Manufacturers MakingEXPORT PROGRESS

In this issue: Coping with Global Uncertainties | Tips to Boost Exports | Profile — Slovak Republic

If you export, or plan to export, an American-made product - or even a product assembled in the USA - you should call us today. This is our championship specialty and we have been working with American exporters for 36 years. No one does it better than Held. We offer complete export services outlined below.

Held & Associates Export Freight Forwarding Services: • International Freight Forwarding (Air and Ocean)• Export Documentation & Legalization• Export Packing, Containerization (ISPM – 15 Certified)• US Customs Broker• Cargo Insurance• Project Cargo, Over Dimension, Break Bulk & Hazardous Cargo• 31,000 sq. ft. Indoor Facility• 18,000 sq. ft. Open FacilityWe also have complete Containerization and Consolidation/Distribution Services. Please visit our website for a complete listof all our services at: www.held-assoc.com

At your service we remain.

Recipient of President’s Excellence in Export Service Award

Held & Associates Inc.36 Years of Gold Medal Export Service

Held & Associates, Inc.International Freight Forwarding

and Customs Brokers.Tel: 816-842-6701Fax: 816-842-1579

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

Teresa Haley has been with Held & Assoc. Inc. for 27 years with experi-ence in Air & Ocean Export as well as Domestic Air Freight. She special-izes in International Air Export.Her background has been with Hazard-ous Goods – Perishables – Oversized – Letter of Credits. Over 40 years of Background in the Domestic/Interna-tional – Export/Import Industry.

Teresa@held-assoc.com or Phone: 816-842-6701 x 214

Call Teresa for your nextair shipping quote

2 Held & Associates

3 Publisher’s Letter

4-5 International Trade: Gold Eagle

6 International Trade: Custom Powder

7 Custom Powder, cont’d / Transimpex

8 5 Exporting Tips for 2017 / Lead

9 Country Profile: Slovak Republic

10 Slovak Republic, cont’d

11 Slovak Republic, cont’d / About IBN

12 Greater Kansas City Foreign Trade Zone

CPI’s Denise McIntosh; Gold Eagle’s Howard Donnally & Rick Schwab

IBNewsmag TM: cover photo

IBNewsmagTel 816.616.7779 Fax: 816.472.0959fbaehner@intermark3.com

6655 Troost Ave., Kansas City, MO 64131, USA

In God we trust!PUBLISHER/EDITOR:Frederick Baehner

DESIGN & PRODUCTION:Tom Gilland www.GillandGraphx.com

ADVISORY BOARD:James Malouff, Doris Ganser, Paul Mastilak

Get a Jump on your competitionIt’s no secret that distance runners gain extra seconds on their competitors by accelerating uphill versus slowing down as many do.

In this period of US administration and global uncertainty combined with the perpetually strong dollar, global traders worth their weight in exports are examining all aspects of their businesses to see where they can tighten up and gain some ground for the sale of their products overseas.

It might be in cost efficiencies for manufacturing, pricing, logistics, distributor network evaluation and realignment, or in business best practices.

For this edition, we flagged down two disparate exporters: a well-known lubricants manufacturer in Chicago and a powder processing manufacturer in Springfield, Missouri. Each has its own take on stepping up its exports.

In addition, we offer some basic business tips to help you on doing business in the Czech Republic, now becoming known as Czechia.

Publisher’s Letter

page 3February 2017

Gold Eagle is a family-owned Chicago company that spans 86 years of exporting fuel treatment and appearance products to over 65 countries throughout the world.

Gold Eagle International offers proven protection and prevention to maintain vehicle integrity. From fuel stabilizers to UV protection, products like 303 Aerospace Protection, NO LEAK Treatments, STA-BIL Fuel Stabilizer, and HEET GAS-Line Antifreeze, keeping things looking like new, longer. Other products include Start Your Engines START system revitalizer and a multitude of marine items, automotive, small engine, power sports and diesel products.

Mr. Richard Schwab, Gold Eagle Vice President International, points to international political situations and trade policy uncertainties as some of its major concerns. “One of my greatest trade concerns is how trailing import duties and tariffs may impact our business should the current administration impose significant inbound import restrictions.”

“We’re continually implementing cost reduction strategies at all levels to maintain reasonable pricing both here and overseas,” Mr. Schwab continued. “These include everything from manufacturing and supplier cost reductions to supply chain efficiencies along with our distributor network in other countries.”

