Great news coming from the Journal Record, as MidAmerica Industrial Park launches plans for a $50 million expansion of facilities in Pryor, Okla.

According to a Journal Record report by Kirby Lee Davis, the park’s remaining 4,000 acres of unused land could be put into development by 2020. The industrial park will also host the future MidAmerica Career Center, a workforce development project.

Established in 1960, MidAmerica Industrial Park lies just 40 miles from Tulsa, Okla. and within quick transit distance of Interstate 35, Interstate 40 and Interstate 44, allowing next day delivery to 23 percent of the United States population. Rail, waterway and air transit corridors are also nearby, and MidAmerica’s shovel ready sites are perfect for large and small scale businesses looking to put people to work.

For international companies, both importers and exporters, MidAmerica offers a unique incentive as Foreign-Trade Zone 53 offers reductions, deferments or eliminations of duties.

MidAmerica is also home to Red Devil Inc. whose Vice President George Lee, is a leading member of the Oklahoma Governor’s International Team. Red Devil manufactures a broad and diversified line of hand tools and chemical products for professional and home maintenance and improvement – more than 400 different products in all. In addition to producing caulks, sealants and tools under its own brand name, the company also manufactures private label products for some of the nation’s largest hardware and home center chains.

To learn more about MidAmerica’s expansion plans, please read the entire Journal Record article here.

The U.S. Commercial Service is the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration. U.S. Commercial Service trade professionals in over 100 U.S. cities and in more than 75 countries help U.S. companies get started in exporting or increase sales to new global markets.

The Commercial Service, along with other U.S. Government agencies, organize and support a broad range of events for U.S. businesses interested in selling their products and services overseas. These events include webinars and seminars on the fundamentals of exporting; counseling and other support at U.S. and international trade shows, recruitment of foreign buyer delegations to U.S. trade shows, and trade missions of U.S. delegates to foreign markets for one-on-one meetings with potential customers and partners. Click here for a Searchable List of Commercial Service supported Trade Events.

Event: 101 of Exporting
Venue: Fairleigh Dickinson University, Teaneck, NJ Campus
Date: Tuesday, April 14, 2015, 8:30am – 4:00pm
Cost: $40
Info: http://export.gov/newjersey/tradeevents/localevents/index.asp or email Ryan.Hollowell@trade.gov
Register Here!
Learn the ropes of exporting; understand the rules of export licensing; experience a day of executive-level pragmatic presentations from experts in the field of international business!! See below for details.

WHO SHOULD ATTEND: This seminar is ideal for marketing and sales management and staff, import/export operations personnel, purchasing, logistics, and anyone with a responsibility for import/export functions.

 

Malaysia Commercial Specialist to Visit Northern NJ Commercial Service Office

Appointments Available!

On Friday, April 3rd, Commercial Specialist Randall Liew from the Commercial Service Kuala Lumpur Office will visit New Jersey to consult one-on-one with companies on the benefits of expanding sales to Malaysia. Randall’s appointments will be limited and conducted via conference call or in-person. If you are interested in speaking with Randall while he is in town, please email Brian Beams at Brian.Beams@trade.gov or call (973) 645-6032.
Event: Opportunities in Africa’s Power Sector
Venue: Your computer
Date: Tuesday, February 10, 2015 – 11am EST
Cost: $20
Info: https://emenuapps.ita.doc.gov/ePublic/event/editWebReg.do?SmartCode=5Q4D

On June 30, 2013 in Cape Town, South Africa, President Barack Obama announced Power Africa — an initiative to increase the number of people with access to power in sub-Saharan Africa. Rooted in partnerships, Power Africa is working with African governments, the private sector, and other partners in sub-Saharan Africa to add more than 30,000 megawatts (MW) of cleaner, more efficient electricity generation capacity as well as increase electricity access by adding 60 million new home and business connections.

The U.S. Commercial Service, in support of the Power Africa Initiative, is organizing a web-based seminar highlighting five of Africa’s top power markets. This webinar will provide a snapshot of opportunities in these markets, as well as resources available to help your company succeed.

