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**U.S. Department of Commerce**

**International Trade Administration**

**U.S. Export Assistance Center**

**425 West Capitol Ave, Ste. 425, Little Rock, AR. 72201**

**Phone: 501-324-5794, Fax: 501-324-7380**

**<Little.rock.office.box@mail.doc.gov>,
http://www.buyusa.gov/arkansas**

### Mary Hayward, Export Assistance Specialist

**[INTERNATIONAL BUSINESS NEWS -- FEBRUARY 2009\
]{.underline}**

**[MARKET OF THE MONTH -- THE DOMINICAN REPUBLIC]{.underline}**

The Dominican Republic (DR) is the seventh largest trading partner of
the United States in the Western Hemisphere, after Canada, Mexico,
Brazil, Venezuela, Chile and Colombia. Furthermore, the Dominican
Republic is the 31st largest commercial partner of the United States in
the world. The DR is also the largest market of the Central
America-Dominican Republic Free Trade Agreement (CAFTA-DR).

The U.S. and the Dominican Republic enjoy a very strong commercial
relationship and have a vibrant free trade

agreement in place. In 2006, bilateral trade amounted to US\$9.9
billion. This represents United States exports totaling US\$5.3 billion
and imports from the Dominican Republic totaling US\$4.6 billion. In
2006, U.S. products held an approximately 55% market share in the
Dominican Republic. However, 70% of consumer goods imported into the
Dominican Republic are from the United States.

Best Prospects for U.S. Exporters to the Dominican Republic:

-   Medical Equipment

-   Hotel & Restaurants Equipment

-   Computer & Peripherals

-   Telecommunication Equipment

-   Travel and Tourism Services

-   Printing & Graphic Arts Equipment and Supplies

-   Renewable Energy; and Building Products

Please visit our website at: <http://www.buyusa.gov/caribbean/en/>

**[EXPLORE BUSINESS OPPORTUNITIES IN THE DOMINICAN REPUBLIC
WEBINAR]{.underline}**

**[February 12, 2009, 2:00-3:00 PM. Eastern Time - Cost:
\$35.00]{.underline}**

The U.S. and Foreign Commercial Service are proud to present a series of
webinars on the Caribbean markets. In the first webinar of this series,
you will learn about the Dominican Republic\'s key industry sectors,
legal aspects of doing business according to Law 173, and the rules of
origin of what U.S. firms need to qualify under the

CAFTA-DR free trade agreement.

Main speakers include

-   Robert O. Jones, Jr., Commercial Counselor for the Caribbean Region,
    American Embassy.

-   Maria Elena Portorreal, Isolda Frias, Sheila Andujar and Yira Roa

> Commercial Specialists, American Embassy, Santo Domingo.

-   Alejandro Pena Prito, Managing Partner of Squire, Sanders &
    Dempsey - Pena Prieto & Gamundi

> Santo Domingo

-   Eduardo Rodriguez, Technical Under Director of Dominican Republic
    Customs Office

A question and answer session will follow the webinar.

To learn more or register, [**click
here**](https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q3T)

**Future Caribbean Webinar Events Include:**\
   Trinidad, Tobago and Jamaica - Wednesday, March 11, 2009 2:00 PM-3:30
PM ET\
     Cost \$35.00. For details and registration,
![](media/image2.png){width="0.12569444444444444in"
height="9.236111111111112e-2in"}[click
here](https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q4K)^6^.\
   Bahamas and Barbados - Wednesday, April 29, 2009 2:00 PM-3:30 PM ET\
     Cost \$35.00. For details and registration,
![](media/image2.png){width="0.12569444444444444in"
height="9.236111111111112e-2in"}[click
here](https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q4D)^7^. 

**[ASK THE EXPERTS]{.underline}**

Reprinted with Permission from February 2009 Edition of IOMA's "Managing
Imports and Exports"

Readers wishing to "Ask the Experts" other import or export-related
questions can submit them to the editor at <cdhorner@ioma.com>

MIE's 'Ask the Experts' team---Alan Gaudio, Robert Imbriani, and Joseph
Zodl, consultants for Unz & Co.---answer readers'

import- or export-related questions. This month's column is by Alan
Gaudio.

Import-export manager: My company puts together a variety of both
upgrade and repair kits for the machines that we sell. Kitting these
parts together makes for very efficient business operations and quick
response to customer needs. However, I have a heck of a job classifying
these kits in the Schedule B when they are exported. Is there some
secret to this that I haven't discovered?

Alan Gaudio: There is no secret to classifying anything in the Schedule
B, which is based on the Harmonized Commodity Description and Coding
System (HS). It's just plain hard work. However, there are some
fundamentals you need to understand.

First, there is really only one "kit" specifically described in the
entire HS. This is a first aid kit found in heading 3006. To everything
else you must apply the General Rules of Interpretation (GRI)---the
ground rules for using and applying the HS. The principal rule is GRI 1.
Classification will be according to the terms found in headings,
subheadings, and the notes to sections and chapters.

Basically, it's telling you that the most specific description found
first in the heading and then in the subheading is always the preferable
one.

The HS does define something called a "set." To be a set, the article
must 1) consist of at least two different components that are
classifiable in different headings, 2) be put up in packaging ready for
sale, and 3) be put up together to meet a particular need or carry out a
specific activity. In other words, the components must be complementary
to each other. I'll stretch this and say they must be "necessary" to one
another.

