Meet Your Local Customs Official Roundtable

Posted by Paige Diller, Intern

At our recent World Trade Center round-table event, we had the opportunity to meet with Michelle Stover, Port Director, and Scott Merlo, Officer, from the U.S. Customs and Border Protection's Port of Harrisburg office.  

They were able to share their mission as part of CBP's Field Operations and some of their personal experiences that they have had while protecting U.S. borders over the years. They also provided helpful advice for attending companies on various different aspects of travel and trade, including the best ways to seek help or information. They also touched upon the operational elements of trade, such our local Foreign Trade Zone.

The U.S. Customs and Border Protection's Mission

Within the U.S. Customs and Border Protection, the Office of Field Operations focuses on guarding the physical and economic security of the United States by controlling access to the country. In the words of our speakers, they keep the "bad people" and "bad things" out. Simultaneously, the office facilitates international trade and travel by not only sustaining an essential aspect of the U.S. economy but also by ensuring its integrity. The six enforcement authorities that fall under the Office of Field Operations' domain are anti-terrorism, facilitation of lawful travel, cargo security, seizing contraband, trade enforcement, and agriculture quarantine inspection.

Impact on Border Security

Michelle Stover and Scott Merlo's presentation provided numerous statistics showing the impact of border protection. In 2014, nearly 8,000 people wanted for serious crimes were arrested by CBP officers. The total number of arrests at the border was around 21,000 people. The CBP also plays a large part in preventing inadmissible aliens and high risk inadmissible travelers from entering the United States. In 2014, 224,000 inadmissible aliens and 11,494 high-risk travelers were denied entry to the U.S. Additionally, the CBP seized over 800,000 pounds of drugs in 2014 and seize $700,000 in counterfeit goods every day.

Central Pennsylvania's Foreign-Trade Zone

In our discussion following the presentation, attending business representatives had the chance to ask questions to the CBP officials. One topic that was explored in depth was the Central Pennsylvania Foreign-Trade Zone (FTZ #147). Foreign-Trade Zones are designated properties where U.S. based companies have the opportunity to defer, reduce, or sometimes eliminate Customs duties that are admitted and transported through the FTZ. The sites are intentionally located to offer convenience to businesses; typically there is easy access to on-site inter-modal transportation connections (including air, road, and rail). The Foreign-Trade Zones essentially facilitate international trade for the region's businesses, offering a competitive advantage ahead of other companies abroad. To learn more about the benefits of the Central Pennsylvania Foreign-Trade Zone (FTZ #147) and its effect on export duties, please visit their webpage. 

Of all the information shared, Michelle and Scott emphasized that the U.S. Customs and Border Protection works to not only protect the nation and its citizens from "bad", but to also enable "good". They are here to facilitate a thriving economy rooted in international trade and travel!

Dealing with a Strong U.S. Dollar

Posted by Paige Diller, Intern

As the strength of the U.S. dollar is on the rise, a small group of representatives from local businesses sat down for a roundtable discussion to gain insight and share advice on how to manage the currency’s impact on exports and trade.

Currency Strength and Exporting Impacts Explained.

Though the U.S. dollar gaining strength is an indication of a recovering economy, it negatively impacts U.S. companies that export their goods and services. For example, in November of 2014, a good that was produced and priced at $5 by a U.S. company could be purchased by a European company for €4. A year later, the same U.S. company making the same product and priced at the same $5 would now cost a European company €4.61.

The cost of buying U.S. goods and services is going up for international companies while U.S. companies are not necessarily pulling in any additional revenues.  

Strategies for Dealing with the Strong U.S. Dollar.

The World Trade Center hosted event “Strategies for Dealing with a Strong U.S. Dollar” facilitated interactions between local companies who all face this challenge. The discussion was led by Matt Blyth of Fulton International Group, Kirk Elken of Securitas Global Risk Solutions, and Timothy Deitrich of Barley Snyder. Together they were able to provide insight from different positions with expertise in foreign exchange strategies, credit insurance options, and legal considerations, respectively.

A variety of manufacturing companies, from different industries within the manufacturing field, participated in this conversation. Of the entire discussion, Letters of Credit to assure reliability of customers, cultural challenges that impact business interactions, and the changing international environment of competition were just a few topics introduced; problems and challenges were responded to with advice and potential solutions from others.

One Part of a Bigger Picture.

Though the focus of this conversation was the strength of the U.S. dollar and the challenges that presents, it was noted that this is one part of a bigger picture. Success in exporting is dependent on having a wide perspective of the many challenges exporting may present and having a balanced approach in developing solutions for operating in the international market.

As our speakers so eloquently concluded, there is no “magic solution” to these challenges. However, roundtable conversations where ideas, advice, and insight can be shared is an immeasurably valuable resource in pursuing exporting success and proficiency.