Event: National Institute of Health SBIR/STTR Programs: Opportunity for Business Webinar
Venue: Your computer
Date: Tuesday, February 10, 2015 – 1pm EST
Cost: $15
Info: https://emenuapps.ita.doc.gov/ePublic/event/editWebReg.do?SmartCode=5Q3Q

Are you a small or medium-sized business working on research and development of a product to improve human health? We invite American exporters to learn about the funding opportunities from the National Institute of Health’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. NIH provides grant opportunities for small businesses in any biomedical or behavioral research area that falls within NIH’s mission to improve human health. Join us on Tuesday, February 10th, 2015 at 1:00 PM EST for an ONLINE program to learn about the programs’ general requirements, the application process, the three distinct phases of funding, where to find awardee/applicant lists, and the differences between the SBIR and STTR programs.

– Dr. Matthew Portnoy, NIH SBIR/STTR Program Manager, will provide his expert knowledge and experience about how your business can leverage these programs

– Learn about what a successful application includes and the overall success rates
– Ask questions and receive feedback from Dr. Portnoy, the expert that administers the SBIR/STTR programs for NIH
– Learn about whether the SBIR or STTR programs are right for your business.

Event: Identifying the right REACH Only Representative (OR)
Venue: Your computer
Date: Wednesday, March 18, 2015, 12:00pm Eastern Time
Info: https://emenuapps.ita.doc.gov/ePublic/event/editWebReg.do?SmartCode=5Q4C

Partnering with a REACH Only Representative (OR) is a necessary and expensive cost for U.S. businesses exporting chemicals to the European Union. However, many U.S. companies are unaware of the impact choosing an OR has on their ability to increase their exports to the European Union. The Commercial Service at the U.S. Mission to the European Union is pleased to invite you to participate in a webinar dedicated to assisting chemical exporters select and manage their relationship with a REACH OR.
Our guest speaker, Dr. Rudolf Staab, is president of the Only Representative Association which recently published “Best Practices Guide” for ORs. Dr. Staab’s presentation will focus on the various roles of the REACH OR including, the strategic implications of choosing a professional OR service, ownership of the REACH dossier, service offerings and factors that go into the calculation of fees. At the conclusion of this event, participating U.S. exporters will be better prepared to identify the right OR to partner with saving them time, money, and protecting the ability to penetrate the EU market. The cost to participate is $75.

For questions, please email Matthew.Kopetski@trade.gov or call: 317-582-2300.

HEALTHCARE EQUIPMENT, SERVICES, & TECHNOLOGIES TRADE MISSION
EGYPT, JORDAN, & ISRAEL
The USDOC is organizing a business development mission to Egypt, Jordan and Israel, with an optional stop in the West Bank with the purpose of introducing representatives from U.S. firms and related trade associations to the region and to promote exports of U.S. healthcare products and services. Mission participants will receive market briefings and participate in customized meetings with prospective partners. Targeted sectors include Maternal and child health needs, Medical equipment and supplies, including diagnostic, monitoring, and imaging equipment, Hospital and outpatient clinic design, Hospital management, E-health: healthcare management systems/software/network design, Laboratory and scientific equipment, Specialty areas such as oncology, cardiology, wound care, and plastic surgery, Products and services for implementing quality standards and accreditation, Robotics, and Mobile clinics.

 

When: May 16–21, 2015
Where: Egypt, Jordan and Israel, with an optional stop in the West Bank
Application Deadline: March 13, 2015
Cost: $3,325 for small or medium-sized enterprise or trade association/organization with fewer than 500 employees, $4,625 for large firms, $1,000 for each additional firm representative West Bank optional meetings is in addition to the mission participation fee above, at $750 per SME and $2,300 per large firm

 

For more information, visit this website: http://export.gov/industry/health/eg_main_076608.asp

 

Event: Europe’s Cyber Security Market

Date: February 11, 2015
Time: 8AM PST/11AM EST
Fee: $25
Register at: http://go.usa.gov/H22k

The value of the global cyber security market is expected to grow by 11.3% each year, reaching $120 billion by 2017. Learn about the Cyber Security opportunities in…

Bulgaria – Bulgarian government with the support of the European Commission will spend 8 million euro for Botnet fighting and 1 million euros for regulation of cyber threats.

