance policies demand payment of premium for projected exports, not all cancellable policies allow pay-as-you-go premium payments. In fact, most do not.
Bottom line, in deciding whether to accept a policy that requires payment of premium on the basis of projected exports that may never materialize, an insured should not only consider (1) the policy's cancellable or non-cancellable language but also (2) the insured's duties as described in the policy, as well as (3) the character of the insurer, changeable as that may be, because they all exercise a degree of business judgment in deciding whether to cancel coverage or deny a claim.
SBA's export loan programs are all about RELATIONSHIP
Use SBA export loan guarantees to keep valued, visionary customers
More and more small businesses today are realizing the importance of the international market for growing their sales and diversifying their customer base. After all, 96% of the world's consumers are outside the US, and with a growing middle class, 2/3's of the anticipated growth in GDP will happen in foreign markets. Still for most small businesses, domestic sales will continue to represent the majority of their revenue, and no doubt that is where most lenders are most comfortable in supporting their financing needs.
So how can a lender accommodate that valued and visionary business customer when they are approached for help on an export opportunity? It may not represent the most profitable opportunity, but any banker will certainly want to keep that account rather than see it head for another lender that's willing to tackle the export need.
SBA export loan guarantees support your RELATONSHIP with your valued customer
That's why SBA's Export Express and Export Working Capital Program (EWCP) loans are ideally suited for maintaining that key RELATIONSHIP. These programs offer 90% SBA guarantees on export financing to protect the lender and help it get comfortable with a possibly small but important piece of their favorite customer's growing business.
SBA export loan guarantees are handled through a RELATIONSHIP with a knowledgeable, accessible, local SBA export program manager
You're not alone when you decide to tackle the challenges of export financing. SBA's export loans can be processed with the help of a local SBA export program manager. SBA has 20 of these situated around the US, and one is near you. Click here for a roster.
This person works regularly on export finance deals, so they can guide you not just on the special, enhanced features of SBA export programs but also on ways to safely structure foreign sales. And they can connect you or your business customer with a raft of export information and resources that can help make foreign sales familiar. You'll find a RELATIONSHIP with SBA's export loan officers can make SBA export financing even smoother and faster than standard 7(a) lending.
So when export finance opportunities beckon, let SBA's export services boost your RELATIONSHIP.
Export Finance Manager
US Small Business Administration-Office of International Trade
Initiative (NEI) Update
Commerce under Secretary Selig highlights the advantages of TPP at Global Markets conference
U.S. Under Secretary of Commerce for International Trade Stephan Selig
|U.S. Under Secretary of Commerce for International Trade Stefan M. Selig explained the positive impact of the Trans Pacific Partnership (TPP) on U.S. businesses of all sizes during his keynote address at the Discover Global Markets Pacific Rim Consumers Forum outside Los Angeles.
"TPP represents a generational opportunity for American businesses both large and small," Under Secretary Selig stated. "It is the first trade agreement to ever have a chapter specifically dedicated to assisting small and medium sized enterprises to access global markets."
Selig told the sold out audience of chief executive officers and marketing and supply chain executives that TPP will remove many of the barriers that prevent small and medium sized enterprises from going global. When implemented, TPP will reduce unnecessary delays and paperwork; make regulations more accessible and responsive to public input, and require measures to facilitate e commerce, as well as eliminate tariffs on shipments below a certain value.
Selig discussed the International Trade Administration's available resources through its U.S. Export Assistance Centers in more than 100 U.S. cities and in U.S. embassies and consulates in all TPP countries. These valued resources will assist businesses of any size to take advantage of all the opportunities that TPP will provide.
To read Under Secretary Selig's remarks, please visit ITA's speech archives.
For additional information on Discover Global Markets forums, please visit http://www.export.gov/discoverglobalmarkets/.
Read source press release.
International Trade Administration
The International Trade Administration (ITA) is the premier resource for American companies competing in the global marketplace. ITA has 2,100 employees assisting U.S. exporters in more than 100 U.S. cities and 72 countries worldwide. For more information on ITA visit www.trade.gov
The National Export Strategy is available also at
http://trade.gov/NEI and http://export.gov.
United States Department of Commerce
Office of Public Affairs - Tel. 202-482-4883
Must See Video on Global Trade
Click HERE to see the 'Making Hay' video by Dan Gardner of Trade Facilitators, Inc. This multi-industry webinar is a 'must see' for global trade students and practitioners of all levels and World TradeWinds considers it to be one of the most concise and informative webinars on the history, present state and the future of the Global Trade industry there is available today.
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Online Export Classes
This six-course series will cover all key areas of the export industry, including markets, sales representatives, pricing, agreements, shipping and payments. You can earn Continuing Education Units (CEUs) and a Certificate in Export Management. The classes are available online 24/7, so you can start immediately and learn at your own pace.