Training Modules for Small and Medium Enterprises (SMEs)

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Training Module 7

International Trade Promotion

Export and Import procedures International trade promotion E-commerce: Trade platforms in Internet Trade fair and exposition guide

Heidel erg !erman" #$$%

_________________________________________________
&usiness 'e(elopment (&'S) )orum
www.bds-forum.net/training-modules

Training Modules for Small and Medium Enterprises (SMEs)

____________________

Training Module 7

International Trade Promotion

Export and Import procedures International trade promotion E-commerce: Trade platforms in Internet Trade fair and exposition guide

Heidel erg !erman" #$$%

Training Module 7 of 7

_________________________________________________
&usiness 'e(elopment (&'S) )orum
www.bds-forum.net/training-modules

Impressum:
Editor:

Dieter Gagel, freelance consultant, mail !eidelberg, German" #$$%

gagel.net

Training Module 7 of 7 Electronic &ersion for download at www.bds-forum.net/training-modules 'or free use (wit)out cop"rig)t* +riginal 'renc) &ersion elaborated on be)alf of GT,--E./ and 0DE-ME, 1enegal +riginal Englis) &ersion financed wit) support of MI1E2E+2 b" means of 34at)olisc)e ,entralstelle f5r Entwic6lungs)ilfe3, German"

Table of 7ontents
Time table Didactic note *+ Procedures for Export Mar,et Preparation .....................................................................8 1ample outline for an e9port plan..................................................................................8 0nal":e foreign mar6et potentials and foreign competitors...........................................# E&aluate t)e e9port potential of "our products...............................................................; E9port strategies ...................................................................................................; -ac6ing and s)ipping "our products..............................................................................< -rice considerations 7 E9port documentation8$ -repare "our management and enterprise presentation for e9port..............................8$ Glossar" of basic terminologies...................................................................................88 #+ Export Procedures - example of Et-iopia .....................................................................8; 2egistration procedures..............................................................................................8= o T)e Et)iopian E9port 0genc" o E9port business registration and licensing o >ualit" e9port products information ?orld @an6: Dealing across borders...........................................................................8A o E9port procedures o Import procedures o E9port and import documents

.+ International Trade Promotion........................................................................................#$ International institutions of trade promotion.................................................................#$ E9port guides #$ /+ E-commerce: Sell and u" t-roug- Internet.................................................................#8 Birtual trade................................................................................................................. #8 Birtual trade platforms on Internet...............................................................................#8 !ow to use &irtual trade platforms...............................................................................## ?eb site e9amples of e9port enterprises.....................................................................## -lanning of an e9port- and action-oriented wor6s)op on submission of products to &irtual mar6ets in t)e Internet..............................................#C 0+ Trade )air !uide.............................................................................................................. #= Trade fair and its rele&ance to micro and small enterprises.........................................#= T"pes of trade fair.......................................................................................................#= Trade fair participation.................................................................................................#< o 1etting obDecti&es, Getting information, +perational planning, @udgeting, 1taff planning, 1trategic stand location, 1tand design, Transportation, @riefing e9)ibitors, -romotion, 7losing, 'ollow-up 1+ Trade )air and Ex-i ition 'ata ases on Internet..........................................................C8 2nnexes Eist of training modules

@usiness De&elopment 1er&ices (@D1* websites and learning platforms

Time ta le A) - 8$)C$ 8$);=-8#) E9port preparation E9port plan, Mar6et potentials, E9port strategies, -artners 7ountr" specific institutions and procedures related to e9port Institutions, 7ountr" specific e9port procedures E9port business registration International Trade promotion Institutions for international trade promotion E9port guides, E-commerce: 1ell and bu" on Internet Trade 'air Guide T"pes of trade fair, -lanning for participation @udgeting, -romotion, 'ollow-up Trade fair databases on Internet

8;) - 8=)C$

8=);= - 87)

'idactic note T)is module mainl" refers to international trade promotion and it is an additional module for e9perienced and ad&anced entrepreneurs wit) a certain e9port and import capacit". T)e business owners will be introduced to t)e main countr" specific and international institutions of trade promotion and trade fair participation. -reparation for e9port s)ould be completed wit) some e9ercises wit) business and product presentations, including product p)otos and descriptions. T)e E-commerce c)apter - virtual markets through Internet - s)ould be &isuali:ed wit) some e9amples on Internet. 1)ow to participants t)e main &irtual mar6ets on Internet (use beamer and Internet connection*. 1)ow also t)e Internet based databases for trade fairs (see c)apter <*. +ne separate training would be a one-wee6 training to present e9port products wit) p)otos and descriptions on t)e main &irtual mar6et platforms (see Mindmap in c)apter ;*. Identif" and contact potential international bu"ers. 'or t)is 6ind of training, "ou need some e9perienced e9port-oriented enterprises wit) products read" for presentation and descriptions and electronic training facilities wit) about 8$ computers. Hand outs for participants !andout 8: 1ample outline of an e9port plan !andout #: 1teps of mar6et researc) !andout C: -repare "our business for e9port !andout ;: Distribution c)annels and intermediaries !andout =: 7)ec6list for pricing aspects !andout <: ?orld ban6 / I'7 o&er&iew table: Dealing across borders !andout 7: ?or6ing plan for trade fair participation

*+ Procedures for Export Mar,et Preparation

E9port business demands entrepreneurial 6now-)ow, effecti&e communication and good understanding of t)e international trade process. T)e in&ol&ement of companies in e9port business is increasing wit) t)e presence of t)e &arious trade incenti&es and pri&ileges bot) from wit)in and t)e rest of t)e worldFs trading partners. To ma9imise t)e benefits, companies s)ould be able to properl" position t)emsel&ed in t)e global mar6et, w)ic) is )ig)l" c)aracterised b" stiff competion as well as end-less inno&ations. Gour compan"Hs readiness to e9port will be determined w)en t)e under mentioned general Iuestions about )ow e9porting will en)ance "our compan"Hs s)ort, medium and long-term goals is answered.: ?)at does t)e compan" want to gain from e9portingJ Is e9porting consistent wit) ot)er compan" goalsJ ?)at demands will e9port place on t)e compan"Hs 6e" resources, management and personnel, production capacit", and finance and )ow will t)ese demands be metJ 0re t)e e9pected benefits wort) t)e costs, or would compan" resources be better used for de&eloping new domestic businessJ +nce "ou )a&e decided to sell "our products abroad, it is time to de&elop an e9port plan. T)e purposes of t)e e9port plan are (a* to assemble facts, constraints, and goals and (b* to create an action statement t)at ta6es all of t)ese into account. T)e statement includes specific obDecti&es, it sets fort) time sc)edules for implementation, and it mar6s milestones so t)at t)e degree of success can be measured and )elp moti&ate personnel.
!andout 8:

Sample 3utline for an Export Plan

Ta le of 4ontents E9ecuti&e 1ummar" (one or two pages, ma9imum* Introduction: 5-" T-is 4ompan" S-ould Export Part I - Export Polic" 4ommitment Statement Part II - Situation6&ac,ground 2nal"sis -roduct or 1er&ice I +perations -ersonnel and E9port +rgani:ation I 2esources of t)e 'irm Industr" 1tructure, 7ompetition, and Demand Part III - Mar,eting 4omponent Identif"ing, E&aluating, and 1electing Target Mar6ets -roduct 1election and -ricing I Distribution Met)ods Terms and 7onditions I Internal +rgani:ation and -rocedures 1ales Goals: -rofit and Eoss 'orecasts Part I7 - Tactics: 2ction Steps -rimar" Target 7ountries I 1econdar" Target 7ountries I Indirect Mar6eting Efforts Part 7 - Export &udget -ro 'orma 'inancial 1tatements Part 7I - Implementation Sc-edule 'ollow-up I -eriodic +perational and Management 2e&iew (results &ersus plan* 2nnexes: &ac,ground 'ata on Target 4ountries and Mar,et @asic Mar6et 1tatistics: !istorical and -roDected @ac6ground 'acts 7ompetiti&e En&ironment

2nal"8e foreign mar,et potentials and foreign competitors Mar,et researcTo successfull" e9port "our product, "ou s)ould e9amine foreign mar6ets t)roug) researc). T)e purpose is to identif" mar6eting opportunities and constraints abroad, as well as to identif" prospecti&e bu"ers and customers. Mar6et researc) encompasses all met)ods t)at a compan" can use to determine w)ic) foreign mar6ets )a&e t)e best potential for its products. 2esults of t)is researc) inform t)e firm about: t)e largest mar6ets for its product, t)e fastest growing mar6ets, mar6et trends and outloo6, mar6et conditions and practices, and competiti&e firms and products. 0 firm ma" researc) a mar6et b" using eit)er primar" or secondar" data resources. In conducting primar" mar6et researc), a compan" can collect data directl" from t)e foreign mar6etplace t)roug) inter&iews, sur&e"s, and ot)er direct contacts wit) representati&es and potential bu"ers. -rimar" mar6et researc) )as t)e ad&antage of being tailored to t)e compan"Hs needs and pro&ides answers to specific Iuestions, but t)e collection of suc) data is time-consuming and e9pensi&e. ?)en conducting secondar" mar6et researc), a compan" collects data from &arious sources, suc) as trade statistics for a countr" or a product. ?or6ing wit) secondar" sources is less e9pensi&e and )elps t)e compan" focus its mar6eting efforts. 0lt)oug) secondar" data sources are critical to mar6et researc), t)e" do )a&e limitations because it is less specific. !etting organi8ed for export mar,et 9 Issues to consider Internal compan" assessment 0deIuate and Iualified staff to )andle e9port related communications and monitor t)e processK 1ufficient production capacit"K 0deIuate wor6ing capital to ma6e Iuic6 purc)ase of raw material, accessories and in&estment capital, if need beK Good mar6eting strateg" wit) sufficient amount of mar6eting budgetK 7ost effecti&eness in production and competiti&e labor producti&it" to o&ercome international price competitionK 0cceptable le&el of product Iualit" b" international mar6et. )oreign mar,et anal"sis Des6 researc): mainl" t)roug) browsing compan" websites and contacting promotional institutions/programsK 'ield researc)K 0nal"sis of trade intermediaries, i.e. t)at of direct and indirect distributorsK General mar6eting factors: consumer tastes and preferences, trends in competition, Iuotation and pa"ment terms, standards used L weig)ts and measuresK Eeading import )ousesK Main s)ipping and air lin6sK 2ele&ant go&ernment ministries and departmentK -ricing structures for productsK Trade fairsK Eist of potential distributors and agentsK General import polic" of t)e destination countr". Transport and communications

Main ports and facilitiesK 1)ipping ser&ices and costsK 'reig)t ser&icesK Inland transport routesK 7ondition of roads.

Special customs pro(isions Entr" regulations and proceduresK 1amples, ad&ertising and postal pac6agesK Dut" rates, if an". Social and fair trade compliances 7ompliance wit) laws and wor6place safet" -ro)ibition of forced labor -ro)ibition of c)ild labor -ro)ibition of )arassement/abuse -ro)ibition of discrimination !ours of wor6 En&ironment !ealt) and safet" 7ustoms compliance 1ecurit" (drugs and e9plosi&e s)ipments* 3t-er factors 0ccess to information on foreign e9c)ange controls, repatriation of profits, con&ertibilit" of currenc" 0ccess to information on food, )ealt), safet" and Iuarantine regulations (especiall" for food and drug items*.
!andout #: Mar,et researc +btain e9port statistics t)at indicate product e9ports to &arious countries. Identif" fi&e to ten large and fast-growing mar6ets for t)e firmHs product. Identif" some smaller but fast-emerging mar6ets t)at ma" pro&ide groundfloor opportunities. If t)e mar6et is Dust beginning to open up, t)ere ma" be fewer competitors t)an in establis)ed mar6ets. Growt) rates s)ould be substantiall" )ig)er in t)ese countries to Iualif" as up-and-coming mar6ets, gi&en t)e lower starting point. Target t)ree to fi&e of t)e most statisticall" promising mar6ets for furt)er assessment. E9amine trends for compan" products as well as related products t)at could influence demand. 0scertain t)e sources of competition, including t)e e9tent of domestic industr" production and t)e maDor foreign countries t)e firm is competing against in eac) targeted mar6et b" using competiti&e assessments. 0nal":e factors affecting mar6eting and use of t)e product in eac) mar6et, suc) as end-user sectors, c)annels of distribution, cultural idios"ncrasies, and business practices.

