1. USA Panaz USA Inc Nadeem Memon

2. Who am I?
Nadeem Memon Finance & IT Manager, Panaz Ltd 21 Years Service Assisting USA for 12 Years

3. Who are we?
Panaz is one of Europe's leading suppliers of high quality decorative fabrics and wallcoverings for the Hospitality, Healthcare and Corporate sectors. Trading for over 30 years Distribute to over 50 countries worldwide

4. North Carolina (3 Years)
Panaz USA
Trading 17 Years
California (14 Years)
North Carolina (3 Years)

5. How it all began: Background
By Accident
CEO met somebody at a US trade show
Setup ownership with a lawyer
Panaz USA subsidiary was Incorporated

6. Why Setup in America America is home to major Global Corporations
Big hotel chains – Hilton, IHG, Marriott
Disney/Universal
Cruise Liners – Carnival, Holland America, Princess
Designers – Design Houses
Procurement agencies – Getty's, Parker
Las Vegas – Casinos & Hotels
Gives us connections worldwide

7. Why Setup a Subsidiary Physical Presence
Status – Worldwide distribution
Local interaction, American personnel
Litigation
Lower cost
Import Duty

8. Why California? Initial partner lived in Laguna Beach
At the time it seemed the right choice
Focus was to build the Panaz brand
Run locally

9. Challenges in California?
8 hour time difference
Travel Time/Control/Liaison
Difficult to manage remotely
Expensive to do business
Remote from Customers & Suppliers

10. Relocation? Relocation Advice UKTI Durham Raleigh Workforce
Airport Connectivity
Major HUB
Proximity

11. Growing States in the USA
Utah
North Carolina
Nebraska
Texas
Colorado
Source: Forbes

12. Relocation, Key Factors?
Control
Response Time
Customer Proximity
Expertise
Manufacturing
Supplier Proximity
Travel

13. Sales Structure We have 2 employed sales Managers West Coast
East Coast
Both manage a pool of independent commissioned sales agents in various states
Sales agents have multiple non conflicting product lines i.e. Carpets, lighting, furniture

14. Sales European requirements are greater than those of the USA. USA
Price, Price & Price
Sales are Project driven
Competition is fierce
Undercutting/Copyright
Sourcing locally & internationally

15. UK PORT US Domestic Distribution Combining Freight Efficient
Cost effective - competitive
One UK based broker

16. Distribution Tariff codes - Different to European
US Customs - Invoice Descriptions
– Clear and understandable

17. Practical Problems
Different mentality
Language barrier – Terminology
Dates DD/MM/YY vs MM/DD/YY
Measurements – Yards & Inches
Currency – Only deal with Dollar$

18. Staff Skill set Local Management Pay: Salary plus benefits Bonuses
401k plans (Pension)
Healthcare: Costly! – Trinet possible solution
Overtime
Package is key to retain staff!

19. Nexus Also known as sufficient physical presence “Official Definition”
The U.S. Constitution requires an out-of-state vendor to have a substantial physical presence in the taxing state for the state to require that the vendor collect sales and use tax.
But it does not define what constitutes substantial physical presence and this varies by state.

20. Nexus Incorporation: California Trading: North Carolina
Manufacturing: South Carolina
Sampling Inventory: Michigan
Complicated - Seek professional advice
!MAKE SURE ITS IN WRITING! COVER YOURSELF!

21. Nexus: Tax When selling goods to resellers
You must ensure you get a reseller certificate to avoid charging Sales Tax.
Otherwise you have to charge them sales tax
Sales tax is different by each state
Filing Sales Tax returns for each state (Monthly, Quarterly and Annually)

22. Summary It hasn’t been all rosy Challenging at times
Difficult creating the Panaz brand in the early stages
Competitive Market
Since relocation
Right structure in place
Biggest single export market, targeted to surpass our EU sales
It is now making worthwhile profits

23. Good Luck Thank You Any Questions?