0.01 introduction
TRANSCRIPT
oing business in a global environment canseem worlds away from the familiar daily
routines for American industry. Nevertheless, aproductive, cost effective work force and favorabletrade regulations are leading more and moremanufacturers to establish operations offshore.
Many companies have found that these businessopportunities are tempered by the complex realities offoreign business practices and regulations.
Since 1979, we have provided manufacturers in NorthAmerica with international trade software applicationsto ensure proper compliance. Over 500 customers,Fortune 1000 clients through locally ownedmanufacturers, benefit from our products, support, andservice, which have earned us the reputation of thepremier software provider in the trade industry.
Our products, Customs Accounting for Mexico (CAM)and NAFTAssistantTM, provide turnkey solutions forCustoms and traffic departments throughout NorthAmerica. Our comprehensive products provide all thetools required to properly cross shipments to and fromthe U.S. and Mexico. Our software applications allowthe importer/exporter to maximize the benefits ofNAFTA and different Mexican trade regulations.
We provide a comprehensive support package thatguarantees timely updates to law changes required byMexican and U.S. governments, telephone supportwith our bilingual customer support representatives,system enhancements, and electronic customer supportvia our Internet website.
As new laws and regulations are announced, we makesure if it affects the software application, you to will beupdated with the newest version of the software.Software upgrades are provided free of charge tocustomers under maintenance and are an importantresource to keep you in compliance.
Ease of use is a PSI hallmark. Providing an easy to useWindows interface, users are able to navigate throughthe application(s) like other traditional Windowsprograms. Each function and feature is executable
through a click of the mouse. Printing of documents isalso just a click way. Reports provide an additionalfeature to view on screen prior to printing a hard copy.
Users are guided through an entire process in a logicalstep-by-step sequence that ensures that the data isentered correctly and efficiently. If further automationis required, download files (or interfaces) are easilyaccomplished to skip entire data entry procedures.Completing compliance documentation or NAFTAanalysis can take as little as a few minutes comparedto hours or even days when qualifying extendedproduct structures. Simply let the system process andprint or create electronic files of the documentationand sign to submit to Customs, or your broker.
Recognizing the bilingual nature of North Americanmanufacturers, our software applications are accessiblein English and Spanish allowing operators on bothsides of the border to work with a common system.System menus, reports, messages, on-line help, andbuttons are all provided in the specific languageenvironment. A menu option to toggle betweenEnglish and Spanish is provided, rather than mixingboth languages on the same screen which usuallycreates a difficult to read and busy screen for the user.
To meet the demands of our vast manufacturing clients,we have developed interfaces to popular third partybusiness software applications including: J.D. Edwards,SAP, Baan, BPCS, PRMS, MacPac, JBA, MAPICS, andother third party or corporate legacy applications.Regardless of which business application software youuse we have always had the policy of working withyou and third party providers to link our application toyour software eliminating data entry redundancy.
We meet our customer's diverse requirements byhaving our products available a client/server (ADO)environment with database compatibility with Access,SQL Server, AS/400 DB2, and Oracle.
Copyright (c) PSI Software, Inc. All rights reserved. Information in thesedocuments is subject to change without notice. Otherproducts and Companies referred to herein are trademarks or registeredtrademarks of their respective companies or mark holders.
The most
pronounced
differences affecting
manufacturing
occur in the
areas of trade
compliance. Every
manufacturer faces
challenging
situations with
Customs authorities
when moving
materials and
products throughout
North America.
0.01
INTRODUCTIONINTRODUCTION
D
exican manufacturing customsdepartments require speed, accuracy, and
compliance while maintaining a complete audit trail ofall documentation. Failure to do so could be thedifference between success and failure in the just-in-time environment.
Prior to January 2001, components shipped to Mexicoused in the production of products benefited from dutyfree status as long as the products where exported outof Mexico. With the introduction of new laws andregulations in 2000, manufacturers in Mexico are nowobligated to present supporting NAFTA documentationor declare components under the different sectordevelopment programs (PROSEC) in order to avoidpaying full duties.
