“FOR” and “AGAINST” consignment

Pavel Bogdanov,

Deputy General Director for Marketing The national postal operator in Ukraine «Ukrposhta»

Number of employees - 98 000, of which:• Postal operators - more than 20 000• Postmen - more than 40 000 people

Cars - 4229 units.

Each year (2011):• Written correspondence - 310 million units.• Transfers - 22.0 million units.• Parcels - 18.1 million units.

Coverage - 29,801 villages. Among them: - Urban - 1344 - Rural - 28457

Post offices - 13.7 thousand

Ukrposhta today:

International services on transfer, customs clearance and distributing of mail and parcels of sender to one or more recipients.

Consignment is perfect for distance selling companies that are regular senders of mailings from one country to another or to several countries in the B2C and / or B2B segment.

Consignment is envisaged in UPU Acts. Conditions are established bilaterally by operators of origin and destination.

Consignment is:

Scheme of working with «Consignment»

Catalogue

Order

Percel

Transfer

Ukrposhta

Catalogue companyClient

Important aspects

COD value should be equal to the value declared

Limitation of delivery within the country is 30 kg in one parcel

Agreement about sharing departures "Consignment" achieved with:- Slovak Post (30.03.2005)-Deutsсhe Post (11.08.2006)-Czech Post (09.04.2009)

Also, on September 1 Ukrposhta has introduced new type of international transfers between Ukraine and Russia. This type of international transfers will allow Ukrainians to make purchases in the Russian shops through all branches Ukrposhta.

The order of payment: Sender (Russian Part) indicates the amount COD for payment in UAH; Recipient (Ukrainian Part) – Pays for goods in UAH; Sender - Receives payment for the goods in rubles.

Agreements

Consignment vs Direct Import:CONSIGNMENT: Sender prepares international mail and delivers it to Central Point the EU, where it becomes a subject to the customs clearance.Postal operator deliver a parcel to his partner Central Point in Ukraine, where it becomes a subject to the customs clearance in Ukraine (without payment of customs duties and VAT!).Parcels are delivered to the post office or directly to consumers.

DIRECT IMPORT:

The company selects a contractor in Ukraine to prepare packages, sends the goods in amount sufficient to maintain order in the next 2-3 months. In this case, it independently form a parcel and deliver it to Ukraine.Ukrainian partners are responsible for customs clearance, marking and sending parcels to postal operator in Ukraine.

ADVANTAGES: No certification requirement (except Goods for children cosmetics and personal care products) no need to pay customs duties and VAT.

ADVATNAGES: prompt delivery in Ukraine.

DISADVANTAGES: longer terms of delivery to the final consumer.

DISADVANTAGES: need for certification of each product group, a permit for the import goods, payment of customs duties and VAT.

Dynamics of turnover

turnover,

Why is it profitable work with Ukrposhta?

The largest and most reliable structure on the market of distance selling in Ukraine

We guarantee enforcing the international standards and norms regulated by the International Postal Union

All services from a single source, without intermediaries

Thank you for attention!

Pavel Bogdanov, Deputy General Director for Marketing

The national postal operator in Ukraine «Ukrposhta»

bogdanov@ukrposhta.com