Croatia – Law requires private companies to have protection systems in place, including an Intrusion Prevention System. The value of the Croatian security software market totaled $14.2 million in 2013.

Czech Republic – Cyber threats, cyber terrorism, and warfare have been increasing in recent years, making Cyber Security a top priority for the Czech government, business community, and public.

Hungary – A growing number of organizations, events, and regulatory requirements highlight the necessity for a strong and secure cyber space not only within the private but also within the public sector.

Romania – The government adopted a national plan to implement the Nation Cyber Security System (SNSC). The IT industry in Romania has expressed a desire for enhanced cyber security in sectors such as business analytics, mobile computing, cloud computing, and social business.


Cyber Security in Japan & South Korea

Date: March 10, 2015
Time: 4PM PST/ 7PM EDT
Fee: $25
Register at: http://go.usa.gov/SW5T

Join us for a webinar on Cyber Security Opportunities in Japan and South Korea. Experts from these regions will cover industry highlights.

Despite tough competition from around the globe, U.S. IT Security companies have a strong track record of success throughout the region.

The cyber security market is estimated to grow from $95.60 billion in 2014 to $155.74 billion by 2019, at a compound annual growth rate (CAGR) of 10.3% from 2014 to 2019 (Source: MarketsandMarkets).

South Korea – Defense Minister Kim Kwan-jin expects the country’s information technology (IT) market to double to $8.7 billion in 2017 from the current $4.2 billion. This growth will fuel demand for cyber security product and services from the private sector, defense, and non-defense sectors.

Japan – Since the attacks on Mitsubishi Heavy Industries and other organizations in 2011 and 2012, Japan started serious efforts to defend against cyber-attacks as part of its national security program. Japan revisited its Cyber Security Strategy in 2013.

For questions on either of these webinars, please contact:

Pompeya Lambrecht – Pompeya.Lambrecht@trade.gov or 703-235-0102
Erica Ramirez – Erica.Ramirez@trade.gov or 909-390-8491

Doing Business in Cuba
The U.S. Department of Commerce and the U.S. Department of the Treasury announced on January 15th, the publishing of the revised Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR), which implement the changes announced on December 17 to the sanctions administered by Treasury’s Office of Foreign Assets Control (OFAC) and Commerce’s Bureau of Industry and Security (BIS). The changes take effect tomorrow (January 16), when the regulations are published in the Federal Register. The Secretary released a statement earlier today noting that “(t)hese changes will immediately enable the American people to provide more resources to empower the Cuban population to become less dependent upon the state-driven economy, and help facilitate our growing relationship with the Cuban people.” (click here for full text)

What are in these revised regulations?
These measures will facilitate travel to Cuba for authorized purposes, facilitate the provision by travel agents and airlines of authorized travel services and the forwarding by certain entities of authorized remittances, raise the limits on and generally authorize certain categories of remittances to Cuba, allow U.S. financial institutions to open correspondent accounts at Cuban financial institutions to facilitate the processing of authorized transactions, authorize certain transactions with Cuban nationals located outside of Cuba, and allow a number of other activities related to, among other areas, telecommunications, financial services, trade, and shipping. Persons must comply with all provisions of the revised regulations; violations of the terms and conditions could result in penalties under U.S. law.

A Fact Sheet is available here:
To see the Commerce regulations, please see here and Commerce frequently asked questions related to Cuba, located here
To see the Treasury regulation, please see here and Treasury frequently asked questions related to Cuba, located here.

Need more information?
For more information on these regulations:
• BIS’s Foreign Policy Division at 202-482-4252 or http://www.bis.doc.gov/index.php/policy-guidance/country-guidance/13-policy-guidance/country-guidance/187-cuba
• Treasury’s Office of Foreign Assets Control at 202 622-2480 or http://www.treasury.gov/resource-center/sanctions/Programs/Pages/cuba.aspx

Closing out a successful 2014, Shawnee-based Mills Machine Company was honored by Oklahoma Labor Commissioner Mark Costello for its innovative commercial success and investment in Oklahoman jobs. Commissioner Costello presented company owner and president Chuck Mills with the Entrepreneurial Excellence in Oklahoma Award.

