International Trade Acronyms

Welcome to our weekly list of acronyms used in international trade.  The acronyms found here represent terms used in logistics, imports, exports, government agencies and more.  This week we review acronyms that start with “L.”   Please feel free to contribute additional acronyms to the list.

L/C	Letter of Credit
LCB	Licensed Customs Broker
LCL	Less Than Container Load
LDC  LDDC	Least Developed Country  and Least Developed Developing Country
LIFO	Last In First Out
LOI	Letter of Indemnity
LTL	Less Than Truckload

Culture Quiz Answers

Last week we posted an article about working with other cultures.  The answers to the two questions are posted below.  For the next few weeks, we will post a culture question at the top right side of the blog so readers can vote on the correct answer. 

Question 1

Answer: B

When a toast is made, do not break eye contract with your Russian host from the moment you lift your glass off the table to the moment you place it back down on the table.  Failure to do this is considered an insult.

Question 2

Answer: C

It is considered rude to finish everything on your plate in China  because your hosts may think you did not get enough food and are still hungry.

NEW: Post Summary Correction

Starting June 4, 2011, entry filers will be able to correct entry summaries electronically using the Post Summary Corrections (PSC) feature in ACE.  PSC replaces the Post Entry Amendment for ACE entry summaries. PSC allows importers to make electronic corrections to entry summaries already submitted and accepted by CBP.   The PSC is considered a replacement of the entry summary data.  Corrections must be submitted by transmitting a PSC, as the use of the PEA for an ACE entry summary will not be allowed 90 days after June 4.   

The PSC must be transmitted within270 calendar days of the date of entry and the PSC cannot be filed within20 calendar days of the scheduled liquidation date. A PSC cannot be filed for Entry Type 11, informal entries and a filer cannot change an Entry Type 43 (AD/CVD) entry to another type. Although CBP indicates there will not be any limit to the number of PSC submissions for an entry summary, the trade should be cautious.  Making one or two submissions for one entry might be reasonable, but submitting 30 separate changes for one entry summary might raise some red flags.

Click HERE for details on the requirements for filing Post Summary Corrections.

International Trade Acronynms

Welcome to our weekly list of acronyms used in international trade.  The acronyms found here represent terms used in logistics, imports, exports, government agencies and more.  This week we review acronyms that start with “J” and “K.”   Please feel free to contribute additional acronyms to the list.

JFTA	Jordan Free Trade Agreement
JIG	Joint Industry Group
JIT	Just in Time
JOC	Journal of Commerce
KD	Knocked Down
KG	Kilogram

Culture Quiz for International Trade Professionals

As organizations expand into global markets, it is important to understand and respect cultural diversity. To succeed, import/export organizations must be able to adapt to the way other cultures do business. Etiquette, business practices, styles of dress and communication vary from country to country. Some of the most common cultural differences U.S. companies face relate to punctuality, gift giving, greetings and the significance of gestures. Punctuality may be of primary importance in some countries, while be entirely ignored in others. For example, the Japanese value punctuality, while Latin businesses opt for a more relaxed atmosphere. Gift giving is often a source of confusion. In some cultures, such as Japan, gifts are expected; therefore, failure to present your host a gift would be considered disrespectful. Gifts are rarely exchanged in Germany. Failure to properly research customs and adhere to them can prevent your company from accomplishing your objectives and ultimately lead to the failure of your import/export venture.

Do you have any stories or advice to share about doing business with businesses in different cultures? We welcome your comments and advice.

Check out the quiz question below. Next week, we will post the answers and share some additional information about doing business with different cultures. 

Question 1


You travel to Russia to sell construction machinery. At dinner, your Russian host makes a toast in your honor. What is the correct way to acknowledge the toast?


A. Chug down the whole drink in one gulp.
B. Keep your eyes on your host when drinking.
C. Make a toast in your host’s honor before taking a drink.
D. Shout “SPASIBA” (thank you), and clink glasses with your host before taking a drink



Question 2


While visiting your parent company in China, one of your colleagues invites you to dinner at his home. Having only coffee and a stale roll since you arrived from the 18-hour trip, you are starving. Is it ok to eat everything on your plate?


A. Yes. Food is expensive in China and your hosts will think you are wasteful if you leave anything on your plate
B. Yes. Leaving food on your plate signifies that you did not enjoy the meal your hostess served.
C. No. Eating all of the food on the plate is considered rude.
D. No. You should ask for a doggie bag.

