Export Ready Certification Training Program

 

Summary & Review

Introduction

The export development program of the University of Missouri Extension provides export related programs, services, and training to small businesses, with special emphasis on export readiness. The Export Ready Certification Training (EXCERT) program was designed to meet initial training needs of firms wanting to get started in exporting. It focuses on the basics of export marketing, shipping, and documentation, international finance, and select legal aspects. The Export Expert (EEX) software provides additional information on the focus of the export development program, as well as additional information on export readiness. Using the material in the written manual in conjunction with the Export Expert software shortens the learning time.

 

Procedure/ Results

Select materials are presented in fifteen chapters in the EXCERT manual.

Unit 1: This unit introduces new-to-export companies to the concept of exporting, as a form of international business. Participants completing this unit should be able to distinguish between direct and indirect exporting and compare these to other forms of international business. They are also taught common export objectives such as increasing total sales volume and improving overall return on investment, and the unique risks and activities involved with export sales.

Unit 2: This unit enables participants to determine the feasibility of exporting, to identify strengths and weaknesses related to the company and its product or service for export, to distinguish between an "assumed" export potential and the true export potential, and to initiate and build support for company export activities. Completing this unit enables participants to be familiar with some basic requirements for exporting and considerations for evaluating the export potential of a company and its goods or services. Export assistance sources such as the Bureau of Export Administration, The Foreign Agricultural Service, the District Export Council and the Export-Import Bank of the United States may be contacted by would-be exporters.

Unit 3: This unit introduces the concept of International Marketing Plans, which serve to encourage and support the commitment of management to export sales. This is a plan which also establishes the company's export goals, identifies current and needed personnel and financial resources, evaluates export strategies and outlines action programs to implement the plan. Training will enable participants to be familiar with the purposes and the basic components of a written international marketing plan. This plan should be revised to meet the requirements of particular situations.

Unit 4: The unit on export sales shows how companies can generate export sales by using both indirect and direct exporting, depending on the goods and the target markets. Exporters will need to communicate with foreign contacts in different ways depending on whether the sale is indirect or direct. Effective "cross-cultural" communication skills will be learned. Participants will be able to distinguish between indirect and direct exporting. They will also be familiar with different methods of indirect and direct export sales as well as guidelines for international negotiations. Issues covered in this module relate to intermediaries, internal preparation, contracting and negotiating.

Unit 5: This unit focuses on promotion activities for new-to-export companies including activities used for establishing foreign agents and distributors, and supporting appointed foreign agents and distributors. These activities include attending international trade shows, distributing collateral materials, contacting prospects and customers, using direct mail, preparing press releases, and advertising. When the training has been completed participants should be able to explain levels of promotion activities for export sales, and discuss promotion methods suitable for each level. The participants could select Department of Commerce promotion events, and further state basic guidelines for promoting export sales.

Unit 6: This unit deals with the concept of terms of sale and pricing. In addition to preventing costly misunderstandings in export sales by identifying the obligations of the buyer and the seller in the transaction, agreed-upon terms of sale also state the terms of delivery, provide meaningful price quotations to potential buyers, and identify the buyer's and seller's costs associated with specific responsibilities. Because export sales include additional costs to the manufacturer, many of which are not components of domestic prices, export sales may require flexible pricing that reflects the costs associated with providing the goods to foreign markets. Participants completing this unit will be familiar with basic export terms of sale and obligations of the buyer and the seller under each term.

Unit 7: In this unit we are introduced to the concept of financing. This is based on the fact that manufacturers might require financing for export sales, in order to produce and/or prepare goods or services for export. Export financing is also required in order to offer competitive credit terms to foreign buyers, to provide needed funds equal to the export sales while the sale is outstanding, or to support promotion, selling, shipping, and other activities. Completing this training will make participants conversant with different options available for financing export sales.

Unit 8: In this unit participants are introduced to the options for receiving payments for goods and services. Factors affecting the payment option include credit-worthiness, and the success of a business relationship with a foreign buyer can influence payment terms. New-to-export companies would choose less risky payment options that could be modified after establishing a successful working relationship. International banking specialists should be able to offer qualified advice on terms of payment. One of the most secure and most common payment methods is the commercial letter of credit. Banks acting as neutral third parties verify compliance with the agreed-upon terms of payment. After completing this unit participants should be able to identify different methods of payment, and interpret a simple commercial letter of credit.

Unit 9: This unit deals with export documents and the movement of goods. Exports require documents recording movement of goods from the manufacturer through the marketing chain. Although some documents could be used for domestic as well as export sales, many are unique to export. They are useful for distribution, transferring responsibility or possession, clearing goods through customs, and facilitating payment through agreed-upon terms of payment. Types of documents required depend upon the type of good, foreign destination, and other factors. Some companies handle their own paperwork, but many depend on the professional services of freight forwarders. Services provided by freight forwarders include preparing and reviewing export shipping documents, and other shipping related services. Participants in this module would be introduced to basic export documents, and steps in the shipping documentation process.

Unit 10: This unit deals with export packing, as a way to protect goods from damage from handling, movement, water, theft and pilferage, and other hazards. Proper export packing methods will be discussed, because the method of packing facilitates handling and transportation of goods. It also communicates important information to persons involved in the shipping process. The differences among goods and among modes of transportation should be taken into consideration in export packing. This unit will enable participants know the importance and methods of packing goods for export. Participants should also be able to identify common causes of loss for specific categories.

Unit 11: The unit deals with US export regulations and licensing requirements. Although most commodities are pre-approved for export to certain destinations, some commodities are controlled and may not be exported without license. Such export controls sometimes exist for reasons of economics, foreign policy, and national security. United States exporters will be expected to comply with licensing regulations, violations of which are subject to civil and criminal penalties.

Unit 12: This unit deals with the Anti-boycott Compliance and Foreign Corrupt Practices Act. It is an established policy for the US to oppose restrictive trade practices or boycotts that are fostered or imposed by foreign countries against other countries that are friendly to the US. This policy also encourages domestic concerns to refuse to take any action that can have the effect of furthering or supporting such practices.

Unit 13: This unit deals with the issue of international contracts and agreements, by emphasizing the need for a written contract in global markets, as opposed to a "handshake". Firms establishing international sales and distribution and through foreign agents should have a written contract. It will include what manufacturers expect from distributors and what they will do to support their efforts. All such agreements should be approved by qualified legal counsel. Participants will be introduced to the United Nations Convention on Contracts for the Sale of Goods.

Unit 14: This unit covers the issue of intellectual property rights for companies entering foreign markets. This is necessary because product manufacturers need to make certain that company names, logos, products, brand names, etc are properly protected in targeted foreign markets. Participants should be able to identify provisions of the Paris Convention, guidelines for protecting international property rights and for product liability protection in foreign markets.

Unit 15: This unit deals with organization of export operations since companies need to organize their resources to meet the special needs of export sales. This organization should take into consideration company commitment of personnel, financial and other resources to export sales, and include options such as the dependent export department, the semi-independent export department, and the international sales division.

 

The package is fairly well done, according to various reviews. The material, however, is so concise it might not convey enough understanding unless the user already knew a reasonable amount about marketing. The text does not provide many viable options for companies/products that have no suitable overseas distributor. The chapter on export financing is weak, missing the main points a novice needs to understand. There was need to include a straightforward discussion of the role of an international letter of credit. More information on banking and finance need to be added. Recognizing the shortcomings, this product is a valuable addition to extension system education programs, especially in an area where little programming is done and few states have full-time efforts ongoing.