Identif" an" foreign barriers (tariff or no tariff* for t)e product being imported into t)e countr".

E(aluate t-e export potential of "our products

T)ere are se&eral wa"s to e&aluate t)e e9port potential of "our products and ser&ices in o&erseas mar6ets. T)e most common approac) is to e9amine t)e success of "our products domesticall". If "our compan" succeeds at selling in t)e local mar6et, t)ere is a good c)ance t)at it will also be successful in mar6ets abroad, at least t)ose w)ere similar needs and conditions e9ist. 0not)er means to assess "our compan"Hs potential in e9porting is b" e9amining t)e uniIue or important features of "our product. If t)ose features are )ard to duplicate abroad, t)en it is li6el" t)at "ou will be successful o&erseas. 0 uniIue product ma" )a&e little competition and demand for it mig)t be Iuite )ig). !andout C: Prepare "our enterprise for export
?)ic) products are selected for e9port de&elopmentJ ?)at modifications, if an", must be made to adapt t)em for o&erseas mar6etsJ ?)ic) countries are targeted for sales de&elopmentJ In eac) countr", w)at is t)e basic customer profileJ ?)at mar6eting and distribution c)annels s)ould be used to reac) customersJ ?)at special c)allenges pertain to eac) mar6et (competition, cultural differences, import controls, etc.*, and w)at strateg" will be used to address t)emJ !ow will t)e productHs e9port sale price be determinedJ ?)at specific operational steps must be ta6en and w)enJ ?)at will be t)e time frame for implementing eac) element of t)e planJ ?)at personnel and compan" resources will be dedicated to e9portingJ ?)at will be t)e cost in time and mone" for eac) elementJ !ow will results be e&aluated and used to modif" t)e planJ

Export strategies T)e most common met)ods of e9porting are indirect and direct selling. In indirect selling, an e9port intermediar" suc) as an e9port management compan" (EM7* or an e9port trading compan" (ET7* normall" assumes responsibilit" for finding o&erseas bu"ers, s)ipping products, and getting paid. In direct selling, producer deals directl" wit) a foreign bu"er. T)e paramount consideration in determining w)et)er to mar6et indirectl" or directl" is t)e le&el of resources a compan" is willing to de&ote to its international mar6eting effort. +t)er factors to consider w)en deciding w)et)er to mar6et indirectl" or directl" include:

T)e si:e of "our firmK T)e nature of "our productsK -re&ious e9port e9perience and e9pertiseK @usiness conditions in t)e selected o&erseas mar6ets.

T)e wa" "our compan" c)ooses to e9port its products can )a&e a significant effect on its e9port plan and specific mar6eting strategies. T)e basic distinction among approac)es to

e9porting relates to t)e compan"Hs le&el of in&ol&ement in t)e e9port process. T)ere are at least four approac)es, w)ic) ma" be used alone or in combination: 8. Passively filling orders from domestic buyers who then export the product. T)ese sales are indistinguis)able from ot)er domestic sales as far as t)e original seller is concerned. 1omeone else )as decided t)at t)e product in Iuestion meets foreign demand. T)at part" ta6es all t)e ris6 and )andles all of t)e e9porting details, in some cases wit)out e&en t)e awareness of t)e original seller. (Man" companies ta6e a stronger interest in e9porting w)en t)e" disco&er t)at t)eir product is alread" being sold o&er-seas.* #. Seeking out domestic buyers who represent foreign end users or customers. Man" /.1. and foreign corporations, general contractors, foreign trading companies, foreign go&ernment agencies, foreign distributors and retailers, and ot)ers in t)e /nited 1tates purc)ase for e9port. T)ese bu"ers are a large mar6et for a wide &ariet" of goods and ser&ices. In t)is case a compan" ma" 6now its product is being e9ported, but it is still t)e bu"er w)o assumes t)e ris6 and )andles t)e details of e9porting. C. Exporting indirectly through intermediaries. ?it) t)is approac), a compan" engages t)e ser&ices of an intermediar" firm capable of finding foreign mar6ets and bu"ers for its products. EM7s, ET7s, international trade consultants, and ot)er intermediaries can gi&e t)e e9porter access to well-establis)ed e9pertise and trade contacts. Get, t)e e9porter can still retain considerable control o&er t)e process and can reali:e some of t)e ot)er benefits of e9porting, suc) as learning more about foreign competitors, new tec)nologies, and ot)er mar6et opportunities. ;. Exporting directly. T)e compan" sells directl" to foreign bu"ers. T)is approac) is t)e most ambitious and difficult, since t)e e9porter personall" )andles e&er" aspect of t)e e9porting process from mar6et researc) and planning to foreign distribution and collections. 7onseIuentl", a significant commitment of management time and attention is reIuired to ac)ie&e good results. !owe&er, t)is approac) ma" also be t)e best wa" to ac)ie&e ma9imum profits and long-term growt). ?it) appropriate )elp and guidance from t)e Department of 7ommerce, state trade offices, freig)t forwarders, international ban6s, and ot)er ser&ice groups, e&en small or mediumsi:ed firms can e9port directl" if t)e" are able to commit enoug) staff time to t)e effort. 'or t)ose w)o cannot ma6e t)at commitment, t)e ser&ices of an EM7, ET7, trade consultant, or ot)er Iualified intermediar" are indispensable.
!andout ;: 'istri ution c-annels and intermediaries ?)ic) c)annels of distribution s)ould t)e firm use to mar6et its products abroadJ ?)ere s)ould t)e firm produce its products and )ow s)ould it distribute t)em in t)e foreign mar6etJ ?)at t"pes of representati&es, bro6ers, w)olesalers, dealers, distributors, or end-use customers, and so fort) s)ould t)e firm useJ ?)at are t)e c)aracteristics and capabilities of t)e a&ailable intermediariesJ 1)ould t)e assistance of an EM7 or ET7 be obtainedJ

Export intermediaries are of man" different t"pes, ranging from giant international companies to )ig)l" speciali:ed, small operations. T)e" pro&ide a multitude of ser&ices, suc)

as performing mar6et researc), appointing o&erseas distributors or commission representati&es, e9)ibiting a clientHs products at international trade s)ows, ad&ertising, s)ipping, and arranging documentation. In s)ort, t)e intermediar" can often ta6e full responsibilit" for t)e e9port end of t)e business, relie&ing t)e manufacturer of all t)e details e9cept filling orders. Intermediaries ma" wor6 simultaneousl" for a number of e9porters on t)e basis of commissions, salar", or retainer plus commission. 1ome ta6e title to t)e goods t)e" )andle, bu"ing and selling in t)eir own rig)t. -roducts of a trading compan"Hs clients are often related, alt)oug) t)e items usuall" are non-competiti&e. +ne ad&antage of using an intermediar" is t)at it can immediatel" ma6e a&ailable mar6eting resources t)at a smaller firm would need "ears to de&elop on its own. Man" e9port intermediaries also finance sales and e9tend credit, facilitating prompt pa"ment to t)e e9porter. T)e foreign distributor generall" pro&ides support and ser&ice for t)e product, t)us relie&ing t)e purc)asing compan" of t)ese responsibilities. T)e distributor usuall" carries an in&entor" of products and a sufficient suppl" of spare parts and also maintains adeIuate facilities and personnel for normal ser&icing operations.

S-ipping "our products Pac,ing and s-ipping ?)en s)ipping a product o&erseas, t)e e9porter must be aware of pac6ing, labelling, documentation, and insurance reIuirements. It is important t)at e9porters ensure t)at t)e merc)andise is:

-ac6ed correctl" so t)at it arri&es in good conditionK Eabelled correctl" to ensure t)at t)e goods are )andled properl" and arri&e on time at t)e rig)t placeK Documented correctl" to meet /.1. and foreign go&ernment reIuirements, as well as proper collection standardsK and Insured against damage, loss, pilferage and dela".

Most e9porters rel" on an international freig)t forwarder to perform t)ese ser&ices because of t)e multitude of considerations in&ol&ed in p)"sicall" e9porting goods. E9porters s)ould be aware of t)e demands t)at international s)ipping puts on pac6aged goods and s)ould Deep four potential problems in mind w)en designing an e9port s)ipping crate: brea6age, moisture, pilferage and e9cess weig)t. @e sure t)e goods are prepared using t)ese guidelines:

-ac6 in strong containers, adeIuatel" sealed and filled w)en possible. To pro&ide proper bracing in t)e container, regardless of si:e, ma6e sure t)e weig)t is e&enl" distributed. Goods s)ould be palleti:ed and w)en possible containeri:ed. -ac6ages and pac6ing filler s)ould be made of moisture-resistant material. To a&oid pilferage, a&oid writing contents or brand names on pac6ages. +t)er safeguards include using straps, seals, and s)rin6 wrapping. +bser&e an" product-specific )a:ardous materials pac6ing reIuirements.

Mormall", air s)ipments reIuire less )ea&" pac6ing t)an ocean s)ipments, t)oug) t)e" s)ould still be adeIuatel" protected, especiall" if t)e" are )ig)l" pilferable. In man" instances, standard domestic pac6ing is acceptable, especiall" if t)e product is durable and

t)ere is no concern for displa" pac6aging. 'inall", because transportation costs are determined b" &olume and weig)t, speciall" reinforced and lig)tweig)t pac6ing materials )a&e been de&eloped for e9porting. -ac6ing goods to minimi:e &olume and weig)t w)ile reinforcing t)em ma" sa&e mone", as well as ensure t)at t)e goods are properl" pac6ed. It is recommended t)at a professional firm be )ired to pac6 t)e products if t)e supplier is not eIuipped to do so. T)is ser&ice is usuall" pro&ided at a moderate cost. Mar,ing and :a elling 1pecific mar6ing and labelling is used on e9port s)ipping cartons and containers to: Meet s)ipping regulationsK Ensure proper )andlingK 7onceal t)e identit" of t)e contentsK !elp recei&ers identif" s)ipmentsK and Insure compliance wit) en&ironmental and safet" standards. Price considerations T)e price considerations listed below will )elp an e9porter determine t)e best price for t)e product o&erseas.

0t w)at price s)ould t)e firm sell its product in t)e foreign mar6etJ ?)at t"pe of mar6et positioning (customer perception* does t)e compan" want to con&e" from its pricing structureJ Does t)e e9port price reflect t)e productHs Iualit"J Is t)e price competiti&eJ 1)ould t)e firm pursue mar6et penetration or mar6et-s6imming pricing obDecti&es abroadJ ?)at t"pe of discount (trade, cas), Iuantit"* and allowances (ad&ertising, trade-off* s)ould t)e firm offer its foreign customersJ 1)ould prices differ b" mar6et segmentJ ?)at s)ould t)e firm do about product line pricingJ ?)at pricing options are a&ailable if t)e firmHs costs increase or decreaseJ Is t)e demand in t)e foreign mar6et elastic or inelasticJ 0re t)e prices going to be &iewed b" t)e foreign go&ernment as reasonable or e9ploitati&eJ Do t)e foreign countr"Hs antidumping laws pose a problemJ

0s in t)e domestic mar6et, t)e price at w)ic) a product or ser&ice is sold directl" determines a firmHs re&enues. It is essential t)at a firmHs mar6et researc) include an e&aluation of all of t)e &ariables t)at ma" affect t)e price range for t)e product or ser&ice. If a firmHs price is too )ig), t)e product or ser&ice will not sell. If t)e price is too low, e9port acti&ities ma" not be sufficientl" profitable or ma" actuall" create a net loss. T)e traditional components of determining proper pricing are costs, mar6et demand, and competition. Eac) of t)ese must be compared wit) t)e firmHs obDecti&e in entering t)e foreign mar6et. 0n anal"sis of eac) component from an e9port perspecti&e ma" result in e9port prices t)at are different from domestic prices. It is also &er" important t)at t)e e9porter ta6es into account additional costs t)at are t"picall" born b" t)e importer. T)e" include tariffs, customs fees, currenc" fluctuation transaction costs and &alue-added ta9es (B0Ts*. T)ese additional costs can add substantiall" to t)e final price paid b" t)e importer, sometimes resulting in a total of more t)an double t)e /.1. domestic price. +t)er costs s)ould be assessed for domestic and e9port products according to )ow muc) benefit eac) product recei&es from suc) e9penditures. 0dditional costs often associated wit) e9port sales include: Mar6et researc) and credit c)ec6sK

@usiness tra&elK International postage, cable, and telep)one ratesK Translation costsK 7ommissions, training c)arges, and ot)er costs in&ol&ing foreign representati&esK 7onsultants and freig)t forwardersK and -roduct modification and special pac6aging.

