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In This Issue International Business News September 2018 Maxivolt – Protecting against power surges around the globe Mark Wingate, Chairman/CEO, Maxivolt In this issue: Tips on Varying Business Cultures/ NEW: Business-Trade Leads/ Country Profile: Taiwan We can handle your international shipping Held & Associates: 37 years of worry-free shipping. Deshonay Worley Deshonay “Dee” began working in the freight forwarding/import /export Field in 2005 as a temp. She went from being the receptionist to warehouse forklift driver, to warehouse lead, to shipping and receiving coordinator for importing of machinery spare parts for Northwest Suzuki in 2005-2010. Later she transitioned to an inter- national freight forwarder in Houston. This was the start of the importing/ exporting depart- Recipient of President’s E Award ment there. 2 years later she became operations for Export Service trainer until 2018 when she moved to Kansas City and Held & Associates in import customer service. Check out our web site with helpful international Call Dee about your next shipment – tools and links www.Held-Assoc.com Tel: 816-842-6701 816.842.6701, or email her at [email protected] Held & Associates, Inc., 1120 Erie Street, P.O. Box 34470, North Kansas City, Missouri 64116-0870 September 2018 page 3 TM IBNewsmag : cover image Maxivolt Surge Protectors, beginning on pg. 4 Practical Tips – Business Cultures Vary by Country 2 Held & Associates 3 Publisher’s Letter 4-5 Feature - Maxivolt 6 Maxivolt, continued, Transimpex The USTR says it is trying to conclude an agreement with Canada by the end of September to include it in with the 7 Foreign Trade Zone pending Mexico deal, but it appears that won’t happen. 8 Business/Trade Leads, ND Big Iron Instead, the administration is finalizing a bilateral agreement with Mexico only. For many of our readers who 9 Practical Tips for Proper Business Culture are small to medium-sized enterprises (SMEs) conducting international trade, Canada is a major exporter. 10 Profile: Taiwan In a limited survey with our readers, it became clear that 11 Taiwan, continued you prefer Canada be included with the modernized NAFTA agreement with Mexico, as opposed to separate 12 Taiwan, continued trade agreements with Mexico and Canada. At stake in the Canadian negotiations are dispute resolution, foreign ownership of Canadian media and dairy concessions. IBNewsmag We will keep you updated on negotiations with Canada Tel 816.616.7779 Fax: 816.472.0959 in our International Breaking News blogs, because by the [email protected] time you read this Canadian negotiations may change. 6655 Troost Ave., On another subject important to SME international trade, Kansas City, MO 64131, USA when working in a wide variety of countries being able to recognize and remember how to behave and speak In God we trust! in accordance with any specific country’s norms can be PUBLISHER/EDITOR: challenging at best. Frederick Baehner You could win or lose a deal in a moment’s lapse. DESIGN & PRODUCTION: Tom Gilland Take the time to prepare how you will interact with your www.GillandGraphx.com business partners in addition to the effort you put into your presentation. ADVISORY BOARD: James Malouff, Doris Ganser, Paul Mastilak pagepage 44 SeptemberJuly 2017 2018 Protecting against power surges around the globe A challenging task for a small company based in Amarillo, Texas, but this is what Maxivolt does. The company offers surge protec- tors for just about any voltage needed to ensure equipment is guarded against power surges, ex- porting to over 60 countries around the world. Because every electrical system is different, product selection, place- ment and installation are critical to the performance of a surge protec- tion system. Maxivolt determines which surge protectors are needed based on the immunity level of the specific electrical equipment to be protected. Its most active export markets are Canada, Mexico, several Central American countries, Germany and Australia. China is not among their export markets. Mark Wingate, Chairman and CEO of Maxivolt said, “We’ve had a policy not to sell into China for over 20 years.” And for good reason. Its patents will assuredly be violated and cheaper knock-offs flood the market. Mr. Wingate pointed out that they have actually had more problems from multi- Mark Wingate, Chairman and CEO, Maxivolt nationals copying their products. September 2018 page 5 Its major export surge protectors largely mirror its When it comes to competitive surge protectors, the domestic sales with its MV Series with 120 – 600 large companies such as GE, Eaton and Schneider VAC (voltage, amperage & AC power frequency), in offer a similar array of products here in the US and 15 varying configurations accounting for the major- to some extent in foreign markets. “Foreign markets ity of exports. “The MV Series is in demand because seem to have more limited access and exposure to it withstands erratic electrical environments with our type of technology which helps restrain com- hybrid circuits