“I am constantly in awe of Oklahoma and the many successful and profitable private companies that I have been exposed to,” said Costello. “Each of these amazing business owners has a unique story about why they started their company and how it has evolved over the years. I want to honor these entrepreneurs for their commitment to Oklahoma and for their success in creating opportunities for other Oklahomans.”

The award was presented at the company’s Shawnee manufacturing facility on Dec. 18, 2014.

“Our company has been under the leadership of the Mills family for 106 years here in Shawnee,” commented Mills upon receiving the award. “But none of our success would have been possible without our loyal and hardworking employees.”

District 17 Senator Ron Sharp and District 26 Representative Justin Wood, who represent the Shawnee-area at the state capitol, were also in attendance. Both presented commendations to Mills.

Founded by the Mills family in 1908, Mills Machine Company is a leading manufacturer of earth drilling tools. It has become a multimillion dollar company providing a full line of specialty earth boring tools and accessories for water, mining, construction, utility and environmental applications. Under current owner and president Chuck Mills, the company has expanded to new domestic and international markets over the past 35 years.

Mills focus on investment in Oklahoman jobs is reflected in his service as the acting Chairman of the Oklahoma State Chamber of Commerce and the Governor’s Council for Workforce and Economic Development. Mills’ has previously served as the chair of the Oklahoma Governor’s International Team, an organization he continues as an active member.

The Entrepreneurial Excellence in Oklahoma Award recognizes Oklahoma-based entrepreneurs who have created profitable employment for their fellow Oklahomans and to foster a positive business atmosphere. Legislators, local Chambers of Commerce, civic organizations and the public nominate deserving businesses regardless of size or age, though the decision of award winners is left to the labor commissioner.

(Pictured above: (Left to right) Commissioner Larry Costello, Rep. Justin Wood, Chuck Mills, Sen. Ron Sharp, Shawnee Mayor Wes Mainord.)

Exciting news out of the Canadian Department of Foreign Affairs, Trade and Development as Sara Wilshaw has been named the Consul General for the Dallas region. Wilshaw, who succeeds the outgoing Paula Caldwell, will represent Canada in Arkansas, Louisiana, New Mexico, Oklahoma and Texas.

“The ties that bind 35 million Canadians to the 39 million people in this region are strong and growing,” wrote Wilshaw in an announcement on the consul general’s website. “And I’m eagerly anticipating being part of that.”

Wilshaw noted the strong Canadian-American partnerships in the energy sector as well as Canada’s ties to Oklahoma in her post.

“We defend North America together,” she wrote. “At Tinker Air Force Base in Oklahoma City, for example, 43 members of the Royal Canadian Air Force and Canadian Army form the Canadian Component.”

The new consul general promised business and government leaders in her jurisdiction that her office would also focus on sectors that are growing between the North American neighbors.

“Our team at the Consulate General engages local leaders on issues that affect North Americans, helps Canadians living and traveling in our region, and assists in building business relationships,” wrote Wilshaw.

Wilshaw worked for Customs and Revenue Canada and Statistics Canada prior to joining the Department of Foreign Affairs and International Trade in 1996.

She has served as Canada’s first secretary in Tokyo and counsellor at the country’s Permanent Mission to the World Trade Organization in Geneva. Wuksgaw has also served as a trade commissioner in the North Asia Commercial Relations Division, senior policy officer in the Multilateral Trade Policy Division, assignment officer in the Assignments and Pool Management Division, executive director of the Strategic Policy Division, director of the Innovation Science and Technology Division and of the Trade Commissioner Service Support Division, and director general of the Office of the Chief Trade Commissioner. Most recently she was a commercial minister at the Canadian high commission in India.

Kicking off the 2014 school year, public schools in Oklahoma City and Tulsa boasted a few new faces amongst its staff. Several certified teachers from Spain began their American-based teaching careers thanks to a three year visa program that aims to bring more bilingual teachers, specifically Spanish speakers, to serve the districts’ students. In Oklahoma City, 31 percent of the student population is English language learners, while in Tulsa the figure is near 20 percent.

