
Powered by Exoro International	International trade news and resources from World Trade Center Utah

PRESIDENT'S MESSAGE

Fellow Utahns,
We hear a lot these days about various activities being at the so-called “Tipping Point.” It’s Lew Cramer, president of the World Trade Center Utah

Lew Cramer, president of the World Trade Center Utah

been defined as that point where an inevitable result is very likely because of the confluence of many events.

Utah is now at our “Global Tipping Point,” where our strong economy, bright college graduates, energetic entrepreneurs, culturally experienced business executives, growing infrastructure of finance, law, and logistics, coupled with a supportive state government---ALL are combining to expand our state’s international business opportunities. NOW is the time to learn more about what, how and where your company can participate in the fast growing international economy. Let’s talk together about the best ways to join in the Utah Global Tipping Point.

Sincerely,
Lew Cramer

Compiled by
Adam Walden

Trade and Hosting Coordinator, Governor's Office of Economic Development

Subject: Transportation

Atlanta, Hartsfield Airport had over 85 million passengers in 2006, making it the busiest airport in the world. Atlanta, Hartsfield also ranks number one in the world for average daily landings and take-offs: 2,686. Not far behind, at number two, is Chicago, O’Hare Airport with 2,264 average daily landings and take-offs.

The United States has five of the top 10 busiest airports in the world:
1-Atlanta, Hartsfield: 85.9 million passengers
2-Chicago, O’Hare: 76.5 million passengers
5-Los Angeles, Intl: 61.5 million passengers
6-Dallas, Ft. Worth: 59.1 million passengers
9-Las Vegas, McCarran Intl.: 44.3 million passengers

Highest Car Ownership (number of cars per 1,000 population)
1- New Zealand: 619
2- Luxembourg: 574
3- Canada: 564
4- Iceland: 557
5- Italy: 547
12- United States: 468

Lowest Car Ownership (number of cars per 1,000 population)
1- Ethiopia: 1
2- Sierra Leone: 2
West Bank and Gaza 2
4- Bolivia: 3
5- Bhutan: 4
6- India 6
Gambia 6

Source: The Economist, Pocket World in Figures, 2007 Edition

WEB LINKS

International Trade Information

Dictionary of International Trade

Freight Transportation Database

A Basic Guide to Exporting

News and Information Updates from the Export-Import Bank

Webinars Provide Tips for Entering New International Markets

Export Institute USA

Export.gov Trade Leads

National Trade Data Bank

Eport.gov Country Database

Subscribe to the Business Week Asia Insider

Subscribe to the China Economic Review

Get the latest annual and quarterly trade data with TradeStats Express

News and Audio in 33 Languages
The BBC provides audio news broadcasts in multiple languages

U.S./Mexico Border Directory -- Provides information useful for conducting business in the U.S./Mexico border region

COUNTRY NEWS

Millennium Challenge Corporation Approves 5-year, $697.5 Million Compact with Morocco

The Board of the Millennium Challenge Corporation has approved a five-year, $697.5 million Millennium Challenge Compact to reduce poverty and increase economic growth in the Kingdom of Morocco. The program seeks to stimulate economic growth by increasing productivity and improving employment in high potential sectors including investments in fruit tree productivity, small-scale fisheries, and artisan crafts. Small business creation and growth will be supported also by investments in financial services and enterprise support. (Read more)

China soon to pass Japan as third-biggest U.S. exports market

(Source: American Shipper, August 27, 2007)
A Beijing official said Thursday that China will overtake Japan as the United States' third largest export destination by the end of the year or early 2008. According to a report in the state-owned newspaper Xinhua, China has been the fastest growing U.S. export destination for five consecutive years, said Chinese Vice Minister of Commerce Gao Hucheng.

China's foreign trade volume reached $1.17 trillion in the first seven months of 2007, a 24.4 percent increase over the same period last year, according to customs sources.

Trade between China and the United States surged to $262.7 billion in 2006 from $2.5 billion in 1979, with farm produces and machinery registering fast growth, according to Gao.

China stood as the U.S.'s ninth-largest export market in 2001 and the fourth in 2005, while Canada served as U.S. largest export market in 2006, followed by Mexico and Japan.

By 2006, the United States had set up more than 50,000 enterprises in China, with investment totaling more than $54 billion, while China had built more than 1,100 enterprises in the United States with investment of nearly $3 billion, Gao said.

EC Keeps Tariffs on Chinese Lightbulbs

(Source: Business Week, August 29, 2007)
Energy efficient light bulbs will be more expensive for at least another year as EC bows to pressure from local manufacturers to keep import tariffs.

