Questions:
Question 1
E-Activity=
• Use the Internet to research a publicly traded company that exports to at least one foreign country. Focus on any export challenges the company may be facing. Be prepared to discuss.
"Best Practices" Please respond to the following:
• From the e-Activity, determine which of the issues discussed in Chapter 9 would present the greatest challenge to the company you selected. Provide specific examples to support your response.
• For the same company, recommend one best practice not already mentioned in Chapter 9 that would help the company address the challenge you identified. Explain your rationale.
Quesion 2
From the e-Activity, determine which of the issues discussed in Chapter 9 would present the greatest challenge to the company you selected. Provide specific examples to support your response.
For the same company, recommend one best practice not already mentioned in Chapter 9 that would help the company address the challenge you identified. Explain your rationale.
The company that I researched on the internet is a company called ACX Pacific Northwest. This company specializes in exporting forage and roughage products; some of their major export areas include Japan, China, Korea and various other Asian markets. They are partnered with a company called Al Dahra Agricultural Company, LLC located In the Middle East with this particular location this company is able service areas in the Middle East as well as North Africa (ACX Pacific Northwest, 2015). One of the potential problems this exporting company could face is routed export transactions. In this type of transaction the FPPI permits a US agent or representative to facilitate a transaction on their behalf. This responsibility encompasses filing paperwork with the AES such as the EEI. Another challenge this company could face is compliance this company should always conduct due diligence as well as reasonable care to insure that they countries they are exporting to are not on any of the governments non exporting lists.
To answer the second part of the question a "best practice" strategy that this company could implement in order to avoid the challenges above would be to devise a company export compliance program. In this program the Compliance Officer would be the go to person with any questions concerning the program. In addition employees from top management down should be trained periodically in compliance. Another important detail is top management should support the program 100 percent in order to maximize the effort (Cook, Alston, & Raia, 2012).
Reference: ACX Pacific Northwest. (2015). Keep up with ACX Pacific Northwest, Inc. Retrieved fromhttps://www.linkedin.com/company/acx-pacific-northwest-inc
Cook, T. A., Alston, R., & Raia, K. (2012). Mastering import & export management (2nd ed.). New York: American Management Association.
Question 3
"Export Compliance" Please respond to the following:
• The textbook author states in Chapter 10, "Export documents are import documents." Explain what is meant by this statement and how it applies to the purchasing function.
• Select and analyze two functions of the Bureau of Industry and Security, and discuss how they represent the overall mission of the agency.
Question 4
Export Compliance" Please respond to the following:
• The textbook author states in, "Export documents are import documents." Explain what is meant by this statement and how it applies to the purchasing function.
In order for the exporting process to go smoothly the exporter must ensure that all factors are considered and that all documentation is correct prior to the start of the export process. If export documentation is missing or incomplete the import process cannot be completed. As the textbook states, factors such as: price and payment, competitive pressures, forwarding and carrier option, loss and damage possibilities, buyer experience, destination, customs requirements in point of destination, and economic and political status must all be evaluated. Incoterms must be understood in order to define buyer and seller responsibilities. Export documentation is key to a successful import process. Everything from invoices to licenses to certificates must be correct right down to spelling and mechanics.
• Select and analyze two functions of the Bureau of Industry and Security, and discuss how they represent the overall mission of the agency.
Two functions of the BIS are enforcing Export Administration Regulations (EAR) and coordinating the Commerce Department's homeland security activities. These functions both relate to the BIS's mission to advance U.S. national security. By enfocing EAR the BIS is ensuring all U.S. origin parts and materials are meeting requirements for exportation. This task ensures that no items that affect national security are exported without proper controls. By coordinating homeland security activities the BIS is enhancing national security through protection of assets.