Assistance in connecting those teachers in Spain with districts in Oklahoma came through a partnership between the Oklahoma State Department of Education and foreign embassies and academies. Overseeing much of this cooperation is the OSDE’s Desa Dawson, director of the world language education program. Dawson elaborated on her office’s efforts at promoting a different kind of foreign investment in Oklahoma.

What is the exchange program between Oklahoma and schools in Spain and France?

“The students who come to Oklahoma from Spain and France are involved in school partnership exchanges where the students can experience our educational programs while visiting our state. In return our students do the same with their partner schools in France and Spain.

“Some students from the schools in France choose to study specific aspects of our culture, history and education such as fashion, Native American tribes, race relations, math instruction. Others simply come to experience our way of life, and our students do the same in France.

“Our school partnerships with Spain are just beginning. The two Tulsa immersion schools’ students even attend classes in France and Spain along with the students there, and their counterparts travel to Oklahoma to attend school here for weeks at a time.”

Why is it necessary to bring teachers from Spain, with the memoranda of understanding with the embassy and Académie d’Amiens, to Oklahoma?

“Due to a critical shortage of teachers here in Oklahoma, we have been fortunate to utilize teachers from France and Spain to accomplish our desire to give Oklahoma students a beneficial international experience in culture and language.

“Our nation has promoted visiting guest teacher programs for a number of years to take advantage of transnational educational offerings for students and support global competency.

“These programs take place more often at the university level, but are now being seen in PK-12 schools too.”

How does one go about searching out teachers who are fluent in Spanish and English?

“The visiting guest teacher program has been offered by the Embassy of Spain in recent years and now is well established with an interview system to select teachers to meet the needs of school districts in the U.S.

“Representatives from both Tulsa and Oklahoma City public school districts went to Madrid, Spain to interview prospective applicants to the program after candidates were pre-selected by officials there for the specific positions that were needed. We have an education advisor from Spain assigned to Oklahoma and Texas who visited with the two districts prior to last year’s selection process. That same person then oversees the teacher orientation process in Spain prior to the departure and visits with the teachers in the school setting when they are assigned to positions in Oklahoma.”

Why is having these teachers, and MOU like the one that brought them here, important to Oklahoma in economic terms? What practical impact does it have on the state?

“Oklahoma is utilizing these teachers in two different ways at present. The first is to internationalize our curriculum to some extent by learning about other counties and sharing educational methods and expertise. Preparing students to enter into an international workforce is of utmost importance.

“The second benefit is to utilize the language skills of these educators to serve our English language learners as well as to bolster our language immersion programs. The only additional cost is for the J-1 Visa expense for each candidate. The visiting guest teachers are paid the same as Oklahoma teachers with similar education and experience.”

Why is the teaching and learning of languages other than English important to a landlocked state like Oklahoma?

“With the technological advances of today, no state is landlocked anymore! We cannot afford to be left behind in a world that is evolving ever more rapidly. The changes that have been made in language instruction reflect how we interact in the world today. Ultimately, it’s a long term investment in Oklahoma.

“We used to teach students to read and interpret the literature of other cultures in order to understand them. We now must teach students to communicate with the people face-to-face and concentrate on the listening, speaking, reading, and writing skills in a culturally authentic perspective. This is vital in order to conduct business, settle diplomatic issues, solve problems and advance civilization for peace and prosperity while carefully avoiding misinterpretation. This requires much more time and expertise as well as finding opportunities to interact.

“We welcome these teachers and the unique experience they bring to our students with open arms.”

With the U.S. Congressional budget deal announced in previous days, it appears the the Export-Import Bank is safe for the time being.

For Oklahoma firms looking to learn more about how the federal agency can assist their business and commonly asked questions, here’s a guide.

Export Finance Solutions Guide

Product-Selection-Guide-5-14

On Sept. 25, the Oklahoma Governor’s International Team hosted an evening reception for attendees and participants of the 2014 International Canoe Federation’s World Cup and Pan-American Championships. Athletes from 29 countries competed from Sept. 25-28, 2014 in races along the Oklahoma River’s Boathouse District, and many OKGIT members and affiliates were there to see it happen.