0fter t)e actual cost of t)e e9port product )as been calculated, t)e e9porter s)ould formulate an appro9imate consumer price for t)e foreign mar6et.
Sample 4ost-Plus 4alculation of Product 4ost (:4) 'omestic Sale Export Sale 'actor" price 7.=$ 7.=$ Domestic freig)t .7$ .7$ subtotal %.#$ %.#$ E9port documentation .=$ subtotal %.7$ +cean freig)t and insurance 8.#$ subtotal A.A$ Import dut" 8.8A (8# N of landed cost* subtotal 88.$A ?)olesaler mar6up (8= N* 8.#C subtotal A.;C Importer/distributor mar6up #.;; subtotal 8C.=C 2etail mar6up (=$ N* ;.7# <.77 )inal consumer price */+*0 #$+.$

!andout =: -ricing

4-ec,list for pricing

In summar", )ere are t)e 6e" points to remember w)en determining "our productHs price: Determine t)e obDecti&e in t)e foreign mar6et. 7ompute t)e actual cost of t)e e9port product. 7ompute t)e final consumer price. E&aluate mar6et demand and competition. 7onsider modif"ing t)e product to reduce t)e e9port price. Include 3no mar6et3 costs, suc) as tariffs and customs fees. E9clude cost elements t)at pro&ide no benefit to t)e e9port function, suc) as domestic ad&ertising.

)inancing Export Transactions E9port financing is often a 6e" factor in a successful sale. 7ontract negotiation and closure are important, but at t)e end of t)e da", "our compan" must get paid. E9porters naturall" want to get paid as Iuic6l" as possible, w)ile importers usuall" prefer to dela" pa"ment until t)e" )a&e recei&ed or resold t)e goods. @ecause of t)e intense competition for e9port mar6ets, being able to offer attracti&e pa"ment terms customar" in t)e trade is often necessar" to ma6e a sale. E9porters s)ould be aware of t)e man" financing options open to t)em so t)at t)e" c)oose t)e most acceptable one to bot) t)e bu"er and t)e seller. In man" cases, go&ernment assistance in e9port financing for small and medium-si:ed

businesses can increase a firmHs options. T)e following factors are important to consider in ma6ing decisions about financing:

T)e need for financing to ma6e t)e sale. In some cases, fa&ourable pa"ment terms ma6e a product more competiti&e. If t)e competition offers better terms and )as a similar product, a sale can be lost. In ot)er cases, t)e bu"er ma" )a&e preference for bu"ing from a particular e9porter, but mig)t bu" "our product because of s)orter or more secure credit terms. T)e lengt) of time t)e product is being financed. T)is determines )ow long t)e e9porter will )a&e to wait before pa"ment is recei&ed and influences t)e c)oice of )ow t)e transaction is financed. T)e cost of different met)ods of financing. Interest rates and fees &ar". ?)ere an e9porter can e9pect to assume some or all of t)e financing costs, t)eir effect on price and profit s)ould be well understood before a pro forma in&oice is submitted to t)e bu"er. T)e ris6s associated wit) financing t)e transaction. T)e ris6ier t)e transaction, t)e )arder and more costl" it will be to finance. T)e political and economic stabilit" of t)e bu"erHs countr" can also be an issue. To pro&ide financing for eit)er accounts recei&able or t)e production or purc)ase of t)e product for sale, t)e lender ma" reIuire t)e most secure met)ods of pa"ment, a letter of credit (possibl" confirmed*, or e9port credit insurance or guarantee. T)e need for pre-s)ipment finance and for post-s)ipment wor6ing capital. -roduction for an unusuall" large order, or for a surge of orders, ma" present une9pected and se&ere strains on t)e e9porterHs wor6ing capital. E&en during normal periods, inadeIuate wor6ing capital ma" curb an e9porterHs growt). !owe&er, assistance is a&ailable t)roug) public and pri&ate sector resources discussed in t)is c)apter.

'or )elp in determining w)ic) financing options ma" be a&ailable or t)e most beneficial to "our e9porting endea&ours, t)e following sources ma" be consulted: Gour ban6erK Gour local Department of 7ommerce E9port 0ssistance 7entre (E07*K Gour local 1mall @usiness 0dministration officeK T)e E9port-Import @an6s suc) as t)at found in ?as)ington, D.7. and selected citiesK Gour state e9port promotion or e9port finance officeK Export Intermediaries In addition to acting as e9port representati&es, man" e9port intermediaries, suc) as e9port trading companies (ET7s* and e9port management companies (EM7s*, can )elp finance e9port sales. 1ome of t)ese companies ma" pro&ide s)ort-term financing or ma" simpl" purc)ase t)e goods to be e9ported directl" from t)e manufacturer, t)us eliminating an" ris6s associated wit) t)e e9port transaction as well as t)e need for financing. 1ome of t)e larger companies ma" ma6e counter trade arrangements t)at substitute for financing in some cases. &u"ers and Suppliers as Sources of )inancing 'oreign bu"ers of capital goods ma" ma6e down pa"ments t)at reduce t)e need for financing from ot)er sources. In addition, bu"ers ma" ma6e progress pa"ments as t)e goods are completed, w)ic) also reduce ot)er financing reIuirements. Eetters of credit t)at allow for progress pa"ments upon inspection b" t)e bu"erHs agent or receipt of a statement b" t)e e9porter t)at a certain percentage of t)e product )as been completed are not uncommon. Pro forma

0 Iuotation describes t)e product, states a price for it, sets t)e time of s)ipment, and specifies t)e terms of t)e sale and terms of t)e pa"ment. 1ince t)e foreign bu"er ma" not be familiar wit) t)e product, t)e description of it in an o&erseas Iuotation usuall" must be more detailed t)an in a domestic Iuotation. T)e description s)ould include t)e following 8= points: 8. 1ellerHs and bu"erHs names and addresses. #. @u"erHs reference number and date of inIuir". C. Eisting of reIuested products and brief description. ;. -rice of eac) item (it is ad&isable to indicate w)et)er items are new or used and to Iuote in /.1. dollars to reduce foreign-e9c)ange ris6*. =. 0ppropriate gross and net s)ipping weig)t (in metric units w)ere appropriate*. <. 0ppropriate total cubic &olume and dimensions pac6ed for e9port (in metric units w)ere appropriate*. 7. Trade discount (if applicable*. %. Deli&er" point. A. Terms of sale. 8$. Terms of pa"ment. 88. Insurance and s)ipping costs. 8#. Balidit" period for Iuotation. 8C. Total c)arges to be paid b" customer. 8;. Estimated s)ipping date from /.1. port or airport. 8=. 7urrenc" of sale. Terms of sale In an" sales agreement, it is important t)at t)ere is a common understanding of t)e deli&er" terms since confusion o&er t)eir meaning can result in a lost sale or a loss on a sale. Export documentation T)e following documents are commonl" used in e9portingK but w)ic) of t)em are necessar" in a particular transaction depends on t)e reIuirements of t)e /.1. go&ernment and t)e go&ernment of t)e importing countr".

0ir freig)t s)ipments are )andled b" air waybills, w)ic) can ne&er be made in negotiable form. 0 bill of lading is a contract between t)e owner of t)e goods and t)e carrier. T)e customer usuall" needs an original as proof of owners)ip to ta6e possession of t)e goods. 0 commercial invoice is a bill for t)e goods from t)e seller to t)e bu"er. 0 certificate of origin is a document t)at is reIuired in certain nations. It is a signed statement as to t)e origin of t)e e9port item. 7ertificate of origin are usuall" signed t)roug) a semi-official organi:ation, suc) as a local c)amber of commerce. 0 certificate ma" still be reIuired e&en if t)e commercial in&oice contains t)e information. 0n export license is a go&ernment document t)at aut)ori:es t)e e9port of specific goods in specific Iuantities to a particular destination. T)is document ma" be reIuired for most or all e9ports to some countries or for ot)er countries onl" under special circumstances. 0n export packing list considerabl" more detailed and informati&e t)an a standard domestic pac6ing list. 0n insurance certificate is used to assure t)e consignee t)at insurance will co&er t)e loss of or damage to t)e cargo during transit.

T)e number and 6ind of documents t)e e9porter must deal wit) &aries depending on t)e destination of t)e s)ipment. @ecause eac) countr" )as different import regulations, t)e e9porter must be careful to pro&ide all proper documentation.

!lossar" of asic terminologies 6 I;43TE<MS E9wor6s (EO?*: means t)e seller/e9porter fulfils )is obligations to deli&er w)en )e )as made t)e goods a&ailable at )is premises (i.e. wor6, factor", and ware)ouse* to t)e bu"er. T)e importer bears all t)e costs and ris6s in&ol&ed in ta6ing t)e goods from t)e sellerFs premises to t)e desired destination. 'ree 7arrier ('70*: T)e seller fulfils )is obligation to deli&er w)en )e )as )anded o&er t)e goods, cleared for e9port, into t)e c)arge of t)e carrier named b" t)e bu"er at t)e named place or point. 7arrier: means an" person w)o is in a contract of carriage b" rail, air, sea and land or b" a combination of suc) modes. 'ree on @oard ('+@*: means t)at t)e seller fulfils )is obligation to deli&er w)en t)e goods )a&e been passed o&er t)e s)ipFs rail at t)e named port of s)ipment. T)e bu"er )as to bear t)e costs and ris6s of loss or damage to t)e goods from t)at point. 7ost and 'reig)t (7'2*: means t)at t)e e9porter must pa" t)e cost and freig)t necessar" to bring t)e goods to t)e named port of destination, but t)e ris6 of loss or damage to t)e goods as well as an" additional costs due to an" e&ents occurring after t)e time t)e goods )a&e been deli&ered on board t)e &essel is transferred from t)e seller to t)e bu"er w)en t)e goods pass t)e s)ipFs rail in t)e s)op of s)ipment. 7ost Insurance and 'reig)t (7I'*: t)e seller )as t)e same obligation as under 7'2 abo&e but wit) additional t)at t)e seller )as to procure cargo insurance at t)e bu"erFs ris6 of loss or damage to t)e goods during t)e carriage. T)e seller contracts for insurance and pa"s t)e premium. 0d&ance -a"ment: pa"ment for t)e goods is done at a time of placing t)e order or sometimes before t)e goods )a&e been s)ipped. 1ales on +pen 0ccount: T)e e9porter sends goods to t)e foreign bu"er abroad, prepares and sends in&oice and waits for pa"ment, w)ic) )as to be made on an agreed date. Documentar" 7redit: in&ented b" ban6s and t)e bu"er (customer, importer* is 6nown as t)e 0pplicant. T)e seller (supplier, e9porter* is 6nown as t)e @eneficiar". T)e bu"er opens t)e credit at )is usual ban6 (6nown as issuing ban6*. T)e issuing ban6 accordingl" transmits t)e documentar" credit to its correspondent ban6 in t)e e9porterFs countr" t)roug) its networ6. T)e latter is called 0d&ising @an6. Eetter of 7redit (E/7*: is a written instruction issued b" a ban6 L called t)e issuing ban6 or opening ban6 at t)e reIuest of t)e bu"er/importer. It is an underta6ing from t)e bu"erFs ban6 to t)e e9porterFs ban6 t)at pa"ment will be made against certain documents suc) as in&oice, certificate of origin, certificate of Iualit" and bill of lading (for sea transport* or wa"bill (for road or rail transport* or air-wa"bill (for air transport*. T)e importer aut)ori:es t)e e9porter to draw drafts for pa"ment on E/7 in accordance wit) its stated terms and conditions. 2e&ocable and Irre&ocable Eetters of 7redit: 0n irre&ocable letter of credit cannot be amended or canceled wit)out t)e agreement of all t)e parties concerned. In contrast a re&ocable letter of credit can be modified or cancelled at an" time wit)out prior notice to t)e bu"er. 0ll letters of credit e9plicitl" state w)et)er t)e" are re&ocable or not, if t)ere is no clear indication of t)is, it is assumed t)at t)e E/7 is re&ocable. 7as) 0gainst Documents (70D*: pa"ment is made as set out in t)e contract. Documents s)ould be presented to t)e bu"er before pa"ment is made. T)e documents are usuall" presented to t)e bu"erFs ban6 or agent and are sent to t)e bu"er against prompt pa"ment. @ills of E9c)ange: it is an unconditional order in writing, addressed b" one person to anot)er, signed b" t)e person gi&ing it reIuiring t)e person to w)ic) it is addressed to

pa", on demand, or at a fi9ed or determined future time, a certain amount of mone" to a specified person, or to t)e bearer.

