LOGISTICS PROFILE FROM COLOMBIA TO THE UNITED STATES OF

AMERICA The Federal Republic of the United States of America, located in North America, limits to the North with Canada, to the East with the Atlantic Ocean, to the South with Mexico and to the West with the Pacific Ocean. The total surface of its territory is 9.826.630 km². The United States have a well developed transportation structure, enough to support the needs of their economy. Such structure is made up of a 6.430.366 km. long roads network, out of which 75.238 km are part of the wide national highway system, which extends throughout the country connecting the 50 States. The country houses more than 226.605 km. of railroads, most of them privately owned; it also has oil ducts to transport oil byproducts. (Index Mundi 2011) The United States represent 42% of the global market for consumption goods; as a result and in order to be closer to their providers and clients many companies around the World decide to invest in that country. Currently, there are more than 14 Free Trade Agreements subscribed with associate countries. (US. Department of Agriculture) In 2013, 25.3 millions in tons were exported to the United States which accounts for about US$ 18.458 millions in FOB value. The greatest volume of cargo was transported by sea, representing 99,2% of the total between both countries. In terms of exported tons and FOB value (in USD) from Colombia to the United States, by means of transportation we found the following behavior during the past four years:

SEA

AIR

Source: DANE, MinCIT.

Tons

Tons

36

32 28

25

2010 2011 2012 2013

TONS (Millions)

14.090

18.298 17.89115.220

2010 2011 2012 2013

FOB value in US$ ( Millions)

222.094

295.685

186.899 198.205

2010 2011 2012 2013

TONS

2.8273.421

4.088

3.238

2010 2011 2012 2013

FOB value in US$ ( Millions)

According to the Logistics Performance Index (LPI) published by the World Bank in

2012, the United States is ranked 9th in the World in terms of logistic

performance, six lines above the rank of the previous report published in 2010.

Related to this ascent in the ranking, the index improved from 3.86 to 3.93 (being

1 the worst qualification and 5 the best) during that same assessed period.

Additional to the aforementioned, it is important to point out that the performance

from the United States regarding each one of the different components of the LPI

was as follows*:

Assessed Component Score Position Customs efficiency 3.67 13

Quality of the infrastructure 4.14 4

Competitiveness of the international cargo transportation 3.56 17

Competitiveness and quality of the logistics services 3.96 10

Capacity to Trace and track shipments 4.11 3

Timeliness of Shipments 4.21 6

*Source: The World Bank. 2012

ACCESS BY SEA

The United States have a ports infrastructure composed by more than 400 ports and sub-ports, out of which 50 manage 90% of the total cargo tons. Ports are strategically located in the Pacific and Atlantic Oceans.

Ports in Colombia

Ports in the United States

New

Orleans

Some of the ports of the United States are ranked as the biggest and those of greatest movement of cargo in the World. In the East coast the following ports standout due to the number of shipping companies that have direct and permanent service: Houston, New York, Baltimore, Savannah, Jacksonville, Port Everglades, Miami, New Orleans and Charleston. On the other hand, in the West coast the services offer from Colombia is mainly aimed at the ports of Los Angeles and Long Beach.

Maritime Services

West Coast From the Colombian Atlantic Coast, there exists two (2) shipping company that offers direct services both to Los Angeles, Long Beach and Oakland in the West Coast, with transit times which begin at 10 days; the offer is complemented with connecting routes from ports in Panama, and Jamaica , by five (5) other shipping companies, with transit times from 12 days. Likewise, from Buenaventura to the West Coast there is one (1) direct route service to Los Angeles, with a transit time of 11 days; the offer is complemented by five (5) other shipping companies with connections in Panama, Guatemala and Mexico and transit times from 13 days.

*Frequencies and transit times from Colombian ports

DESTINATION ORIGIN TRANSIT TIME (days)

DIRECT TRANSIT TIME (days)

CONNECTION FREQUENCY

LOS ANGELES

Barranquilla 11 12-19 Weekly

Buenaventura 11 14-20 Weekly

Cartagena 10 12-17 Weekly

OAKLAND

Barranquilla 15 12-20 Weekly

Buenaventura

14-25 Weekly

Cartagena 12 12-20 Weekly

Santa Marta

25 Weekly

LONG BEACH

Barranquilla 13 19 Weekly

Buenaventura

13 Weekly

Cartagena 12 19 Weekly

Maritime Services East Coast

Eleven (11) different shipping companies operate to the East Coast of the United States, from the Atlantic Coast, in direct routes with transit times from three (3) days, originating from Cartagena and bound to Port Everglades, or from six (6) days to Miami and Philadelphia; the offer is complemented with connecting routes from ports in Jamaica, Panamá and Dominican Republic, which have an in transit time from eight (8) days. Additionally, from Buenaventura to the East Coast, there exist connecting services from Panamá, Mexico, Dominican Republic, with in transit times from seven (7) days bound to Port Everglades (connecting in Cartagena).

