International Trade

New York City is undoubtedly one of the most important centers of international trade in the world. Every day, all kinds of consumer goods, commodities and professional services are exported and imported by New York City companies and through the metropolitan area's air- and seaports. Statistics on this activity are available in the International Trade chapter of NYCdata compiled by the Weissman Center for International Business, Zicklin School of Business at Baruch College. In order to succeed in this complex arena of business, one must be well informed and prepared for many situations. The Science, Industry and Business Library (SIBL) either has or can bring one into contact with the resources and programs which one needs to research potential international business opportunities. These resources include:

  • handbooks about exporting and importing
  • directories of companies in the United States and around the world
  • industry sector and market research  databases for the United States and foreign countries
  • electronic indexes to articles published in current periodicals covering business and industry in specific countries, trends in specific industries and issues in international trade in general
  • trade statistics issued by the United States, many foreign countries and non-governmental organizations such as the United Nations and OECD
  • the USA Trade Online  database of U.S. export/import data produced by the U.S. Census Bureau
  • government sponsored export promotion programs
  • foreign trade commissions located in and around New York City

They can be categorized into a number of areas such as general background information, market research and country information, business leads and contacts, export/import regulations, shipping and logistics, finance and assistance organizations. On the following pages you will find such resources arranged by topic to help you answer many of the frequently asked questions in the field of international business. These guides are not exhaustive, so please visit the Science, Industry and Business Library for further assistance in finding the information you need.

For the latest trade news try the following sites:

International Trade Basics

If you are contemplating starting an international business venture, for instance, by exporting or importing a product or service, you may want to read some general works discussing the potential profits and pitfalls of conducting international business. SIBL holds a number of basic guides and handbooks.  These include:

To find other similar titles in the library’s collection, browse the reference shelves in *R-SIBL HF1379  through *R-SIBL HF1416 or the circulating collection in 658.8 or 658.84.  Search the following subject headings in the online catalog:

  • Export marketing
  • International trade
  • International business enterprises

On the internet, the following sites discuss issues involved in exporting:

Foreign Market Research and Trade Statistics

In order to sell a product or service, there must be consumers who want to buy it. Market research will help you determine how likely you are to find buyers for your product or service. Market research can help you find the largest or fastest growing markets for your product or service, and market trends, outlook, and practices in a particular place.

Industry Sector and Market Research Resources

Research data on U.S. consumer markets is often difficult to find; market research reports are expensive and most often not available in a public library. Foreign consumer market data is even harder to come by.  Industry sector reports for the United States and foreign countries are more readily available.  Several of the electronic resources at SIBL can help:

  • Mintel Oxygen Academic
    Research reports on the U.S. consumer market useful for those who are interested in importing foreign consumer products.
  • First Research
    U.S. industry sector reports which include past and current financial performance, trends and forecasting, and industry ratios.
  • Plunkett Research Online
    Company profiles and industry sector analisys for the United States.
  • IBISWorld
    U.S., China and global industry sector reports including current financial performance, future outlook and risk analysis.
  • Business Monitor Online (BMI)
    Research reports on over 175 global markets focusing on major industry sectors. Includes political, economic and business environment risk reports and SWOT analysis for each market.
  • Emerging Markets - Internet Securities
    Offers extensive current news, economic, industry, and financial information on many emerging market countries such as Brazil, Czech Republic, India and Vietnam.
  • Factiva
    Searchable full-text and abstracting resource provides global content, including Dow Jones and Reuters newswires and The Wall Street Journal. Includes multilingual content covering 8,000 publications from 118 countries in 22 languages. Sources include general business and industry publications, newspapers, trade journals, newswires, company reports, radio and television transcripts, and images.
  • Business Source Premier
    Index of articles published in close to 2,500 business periodicals.  Includes MarketLine industry profile reports for the United States and foreign countries.

On the web, there are some U.S. government and non-government sites which provide further foreign market insight-

Trade Statistics Resources

In addition to market research reports, export and import trade statistical data of particular products and commodities can yield information about the potential of a target market. Researching the export/import statistics for your product or commodity also provides hard data for use in drafting a business plan if you intend to seek financing from a bank or other source.

