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: 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 In God we trust! to recognize and remember how to behave and speak 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 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

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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. and aluminum. We believe these efforts will result in a mutually-acceptable resolution to the To help remedy the situation, the Greater problem in the near term. Kansas City Foreign Trade Zone (GKCFTZ)

The Greater Kansas City Foreign Trade Zone, Inc. (GKCFTZ) is a regional grantee of the national FTZ program. GKCFTZ has been the grantee since 1974 and was the first non-profit organization to be designated a grantee. GKCFTZ sponsors both Foreign-Trade Zone No. 15 in Kansas City, Missouri and Zone No. 17 in Kansas City, Kansas. Zone 15 serves FTZ needs in 22 contiguous counties in the western half of Missouri. Zone 17 presently serves 9 counties in metropolitan Kansas City, KS. pagepage 88 SeptemberJuly 2017 2018

Business/Trade Leads

IBNewsmag is making business and trade leads suppression products, engines, plate & extrusion, opportunities available to our readers. While the pipe & tubing, pumps, valves, gauges, fasteners, below appear to be more domestic opportunities, gaskets along with a variety of electrical products they have international implications. We will used in its on-going ship-building processes. continue to publish these current leads as appropriate.

Des Moines Transload Facility RFP

The Des Moines Area Metropolitan Planning Organization is seeking an operator to develop a rail transload facility in Des Moines with a company with knowledge of, and prior successful experience Photo courtesy: Jim Malouff with developing and operating rail transload facilities. Austal recently built the USS Kansas City which was Responses are due by 5pm, Tuesday, November 6, christened earlier this month. 2018. Small to medium-sized enterprises (SMEs) are For questions and additional information, contact encouraged to seek information about contracting Zach Young, Principal Planner at 515.334.0075, ext. and sub-contracting opportunities. Information: 208, or email at [email protected]. [email protected]

Austal Ship-Building Products & Services

AustalUSA in conjunction with General Dynamics, offers small business opportunities in fire

North Dakota’s Big Iron attracted international visitors from 10 countries North Dakota (Fargo) hosted over 50 international and Ukraine met with equipment dealers and agri- visitors from more than 10 countries earlier this business professionals to learn more about North month as part of the Big Iron International Visitors Dakota agricultural practices and technology, and Program, the portion of the Big Iron Farm Show con- purchase equipment. This year’s Big Iron program necting international agriculture equipment buyers received a record number of registrants; however a with North Dakota businesses. higher refusal rate of visitor visas for entry into the country kept the overall program numbers down. The Big Iron international visitors met with partici- pants meeting one-on-one with North Dakota com- “As far as cultural barriers, we’ve done very well in panies and attended the Big Iron Farm Show, farm breaking down any language differences and our tours and educational sessions. companies have a deep understanding of global markets and cultural diversity,” said Simon Wilson, Delegations from countries including the Democrat- Executive Director of the North Dakota Trade Office. ic Republic of the Congo, Liberia, Sri Lanka, Tanzania Big Iron International Visitors Continued on pg 9 September 2018 page 9

Practical Tips: Business Cultures Vary by Country Some are very strict. Others are not so much. Here 6. In Malaysia, wear dark suit with long-sleeved we’ve compiled a few key tips from a variety of shirt and ties. Be punctual for meetings because countries for you to consider when planning to do Malays and Indians are not as punctual as Chinese business. Malaysians.

1. In Japan, the hard sell approach does not gener- 7. In Belgium, business attire is conservative. ally work. Decision-making is generally lengthy Business cards are typically done with one side in and consensual. Dutch and the other in French. Of course you may bring your English cards as well. 2. In France, even though most well-educated people speak English, try to learn some basic 8. In Canada, do not treat it as a domestic US French phrases and apologize for not being fluent. market. Canadians are typically very polite, but direct in meetings. 3. In Argentina, personal relationships are impor- tant, so engage in small talk first before getting to 9. In South Korea, people are hardworking, intel- business matters. ligent and tough negotiators. Meeting punctuality is expected. 4. In Saudi Arabia, trust must be established before getting to business. Meetings may be 10. In Germany, be punctual, use titles and sur- interrupted by several people in the room discuss- names, avoid small talk and expect many detailed ing multiple matters. Be polite and respect their explanations of business matters. cultural habits. By Paul Mastilak 5. In Panama, avoid using first names in address- Intermark3, Inc. ing business people. If possible, use business titles and surnames. English is widely spoken.

Big Iron International Visitors Continued from pg 8 “But one thing you will never be able to eliminate is simply the fatigue that comes with international travel, which compels equipment dealers to have a very focused, valuable message during meetings with delegates.”

“We initially reach out to our in-country staff at US Embassies and Consulates in over 50 countries, seeking those countries and buyers who have a need for the kind of ‘Big Iron’ we specialize in here in the Upper Midwest,” said Heather Ranck, Director of the U.S. Commercial Service in Fargo, ND.