*Frequency and in transit times from Colombian ports

DESTINATION ORIGIN IN TRANSIT TIME

(days) DIRECT

IN TRANSIT TIME

(days) CONNECTION FREQUENCY

BALTIMORE

Barranquilla

12 Weekly

Buenaventura 11 14-20 Weekly

Cartagena 8 12-15 Weekly

Santa Marta

10 Weekly

CHARLESTON

Barranquilla 11 9-14 Weekly

Buenaventura 9-14 7-14 Weekly

Cartagena 9 8-15 Weekly

Santa Marta

8-16 Weekly

PORT ELIZABETH

Barranquilla

14 Weekly

Buenaventura 12 17 Weekly

Cartagena 5 6 Weekly

FILADELFIA

Barranquilla 7 9 Weekly

Buenaventura

11-20 Weekly

Cartagena 6 15 Weekly

HOUSTON

Barranquilla 10 11-15 Weekly

Buenaventura

16-20 Weekly

Cartagena 7-10 10-13 Weekly

Santa Marta 10

Weekly

JACKSONVILLE

Barranquilla 7 7-9 Weekly

Buenaventura

17 Weekly

Cartagena 7 15 Weekly

MIAMI

Barranquilla 6 10-12 Weekly

Buenaventura

15 Weekly

Cartagena 6 10-12 Weekly

Santa Marta 6 7-10 Weekly

MOBILE

Barranquilla

13 Weekly

Buenaventura

15 Weekly

Cartagena 6 10-13 Weekly

NEW ORLEANS

Barranquilla 14 17 Weekly

Buenaventura

15-19 Weekly

Cartagena 8 12-19 Weekly

Santa Marta 13

Weekly

NEW YORK

Barranquilla

11-14 Weekly

Buenaventura 10 9-17 Weekly

Cartagena 6-7 9-15 Weekly

Santa Marta

10-14 Weekly

NORFOLK

Barranquilla

11-12 Weekly

Buenaventura

14-19 Weekly

Cartagena

12-16 Weekly

PORT EVERGLADES

Barranquilla 5-6 7-13 Weekly

Buenaventura 7 7-16 Weekly

Cartagena 3-6 7-16 Weekly

Santa Marta 5 11-12 Weekly

SAVANNAH

Barranquilla

12-15 Weekly

Buenaventura 14 16 Weekly

Cartagena 9 12-22 Weekly

Santa Marta 10

Weekly

Source: Maritime Lines – Information processed by Proexport Colombia * Information included here is referential in character, being directly supplied by delivering companies. It is subject to change without any prior notice due to factors derived from the activity itself or to their trade volumes.

Shipping companies and Freight Forwarders who offer services to the

United States

SHIPPING COMPANIES AND FREIGHT FORWARDERS

ACCESS BY AIR

The United States have 14,947 airports, several of which are the biggest and those with greatest movement in the World. The offer of direct services from Colombia is concentrated in the following airports: John F. Kennedy International (New York), Los Angeles International, George Bush International (Houston), Memphis International Airport, Hartsfield-Jackson Atlanta International Airport and Miami International Airport.

JFK Airport

Miami Airport

Los Angeles Airport

Airports in Colombia

Airports in the United States

Additional to the direct services, other airlines have the possibility to receive cargo in Colombia and ship it to the United States through connecting services from Panama City and Mexico City.

Air Services

The offer of air routes for exports from Colombian airports is managed through every day of the week flights, having direct routes, connecting hubs in international airports located in Panama, as well as local airports from which the cargo is

distributed to the different cities in the country.

*Airline connections from service providers to the United States

Airline Connections Frequency Type

Direct Every day Passengers

Direct Every day Cargo

Panama – Panama

Monday through Saturday

Cargo

Panama- Panama Every day Passengers

Direct Every day Cargo

Direct Every day Cargo

Direct

Mondays, Thursdays,

Saturdays and Sundays

Cargo

Mexico- Mexico City Every day Passengers

Direct Every day Passengers

Direct Every day Cargo

Direct Every day Passengers

Direct Every day Cargo

Panama - Panama

Tuesday through Saturday

Cargo

Source: Airlines delivering the services Processed by Proexport Colombia * Information included here is referential in character, being directly supplied by delivering companies. It is subject to change without any prior notice due to factors derived from the activity itself or to their trade

volumes.