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Jonathan Neff credits his interest in international business to a trip he took around the globe in 1979, which stimulated his lifelong interest in other cultures. In 1990, he put that globe trekking experience into professional practice when he co-founded the International Law Section of the Oklahoma Bar Association. Since then, he’s worked with clients doing business in many countries throughout the world.

As he closes in on his third decade of practicing law, Neff is a well-established counselor for domestic and foreign firms involved in international trade and global business. He recently spoke about his work, the challenges his clients face, and the opportunities that international business present for investment in Oklahoma.

Can you explain how an Oklahoma lawyer becomes an expert on international trade and global commerce?

“I’ve practiced business law in Tulsa since 1985. I’ve always been interested in international business law and obtained a master of laws degree in global business law. In 1990, I co-founded the International Law Section of the Oklahoma Bar Association. Since then, my firm has represented many companies involved in international trade and global business—both U.S. companies doing business abroad and foreign companies doing business here, handling transactions in more than thirty countries.

Recently, we’ve handled several cross-border corporate acquisitions, including representing buyers and sellers of foreign companies and setting up companies abroad. Last year we represented a U.S. company acquiring a Colombian company, set up a Hong Kong subsidiary for a U.S. company, and represented buyers in corporate acquisitions in Canada. Also, we frequently draft and negotiate international agency and distribution agreements and employment contracts.

The more business globalizes, the more need there is for lawyers who understand international business law. Most U.S. lawyers understand the legal concepts in contracts, but it helps to have experience dealing with foreign legal systems and cultures which can be as different as the languages they speak. It’s also helpful to have extensive contacts in law firms abroad who are a great resource when accessing foreign legal systems.”

What are some of the challenges that international clients have had in establishing a working relationship in Oklahoma? Or perhaps what obstacles have they faced in trying to establish businesses or relationships with Okla.-based firms?

“An individual from a foreign culture may speak English, but nuances of meaning may not be the same, giving rise to misunderstandings. Unless that person has spent a good deal of time in the U.S. and understands our business culture, fundamental assumptions may be different. Neither party should assume that they understand the intent of the other party until ideas are thoroughly discussed.

It’s important to get to know the other party on a personal level and spend time together before undertaking a business venture together. Each party should fully understand the goals and expectations of the other party.

And, of course, they should have a well-drafted, unambiguous and comprehensive written agreement. Being successful in international business is difficult enough without misunderstandings between the parties.”

What are the ways you feel the investment environment in Oklahoma could be improved for the international businesses?

“The Oklahoma Governor’s International Team cooperates with the Oklahoma and U.S. Departments of Commerce and other state offices to serve as a crossroads of information for international business activities in Oklahoma. These organizations do a great job of providing educational programs and promoting international investment in our state, but there is still room for improvement in communications relating to global business activities in Oklahoma.

Oklahoma companies have a long history of doing business internationally and are far more involved in international business than many Oklahomans know. For example, few people know that a handful of companies in Tulsa provide the majority of all heat exchangers used in refineries throughout the world. To raise awareness of the importance of international business to our state economy, we need to tell our state representatives that international business is important to Oklahoma. State government should continue to support global trade and international outreach efforts to promote Oklahoma as an excellent place for foreign companies to do business.”

How do you believe improved international trade relations with companies in Oklahoma can benefit both the state and international firms?

“Oklahoma has many advantages for foreign businesses seeking to locate in this country, including a central location, a low cost of living, an educated workforce, and a business culture that is both sophisticated and ethical. Foreign companies often chose to establish operations in a major gateway city like Houston or Chicago, but they would do well to consider the advantages of setting up shop in Oklahoma.

On the other hand, international business and trade offer many advantages to Oklahoma businesses, the most obvious being much larger international markets hungry for the quality of U.S. goods and the U.S. business ethic. It’s interesting to note that many foreign businesses readily accept U.S. courts or U.S. arbitration as the forum for dispute resolution, since they anticipate fair treatment in our justice system. With proper counsel and guidance, there are enormous opportunities for U.S. businesses, particularly equipment manufacturers, to expand through international trade. Growth of international trade can only lead to growth of investment in Oklahoma.”

