CODICO IMPULSE 01/2003

AUSTRIA - GERMANY - EU
OUR DELIVERIES TO GERMANY


Dear Reader,

Because we are repeatedly confronted with the (to us somewhat surprising) claim that goods imported from Austria to Germany must undergo customs declaration procedures, the editors of CODICO Impulse decided to interview CODICO's Mrs. Anneli Ashour, head of the company's Logistics Department, in hopes of dispelling this myth. In the interview, she confirms for our German customers what we at CODICO knew all along: Those German customers who choose CODICO as a supplier over competing suppliers inside Germany are at absolutely no logistical disadvantage whatsoever.




Austria in the EU
Austria has been a full member of the EU since January 1, 1995. As a member state, Austria has the same rights and responsibilities as do, e.g., The Netherlands, France, Italy, Spain and Germany.

Austria also implemented the Euro on January 1, 2002, as did Germany, so both countries definitely share the same currency.

Having said that, we will now turn to the interview with Mrs. Ashour for more details:

Editor of CODICO Impulse (ECI): In what currencies does CODICO currently offer products for sale?

A. Ashour:
We're very flexible on meeting the needs of our customers in this area. Our EDP system allows us to both quote prices and invoice consignments in Euros, US Dollars or Yen.

ECI: How do customers go about ordering from CODICO?

A. Ashour: Customers can place their orders by phone, fax or email. We are also planning to offer the option of placing orders via EDI by mid-2003.

ECI:
What confirmation does the customer receive from CODICO for placed orders?

A. Ashour: We provide customers with a written confirmation for each order that we receive. Confirmation is sent via fax, email or, also beginning around mid-2003, by EDI (at the customer's request).

ECI: How does one interpret CODICO's confirmed delivery times? And, how long does it take for a consignment to reach German customers?


  A. Ashour: All of our delivery times take into account the actual receipt of goods by the customer. For our German customers that means 2-3 days.

ECI: What kind of delivery window is CODICO able to meet?

A. Ashour:
We have supply agreements with German customers that call for a delivery window of +/- one day, and CODICO has no problem meeting such requests. We're very flexible in this regard, not only with our German customers.

ECI: Are customers informed when CODICO can't meet a delivery date?

A. Ashour:
Yes, of course. Even though the last half of 2000 and first half of 2001 were difficult with respect to delivery times, we still managed to meet the pledged delivery date 99.2% of the time (!!!). This statistic is compiled using our EDP system, and it yields a comparison of the actual and targeted delivery times. Customers are also consulted before we set delivery times, since the marks on our supplier evaluations would suffer if we didn't.

ECI:
In what currencies do you invoice?

A. Ashour:
As I mentioned previously, we don't just quote prices in different currencies, we also offer customers a choice of currencies for the invoice itself. For example, a customer with significant US Dollar reserves from sales turnover in that currency can choose consignment and invoicing on a US Dollar basis.

ECI: We have frequent inquiries from German customers on the subject of import customs clearance. Some even insist that Austrian shipments to Germany are subject to customs declaration procedures. Is this assertion true?

A. Ashour:
No - the same regulations that apply to other EU member states also apply to Austria. Consignments from Austria do not require a customs declaration, all they need is an INTRASTAT declaration (as do consignments originating in France or England, for example).

ECI: When the time arrives to pay the invoice, how does CODICO help German customers reduce the cost of international wire transfers?

A. Ashour: Many of our German customers are already wiring their payments to CODICO's German COMMERZBANK account, paying the same fees that they would for transfers to the account of any other German supplier. I highly recommend this payment option for all German customers wishing to reduce their banking fees. Our accounting department updates CODICO's Commerzbank account online on a daily basis, so German customers experience no delay in the booking of payments.

ECI:
If customers have specific questions regarding these issues, whom should they contact?

A. Ashour: Customers may contact me directly regarding any of the above topics, or they can inquire within CODICO's accounting or order processing departments.

ECI: Thank you for this discussion.

Anneli Ashour, Logistik, DW 19
Eva Augustin, Buchhaltung, DW 13






CODICO GesmbH & CoKG • Mühlgasse 86-88 • A-2380 Perchtoldsdorf

Tel: +43 1 86 305 • Fax: +43 1 86 305-98 • e-mail: office@codico.com • www.codico.com