EXPORT LOGISTICS

BANCOMEXT June 30, 2006.

Logistics is ...
In simple terms is to make sure the right product at the right place at the righ
t time and right price.

Martin Ashford, consultant, Deloitte & Touche

Logistics Strategy

Objectives: Customer Service Cost Reduction Reduction of Capital

Managing the supply chain
INFORMATION
Raw materials parts and components or subassembly initial process stores and who
lesale distribution to retailers CUSTOMERS Inbound Logistics Logistics Managemen
t Physical distribution materials
Factory
Finished goods inventory
Business Control over the flow of movements into and exit from the book "Contemp
orary Logistics"
The integrated logistics process

In small, medium and large, involves: All All supply chain the company:
Production departments, Purchasing, Marketing, Sales, Traffic, Distribution, W
arehousing, Administration and Finance
Part of Strategic Planning
CONTRACTS
CUSTOMS
TRANSPORT
STORAGE
LOGISTICS
Physical Distribution channels and channels
Export Documentation
Import documentation
Insurance
INCOTERMS Terms of Sale
Duty
Regulations
non-tariff
Triangle logistical decision-making strategy inventories: Transport strategy:
• Levels of inventory • inventory • Use control methods
Customer Service Objectives
• Means of transport • Allocation of routes / carriers • Scheduling • Size and s
hipment consolidation
Strategy Location: • Number, size and location of facilities • Allocation of poi
nts of supply outlets • Allocation of demand to supply points • Storage Public /
Private
Ronald H. Ballou, Logistics Management Supply Chain
INCOTERMS 2000 (International Commercial Terms)

Separation of costs and risks between buyer and seller contributions are used to
negotiate and agree where responsibility ends of the seller and the buyer begin
s are no payment terms should be noted on all shipping documents (invoice, lette
r of credit, etc. .)
Check the terms RAFTD (revised definition of U.S. foreign trade) when exported t
o the United States after not forget to note INCOTERM, location: example: Aguasc
alientes EXW, FOB Manzanillo, CIF Long Beach

Take into account in deciding the mode of transport

Type of product:
Hazardous Perishable Bulky Expensive Delicate

Take into account in deciding the mode of transport

Dimensions (length, width, height) Weight Transfers Packaging Conditions of temp

erature and humidity in-transit storage facilities (ports and airports) journey
time
Transportation Modes

Terrestrial

Automobile
Truck entirely
Consolidated Rail: full car

Maritime
General Cargo Container entirely Consolidated

Air: consolidated or charter

Terminology in additional charges to international freight transport
BAF: Bunker Adjustment Factor (Fuel Charge) EBA: Emergency Bunker adjustment (Em
ergency Fuel Charge) PSS: Peak Season surcharge (fee high season) For imports fr
om Asia to Mexico approx. June 15 to December 31 (average 25% of the cost of fre
ight) SSC: Security surcharge (security fee) THC: Terminal handling charge (term
inal charges, the logistics operator) Doc Fee: Charges documentation Also check
with the carrier broker and other fees and charges maneuvers

Shipping
Methods of contracting services

Door to door (door to door) Door to door (door to port) Port to port (port to po
rt) Receivables (freight collect) there is usually a charge for freight collect
Prepaid (freight prepaid)

Dry container
Reefer container
Platform
Reefer container
Flat rack container
Be sure to use all the available space in the
Shipping
Form collection

Container in full:
X dollars per container eg $ 1,500 per container
Consolidated and overhead:
X ton X dollars. O. m3 (whichever is greater) eg $ 100 per ton. O m3 1 TON =
1 m3

* Be sure to correctly calculate the charge transport

Check the available routes, transit times and costs
Sea route to Northern Europe
CP SHIPS
Quote FOB output port

Price EXW + Collection or delivery to the freight carrier at the port of departu
re and cargo on board maneuver permits, certificates, etc.€Processing of export
(customs broker) Insurance up aboard ship
= FOB Port of departure
CIF Port of arrival

FOB Price + Ocean freight shipping insurance

= CIF Port
arrival
FOB and CIF shipping only
Companies that provide transportation services:

Consolidators direct carriers and freight forwarders integrated logistics compan

ies:

And 4PL 3 PL (Third Party Logistics and Fourth Party Logistics)

Check that the data in the bill of lading are correct
Land transport
Form collection

Truck entirely, eg
$ 1.700 per truck 10 USD per c/100 pounds, or X dollars per pallet dimensions an
d weight x

Consolidated

Actual weight or dimensional weight (volumetric weight, where:

1 ton. = 2.5 m3 L x W x H in centimeters 2.500

Air transport
Alternatives

By air cargo on passenger aircraft cooled, dry and load small packages (FEDEX, D
HL, etc..) Charter (complete aircraft) Hand carry
Normal air cargo charges

Freight (x USD per kg.) Actual or dimensional weight, whichever is greater

Example: a box that measures 40 x 60 x 90 cms. And weighs 20 kgs. Freight: USD 5
.00 per kilogram 40 x 60 x 90 cms. = 36 kgs. 6.000 will be paid 36 x 5 = USD 180
.00

Collecting fuel charge handling charges (Handling charges)