Russia's Very Hostile Takeovers

(Source: Business Week, August 29, 2007)
Ruthless businessmen employ armed thugs to intimidate their rivals and force them to hand over their companies. Corrupt police and courts don't hurt.

FEATURE

Gender & Age Discrimination is Costing U.S. Importers Billions

Importers of apparel and footwear, large and small, may be due a big refund.

By Matt Gersper and Tom Gould

Data mining analysis has determined U.S. Importer’s have overpaid more than $1.3 billion in discriminatory duties over the past two years. More than 40 importers have already filed a law suit to protect their interests. What’s your share of this potential multi-billion dollar refund?

The lawmakers of the United States Congress have been legalizing age & gender discrimination for years. The duties applied to clothing, shoes and other age or gender differentiated products as they enter the country’s ports may be the last legal form of age and gender discrimination in the U.S…and it may be costing your company more than you think.

Importers are using data mining analysis to precisely calculate their potential claim, secure the data necessary to protect their interests, and file a claim now to maximize their refund.

Financial Impact

The financial impact on companies importing goods into the US may surprise you. For example, men’s bathing suits have a 28 percent duty on imports, but just 12 percent on women’s. The duty rate for men’s woven wool suits is 17.5 percent -- 3.5 percent higher than on women’s suits. The tariff on silk shirts for women is 6.9 percent, but just 1.1 percent for men’s shirts. In one example, discriminatory duties cost an importer $53,000 on just one classification of women’s footwear. This single classification (one of more than 2,000 with discriminatory duties) has cost all US importers more than $1.2 million.

There is no apparent pattern to the tariffs, which penalize men in some instances, and women in others. There are also significant differences with age groups such as babies, boys and men.

According to Michael Barbaro, in his April 28, 2007 article in the New York Times, the government’s only known opinion on the matter appeared in 1960, during a study of the United States tariff system — and it appears to help the clothing companies’ legal case, rather than hurt it. Describing the gender disparities on shoes, federal regulators conceded that “their economic justification is questionable.”

Discriminatory Duties

The discriminatory duties have an additional impact on US consumers. Tariffs based on age or gender can discourage US companies from making certain products thereby limiting shoppers’ options. When a company decides to make and import a product with higher tariffs, they either suffer reduced profits or pass the costs along to the ultimate consumer.

A discrimination case has been filed in the Court of International Trade by Totes-Isotoner Corporation against the U.S. Government (Totes-Isotoner Corporation v. United States, Court No. 07-00001). In this case Totes-Isotoner claims that Customs duty rates for leather gloves, which are currently 14% for men and just 12.6% for women and children, unfairly discriminate on the basis of gender.

Other major apparel and footwear importers, such as Payless Shoesource, Steve Madden, Asics and Columbia Sportswear have also filed lawsuits against the federal government, as has the large retailer Target Corp. and its affiliate, Associated Merchandising Corp.

These companies are asking that duties be equalized at the lower tariff rate. The New York-based Court of International Trade handles all appeals in trade related cases. One leading attorney involved has predicted it could go all the way to the U.S. Supreme Court.

Columbia Sportswear imports a rugged hiking boot from China called the Diamond Peak. The men’s and women’s boots are virtually identical. But the tariff on the women’s version is 1.5 percentage points higher than the men’s (10 percent, compared with 8.5 percent). In his article In Apparel, All Tariffs Aren’t Created Equal, Michael Barbaro quoted Peter Bragdon, the general counsel at Columbia Sportswear: “It’s irrational, I think any first-year law student would have the same gut reaction we did — wait, you cannot do that,” Mr. Bragdon said.

New research has identified more than 2,200 pairs of US Harmonized Tariff codes (HS codes) impacted by discriminatory duties, over 300 for Age Discrimination and more than 1900 for Gender Discrimination. One leading retailer has filed a lawsuit claiming unfair taxation on far fewer HS codes than its product line represents. We fear the 40 plus importers who have already filed claims may have missed some opportunity and not maximized their potential refund.

Data Mining

Data mining techniques provide a more comprehensive and less expensive solution than traditional legal or manual research. It can provide an importer a detailed screening report to the line item level of each entry number and entry date for every shipment in the last two years. Your company’s actual trade data can be used to precisely calculate the potential refund. Data mining has lowered the costs associated with this type of analysis to the point that even smaller importers can afford to participate.