So look inside one of your "kits." If the components of the kit are
simply a collection of sundry and various spare parts that are the ones
that wear out most frequently, then your kit does not rise to the level
of being an HS set. That's because none of the components depend upon
one another for their functionality. In such a case, you have a
collection of discrete articles of commerce that must be classified on
their own. GRI 1 tells you to find the most specific description you can
for each component.

If, on the other hand, all the components of your "kit" work together to
meet a particular need, then you have an HS set. Now you must ask
yourself if there is one component that gives this set its essential
character. For example, you have a replacement electric motor
accompanied by a line cord to the power source, a mounting bracket for
the motor, four bolts for the bracket, and a junction box that mounts on
the motor. This set is all about the motor. The essential character of a
dominant component is the motor. GRI 3(b) tells you to classify this set
as an electric motor. GRI 1 tells you to find the most specific
description you can for this particular electric motor.

**[VISA WAIVER PROGRAM TRAVELERS NOW REQUIRE ELECTRONIC
AUTHORIZATION]{.underline}**

As of January 12, 2009, all Visa Waiver Program (VWP) travelers are now
required to obtain a travel authorization via the Electronic System for
Travel Authorization (ESTA) prior to traveling to the U.S. under the
VWP. The VWP allows visitors from participating countries to travel to
the U.S. for business or pleasure for 90 days or less without first
obtaining a visa. For more details, please visit:
<http://cbp.gov/xp/cgov/travel/id_visa/esta/about_esta/1>

**[ALTERNATIVES TO LETTER OF CREDIT]{.underline}**

Consider the following scenario: Two good customers (let's say one in
China, one in India) suddenly notify you that they are unable to open
letters of credit with their own banks, potentially resulting in a
canceled transaction. These are long-term customers who've never had
this problem with their banks in the past. Are there alternatives,
carrying acceptable risk levels, that will allow you to continue to sell
to these overseas buyers and salvage the sale? To find the answer, read
the article [\"3 Alternatives to Letter of Credit
Revealed.\"](http://www.buyusa.gov/arkansas/lcaltfeb09.doc)

**[U.S. FREE TRADE AGREEMENTS IMPLEMENTED WITH COSTA RICA, OMAN, AND
PERU]{.underline}**

Since December 2008, Free Trade Agreements (FTAs) have been implemented
with Costa Rica, Oman and Peru. Free trade agreements are critical to
lowering barriers to American exports and creating better-paying
American jobs. Today, we have FTAs in effect with: Israel, Canada,
Mexico, Jordan, Chile, Singapore, Australia, Morocco, the Dominican
Republic, El Salvador, Guatemala, Honduras, Nicaragua, Bahrain and now
with Costa Rica, Oman and Peru. For more information on how your company
can benefits from the FTAs, please visit:
<http://www.export.gov/fta/index.asp4>

**[WATCH FOR SUSPICIOUS BUSINESS PRACTICES]{.underline}**

While many U.S. businesses successfully do business internationally, a
minority experience problems. To reduce the number of U.S. businesses
experiencing such problems, the following "red flags" warrant caution
and more thorough partner and/or transaction due diligence.

• Unfamiliarity with the product application.

• Limited details or unwillingness to provide information on the project
in which the materials will be applied or the end user.

• Discrepancies on business cards that cannot be clarified.

• Incomplete information on the purpose of the 'fees' outlined in the
contract

• Inability to specifically explain the regulations or government
entities that are allegedly imposing certain fees.

• Offers to sell certain internal government information or sensitive
commercial information

• Rented cell phones.

• Location of office space in residential areas.

• Less than one year of operation history with very young leadership.

• Insistence on advance payment to the foreign entity prior to
concluding contract.

• Unusually large product volume or urgency to purchase.

• Requests for an invitation letter to visit the U.S. facility prior to
any substantive

communication about purchase terms or exchange of company background
information.

Other Red Flag indicators provided by the Bureau of Industry and
Security can be viewed at:
<http://www.bis.doc.gov/enforcement/redflags.htm>

**[UPCOMING EVENTS]{.underline}**

**2009 GLOBAL MARKETPLACE WEBINAR SERIES**

**All programs will run from 10:00 -- 11:15AM CST - \$40 Fee for each
live event**

**Interactive format allows you to ask questions - Participate from your
office or home computer.**

**Can\'t attend the live event? Order the audio/visual recording**

[February 11, 2009: Incoterms 2000--Transportation Obligations, Costs
and Risks Incoterms
2000:](https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q28)

[February 18, 2009: Ensuring Payment for International
Sales:](https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q29)

[March 4, 2009: Increasing Your Global Sales Using the
Internet:](https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q2A)

[March 18, 2009: Exporter Obligations/Export Control
Update:](https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=9Q2B)

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**[COMMERCIAL NEWS USA (CNUSA)]{.underline}**

The May-June 2009 issue of "[Commercial New USA]{.underline}," will
feature the Exporter of the Year Awards, Business Services,
Hotel/Restaurant Food Processing, and Information Technology. Deadlines
for the edition are March 6, 2009 for space, and March 16, 2009 for
materials. For more information visit: <http://thinkglobal.us/>

> **We Hope You\'ve Enjoyed This Edition of our Newsletter**
>
> Contact us at: <little.rock.office.box@mail.doc.gov>
> <http://www.buyusa.gov/arkansas>
>
> Phone: 501-324-5794, Fax 7380
>
> For a list of our upcoming Webinars and other programs, [click
> here.](http://www.buyusa.gov/arkansas/events.html)
>
> (Any mention of non-government sources does not constitute
> endorsement.)