With President Trump pulling out of the Trans Pacific Partnership (TPP), he is expected to sign an executive order renegotiating NAFTA very soon. Many SMEs, including Gold Eagle, are quite concerned how this will impact trade with our partners across the borders since both Canada and Mexico are our two major trading countries.

Gold Eagle products are made in America, which the company can claim “Made in USA.” This in itself is an offsetting trade benefit to exporting allowing Gold Eagle products to stand out more in an offshore competitive climate.

A critical non-tariff barrier for Gold Eagle products in Europe is the looming 2018 REACH compliance regulations. This is Europe’s way to monitor chemical inputs and environmental controls that may be detrimental to consumer safety.

REACH stands for Registration, Evaluation, Authorisation and Restriction of Chemicals which

Gold Eagle shares concerns over uncertain trade and non-trade policies

Gold Eagle factory floor

IBNewsmagTM

February 2017page 4

entered into force in June, 2007 and be enforced by June, 2018 by the European Chemicals Agency (ECHA).

The REACH regulation has significant short and long-term impact on supply chains feeding chemical products into the EU. Non-EU companies now must analyze the chemical composition of components and declare the existence of controlled Substances of Very High Concern (SVHCs). REACH impacts a wide range of companies across many sectors, even those who may not think of themselves as being involved with chemicals.

While this is not directly related to US trade policy, REACH will significantly impact Gold Eagle products targeted to the EU. “The cost to comply is extremely prohibitive,” said Mr. Schwab. “We’re talking six figures just to register and another five figures to comply and maintain. A large impact in our P&L.”

Gold Eagle has written letters of protest to each of its Congressional people – representatives and senators, and to the former President, in an effort to pressure the EU against enforcing REACH. So far, no apparent progress.

The highest levels of power play were used, with the Secretary of State sending a series of cables to US embassies in Europe. The Secretary wanted diplomats to focus their lobbying efforts on national governments, arguing that they would be “much

Gold Eagle Brands President, Howard Donnally and VP In-ternational Sales, Rick Schwab at the US Dept. of Commerce upon receiving the President’s Excellence in Exports Award.

Rick Schwab with array of product display at the 2016 Automotive Aftermarket Products Expo (AAPEX)

more sensitive to impacts on EU competitiveness, employment and other implications that other commission bureaucrats.”

One possible out for Gold Eagle and other SMEs is that Small and Medium-sized Enterprises (SMEs) can benefit from reduced fees under the REACH regulations. The reductions depend on the company size and can be up to 95% from the standard fee for a REACH registration.

In its multi-pronged attack on REACH, the US government also used the World Trade Organization (WTO). In July 2004, after recruiting the support of the Asia Pacific Economic Forum countries (APEC), the US complained to the WTO’s Technical Barriers to Trade Committee (TBT). The US claimed that REACH does not meet the “least trade restrictive” test in the WTO’s TBT agreement. However, as a common statement of Friends of the Earth, European Environment Bureau and Greenpeace pointed out, the US submission “failed to indicate any specific trade law objections whatsoever.” The green groups called on the European Commission to reject the US complaint at the WTO.

One silver lining appears to be with Brexit. When Britain in fact exits the EU, REACH may no longer apply to that country. This, plus the possibility of a bi-lateral trade agreement with Britain, may portend great rewards for American SMEs.

One can only hope for a British REACH relief for American exporters. We know that Gold Eagle does.For more information, visit www.goldeagle.com

IBN

page 5February 2017

Custom Powder Systems (CPS) is a Springfield, MO-based SME that designs, builds and automates the equipment used to dispense, size, mill, contain and blend the powders used in the pharmaceutical, food and chemical industries.

Because so much of its international business is tied to its larger US-based companies, CPS is considered an indirect exporter, with many of its projects traveling to China, India, Ireland, UK, Saudi Arabia, Nigeria and Qatar to name a few.

CPS produced two of its projects for direct export – to India and Saudi Arabia.

Denise McIntosh, CPS CEO said, “We typically don’t spend time seeking international projects because

we work so closely with our US-based companies who take us there. That’s not to say we don’t accept them when they do come our way, but the bidding process we typically go through can be time-consuming.”