Are there any success stories you can describe regarding a client you represented in terms of them seeking and investing in Oklahoma?

“It may be more helpful to describe a trend. Thirty years ago in Oklahoma, international trade and global business expansion were seen as the exclusive province for major national and international corporations, well beyond the reach of many smaller businesses.

Over the years, however, with the growth of the internet and global communications, smaller businesses have come to realize that they too can do business on a global scale. In the past decade, more of my clients are small to mid-sized companies accessing global markets and developing sophisticated global business organizations by engaging agents and distributors, opening branch offices, or forming subsidiaries abroad. With ongoing harmonization of trade regulations, in time international markets are becoming accessible to even the smallest businesses.”

If you would like to learn more about doing business or investment in Oklahoma, please visit the Oklahoma Governor’s International Team at www.OKGIT.com. The Governor’s International Team (GIT) is a group of citizens representing private industry, government, education and non-profits from across the state of Oklahoma who are dedicated to help shape a stronger Oklahoma in the global economy.

For more information about Jon Neff’s services, please visit www.jnefflaw.com or call (1) 918-599-8600.

Though outsourcing has been of increasing concern for more than a decade in the U.S., the phenomenon is not a new one. In the dark days of the Great Depression, the federal government explored any means necessary to put the country’s workforce back into the factories and offices of the United States. In order to combat the ill-fated 1930 Smoot-Hawley Tariffs, Congress passed the Foreign-Trade Zone Act. By designating specific geographic areas in or adjacent to Customs Ports of Entry, the act sought to expedite and encourage foreign commerce in the United States.

Foreign-Trade Zones were designed to alleviate the duty and import burdens on American businesses, thereby promoting jobs and investment at home.
In today’s connected world, where modern technology has mooted major logistical challenges that once plagued firms dealing with foreign vendors, the importance of Foreign-Trade Zones are a key component of keeping American employees and businesses working.

First, Foreign-Trade Zones provide important financial incentives for businesses, specifically by offering duty deferral on goods that enter the country. This includes a duty and quota charge exemption on imported goods that are later re-exported. Firms can also apply to the Foreign-Trade Zone board for an inverted tariff for duty reductions if a lower tariff rate will apply to the finished product when it leaves the zone in comparison to the tariff applied on foreign components.

In terms of logistic costs, firms can also benefit by being granted a weekly, single customs entry charge rather than paying multiple entry fees. The FTZ can also save time for businesses importing components by eliminating duties on rejected and defective items.

In its ongoing mission to promote both jobs and investment in Oklahoma, the state currently boasts four Foreign-Trade Zones. The Port of Catoosa’s FTZ 53 is located in the northeast portion of the state surrounding the Tulsa metropolitan area. Run by the City of Tulsa-Rogers County Port Authority FTZ 53 also contains two subzones in the Claremore Industrial Park and Claremore Regional Airport. Also serving the state’s northeast is The Port of Muskogee FT 164, which is run by the Muskogee City-County Port Authority. Located at the confluence of the Arkansas, Grand and Verdigris Rivers, the Port of Muskogee is a prime location to ship bulk cargo anywhere in the world via the McClellan-Kerr Arkansas Navigation System.

Oklahoma City’s FTZ 106 is located next to Will Rogers World Airport, with an additional 71 million living within a 500-mile radius of its operations. The site is near three interstate highway routes in I-35, I-40 and I-44, meaning it can provide next-day service to the entire country. FTZ 106 also boasts two magnet sites in Enid Woodring Regional Airport and the Shawnee Regional Airport in addition to a usage-driven designated site at VF Jeanswear in Seminole, Okla. Through the utilization of the recently upgraded Alternative Site Framework, FTZ 106 has streamlined its alternative site designation process. Alternative sites can be identified, appraised and approved in around 30-45 days.

