you run to China, Bangladesh, India, Pakistan, Vietnam, Cambodia, Sri Lanka,
Mexico, Sub-Saharan nations, Central America, South America, Russia, or
other places being packaged as the panacea of low labor costs or great site
locations, please stop and answer a few questions:
enough electricity and natural gas in the area?
local government support my industry?
enough skilled managerial and technical labor available to support my
enough water for my process, and what about environmental responsibilities?
How is the
local highway network? What is the telecommunications situation?
relations with local unions?
Where are the
nearest vendors for my product, and are there other industrial users of
similar product in the area?
incentives are available from local government?
How would I
ship my product to market from here?
Where are the
nearest international airports and shipping ports?
special climatic weather considerations is this area?
What is the
quality of life of the labor force?
Is the local
political situation stable?
organizations or institutions of learning can offer training?
What would my
supply chain look like?
How are the country's customs brokers?
Where do they
have free trade zones and custom bonded space available?
How can I
ensure that I am properly covered with insurance?
Who are the
logistic providers and are they competent?
Does my U.S.
Customs Broker have knowledge of my products?
licensed customs brokers are employed by the brokerage company?
brokerage company assist in submitting ruling requests to customs
headquarters on a client's behalf?
brokerage company keep its clients up to date on changes in customs
brokerage company provide customs clearance at all U.S. Ports of Entry?
brokerage company assist in applying for duty drawbacks?
Trade Treaties (FTAs) are applicable?
Who are the
real owners of my facility?
What is the
justice system like in the country?
Are my trade
What are my
recourse action capabilities, if needed?
wrong answer to any one of these questions can cause great financial harm.
manufacturers and retailers doing business in the U.S.A., we do the
research, use professional services to make contracts, perform due
diligence, and have monitoring systems in place to complete processes. It
seems that in foreign countries, we assume that our selected infrastructure
(or the factory we are placing orders with) understands what is needed to
complete an order with proper specifications and on-time delivery. The
romance and drama of doing business in a foreign country tempts us to negate
the RISKS as we visualize our increased gross margins.
The story usually goes like
this: You land in a foreign country, the bell boy speaks very good English
and answers your many questions. (He usually becomes your General
Manager!!) One of your long-term employees has a sister in the foreign
country, you arrive and she speaks passable English, and she becomes your
this takes place, instead of gaining gross margins, you will learn about the
world of attorneys specializing U.S. Customs law, forensic accounting
procedures of the IRS, Transfer Pricing, Safe Harbor, and tax regulations
you have never heard of.
you not, this story is being repeated over and over again.
professionals at Stonefield Josephson have been servicing importers,
exporters and multinational corporations for over 30 years. We also have a
network of experienced professionals in most industrial countries that can
assist you with all of your accounting, foreign legal, and transitioning of
cannot eliminate all of the risk factors, but we can make you aware of them,
and help you reach your goals.