welcome!!! 10760 south 7e az yuma, az 85365 10760 south 7e az yuma, az 85365

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Welcome!!! 10760 South 7E Yuma, AZ AZ 85365

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Page 1: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Welcome!!!

10760 South 7E

Yuma, AZAZ 85365

10760 South 7E

Yuma, AZAZ 85365

Page 2: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

What we want to accomplish.* An informative presentation on the Foreign

Trade Zone.

* Show how the FTZ

can save your clients

money and increase

your income.

* A look at the big picture, how can we build

the Southwest area as a Logistic Center Point.

Page 3: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Foreign Trade Zone 219Yuma County Airport Authority, Grantee of Foreign Trade Zone 219

U.S. Department of Commerce

Foreign Trade Zone Board

Grantee

Users and/or Operators utilization ofGeneral Purpose or Sub-Zone

Page 4: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Who is Desert Depot?Desert Depot is a public warehouse and logistic company operating Foreign Trade Sub-Zone 219b.

We specialize in industrial and manufacturing warehousing logistic service.

Page 5: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Part of the Gowan Group Gowan Company – Ag-chemical Specialty Crop

Gowan Milling – Formulation / Manufacturing Customers include, Dupont, Dow, Bayer, BASF

Gowan Seed - Specialty Crop Seed Dune Company – Full Service Crop Production supplier

Gowan De Mexico – Mexico Chemical Crop Production supplier

Margarita – International

Page 6: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Foreign Trade Zone 219bAn FTZ is a specific area that is recognized by US Customs as being outside of Customs territory. Some of the benefits that may be gained are:• Reduction, elimination or deferral of US Customs Duties.

• Imports can be stored in the FTZ and gradually removed as needed for JIT (Just in Time).

Improved logistics by

being able to sort, mix

and consolidate prior to

shipping to Mexico.

Page 7: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Foreign Trade Zone 219bOk, but has anyone around here used the FTZ?

1) Importer used FTZ 219b for warehousing raw material from Mexico that was from a foreign supplier to reduce inventory tax in Mexico and U.S. Duty. (Elimination of duty & tax savings)

2) Importer utilized FTZ for warehousing at Desert Depot for export production. The product was held in the warehouse until exported. No Duty paid, No Drawback. (Improved cash flow)

3) Importer used FTZ 219b to apply a US compliant (EPA) label. As the FTZ is outside of Customs territory, they were able to apply a new label without any penalty and have the product at the production site in time for manufacturing. Saved approximately 7 weeks. (Saving time)

Yes, and here are some examples of how the FTZ has already been used.

Page 8: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Lets look at how it works?

CA333054372197-1163137-11976503mapprint

The Customs Broker cuts a IT on each

container to Yuma

Assume that you have a customer that has two containers arriving in Long Beach with a) different parts, b) each container has a value of $200,000, and c) 4%US duty:

A 24 hr advance notice is given to the FTZ and Customs.

The containers arrive at Desert Depot and are

admitted into the FTZ.

1 2

The containers are then returned with no demurrage.

Page 9: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

San Luis Mexico

Lets look at how it works?

Within the Zone they can be inspected,

combined, mixed &

inventoried.

As part of JIT

supply chain, the raw materials are sent (TE) to Mexico as needed. For this example we are assume that it is sent for manufacturing over a 6 month period.

1

2 3 4 5 6

The number of Customs Broker transactions were

increased from 1 to 7.

Page 10: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Logistics Applications

How does this Save Money in the U.S.?

FTZ Savings on U.S. DutyInventory Value 400,000$ Assumption: information from sheet one % Duty 4.00% admitted in FTZ and then TE to the border.Number of Pallets 60Duty Amount 16,000$ Customs Retain 1.0% 160.00$ Cost of Money 10% Drawback Cost 15.0% 2,400.00$ Annual $1,600.00 Months from Drawback 36 4,800.00$ Monthly Cost 133.3333$ TOTAL SAVINGS 7,360.00$

NET SAVINGS 5,502.50$

1 Month 2 Month 3 Month 4 Month 5 Month 6 Month60 50 40 30 20 10

FTZ storage $.75 /Pallet $45.00 $37.50 $30.00 $22.50 $15.00 $7.50Documentation Fee $200.00 $0.00 $0.00 $0.00 $0.00 $0.00

FTZ fees $245.00 $37.50 $30.00 $22.50 $15.00 $7.50 Warehous fees $720.00 $260.00 $208.00 $156.00 $104.00 $52.00Total $965.00 $297.50 $238.00 $178.50 $119.00 $59.50 $1,857.50

Invoice Value

Tot

al W

areh

ouse

& F

TZ

cha

rges

Cost of MoneyDuty Amount

US Duty Rate

Gross SavingsNet Savings

Page 11: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Logistics Applications

