1. October 14, 2010 City of Los Angeles, Port of Los Angeles, Los Angeles World Airports PROCON & ASIAN GLOBAL SOURCING CONFERENCE Southern California Trade Gateway

2. Panel II: Global Trade, Operations & Legal  Logistics challenges & solutions in trade  Mitigating risk in global business  Legal and IP issues in the US & abroad Moderator: Norman Arikawa, Port of Los Angeles  Panelists: Jim MacLellan, Director, Trade Services, Port of Los Angeles Lowell Anderson, Attorney, Stetina Brunda Garred & Brucker Roger Clarke, Chair, L.A. Customs Brokers & Freight Forwarders Association Rosia Senh, International Sales, UPS

3. Exports of goods from the L.A. Customs District surpassed $86 Billion in 2009 The Time is Right to Export !

4. Why Export? The U.S. Dollar has been steadily weakening for the past few years Asian demand for basic U.S. products such as waste paper, metal scrap & plastic resins has been strong for years However, manufactured exports have been increasing strongly in the last two years

5. Why Export? Demand for California agriculture products such as cotton, citrus products, almonds, dairy products & wine has been strong High value exports such as computer chips, communications equipment, medical / dental equipment, aircraft & machinery parts has increased

6. Computers, chips & elect. circuits Aircraft & parts Cotton Vehicles & parts Machinery parts Medical & Dental equipment Cellular & communication equip. parts Polymers TOP EXPORT COMMODITIES L.A. Customs District (2009)

7. Top 10 L.A. Trading Partners 1.China ($115 billion) 2.Japan ($32 billion) 3.Korea ($15 billion) 4.Taiwan ($11 billion) 5. Thailand ($8 billion) 6. Australia ($7 billion) 7. Malaysia ($7 billion) 8. Singapore ($6 billion) 9. Vietnam ($5 billion) 10. Hong Kong ($6.9 billion) Cargo Value (2006)

8. Export Document Flow A.Commercial Commercial Invoice B.Financial Letter of Credit C.Shipping Bill of Lading (or Air Way Bill)

10. Terms of Sale “ How Do I Minimize Risk ? “ What are INCOTERMS; can they reduce risk ? How do they relate to Terms of Sale ? Control & define the point where ownership of the cargo transfers to the buyer ! Trade Insurance Certificate of Inspection

12. Ocean Carriers Original Bill Of Lading Intermodal Bill of Lading Door – to – Door Lading Export Responsibilities