Stay tuned next week for the answers to these questions and some new questions.

U.S. - Korea FTA Hits Roadblock

It appears that the Korean parliament and the U.S. government have something in common – roadblocks in passing the agreements. In Korea, translation errors are being blamed for the delays.  The corrected agreement may be ready for resubmission in June.

In the United States, the agreements with South Korea, Colombia and Panama are being held hostage until Congress reinstates the expanded version of the Trade Adjustment Assistance, a program designed to provide benefits for persons who lost their jobs because of competition from imports.

Happy Belated World Trade Week!

Now that I’m about caught up, it’s time to get back to blogging.  This week, May 15 through May 21, we officially celebrate World Trade Week.  On May 13, President Barack Obama issued he proclamation and encouraged Americans to participate in trade activities, educational events and reflect on the benefits international trade provided the United States. 

What are you doing to celebrate World Trade Week?

Tornado Assistance in Alabama

I'm back!   The blog was quiet last week while I worked with the New Covenant UMC Early Response Team "ERT" in Pleasant Grove, Alabama providing assistance to the people in the area. On April 27, 2011, F5 tornadoes destroyed miles of property in Alabama. Click on the video below to view some of the pictures taken by members of our team.  Additional pictures will be posted later.   Remember, even if you cannot go and provide physical assistance, you can help by cooking meals, preparing equipment and performing other acts of service to those who are working in Alabama, as well as sending donations to one of the charities of your choice.

International Trade Acronyms

Welcome to our weekly list of acronyms used in international trade.  The acronyms found here represent terms used in logistics, imports, exports, government agencies and more.  This week we review the other half of the acronyms that start with “I.”  Please feel free to contribute additional acronyms to the list.

                                                                                                                               

IOR	Importer of Record
IPPC	International Plant Protection Convention
IPR	Intellectual Property  Rights
IRT	International Registered Traveler
IRT	Internal Revenue Tax
ISA	Importer Self Assessment
ISF	Importer Security Filing
ISO	International Standards Organization
ISPM	International Standards for Phytosanitary Measures
ISPS	International Ship & Port Facility Security
IT	Immediate Transportation
ITA	International Trade Association
ITAR	International Traffic in Arms Regulations
ITC	International Trade Commission
ITDS	International Trade Data System
ITRAC	Importer Trade Activity

ITA Introduces FTA Tariff Tool

The text of the free trade agreements is complicated.  With so many FTAs and so much text, how is an importer supposed to keep track of all of the benefits these FTAs have to offer?    Check out the International Trade Administration’s new FTA Tariff Tool.   The tool contains a searchable database to determine the tariff treatment of goods covered by U.S FTAs, generates market access reports and creates a snapshot of current tariff and trade trends of the FTAs. The database currently covers industrial goods; however, the ITA is working on agricultural and textile products. The new tool comes with a downloadable video that provides instructions on how to use the various functions.  Let’s take a quick look at two of the tools. 

Select a Tariff

If you want to determine the tariff rate for a specific HTS and FTA, then use the Tariff Search option.  You will enter the country, HTS number and select importing or exporting. Only enter the numbers.    For example, if you want to know the duty rate for importing pressure-reducing valves from Korea, enter 848110 (not 8481.10).  When you click on the details, you will find the base rate of 2% without the FTA and then the staged rates.  Although the Korea FTA has not yet been approved, we find that pressure-reducing valves will be free of duty when the agreement is implemented.   The same valve is currently free under the Oman FTA.  If exporting the valves to Korea, the duty rate without the FTA is 8%; however, the duty rate in the first year of the agreement will be 7.2 % and will eventually reach duty free status in Year 10 of the agreement.  This is a wonderful tool for importers and exporters to look up HTS rates for importing and exporting products to countries subject to FTAs.

FTA Snapshot

If you want to see trade based on imports or exports of a Sector or Chapter with a country subject to one of the FTAs, select FTA Snapshot.  For example, if you wanted to view the trade in U.S. exports of footwear to Australia, you would select exports, then the country of Australia and then the sector, Footwear, Leather and Travel Goods. The next screen shows the average tariff and the value of goods exported.  For footwear, we find original tariff to average 9.5%, a current tariff of 1.0%.  The value of goods exported in 2006 was $6.3 million and the value in 2010 as $7.47 million.    This option is a great tool for researching history and trends for commodities and FTA partners for both imports and exports.  

Click HERE to start using this fantastic new tool.