To add to the extensive reporting requirements,Mexican Customs continues to modify its electronicdata transfer (SAAI) and official documentation(pedimentos). Without proper compliance in theseareas, it will not matter if the items meet NAFTA orPROSEC requirements, since they will be rejectedfor improper Mexican Customs procedures.
PSI's Customs Accounting for Mexico (CAM) providesmanufacturers with the piece of mind that all MexicanCustoms requirements are being met. Compliance iseasily achieved through CAM's knowledge and contentbase. Customs laws are carefully reviewed andimplemented in the application as they occur.
In compliance with both Anexo 24 and Article 303,CAM, keeps a record by part numbers shipped toMexico and the program code (NAFTA, PROSEC, etc.)to properly calculate duties. CAM allows for multipleentries of the same part number on the same invoice inorder to insure that all trade programs are treatedindividually for each part number and duties arecalculated correctly.
To complete the duty calculation process, CAM appliesthe duties of all parts shipped out of Mexico andcompares them against the transaction history for thecomponents and determines what duties, if any are dueto Mexican Customs. There is no need to manuallytrace the materials when they entered the country andunder what program, CAM handles all the calculationsand liquidation for you through the stored materialinventory process.
Maintaining this level of detail allows for a completeaudit trail to be saved. There is no second-guessingwhen the part numbers entered and left Mexico andunder which favorable duty program. Having an audittrail with this information allows customs departmentsto focus on other issues.
For apoderados (Mexican in-house licensed broker)maintaining fully automated and reliable software iscritical in keeping with the stringent brokeragerequirements. CAM provides the required tools for anapoderado to submit the essential information. Fromthe Pedimento (individual and/or consolidated) to theSAAI M3 electronic files, PSI users rely on CAM for100% compliance. During the implementation phasesof the different Mexican Customs programs andautomation, PSI has always had a reliable track recordfor manufacturers operating as their own brokers.
CAM provides a total customs accounting solution formanufacturers in Mexico that remains in accordancewith regulations, even as volatile law changes occur.
Make CAM a key tool for your Mexican Customscompliance team.
Constant changes
in Mexican
Customs procedures
and regulations
have created a
burden on
manufacturers for
record keeping and
documentation
requirements.
Information is now
more extensive and
requires special
attention to enjoy
similar duty free
benefits previously
allowed by the
maquiladora
industry.
0.02
CUSTOMS ACCOUNTING FOR MEXICOCUSTOMS ACCOUNTING FOR MEXICO
M
he North American Free Trade Agreement, orNAFTA, has opened the flow of trade on this
continent. It has also tremendously increased thecomplexity of customs compliance. Determiningwhether your goods qualify for NAFTA can be acomplex, time-consuming process. Working in adynamic environment that involves thousands ofproducts and hundreds of suppliers in an increasinglycompetitive market can turn this already complexprocess into an intimidating ordeal. Developing aworkable, effective strategy to take maximumadvantage of the opportunities presented by NAFTAcan be a difficult task.
It's also a very necessary task since inadequate proof oforigin can expose you to liability in the form ofretroactive duties, serious penalties, fines, or the loss ofimport privileges. U.S. Customs has substantiallystrengthened is Regulatory Audit Division. This, alongwith the new standards of due diligence reasonablecare in the U.S. Customs Modernization Act, meansthat now more companies than ever will be reviewed.Compliance Assessment Team (CAT) audits review theimporter's internal control procedures for managingcustoms compliance. In a typical inquiry, Customsrequests to see Certificates of Origin supported byfull documentary evidence. They expect to find acorporate strategy for complying with customsregulations. Without the proper customs complianceprocedures in place, a CAT audit could become anightmare.
PSI Software's NAFTAssistant™ software solution takesthe worry out of NAFTA. It helps you to implement anorganized, disciplined, self-documenting approach tocompliance. NAFTAssistant subjects each of yourgoods bill of materials to a qualification process todetermine whether it qualifies for preferentialtreatment. NAFTAssistant produces worksheets that
detail how that determination was reached or, in thecase where a good does not qualify, documents thereasons why it failed to qualify.
