What happens in Vegas…might be exported around the world!

I finally attended my first Consumer Electronics Show in Las Vegas! It wasn’t just any CES show, it was CES’ 50th Anniversary! My main interest in attending CES, was to be where my customers are, mostly small – medium sized companies, with visions of going global!

My first impression of the CES was that the exhibition was MASSIVE, so I put on my comfortable walking shoes! Since there as no way I could cover all the locations and marketplaces in 3 days, I decided to prioritize. The main product marketplaces that I focused on were the following product groups that had complex international trade implications:

Augmented Reality: This exhibit area, featured augmented-reality and virtual-reality glasses and headsets. I actually had a client who was exhibiting at CES. That was my first stop, and I was delighted to see their booth was packed at the seams with eager attendees waiting in long lines for a demo.

Drones: The Drone section was huge with many companies features their state of the art drones for a multitude of applications. Of special interest was drone that could seat a human. Another exhibit featured an area where attendees could try to shoot the drones out of the sky, using a tennis-ball shot gun. Sadly, I was unsuccessful, but this demonstration highlighted the amazing agility and easy maneuverability of their drones.

My main takeaway from the CES was that a good product launch for a lucky company, can ensure business orders from around the world. Such companies then have the unenviable task of having to ramp up really quickly to start selling and shipping around the world.

From the perspective of international trade rules (my area of specialty), once manufacturers start selling their products around the world, either through e-commerce or through a worldwide distributorship network, they need to worry about the following logistics and regulatory issues:

Among the top regulatory issues are: How to comply with the customs laws of all their destination countries?

Final landed cost: How much customs duties and other import taxes are they subject to? What specific documentation is needed in each country? Determining the accurate customs valuation and transfer pricing for shipments?

Whether the stringent US export laws impose any export license requirements on these goods? Other global regulatory compliance (FCC, CE, CCC, FDA etc). Give an example for the above point.

Among the top Logistics questions are: What is the optimal mode of transportation & how to minimize freight costs: Where should they warehouse their products, for the fastest delivery times around the world. What international commercial terms (INCOTERMS) should they use to minimize risks of loss or damage?

Conclusion? Fortunately my tiny client’s product launch was a huge success. With over 20,000 visitors to their exhibits over 3 days, from over 50 countries, they now have their work cut out for them. All in all, the CES was a wonderful experience, but my favorite exhibitor was just outside the main convention center = The Gibson guitars showroom!