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Date: 2017-05-09

International Trade and Global Business

When contemplating selling goods and services to the U.S., there are a number of things Irish exporters should consider.

 

1.Make sure you know the Harmonized Code number for the product or products you will be shipping.  This number will go on all of your shipping documents, and will be used by U.S. customs officials to assess the appropriate duty rate on the product.  U.S. duty rates average about five percent, among the lowest in the world for a market of this size.  There is no VAT or national income tax in the U.S., and individual states don’t charge taxes on imports.

2.Protect your intellectual property.  While the U.S. is not a market you have to be overly concerned about, all the same it’s good to protect your trademarks and patented inventions and processes by applying for protection in the U.S.  Also, in this interconnected world the thief could be in a third country, viewing your products, logo and company name on the Internet.

3.Your product must comply with U.S. product standard regulations.  Your U.S. customers can often provide what you need before the goods are shipped.  But in the case of e-commerce marketplaces, you’re pretty much on your own.  If you have questions about the regulations, WebPort Global will get you the answers.  The U.S. is one of the most open markets in the world, which is why it’s such a popular target market.  It does not not make wide use of non-tariff barriers as a policy tool to protect domestic industries.

4.Sanctioned countries.  Ireland isn’t one.  But Iran and some others are.  So make sure you are not selling products into the U.S. that originate in whole or in part from a sanctioned country, such as Iran or North Korea.

5.Make sure your product is priced competitively.  The first step is to know the cost of your product at the point of production.  Then add profit and the costs associated with getting the product to market: freight, including the cost of getting the shipment from dockside in the U.S. to the customer.  Also add the costs of insurance and the duty, if any.  There is no duty on individual shipments with an invoice value of $800 or less. No large market is as generous when it comes to not taxing values of that size.

6.Your importer can guide you on pricing, but if you don’t have one you’re on your own.  One strategy is to search for similar products on e-market places catering to the U.S.  Look at what your competitor charges, then consider the intangible value such as the Made in Ireland label and other unique properties of the product.  Your strategy might be to maximize the price based on unique features, or keep the prices as low as possible in order to generate volume sales and grab marketshare.

7.The buyer may ask for credit terms when it comes time for payment.  You may need the money immediately to cover expenses.  The buyer might not know that he/she can get financing assistance from their local bank or one of the export credit programs such as the Small Business Association of the Export-Import Bank of the U.S. Suggest one of these options if it appears they haven’t heard of them.

8.Use Google and Facebooks ads to target buyers.  Americans are big social media users, spending lots of time each day reading and responding to posts.  Millennials are the heaviest users, but consumers in older demographic groups are active online as well.   

9.Content is still (King) key, so create blog and social media posts around your product on social media and your website.  Devising new things to say about your product and business every week isn’t always easy, but help with topic ideas and writing is available, including from WebPort Global.  If you can get a video made about your project or business—all the better.

10.Provide your e-commerce customer with shipping alternatives.  Irish Post and the U.S. Postal Service have lower-cost freight options—ideal for the customer who wants to pay less for freight and is willing to wait a bit for the order.  Make sure to have information about the shipping options along side online pricing and and shipping information.


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