Prepare "our management and enterprise presentation for export Management and staff 0 compan" new to e9porting generall" treats its e9port sales no differentl" t)an its domestic sales, using e9isting personnel and organi:ational structures. 0s international sales and inIuiries increase, t)e compan" ma" separate t)e management of its e9ports from t)at of its domestic sales. T)e ad&antages of separating international from domestic business include t)e centrali:ation of speciali:ed s6ills needed to deal wit) international mar6ets and t)e benefits of a focused mar6eting effort t)at is more li6el" to increase e9port sales. 0 possible disad&antage is t)at segmentation mig)t be a less efficient use of corporate resources. +nce "our compan" is organi:ed to )andle e9porting, a proper c)annel of distribution needs to be carefull" c)osen for eac) mar6et. T)ese c)annels include sales representati&es, agents, distributors, retailers, and end users. ?)at in-)ouse international e9pertise does t)e firm )a&e (international sales e9perience, language capabilities, etc.*J ?)o will be responsible for t)e e9port departmentHs organi:ation and staffJ !ow muc) senior management time (a* s)ould be allocated and (b* could be allocatedJ ?)at organi:ational structure is reIuired to ensure t)at e9port sales are adeIuatel" ser&icedJ ?)o will follow t)roug) after t)e planning is doneJ 'e(elop "our product presentation @efore contacting commercial partners, "ou s)ould elaborate a detailed presentation of "our products. T)e following c)ec6 list gi&es "ou some ideas: Mame of products and p)otos /sabilit" of t)e product and utili:ation -roduct details: si:e, weig)t, form, presentation, Iualit", material -rice: "ou ma" indicate t)e price or contact first "our commercial partners. Prepare samples In ma6ing contacts to potential bu"ers, "ou must act rapidl" and wit)out an" dela". T)at is w)", before commercial relations)ip "ou s)ould alread" )a&e samples and broc)ures on "our disposal, including a detailed description of "our products. Prepare "our entreprise presentation It is "our product w)ic) is on sale, not "our enterprise. In first line "ou need product presentations and descriptions. Me&ert)eless it will not be wrong to enclose "our business presentation including "our production capacit" and t)e Iualit" of "our ser&ices. T)e business presentation ma" be outlined as follows: business owner, business acti&it" and addressK pictures and )istor" of "our enterpriseK main acti&ities, products and ser&icesK references of commercial acti&ities successfull" ac)ie&ed.

T)e business presentation ma" be publis)ed on classic support li6e broc)ures. @ut for international relations it will be better to publis) on 7D-2+M or on a web site in Internet, because "our web site s)ows t)e modern &ision of "our business. In addition, man" bu"ers are interested in 6nowing t)e following: -roduction capacit" per mont). Materials used. Deli&er" inter&al. 1)ipment time to destination, sa", Mairobi - Genua. Does "our compan" manufacture or purc)ase products for e9portJ If purc)ase, from w)ic) countr" J Eist of t)e countries "ou e9port to, if an". Does "our compan" )a&e t)e financial resources to meet e9panded productionJ Do "ou )a&e a business planJ 0n" particular training, and/or financing assistance a&ailable. !as "our compan" participated in trade s)ows in t)e past, if so w)ic) onesJ Gour ban6Fs name, address, telep)one and fa9 number. Eanguage preference for proposals and communications and ot)er reIuirements t)at will influence t)e partners)ip or sale ?)at 6ind of information does "our compan" want t)e responder to include in its Eetter of InterestJ 1pecif" format, if applicable. Eist of credentials and professional members)ips, w)ic) "our compan" is a member ?)at certifications or trade preferences does "our compan" )a&e for t)ese productsJ Eist current or past clients as references (client name, telep)one, email*

#+

Export procedures in Et-iopia

#+*

2 out t-e Export Promotion 'epartment under t-e Ministr" of Trade and Industr"

5-at is t-e EEP2= T)e E9port -romotion Department is a Go&ernment office t)at was establis)ed wit) t)e obDecti&e of promoting t)e countr"Hs e9ports. It is one of t)e functional departments under t)e Ministr" of Trade and Industr". Ser(ices -rofessional support ()ands-on tec)nical assistance* and training to e9porters, in line wit) t)e newl" adopted e9port de&elopment strateg"K alle&iation of problems faced b" e9porters b" ensuring t)at e9port-related procedures of institutions rele&ant to e9port trade are conduci&e to t)e countr"Fs e9port de&elopmentK underta6ing and dissemination of studies wit) regard to mar6et on e9portable products t)at will en)ance t)e countr"Fs competiti&eness in o&erseas mar6etsK lin6age of Et)iopian e9porters wit) foreign importersK pro&ision of support to e9porters allowing t)em to participate in regional and international trade fairs as well as ot)er trade promotion e&entsK collect, anal":e and disseminate trade-related information to t)e business communit" and pro&ide inIuir" repl" ser&icesK encourage t)e e9istence of coordinated and efficient wor6ing arrangements among producers, e9porters and ser&ice pro&iders.

2ddress -.+.@o9 <A;= 0ddis 0baba Tel #=8-88-==$;;7A, 'a9 #=8-88-==$;7<<

#+#

Export procedures 9 t-e case of Et-iopia

+nce an e9porting compan" is legall" establis)ed t)e &arious procedures t)at are regularl" necessar" to follow, in order to ma6e e9ports successful are t)e following. #+#+* 3rder 2c,no>ledgement to t-e &u"er T)is in&ol&es t)e production of internal instructions on t)e part of t)e e9porter wit) regard to t)e wor6, production and preparation of t)e goods for t)e e9port order. #+#+# )inali8ation of t-e Export 4ontract 'inali:e t)e e9port contract, stipulating t)e met)od of pa"ment for t)e e9port consignment, and submit a cop" to t)e respecti&e commercial ban6 b" an" of t)e following met)ods: )and deli&er", fa9, tele9 or post. 7ommercial ban6s reIuire si9 copies of t)e letter of credit, and fi&e copies of t)e ad&ance pa"ment, cas) against documents, and one consignment note eac). #+#+. 2pplication to Export 2egister t)e e9port order wit) a commercial ban6, w)ic) in turn will issue t)e e9port permit for t)e particular consignment. 0ll sorts of e9ports wit) t)e e9ception of coffee )a&e to be

registered wit) an" of t)e commercial ban6s. +nl" t)e registration for coffee remains at t)e Mational @an6 of Et)iopia. #+#+/ <egistration of Export 4onsignment 'ill in t)e 7ustoms Declaration 0nne9 form issued b" t)e commercial ban6 and submit it to t)e international/foreign business department of t)e ban6. #+#+0 2pplication for ?ualit" Testing and 4ertification ?)en e9port products are read", ma6e arrangements for suitable pac6aging and appl" to t)e >ualit" and 1tandards 0ut)orit" of Et)iopia for Iualit" testing, and acIuire t)e E9port 0ut)ori:ation 7ertificate. #+#+1 4ompliance >it- Mo(ement <e@uirements 7ompliance wit) 2ules of +rigin. 'ill in t)e certificate of origin t)at is issued b" t)e Et)iopian or t)e Dire Dawa 7)ambers of 7ommerce, in order to Iualif" for preferential tariff treatments. 7ompliance wit) Tariff 1c)emes. 'ill in t)e special mo&ement forms or certificates issued b" t)e 7ustoms 0ut)orit". 7urrentl", t)e special mo&ement certificates include t)e E/2I mo&ement certificate t)at is reIuired b" European /nion 7ountries, and form 0 for t)e Generali:ed 1"stem of -references (G1-*, form 0 is reIuired b" its member countries. #+#+7 Insurance of Export 4argo Insure t)e e9port cargo and acIuire t)e insurance certificate or polic" document issued b" an insurance compan". #+#+% 4ustoms 'eclaration In order to a&oid costl" dela"s, t)e e9porter declares all facts about t)e e9port consignment, and all supporting original documents s)ould be forwarded to t)e customs clearing agents to enable customs formalities and aut)ori:ation of t)e dispatc) of t)e e9port goods. 0ccordingl", t)e e9porter must )and o&er t)e E9port -ermit, t)e cop" of t)e 7ustoms Declaration 0nne9 form, t)e Et)iopian 7ustoms Declaration form, t)e 7ertificate of +rigin and t)e special mo&ement forms/certificates (t)e E/2I Mo&ement 7ertificate and t)e G1form 0* to t)e clearing agents. #+#+A Mo(ement of Export 4argo To facilitate t)e mo&ement of goods, transport documents s)ould be acIuired from t)e respecti&e carrier. 0lt)oug) t)e t"pe of transport document depends on t)e mode of transport, t)e documents s)ould be completed and signed b" t)e carrier or its representati&es.

#+.

Export &usiness <egistration and :icensing

T)e opening of a business in Et)iopia reIuires a compulsor" registration prior to )olding a business license. !owe&er, principal registration onl" ta6es place once, regardless of w)ic) commercial acti&ities are underta6en. T)e e9port trade business t)at reIuires registration and licensing b" t)e 'ederal Ministr" of Trade and Industr" can be carried out b" forming different t"pes of business organi:ations, suc) as t)e sole trader, partners)ips, s)are companies, pri&ate limited companies, public companies and cooperati&e societies. #+.+* <egistration Procedure In t)e registration process all reIuired documentation and application forms s)ould be signed b" t)e persons w)o subscribe to t)e declaration and be submitted to t)e Ministr" of Trade and Industr" for &erification and appro&al. ?)en t)is )as been done t)e documents are sent to t)e Ministr" of .ustice for certification and t)en to t)e Ministr" of Information for public announcement of t)e business formation in t)e national newspapers. /pon completion of t)is procedure t)e Ministr" of Trade and Industr" will issue t)e -rincipal 2egistration 7ertificate.

#+.+# Export :icensing Procedure !a&ing now registered, an application for an e9port license s)ould be submitted to t)e Ministr" of Trade and Industr" w)o in turn issues t)e e9port license. T)e documents reIuired for t)e issuing an e9port license are applications in two copies, t)e principal registration certificate, a passport si:e p)otograp), an in&estment permit and residence permit, if a partners)ip e9ists, as well as t)e memorandum and articles of t)e association or contract of partners)ip. T)e e9port license co&ers a duration of twel&e mont)s. 0t t)e end of t)e duration t)e license )as to be renewed not later t)an two mont)s into t)e ne9t fiscal "ear, w)ic) is in accordance wit) Et)iopian law.

