2011

1. PRESENTATION 2011

2. Our Proposal of Value We have designed an “Operations Model” that will implement, maintain, improve, and develop the: Best Practices In Logistics as well as inCustoms

3. What are the Best Practices? They are the most modern, simple, and secure forms of working that: Instead of generating costs, they add value to the supply chain management. Produce optimal transit time of merchandise on route. Ensures a secure and legal customs process that avoids delays, fines, inaccuracies, PAMAS, and embargos, in the Mexican customs process as well as U.S. Customs. The operational, administrative, and fiscal information of entry is trustworthy and based on the development of IT. The handling of documents is optimized and digitalized.

4. Old School vsBest Practices There is no clear process in the purchase order. Many areas intervene or only one area holds all the information The supplier, forwarder, carrier, and customs broker do not work in unison and are separate from each other. First, the merchandise is handled, then, the entry is prepared. The importer buys first and, until later, learns about regulations and requirements pertaining to his/her goods. The INCOTERM is not viewed with importance. Frequent unpleasant surprises with suppliers, forwarders, and customs brokers. Documents are not filed and archived properly. Repeat of work to obtain the same information. Suppliers are measured by their mistakes. All services are contracted seperately. Suppliers are involved since the moment the purchase order is initiated. The Operations Model is defined and the appropriate actors are involved. The Customs Broker assesses and classifies the goods before the purchase order is initiated. Anticipation of goods is a discipline. Everything is prepared so that the entry is done successfully. INCOTERM, is secure and all values are accurate. Handling made on a NO SURPISES basis. Files are digitalized. Documents are always on time. Information is electronic and TI interfaces are well developed. Metrics and rules of business are implemented. Door-to-Door logistics.

5. MODEL FOR THE WORST PRACTICES IN LOGISTICS AND CUSTOMS

6. Method to Develop the: Model for Best Practices Identifying mutual needs. Diagnostic of client’s actual working model. Definition of operational, administrative and financial goals. Application of the Best Practices Catalogue, to develop a “tailored fit” service. Defining the Rules of Business necessary, their indicators to measure performance (metrics), and their role in information technology (IT). Creating a supply chain management force by aligning the supplier, client, forwarder, carrier, and broker. Evaluation and suggestions by the client. Implement evaluations to provide excellent service.

7. Quote request Supplier selection Purchase order is opened and early instructions of clearance are sent Reciept of document, ETD & Track/Fellow up Transfer of funds (Acct in Order) A Anticipated Electronic notice of shipment Merchandise Received and inventoried Ciose PO Costs are added Transparent accounts Accounts payeble Customs fiscal Document Integration of data B Merchandise sale quote Confirm Purchase order Invoiice Ship merchandise Deliver documents Reciept of payable B Foreign transport Delivery Domestic transport Delivery Shipment and route quote Logistic proposal Order initiated Track / follow up on shipment (ETD) A Track / follow up On documents Receipt of documents Track of ETA Track / follow up on time of departure Track / follow up ETA Close order Electronic bill of Services and proof Digital file / Integration of data Classification Advalorem Req’s Catalog parts Verify part number in catalog Clearance is prepared, funds acct. Include additional customs documents Receipt Reexpedite, Export declaration Customs Clearance of import And export at port of departure Simultaneous billing MODEL FOR THE BEST PRACTICES IN LOGISTICS AND CUSTOMS EN ADUANA Purchase analysis Client Supplier Transport Logistcs Mexican custom broker

8. Competitive Advantage through our“Best Practices Catalogue”

9. Who is Carmi Logistics? We started as a Customs Brokerage in 1983, becoming the first to file an entry in the history of Mexican Customs in Queretaro. In 1990, we initiated a Carrier Agency and developed door-to-door logistics services with our IATA registration. We can count with 7 Mexican Patentes as back-ups. We have obtained a license as “broker, arranging for transportation of freight” in USA. We have obtained a license as “freight forwarder of property” in USA In 2009 Carmi opened its US customs Brokerage service through Teresa Carmona CHB and through a partnership with Teresa Carmona and Hector Carmona we formed Carmi USA which in 2011 will obtained its US National Permit.

10. Who is Carmi Logistics? Headquartered in Laredo, Texas, we operate as an American Customs Brokerage firm with a National Permit. Offices directly involved to provide customs clearance service within the USA: Laredo TX Electronic clearance is available in all 50 states Offices directly involved to provide customs services in Mexico: Nuevo Laredo, Tamps. Y Colombia Nuevo Leon. Airport Mexico City. Veracruz, Ver. Altamira, Tamps. Manzanillo, Col. Queretaro, Qro.

11. Our Companies Carmi Logistics CSC Forwarders Carmi Trade Carmi USA Camh Star Forwarders LLC Carmi Logistics (USA)

12. Benefits and Services Integration of all logistics and customs brokerage services. One account and only one business to deal with. Legal counsel. If necessary, modes of legal defense are formed. Ongoing expertise on tariffs and classification of merchandise to take advantage of special programs. Management and distribution of inventory. Contracting insurance. Integration of all types of data to form accurate reports. Web services to provide tracking, visibility, and counsel. All the benefits listed in the Best Practices Catalogue of Carmi Logistics.

13. Bases for the design and development for the model of Best Practices

14. Some of our Customers

15. CARMI FACILITIES