Resources

In Virginia, 86% of businesses that engage in international trade depend on imports of intermediate goods for their operations. Virginia businesses that import intermediate goods generate $90 billion in output, $131 billion in economic activity, 550,000 jobs, add $58 billion to Virginia’s Gross State Product, and support $1.8 billion in revenues for the Commonwealth’s annual budget. On average, workers at these businesses earn $3,000 more per year.

This Guide to Supply Chain Management and Importing aims to curate directories of professional service providers, education opportunities, networking events, and online resources to assist Virginia businesses in optimizing their supply chains and importing. This report includes:

• The basics of importing, focusing on the essential role of imports, compliance, and foreign trade zones;
• A comprehensive list of conferences that focus on importing and supply chain logistics; and
• A guide to service providers that work in tandem with VEDP to help Virginia business with supply chain logistics and importing, including associations and organizations, educational resources inside and outside of Virginia, and logistics resources.

This guide provides an overview of the following incentives and tax credits provided by the Port of Virginia:

• Port of Virginia Economic and Infrastructure Development Grant (POV Grant)
• Port Volume Increase Tax Credit
• Barge and Rail Usage Tax Credit
• International Trade Facility Tax Credit

What is an IC-DISC? The Interest Charge-Domestic International Sales Corporation (IC-DISC) is a tax saving vehicle for U.S. exporters. Eligible U.S. companies can recoup or exceed their tax savings on exported product (and in some cases services) revenue by creating an IC-DISC.

Qualified exporters can receive a permanent tax savings of 20 percent or more on Federal income tax from export profits by utilizing an IC-DISC.

If you are unsure if your company is eligible to set up an IC-DISC to take advantage of tax savings, ask the following questions:

1. Do you have any transactions outside of the U.S.?
2. Do you use overseas distribution?
3. Does your product cross any borders?
4. Are you generating operating income?

If the answer to any of these is yes, an IC-DISC may be a valuable tax savings option for your business.

When traveling to a foreign country, you may be required to obtain a business visa or travel visa. Visa requirements vary depending on the purpose of your trip, such as tourism, business, or employment, and the country you will be visiting.

Work permit requirements also vary by country and trip purpose. It is often the responsibility of the employer, not the employee, to apply for a work permit. Permits are usually issued for a specific worker and a specific job.

One risk of foreign trade is the uncertainty of future exchange rates. The value of the currencies can change quickly, sometimes between the time a deal is concluded and when payment is received. If an exporter is not properly protected and knowledgeable, a devaluation or depreciation of one of the currencies could cause the exporter to lose money.

Exporters who choose to trade in foreign currencies can minimize foreign exchange exposure by using risk management techniques, such as spot exchange rates, forward hedges, options, etc.

When exports market their products overseas, the products they want to export need to meet foreign product standards. Standards provide consistency for characteristics, guidelines, and specifications for products, services, and processes. The use of standards helps to make the industry more efficient and effective, and helps to break down barriers to international trade.

International standards organizations, such as the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU) are examples of standards development bodies that develop guidelines and specifications for products, services, and processes.