Serving the state’s southeast and the nearby Dallas-Fort Worth area is FTZ 227. This zone is comprised of the three separate sites of the International Business Park of Durant, Okla., the Ardmore Industrial Airpark, and the Westport Industrial Complex, also located in Ardmore. FTZ 227 is in close proximity to Highway 69/75, the direct route from Laredo, Texas to Kansas City. This motorway also passes through both the Port of Muskogee FT 164 and Port of Catoosa FTZ 53. It is less than 100 miles from interstate highways like I-25, I-40, I-20 and I-45, and is within an hour’s drive of Dallas, a national cargo distribution center.

Oklahoma’s geographic location in the heart of the continental United States allows it to benefit from its four Foreign-Trade Zones. Companies based here or partnering with firms based in the state also stand to benefit from the advantages that come with an FTZ designation. If you would like to learn more about doing business or investment in Oklahoma, please visit the Oklahoma Governor’s International Team at www.OKGIT.com. The Governor’s International Team (GIT) is a group of citizens representing private industry, government, education and non-profits from across the state of Oklahoma who are dedicated to help shape a stronger Oklahoma in the global economy.

Tulsa Port of Catoosa photo courtesy of www.PortofTulsa.com

Founded in Hill, New Hampshire just a few years after the American Civil War, Red Devil Inc. has proven its adaptability to an ever changing global economy for more than a century. Manufacturing a line of over 400 tools and chemical products, the family-owned firm has made it a point of pride in maintaining profitability by understanding its production shipping costs. With these concerns in mind, Red Devil located it’s chemical production to Pryor, Oklahoma in 1973 in order to take advantage of its central location in relation to Chicago, where two of its largest customers were based. It also opened its office headquarters in Tulsa in May 2005 after deciding to shutter it’s New Jersey facility due to cost considerations. For Red Devil VP George Lee III, one positive in relocating his firm from New Jersey was the quality of the local workforce.

George Lee

George L. Lee, III

“It’s obviously industry dependent, but I feel that there is a great set of core values in the Oklahoman worker who gives a fair day’s work for a fair day’s pay,” said Lee. “Sometimes this gets overlooked by government agencies who concentrate more on tax incentives, rebates and other programs to lure potential inward investment.”

Red Devil’s Pryor operation boasts a state-of-the-art manufacturing facility in the state’s largest industrial park. Amongst the more than 70 tenants at MidAmerican Industrial Park are seven Fortune 500 companies. The 9,000 acre park is located in the geographic center of the U.S., and has access to nearby highway, railway, waterway and air transportation distribution points for those serving global markets “Logistics these days are quite sophisticated,” explained Lee. “So fears of being ‘landlocked’ are overblown in my opinion. If a company is time critical with either suppliers or customers, they will have to factor that into their locational decisions. When serving our customers, both domestic and international, we can use the Port of Catoosa for bulk transport or the interstate highway system for all points on land. If there are time critical shipments, there are also the air facilities available in Tulsa and Oklahoma City.”

Though Red Devil originally started out as a hardware and tools manufacturer, Lee estimates that 75 percent of its current sales are from its chemical products. Given that most of these products are water based, another draw for its investment in Oklahoma was the industrial park’s water and power infrastructure. Mid America boasts some of the lowest water costs in the country, one coal and two natural gas fired power plants and dual-fed electricity at wholesale rates to the park’s tenants.

Now entering its fortieth year in Oklahoma, Red Devil continues to provide its more than 400 products to international clients the world over. In doing so, it relies on the established relationships built up over decades of doing business, combined with its two person sales team in Pryor.

“We utilize foreign representatives,” said Lee, “And wherever feasible and economically viable, we try to find partners who will invest in inventory and distribute locally to their marketing areas.”

Given the challenges facing businesses since the 2008 financial crisis, Red Devil’s move to Oklahoma appears to have paid off. Largely unaffected by the economic strains affecting job creating businesses in other parts of the country, the state has maintained at worst, modest growth rates in each of the past four quarters. With its workforce, logistical infrastructure and positive economic climate, investment in Oklahoma looks to be a safe bet for firms of all kinds.

If you would like to learn more about international investment opportunities in Oklahoma, please visit the Oklahoma Governor’s International Team at www.OKGIT.com. The Governor’s International Team (GIT) is a group of citizens representing private industry, government, education and non-profits from across the state of Oklahoma who are dedicated to help shape a stronger Oklahoma in the global economy.