The Science, Industry, and Business Library offers access to three electronic databases of export/import statistical information produced by the U.S. Department of Commerce and the U.S. Bureau of the Census. They are available by reserving a workstation in the Electronic Information Center at SIBL. These databases are:

  • USA Trade Online
    A product of the U.S. Department of Commerce, the detailed statistical data found within this database is current and will help you to determine how much of your product is either being exported from the United States and to where or from where the product is being imported into the United States. Reports can be created based on commodity and time period and can be further limited by foreign country, U.S. port and can be ranked by decreasing value. Reports either can be printed or exported to a spreadsheet.
  • U.S. Exports of Merchandise
  • U.S. Imports of Merchandise

Export and import commodities are often categorized in these databases by Harmonized Tariff Schedule (HTS) number. These numbers are the most precise way of identifying your product. While it is possible to search for a product by key word, it is often more precise and efficient to use the HTS number. You can find these in print in the Harmonized Tariff Schedule of the United States (available in the library) and on the Internet from the U.S. International Trade Commission.

Other freely accessible trade data products on the web include-

  • Trade Stats Express
    U.S. International Trade Administration database of U.S. national export and import data and U.S. state level export data updated regularly either quarterly or annually.
  • FT-900
    Monthly report of the U.S. International Trade in Goods and Services released by the U.S. Census Bureau.  The full report is available in a variety of file formats or can also be accessed by individual chapters, or Individual Exhibits, such as U.S. Services by Major Category-Exports and Exports and Imports of Goods by Principal End-Use Category.  An historical archive of the reports are available back to the early 1990s.  Click on Country/Product Data at the top of the page for other more specific reports.
  • UN Comtrade
    United Nations database of trade between member countries.
  • UN International Trade Statistics Yearbook
  • Trade Data Online
    Government of Canada (the highest ranking foreign trade partner of the United States) database of export/import trade statistics on the national and provincial level.  Also includes U.S. trade data published by the U.S. Census Department.

Many countries make their national statistics available online. The U.S. Department of Labor, Bureau of Labor Statistics provide links to the central statistical offices of many countries.

Finding Trade Leads and Business Contacts

Once you have decided that there is a market for your product or service, you must then find actual buyers. Methods of identifying buyers include trade shows, trade missions, direct mail campaigns, and advertising. You may eventually need an in-country presence through a representative or distributor. Exporters may eventually need an in-country presence in their foreign market through a representative or distributor. The library can assist you in locating business leads and contacts.

Trade Shows

There are many trade shows, both in the U.S. and abroad, where buyers and sellers can come together to network and sellers can display their wares.

Trade Leads

  • Panjiva - Global sourcing tool to find suppliers of products worldwide, learn who their U.S. customers are, and find shipment and trends data for imports and exports.
  • Business USA - U.S. Government website for general business information which includes a current database of international trade leads.
  • FI TA Tradehub – The Federation of International Trade Associations’ directory of purchase tenders from worldwide customers.  Requires login to view this database.

Business Contacts

SIBL subscribes to some online directory databases that can help to locate business contacts abroad.

International Sales Contract Basics, Terms of Sale and Methods of Payment

International trade means that business is transacted between vendors and customers located in different countries with their respective differences in law.  The United Nations Convention on Contracts for the International Sale of Goods (CISG) governs all contracts for the international sale of goods between parties whose principal places of business are located in the United States and other countries participating in the convention.  The CISG has been adopted by most nations with developed economies and currently applies to two-thirds of all world trade.  While it is possible to compose an international sales contract on your own, it is advised to consult an international trade attorney for this task.

There are a number of books covering international sales contracts such as-

A proper international sales contract should also clearly state the agreed upon terms of sale, that is, the point at which the title to the goods and the financial responsibility thereof devolve from the vendor to the customer.  Such terms are usually specified by the use of Incoterms such as EXW, FAS, FOB, CFR, CIF, etc. the definitions of which can be found in Incoterms 2010 published by the International Chamber of Commerce.  Also published in print-

Methods of payment are also spelled out in the contract whether the customer agrees to pay by open account, letter of credit, documentary collections or payment in advance as well as other less common methods.  This is normally arranged through your own commercial banker, however, it is important to understand all the various accepted and customary methods of payment for international business transactions.  Export.gov has a section on Methods of Payment.  80% of all international trade is conducted via open account.  A letter of credit, often abbreviated as L/C, is the most frequently used method of payment between international buyers and sellers when there is no prior history of transactions between the two parties.  According to the site, it is a “document issued by a bank … stating its commitment to pay someone a stated amount of money on behalf of a buyer so long as the seller meets very specific terms and conditions.  Letters of credit are more formally known as "documentary letters of credit.”

