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Show The National Enterprise , March SO , 1977 Page 6b Doing Business Abroad James E. by Ferguson Director of Mark eting, Salt Lake International Center The Foreign Credit Insurance Association offers incentives to U.S. sellers to extend credit to buyers of their products overseas. FCIA was formed upon the request of the Federal Government, and is presently composed of some 50 private insurance companies which cover normal commercial risks, while Eximbank assumes responsibility for political risks. Although FCIA does not provide financing, the exporter is able to obtain from commercial banks and lending institutions lower rates and longer terms as a result of their affiliation with FCIA. This in turn enables them to offer more desirable credit terms to foreign buyers, thereby increasing their overseas volume and thus compensating for the rather low premium payments. If the exporter chooses to insure all of their foreign accounts receivable through FCIA, the premium rates are reduced considerably more than if insurance is obtained on individual sales. This is the master policy coverage which is extended to sales on terms of up to five years. It can be either comprehensive or for political risks only. With this policy, the exporter can sell to many buyers simultaneously without prior insurance approval from FCIA, but it does require a deductible feature. A short term policy is available for exporters in the raw materials and consumer goods lines. These products turn over quickly and are insured on terms from sight draft to 180 days. A medium term policy may be obtained for capital goods with terms usually ranging from 181 days to five years. A 1020 advance payment is required of the buyer. The term policy is designed for combined short exporters dealing in products encompassing both areas. Under the above policies, the exporter insures all of their sales and can obtain either comprehensive or political risk protection only. To aid the beginning or small exporter, FCIA provides a d insurance Small Business Policy" with coverage for either markets or buyers. This service is available to firms whose total exports in the proceeding three years have not exceeded $200,000; it is valid for two years or until the company has exported a total volume of $500,000, whichever comes first. There are other forms of coverage offered by FCIA, and consignment insurance. The including former insures against risks from the date of execution of the sales contract, rather than from the date of shipment. Consignment insurance is particularly helpful as foreign sales may be made on these terms and such coverage would extend to such time as title for the goods is transferred. The uniqueness of FCIA coverage is that by insuring payment will be received, the exporter is able to secure favorable financing. No other form of insurance can provide term-mediu- No matter what you need in the way of security and safety fence systems, Mountain States Fence Company can design it (or fabricate it from your specifications) and install it for you. From traditional open yard enclosures to electrically and electronically operated systems, we have the experience to satisfy your needs. ultra-sophisticat- ed WE CAN SERVE YOU BETTER For imaginative and esthetically pleasing Were Fencing Experts solutions to your security and safety problems, call us today. Free estimates and Realock or equivalent" specifications for all types of plans. Mountain States Fence Company 3737 South 500 West Salt Lake City, Utah 84115 PHONE (801) 261-42- 24 coBra TravelX m across-the-boar- pre-shipme- r nt Domestic and International Air- line Ticketing, Hotel Reservations, Rental Car Reservations, Airline Ocean Reservations, Travel Arrangements. ALL OF THIS AT ABSOLUTELY NO Bus-Rail-a- nd COST TO YOU. Thats right!!! It does not cost you one cent more to utilize ADDITIONAL the services of ScOBra Travel over going directly to the Carrier. WHY NOT USE THE COMPANY THAT PERFORMS FOR YOU -THE CUSTOMER!! this protection. Contact the local U.S. Department of Commerce office for information concerning the regional FCIA. II I II da)l)3 300 , DISTRIBUTION SYSTEM CO., INC. Specialists in Electronics 1 EXPERTS IN DOMESTIC & INTERNATIONAL AIR CARGO SERVICE 11 (801)487-542- 5 466-52- 53 provide moving instruction sheets for all your employees, to convey complete information about the move and their part in it. Wfe A TRAVEL AGENCY OF PROFESSIONALS -FOR PROFESSIONALS 455 S. 300 East 100 6 (801) 355-681- |