1. Drew Andersen JJ Cavanaugh Gary Patterson Matthew Petrovich

2.  Part of BMW’s 3 Series  3.0 Liter, Twin Power, Turbocharged 6-cylinder engine  300 Horsepower  Car & Drivers 10Best 19 years running Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

3. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary  Route  Transportation Carriers ◦ DTC Transport Logistics ◦ Wallenius Wilhelmsen Logistics ◦ National Transport, LLC  Total Cost - $48,329.00 or €36,827.00

4. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary 335 I leaves BMW Plant- Dingolfing, Germany Car is loaded on Inland Freight carrier (DTC Transport Logistics) Car is unloaded at port of export (Bremerhaven, Germany) Car is loaded on to the ocean carrier (Wallenius- Wilhelmsen Logistics Oberon) Car is unloaded at port of destination (Brunswick, Georgia, USA) Car must clear customs at the port before loading Car is loaded on domestic inland freight carrier after clearing customs (National Transport LLC) Car is delivered to Critz BMW. Savannah, Georgia Customer receives car at dealership.

5. Goods Contract Application Documents Letter of Credit Documents Letter of Credit Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

6. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

7.  Based in Germany  One of Top 10 auto manufacturers in the world  Core competencies ◦ Innovation ◦ High performance ◦ Engineering  Critz BMW ◦ Based in Savannah ◦ Serves Savannah, St. Simon’s, Statesboro, Brunswick, Hinesville, and Claxton areas. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

8.  Deutsche Transport Company ◦ Based in Bamberg, Germany ◦ Delivers to 35 European Countries  72 Routes ◦ Handle Intermodal, Warehousing, Customs Clearance and Logistics Consultation Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

9. Dingolfing, Germany to Bremerhaven, Germany Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary 7 ½ Hours or 825 km Once in Bremerhaven, shipment is inspected and loaded onto RO-RO carrier

10. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Bill of LadingCertificate of Inspection

11. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Certificate of Origin Commercial Invoice

12. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Packing List

13.  Wallenius Wilhelmsen Logistics ◦ Intermodal transportation company ◦ Specializes in the shipment of automobiles, agricultural and construction equipment. ◦ Ship 2-3 million vehicles annually ◦ Also handles all vehicle processing, terminal procedures, and distribution to retailers. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

14. Bremerhaven, Germany To Brunswick, Georgia Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Lead time for shipping is 19 days Once arriving in Brunswick, shipment must clear customs inspection

15.  National Transport LLC ◦ Specializes in automotive transportation ◦ Offers open/enclosed trailers for vehicle transportation Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

16. Brunswick, Georgia to Savannah, Georgia Lead time is 1 ½ Hours or 78 miles Once shipment arrives in Savannah, issuing bank pays advising bank which pays BMW Group. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

17. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary CostPriceForm of Payment BMW 335i base cost €28,125.45L/C Insurance€562.50Cash Sales Tax (German) €4781.33Cash Duties (FAS)$984.38Cash Domestic Inland Transport (US) $345Cash Foreign Inland Transport (DEU) €247.60Cash Ocean Carriage€719.10Cash Total Vehicle Cost $48,329 or €36,827

18.  Forward Market Hedge was used.  Savings = $352 by choosing the spot rate and exercising the option on an option contract. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Vehicle Price (€)Exchange RateVehicle Price ($) €28,125.00Oct 16 (Spot) - $1.3976/€ $39,375.00 €28,125.00Jan 14 (Forward) - $1.4125/€ $39,727.00

19.  Used Harmonized Tariff Schedule  Germany is a general column 1 trade country  The vehicle falls under heading 8703.23.00 ◦ 2.5% of vehicle cost (FAS) is due for duty paid  Total Duties: (39,375 x.025)= $984.38 Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

20. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary

21. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Bill of LadingCertificate of Origin

22. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Certificate of InspectionImport Declaration

23. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary EPA Declaration Commercial Invoice

24. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Inward Cargo Manifest Packing List

25. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary Surety Bond Inward Cargo Declaration

26. BMW 335i leaves Dingolfing, Germany to Bremerhaven, Germany BMW travels on RORO from Bremerhaven to Brunswick, GA BMW goes through US Customs process Car is transported from Brunswick to Critz BMW in Savannah, GA Payment is transferred from issuing bank to advising bank. Overview Flow of Goods/ Documents Cost Analysis and Payment LiquidationSummary