#+/

?ualit" Export Products Information

#+/+* 3(er(ie> T)e economic liberali:ation process being underta6en in Et)iopia and t)e strong commitment of its Go&ernment to create a supporti&e en&ironment for t)e de&elopment of t)e pri&ate sector )a&e bot) positi&el" affected t)e growt) of e9ports. E9ports increased b" #;N in 8AA</A7 o&er t)e preceding "ear. 0part from t)e conduci&e and continuall" impro&ing free mar6et-oriented polic" en&ironment, Et)iopia )as &arious ad&antages for t)e de&elopment of its e9port sector. T)ese include t)e abundant and capable labour force, low wage le&els, a wide-ranging weat)er and soil conditions, preferential access to t)e European /nion mar6ets and pro9imit" to t)e MiddleEast mar6ets. T)e preferential access to t)e 7ommon Mar6et for Eastern and 1out)ern 0frican 1tates (7+ME10*, wit) a total population of more t)an #<$ million, also offers substantial mar6et opportunities for se&eral e9port items from Et)iopia. T)e maDor e9port products of Et)iopia include coffee, li&estoc6 products (leat)er, li&e animals and meat*, oil seeds and pulses, fruits, &egetables and flowers, te9tiles, natural gum, spices and mineral products. In addition to t)e efforts underwa" to increase t)e e9port suppl" of t)ese products and to impro&e t)eir Iualit", in&estments in ot)er currentl" une9ploited, )ig)er &alue-added, e9port sectors is )ig)l" encouraged. 2ecogni:ing t)at large capital in&estments are needed to e9ploit t)ese resources, &arious incenti&es are currentl" pro&ided to encourage foreign in&estments (including Doint &entures and mar6eting arrangements*, so t)at t)e sector is able to pro&ide a meaningful contribution to t)e countr"Fs de&elopment. #+/+# 4offee More t)an A$N of t)e nationFs )ar&ested coffee is organicall" produced. T)e in)erentl" superior Iualit" of Et)iopian )ig)land 0rabica coffee is unmatc)ed, particularl" in fla&our and aroma. Et)iopia also produces se&eral t"pes of coffee, t)e water soluble e9tracts of w)ic) can be used for )ot be&erages, iced drin6s, ice creams and in t)e confectioner" industries. #+/+. :i(estoc, Products Et)iopia offers a wide range of processed and semi-processed )ides and s6ins to t)e world mar6et. 1ome of t)e products, suc) as Et)iopian )ig)land s)eeps6in, w)ic) )as gained international reputation for ma6ing glo&es, are well-6nown for t)eir Iualit" and natural c)aracteristics. T)e )ig) Iualit" Et)iopian )ides and s6ins e9ports include: -ic6led s)eep s6in, wet blue s)eep s6in, crust s)eep s6in, wet blue goat s6in, crust goat s6in, crust cow )ides, finis)ed garment leat)er, finis)ed glo&e

leat)er, lining/upper leat)er, suede leat)er, full grain leat)er, corrected grain leat)er, embossed leat)er and patent leat)er T)e e9port of finis)ed leat)er and leat)er products (suc) as leat)er garments, foot wear, glo&es, bags and ot)er leat)er articles* is also )ig)l" promising. #+/+/ :i(e 2nimals and Meat ?it) t)e largest li&estoc6 population in 0frica, Et)iopia )as an ample suppl" base for t)e e9port of li&e animals and meat. Its li&estoc6 resources are estimated at #7 million cattle, #; million s)eep and 8% million goats. Ei&estoc6 )usbandr" is mostl" carried out under natural gra:ing, ma6ing t)e meat and meat products obtained from t)e animals &er" tast" and nutritionall" )ealt)" for )uman consumption. Et)iopiaFs main e9ports of li&e animals and meat products include: 1teers and "earlingsK low land s)eep and goatsK fres) and c)illed lamb and mutton carcassK fres) and c)illed goat carcassK fres) and c)illed &eal carcass and beef four IuartersK fres) and c)illed boneless &eal and beefK fro:en lamb, mutton, goat carcass, &eal and beef special cuts.

#+/+0 3ilseeds and Pulses Et)iopian oilseeds and pulses are 6nown for t)eir fla&our and nutritional &alue as t)e" are mostl" produced organicall". 'or instance, t)e Et)iopian w)ite sesame seed is used as a reference for grading in international mar6ets. MaDor oilseeds and pulses e9ports include: 1esame seed, Miger seeds, linseeds, sunflower seeds, groundnuts, rape seeds, castor oil seeds, pump6in seeds, )aricot beans, pea-beans, )orse beans, c)ic6 peas, lentils.

T)e Gulf 1tates (1audi 0rabia, Gemen, Israel*, European /nion, some 0sian and neig)bouring 0frican countries constitute t)e maDor mar6ets for Et)iopiaFs oilseeds and pulses e9ports. #+/+1 )ruitsB 7egeta les and )lo>ers ?it) a fa&ourable climate, abundant labour, land and water resources, most regions of t)e countr" are suitable for t)e production of a wide range of tropical and sub-tropical fruits, &egetables and flowers. T)e maDor &egetable e9port products are: -otatoes, green beans, o6ra, melons, w)ite and red onions, s)allots, cabbages, lee6s, beetroots, carrots, green c)illis, tomatoes and lettuce. T)e main e9portable fruits are: +ranges, mandarins, grapefruits, mangos, gua&as, lemons and lime. 7ut-flower e9ports include: 1tatices, alliums, roses and carnations. #+/+7 Textile )a rics and !arments T)e te9tile industr" is t)e largest manufacturing industr" in t)e countr". T)ere are more t)an fourteen state-owned and pri&ate maDor te9tile and garment factories. It emplo"s around C$,$$$ wor6ers and constitutes a s)are of C<N of t)e entire manufacturing industr". T)e main te9tile products manufactured in t)e countr" are cotton and n"lon fabrics, acr"lic "arn, woollen and waste cotton blan6ets and sewing t)read. T)e cotton "arn and t)read products include: Garn/bleac)ed or gre"/combed or carded %8/#, 8$, #8 C$, ;$, =$, <$, %$ counts, and ot)ers t)at are in line wit) customer reIuirements. -ure pol"ester and cotton sewing t)read in different colours and counts

o o o o

;$/C, =$/C, <$/C pure cottonK <$/C, 8$$N pol"estersK =,$$$ or 8,$$$ meters in spoolK =,$$$ or 8$,$$$ meters in cones for industrial use.

T)e domestic potential of cotton production, suc) as basic raw material is muc) larger, compared to t)e demand of t)e currentl" installed spinning capacit". T)e a&ailabilit" of c)eap labour is one of t)e maDor parameters for consideration in t)is industrial sector, as it presents one of t)e strategic industries for e9port de&elopment. #+/+% ;atural !um Et)iopia is endowed wit) distinct climatic conditions t)at enables it to grow di&erse plant species, w)ic) can be used for industrial and p)armaceutical purposes. 0cacia, 7ommip)ora and @oswellia could be mentioned as one group of t)e &arious plant species grown in t)e arid and semi-arid areas t)at "ield important gums. T)e trend t)at )as en)anced t)e growt) of gum production o&er t)e past decade )as been t)e increasing consumption of con&enience foods. 0s in most ot)er sectors of t)e additi&es industr", increasing )ealt) consciousness )as tended to fuel growt) for t)ic6eners of natural origin. Gum +libanum deri&ed from @oswellia, gum M"rr), and +ppopone9 deri&ed from 7ommip)ora and gum 0rabic deri&ed from acacia species are t)e maDor gum products t)at are mainl" produced for t)e e9port mar6et. 0part from t)eir p)armaceutical applications, t)ese products )a&e a wide-range of industrial uses in areas suc) as be&erages, candies, c)ewing gums, confectioneries, dair" products, gelatines, nut products, puddings and canned &egetables. T"pical applications include t)eir uses as: ad)esi&e t)ic6enersK t)ic6eners, stabili:ers, fla&our, fi9ati&es and emulsif"ing agents in food productsK clarification in be&eragesK release agents for rubber productsK formulations in cosmetics. #+/+A Tea T)e Iualit" of tea mainl" depends on climatic conditions, t)e t"pe of soil upon w)ic) t)e plant grows and t)e met)od used in processing. In Et)iopia tea is mostl" grown in t)e )ig)land dense forest regions, w)ere t)e land is fertile and t)erefore t)e usage of fertili:ers is &er" minimal. Moreo&er, t)e a&ailabilit" of abundant and c)eap labour in t)e countr" )as made t)e use of manual weeding (instead of c)emical weeding* possible. @ecause of t)is mostl" organic culti&ation, Et)iopian tea is increasingl" soug)t for its aroma and natural fla&ours. T)is is confirmed b" t)e 3International Gold 1tar3 award for Iualit", w)ic) was recentl" awarded b" t)e @.D.I. in Madrid, 1pain to one of t)e maDor Et)iopian tea e9porters PTea -roduction and Mar6eting EnterpriseQ. #+/+*$ Mineral Products 0ccording to studies conducted up-to-date, t)ere are di&ersified mineral deposits a&ailable in man" parts of t)e countr", most of w)ic) can meet e9port standards. Minerals supplied to e9port mar6ets as of "et include gold, platinum, marble, granite and tantalum, )owe&er, in a &er" limited scale as compared to t)e immense potential of t)ese products. +t)er metallic and non-metallic substances, including copper, lead, :inc, sil&er, g"psum, limestone, Iuart: and p"rite )a&e also been identified in &arious parts of t)e countr". Most of Et)iopian mineral products are potentiall" e9portable to countries in East and 1out)ern 0frica, and in t)e 0sia/+ceania mar6et areas. T)is is feasible in bot) of t)ese

regions, due to t)e freig)t cost ad&antages o&er establis)ed e9ports from Europe and Mort) 0merica. Et)iopia )as also recentl" started t)e e9port of )ig) Iualit" dimensional stones, i.e. different t"pes of unprocessed (bloc6s* and processed marble, granite and lime stones suitable for bot) internal and e9ternal uses.

#+/+** 3t-ers 1ome ot)er products t)at Et)iopia e9ports to t)e world mar6et include: spices, ci&et, be&erages, beeswa9, gall-stone, cereals, and fis).

