RECINTO FISCALIZADO ESTRATÉGICO. Non-Resident VMI & Forwarding Solutions by NEMX
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1 RECINTO FISCALIZADO ESTRATÉGICO Non-Resident VMI & Forwarding Solutions by NEMX
2 Two new HUBs in 2014: San Luis Potosí & Salamanca WHS Space growth: From 20,946 m2 to 73,973 m2 in 2 years 73, m 2 OFICINA WHS m 2 MEX 9, GDL 1, MTY 3, AGS 8, QRO 5, SILAO 22, SALAMANCA 10, Employees 10 Cities 32 Vehicles SLC 10,
3 What is RFE? RFE is a Mexican Customs Regime (Established in December 2002) which allows the time limited introduction of foreign, national or nationalized cargo for its handling, storage, custody, exhibition, sale,distribution, processing, transformation or repair*. RFE license enables Nippon Express to introduce cargo to Mexico as into our bonded warehouse (With full liabilities), while a foreign company will remain as cargo s owner, allowing storage, exhibition and distribution to Mexican companies. NEMX s SOLUTIONS BY RFE (1) NON RESIDENT VMI AS BONDED WAREHOUSE (2) DIVERSE FORWARDING SERVICES *NEMX focuses on storage, exhibiton and distribution services as RFE.
4 RFE Benefits No import taxes payment Cargo introduced to RFE Warehouse does not need to pay import taxes nor countervailing duties (Paid until RFE extraction) No need to comply Non-Tariff restrictions* Cargo is not subject to compliance with non-tariff restrictions nor Mexican Official Standards (NOMs) No Previo at Border/Port Cargo is introduced by Generic HTS Code, enabling Previo at NEMX s own facilities with no R1 in case of discrepancies Lead Time Improvement Significant documentation, processes and time reduction *Except Sanity, Health, Environment and National Security
5 Duties and Taxes Deferral Cash Flow Improvement at any of our available RFE solutions FTL/FCL Shipments Cargo Devanning & Storage Customs Clearance & Delivery No Import Duties & Taxes Payment DUTY AND TAXES PAYMENT Duties and Taxes are paid upon extraction and only for the extracted cargo
6 NEMX - San Luis Potosí Logistics Center The Only Global 4PL inside the RFE WHS Capacity:10,992 m 2 10 Docks 2 Ramps 24/7 CCTV Non-Resident VMI Pick & pack Quality sorting Cargo consolidation / deconsolidation Previo Labelling
7 Connections
8 RFE (FTZ Zone) Top Infrastructure Direct access to Customs and to the main Highway and Railway Netwworks in Mexcio
9 Foreign-based companies problems ' in Mexico associated with procurement and logistics Cash flow deterioration High inventory and procurement costs Inefficient transportation Issues for suppliers at overseas Higher customer demands Increase in product s inventory Need to shorten lead time Increasing competition Strong need to differentiate from competitors Issues for manufacturers in Mexico Increase in inventory costs Unstable demand High expedited shipments costs Warehouse capacity constraints Complex transportation and customs clearance procedures NEMX s SOLUTION (1) VMI (Non- Resident Vendor Managed Inventory)
10 What is VMI? NEMX manages inventory a foreign company at Mexican Territory based on a preagreement, avoiding out of stock situations and enabling JIT deliveries. Regular Logistics Flow Supplier s asset MEX Manufacturer s asset NEMX s SOLUTION by RFE VMI Efficient Logistics & Warehouses Supplier s asset MEX Manufacturer s asset
11 VMI Benefits Non resident inventory at Mexico No need to register foreign company at Mexico Market expansion at Mexico Costs reduction Eliminate out of stock and expedited shipments Efficient logistics supply JIT Deliveries Same day deliveries Customer s satisfaction increase
