Exporting Products to Latin America

1. F.E.P. INTERNATIONAL TRADERS, INC. Exporting Products to Latin America Some general guidelines and practical considerations

2. F.E.P. INTERNATIONAL TRADERS, INC. • Morty Weisselberg • B.Sc. Engineering, B.A. Economics – N.C. State University – 1970 • 1970 – 1973 – Planning officer – Ministry of Industry and Trade, Peru • 1973 – 1976 – Finance manager – ENCI – Government Trade Corp, Peru • 1977 – 1988 – Finance and Admin. Manager – UMETAL, Lima Peru • 1988 – Current - Owner – Manager, F.E.P. International Traders, Inc.

3. F.E.P. INTERNATIONAL TRADERS, INC. • F.E.P. INTERNATIONAL TRADERS, INC. • Established: November 1988 • Initial objective: Export of equipment, parts and supplies to the mining industry in Peru. Currently exporting also to Bolivia, Chile, and Colombia. Some sales also in Canada. • Employees: 2 full time, 1 part time • Type of operation: Small business • Website: www.fepinternational.com • Email: morty@fepinternational.com

4. Primary considerations F.E.P. INTERNATIONAL TRADERS, INC. • Identify the products you want to export • Identify your market(s) – Where? Why? (Market and product knowledge) • Marketing objectives: Industrial or consumer? • Marketing level: How are you going to market your products? Local distribution or export only? • Local agents overseas

5. Where do you get information on the products and demand for them? F.E.P. INTERNATIONAL TRADERS, INC. • Internet • Chambers of Commerce • Dept. of Foreign Affairs and International Trade (Commercial offices of the Canadian embassies). • Commercial offices of other countries’ embassies or consulates in Canada.

6. F.E.P. INTERNATIONALTRADERS, INC. Organizing your company • Why is it important? – Control, control, control. • Choices: In house, outsourcing, combination • Integrated sales administration and accounting (Quickbooks, etc) • Forwarding agent • Internet banking

7. The Process F.E.P. INTERNATIONAL TRADERS, INC. • Receiving an RFQ (Request For Quotation) • Obtaining a quotation from one or more suppliers • Providing an estimate to your customer • Receiving a purchase order • Issuing a purchase order to your supplier • Receiving the goods • Preparing the documents • Shipping the goods • Submitting documents to customer/bank • GETTING PAID

8. INCOTERMS(International Commercial Terms - ICC) F.E.P. INTERNATIONAL TRADERS, INC. • What are they? • Why are they necessary? • Who abides by them?

9. Documents Required F.E.P. INTERNATIONAL TRADERS, INC. • Invoice • Packing list • Shipping document (courier or airway bill or bill of lading) • CAED – Export declaration (B13) • Other documents • Certificate of origin • Quality certificate • MSDS • Dangerous goods documentation

10. Financing alternatives F.E.P. INTERNATIONAL TRADERS, INC. • Personal funds • Credit card • Bank loan • Letter of credit • - Transfer of l/c • - Bank loan against l/c • EDC

11. Customer Forms of Payment F.E.P. INTERNATIONAL TRADERS, INC. • A. Direct • Payment with purchase order • Payment prior to shipment • Payment against shipping documents • B. Through a bank • Payment against shipping documents through a bank • Letter of credit

12. FORWARDING SERVICES F.E.P. INTERNATIONAL TRADERS, INC. • Transportation (inland or overseas) • Warehousing • Inspection • Preparation of documents • Shipment of merchandise • Delivery of documents to customer • Collection of funds

13. Shipping Options F.E.P. INTERNATIONAL TRADERS, INC. • Courier • Air freight • Ocean freight

14. F.E.P. INTERNATIONAL TRADERS, INC. Sample Documents • Incoterms DHL.pdf • B13.jpg • Invoice.jpg • Packing List.jpg • Airway Bill.jpg • 10191 Cert An.pdf • Shipping instructions.pdf • Collection letter.pdf • Harmonized Tariff Codes Canada.pdf • Harmonized Tariff Codes Peru.pdf • Harmonized Tariff Codes Diff.pdf