Politics & Government

Local Companies Learn Exporting Tricks of The Trade

The three-part session was designed to encourage companies in Southwest Riverside County to embark on or expand international trade, in turn creating local employment.

To this day, horses appear on the United States' list of controlled exports. They first were added to the Commerce Control List for fear overseas countries would create calvaries to be used against the U.S.

As a result, anyone who wants to ship a horse must first apply for a license, which can take up to four weeks, said Roy Paulson, president and CEO of Temecula-based Paulson Manufacturing,

While merchants in Southwest Riverside County may not be shipping horses, they learned some valuable pointers about exporting during the region's first Export University. The three-session training was held at the Temecula Civic Center and was a joint Twin Cities effort between Murrieta and Temecula, the U.S. Department of Commerce, the California Inland Empire District Export Council (CIEDEC), Paulson Manufacturing and Comerica Bank.

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"There is nothing on this list that is not controlled," Paulson said. The Temecula company makes protective gear for law enforcement, fire and rescue and Military. Its products are exported to more than 80 countries.

"If it is made in the U.S. and shipped to another country, it is considered an export," he said, adding that even the transfer of technical data is considered an export--including emails.

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To reiterate his point, he used the example of a woman being charged an $8,000 fine for shipping a handmade sweater to Cuba.

Companies also need to check whether potential clients have been cleared by the government, or if they are on a do not sell list.

Before planning to ship anything overseas, companies should apply for a license, which the government reviews on a case-by-case basis. Companies should then keep transaction records for at least five years.

"Documentation is key...they can basically shut you down if you don't follow the rules," he said.

Kimberly Davidson, business development manager for Murrieta's Economic Development Department, lauded Paulson for sharing his firsthand knowledge of exporting do's and don'ts.

"It's really quite phenomenal that he is willing to share his exporting 'secrets' to help others. I think that says a lot," Davidson said.

Just as Paulson prides his successful company on following the rules stringently, he encouraged companies not to be scared off.

"You want to get invovled in this because you want to make more money," he said. "It is the high-tech products that the world wants.

"In the beginning, you are convinced you've gone to hell, but you get through it."

Representatives from companies based in Murrieta, Temecula and Lake Elsinore paid a small materials fee to attend the three sessions, the last of which was held Thursday.

Mark Netherland, president and owner of Martek Automation in Murrieta, said he wants to expand his exporting reach. His company, based in Murrieta since 2002, went from 25 employees to nine when the recession hit. But things are starting to pick up again, he said.

The company provides automation equipment to manufacturers. Netherland said most of his clients have plants offshore, which calls for a clear understanding of commerce regulations.

"You have to know what you are doing; you can't take anything for granted," he said, adding that the few hundred dollars he spent to take the class was worth it.

"For the number of companies here, the ratio of helpers was overwhelming."

Those who attended the training earned a certificate and were extended a working relationship with area trade experts.

Karina Ceron, 26, said her employer, Lake Elsinore-based JP Specialties, sent her to the training. Ceron does inside sales for the company, which provides waterstop, a product used in concrete foundations to prevent spillage on construction sites and oil refineries. The company currently sells its product, Earth Shield, to Australia and Malaysia.

Ceron said she found the training beneficial.

"It's been great just learning about how the Department of Commerce can help you, and how to maneuver through it all," she said.

Besides Paulson sharing his international trade knowledge, Tim Murphy, first vice president of International Trade for Comerica Bank, gave tips on securing payment for goods.

"If you know how to make it, we can tell you how to ship it and make money," Murphy said.

"You have the manpower behind you," he ensured the companies.

"Exporting can be done, and it should be done to help get employment back where it should be," Murphy said.

Murrieta City Councilman Rick Gibbs also offered his prowess. In his civilian career, Gibbs works for the Northrop Grumman Corporation and has marketed defense electronics to the U.S. Military and about a dozen allied nations. He was appointed by the U.S. Secretary of Commerce to serve as a member of the region's district export council.

Ninety-five percent of U.S. goods are sold to foreign customers, and he said exporting is a way to bring the U.S. out of the recession by bringing more jobs home.

"There are countries like Australia and Brazil that haven't been touched by the recession," Gibbs said.

"By the time you have completed the licensing, the French may have beat you, but that doesn't mean you shouldn't compete against France. You just need to be prepared."

Under a Twin Cities agreement, Murrieta and Temecula are cooperating to attract job-producing, business-related developments, said Bruce Coleman, economic development director, City of Murrieta.

"The Export University represents a strong recognition by both Murrieta and Temecula on the importance of expanding trade so as to encourage the creation of new local employment," Coleman said.


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