MANUAL / GUIDELINE AIR SHIPMENTS TO BRAZIL



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MANUAL / GUIDELINE AIR SHIPMENTS TO BRAZIL This manual was especially designed to eliminate the problems, which arise when importing cargo through the Brazilian airports, by complying with the main Brazilian laws, and thereby maintaining costs and transit time to a minimum. It is hoped that your staff concerned with air shipments to Brazil, will acquaint themselves with the contents of this manual. As we cannot be held responsible for the wrong issuance of documentation stemming from their origin. Should the laws governing the importation of cargo arriving by air transport to Brazil, change in any way, shall duly inform you as soon as they are promulgated. We trust the contents of this manual will be of assistance to you and will help both to develop the efficient service our customers expect. For any doubt you may have, please don t hesitate to ask us before you ship!!! Novo Hamburgo/RS/Brazil, May 2010.

1) Head office / Company: DESPACHOS INTERNACIONAIS AEROMAR LTDA Phone: (55-51) 35948722 Fax: (55-51) 35274502 Address: Rua Pedro Álvares Cabral, 1006 Novo Hamburgo/RS/Brazil Web-site: www.aeromar.com.br CEP 93.310-330 Contact Persons: Roberto Diefenbach Director/Customs Broker & Sales Nara Beatriz Diefenbach Directrix/Customs Broker Rebeca Diefenbach Dilkin Renata Diefenbach General Manager Export & Import Supervisor Office Hours: Activities: 8:00 AM to 11:30 AM and 01:00PM to 06:00 PM MON-FRI Consolidator: Yes Customs Clearance: Yes Warehouse: Yes Bonded Warehouse: Yes Pick up/delivery: Yes Subcontracted Subcontracted Subcontracted Accounting: Freight Collect: Yes Collect shipments will be acceptable only when provided through us, with prior written approval of all involved collect charges. If no authorization is obtained, We have the right to re-debit origin charges. Accounting Procedures: Accounting to guideline Payment Procedures: Against delivery of documents to Consignee *** ONLY FOR PARTNERSHIP *** Profit Share Agreement: 50% of air freight profit 50% of file profit for direct shipments Local Handling Costs USD 50,00 per MAWB USD 15,00 per HAWB Procedures: Copy of statement to Aeromar/ Novo Hamburgo. 2.) AIRPORT PORTO ALEGRE AIRPORT = POA Airport Salgado Filho

3) Preparation of # MAWB must show AEROMAR S tax I.D. Number: MAWB and HAWB C.G.C. N0. 89.188.718/0001-67 # MAWB must show consolidated cargo as per attached manifest # MAWB a l w a y s must be prepaid! # HAWB can be collect or prepaid # HAWB must show consignee name (not the bank s) tax I.D. number (C.G.C.) # Description of merchandise on HAWB should be as resumed as possible # Avoid direct IATA AWB S! # BACK TO BACK shipments are allowed. # MAWB AND HAWB always have to be signed!!! 4) Freight amounts # AS AGREED/AS ARRANGED I S N O T A C C E P T A B L E Neither in MAWB nor in HAWB Neither as CC nor as PP # Correct freight amount must always be shown on AWB S as import duties and taxes are charged on CIF bases. Rest assured that customs know international rates! Also, we are not allowed to remit CC-freights, if not shown on AWB! # Currencies applied on MAWB, HAWB and your invoice must be the same. # D o n o t d e c l a r e value for carriage or customs, unless you have written instructions, use NVD or NCV # For co-loader shipments, do not issue a second HAWB, include co-loader s HAWB S only or replace it by your form # Airport costs at origin, must be shown on HAWB by using authorized IATA THREE LETTER CODES only (see TACT RULES). Non observance of these codes will result in non payment and non remittance, due to Brazilian central bank regulations. We will have to raise debits against office of origin for wrong HAWB S containing uncollectable CC fob costs.