OTHER IMPORTANT ASPECTS IN TERMS OF LOGISTICS.

Documents Needed for the Entry of Merchandise* Customs and Borders Protection (CBP), requires a “precise description and the weight of the cargo, or, for a sealed container, the description and weight of the cargo in the issuer’s declaration”. A precise narrative description is a description that is precise enough for the CPB to identify the shapes, physical features, and the likely packaging of the declared cargo, everything in order for the CBP to identify any anomaly in the cargo when a container is screened through imaging equipment. The description must also be precise enough as to identify those goods that might emit radiation. The specificity of the information depends on the nature of the merchandise. For example “electronic devices” is not a precise description, but “CD players” or “computer screens” are considered precise.

To clarify, in any case should there be a blank description of the cargo: the following descriptions are non acceptable: of any kind (FAK), said to contain (STC) with or without any other description, general merchandise, “26 pallets”, different retail merchandise, consolidated cargo or the lie vague descriptions. The following terms are suggested as a guide; showing general examples of accepted and non accepted descriptions. The phrases in parenthesis are included as examples.

Non Acceptable Acceptable

Apparel Wearing Apparel Ladies’ Apparel Men’s Apparel

Clothing Shoes Footwear Jewelry (may include watches)

Appliances Kitchen Appliances Industrial Appliances Heat Pump

Autoparts Parts

New Autoparts Used Autoparts

Caps Baseball Caps Blasting Caps Bottle Caps Hub Caps

Chemicals, hazardous Chemicals, non-hazardous

Actual Chemical name (not brand name) Or U.N. HAZMAT Code Identifier #

Electronic Goods Electronics

Computers Consumer Electronics, Telephones Electronic Toys (can include Gameboys, Game Cubes, Dancing Elmo Doll etc.) Personal/Household Electronics (i.e. PDA’s, VCR’s, TV’s)

Equipment Industrial Equipment, Oil Well Equipment Automotive Equipment, Poultry Equipment etc.

Flooring Wood Flooring, Plastic

Flooring, Carpet, Ceramic Tile, Marble Flooring

Foodstuffs Oranges Fish Packaged Rice, Packaged Grain, Bulk Grain

Iron Iron Pipes, Steel Pipes

Steel Iron Building Material, Steel Building Material

Leather Articles Saddles Leather Handbags Leather Jackets, Shoes

Machinery Metal Working Machinery Cigarette Making Machinery

Machines Sewing Machines Printing Machines

Pipes Plastic Pipes PVC Pipes Steel Pipes Copper Pipes

Plastic Goods Plastic Kitchenware, Plastic Houseware, Industrial Plastics Toys, New/Used Auto Parts

Polyurethane Polyurethane Threads Polyurethane Medical Gloves Personal Effects Household Goods

Rubber Articles Rubber Hoses Tires Toys Rubber Conveyor Belts

Rods Welding Rods Rebar Aluminum Rods Reactor Rods

Scrap Plastic Scrap Aluminum Scrap Iron Scrap

STC (Said to Contain) General Cargo FAK (Freight of All Kinds) “No Description”

Tiles Ceramic Tiles Marble Tiles

Commercial delivery:

Transportation document, being the bill of landing (B/L), the Air Way Bill (AWB) or the carrier’s certificate, (appointing a shipping agent for customs purposes) as proof of the right the carrier holds to conduct the entry or admission at destination.

Commercial invoice (in three copies), issued by the seller which must describe the unit Price and the total value and the description of the merchandise.

Cargo or Entry Manifest, customs form customs form 7533 or Immediate Delivery customs form 3461.

Packing List, if relevant and other required documents to determine if the merchandise may be cleared. (Note: effective 02-Jul-98, the limit of Informal Entry mounted from USD 1250 to USD 2000. Such change does not affect those entries which require a Formal Entry, regardless of price.)

Sample Delivery:

The requirements regarding commercial delivery must be met.

Sample with no commercial value delivery:

To ship samples which do not have a market value, it is important for the exporter

to know at first instance that every country has established requirements for the

entry of such samples.

In the United States, the entry of samples is primarily subject to the following

requirements:

The load should not be in usable conditions. It must be presented in small quantities (1 or 2 pieces per item) for those

commodities which do not require a visa nor are subject to quotas.

If they are foods, in many cases they are not accepted as samples and it would be the FDA (Institution responsible), who will determine if it may be considered as a simple or not.

For customs purposes, the invoice should state that it is a sample with no commercial value and reflect its value.

