BUYUSA.GOV -- U.S. Commercial Service

Midwest

Frequently Asked Questions

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1. I want to export my "U.S. made" product(s)... where do I start?
The best place to start is at your nearest U.S. Export Assistance Center. Just click on Home to get to a listing. Otherwise, the U.S. Department of Commerce's Trade Information Center is your next stop for information about all federal export assistance programs, information on the nuts and bolts of exporting, export financing, and country and regional market information. Contact them to receive personal export assistance from a trade specialist Monday through Friday 8:30 a.m. until 5:30 p.m. eastern time. Call 1-800-USA-TRADE (872-8723).

2. How do I know if I need to get an export license from the Department of Commerce?
The Department of Commerce, Bureau of Industry and Security (BIS) is the primary licensing agency for dual use exports (commercial items which could have military applications). Other departments and agencies have regulatory jurisdiction over certain types of exports and reexports. For example, the State Department licenses the export defense articles and services

Of those exports and reexports subject to BIS' Export Administration Regulations (EAR), a relatively small percentage require the submission of a license application to the Department of Commerce. License requirements are dependent upon an item's technical characteristics, the destination, the end-use, and the end-user, and other activities of the end-user. You will need the following five facts to determine your obligations under the EAR: What is the item you intend to export or reexport; Where is it going; Who will receive it; What will they do with it; and, What other activities are they involved in? Export control guidance is available at: http://www.bis.doc.gov/Licensing/exportingbasics.htm.

The first step in determining your license requirements under the EAR is to classify your product by determining its Export Control Classification Number (ECCN) on the Commerce Control List (CCL). More information on Commodity Classifications is at: http://www.bis.doc.gov/Licensing/facts2.htm, or if questions remain, please call the Export Assistance Center Chicago at 312/353-8040.

3. When do I fill out a Shipper’s Export Declaration?
When a shipment is over $2,500 or when an export license is required (regardless of value), a SED is necessary. This includes shipments by US post, as well as shipments to or through the Virgin Islands and Puerto Rico. This information is used by the Foreign Trade Division of the US Census Bureau to track US export statistics (import data is collected by US Customs). The only country that does not need a SED is Canada. If your product requires an export license, you are now required to submit your SED electronically through the Automated Export System (AES). It might be a good idea to start filing your SED electronically now, as it saves us and you money, and will be required for all shipments in the near future.

4. When is NAFTA certificate necessary?
A NAFTA certificate is never necessary, but if your product has a reduced tariff under NAFTA, it is in your interest to go through the NAFTA certification process. Since we have MFN trading status with both Mexico and Canada, your tariff rate might already be 0%, without having to go through NAFTA certification. If your products are used by other US manufacturers who export to Canada and Mexico, they may request that you certify your goods so that they can in turn get preferential tariff treatment under NAFTA.

5. What’s the difference between a Schedule B and HTS number?
All import and export codes used by the U.S. are based on the worldwide Harmonized Tariff System (HTS). The HTS assigns 6-digit codes (known as the HS number) for general categories that are used worldwide. These 6-digit codes are broken down by Chapter (2 digits), Heading (4 digits) and Sub-heading (6 digits). Countries that use the HTS are then allowed to further define their commodities at a more detailed level, usually 8-10 digits, but still using the universal 6-digit number to start with. The United States uses this system as a foundation for determining both Schedule B numbers and the Harmonized Tariff Schedule of the United States (HTSUS), which are nearly identical. The Schedule B number (reported on your SED) is used by Department of Commerce's Foreign Trade Statistics office to generate export statistics. The HTSUS number is used by U.S. Customs in the import process.

6. Do I need to register for an international copyright?
An "international copyright" does not exist; however, it is recommended that you register for a copyright in the U.S. as well as any country that you will be doing business in. A comprehensive list of all of the national copyright offices throughout the world is available at: http://www.wipo.int/directory/en/urls.jsp.

7. How can I protect my intellectual propety rights in China? How can I determine if a Chinese business practice or offer is legitimate?

Protecting Your Intellectual Property Rights (IPR) in China:

http://www.buyusa.gov/china/en/ipr.html

Seven "Warning Signs" of a Chinese Scam: http://chinafrauds.com/seven.html

Suspicious Chinese Business Practices:  http://www.export.gov/china/Exporter_Alert_SCBP.pdf

8. What assistance is available for exporters of food and agricultural products?
Food Export Association of the Midwest USA, 309 West Washington, Suite 600, Chicago, IL 60606 USA, Phone 312.334.9200, Fax 312.334.9230, Email: info@N0SPAM.foodexport.org , Website: http://www.foodexport.org/us%5Ffood/.

Food Export Association offers a variety of programs and services to help exporters of midwestern food and agricultural products begin or expand their international sales. For a list of services available to assist U.S. exporters in Exporter Education, Market Entry and Market Promotions, please refer to their website.

Illinois Department of Agriculture, Bureau of Marketing and Promotion, P.O. Box 19281, State Fairgrounds, Springfield, IL 62794-9281, Phone 217-782-6675, Fax 217-524-5960, Email: pio@N0SPAM.agr.state.il.us , Website: http://www.agr.state.il.us/marketing/intmrkt.html

The Illinois Department of Agriculture supports international market development and product promotion for the state's food and agribusiness sectors. Headquartered in Springfield, the department maintains offices in Hong Kong and Mexico City to promote Illinois products worldwide. The department maintains close contacts with the U.S. Department of Agriculture's Foreign Agriculture Service to help Illinois firms gain access to federal marketing programs. Illinois' Agriculture Department is a member of the Food Export Association of the Midwest USA (formerly MIATCO), which helps coordinate market development programs for processed food products. The department also works in partnership with many commodity organizations' market development programs. For a full description of their program and services, please refer to their website.