Also in this issue: How To Prepare and Ship Your Container Distribution Key to President’s Excellence in Export Award Winners Heartland Exports and Imports

International Business NewsJuly/Aug 2013

Kansas City Southern Railwaydispatches commercial shipping through Mexico to port

Held & Associates:2013 Recipient of President’s Excellencein Exports Award for Export Service

ISF – Importer Security Filing requirements now being fully enforced by US Customs. Let Held & Associates pick up your Import ocean cargo using terms of sale FOB foreign port or exworks from anywhere in the world, and we will transmit the ISF to DHS before the ship sails; comply with the regulation; and avoid the $5,000 -10,000 fines. The 10+2 ISF requirement is potentially a far greater liability to US importers than the Customs entry process, and we can help you limit that liability by controlling your shipments before they are loaded onboard the vessel bound for the US.

Please note our contribution to the HOW TO EXPORT – “How to Prepare and Ship Your Container,” on pg.. 6 of this issue of IBNewsmag.

CALL ANDREA OR PAT (816) 842-6701 ext. 215 or 212 TO SET-UP AND CON-TROL YOUR IMPORT CARGO NOW!

Held & Associates, Inc., 1120 Erie Street, P.O. Box 34470, North Kansas City, Missouri 64116-0870

www.held-assoc.com

Andrea Tarry Import Operations Manager, Held & Associates Inc.

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Expert in US Customs clear-ance technical matters and other government agency requirements – FDA, EPA, DOT, USDA, FCC etc.816-842-6701 x 215

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Let us handle your LCL shipments from the UK in our UK ocean consolidation; or let us build a consolidation for your company – avoid LCL costs, pay full container price.

Advertorial

http://www.held-assoc.com/

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• First Inland FTZ in the U.S.• Largest FTZ in the U.S. • Strategic Location for Freight Movement• Fast-Track Process for New FTZ Sites

Greater Kansas CityForeign Trade Zone, Inc. Held & Associates Inc.

Contents / Foreign Trade Zone, Inc. Kansas City Southern Railway

How to Ship a Container Transimpex Nexans AmerCable & Holmes Corporation

Heartland Index / Americanallia

ExpressDeliveries/KCIAirCargoTrafficUp

About IBNews / 10 Proven Tips for Int’l Sales

Kansas City Aviation Department

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IBNewsmag TM: in this issue

COVER STORY This edition features shipping to Mex-ico by Kansas City Southern Railway and its subsidiary KCS de Mexico.

See page 4.

International Business News

page 3 July-Aug 2013page 3 July-Aug 2013

he Kansas City Southern rail sys-tem, which includes The Kansas City Southern Railway Company

in the U.S. and Kansas City Southern de Mexico in Mexico, through its Laredo gateway, offers premier rail transporta-tion for major manufacturing and con-sumption markets in Mexico.

This North American rail network ex-tends even further through the three major ports that the KCS system serves in Mexico’s Gulf and Pacific Coasts, in-cluding the southwestern Mexican deep-water port of Lázaro Cárdenas.

There was a time when many shippers cringed at the thought of sending cargo into and through Mexico. Stolen goods, lost trucks, and uncertain delivery times clouded intended safeguards in moving goods there. That was before KCS pur-chased and remade a key Mexican line into a well-tuned carrier.

The KCS rail network passes through the Mexican border seamlessly - and se-curely - achieving a remarkable 99.98% theft and claim free record in Mexico on its journey to interior points and to the ports it serves.

Kansas City Southern won the Mexican railway concession against larger bidders back in 1997, when the betting was on the east-west lanes to grow its network with the north-south NAFTA railway.

Moving a container from Kansas City to the Mexican border To move a container of freight from

Kansas City to Mexico, a customer first loads its container on a drayage truck for KCS’ intermodal center at the former Richards-Gebaur airbase. Simultaneous-ly, the KCS customer requests service in the form of a waybill, or more commonly known as a bill-of-lading, created in the KCS operating system allowing transport of the container on the KCS line.

The container is checked at the gate by way of the KCS automated system, and moves into the holding area, where the driver drops off the container and chas-sis. At loading time, a KCS yard hos-tler hooks up the chassis and moves the container into position next to a waiting train. An intermodal crane hoists the container from the chassis and onto the rail car, one of two north-south trains that day.

Some 150 trucks make their way in and out of the logistics park each and every day, along the 2-mile stretch of former runway, now the rail loading siding.

The trip to the Mexican border takes a day, while the commercial invoice, way-bill and other documents arrive at KCS’ border administrator, Transport Cargo Services (TCS). TCS creates a “pedimen-to,” which is a document sent to Mexican Customs allowing the container to flow through Mexico on its way to the port.