They are not subject to taxes of any kind if customs accepts the merchandise as a sample.

Unaccompanied Luggage:

Unless the sender arrives with the shipment, or if the intent is to pick it up him/herself at the arriving airport or at the customs of the port of entry, he/she should accompany the luggage to facilitate its nationalization. If this is not the case, it may cause the lyuggage to be held up at the destination nearest to the

destination of the passenger.

Regulations from the Federal Drugs Administration (FDA) From May 19th, 2004, every shipment of foods for human and animal consumption, whose final destination or connecting point is the United States, must hold a previous confirmation from the FDA. If such confirmation has not been granted in advance, the FDA and Customs and Border Protection (CBP) may impose monetary penalties. In order to avoid delays and penalties, the issuer must provide the necessary information with the corresponding previous notice and confirmation of the items. Affected Food Products:

All the foods defined by the FDA as “imported or offered to be imported to the United States"

Foods stored or distributed in the United States Gifts and commercial samples for quality control purposes Transshipments through the United States to another country Imported foods for export

Foods admitted through a Free Trade Zone in the United States Excluded Food Products:

Food consumed by a traveler Food immediately exported, without leaving the entry port Meat, poultry, eggs and products exclusively regulated by the Department

of Agriculture of the United States. Homemade products shipped as gifts for another person

Substances in contact with food (Packaging material, cans, bottles and pesticides, for example) which do not qualify under the definition of “foods” of the FDA.

*Source: TACT 2011

Transportation of Samples with no Commercial Value:

The merchandise which has the only purpose of demonstrating its features and

which lacks any commercial value in itself, which should not be aimed at being

sold in the country, is considered as a sample with no commercial value.

At the moment of shipping your samples, you must verify if they do not pay any

tariffs or taxes at the port of entry you intend to arrive. Remember that these

could represent additional costs to your client and affect delivery times.

Within the handling of merchandise by air, such as samples with no commercial value or urgent shipments, it is important to point out the ALLIANCES that PROEXORT Colombia has subscribed with different carriers, to reduce shipment costs for the companies working with the different programs offered by the entity.

Some Conditions that have an Impact over the Transportation and Distribution of Merchandise:* The Customs of the United States together with several companies from the private sector, with the aim of facilitating the entry of merchandise, created some certifications that allow conducting less customs inspections at destination for exporters, carriers and importers. Such certifications save time and shorten waiting times since there are no inspections and repackaging costs involved. *Source: TACT 2011

In Advance Cargo Manifest:

The delivery of the In Advance Cargo Manifest was established for sea and air transportation, as a result of the attacks of September 11th, 2001. Shipping companies and airlines should hold such document to present before Customs Service of the United States as follows: For sea transportation, 48 hours prior to loading the cargo, while for air transportation, the transmission should be done at the moment the aircraft takes off “wheels up”. For airports located north from Equator, such regulations are applied, for shipments whose final destination or which will be in transit in ports and/or airports of the United States.

International Ship and Port Facility Security Code ISPS:

As a result of the terrorist attacks perpetrated in the United States on September 11th, 2001, the need to increase security measures in general throughout the ports of the World was identified, targeted towards counteracting the actions of terrorist groups seeking prominence though world impact actions. For such a reason, the International Maritime Organization (IMO) adopted the ISPS Code (PBIP, Código Internacional para la protección de los buques y de las instalaciones portuarias, in Spanish). This process has been carried out since December 12th, 2002 by the conference of Governments that subscribed the International Agreement, for the safety of human life at sea and the necessary amendments to Chapters V and XI of the SOLAS agreement thus mandatorily enforcing it since July 1st, 2004.

BASC (Business Alliance for Secure Commerce)

This mechanism guarantees and strengthens the security standards, both for exporting and service provider companies. Here you will find information about what BASC is, general information on the certification, the BASC control chain, and what it is for, among others.

C-TPAT (Customs Trade Partnership Against Terrorism) This certificate was created as a result of the acts perpetrated on September 11th, 2001, in search for greater commitment by those participating in the supply chain, involving all the links (carriers, agents, exporters, importers, etc.). Here you will find what it is all about, the validation process, frequently asked questions, C-TPAT for importers, exporters, and carriers, among others.

Legislation Regarding Phytosanitary Issues

The International Convention for Phytosanitary Protection CIPF and the Food and

Agriculture Organization of the United Nations (FAO) have adopted the

international phytosanitary norms NIMF to guarantee a common and efficient

action to prevent the propagation and introduction of plagues through plants and

byproducts and to promote the appropriate counteracting measures.