Mrs. McIntosh pointed out that one of her greatest concerns in this uncertain global business environment is the strength of the dollar versus some of the foreign currencies. “I am concerned that with the strong dollar our bids may not be as internationally competitive as they might be. In cases like this, we simply don’t win the contract with these US companies that propose international projects.”

She does have concerns about the future of NAFTA in that she believes CPS has some potential in Mexico where the peso has drastically fallen versus the dollar. A year ago, there were 8 pesos to the dollar. Now it’s 5 pesos to the dollar.

CPS manufactures the machines used to process powders used in other industries, such as the food industry segment as well as the pharma industry.

Custom Powder Systems ties its business to large companies as an indirect exporter

Pictured: CPS Drum Isolator machinery

IBNewsmagTM

February 2017page 6

“Many of our customers are interested in companies like ours that can take on a whole system, not just one piece of equipment,” claimed Mrs. McIntosh. “So we often buy from other companies and integrate their products into our systems which we can automate.”

Mrs. McIntosh pointed out that CPS has over 80 employees now, compared to the 65 they had in 2014.

She came from the agricultural industry where she began in the crop input business. Looking to NAFTA she pointed out that agriculture could claim increased business from Mexico should NAFTA be scrapped.

She suggested that companies such as Archer Daniels Midland reportedly have “made its processing operations more flexible and could replace some Mexican agricultural products with alternatives made in the USA,” according to a recent AgriMarketing article on the subject. The benefits appear to outweigh the negatives in agriculture with additional US food product purchasing originating from American companies.

In the meantime CPS will continue to expand its services with a view toward more indirect exporting with Fortune 100 companies.

For more information about CPS, see www.custom-powder.com

IBN

CEO Denise McIntosh with Missouri former governor, Jay Nixon, at CPS in 2016

Translators • Interpreters • Editors • Consultants, Inc.

Doris Ganser, President, Transl. Grad.

For More Than 40 Years In The Heart Of America — Your Link With The World

Technical, Scientific, Legal, Medical Translations, Including

Manuals, Patents, Brochures, Contracts, Software, Advertising. Interpreting and Interpreting Equipment. Desktop Publishing.

All Related Services.

Transimpex aK nsas City, Missouri, 64108

Tel: (816) 561-3777 Fax: (816) 561-5515

translations@transimpex.com www.transimpex.com

Transimpex

2300 Main Street, 9th Floor,

International Business News

page 7February 2017

Here are some practical tips for manufactured exports in this time of national and international uncertainty while continuing to deal with the dollar’s strength. These are based on IBNewsmag interviews with manufacturers and other trade specialists.

1. Be sure you comply with any export documentation issues that may affect your product. Common export documents include commercial invoice, packing list, pro forma invoice, bill of lading, certificate of origin, and Electronic Export Information (EEI) for shipments over $2,500. Your freight forwarder can help.

2. Be wary of international distributors or sales reps who request country exclusivity. There must be trust and performance first, then if there is to be exclusivity, it must be earned. In large markets, such as China, it is nearly impossible for one distributor to adequately handle the entire market.

3. Indirect exporters need to be as cost conscience as direct exporters. Your pricing bid to direct exporters may scuttle the opportunity overall.

4. In light of question-marks regarding changes, or even the future of such agreements as NAFTA, periodically review them for your specific export industry segment.

5. Be aware of the EU’s REACH* requirement. If your product contains even a negligible amount of chemicals that may be detrimental to European health and climate, it will require you to register and comply accordingly, which is an added cost for doing business in each of the 28 EU countries.*Read more about REACH - its meaning and requirements in the Gold Eagle article beginning on page 4 of this issue.

Five More Export Tips for 2017

Classifieds — Trade LeadSeeking a North American source of freeze-dried meat hermetically sealed in individual packs to

serve many on a mass scale in the Middle East.