As the train approaches the border at Lar-edo, U.S. Customs reviews and confirms that all is in order, providing validation of clearance for that pedimento to move across the border, and clears the train to move forward. There is no exchange of locomotives at the bridge as there is with trucks. The process is simple. Once at the bridge, a Mexican crew takes over the locomotive and continues the trip to des-tination.

What happens to make the ship-ment secure in Mexico?Each and every container crossing the border undergoes multiple gamma ray inspections, and random inspections to

T

© Kansas City Southern

The Kansas City Southern Rail System Connects World Markets Through Mexico

IBNewsmag TM

July-Aug 2013 page 4

IBNewsmag

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OK

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COLIMA

Mena

NashvilleDeQueen

Palmer

New Albany

Hebbronville

Matamoros

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Pedro C. Morales

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Victoria

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Morelia

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Brownsville

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Topeka

Kansas City

Galveston

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Port Arthur

Beaumont

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Laguna Seca

AguascalientesArellano

San Luis Potosí

Guadalajara

LázaroCárdenas

PueblaCiudad de México

Ajuno

MonterreySaltillo

Oriental

Wylie (future)

Dallas

Teotihuacan

Victoria

Rosenberg

Corpus Christi

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WestlakeDeQuincy Baton Rouge

New Orleans

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Shreveport

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Bayou Pierre Winn�eld

Vicksburg

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Route Map

insure that there is nothing inconsistent with information on the documents.

KCS de Mexico implements a balanced mix of technology and people to achieve real-time monitoring of the load and its security. It employs over 1,200 security agents across the entire Mexican rail net-work to provide added security, while its multi-layered filtering security model detects any irregularities throughout the network.

Once the train and the customer’s con-tainer reach the port of Lázaro Cárde-nas, the customer checks that the waybill is updated with correct vessel, voyage, equipment numbers, beneficial owner and final destination.

Finally, the container is removed from the rail car and moved to a holding area until all documentation is completed and terminal fees are paid. If they are not, TCS is not able to obtain release of the container to the vessel.

The customs broker then closes the pedi-mento, informing the customer that the container’s bond is closed and the con-tainer is released and ready for loading onto the vessel.

The KCS network offers a great alterna-tive via Mexican ports for large volume shippers who are seeking additional gate-ways to meet their supply chain require-ments.

IBN

This article written in cooperation with Kansas City Southern. More can be seen at www.kcsouthern.com.

International Business News

page 5 July-Aug 2013

http://www.kcsouthern.com

3. Are there special export licenses, regu-lations required? For the EU, there are minimal regulations.

4. For the EU and elsewhere, it is impor-tant to have the CE Mark. This may take several months, but is required. Many new-to-export think they can get a CE mark in a day or so, because they had not considered it. Their freight forwarder (FF) should have specified that the EU would need it.

5. Another question to consider in plan-ning - is it an allowable product for that particular country? The EU customer is responsible to know and obtain the im-port license if required.

6. Is it marked and packed properly? Again, the FF should help the shipper plan for these issues.

7. What are the official Incoterms? Spec-ify your terms on your Pro Forma invoice and on your commercial invoice so there is absolutely no misunderstanding. Sell-ing CIF port discharge is typically best for exporters. Always specify to be paid in U.S. dollars. If delivered to the customer’s door, then determine who is responsible for duties and taxes.

8. A Value Added Tax (VAT) is the cus-tomer-importer’s responsibility requiring him to think it through, whether it could increase or decrease prior to arrival.

9. Getting paid is a key issue. The L/C is the standard, yet requires much docu-mentation, much of which may not be needed. The DDP (cash for documents terms) is gaining in popularity because it doesn’t require so much paperwork, but more trust between the parties is impor-tant because the documentation on what the customer expects is not spelled out as well as the L/C.

10. For ocean freight, Held often rec-ommends Cost, Insurance and Freight (CIF) because it transfers risk to the buyer once the goods are loaded onto the vessel, and the seller-shipper controls the freight and delivery. At any rate, the ship-per should insure the cargo. If no Inland Marine cargo policy, instruct your FF to insure against all risks, no deductible, warehouse to warehouse including Gen-eral Average coverage.

Click here to continue reading the com-plete article online at IBNewsmag.com

Information provided by Rick Held and John Romp of Held & Associates.www.held-assoc.com.

f you are new to export, or have limited experience

with shipping, there are cer-tain things that you, the sell-er-shipper needs to know. To begin the process you should agree to work with an experi-enced, competent freight for-warder (FF), who is willing to partner with you through the whole process from the quo-tation stage through getting paid. Your FF, international banker, and your shipping de-partment, are all key to your export success. 1. The first step in export shipping is planning for containerization. How will your products fit into a standard 20 or 40 foot container, versus break-bulk or even less than container (LCL), is truly impor-tant when planning. It may require astute engineering in the manufacturing process to fit the product into a container. That and planning to sell more units so as to fill a container rather than a LTC load.