FCA named place at source eg Guadalajara airport

Price EXW + collection or delivery to the carrier permits, export certificates S

tep (Customs Agent) Insurance up to that point
FCA named place, eg. Guadalajara Airport Note: This Incoterm is valid for any mo
de of transport
Times and freight costs accumulated in Comparative USD per unit of sale (box)
Concept Mar. Mar. days cost Autotr Air Cost Air days. Autotr days. cost
National Transit / Freight Customs Clearance expo hopes rather cruise Departure
Time / Freight Customs Clearance Transit country impo destination / freight Tota
l
2 1 3 17 2 2 27
.20 .07 .05 .30 .05 .10 .77
0 .5 .5 .5 1 .5 3.0
.70 .06 .03 4.00 .05 .70 5.54
2 1 .5 2 .5 1 7
.40 .03 .02 .60 .03 0 1.10
Official Mexican Standard for wooden emabalajes and expo impo: NOM 144-SEMARNA
T-2004 THAT ESTABLISHES Phytosanitary Measures INTERNATIONALLY RECOGNIZED FOR
WOOD PACKAGING, WHICH IS USED IN INTERNATIONAL TRADE OF GOODS AND MERCHANDISE.
Displacement .... example
1. Many pallets of 1 x 1.20 x 2 m. Can be loaded into a container 40, whose meas
ures are 12 x 2.37 x 2.45m? 12 x 2.37 x 2.45 1 1.20 2 or 12 x 1 x 1 = 12 pallets
12 x 2.37 x 2.45 x 1.20 February 1, 1910 2x 1 = 20 pallets More convenient
Tariff classification of your product:

Based on Tax Rate General Import and Export (TIGIE) 8-digit numeric code consist
ing of:

Chapter 21 XX XXXX. Item 2106. Sub-heading 2106.90 xxxx.xx tariff item 2106.90.9
9 XXXX.XX.XX
Section:
IV
Products from the food industries, beverages, spirits and vinegar; snuff and snu
ff substitutes prepared various food preparations Food preparations not elsewher
e specified or included elsewhere. - Other. Powders for the preparation of puddi
ngs and gelatins for diabetics. Tariff Ex 15 Ex IVA IVA F.F. Ex
Chapter: Item:
21 2106
Sub: Faction:
210690 21069001
U. Measure: Import Export Kg
Source: www.caaarem.org.mx

RESTRICTIONS: In Import: Chapter 4 of the NOM-051-SCFI-1994, except section 4.2.

8 (nutritional information), prior authorization COFEPRIS health (only when inte
nded for human consumption or for use in industrial processes food for human con
sumption and are intended for the final import customs procedures, temporary or
tax warehouse) in Export: ANNEXES: Annex 27
: Its imports are not subject to VAT (RG 05/02/1913.
)

QUOTAS: To Import: Member countries of the WTO: From March 18 to December 31, 20
06, powders for the preparation of puddings and gelatins, with preferential tari
ffs in the lists LXXVII-Mexico, Section IA and Section IB Fees Tariff Quota for
the purposes set forth in Part III, Section 4 of the Agreement on Agriculture re
leased 30/XII/1994 (Agreement is given to know the mechanism of allocation of ta
riff quotas for imports in 2006 with preferential tariffs set in the context of
the commitments made by Mexico in the WTO released 17/III/2006). To Export to: C
OMMENTS: General: In Import: Note 1: The importation of these goods from Colombi
a or Venezuela, will be subject to the tariff preference that follows,€regarding
the ad valorem rate of duty under Article 1 of the Ligier, provided that the go
od is originating in Colombia or Venezuela, in accordance with the provisions of
Resolution 252 of ALADI (Art. 7 of the Decree establishing the rate apply from
January 1, 2005 the IGI for goods originating in Colombia and Venezuela, publish
ed 28/XII/2004) in Export: Free Trade Agreements

Investigate the tariff and the tariff to be paid in the country of destination o
f the product Example for avocados in the European Union

Customs duties simulation Date: 29/01/2006 TARIC0804400010País Commodity code of

origin / destinoMéjico - MX other (412) 0804 Dates, figs, pineapple (pineapple)
, avocados, guavas, mangoes and mangosteens, fresh or dried-0804 40 -Avocados -
Fresh 0804 40 00 10 - 0804 40 00 90 Other Groups Nomenclature Products Import un
it values Unrestricted third-country law: 4% Regulation Tariff Preferences (MX):
0%
EXPORT DOCUMENTS
- Commercial Invoice / Commercial Invoice with no. and RFC in foreign currency,
excluding VAT, in English and Spanish INCOTERM used - Packing list / packing lis
t - Certificate of Origin / Certificate of Origin (if applicable) - Certificate
of quality and / or quantity (if required) - Other non-tariff requirements - Ins
urance policy - Letter of instructions to the broker - Letter of instructions to
the carrier
Check the 12 treaties and free trade agreements Mexico has with 42 countries, an
d the tariff preference that applies to your product
NAFTA Treaty TLC TLC-G3 Mexico - Costa Rica FTA Mexico - Bolivia TLC Mexico - Me
xico NAFTA Nicaragua - Chile FTA FTA Mexico - Israel FTA Mexico - TN
Countries United States and Canada Colombia and Venezuela Bolivia Costa Rica Nic
aragua Chile European Union Israel El Salvador, Guatemala and Honduras
Publication D.O.F. December 20, 1993 January 9, 1995 January 10, 1995 January 11
, 1995 July 1, 1998 July 28, 1999 June 26, 2000 June 28, 2000 March 14, 2001
Entry into force January 1, 1994 January 1, 1995 January 1, 1995 January 1, 1995
July 1, 1998 August 1, 1999 July 1, 2000 July 1, 2000 March 15, 2001 with the S
alvador and Guatemala and June 1, 2001 in Honduras. July 1, 2001 July 15, 2004 A
pril 1, 2005
TLC Mexico - EFTA FTA Mexico - Mexico EPA Uruguay - Japan
Iceland, Norway, Liechtenstein and Switzerland Uruguay Japan
June 29, 2001 July 14, 2004 March 31, 2005
Information Sources

www.bancomext.com www.caaarem.org.mx www.europa.eu.int www.apimanzanillo.com.mx

www.puerto-de-altamira.com.mx www.aduanas.sat.gob.mx www.economia. gob.mx
Thank you very much!