NAFTAssistant performs this extensive analysis utilizingthe Specific Rules of Origin that apply to each good,tracking suppliers' NAFTA Certificates of Origin andmanufacturer's affidavits for the proper determinationof origin of materials. NAFTAssistant's multi-countrycapability allows you to classify the same good usingcountry-specific HTS classifications in those caseswhere goods are classified differently by the variousNAFTA party countries.
NAFTAssistant produces NAFTA Certificates of Originin the formats approved by each party country. Just asimportant, it maintains a history of which certificateswere provided to which customers, which goodsappeared on each Certificate, and which worksheetsprove that each good was eligible to appear on eachcertificate. In other words, a complete audit trail!With NAFTAssistant as a strategic tool, you can takeadvantage of the tremendous competitive advantageNAFTA provides . . . without the worry.
With
NAFTAssistant
as a strategic
tool, you can
take advantage of
the tremendous
competitive
advantage
NAFTA provides...
without the
worry.
0.03
TNAFTASSISTANT
NAFTASSISTANT
SI"s applications, CAM and NAFTAssistant arefeature rich and complete applications on
their own. Together, however, they create a turnkeysolution for manufacturers. Not having to second guessparts origin on shipments, trade program compliance,duty declaration, printing invoices, printing auditedNAFTA Certificates or Origin, and many other tasksrequired day in and day out for manufacturers are allattainable by using PSI's CAM and NAFTAssistant.
Compliance information is synchronized betweenNAFTAssistant and CAM , creating checks and balancesfor proper compliance with both Mexican and U.S.Customs.
Meeting with extensive Mexican Customs, Anexo 24,Article 303, NAFTA, and other trade rules andregulations is easily achieved through the use of bothapplications. Data and information is easily transferred
and synchronized so that the same information is notentered in many software applications, and worse yetin multiple incompatible software applications.
Using PSI's complete compliance solution, eachsoftware application concentrates on the specialty itwas designed to do. In this way, you know that allyour Mexican Customs compliance is properly handledby the appropriate software, while all NAFTAcompliance is managed by a model specialized inNAFTA compliance. Meanwhile, both applicationsmake for the only complete compliance solutionavailable.
Using PSI’s
complete
compliance
solution, each
software
application
concentrates on the
specialty it was
designed to do.
0.04
FULL CUSTOMS COMPLIANCEFULL CUSTOMS COMPLIANCE
P
Training
As part of our commitment to your success, we providetraining for our application software at our trainingcenter in El Paso, TX or at your facility. Trainingsessions consist of a full day of training for each of thesoftware applications. Training classes are held forindividual companies and for as many personnel youwish to train on the application.
Monthly Training Classes
As an added service to our customers we offer short 2to 3 hour classes once a month covering a specifictopic within each of the applications. These classes arefree of charge and are held at our El Paso facility.Classes are published one month in advance so youmay make plans to attend this free training session.
Supplier Training
Manufacturing in North America you are no doubtaware that one of the biggest challenges of compliancecan be obtaining accurate and correct NAFTACertificates of Origin from your suppliers. Based onwhat we have seen, perhaps 90% of the Certificates ofOrigin provided by suppliers to our customers areincorrect.
PSI would like to make your job easier. To that end, weare pleased to announce a new program designed toeducate your suppliers on the correct way to completea NAFTA Certificate of Origin. Training sessions of thistype typically cost $350 to $500 per person. We areoffering the class at no charge to your suppliers. As partof the program, PSI will:
• Provide invitation material that you can send to as many suppliers as you wish to invite,
• Travel to your location or the city of your choice,
• Secure a room (if you do not have one on-site that would be suitable) for the class,
• Provide the instructor, and• Provide all training materials.
All we ask that you do is:• Provide lodging and travel instructions for
your suppliers,• Deliver invitations to your suppliers,• Ensure that a minimum of 20 persons will
attend, and• Attend the session yourself.