For example, one Heartland exporter manufactures a piece of machinery that is just an inch or two too wide, and can only fit 10 into a 40-ft con-tainer. If just a little less wide they could squeeze 20 units in a 40-footer and cut their freight bill by half.

2. Know precisely who your customer/consignee is, which must be shown as Consignee on your bill of lading. Ask your customer for their preferred Cus-toms Broker contact information. Their broker should be named as “Notify Par-ty” on the ocean lading to expedite Cus-toms entry and delivery.

I

How To Prepare and Ship Your ContainerThe First in a Series of How to Export

IBNewsmag TM

July-Aug 2013 page 6

http://ibnewsmag.com/how-to-ship-a-container/http://ibnewsmag.com/how-to-ship-a-container/http://www.held-assoc.com/

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n our last edition of IBNewsmag, we featured four of the six compa-nies in the Heartland that received

the prestigious President’s Excellence in Exports (E) award this past May. Two ad-ditional outstanding

companies receiving the award include Nexans AmerCable, Eldorado, AR, and the Holmes Corporation, Eagan, MN.

Nexans AmerCable is a global leader in cable and cable assembly so-lutions for equipment operating in ex-tremely harsh environments. Nexans AmerCable, with some 400 employees, is owned by Paris-based Nexans Corpo-ration.

Nexans AmerCable manufactures highly engineered jacketed power, control and instrumentation cables for the oil and gas, mining, industrial and renewable energy markets. The company exported cables to 32 countries in 2012 and de-rives almost 50% of its total sales from exports. Its primary export is trailing ca-bles for surface and underground mining equipment in sizes ranging from 5,000 up to 25,000 volts.

“We export most of our mining cables to Canada, China and the prominent min-ing countries of South America, such as Chile, Peru and Colombia,” said Nexans AmerCable spokesperson, Tom Rice. See www.amercable.com for more information.

Holmes Corporation partners with professional associations like the Society for Human Resource Manage-ment (SHRM), the Institute of Internal Auditors (IIA), and the Association for Operations Management (APICS) to de-velop and distribute certification exam preparation courses to some 160 coun-tries through a large partner distribution network that consists of training partners and the associations’ international affili-ates or chapters.

The company relies on these distributors for their understanding of the require-ments of local employers and educating certification candidates. They assist can-

didates with the certification process and provide local marketing and live informa-tion sessions.

“Our overall business growth has averaged 8% since we began to heavily export our educational courses in 2004, while the percentage of our revenue from exports has increased from 7% to 32%.” Erik Hinkie, Holmes CIO, pointed out, “Ex-porting our educational courses touches every aspect of our business, helping us ride out domestic sales declines from the past recession, and fueling our growth over the last five years.” It is this extraordinary export growth of its educational materials that earned Holmes the President’s Excellence in Ex-port Award. See www.holmescorp.com for more information.

I

Nexans AmerCable Offshore Bridle Systems

HOLMES CORPORATIONAdvancing Professionals. Delivering Results.

Holmes Corporation APICS CSCP Learning System

Distribution Key to President’s Excellence in Export Award Winners

IBNewsmag TM

July-Aug 2013 page 8

http://www.amercable.com/http://www.holmescorp.com/

International Business Development ForumPriority Logistics is a proud sponsor of the Kansas City delegation.

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Heartland new export orders slipped nearly three percentage points in July to a no-growth reading, according to the latest survey of purchasing man-agers in the Midwest.

July new export orders fell to 50.0, down from the 52.9 figure in June, while imports ratcheted up to 53.6 from 52.9 in June.

“New export orders are trending downward to a just-even reading,” said Ernie Goss, Ph.D., MacAllister Chair & Professor of Economics at Creighton University. “For imports, continued slow but positive growth for regional manufacturers boosted them slightly for the month.”

IBN

Creighton University’s Professor Ernie Goss

Heartland Exports Stumble in July. Imports Growing Faster.

The Heartland International Trade Index is exclusive to IBNewsmag, and is a leading economic indicator measuring monthly changes in new export orders and imports based on a monthly survey of Institute of Supply Manag-ers for the 9-state region of Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, Oklahoma, North and South Dakota.

Heartland InternationalTrade Index

2013 July June

50.0 52.9

53.6 52.9

HEARTLANDEXPORTS

HEARTLANDIMPORTS

page 9 July-Aug 2013

913-754-2065dave.burdick@prioritylogistics.net

www.prioritylogistics.net

Senate’s Proposed Budget May Allow Refunding of Popular Step Grant Pro-gram — According to our sources in Wash-ington, D.C., the U.S. Senate has proposed an unspecified amount in its proposed budget for refunding the Step Grant through the SBA. Nei-ther the proposed amount or recommended date was revealed, but it is certain that it would not apply until at least 2015. Step Grants have been extremely helpful to SMEs in expanding their ex-port sales, and while the funding could affect tax-es, they are nonetheless a stimulant to a recovering economy through American exports and job creation.

