Fed Ex and the U.S. Commercial Service: Working together for you!

Fed Ex and the U.S. Commercial Service have teamed up to help small and medium-sized businesses export successfully. This partnership includes joint export promotion seminars for U.S. companies to help them take advantage of this export assistance. By joining forces with the U.S. Commercial Service, FedEx, a world leader in transportation, e-commerce and business services, will support U.S. small and medium-sized exporters through its web site and extensive network of global operations. Benefit from this partnership today.

WASHINGTON, D.C. (July 14, 2004) -The Commerce Department's U.S. Commercial Service today announced the participation of FedEx Corp (NYSE:FDX) in a new initiative to provide ongoing support to Commercial Service efforts aimed at boosting exports from U.S. small and medium-size businesses. The agreement promotes exporting through cooperative public-private sector export tools and resources.

"This is a big win for U.S. businesses, especially smaller firms looking to export," said Rhonda Keenum, Assistant Secretary for Trade Promotion and Director-General of the U.S. Commercial Service. "Ninety-five percent of the world's consumers are outside the United States, and by combining our export resources, FedEx and the Commercial Service will make it easier for U.S. exporters to establish and grow their international sales."
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Mexican Border Clearance

The United States and Mexico recently began a Free and Secure Trade (FAST) lane at the World Trade Bridge between Laredo, Texas and Nuevo Laredo, Mexico. The program provides importers expedited release for qualifying low-risk commercial shipments. FAST cuts truck-wait times from an average of two hours down to approximately 20 minutes. Companies may apply for participation in the program by proving that their facilities are secure and that their shipments are low-risk. For details, log on to the U.S. Customs & Border Protection website at http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/fast/us_mexico/.

New Business Insurance from OPIC

The Overseas Private Investment Corporation (OPIC) recently announced two new insurance products designed to protect American businesses as they grow and invest overseas. Small Business Insurance Wrap is for companies with annual revenues under $35 million, and offers clients a reduced rate for political risk insurance with a one-time fee for the life of the loan. Stand-Alone Terrorism Insurance is available to companies of any size and is designed to cover loss resulting from violent acts that are intended to achieve a political objective including threats posed by weapons of mass destruction. For more information, please see http://www.opic.gov/
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SBA Expands It’s Trade Finance Programs

The following information highlights the U.S. Small Business Administration (SBA) Office of International Trade finance programs available to U.S. small business exporters. For complete details, visit the SBA website at http://www.sba.gov/oit or contact your local U.S. Export Assistance Center.

· Export Working Capital Program (EWCP) encourages lenders to offer export working capital loans for a term of up to one year by guaranteeing repayment of up to $1 million, or 90 percent of a loan amount, whichever is less. Financing may be done for a single export order or multiple sales under a revolving line of credit. The loan may be used to: (1) acquire inventory; (2) pay manufacturing costs of goods for export; (3) purchase goods for export; (4) pay for costs associated with service contracts with foreign buyers; (5) support standby letters of credit used for bid and performance bonds; and (6) finance foreign accounts receivable.

New Financial Assistance for Mexican SME’s

To encourage Mexican buyers to purchase more U.S. goods and services, the Export-Import Bank of the United States and Mexico’s development bank, Nacional Financiera, SNC (NAFIN), launched a new financial strategy that will allow NAFIN to offer medium and long-term loans guaranteed by Ex-Im Bank to Mexican small and medium-sized companies. This agreement will benefit U.S. manufacturers by providing additional financing mechanisms to the SME’s, which had been ignored previously by the Mexican financial institutions. This offers U.S. companies substantial opportunities to market their goods and services to a sizeable niche of Mexican companies. Nacional Financiera, SNC is a development bank with the objective to promote integral development and modernization of the Mexican industrial sector; stimulate the development of financial markets and act as financial agent of the Federal Government in the negotiation, contracting and management of financial credits from abroad.More…

International Marketing Resource Guide 2004 is Now Available

The U.S. Department of Commerce recognizes the important role that America’s small business plays in creating jobs, stimulating economic growth, and generating innovative ideas and new technology. This edition of the International Marketing Resource Guide contains valuable information and can be used as a practical reference to many valuable federal, state and private sector resources available to U.S. companies. For a copy of this please contact (local) EAC.

Introducing the European Union’s new Internet address top level domain

The new “.eu” Top Level Domain will allow eligible companies to reinforce their pan-European marketing presence by registering a .eu domain Internet address. This report answers ten questions on ".eu".
".eu" – The European Union’s new Internet address Top Level Domain.

Summary:
The new ".eu" Top Level Domain will allow eligible companies to reinforce their pan-European marketing presence. There follows ten question, and ten answers, on ".eu". The links references in brackets are grouped at the end of the report. More…

Reclaiming EU Value-Added Tax

Every member state of the European Union has a value-added tax (VAT). The rates vary from 15 to 25 percent among the member states and among certain types of products. VAT recovery claims may be filed at least every three months or once a year, subject to country-specific restrictions. Companies may reclaim most of their VAT expenses such as those paid on:

• Business travel costs (car rentals, hotel lodging, meals, gas expenses, telephone expenses, etc.)
• Business operating expenses (jet fuel, maintenance costs)
• Marketing/advertising and professional advice such as that obtained through business consultancy services
• Trade fair expenses
• Goods, machines and equipment
• Exports into Europe and inter-European transfers of goods

Two websites with good information on VAT are the European Union VAT (www.eurunion.org/legislat/VATweb.htm) and the Federation of International Trade Associations (www.fita.org/marketplace/vat.html). The sites have links to information about VAT rates, legislation, proposals, refund procedures, and much more.

EU Structural and Cohesion Funds: Opportunities in the new Member States

Grants from the EU Structural and Cohesion Funds contribute to the economic development of the new EU Member States. This report outlines the decision-making process between the European Commission and EU Member States, the setting up of programs, the eligibility of U.S. companies, the co-financing possibilities with the European Investment Bank (EIB), and contacts in the local administrations. Emphasis is placed on the 10 new EU Member States, but the basic principles of EU-funded programs outlined here are valid for the entire European Union.
Around one-third of the European Union’s (EU) budget is spent developing the environmental, transport, tourism, medical, and information and communication technology infrastructure in the less developed areas of its 25 Member States. Grants (from the Structural and Cohesion funds) and loans (from the European Investment Bank) are the main instruments used to further the EU’s economic development policy. This International Market Insight (IMI) is designed to help U.S. companies better understand the process by which projects are funded and financed in Europe, and consequently to maximize the chances of participating in these projects. Although this IMI addresses opportunities in the 10 new EU member states of Central and Eastern Europe, in fact the information in the report applies throughout the entire EU.
Introduction
On May 1, 2004, the EU welcomed ten new Member States: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, and the islands of Cyprus and Malta. With the GDP per capita in these new member states roughly half the level of the prior EU 15, EU regional development funds play an important role in promoting economic convergence. The total budget of regional funds for the ten new Member States for 2004-2006 is €24.4 billion, which includes Structural Funds, the Cohesion Fund and miscellaneous Community initiatives.
U.S. companies interested in pursuing opportunities with EU funding support should familiarize themselves with the different funds and their associated rules. Companies should also be proactive in obtaining financing for projects, as funds are limited.

Upcoming Events

Please visit our events page for a full listing of local events and access to The Commercial Service’s extensive listing of international trade events.