6.1 TRANSPORTATION

L.M. Clark Ltd. can arrange for total transportation via truck from any city in the USA to any destination in Canada.

6.2 DISTRIBUTION

Our association with a highly service oriented distribution company would allow for you to maintain an inventory in Canada either in General or Bonded Storage. When an order is determined, a simple fax to this facility will cause the shipment to be shipped the same day or within 24 hours of fax notification. In the case of goods being held in bonded storage you will be able to defer duty and/or Goods and Services Tax until you have secured a sale. Customs clearance of these goods is usually within 24 hours.

6.3 LINE RELEASE

Line Release systems are designed to accommodate the frequent shipper into Canada by allowing a simplified and faster method of customs release known as PARS (Section 6.3.2) and FIRST (Section 6.3.3)

6.3.1 PARS (PRE ARRIVAL REVIEW SYSTEM)

Under PARS the shipment information is sent by the Vendor to the Importer or Broker before the shipment arrives in Canada. This advance information includes a bar coded Cargo Control Number. This Bar Code and shipment document (CCI or Commercial Invoice) are transmitted or delivered to Canada Customs for a release decision.

Canada Customs enters the release decision into their computer awaiting arrival of the goods. When the driver arrives at the border he turns in a copy of the bar-coded document to the Customs Officer. The Officer checks his computer and if a release decision is in the computer the driver may proceed to the final destination. This process at the border can take place in less than one minute.

6.3.2 FIRST (FREQUENT IMPORTER RELEASE SYSTEM)

FIRST is designed for importers whose shipments are repetitive, low risk, bulk products, exclusive truck shipments and free from Customs enforcement concerns. This includes for instance, ommodities such as bricks, salt, sand etc. Importers interested in this type of clearance method must obtain prior approval from Revenue Canada. Approval is given in the form of a unique authorization number which will accompany all shipments.

The vendor or shipper will prepare a release package consisting of an invoice and a lead sheet that includes specific shipment data plus a bar code authorization and transaction numbers. As with PARS, the driver surrenders these documents to the Customs Inspector at the border and is allowed to continue on to the customer once the data is entered into the Customs computer. Once approved this system allows for entry into Canada without prior notification to the Customs Broker . Entry is permitted on a 365 day, 24 hour a day basis.

6.3.3 ACROSS (ACCELERATED COMMERCIAL RELEASE OPERATIONS SUPPORT SYSTEM)

Across is a method of customs releasing goods in Canada electronically. This Customs System in conjunction with the Customs Broker’s software allows for an EDI transmission between the Customs Broker's office and Canada Customs Headquarters. The transmission is on a per shipment basis either in advance or immediately upon arrival of the goods in Canada.

6.3.4 RNS (RELEASE NOTIFICATION SYSTEM)

The Release Notification System is an electronic transmission of Customs Release Data from Canada Customs to the Customs Broker. Customs Brokers such as ourselves, who have supporting software are able to obtain release data for their clients and in turn transmit or fax this data to the warehouse or carrier, thus ensuring an expedited customs release and quick delivery of the goods.