In most cases, the more certificates you can obtain foryour materials, the easier it is to qualify your goods.This can translate to direct savings in duties, or acompetitive advantage over your competitors who areunable to certify their product as originating, or both.Recent changes in customs law that took effect onJanuary 1, 2001 for manufacturing facilities in Mexiconow provide for duties on non-originating materialsimported into Mexico. You can avoid such duties byhaving a NAFTA Certificate of Origin for thosematerials. But only if the certificates are valid.
Since the training class is part of our service, don't missout on this opportunity. We will provide you with apackage containing a sample invitation, courseoverview, and other materials that you can use to makeyour suppliers aware of this offer. Events are scheduledon a first-come first-served basis.
Software Interfaces
Through the many years of experience in this industrywe are aware of the data requirements to maintain anefficient customs compliance application. Although ourapplications are a complete and reliable tool to meetwith your compliance efforts, they are only as good asthe data. Many times the data is also only good if it issynchronized with your business software applicationswhere all current pricing, part numbers, suppliers, etc.are updated.
PSI Software
has extensive
experience in the
integration of CAM
and NAFTAssistant
with advanced
manufacturing
systems.
0.05
SERVICESSERVICES
PSI Software has extensive experience in the integrationof CAM and NAFTAssistant with advancedmanufacturing systems. PSI has previously developedinterfaces to J.D. Edwards, SAP, Baan, BPCS, PRMS,MacPac, JBA, MAPICS, and other third party orcorporate legacy applications. PSI can participate withyou to jointly develop interfaces that will allow theuser to take advantage of PSI's CAM and NAFTAssistantfor customs regulations, while utilizing an interfacesynchronize bill of materials, part master, costs, vendor,and other pertinent data.
Interfaces to manufacturing systems are all customcoded to meet the requirements of each individualcompany. PSI has developed many interfaces in thepast, however, all are unique and specific to eachinstallation. The interface specifications andresponsibilities are discussed with the client to assure asuccessful interface development.
Additional Services
When purchasing PSI's customs complianceapplications, you may require additional assistanceabove and beyond the software application. Althoughwe have designed our applications to meet with yourcustoms compliance requirements, you must in turn beaware of the data and information that will be used tocreate the documentation, history, and audit trail forthose transactions. As with most other applicationswithin an organization, software is a part of yourcomplete customs compliance. Under the CustomsModernization and Informed Compliance Act, or "ModAct," audits are occurring more often and companiesshould be more aware of all areas of their customscompliance.
Through relationships and partnerships that we haveformed with consulting firms we are able to provideyou with international trade services that reach beyondour software applications, yet include our software aspart of your complete customs compliance efforts.
Through our partners we are able to provide you withsoftware implementation, U.S., Mexican, and CanadianCustoms consulting, classification, in-house audits,procedure reviews, and other trade consulting you mayrequire. Utilizing our software and through ourrelationships with leading consulting firms you couldfeel comfortable that your compliance process andprocedures will work together with all of PSI's customscompliance applications.
Updated information on consulting firms withimplementation and consulting knowledge on PSI'scustoms compliance software is available on ourwebsite or by calling us.
CONTACT US
For more information, a demonstration, or a 30-day noobligation trial, please contact us. We will be glad todiscuss with you your operation and customscompliance requirements. Through our applications,services, and partners we are able to take the worry outof your trade automation requirements.
You may visit our website for additional information ordownloads at www.psisoftware.com or you maycontact us at the following:
Main OfficePSI Software, Inc.7326 Remcon CircleEl Paso, Texas 79912
Tel: 915.584.4100Fax: 915.587.0199E-mail: [email protected]
A major software
release that may
require special
software training is
provided, as they
are needed.
Through annual
regional seminars
we are able to
provide new version
and law changes to
the applications
that apply to the
way the software is
used in your
business
environment.
0.05.1
SERVICES / continuedSERVICES / continued