Inquiries to info@intermark3.com for details

AeroMobil, Slovak prototype roadable aircraft

February 2017page 8

A Few Practical Tips for Doing Business in the Slovak Republic:Also known as Slovakia

• Slovaks are non-confrontational, generally polite, usually friendly and open to Americans.• Despite being seen as an Eastern European country, the business practices and etiquette in Slovakia are al-most similar of those used in Western Europe and the United States.• Doing business in Slovakia generally requires the building of good business and personal relationships and a feeling of mutual trust with your business part-ners.• You can use local Slovaks as representatives, dis-tributors, or agents for products and services.• Hire an attorney licensed to practice law in Slovakia to review binding contracts and documents before signing.• E-mail is the most common way of communicating. If you occasionally have difficulty in receiving replies to inquiries, re-send it once again or call the person. • Generally, decision-making is done by the head of the company.• Punctuality is very important.• Initial meetings are to become acquainted and build trust.• Avoid high pressure sales pitches.• Unlike many other Europeans, there is no hugging and kissing in a business environment.

Slovakia Overview• Double the size of New Hampshire• Separated from Czech Republic in 1993• Population: 5.4 million• Eight Provinces: Bratislava, Banská Bystrica, Košice, Nitra, Trnava, Trenčín, Žilina, Prešov• Language: Slovak• Population is 54% urban• Population growth- 0.01%• Government: Parliamentary Republic• Literacy Rate: 99.6%• Capital City is Bratislava- 450,000 people

National Holidays (2017)• January 1 (Establishment of the Slovak Republic)• January 6 (Three Kings´ Day)• April 14 (Good Friday)• April 17 (Easter Monday)• May 1 (Labor Day)• May 8 (Day of Victory Over Fascism)• July 5 (St. Cyril and Methodius Day)• August 29 (Slovak National Uprising Anniversary)• September 1 (Slovak Constitution Day)• September 15 (Day of Our Lady of Sorrows)• November 1 (All Saints Day)• November 17 (Struggle for Freedom and Democracy Day)• December 24 (Christmas Eve)• December 25 (First Christmas Holiday)• December 26 (Second Christmas Holiday)

PROFILE:SLOVAKIA

AeroMobil, Slovak prototype roadable aircraft

page 9February 2017

Economy• Part of NATO, European Union, Eurozone, Schengen Agreement• Regional center for 350 million potential customers within a radius of 1,000 km (625 miles) and majority of the EU countries within a radius of 2,000 km (1,250 miles)• Stable outlook according to rating agencies, real GDP growth reached 3.8% in 2015 - one of the fastest among all EU countries• GDP (PPP)- $169.1 Billion• Unemployment Rate (2016): 9.49% • Inflation Rate (2016, CPI): -0.5%• Exchange Rate (Feb 23, 2017): 0.9469 Euros Per 1 US Dollar• Labor Force Makeup: Services- 73.2%, Manufactur-ing- 22.6%, Agriculture- 4.2%• Major Manufacturing Industries- motor vehicles and parts (largest), metals and metal products, machinery & equipment, chemicals, synthetic fibers, wood and paper products • Good place for US companies to do business, ranks 33rd worldwide in Doing Business 2017 (by the World Bank Group) • Solid industrial base, production of one million cars per year (the world‘s highest per capita), develop-ing new innovative solutions in transportation, in-cluding a concept of a flying car called AeroMobil (www.aeromobil.com)• Proud of its technical talent and believes in the future of innovation (Internet of Things, Connected Cars, Cy-bersecurity)• Ready to collaborate with US businesses

International Trade • Major Exports: vehicles and parts, electronic equip-ment, machinery, iron and steel, oil, rubber, plastics, furniture, lighting• Total Exports (2015; in EUR) - € 67.9B• Major Imports: Electronic equipment, vehicles and re-lated products, machinery, oil• Total Imports (2015; in EUR) - € 64.6B• Major Export Partners: Germany- €15.4B, Czech Re-public- €8.4B, Poland- €5.6B, Austria- €3.9B, France- €3.8B, Hungary- €3.8B, UK- €3.8B, Italy- €3.1B • Major Import Partners: Germany- €9.8B, Czech Re-public- €7.0B, China- €5.4B, South Korea-€4.3B, Rus-sia- €3.5B, Poland- €3.2B, Hungary- €3.2B, Vietnam- €2.2B

Slovak Business News Websites • TASR- www.tasr.sk (The News Agency of the Slovak Republic)• The Slovak Spectator- www.spectator.sme.sk• The Daily. SK- www.thedaily.sk