Following codes only, are accepted for shipments to Brazil: ACC or ACA (animal container) ASC or ASA (assembly s. fee) AWC or ASA (AWB FEE) CHC or CHA (clearance, Hdlg.) HRC or HRA (human remains) LAC or LAA (live animals) RAC or RAA (DGR FEE) SIC or SAI (stop in transit) SSC or SSA (signature service) TRC or TRA (transit) Note: any other denomination, not listed, like pick-up, documentation, handling, cartage, inland freight, etc., will be refused by consignees and Brazilian central bank will deny its remittance. However, exw-charges have to be discriminated on HAWB. For instance, as pick-up charges you can use CHC or CHA # C O D shipments a r e n o t a l l o w e d to Brazil!!! 5) PRE-ALERT # PRE-ALERT Is a must to avoid clearance delays! Send in advance, before departure, copies of MAWB, all HAWB S and your freight invoices, credit notes, reconciliation statements, to Aeromar by fax or E-mail Never attach your freight invoice to MAWB. It has to be airmailed to Aeromar / Novo Hamburgo. 6) Shipping Documents # HAWB Original 2 Original signed (in blue color) and three carbon copies of each HAWB # Photo and/or fax copies are not accepted by customs! WITHOUT ORIGINAL 2 AND COMMERCIAL INVOICE CUSTOMS CLEARANCE IS IMPOSSIBLE # Missing documents cost a fine of at least USD 50,00 and cause extra storage charges. These additional expenses will be billed to office of origin # Brazilian Airport Customs require an extra envelope, contain carbon copies of MAWB, HAWB S and cargo manifest, attached and addressed to RECEITA FEDERAL 7) Bonded Transfer If requested, require pre-arrangements, as follows (I.N. 47/95) # Insert on MAWB + HAWB S

MERCADORIA DESTINADA AO DAP (name of Warehouse; to be informed by our client), CONFORME INSTRUCAO NORMATIVA I.N. 47/95 # Never issue HAWB for normal shipment together with an I.N. 47/95 in one consolidation. However, you can issue various transit shipments/hawb S in one consolidation. # Shipments must be pre-alerted by fax, at least 24 hours prior departure with MAWB, HAWB and commercial invoice, during our official working hours, as we must apply for transfer approval before arrival. # Shipments c a n n o t arrive on Fridays, weekends and holidays, otherwise consignee has to pay storage. Therefore, please check arrival date carefully and, if necessary book shipment on next flight. #Any flight changes or part shipments are not allowed. # Check weight and dimension that cargo may fit in pax-aircraft. Bonded truck for surface transports are very expensive! # Transit to other country is not allowed to forwarders in Brazil 8) Import License (LI) As it is a prior authorization to import specific goods, that should require before shipment. It s validity is 60 days and can not be extended. If cargo is shipped before import license was issued, consignee will have to pay heavy fines (30% on CIF value). Without the import license number we cannot ship cargo. One import license can be used for several partial shipments, it is not necessary one import license for each shipment. When the import license has expired consignee must provide a new one and cargo cannot be shipped until it is ready. Note: in the past, import license were created to authorize, or not, NA importation of specific materials. Nowadays it serves mainly as statistic control of Brazilian customs authorities. # Freight Forwarders are not allowed to import in their name. 9) LABELS # Besides shipper/consignee name / address labels, each box, not only the pallet must contain airline and HAWB numbers! D o n o t abbreviate numbers! Fill in all details! Re-labeling fees at customs are high and delay clearance Missing label cost at least USD 50,00/HAWB, if lack is discovered by Infraero within 24 hrs after arrival, after that USD 150,00/HAWB. We ll debit these charges to office of origin. To avoid such fines, please put two labels of MAWB and HAWB on each package.

10) Correction of Documents: # AWB corrections must be stamped CORRECTION APPROVED BY. However, customs refuses rate corrections. # Arrived AWB S cannot be replaced, as customs takes copies upon arrival. 11) Special Shipments: For these shipments please always ask our green-light before your office accepts cargo. A) FREE HOUSE The first step is to contact consignee and check if he authorizes us to DELIVERIES handle the shipment because a power of attorney is required and must be provided by consignee. Upon consignee s acceptance we will provide the customs clearance when cargo arrives. All charges will be paid by us will be debited to origin sending station. If a quotation is required please send us the following information: fob amount harmonized code (N.B.M.) air freight amount final destination /city name consignee name description of goods quantity and kind of packages / if possible please send us the dimensions of cargo B) DDP shipments ARE NOT ALLOWED C) Personal effects/ Removal goods Please note that Aeromar cannot provide the customs clearance and delivery for these shipments, nor sub-contract someone to provide same service.

12. OTHERS Brazilian airport authorities (INFRAERO), installed at Brazilian airports new scales and every import consignment gets checked on correct weight. WEIGHT DIFFERENCES INFRAERO/Customs accept a discrepancy of maximum 20%. Mayor differences below and/or above as indicated in shipping Documents have following consequences: - cargo can t be cleared immediately. Only consignee s customs broker is authorized to make necessary amendments. The entire procedure may take several days and causes additional warehouse/handling charges and fines. - minimum fine: USD 50,00 13. FUMIGATION PLEASE INFORM CLIENTS THAT WITH EFFECTIVE FROM 3 RD CERTIFICATE JANUARY 2000 ALL WOODEN PACKING REQUIRE A FUMIGATION CERTIFICATE. IF THERE SHOULD BE ANY DOUBTS, PLEASE CONSULT US.