China’s Manufacturing Loss Becomes Opportunity for other Countries — According to a report by Stratfor, the geopoliti-cal intelligence firm, “China’s economic problems have opened the door to 16 different countries, including Ethiopia, Mexico, Indonesia and Peru, to become global forces in the growth of the manufacturing sector, “noted an article in Ameri-caeconomia.com. Stratfor says that the 16 coun-tries after China, according to their region are, in Latin America: the Dominican Republic, Mexico, Nicaragua and Peru, in the Indian Ocean Basin: Ethiopia, Kenya, Tanzania, Uganda, Bangladesh, Sri Lanka, Indonesia and Myanmar , and in the periphery of the South China Sea: Cambodia, Laos, Philippines and Vietnam.

The Kansas City, Mo., Aviation Depart-ment reports that Kansas City Interna-tional Airport (KCI) air cargo at KCI is up 4.3 percent from the same period last year. Air freight handled at KCI during June, however, amounted to 15.3 million pounds, a year-over-year decrease of 5.7 percent. Air mail for June was up 3.7 per-cent from June 2012. All-cargo carriers reported 4 daily departures in June.

Air cargo tonnages, which consist of both freight and mail transported by air, for all car-riers at KCI, were down 5.6 percent in June.

KCI passenger traffic totaled 935,186 pas-sengers arriving and departing through its

gates in June, representing an increase of 3.4 percent from June 2012. Passenger boardings at KCI were up 3.5 percent, with a total of 463,096 during June. For the year to date, boardings at KCI totaled 2,344,984, a decrease of 5.1 percent from the same period last year.

The number of peak-day scheduled air-craft departures for June was 186. Service was offered to 45 nonstop markets. There was an average of 39,369 arriving and de-parting seats available in the market each day, up 6.5 percent from last year. www.flykci.com

KCI Airport Air Cargo Traffic Up for First Half 2013

July-Aug 2013 page 10

http://www.prioritylogistics.net/http://www.flykci.com/

International Business News

page 11 July-Aug 2013

ABOUTIBNewsmag TM Now in its 9th year of publishing by InterMark3, Inc., IBNewsmag is an independent online magazine for entrepreneurs and small to medium-sized enterprises (SMEs) to keep them current on compelling develop-ments affecting exports and other international business developments. In keeping with our conversion to an e-magazine, we’ve changed our name to IBNewsmag to better reflect it as a magazine, not a newsletter. Moreover, the title matches our website to make it easier to access.

In each edition, and on our website – www.IBNewsMag.com – we’ll bring you the latest international breaking news – current news items that may affect your international business and of a regional interest for our Heartland region readers. In addition to special events, we will announce company news as appropriate. So feel free to send your edi-torial suggestions and news releases. Email them to: fbaehner@intermark3.com.

IBNewsmag

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PUBLISHER/EDITOR:Frederick Baehner

EDITORIALADVISORS: Jo Anna Edgerton, Paul Mastilak

DESIGN: Tom Gilland,

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Frederick Baehner

LastFall, IBN conducted focus groups and a survey of entrepreneur-ial small companies. The most important outcome was the lack of knowledge and resources available to help them export. As a result, we’ve developed a 10-Step checklist to help new-to-export companies throughtheprocessofsuccess-filledexporting.

You can request your FREE copy of our 10 Steps by emailing info@intermark3.com

http://www.ibnewsmag.com/http://www.ibnewsmag.commailto:fbaehner%40intermark3.com?subject=http://www.gillandgraphx.commailto:mailto:info%40intermark3.com?subject=

*IATA Code: MCI

Kansas City International Airport (KCI*) is one of the most convenient commercial airports

in the world. In 2012, 10 million passengers enjoyed its easy terminal access. More than 95,000

tons of air cargo was handled along “cargo row” with direct airfield access. Ten passenger

airlines offer nearly 200 daily departures, with nonstop service to 40 destinations. All cargo

carriers offer four daily departures, and operate an extensive Road Feeder Service network.

Beyond the terminals, there are 7,000 acres of land available for development surrounding the

airport. KCI has become a prime opportunity for developers, manufacturers, shippers and

freight forwarders looking to expand their businesses.

The Ambassador Building at KCI offers Class A office space for $15 per square foot. CBRE/Trammell

Crow is developing the KCI Intermodal BusinessCentre, featuring build-to-suit flex buildings

combining low-cost, on-airport sites with easy access to four major Interstate highways, an

expansive cargo-handling infrastructure and one of the nation’s largest Foreign Trade Zones.

KCI is the smart choice for passengers, cargo and commerce alike.

KANSAS CITY INTERNATIONAL AIRPORT

http://www.kcibiz.com/