12 VMI by NEMX s RFE License NEMX holds RFE License at San Luis Potosí NEMX s SOLUTION = VMI Non-Resident Inventory by RFE RFE license enables Nippon Express to introduce raw materials to Mexico into our bonded warehouse (With full liabilities), while a foreign company will remain as cargo s owner, allowing storage, exhibition and distribution to Mexican companies. This is not to be confused with a Trading Company. Nippon Express does not take part in the commercial transaction and has no cargo ownership at any moment. Up to 60 months temporality NEMX s RFE Credentials License since January 2014 VAT Certification A
13 RFE General Process DOCUMENTARY FLOW CARGO IS INTRODUCED TO RFE BY AVISO M3, WHICH DOES NOT REQUIRE CARGO SPECIFIC DETAILS FOR HTS DETERMINATION. CARGO CONTAINER/TRAILER IS NOT OPENED AS BROKER S INSPECTION ( PREVIO ) IS NOT NECESSARY CARGO CAN BE EXTRACTED AT ANY MOMENT FROM RFE WHS. FINAL CNEE CAN CHOOSE ITS OWN BROKER. IF BROKER DECIDES TO MAKE PREVIO, IT IS DONE INSIDE NEMX, UNDER A CONTROLLED ENVIRONMENT OVERSEAS COMPANY AVISO M3 (PER EVENT) PEDIMENTO /ENTRY ACCORDING TO SPECIFIC OPERATION (A1, V1, ETC...) FINAL CONSIGNEE LOGISTICS FLOW IMPORT FROM PORT / BORDER PASSING THROUGH PHYSICAL CUSTOMS, WITHOUT BROKER ( PREVIO ) OR CUSTOMS INSPECTION NEMX STORES CARGO ; WITHOUT BEING CARGO S OWNER CARGO DELIVERY FROM NEMX TO FINAL CONSIGNEE. FINAL CNEE CAN CHOOSE FROM DIFFERENT PEDIMENTO CODES TO FULFILL THEIR NEEDS
14 RFE VMI Logistics/Commercial Flows Via trading company Direct billing ASIA EUROPE Customs Clearance Exporter: Overseas trading company NEMEX Introduces cargo to RFE No import taxes payment Import Customs Clearance NEMEX extracts cargo from RFE Importer: Final Consignee * *Becomes liable for duty and taxes
15 JIT Deliveries Flow V1 Releases from NEMX to final CNEE (Using IMMEX) can be done through virtual exports. This allows consolidating one month deliveries at one single export entry ( Pedimento ), reducing clearance and administrative costs. No customs gate, no inspection FINAL CONSIGNEE Releases are not restricted to customs working hours** PEDIMENTO V1 / V1 ENTRY (PER MONTH )* In the example, 3 deliveries at one month can be declared in a single entry Allowance to declare deliveries/releases (Exports) on monthly basis* a **Deliveries restricted to NEMX s working hours *By CNEE
16 JIT Deliveries Flow A1/Others Releases from NEMX to final CNEE (When not using IMMEX) can be done as definitive imports. This allows cargo delivery to almost any company in Mexico. Taxes are paid at the extraction date by the final CNEE. Non congested Customs Office FINAL CONSIGNEE PEDIMENTO A1 / A1 ENTRY Taxes are paid at the extraction date Same day deliveries due to RFE s strategical location Duties and taxes deferral
17 Showroom Machinery & Tools Showroom without paying Import Duty/Taxes No need to register at Mexico Avoid expedited shipments JIT Deliveries Expand your Mexican market & increase customer satisfaction Import Duties & Taxes are paid only once final CNEE extracts cargo from RFE
18 Service Parts Sevice parts for both machinery repairment and the automotive industry No need to register at Mexico Avoid expedited shipments Service parts immediate availability Service parts stock at Mexico without paying Duties & Taxes Import Duties & Taxes are paid only once final CNEE extracts cargo from RFE
19 Warehouse Management System Own WMS with Web Access Stocks Stock data Historical data Serial number data Receiving Arrivals Inquiries Shipping Shipping status Historical data Other alerts Reports download
20 Import Logistics Problems at México Complicated Procedures Port/Border Congestion Damages due to Broker s/custom s Inspection High Costs for maneuvers, storages, etc Customs clearance long lead time Incorrect Re-Packaging at port after Broker s / Custom s inspection NEMX s SOLUTION (2) Forwarding Making Use Of RFE
21 RFE Forwarding General Scheme DIRECT ENTRANCE TO NEMX RFE WHS BY M3 ENTRY RFE No import taxes payment at Port/Border No need to comply Non-Tariff restrictions* No Previo at Border/Port No HTS Classification at Port/Border *Except Sanity, Health, Environment and National Security