!and out <:

'ealing across orders from ?orld @an6 / I'7:

E9ample of Et)iopia - but on www.doingbusiness.org for all countries a&ailable ;ature of Export Procedures Documents preparation 7ustoms clearance and tec)nical control -orts and terminal )andling Inland transportation and )andling Totals: 'uration (da"s) 8% 8$ 7 88 ;< CSD 4ost 8=$ CC7 =$$ <C$ 8<87

;ature of Import Procedures Documents preparation 7ustoms clearance and tec)nical control -orts and terminal )andling Inland transportation and )andling Totals:

'uration (da"s) 8% A 8$ = ;#

CSD 4ost 7$$ CAC =$$ 8#$$ #7AC

Export documents 7ustoms e9port declaration E9port license !ealt) certificate Insurance certificate -ac6ing list 1)ipment boo6ing Ta9 certificate Truc6 manifest

Import documents @ill of lading 7ertificate of origin 7ommercial in&oice 'oreign e9c)ange aut)ori:ation Import license Insurance documentation -ac6ing list Tec)nical standard/)ealt) certificate

!andout 7:

.+
.+*

International Trade Promotion

International Institutions of Trade Promotion

0 general support for e9porting products to t)e European mar6ets is t)e Export Helpdes, for 'e(eloping 4ountries )ttp://e9port-)elp.cec.eu.int/ I 2eIuirements R Ta9es I Import Tariffs I Ein6s I 7ustoms Documents I 2ules of +rigin I Trade 1tatistics I Mar6et -lace T)e European /nion (E/* pro&ides information on e9porting products to t)e European mar6ets. T)e web site contains custom duties, customs documentation, rule of origin, and trade statistics about E/ mar6ets. !elps business operators to obtain t)e necessar" information on E/ preferential import regimes and lin6s to rele&ant aut)orities and organi:ations in E/ trade operations and up-to-date information on import tariffs. 5orld Trade 3rgani8ation www.wto.org Goods, 1er&ices, Electronic commerce, 2egional trade agreements, Trade polic" re&iews. International Trade 4entre (/M7T0D/?T+* www.intracen.org/ Mar6et anal"sis and de&elopment ser&ices. 1tatistics. 4entre for t-e Promotion of Imports of 'e(eloping 4ountries (4&I) www.cbi.nl/ Met)erlands. E9porters - Importers - @usiness 1upporters. T)e 7entre for t)e -romotion of Imports from De&eloping 7ountries (7@I* is an 0genc" of t)e Dutc) Go&ernment, created in 8A78. It )as t)ree target groups: Medium si:ed e9porters from de&eloping countries, E9port -romotion agencies (T-+s*, and European importers. In order to accomplis) its mission 7@I concentrates on fi&e core competencies. )IT2+ )ederation of International Trade 2ssociations www.fita.org/ European @usiness Director". International Trade Director". 0d&ertising +pportunities. 7alendar of Trade E&ents. Ein6s to 7,$$$ trade related websites. @u" and 1ell. The FITA Buy/Sell Exchange is an international, business-to-business mar6etplace t)at facilitates international trade b" pro&iding Iualified import/e9port trade leads and catalogue posting. &undesagentur fEr 2ussen>irtsc-aft (&)2I) !erman" www.bfai.com 4f? Tenders, @usiness +pportunities !erman &usiness Portal www.german-business-portal.info/ @usiness infrastructure, Industrial sectors, 'oreign trade statistics, Economic data Tradeport CS2 www.tradeport.org 0ll about e9port to /10. Import-E9port guide. 0frican Growt) and +pportunit" 0ct (0G+08* www.agoa.info and www.agoa.go& . .+# Export !uides

2 &asic !uide to Exporting www.un:co.com/basicguide/ De&eloping an e9port strateg" and a mar6et plan, e9port ad&ice, met)ods and c)annels, ma6ing contacts, tec)nolog" licensing, Doint &entures, preparing "our product for e9port, ser&ice e9ports, international legal considerations, s)ipping, pricing, met)ods of pa"ment E9port forms and documentation www.un:co.com/storefront/doc.)tml -roDet 7ommerce International, GT, et 7)ambre Tuniso-0llemande, Tunis #$$= !uide dF2ccGs au Marc-H 2llemand+ Downl.: www.bds-forum.net/international-trade.)tm CI export guide www.e9portbu"er.com/ Information on t)e statistics of &arious countries
1

0G+0 is a dut" free e9port pro&ision/pri&ilage gi&en b" t)e /1 go&ernment to about C% 0frican 7ountries (110*. T)e pro&ision sta"s up to t)e "ear #$8=. Eligible 110 countries can e9port more t)an <,$$$ items to t)e /1 mar6et free of dut" and Iuota. T)e 0G+0 e9port procedures and rele&ant trade information can be referred from t)e stated official website of t)e program.

/+ E-commerce: Sell and u" t-roug- Internet

7irtual Trade Internet )as re&olutioni:ed t)e commercial acti&ities and relations wit) &irtual mar6et places and electronic commerciali:ation and pa"ments. T)e commercial opportunities in t)e Internet are increasing rapidl" wit) a world wide access to international bu"ers and sellers. Birtual mar6ets are international and wit)out frontiers as well as &er" fa&ourable to small countries, small enterprises and indi&idual promoters because access is e&er"w)ere. T)e sole criteria for participation are inno&ati&e and competiti&e Iualit" products and modern pa"ment procedures b" ban6 transfer. !ereafter we present t)e main international &irtual e-commerce platforms. Most of t)e &irtual mar6et places offer ser&ices for bu"ers and sellers for free - "ou are allowed to present "our products including pictures and descriptions. 7irtual Trade Platforms in Internet 2li a a. )ttp://importer.alibaba.com/ T)e most important &irtual mar6et for import-e9port in t)e Internet. 1ell and bu". Data base on )ow to find bu"ers. )ttp://importer.alibaba.com/bu"Sleads/;c8p/Te9tilesSEeat)erS-roducts.)tml 0ll categories of te9tile and leat)er products 3ne Trade 5orld Mar,et Place www.onetrade.bi:/ot/ 1ell and bu". Industrial sectors and agriculture. T-e Import-Export Help &u"6Sell Exc-ange )ttp://ime9)elp.worldbid.com/ International trade leads, and tender opportunities from companies and go&ernment organi:ations around t)e world. +&er C;$,$$$ businesses )a&e registered wit) us to )elp increase t)eir sales, reduce supplier costs, and find new business contacts. T)e ImportE9port !elp @u"/1ell E9c)ange is an online international mar6etplace designed to )elp small to mid-si:ed companies do business. ?)et)er it is bu"ing or selling products or ser&ices, domesticall" or internationall", we are confident our mar6etplace will meet "our compan"Hs needs. 7ompan" 1)owroom: Gour 7ompan" )as t)e opportunit" to s)owcase "our product or ser&ice offering to t)e world. T)e Import-E9port !elp @u"/1ell E9c)angeHs 7ompan" 1)owrooms enable "our compan" to upload its complete product line and mar6et it internationall" #; )ours a da", 7 da"s a wee6. !erman E-Trade 4enter+ www.e-trade-center.com 1ell and bu". Eoo6ing for business contacts. T)is is a mar6et place for searc)ing and offering business contacts around t)e world in different sectors. &erlin,auf. www.berlin6auf.com/ 1ell and bu". @usiness E9c)ange. Trade Mar6ets. Mews Premier International &usiness to &usiness Trade Portal www.foreign-trade.com/ wit) t)e most complete foreign trade, import and e9port informationT )<EE ser&ices for importers, e9porters U trade s)ows organi:ers. Directories of Importers and E9porters, of 'reig)t Transporters, Embassies and 7onsulates, Mar6er 2esearc) Tools Trade terms and 7odes, Measurements and 7on&ersions. Iompass - T-e &usiness to usiness searc- engine www.6ompass.com/6inl/inde9.p)pJ SEangVfr -ublic tenders. 2eIuest for Iuotation. T3&34B 4anada - 'irector" of ExportersB ImportersB Manufacturers and Suppliers " sectors www.toboc.com. E9porters, Importers, Transporters

Ho> to use (irtual E-commerce Platforms E9ample of 0libaba. +n t)e importers )omepage of 0libaba )ttp://importer.alibaba.com/ "ou will find t)e necessar" items: @rowse bu"ing leads b" categor" -ost "our compan" profile and products, tell bu"ers w)o "ou are and s)ow t)em w)at "ou sell. 2ecei&e and repl" bu"er inIuiries T)ere are two wa"s to reac) bu"ers on 0libaba: 8. 'ind bu"ers "ourself, #. Eet bu"ers find "ou. *+ )ind u"ers "ourself 1earc) t)e product name "ou want to sell on 0libaba.com. +r browse information b" categor" in t)e 31ell3 c)annel. Biew t)e results page and clic6 an" lin6 to read more details. 7)oose one of t)e contact met)ods in t)e 37ontact /s3 section. Gou will be able to reac) bu"ers &er" Iuic6l". #+ :et u"ers find "ou -ost a selling lead or product information and describe w)at 6ind of product "ou are selling (fill t)e 0libaba sellersH format*. @u"ers will find "our selling information and contact "ou using different met)ods. 2ecei&e bu"ersH messages in "our email, Message 7entre or Trade Manager. 0nswer t)e bu"erHs message and send "our repl" t)roug) eit)er Message 7entre or Trade Manager as soon as possibleT Personal contact is importantJ @u"ers will not come automaticall" after "ou presented "our products. Gou must loo6 for contacts acti&el" b" "ourself and contact b" e-mail one potential bu"er after t)e ot)er. Ta6e a w)ole da" to identif" and contact indi&iduall" #$ to C$ potential bu"ers b" indi&idual e-mail messages including "our compan" profile and products. @ut be s)ortT

5e site examples of export enterprises www.selambaltena.com.et/inde9.)tml 1elam @altena, Et)iopia, food processing www.selambaltena.com.et/products.)tmlWbulla products www.selambaltena.com.et/galler".)tml product p)otos www.nileenterprises.com/ @lue Mile enterprises, Et)iopia, drin6s and grains www.nileenterprises.com/1eeds.)tml seeds www.ifle9senegal.org/accueil.)tml Information sur les 'ruits et EXgumes dHE9portation du 1XnXgal

*-5ee, 5or,s-op
(-roposal from Dieter Gagel, mail gagel.net *

Export- and action-oriented 5or,s-op on Su mission to E-Mar,et Places and 5e site Pu lis-ing for Export-oriented Entrepreneurs
*+ 5or,s-op 3 Kecti(e Ten e9port-oriented companies are introduced to present t)eir 8-C e9port products on 8$ E-7ommerce Internet platforms. T)e participants will identif" potential bu"ers on t)e E-7ommerce platforms as well as b" Google and ta6e direct contact b" e-mail. T)e participants wor6 out a draft of t)eir e9port-oriented website focussing on t)eir product presentation. Et)iopian )osting ser&ices as well as C international Internet-based )osting ser&ices are presented to t)e participants (conditions, procedures, prices* Et)iopian website designers s)ow t)eir references and gi&e information on conditions and prices. #+ Target-groups E9port-oriented companies of agricultural &alue c)ains. .+ Preparation p-ase -articipants will be in&ited one wee6 before t)e wor6s)op in order to present t)e programme and to gi&e t)em some ad&ice for preparing t)e product pictures and presentations. Test t)e web)osting procedure of at least one Internet-based web)osting ser&ice, e.g. www.europe)osting.com . 0ll procedures for webspace and domain including pa"ment procedures b" Bisa 7ard s)ould be done (costs about A$Y*. ; web)osting ser&ices in 0ddis 0baba will be identified and &isited. 7onditions, procedures and prices will be identified. ?eb)osters will be in&ited for da" < of t)e wor6s)op and present t)eir ser&ices. ; web designers will be identified, &isited and t)eir references anal"sed. T)e" will be in&ited for da" < of t)e wor6s)op in order to present t)eir ser&ices. -repare t)e wor6s)op facilities (7omputer, @eamer etc.*. /+ 5or,s-op Programme 'or t)e programme of t)e wor6s)op see t)e anne9ed Mindmap. T)e detailed time table will be wor6ed out later. 0+ )ollo>-up During t)e C da"s of follow-up, t)e participants will focus on additional tas6s referring to demand, finali:ing of website designs and finali:ing and publis)ing of subwebsites(e.g.www.et)iopianc)amber.com/tutu-)one"* 1+ Time-ta le < da"s field wor6 and wor6s)op preparation. 7 da"s wor6s)op implementation. C da"s follow-up p)ase 7+ 5or,s-op )acilities ?or6s)op rooms wit) 8$ -7s are needed in order to engage 8$ participants simultaneousl" to introduce t)eir products on t)e E-7ommerce platforms.