Sampling of Slovak Companies • ESET - one of the TOP 5 antivirus software companies globally - www.eset.com • Sygic - global offline automotive navigation systems- www.sygic.com • Pixel Federation – major Facebook games player – www.pixelfederation.com • Sli.do - award-winning Q&A and polling platform for meetings, events - www.sli.do • Resco – major developer of cross-platform mobile

February 2017page 10

software solutions – www.resco.net • AeroMobil - flying car prototype AeroMobil 3.0 - www.aeromobil.com • Colosseo EAS - cutting edge technologies for sports arenas - www.colosseoeas.com • CulCharge - world’s smallest charging gadgets - www.culcharge.com • Virtual Reality Media - military simulators and training systems - www.vrm.sk • RONA – high quality glasses – www.rona.sk • OMS Lighting - lighting products - www.omslighting.com • FOSALI – fibre optic solutions and lighting – www.fosali.com • LYRA CHOCOLATE – fine chocolate producer - http://en.lyrachocolate.com• Železiarne Podbrezová - steel tubing - www.zelpo.eu • KINEX – production of rolling bearings - www.kinexbearings.com • SPINEA - high-precision reduction gears – www.spinea.sk

• CEIT Group – biomedical engineering, industrial automation, technical innovation - www.ceitgroup.eu • I.D.C. Holding a.s.- confectionery and pastry products- www.idcholding.com • SES TLMACE - steam boilers for combustion of coal, oil, gas and biomass - www.ses.sk • VEGUM – major hockey pucks producer for NHL – www.vegum.sk • STANDART - specialty coffee culture magazine – www.standartmag.com • ECOCAPSULE - self-sustainable smart house powered solely by solar and wind energy – www.ecocapsule.sk For more information on business and investment opportuni-ties in Slovakia, contact Mr. Peter Petian from the Embassy of Slovakia to the U.S. (COMM/ECON Section in New York): peter.petian@mzv.sk

By Paul Mastilak,InterMark3 Inc.

The voice of small business international trade Now in our 13th year of continuous publishing

IBNewsmag is an independent on-line magazine for smallto medium-sized enterprises/businesses (SMEs) publishedmonthly by InterMark3, Inc.

In each and every issue, and on our website – www.ibnewsmag.com - we bring you practical, proven information and current international business news to help you grow your global business.InterMark3, Inc., is an international business development firm based in Kansas City, Missouri USA, established to assist SMEs with practical business intelligence and other services with a view to build client company and organization international revenue. www.intermark3.comFor questions and comments, email Fred Baehner – fbaehner@intermark3.com

page 11February 2017

Suppliers of Foreign-Sourced Products/Components to OEM’s Should Consolidate Shipments in Kansas City Free Trade Zones.Purchase your foreign-sourced goods FOB Kansas City “duties unpaid”. Ship them “in-bond” to your shipper’s Foreign Trade Zone warehouse. If there is sorting, cleaning, repackaging or assembly to be done, do it there! Pay the duty when it leaves the warehouse and “Entered” into U.S. commerce.… perhaps a lower duty rate! Your Entries can be consolidated on a weekly basis and filed as one entry. If your merchandise is being ex-ported, you pay no US Customs duties at all! Save some money & be competitive!The logistics of this global value chain combined with “duty-free” & “reduced MPF fee” benefits of the centrally located Greater Kansas City Free Trade Zone (GKCFTZ), will save you money on the real cost of your foreign-sourced products, and the final components that are Entered (if assembly or kitting changes its duty classifica-tion), as well as supply chain costs (value-base costs for bonding, insurance, and fees) and the expenses you incur to drawback duties on exported goods.

• Import parts for assembly to an FTZ and only pay duty when moving from the FTZ.• Duties for assembled or finished products combining domestic and foreign parts are much lower when work is done in the FTZ.• Pay no duties of foreign parts that are damaged or scrapped.

Save Money on Foreign Sourced products and lower your supply chain costs

Greater Kansas City Foreign Trade Zone, Inc.PO Box 3339 Kansas City, KS 66103 USA

http://kcsmartport.thinkkc.com/gkcftz

• Consolidated Entries into one per week and reduce Customs MPF fees.• Eliminate duty drawback on exports by not paying it upon Entry.

Talk to your shippers and logistics service provider and let them know you want to save money and expedite your shipments. Find out how the GKCFTZ can help your company speed product movement and save you money.

Call Al Figuly at 816.474.2227 or email alfiguly@gkcftz.com