North Dakota company participants included agri- cultural equipment manufacturers and dealers, ag- riculture service providers, commodity storage and International visitors participate in a dealership tour processing equipment manufacturers, educational during the Big Iron International Visitors Program. institutions and research specialists. pagepage 1010 SeptemberJuly 2017 2018

PROFILE: Taiwan A Few Practical Tips for doing business in Taiwan

Taiwan is located off the southeast coast of China and north of The Philippines. The eastern two-thirds has rugged mountains and the west has flat to gently rolling plains. Mandarin is the official language and Taiwanese is also spoken. A significant minority language is Hakka. Government recently announced that English will become another official language in 2019. • Normal office hours (Monday through Friday) are 9:00 AM- 5:30 PM). • Business attire is conservative- dark suits for men and modest dresses or skirts for women (no pantsuits). • Gift-giving is essential. Simple gift for all participants. Better gift for high ranking person. Open gifts in private. • Place hands on lap when sitting. • Feet are considered dirty so don`t cross legs when sitting or move something with your foot. • Most important aspects of business culture are “face” and relationships. • Speak directly to most senior person even if his or her English is not good. • Accept invitations to events outside normal working environment. • Do not say anything or do anything that may potentially embarrass or bring shame to company. • Nod of head or slight bow is considered polite for first meeting. Handshakes are only for friends. Overview • Size: Slightly smaller than Maryland and Delaware combined • Population Distribution: Population is mainly on the coast with largest populations on the north and west coasts • Population: 23.5 million (July, 2017 est.) • Population Growth: 0.17% (2017 est.) • Literacy Rate: 98.5% (2017) • Government: Semi-presidential republic. September 2018 page 11

Taiwan is divided into 13 counties, 3 cities and 6 Sampling of Taiwan English Language municipalities News Websites • Capital City: • Taipei Times - general news - www.taipeitimes.com Economy • The China Post - general news - www.chinapost.nownews.com Taiwan has a dynamic capitalist economy dominated by manufacturing and very dependent • Taiwan News - www.taiwannews.com on exports. Major issues include low birth rate, Sampling of Taiwan Companies aging population and increased competition from •Foxconn - world`s largest contract electronics other Asian nations and, of course, relations with manufacturer - www.foxconn.com - New Taipei the Peoples Republic of China. City • GDP: $579.3B (2017 est.) • TATUNG - personal computers, TV`s, appliances • GDP Growth Rate: 2.8% (2017 est.) etc. - www.tatung.com - Taipei • Unemployment Rate: 3.8% (2017 est.) • - electronic manufacturing services - www.pegatroncorp.com - Taipei • Exchange Rate: 1 US Dollar= 30.78 Taiwan Dollars (9/13/18 - 1:14 PM) • Taiwan Semiconductor(TSMC) - semiconductors - www..com - Hsingchu • Labor Force: 11.78 million. (2017 est.) • Quanta Computer - world`s largest notebook • Labor Force Makeup: Agricultural - 4.9%, computer manufacturer (including LENOVO) - Industry -35.9%, Services - 59.2% (2016 est.) www.quantatw.com - Taoyuan • Major Industries: Electronics, communications and IT products, petroleum refining, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals International Trade • Total Exports: $344.6B (2017 est.) • Major Exports: Semiconductors, petrochemicals, automobiles/parts, ships, wireless communication equipment, flat displays, steel, electronics, plastics, computers • Major Export Partners: China (28%), Hong Kong (13%), US (11.7%), Japan (6.6%), Singapore (5.6%), South Korea (4.6%), Vietnam (3.3%), Malaysia (3.3%), Philippines (3%), Germany (2%) • Total Imports: $272.6B (2017 est.) • Major Imports: Oil/petroleum, semiconductors, natural gas, coal, steel, computers, wireless communication equipment, autos, fine chemicals, textiles • Major Import Partners: China (19.3%), Japan (16.2%), US (11.8%), South Korea (6.5%), Germany (3.5%), Singapore (3.4%), Australia (3.2%), Malaysia (2.8%), Saudi Arabia (2.6%), Indonesia (1.9%) • Top Taiwan Imports From the US: Machinery($7.7B), electronic equipment ($5.2B), aircraft ($1.8B), mineral fuels including oil ($942.9M), plastics ($917.9B), organic chemicals ($893.5M), other chemical goods ($856.9M), cereals ($842.4M), pharmaceuticals ($664.7M) Lantern Festival pagepage 1212 SeptemberJuly 2017 2018

• HannStar Display Corporation - monitors, • Continental Engineering Corporation – notebook displays and TV`s - construction - www.hannstar.com - Taipei www.continental-engineering.com - Taipei • Acer Inc. - computer hardware - www.acer.com • CPC Corporation - state-owned company - - New Taipei City petroleum, natural gas, gasoline - • Giant Manufacturing Co. Ltd. - world`s largest www.en.cpc.com.tw - Taipei bicycle manufacturer - www.giant-bicycles.com - Taichung Public Holidays 2018 • Formosa Plastics - petrochemicals, other • New Year’s Day/Republic Day - January 1 chemicals, plastics - www.tpc.com.tw - • Chinese New Year Eve - February 15 Kaohsiung • Chinese New Year - February 16-20 • ASIX – semiconductors - www.asix.com.tw - • Peace Memorial Day - February 28 • Lantern Day - March 2 • Edison Opto Corporation - www.edison-opto.com.tw - New Taipei • Children`s Day - April 4 • Cheng Sin Rubber Industry Co. - large tire • Tomb Sweeping Day - April 5-6 manufacturer - www.cst.com.tw - Yuanlin • Mother`s Day - May 13 • China Motor Corporation - motor vehicles • Dragon Boat Festival - June 18 including cars, trucks, RV`s etc. - • Father`s Day - August 8 www.china-motor.com.tw - Taipei • Mid-Autumn Festival - September 24 • China Steel - integrated steel manufacturer - • National Day - October 10 www.csc.com.tw - Kaohsiung • Double Ninth Day - October 17 • Wei-Chuan Food Corporation - canned pickles, • Republic Day - December 31 sauces, frozen foods etc. - www.weichuan.com.tw - Taipei by Paul Mastilak, InterMark3, Inc.

Ciy of Taipei, Taiwan