Entrepreneurs prepare product pictures (.Dpg* and product descriptions *+ Prepare product presentation of *$ entrepreneurs (* da") ; ?ebsite designers present t)eir references 7ontact between designers and participants 7+ Presentation of / Et-iopian 5e site 'esigners (*6# da") -roduct presentation (8-C products* including pictures are presentedRdiscussed Ta6e pictures of products wit)out good presentation Group wor6s on modification of presentations -icture treatment for Internet (cut and compress pictures* 'inali:e presentations

; Et)iopian website )osters present t)eir ser&ices (procedures, conditions and prices* -resentation of ; International website )osting ser&ices (as6 webspace and domain name b" Internet and pa" wit) credit card* Et)iopian 7)amber presents possibilt" of sub-webpage publis)ing. E9ample: www.et)iopianc)amber.com/tutu-)one" 1+ Presentation of 5e site Hosting ser(ices (*6# da") -resentation of 8$ E-Mar6et places

0libaba, E9port @ureau, E-Trade center, @erlin6auf IT7 Mar6et place, E/ !elpdes6 mar6et place +ne-Trade-?orld Mar6et place -remier, 4ompass, Toboc 8 Indian and 8 7)ineese Mar6et place Demonstration of submission in t)e first mar6et place b" beamer Group wor6s on -7 submission of 8-C products to 8$ mar6et places 7D-2+M du 1ite MaIuette 7ontenu du site MaIuette Eettre circulaire email 7ontenu Eiste dHadresses

1)ow website presentation samples Introduce sample template Group wor6s on product-oriented website presentation: elaborate table of contents and write presentation te9t Discuss presentations Deli&er presentation te9t in ?inword format 0+ 5e site pu lis-ing(* da")

*->ee, 5or,s-op for *$ Enterprises: Export- and 2ction-oriented 5or,s-op on Su mission to E-Mar,et places and 5e site Pu lis-ing for Entrepreneurs

#+ Put products on *$ E-Mar,et places - sellers side (* da")

-repare letter wit) product and compan" presentation ?rite indi&idual e-mails to potential bu"ers 1end 8-page fa9 presentation to indi&idual bu"ers

/+4ontact potential u"ers (* da")

Demonstration on )ow to identif" potential bu"ers on t)e mar6et places Group wor6s on bu"ers identification b" commodit" .+ 5or, >it- t-e u"ers-side of t-e mar,et places (* da") Ta6e addresses/e-mail of potential bu"ers Demonstration on )ow to identif" potential bu"ers b" Google Group wor6s: identif" potential bu"ers b" Google 7ollect addresses of potential bu"ers

#A

0+ Trade )air !uide

0+* Trade )air and its <ele(ance to Mar,et Promotion for Micro and Small Enterprises (MSEs) -romotion, being one of t)e components of t)e mar6eting mi9, is comprised of different elements. 0lt)oug) products can be boosted t)roug) different t"pes of promotional acti&ities, trade fair is an important tool, as it in&ol&es face-to-face communication. It is a means of displa"ing products to persuade and remind prospecti&e bu"ers about t)e enterprise. 0 trade fair reIuires careful planning and s"stematic decision-ma6ing, since direct contact wit) consumers is in&ol&ed. Trade fairs are )ig)l" competiti&e. T)erefore, trade fair organi:ers )a&e to be e9perts and strategic planners to pursue t)e lead. -romotion b" means of trade fairs is effecti&e because it is not onl" useful for promoting establis)ed companies, but also for newcomers. !owe&er, it cannot be e9pected t)at during t)e s)ow a large pile of orders will be generated. Trade fairs are &er" rele&ant for t)e promotion of Micro and 1mall Enterprises (M1Es*. 1ome practical points are pro&ided below:

If a customer gets to 6now t)e M1EsH products b" means of publicit" or an" ot)er ad&ertisement acti&it", and t)en again sees t)e products at a trade fair it will )elp )im to attain more information on t)e product and will create a good product awareness. 0rrangements to distribute trade and industrial Dournals as well as ot)er printed documents can be done during t)e trade fair because t)e" are good promotional tools. M1Es can use ad&antage of trade fairs to sur&e" t)e latest product lines, mi9es and designs of competitors. Trade fairs open doors to building future relations)ips wit) current and new customers. Trade fairs not onl" create t)e opportunit" for M1Es to meet customers, it also pa&es t)e road for t)em to meet representati&es from t)e media and press. T)is is a good opportunit", due to t)e fact t)at t)ere are few c)ances for M1Es to meet t)e press in ot)er occasions. @u"ers w)o get t)e opportunit" of seeing t)e M1EsH products at t)e trade fair are more li6el" to respond to follow-up calls from M1Es, compared to t)ose not seeing t)e products at a trade fair. @esides, during t)e trade fair mar6et researc) can also be carried out. T)is can )elp t)e M1Es create a basis for future mar6et studies and planning. 7arr"ing out mar6et researc) during trade fairs ma" seem to be e9pensi&e, but it is far less costl" t)an running researc) acti&ities as compared to ot)er occasions. T)e researc) at trade fairs can focus on stud"ing:
o o o

t)e demand situation of t)e specific planned e9)ibitsK t)e main consumers wit)in t)e tradeK t)e e9isting price le&el.

0+#

T"pes of Trade )airs

T)ere are se&eral t"pes of trade fairs. T)e" can be classified as: 0+#+* MaKor !eneral Trade )airs T)is trade fair categor" e9)ibits all t"pes of consumer and industrial commodities. T)e" are open to t)e general public, wit) t)e &isitors being regional, national or international. ?)en e9)ibiting in maDor general trade fairs it is difficult to attract wort)w)ile target &isitors, alt)oug) t)e number of &isitors is )uge.

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0+#+# MaKor Speciali8ed Trade )airs T)is t"pe of trade fair is speciali:ed in terms of t)e in&ol&ed sectors. E9amples of suc) sectors could be t)e leat)er sector, t)e )andicraft sector, t)e te9tile sector, or t)e wood sector. !owe&er, t)e degree of speciali:ation &aries. T)is t"pe of trade fair is primaril" for business e9)ibitors from &arious le&els of trade and industr". It attracts large number of business people, specificall" concerned wit) t)e trade s)ows area of speciali:ation. T)e e9)ibitor can be sure t)at a large portion of business people will be at t)e fair. 'or new companies entering t)ese fairs, it can offer t)e best opportunit" to find large bu"ers, distributors and retailers. 0+#+. 4onsumer )airs T)ese are general trade fairs in terms of products to be e9)ibited and t)e interest of t)e &isitors. T)e primar" &isitor is t)e general public w)o ma" come from t)e nearb" regions. 1ome Hconsumer fairsH speciali:e in food products, be&erages, s)oes, etc. 7onsumer fairs are more appropriate for companies t)at are alread" establis)ed, wit) distributors and identified products t)at )a&e alread" found t)eir wa" into retail s)ops. 0+. !uide for Trade )air 3rgani8ers and Participants -articipating in trade fairs is a &aluable tool in attaining information on competition, carr"ing out mar6et researc) as well as reac)ing end users and retailers. It )as t)e ad&antage of attracting publicit" &ia media and t)e press t)roug) con&e"ing announcements connected to t)e presentation of t)e business and its products. T)e decision to participate in a trade fair s)ould not be due to t)e fact t)at ot)er M1Es are e9)ibitingK t)is decision rat)er )as to be based on t)e indi&idual compan"Fs specific needs. -articipating in a trade fair reIuires a lot of time and is &er" costl". Me&ert)eless, t)e costs can be offset, mainl" due to t)e large co&erage of customers, if appropriatel" )andled. -rocedures for planning, conducting and managing trade fairs on t)e part of trade fair organi:ers as well as business operators are outlined below. 0+.+* Setting 3 Kecti(es Trade fair organi:ers: before planning to organi:e a trade fair or entering into a s)ow, trade fair organi:ers )a&e to be able to set clear obDecti&es. T)e nature of t)e enterprises and t)eir mar6eting problems s)ould s)ape t)e specific obDecti&es t)at t)e s)ow s)ould tr" to ac)ie&e at t)e trade fair. @usiness operators: if t)e" are loo6ing to contact specific bu"ers, t)en e9)ibiting would be an e9pensi&e &enture. If t)eir obDecti&e is to underta6e mar6et researc) acti&ities, t)en carr"ing out mar6et researc) would probabl" be more effecti&e and less e9pensi&e to realise. T)at is w)" t)e obDecti&e for a business operator in participating in a trade fair s)ould generall" re&ol&e around building future relations)ips wit) current and potential customers. 0+.+# !etting Information Trade fair organi:ers s)ould collect all t)e necessar" information a)ead of time for effecti&e planning. T)e number of M1Es t)at are to participate in t)e planned fair )as to be 6nown in ad&ance and is also necessar" to 6now t)e t"pes of products t)at are to be displa"ed in t)e fair. 0ll t)e abo&e-mentioned information ser&es as a basis for planning and s)ould be done in t)e earl" stages of preparing for t)e fair. 0+.+. 3(erall 3perational Planning 'or trade fair organi:ers careful planning is &ital because trade fairs in&ol&e man" details. If t)e e9)ibition is not well planned and all t)e details are not realised on time, it can end in embarrassing confusion and t)e costs will be muc) )ig)er t)an anticipated. T)e operational planning of a trade fair s)ould include t)e following issues: one person s)ould be made responsible for t)e entire operation as a coordinator or proDect managerK eac) tas6 and responsibilit" )as to be clearl" identifiedK a wor6ing plan )as to be drawn up in detail as per t)e table s)own below:

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!andout 7: 5or,ing plan for trade fair participation

2cti(it" -lanning of space 2eser&ing of space -reparing a preliminar" budget 1ending Iuestionnaires to e9)ibitors 2ecruiting facilitators 0ssigning a proDect coordinator -a"ment for space Deciding on printed ad&ertising material 0rranging insurance -reparing passes etc. Starting date )inis-ing date <esponsi le

'inall", based on t)e t"pe of products to be e9)ibited t)e la"out of t)e fair and t)e stand can be properl" planned. In addition, t)e organi:ers need to plan )ow to control t)e admission of &isitors and e9)ibits. 0+.+/ &udgeting a+ Information 0 detailed budget s)ould be drawn up immediatel" after t)e decision to organi:e a trade fair is made. 0lt)oug) it ma" be difficult to decide on t)e e9act budget, it is necessar" to )a&e detailed information and Iuotations regarding t)e o&erall accrued costs. 7ost estimates s)ould t)erefore be obtained on time. It is safer to add 8$ N for contingencies to t)e estimate. + MaKor 4ost Items 1ome of t)e cost factors are outlined below: space rentalK telep)one installation and c)argesK design feeK forwarding and insuranceK displa" rac6sK dismantlingK temporar" staffK clearingK furniture rentalK securit"K mar6et researc)K receptionK electric and waterK mailingK electrical fittingK printed mattersK cleaningK public relationsK contingencies. 0+.+0 Staff Planning Temporar" staff )as to be recruited. T)e function of t)e staff can be seen as follows: coordination of t)e trade fairK stand designingK registeringK ta6ing care of communicationsK controlling passesK cleaningK ta6ing care of securit". 0ll staff members )a&e to be t)oroug)l" briefed before t)e s)ow starts on issues li6e: t)e obDecti&es of t)e fairK t)eir dutiesK t)e products of t)e e9)ibitorsK rules of t)e trade fair. C#

0+.+1 Strategic Stand :ocation for MSEs 7)oosing an appropriate stand location is a maDor factor in&ol&ed in trade fair planning. ?)en c)oosing a stand location it is important t)at t)e following 6e" elements be considered:

strong negotiation wit) t)e trade fair organi:ers long before t)e trade fair startsK c)oose an area in one of t)e busiest sitesK situate t)e stand in an area w)ere residents can flow t)roug) freel"K situate t)e stand in a location w)ere it can easil" be found b" &isitorsK design t)e stand so t)at it can be seen from different focal points. A poorly located stand can discourage visitors to see the displayed products.

!owe&er, t)e e9)ibitors ma" sometimes be limited to c)oosing from among gi&en )alls for reasons suc) as:

t)e area ma" be di&ided according to t)e t"pe of productK t)e location ma" also be assigned according to industr" or categor" of compan".

0+.+7 Stand 'esign and 4onstruction 0 trade fair )as to be p)"sicall" attracti&e. T)e furnis)ing and decorations of t)e stand )a&e to be suitable and adeIuate. -a"ing due consideration to t)e budget of micro and small enterprises, t)e stand s)ould perform &ital functions suc) as:

displa"ing t)e products appropriatel"K attracting t)e attention of &isitorsK pro&iding p)"sical conditions for briefing e9)ibitionists and demonstrating productsK creating good flows of trafficK creating enoug) space between one e9)ibitor and t)e ot)er, in order to ma6e sure t)at one stand is not sandwic)ed between ot)ers.

