PROCON Asian Global Sourcing Conference Rosia Senh October

PROCON Asian Global Sourcing Conference Rosia Senh October 14, 2010

Exports – Fact or Fiction? A. ) 30% of the world’s purchasing power is outside the borders of the U. S. FICTION – 70% B. ) 58% of all exporters only export to one country. FACT 2

Exports – Fact or Fiction? C. ) 97% of the U. S. firms selling internationally are small and medium-sized companies. FACT D. ) Exports accounted for nearly 25 percent of U. S. economic growth during the past decade, and they are expected to grow by nearly 10 percent per year for the next several years. FACT 3

Exports – Fact or Fiction? E. ) The United States exported $1, 056, 931, 975, 877 worth of goods to all other countries in 2009. FACT F. ) On March 11, 2010, President Barack Obama issued an executive order creating the National Export Initiative (NEI), which aims to double U. S. exports over the next five years in support of 2 million jobs in the U. S. FACT 4

Exports – Fact or Fiction? A. ) 30% of the world’s purchasing power is outside the borders of the U. S. 95. 5% of world’s population and 70% of world’s purchasing power is outside of US borders 5

Why companies only export to one market • Commonalities • Connections • Too timely/costly • Nervous • Unaware of available resources 6 6

Why businesses should export INCREASE SALES, REVENUE, PROFIT 2009 top export countries… Rank Country 2009 Exports % of Exports 1 CANADA 204. 7 19. 4% 2 MEXICO 129. 0 12. 2% 3 CHINA 69. 6 6. 6% 4 JAPAN 51. 2 4. 8% 5 UNITED KINGDON 45. 7 4. 3% 6 GERMANY 43. 3 4. 1% 7 NETHERLANDS 32. 3 3. 1% 8 KOREA, SOUTH 28. 6 2. 7% 9 FRANCE 26. 5 2. 5% 10 BRAZIL 26. 2 2. 5% 7

Asia Pacific: UPS’s Presence Time-Definite Express Services Operational Profile: Guaranteed express delivery by 9: 00 a. m. , noon and end of day available in major metro areas in these countries Guaranteed express delivery by end of day Japan S. Korea Embargoed China Taiwan Hong Kong India – Region headquarters in Singapore – 40 countries and territories served in Asia – Over 13, 300 employees in region – Delivery Fleet: More than 1, 000 vehicles – Weekly Flight Segments: Intra-Asia Pacific 259; International 133 – Airports Served: Intra-Asia Pacific 16; International 377 UPS Access Points: Philippines – Over 2, 250 access points CLARK Thailand Vietnam Australia Malaysia Clark Air Hubs UPS Facilities* UPS Supply Chain Solutions® Facilities* Singapore Indonesia *Principal locations displayed 8

Trade. Ability Services available on UPS. com Landed Cost – Estimate duties and taxes for international shipments Denied Party Screener – Identify restricted parties or embargoed countries Import Compliance – Verify country-specific trade import regulations, tariff laws, rulings, and etc. Export License Detector – Proactively identify U. S. government export licensing requirements Harmonizer – Quickly and accurately identify harmonized tariff codes Forms – Complete forms online or browse a library of PDF documents for importing and exporting Product List – Save product information for up to 1000 products for use with other Trade. Ability services Transaction History – Store and access detailed records of your Trade. Ability transactions for reporting, compliance and accounting purposes 9

Growth 10

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Who is responsible? ? ? 12

What are my Incoterms? ? ? 13

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Grow Business while Mitigating Risk! Cargo Insurance Protection for the “Full Value” in the event of Loss or Damage with the most comprehensive policy Credit Insurance Protecting your Account Receivables for slow pay, no pay or bankrupt Credit Intelligence Solutions Over 100 countries are serviced to determine credit worthiness 16

Parting Thoughts…. 1. How will you reach 70% of world’s purchasing power that is outside of the US 2. How will you be part of the 42% of US companies exporting to more than one country? s 3. Multi-Country Shippers 17

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