IMMEX Service (ENG) 2 · The IMMEX program is an instrument which allows the temporary import of goods ... to introduce raw materials to Mexico as importer of record, while a foreign

IMMEX SERVICENon-Resident VMI Solution by NEMX

© 2016 Nippon Express de Mexico, S.A. de C.V. All rights reserved.

32• Vehicles10• Cities321• Employees

Two new HUBs in 2014: San Luis Potosí & SalamancaWHS Space growth: From 20,946 m2 to 73,973 m2 in 2 years

2

OFFICE WHS m2

MEX 9,971.00

GDL 1,545.00

MTY 3,810.00

AGS 8,800.00

QRO 5,640.00

SILAO 22,865.00

SALAMANCA 10,350.00

SLC 10,992.00

73,973.00 m2

© 2016 Nippon Express de Mexico, S.A. de C.V. All rights reserved. 3

ャッシ

Foreign-based companies problems ' in Mexico associated with procurement and logistics

• Cash flow deterioration • High inventory and procurement costs

• Inefficient transportation

Issues for manufacturers in Mexico

• 　Increase in inventory costs • 　Unstable demand • 　High expedited shipments costs • 　Warehouse capacity constraints • Complex transportation and customs

clearance procedures

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

NEMX’s SOLUTION

VMI (Vendor Managed Inventory)


What is Non Resident VMI?

NEMX manages inventory for a foreign company at Mexican Territory based on a pre-agreement, avoiding out of stock situations and enabling JIT deliveries.

4

Regular Logistics Flow

NEMX’s SOLUTION by IMMEX VMI

Supplier’s asset MEX Manufacturer’s asset

Supplier’s asset MEX Manufacturer’s asset

Efficient Logistics & Warehouses


Non resident inventory at Mexico • No need to register foreign company at

Mexico • Market expansion at MexicoCosts reduction • Eliminate out of stock and expedited

shipments • Efficient logistics supplyJIT Deliveries • Same day deliveries • Customer’s satisfaction increase

5

VMI Benefits


What is IMMEX?

The IMMEX program is an instrument which allows the temporary import of goods to be used in the industrial process or service, designated to the elaboration, transformation or repairing of temporary imported foreign merchandise for its exportation or the provision of exportation services, without covering the payment of the general tax on importation, value added tax, and in some cases the compensatory quotas.

IMMEX license (Services modality), enables Nippon Express (Through its owned company NEX Global Logistics) to introduce raw materials to Mexico as importer of record, while a foreign company will remain as cargo’s owner, allowing quality sorting, packing and distribution to other IMMEX licensed companies.

This is not to be confused with a Trading Company. Nippon Express / Nex Global does not take part in the commercial transaction and has no cargo ownership at any moment.

6

NEMX’s SOLUTION = Non resident VMI by IMMEX ServiceNEMX holds IMMEX License as Services Modality (I)


IMMEX Service Process

7

FINAL CONSIGNEE

“PEDIMENTO IN” / “IN” ENTRY

(PER EVENT)

“PEDIMENTOS V1” / “V1” ENTRIES

(PER MONTH)*

OVERSEAS COMPANY

*Per final CNEE

DOCUMENTARY FLOW

LOGISTICS FLOW

NEMX ISSUES INVOICE FOR IMPORT CLEARANCE PURPOSES BASED ON THE INFORMATION OF THE ORIGINAL INVOICE

FOREIGN INVOICE FOR CUSTOMS

CLEARANCE PURPOSES

FOREIGN COMPANY ISSUES SELLING INVOICE TO FINAL CONSIGNEE; BASED ON THIS NE ISSUES INVOICE FOR EXPORT CUSTOMS ENTRY PURPOSES. FINAL CONSIGNEE RECEIVES CARGO AT OWN INVENTORY BY COMMERCIAL INVOICE

IMPORT FROM PORT / BORDER PASSING THROUGH PHYSICAL CUSTOMS, PAYING ONLY

FIXED DUTY (NOT IMPORT TAXES)

NEMX STORES CARGO ; WITHOUT

BEING CARGO’S OWNER

CARGO DELIVERY FROM NEMX TO FINAL CONSIGNEE WITHOUT GOING THROUGH

PHYSICAL CUSTOMS, GUARANTEEING SAME DAY DELIVERY


IMMEX Service Logistics/Commercial Flows

8

ASIA EUROPE

Customs Clearance Exporter: Overseas trading company Importer: Nex Global – No import taxes payment *

“Virtual “ Customs Clearance Exporter: Nex Global Importer: Final Consignee **

Via trading company

*Only fixed duty **Becomes liable for duty and taxes

Direct sale/billing


JIT Deliveries Flow

9

FINAL CONSIGNEE

“PEDIMENTO V1” / “V1” ENTRY (PER MONTH )*

In the example, 3 deliveries at one month can be declared in a single entry

Releases from NEMX to final CNEE are 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

Releases are not restricted to customs working hours**

*By CNEE **Deliveries restricted to NEMX’s working hours

Allowance to declare deliveries/releases (Exports) on a monthly basis*


NEMX’s IMMEX Credentials

IMMEX Service License

- IMMEX Since November 2006 - VAT Certification “A” - AGARO* Permit : Allowing the avoidance of “Previo” (Broker’s Inspection) - “B” Certified Company, among other benefits:

- 36 months stock allowance (Compared to 18 as non-certified IMMEX) - “Sectores específicos” - Access to restricted HS Codes

10

*When using NE shipping services at origin

Nex Global Logistics de México (NE owned) holds this license as “IMMEX Service Company” , with 6 stock points in Mexico:

Tijuana, Aguascalientes, Monterrey, Querétaro, Silao and Guadalajara

IMMEX Service can be offered at other locations upon request and project analysis.


Warehouse Management System

11

Stocks • Stock data • Historical data • Serial number data

Receiving • Arrivals • Inquiries

Shipping • Shipping status • Historical data

Other • Email alerts • Reports download

Own WMS with Web Access


Our Global Network

12

EMEA Employees 3,672

Locations 87

Americas Employees 2,691

Locations 130

● Partner / Agent● Nippon Express

42 Countries

613 Locations Around the Globe

*Not including Japan

More than 20,000 Employees

259 Cities

© 2016 Nippon Express de Mexico, S.A. de C.V. All rights reserved. 13

Our Advantages

One-Stop Solution

Forwarding & Warehouse Experience

Our 25 years’ forwarding experience in Mexico, and 9 years as IMMEX company ensure top-class service at each step of the supply chain, and at all times.

IMMEX Certifications

Our global and domestic networks enable one-stop solutions, providing door to door services and complete Nippon Express handling during the complete process.

Our multiple IMMEX certifications and permits allow us to offer the best lead time in the industry, also reducing damages and risks along the supply chain.

KNOW-HOW

SIMPLE

FAST


Global Logistics Provider

Documents

IMMEX Service (ENG) 2 · The IMMEX program is an instrument which allows the temporary import of goods ... to introduce raw materials to Mexico as importer of record, while a foreign