Samuel Shapiros EU Transportation/Customs Clearance Program For Fulfillment by Amazon Sellers FAQ

Shapiro Services
When should I use Shapiros services to move my product? If you are shipping less than a half pallet of cargo (loose cartons), it is likely in your best financial interest to ship your product with a courier service. If this is the case, we recommend that you contact a company such FedEx, UPS, DHL and/or TNT directly for a freight quotation (loose carton shipments). What are my responsibilities as a U.S. exporter? U.S Exporters have direct responsibilities under the U.S. Government Regulations for export transactions under the Foreign Trade Regulations and the Export Administration Regulations. U.S. exporters may have additional export control responsibilities depending on the commodity under other U.S. Government Agencies. For more information please visit these websites: http://www.census.gov/foreign-trade/regulations/index.html http://www.access.gpo.gov/bis/ear/ear_data.html http://www.bis.doc.gov/about/reslinks.htm http://www.bis.doc.gov/ Note: When shipping from other origins, local regulatory requirements will apply.

I understand that as a shipper and importer of record I am responsible for the knowledge of Intellectual Property Rights as they may apply to my commodity. Where can I get more information? Please refer to the following websites for more information on Intellectual Property Rights: http://www.cbp.gov/xp/cgov/trade/priority_trade/ipr/ http://www.wto.org/english/tratop_e/trips_e/intel1_e.htm

Shipping and Pricing Options

I understand that Amazon generally requires cargo delivered to their European Fulfillment Centers is required to be palletized. Under which circumstances may a seller make small package/courier (FedEx, UPS, DHL, TNT), non-palletized shipments to Amazon EU fulfillment centers? We understand that only under the following scenarios will Amazon accept loose cartons at their EU Fulfillment Centers: a) The maximum parcel (piece/carton) weight is 15 kgs., any parcel weight over 15 kgs., must be palletized and marked heavy weight. b) Any shipment weighing under 30 kgs., and taking up less than a half pallet in volume can be shipped as a parcel shipment (any shipment over a half pallet in volume needs to be palletized). Note: Please reference Amazon Seller Central for guidelines on small package shipments. Understanding that the above is the only exception, what are specific pallet and labeling requirements? Please refer to the Amazon provided document titled FBA UK Pallets and Pallet Labeling Requirements document for specific requirements. It is recommended that you confirm current pallet specifications via Amazon seller central.

What else do I need to know about pallets? Cargo exported out of the US must be on certified ISPM-15 (International Standard for Phytosanitary Measures) pallets. The correct pallets will be stamped with the IPPC (International Plant Protection Convention) mark.

What information does Shapiro require from a seller to provide a transportation quote? Preferred shipping method (air or ocean) Commodity Will the shipper palletize the cargo per Amazon requirements? Number of cartons Dimensions of each carton (if palletized the dimensions of the pallet) Weight per carton or total weight (if palletized, weight per pallet or total weight of all pallets) Origin postal code Amazon Fulfillment Center.

Booking with Shapiro

If a seller accepts a quote from Shapiro and wishes to book their shipment how do they proceed? Please advise your Shapiro representative that you wish to proceed with the shipment and provide them with the required shipping documents. What documents will the seller need to provide to Shapiro when booking the cargo?

Shapiro will require the following completed documents: Set-Up Documents: Power of Attorney (if not already supplied) Terms & Conditions of Service initialed Letter of Authorization (for non-US based firms only) EORI Application (if applicable) Credit Application (if not already supplied)

Booking Documents: Commercial Invoice V.A.T registration (if applicable) EORI Registration or application (if applicable) EEI Form (U.S. Exporters only) Proof of Cargo Insurance

V.A.T Registration and Payment of V.A.T in the UK and EU

For shipments to the UK, there is a threshold of GBP 73,000 (not for excise goods like wines). If the V.A.T taxable turnover for the previous 12 months is less than GBP 73,000 the seller does not need to become V.A.T registered. If at any point in a 12 month period a company suspects they will exceed GBP 73,000 in sales they must immediately become V.A.T registered. An EORI number must also be obtained from the HM Revenue Authority (by submitting the appropriate EORI application) prior to importation of their first non-V.A.T registered shipment. Please note that it is the sellers responsibility to monitor its Sales. For shipments to France and Germany, the seller of the goods must be VAT registered.

What is the current V.A.T. rate in the UK, France and Germany?
*UK: 20% *France: 19.6% *Germany: 19%

*Note: V.A.T. percentages may vary by commodity. How does a seller become V.A.T. registered? Cosmopolite Group, in partnership with Shapiro, can provide V.A.T. registration services. Detailed information about registration and the associated fees can be found on our website. Note link below: http://www.shapiro.com/html/FBAVATRegistration.html

How long does it typically take to become V.A.T. registered? It can take as long as 6-8 weeks to become V.A.T. registered in all EU Member States. 4

When does the seller need to pay V.A.T? V.A.T. must be paid at time of importation of their goods. When does the VAT registered seller recover V.A.T? The seller will have the opportunity to reclaim previously paid V.A.T. when they sell the goods (the difference between import V.A.T and the collected Sales V.A.T needs to be reconciled in the monthly/quarterly report).

If the seller is V.A.T. registered how do they ensure V.A.T. is charged to the end consumer? We understand that Amazon will not calculate V.A.T at time of sale on the sellers behalf. It is imperative for all V.A.T registered parties to ensure V.A.T has been added to the sales price of their product when declaring the sales price to Amazon. For more information on V.A.T policies and procedures, please request that your Shapiro representative put you in touch with Cosmopolite Group. Cosmopolite Group is best suited to address complex V.A.T questions and scenarios.
NWP October/2011