FTZ Savings on Mexican Safe Harbor TaxInventory Value 400,000$ Annual 26,000.00$ % Duty 6.50% Per Pallet 433.33$ Number of Pallets 60 Pallet/ Month 36.11$ Tax per Pallet/Month 36.11$ Cost of Money 10%Per Paller Annual $3.61Monthly Cost 0.3009$

1 Month 2 Month 3 Month 4 Month 5 Month 6 MonthPallets 60 50 40 30 20 10Incurred Tax $2,166.67 $1,805.56 $1,444.44 $1,083.33 $722.22 $361.11Cost of Money $18.06 $15.05 $12.04 $9.03 $6.02 $3.01Total $2,184.72 $1,820.60 $1,456.48 $1,092.36 $728.24 $364.12 $7,646.53

The Combined value of both containers

The Tax rate #

of p

alle

ts at

beg

inni

ng o

f eac

h m

onth

Tot

al m

onth

ly s

avin

gs

The Total Savings over 6 months

How does this Save Money in Mexico?

Page 12: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Other SavingsHere is a sample of how working with a manufactures supplier you may

gain additional savings for them and increase business for all of us.

Inventory Carrying Cost Cost per unit storageInventory Cost 400,000$ Total pieces 30000% Carrying Cost 23% Pieces per pallet 500Yearly Dollar Cost 92,000$ Total pallets 60Monthly Dollar Cost 7,666.67$ Pallet dementions 44 48Per Pallet Cost / Month 127.7778$ Total Sq. ft. per pallet 14.7Per Piece Cost / Month 0.2556$ Total space required 440.0

Pallets stack height 2 Floor Space Utilization ValueUsage (pallets per month) 10.0 $0.00Storage charge per pallet $5.20Handling charge per pallet $6.80

1 Month 2 Month 3 Month 4 Month 5 Month 6 Month60 50 40 30 20 10

Pallets 60 50 40 30 20 10Storage Charge Month $312.00 $260.00 $208.00 $156.00 $104.00 $52.00Handling Charge $408.00 $0.00 0.00 0.00 0.00 0.00Total Warehous fees $720.00 $260.00 $208.00 $156.00 $104.00 $52.00 $1,500.00

Carring Cost $7,666.67 $6,388.89 $5,111.11 $3,833.33 $2,555.56 $1,277.78Floor Space Utilization Value $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Total Carrying Cost $7,666.67 $6,388.89 $5,111.11 $3,833.33 $2,555.56 $1,277.78 $26,833.33

TOTALSavings (-.00) Cost .00 -$6,946.67 -$6,128.89 -$4,903.11 -$3,677.33 -$2,451.56 -$1,225.78 -$25,333.33

Same value as used on other examplesUsed Customers Inventory Carrying Cost

Inventory carrying cost savings

Page 13: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Recap Savings vs. CostLet’s recap what all the benefits could be in this example. Mexican Inventory Tax $7,646

US Duty $7,360

Inv. Carrying Cost $26,833

Reduce Demurrage Charges

Avoid Mexican or U.S. Customs Penalties

The User Benefits

The Customs Brokers benefits

Better service to your customer

Increase the number of billable transactions

Use as a sales tool

Page 14: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Facility Overview

Two buildings totaling 215,500 sq. ft.

Building 1 is 103,000 sq. ft. concrete tilt up construction environmentally controlled for hazardous materialsBuilding 2 is 112,500 sq. ft. steel building for general commodities.All buildings are protected by high pressure fire sprinklers.Monitored security system, lighting, fencing and strict security procedures, compliant to US Customs.Hazmat Safety trained Staff.

Desert Depot has the ability to expand,

or customize our facility and servicesto include rail.

Page 15: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Facility OverviewAdvanced Warehousing Management Technology.

Fully Bar Coded warehouse with lot or serial number tracking.

Proprietary on-line EDI capability.Internet inventory reporting at www.desertdepot.com.Customized inventory and logistic

reports.

Page 16: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Visit our Website at www.desertdepot.com

Page 17: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Pacific Rim

Europe & East Coast

Produce Market

Maq

uila

dora

Can

adia

n M

arke

t

Developing Logistic Center

We need to provide Value Added Services

Develop a Transportation

Interchange point more involvement with the Can/Mex corridor

Page 18: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Southwest Arizona Port Users

Trucking

FTZ/WarehousingFreight Forwarding

Customs Broker

Air Freight SWAPU

ORGANIZATIONTO FACILATE ACTION

ProduceIndustry

CUSTOMS, GYPA, GYEDC, YCAA AND OTHERS

Results

MaquiladoraManufacturing

Page 19: Welcome!!! 10760 South 7E AZ Yuma, AZ 85365 10760 South 7E AZ Yuma, AZ 85365

Give us a call!

Desert Depot Phone 928-344-3272

10760 South 7E Fax 928-344-0331

Yuma, AZ 85365 www.desertdepot.com

David Mansheim General Manager Mobil 928-920-6817