0+.+% Transportation +n t)e opening da" of some domestic fairs, it can also be obser&ed t)at in certain cases, t)ere are empt" stands wit) embarrassed staff around. 1uc) incidents underline t)e need for careful planning and preparation, especiall" for transporting t)e products and promotional materials to t)e trade s)ow in time.

Eac) transported case s)ould be correctl" mar6ed to a&oid mis)aps during transportation and to assign it to t)e rig)t stand. If and w)en necessar", adeIuate insurance co&erage s)ould be made.

0+.+A &riefing ex-i itors T)e number of micro and small enterprises t)at are to participate in t)e e9)ibition )as to be based on t)e a&ailable space and t)e t"pe of fair.

Mon-cooperating e9)ibitors need special attention because t)e" ma" not be read" wit) t)e products on time or t)e" ma" not follow t)e rules of t)e fair. 0 meeting wit) t)e e9)ibitors is t)erefore &er" important. E9)ibitors s)ould be encouraged to 6eep t)eir displa" area tid" and clean. Untidy areas with ashtrays, empty coffee and tea cups around create a poor impression.

0t times it )as been noted t)at some frictions arise between competing e9)ibitors, especiall" if t)e" are not well oriented. T)erefore, e9tra effort s)ould be made b"

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t)e organi:ers to encourage cooperation among eac) ot)er and to instruct t)em to obser&e and ad)ere to t)e rules of t)e game.

-articipating in a trade s)ow is critical for promotion reasons. T)e micro and small enterprises need to prepare suitable e9)ibits and ma6e t)eir stands attracti&e. T)e boot) s)ould be attended at all times. An empty booth gives the customer the impression that the company is also careless in the firm. esides, if the booth is not properly attended, then it is waste of time and money to participate in a trade fair anyhow.

0+.+*$ Promotion -lanning a special promotional program for t)e trade fair is necessar". ?it) t)eir e9pertise in publicit" and mar6et 6nowledge, organi:ers can effecti&el" and full" pla" an additional promotional role during t)e s)ow. a+ Printed materials+ -rinted materials )a&e a &ital role to pla" before, during and after t)e fair. T)e" inform &isitors and Dournalists of w)at is to be seen at eac) stand and stimulate interest. 0fter t)e fair printed materials ser&e as references and reminders. T)e co&er of t)e leaflet s)ould feature bot) t)e name of t)e e9)ibiting group and t)at of t)e organi:ers. It s)ould clearl" specif" t)e date of t)e fair as well as its location. @ecause printed documents are e9pensi&e t)e" s)ould not be wasted and t)eir suppl" s)ould be controlled, so as to let t)em last t)roug)out t)e duration of t)e fair. 0 leaflet t)at captures t)e facts listed below is of muc) )elp: t)e description of t)e e9)ibitsK t)e full address and telep)one number of participants. + Press co(erage+ -ress co&erage is a &aluable promotional tool because it can attract important &isitors w)o ma" not )a&e been included in t)e mailing or telep)one list. If t)e placement of professional publicit" is e9pensi&e or not feasible, t)e organi:er of a Doint participation can carr" out some public relation acti&ities )imself. 'inall", essential members of t)e press release or media communit" could be in&ited to a reception along wit) important business contacts. c+ 2d(ertisement+ If t)e budget allows, t)e placement of a full-page ad&ertisement in a special business Dournal can be effecti&e. 1uc) ad&ertisements can be placed in one of t)e G)anaian business newsletters suc) as P@usiness and 'inancial TimesQ. d+ Posters+ -lacing posters and ot)er means of ad&ertisements wit)in t)e trade fair premises can also be wort)w)ile to consider. 0+.+** 4losing ?)en t)e fair comes to an end t)e organi:ers s)ould perform t)e following acti&ities in collaboration wit) t)e e9)ibiting M1Es: register items to be returned to respecti&e compan"K remo&e t)e e9)ibits from t)e rac6sK dismantle t)e stand safel" and wit)out destro"ing t)e stand materialsK )a&e a reception on t)e closing da" or earl" to facilitate contacts between e9)ibitors and potential customers and ot)er sta6e)olders. 1uc) occasions can attract some non-go&ernment organisations to pledge sponsors)ips for M1Es in ot)er similar fairs in futureK sending out press releases is a )elpful promotional acti&it". !ence, in t)e case of press releases for t)e media, t)e M1Es s)ould be prepared and organi:ed to be able to state t)e positi&e results of t)e participation.

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!or "SEs to attain good press results, they should be prepared with the points that the enterprises want the audience to know and to be informed about.

0+.+*# )ollo>-up Ma6ing contacts at a trade fair is onl" t)e start of a process t)at ma" lead to sales. 1ome follow-up plans will be mentioned below: T)e starting points for follow-ups are elements, suc) as: t)e basic collected informationK t)e discussion t)at too6 place during t)e s)owK t)e nature of fair &isitorsH interest. In order to facilitate for a follow-up, simple data and anal"sis s)eets can be prepared. If it is not possible to prepare suc) formats, a note-boo6 or a register can do t)e Dob. #arrying out follow$up activities has a certain purpose. All those ideas and comments given by trade fair visitors are of importance. %herefore, collect all the necessary data and elaborate the analysis. Immediatel" after t)e trade fair closes &isitors can be called: t)e names of t)ose w)o s)owed interest for t)e products can be listed and conseIuentl" transferred to t)e sales forces for follow-up acti&ities. T)e best wa" to underta6e follow-up acti&ities would be to do t)ese using e9)ibitors t)emsel&es. !owe&er, t)e organi:er s)ould also carr" out some follow-up acti&ities wit) t)e e9)ibiting M1Es. Unless contacts that are made during the trade fair are followed up, all the efforts that went into exhibiting may end up being entirely fruitless. 'ollow-up acti&ities s)ould not be postponed. 0n" promise gi&en during t)e fair )as to be 6ept.

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1+

Trade )airs and Exposition 'ata ases

2CM2B !erman"+ International Trade )air 'ata www.auma.de Database on international trade fairs Trade fair benefit check tool T)e basic idea is t)at e9)ibitors s)ould first be clear in t)eir own minds w)ic) obDecti&es t)e" wis) to ac)ie&e, to w)at e9tent t)e" wis) to ac)ie&e t)em and )ow t)e" can measure t)eir ac)ie&ement. T)e utilit" &alue of Iuantitati&e obDecti&es is determined in b" t)e costs w)ic) would be in&ol&ed in t)e use of alternati&e mar6eting instruments. T)us, for e9ample, t)e e9tremel" e9pensi&e sales force would )a&e to be emplo"ed more intensi&el" if t)e compan" wis)ed to ac)ie&e a specific number of contacts to new customers b" means ot)er t)an a trade fair participation. T)e utilit" &alues t)us calculated for t)e indi&idual trade fair obDecti&es are added toget)er to arri&e at t)e Iuantitati&e utilit" &alue of t)e trade fair participation. In addition to t)is, t)e e9)ibitor c)ec6s w)at t)e ac)ie&ement of Iualitati&e trade fair obDecti&es is wort) to )im, for e9ample, t)e presence at t)e trade fair as a central sector e&ent. T)e &alue of suc) obDecti&es is e9pressed as a percentage of t)e total e9penditure. 1ubseIuentl", wit)in t)e scope of t)e trade fair c)ec6, t)e costs of t)e participation are calculated ta6ing into account t)e desired benefits. T)ese costs are t)en compared wit) t)e total utilit" &alue of t)e Iuantitati&e and Iualitati&e obDecti&es. Trade Fair library Trade fair artici ation guide

&i8 Trades-o>s www.bi:trades)ows.com T)e Indian director" of international trade fairs and business e&ents b" industr", b" countr", b" date or b" organi:er brings "ou an e9)austi&e co&erage of e9)ibitions, trade s)ows U e9positions, conferences and seminars for &arious industries worldwide: indi&idual trade e&ents worldwide, along wit) t)eir e&ent profile, organi:er, e9)ibitor and &isitor profile, &enues and dates to plan "our participation. T-e )air 4alendar of t-e Tunisian 4entre of Export Promotion www.cepe9.nat.tn 7oncerns all information on international te9tile fairs (multilingual* Expolin, www.e9polin6.com/ Trade fairs and e9positions b" countries Ex-i itions6Trade )airs in 2frica www.ieoe9)ibitions.com - www.africantradefairs.com

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:ist of Training Modules for Entrepreneurs

Training module 8 is an introduction for business start-ups. Training module 7 is destined to e9perienced entrepreneurs and ad&anced enterprises. Module *: Steps of &usiness Implementation Training module for business start-ups. Introducing t)e four steps of business implementation including practical e9ercises (action planning, business idea generation, anal"se "our competencies, 1?+T anal"sis of t)e business idea (1trengt)s-?ea6nesses+pportunities-T)reats*. @usiness idea generation Information see6ing stage 1tarting up "our business 'ollow up and impro&e "our business Module#: Mar,eting et Mar,et <esearc 3;-3 approac) in mar6eting: -roduct--rice--lace--romotion 7ompetitors anal"sis Mar6et stud" e9ercise on t)e ground (sales and suppl" mar6ets* Module .: 2ccounting and 4ost 4alculation @asic cas) boo6 and ban6 records 7as) boo6 and ban6 records wit) accounts Mont)l" and annual results o&er&iew table Electronic cas) boo6 and ban6 records 7ost calculation o 0nal"se price components, fi9ed and &ariable costs, product costs, profit and loss statement* Module /: &usiness <egistration and legal Issues Eegal status of enterprise 2egistration procedures Ta9ation 1taff contracts 1ocial securit" @usiness support institutions and formats Module 0: )inancing "our &usiness E&aluate "our needs for financing Identif" and o&ercome ot)er non-financial problems 1ources of finance Module 1: Ho> to >rite a &usiness Plan @usiness planning for start-ups and small enterprises @usiness planning for medium enterprises Module 7: International Trade Promotion International institutions for trade promotion Import and e9port procedures Trade fair and e9position guide Trade fair calendar

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@usiness De&elopment 1er&ices (@D1*

7ontact: mail gagel.net

&'S Portals and :earning Platforms

&usiness 'e(elopment Ser(ices (&'S) )orum
www.bds-forum.net 0ll about small and medium enterprises (1ME* de&elopment: @D1 portals, @D1 approac), training reports. @usiness information on mar6eting, importe9port, business planning, ta9ation, boo66eeping, cost calculation.

Et-iopian &usiness 'e(elopment Ser(ices (&'S) ;et>or,

www.bds-et)iopia.net Et)iopian rules and regulations for 1ME de&elopment. Directories of ban6s and micro-finance, tender procedures, trade fairs guide, trade opportunities, appropriate tec)nologies, women entrepreneurs.

Ser(ices dF2ppui aux Petites et Mo"ennes Entreprises (PME) du SHnHgal

www.senegal-entreprises.net 2Xpertoires des structures dHappui et Xtablissements financiers, cabinets dHXtudes. 1tratXgies dHappui, formation professionnelle, rec)erc)e de financements, mXt)odes de sui&iX&aluation, appels dHoffre.

Participator" 2ction-<esearcwww.action-researc).de -articipator" met)ods of business de&elopment ser&ices and organi:ational de&elopment wit) e9amples of Mali, Tan:ania, Tunisia, Mauritania, Miger, @ur6ina 'aso.

1-Pac, for SME 'e(elopment

www.bds-forum.net/<-pac6-for-sme.)tm 1i9 product descriptions for 1ME de&elopment: <-mont) @D1 c"cles, @D1 portals, Metwor6ing, 7apacit" building of partner organi:ations, Monitoring and E&aluation for international proDects and MRE for local partners.

Start and Impro(e "our &usiness

www.start-"our-business.net Manual for business start-up and business impro&ement: @usiness idea generation. Information see6ing (mar6et, suppl" and infrastructure anal"sis, financial anal"sis*. @usiness implementation (registering, financing*. 'ollow-up (business management*.

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