built with high quality components petitors,” claimed VP Wingate. To that point the and is handmade and extremely reliable,” noted Mr. company promotes the performance of its products. Wingate. “Our products have proven to perform time after time when competitive devices have not.” “About ten years ago, we expanded the line to include Because the company ships its product by air, it models for the different drives up costs. Other non-tariff barriers include voltages and system configu- geographical accessibility, safety concerns in some rations around the world,” countries, language and cultural barriers. While the pointed out Maxivolt Vice selling process may take a few weeks in the US, in President, Cris Wingate. many other cultures it may take several months. While the MV Series remains “Many other countries don’t seem to have the Cris Wingate, the most sought after, “We sense of urgency the US does, which draws out the Vice President introduced our GuardDog and ICP Plus lines that offer unique features to accom- modate foreign market demands.” “For example, it is common in Mexico and Central America for electrical panels to be recessed in cin- derblock or concrete walls. This creates installation complications we typically don’t have here in the US. The ICP Plus line was designed with that in mind as it can be installed in the panel instead of adjacent to the panel,” he continued. Maxivolt export business is mostly retrofit as opposed to new construction. International cus- tomers contact the company directly with their requirements overcoming sporadic experience with distributors. GuardDog series, WRG-400 International Business News pagepage 66 SeptemberJuly 2017 2018 selling process,” Noted VP Wingate. “In both the US and abroad, there is more reactive business than proactive business. My impression is that in foreign markets this is even more so.” Helping to improve the sales process, Maxivolt conducts on-site technology training and web conference train- ings for its end-users. As Mr. Wingate points out, “Gen- erally our export sales come from people seeking us out. Often this will be an industrial customer who has used similar product with little success.” For more information about Maxivolt and its products, visit www.maxivolt.com . IBN MV series, MV400 We are ready to Transimpex Translators-Interpreters- Editors-Consultants Inc. is standing by to assist you now! continue serving you with excellent service! We’d like you to know that all through the hot summer, Transimpex Translations continued to provide quality translations, interpreters and interpreting equipment, and we promise you that we will keep doing so, no matter how cold or hot it gets! Transimpex Translators • Interpreters • Editors • Consultants, Inc. 2300 Main St., 9th Floor, Kansas City, MO 64108 Tel: 816-561-3777 • Fax: 816-561-5515 www.transimpex.com September 2018 page 7 Unintended Consequences of Trade-Remedy Tariffs on Foreign-Trade Zones An unintended consequence of certain U.S. contacted the Congressional delegation trade-remedy tariffs recently implemented that represents the Kansas City region. has left foreign-trade zone manufacturers The GKCFTZ asked for their assistance to unexpectedly being assessed additional duties ensure manufacturers operating in FTZs on products manufactured and substantially are not subject to unjustified duties as a transformed in a U.S. foreign-trade zone result of the trade-remedy tariffs. Many of (FTZ). This could leave FTZ manufactures with the Congressional members responded and unwarranted additional duties upon entry of sent letters to the U.S. Trade Representative their goods into U.S. commerce. (USTR), asking them to review language of the Section 201 and 301 Tariffs that could The problem arises due to U.S. Census negatively impact manufacturers in an FTZ. guidance that FTZ manufacturers identify the country-of-origin of the highest-value foreign As a result of these and like-kind efforts by inputs on entry documentation for their zone- other FTZ organizations, representatives of manufactured products. This guidance is the National Association of FTZ’s (NAFTZ) solely for statistical purposes – not revenue met with USTR representatives on September collection. However, if the highest-value 6 to discuss this issue. The conversations input happens to be Chinese origin and were lengthy. Much of the time was spent the final product happens to be on the Sec. explaining various FTZ scenarios and 301 list of Chinese-origin products, CBP clarifying misperceptions. USTR was asked is using this information to treat U.S. FTZ- to issue guidance to USCBP to clarify the tariff manufactured and substantially-transformed treatment under Sec. 201 and 301 initiated goods as Chinese origin. Upon entry, the FTZ this year on articles produced in an FTZ and manufacturer is assessed additional Sec. include language from the revised Presidential 301 duties on the value of all foreign inputs, Proclamation for the Section 232 tariffs on steel regardless of origin.
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