It’s been said that business information can and should be used to outthink rivals, and there's no better way to outthink them than by using analytics to make decisions. In this case, companies can use the same data to outthink their rivals and to defend their claims against the government, at a fraction of the costs associated with researching and assembling the required documentation through traditional legal methods.

Act now. Time is of the essence. The law permits you to go back two years for a claim and then protects all imports until the case is solved. Companies like Totes-Isotoner, Steve Madden, Asics, Columbia Sportswear and Target Corp. have created a competitive advantage by filing early. Their claim will be protected longer than companies that have not yet filed.

Act now to calculate your potential claim, secure the data necessary to protect your interests, and maximize your refund. For more information contact Matt Gersper: mattgersper@gdmllc.com, or Tom Gould: tgould@zissergroup.com.

HEADLINES

Paris, here we come! Salt Lake lands direct flight

(Source: Deseret Morning News)
Daily nonstop to begin June 2, 2008; one-way tickets now selling for $499.

Wine snobs, truffle lovers and point guards for the San Antonio Spurs will now have a nonstop flight to their favorite country.

Delta, Northwest look overseas to grow profits

Face to face: Delta President says Paris launch may open doors to other continents

SLC lands nonstop flights to Paris

Compiled by Elizabeth Goryunova

Director, International
and Executive Relations
Salt Lake Chamber

Country: Japan

Japanese culture is built on respect and tradition. Common greetings in Japan: ohayô gozaimasu (good morning), konnichiwa (good day, good afternoon), konbanwa (good evening), oyasuminasai (good night); each accompanied by bowing, or (for foreigners) nod of the head. Unless a professional title is available (sensei for "doctor" or "professor"), use the neutral san or formal sama, attached to the last name (for example, Hiroshi-san), but NEVER use these after your own name.

Punctuality is a must. Business in Japan starts with a ceremonial business card exchange (meishi), therefore bring plenty of business cards. Facing your counterpart, bow slightly and hand your card (printed in both languages, Japanese side up) with both hands. Receive business card in the same way and show respect by examining it carefully before placing it gently on the table in front of you (never in your trouser pocket).

The seating arrangement at the meeting is determined by status; wait until you are directed to the appropriate seat. Instead of a direct "no" one often says, "I will think about it". When entering a Japanese house, take off your shoes at the entrance. Special toilet slippers are used (only) for the washroom.

Gift giving is very important, however avoid giving pricey gifts; the best time to present a gift is at the end of your visit. Use pastel colors for gift-wrapping, avoid white flowers and potted plants. And don't use red ink to write anyone's (including yours) name (funeral notices are printed in red). Mind that the number four (and nine) are considered unlucky. Maintain quiet manners and show appreciation and respect frequently.

Odd Foods from Around the World

(Source: U.S. Translation's July Newsletter)
What people from around the world consider “food” is largely based on that which is available combined with that which the human body needs in terms of nutrition. Below are some examples of “odd” foods from around the world:

China: Chicken heads – pop the whole head in your mouth, “gnaw” for a while, sucking off the parts that fall off, spit out the rest.

Saudi Arabia: The eyes of a roasted lamb’s head are top delicacies offered to honored guests.

Australia: Aboriginals consider sugar ants and chopped marinated kangaroo tail ragout to be delicious.

Java & Indonesia: Birds’ nests are considered to be delicacies and used for flavorful soups.

Amazon Jungle – South America: Termites are readily available in the jungle and are considered a good source of protein.

Japan: Natto is a dish made from fermented soybeans. It has a sticky, slimy texture that produces lots of fine strings between clumps of beans. It has a pungent smell and very strong flavor.

Thailand: Durian is a fruit as big as a football, covered with tough spiky skin. The pulp is pale yellow, with shape and consistency of raw brains. Smell has been compared to rotting flesh, old gym socks, or sewage. It’s been described as “eating sweetened coconut while continuously inhaling natural gas,” or "like eating pudding in an outhouse".

CALENDAR

Do you have a calendar item you'd like us to publish in the newsletter? Click here to email it to us.

September 6 - 8 -- Salt Lake Greek Festival

September 18 - 19 -- Fourth China Branding Roundtable
Seminar to be held in Bejing, China

October 27-November 3 -- GOED Trade Mission to India

Oct. 12 -- Middle East North Africa Business Information Center Seminar

Oct. 29-Nov. 9 -- GOED East Asia Trade Mission.
Those interested should contact Lu Chang at CLU@Utah.gov for an application and additional information.

Salt Lake Chamber's events calendar

Utah International Calendar

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