ISF 10+2 Security Requirement

The CBP (Customs and Border Protection) of the United States, from January 2010, amended the Importer Security Filing (ISF 10+2) norm. Such norm, regarding the Security Declaration of the Importer and additional requirements for carriers, has the purpose of preventing the entry of weapons, contraband or

terrorist elements by sea to the territory of the United States.

The importer or his customs agent is responsible for transmitting data to the ISF

as follows:

24 hours before loading

- Registration number of the Importer - Ship-broker of the Cargo - Name and Address of the Seller (Owner) - Name and Address of the Buyer (Owner) - Person or entity responsible for loading - Name and Address of the Producer (Provider) or manufacturer - Country of Origin - Product - HS Code to 6 digits

Immediately or 24 hours prior to the arrival of the ship in the port of entry in the United States

- Location where the container is filled - Name and Address of the Agent or Packer

The Carrier must transmit its data to Customs Border Protection, including:

- Information of the stowage blueprint of the containers (Location of the containers)

- Status messages

Requirement to honor the International Norm on Phytosanitary Protection The United States applies the NIMF-15 norm since February 2004. Such measure reduces the risk of introduction and/or dispersion of quarantine plagues connected to wood packaging (including the wood of the pallets), gross manufactured from coniferous and non coniferous, used in international trade. For Colombia, the ICA is the entity responsible for authorizing the brand. Learn about the NIMF-15 norm in Spanish: DOCUMENTS FROM FAO Road Transportation: When exporting to the market of the United States the internal transportation by road and the maximum weight allowed for trucks must be considered. In order to comply, the containers that enter the country and the transporting trucks must fulfill the following: Maximum weight allowed per container*:

Container Type of load Type of chassis Pounds Kilos

20

Dry Slider Chassis 39,200 17,780

Dry Slider Chassis of 3 axis 44,000 19,960

Refrigerated Slider Chassis 34,900 15,830

40

Refrigerated Slider Chassis of 3 axis 39,700 18,010

Dry (H = 8ft 6in) “Gooseneck” Chassis 44,000 19,960

High Cube (H = 9ft 6in) “Gooseneck” Chassis 43,700 19,820

Refrigerated (H = 8ft 6in) “Gooseneck” Chassis 39,800 18,050

HC Refrigerated (H = 9ft 6in) “Gooseneck” Chassis 39,300 17,830

NOTE: Maximum gross weight allowed includes the product and its packaging,

pallets, straps and any other stowage material.

The maximum gross weight stated is a guide to promote safe transportation under the legislation in force regarding the maximum weigh load that may be embarked in containers to be transported through the roads of the United States. The actual weight admitted for each shipment may vary depending on the actual weight and the setup of the equipment used in transportation and/or other limits imposed by

the Federal or State Government or local authorities.

* Source OCEMA 2011

*** Cross-border Trade Indicators The costs and procedures connected to importing and exporting a standard shipment of goods are described in detail under this topic. Each official procedure is recorded beginning with the final agreement between the two parties and finishing with the delivery of the goods. Export Number of Documents to Export: 3 Number of Days to Export: 6 Export costs in US$ per Container: 1090 Import Number of Documents to Import: 5 Number of Days to Import: 5 Import Cost in US$ per Container: 1315 ***Source: Doing Business. 2014

OTHER INTERESTING LLINKS

How to import to the United States. (English) In this document you will find the steps and documents needed to import to the United States. Customs of the United States. (English) In this portal you will find regulations, import tariffs, international agreements, and information on security issues adopted by the government, among others. American Association of Port Authorities. (English) In this webpage you will find information regarding the Association, events, news, publications, port industries in the different countries that are part of the Association, etc. Federal Drug Administration. (English) In this webpage you will find the approvals granted by the FDA for the different regulated food and drug products. Tariffs and Statistics. (English) In this webpage you will find databases from the United States and other countries on tariffs and foreign trade statistics. World Trade Administration. (English) In this webpage you will find information regarding world trade policies. Department of Transportation (English). In this webpage you will find information on the behavior of the internal and external transportation in the country. Railroad Transportation SHIP CSX. (English) Information on fees and everything connected to railroad transportation in the United States. UNION PACIFIC. (English) This is the most well known rail transportation company in the United States. You will find the fees for your product. Road Transportation FREIGHT CENTER: (English) Information on road freights. LTL CARGO: (English) Information on road freights in Spanish (quotation). Source: Exports Logistics Sub direction of Proexport – Colombia. The information included in this profile is a guide; it has been obtained directly from the different services providers and it must be confirmed when programming a specific shipment. Last reviewed: 07/03/2014