welcome!!! 10760 south 7e az yuma, az 85365 10760 south 7e az yuma, az 85365
Post on 15-Jan-2016
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TRANSCRIPT
Welcome!!!
10760 South 7E
Yuma, AZAZ 85365
10760 South 7E
Yuma, AZAZ 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.
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
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.
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
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.
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.
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 $200,000, and c) 4%US duty:
A 24 hr advance notice is given to the FTZ and Customs.
The containers arrive at Desert Depot and are
admitted into the FTZ.
1 2
The containers are then returned with no demurrage.
San Luis Mexico
Lets look at how it works?
Within the Zone they can be inspected,
combined, mixed &
inventoried.
As part of JIT
supply chain, the raw materials are sent (TE) to Mexico as needed. For this example we are assume that it is sent for manufacturing over a 6 month period.
1
2 3 4 5 6
The number of Customs Broker transactions were
increased from 1 to 7.
Logistics Applications
How does this Save Money in the U.S.?
FTZ Savings on U.S. DutyInventory Value 400,000$ 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 $1,857.50
Invoice Value
Tot
al W
areh
ouse
& F
TZ
cha
rges
Cost of MoneyDuty Amount
US Duty Rate
Gross SavingsNet Savings
Logistics Applications
FTZ Savings on Mexican Safe Harbor TaxInventory Value 400,000$ 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 $7,646.53
The Combined value of both containers
The Tax rate #
of p
alle
ts at
beg
inni
ng o
f eac
h m
onth
Tot
al m
onth
ly s
avin
gs
The Total Savings over 6 months
How does this Save Money in Mexico?
Other SavingsHere is a sample of how working with a manufactures supplier you may
gain additional savings for them and increase business for all of us.
Inventory Carrying Cost Cost per unit storageInventory Cost 400,000$ 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
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
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.
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.
Visit our Website at www.desertdepot.com
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
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
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