Some of the library’s reference titles include:

Exporters can further mitigate the risk of payment default by their foreign customers by purchasing trade credit insurance which is offered by serveral international insurance companies such as AIG, Coface, Eurler Hermes, Zurich among others as well as the Export-Import Bank of the United States.  

International Trade Regulations

When conducting business between the United States and another country, you most likely will have to contend with a multitude of national tariffs, regulations, and documentation requirements of both countries.

Exporting

Generally speaking, if you are the exporter, you are responsible for shipping your product abroad by employing the services of a freight forwarder.  It is the responsibility of your customer, the importer, to deal with import regulations and paying any customs duty in the import country.  He or she usually employs the services of a customs broker to handle these details.  However, if you are exporting a product sensitive to national security, it is your responsibility to be aware of any U.S. export restrictions.  Furthermore, despite the fact that it is not usual for the exporter to be liable for import regulations, it would not be a bad idea to be aware of them for your intended export country.

Finding import regulations of foreign countries is often quite difficult to uncover, however, SIBL holds a limited number of resources. There are also some official and unoffical websites that cover this area as well as U.S. export regulations.

Importing

As an importer you are responsible for knowing all about U.S. import regulations and customs duty.  An experienced customs broker can help immensely with this task.  See the next chapter on Shipping and Logistics for information about finding customs brokers.

Shipping and Logistics

When exporting or importing, you will likely need the assistance of third parties to help you complete your business transaction. They have experience in shipping to and dealing with officials and agents in your intended import country.

Freight Forwarders

The process of actually moving your goods overseas can be quite complicated. You must be concerned with packing, labeling, documentation, insurance, foreign and, sometimes, domestic regulations. Freight forwarders can help with all this and determine the most economical means of shipment, whether by land, air or sea.  While you should understand the logistics of export or import, you will almost certainly need the services of a freight forwarder who will handle most of the details for you.

Customs Brokers

Once your shipment has arrived in the port of entry, the services of a customs broker are necessary, but not mandatory, to get them through customs by handling the necessary paperwork, documentation, payment of duty, etc.

Your local chamber of commerce, trade associations, international departments of banks or an international trade specialist can help direct you to reputable freight forwarders or customs brokers. As a start, you can also consult several directories available at the library:

International Trade Finance

If you are a businessperson, you probably already have a relationship with a commercial bank which should be the first source of financing you use.  The New York Small Business Resource Center’s Business Owner's Manual has a general section on financing, which is also applicable to financing an import or export business. Listed below are a few Internet sources which may be of particular interest to an exporter:

International Trade Assistance Resources

There are many New York City area and U.S. Government assistance programs that exist to help the small businessperson cultivate his or her international business venture.

U.S. Federal, New York State and New York City Assistance Organizations

  • SCORE, sponsored by the U.S. Small Business Administration, brings volunteer business executives together with entrepreneurs and small business people in order to give them guidance and advice about their small businesses. The New York City chapter can help you with all types of international business matters such as determining fertile markets for your product or service, finding business partners and distributors in foreign markets, or finding financing for your business venture.  In addition to one-on-one counseling, SCORE offers programs and seminars, many of which are related to international trade.  SCORE representatives are available at the Science, Industry and Business Library for one hour counseling sessions by appointment.  They can be reached at the library at 212-592-7033. SCORE can also be contacted at their New York headquarters: 26 Federal Plaza (Duane St. at Broadway), Room 3100, New York, NY 10278.  Tel: 212-264-4507.
  • New York City U.S. Export Assistance Center offers a wide range of one-on-one counseling services helping businesses to export their products and services. They can help identify foreign markets, put you in touch with foreign distributors, agents, and importers, lead you to SBA and Export-Import Bank financing and offer other kinds of general support.  The New York office is located at 20 Exchange Place, 40th Floor, New York, NY 10005.  Tel: 212-809-2675.
  • Global NY (Empire State Development) – Offers, among other services, export marketing counseling for either entering or expanding in foreign markets.
  • New York City Economic Development Corporation (NYCEDC) - Promotes New York City as an attractive place for domestic and foreign entrepreneurial talent to locate their businesses.

Other Assistance Organizations