22 Differences between M3 and Regular Entry M3 Aviso Regular Entry Generic HTS Code No cargo details No NOM s Compliance *NEMX only needs commercial invoice, no further cargo details HTS Code per Item Cargo details (Description, quantity ) NOM s and others Compliance Green/Red light process Duty and Taxes Payment/Caculations Importer details
23 What is Previo? Cargo inspection done by Customs Broker at Border/Port/Airport. This is not mandatory by Law, but is a common practice by which both Broker and Importer confirm: No Discrepencies,HS Code, Serial and Model numbers, NOM compliance, among others. Time Consuming Booking needed Damage Risks Handling/Weather Costly Extra Cost
24 Exclusive services using RFE The usage of Aviso M3 with no previo, no HTS determination and no customs inspection allows direct cargo entrance to RFE zone, enabling exclusive forwarding services that reduce lead time, costs and risks along the Supply Chain. XB3300 Borderless Truck (FTL/LTL) Non-stop-at-border service from USA to Bajio XB3300 Borderless Rail Non-stop-at-border service from USA to Bajio Bajio Direct Non-stop-at-port LCL service from JPN to Bajio Destocking Export services that reduce exporter s inventory
25 XB3300 Borderless Truck (LTL) CONSOLIDATION AT LAREDO CONSOLIDATION POINTS NEAR SUPPLIERS Less Than Container Load Services Logistics Flow Aviso M3 Inbond Transportation Supplier(s) Nippon Express USA NEMX No cargo inspection San Luis Potosi Import Entry A1/V1 Customs End user(s)
26 XB3300 Borderless Truck (FTL) FTL SERVICE WITH NO CLEARANCE AT LAREDO Full Truck Load Service Logistics Flow Aviso M3 Inbond Transportation Supplier(s) Nippon Express USA NEMX No cargo inspection San Luis Potosi Import Entry A1/V1 Customs End user(s)
27 XB3300 Borderless Rail CONSOLIDATION AT OWN WHS IN MARION, OH TERMINAL Over-Weight allowance Logistics Flow Aviso M3 Inbond Transportation Rail Service Import Entry A1/V1 Supplier(s) Nippon Express USA NEMX No cargo inspection San Luis Potosi Customs End user(s)
28 Bajio Direct DIRECT LCL SERVICE FROM JAPAN TO SLC Yokohama Less Than Container Load Service Manzanillo Logistics Flow Aviso M3 Inbond Transportation Import Entry A1/V1 Supplier(s) Nippon Express Yokohama Manzanillo No cargo inspection Unstuffing at NEMX San Luis Potosi Customs End user(s)
29 Destocking EXPORT VIA RFE; ENABLING DESTOCKING Destocking Cargo consolidation Create scale economies Logistics Flow DESTOCK Supplier(s) Nippon Express San Luis Potosi Loading Customs End user(s) Once cargo is introduced to RFE, it is no longer supplier s stock Cargo from different incoming shipments can be consolidated.
30 Business Continuity Plan DELIVERY TO USA VIA MEXICAN PORTS Logistics Flow Inbond Transportation Supplier(s) Manzanillo / Lázaro Cárdenas No cargo inspection Transloading to 53 Feet Trailer / Container Nuevo Laredo Customs End user
31 Our Global Network Americas Employees 2,691 Locations Locations Around the Globe More than 20,000 Employees EMEA Employees 3,672 Locations 87 Nippon Express Partner / Agent 259 Cities 42 Countries *Not including Japan
32 Our Advantages SIMPLE One-Stop Solution Our global and domestic networks enable onestop solutions, providing door to door services and complete Nippon Express handling during the complete process. KNOW-HOW Forwarding & Warehouse Experience Our more than 50 years Global Experience & 25 years in Mexico, ensure top-class service at each step of the supply chain, and at all times. CONVENIENT RFE Simplified Process RFE Scheme allows document and processes simplification, avoiding delay risks along the import process.
33 Global Logistics Provider
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