By Mare Allen
The new "Buzz" word for purchasing and almost every other staff function is "value added". How can this concept be applied to your membership in NAPM-SA? Consider the recent trends to downsize, rightsize or just reorganize, and a history of continually reduced budgets. These elements all bring added pressure to reduce staff educational programs, as well as professional memberships.

One of the primary methods, though, of insuring you and your department meet the challenge of "value added" is to belong to NAPM-SA. Our mission as an organization is to provide you with quality educational programs, career broadening experiences, and mentoring opportunities. The monthly Educational Resources (Pro-D) sessions are designed to bring you current purchasing concepts immediately useful in your work place, and our dinner meetings provide opportunities to meet other purchasing professionals and net work with experts while expanding your skills and knowledge in the latest procurement trends. NAPM seminars fill-in any remaining gaps by providing state-of-the-art subjects as well as review programs (CPM classes) on key issues.

The realization of "value added" is up to you. The opportunities are available through your professional association, but you must participate to take advantage of them. Take the time to attend the "Pro-D" session, contribute your expertise to help others with a problem you have solved, and you will find the return is much greater "value added". This newsletter is full of learning opportunities, and the members of NAPM-SA have enough experience to solve almost any logistics problem. Try it and let me know how you implemented a "value added" idea and I'll pass it along.

Remember, now is the time you need to belong to NAPM-SA, and take full advantage of everything that membership provides. It could mean that well deserved promotion, another opportunity, or the satisfaction of attaining a personal goal in your purchasing career.

It is said that there are only two types of people in the world; the people that sell and the people that buy. It is also said that purchasing is purchasing and that all purchasing is the same. But are these statements really true? The missing link that binds or separates the buyer and the seller is government and their regulations. Also all purchasing is not the same. There is purchasing for the government, manufacturing, services, and natural resources industries. So all purchasing is not created equal but in our economic world it does fall into either the public or private sectors. Which area does your purchasing fall into and how is your purchasing regulated?

On January 12, 2000 at 7:00pm at the Doubletree Hotel, NAPM-SA will be having Jerry Brink who is in charge of the State Procurement Office for the State of Arizona, talk to us about the differences be the public and private sectors of purchasing and contracting. Jerry was raised in Kansas City, Missouri, served as a Marine in Vietnam. He received degrees from Missouri State University in Political Science/Speech Debate, a Juris Doctorate degree in Law from University of Lavern in Pomona, California and a Masters degree in Material Management & Contracts from the Florida Institute of Technology. Jerry worked for 3 years in his family's electrical engineering business between his military service and going to law school. After law school Jerry was the Senior Manager of Subcontracts for 5 years with Rockwell International in El Segundo, California working on the Space Shuttle and B1-B bomber programs. Then Jerry worked for 12 years as the Director of Contracts with Harris Corporation in Melbourne, Florida working on top secret DOD Space Shuttle and Space Station programs. While at Harris, Jerry negotiated international contracts in England, Canada, Mexico and Korea, Currently since 1997 Jerry has been the State Procurement Administrator with the State of Arizona in charge of their State Procurement Office.

NAPM-SA would like to invite everyone to attend our "Government Night". We do have a free Professional Development workshop from 5:30 to 6:30pm at the Doubletree Hotel followed by an $18 dinner at 7:00pm and our free speaker's talk at 7:45pm. Come join us and network with purchasing professional in Southern Arizona during our first meeting of the new century.

Name____________________________________________________________________________

Company _____________________________________________ # Attending________________

Phone #_________________________________________________________________________

Preferred
Entree(s)________________________________________________________________________

By Ralph L. Long, C.P.M
The NAPM Board of Directors, at their November 6th meeting, set the date for the vote on changing the NAPM Bylaws and resulting changes to the Certificate of Incorporation. The changes are a result of the Governance Committee recommendations that have been discussed over the past six months. The schedule calls for each NAPM member to be notified by mail of the vote on January 4, 2000, with the ballots being provided to the DNA. The DNA will cast the votes for the affiliate members by February 2, 2000. If you have read this newsletter over the past few months you know how I feel about the changes. I have tried to make you aware of the issues and have invited discussion. Its an overused phrased, but this is your organization or at least until this vote is posted. It is my privilege as the DNA to cast all the votes for this affiliate, and as always I will vote the way the affiliate members indicate they side on this matter. Please let me know how you would like that vote to go, pro or con on this Bylaw change. If you would like more information visit the NAPM Web site, www.napm.org, or give me a call, 206-4759. If I don't hear from you I'll vote in the best interest of the Affiliate first, then in the best interest of the organization. See you at the monthly meeting.

By Elliott Chaitt, Global resources Chair
Many purchasing professionals have little or no opportunity to engage in importation activities and likewise are unfamiliar with the benefits offered by Foreign Trade Zones (FTZ). Your organization may have occasion to import goods into the United States under special conditions where the use a FTZ could be desirable. FTZs were authorized by the U.S. Congress in 1938 to lift the United States economy out of the depression of the 1930s. It was hoped that the FTZs would attract foreign investment to the U.S. and promote commerce. There are about 175 FTZs located throughout the U.S. Although the zones are located within U.S. territory, they are secured areas which are not subject to customs.

How can an FTZ help you? Let's say that you are importing equipment which must meet stringent technical specifications. Assume that it would be uneconomical for the foreign supplier to acquire the special purpose test unit needed to establish if the imported equipment meets the specifications. Also assume the U.S. importer already has such a test unit. Under these circumstances the imported equipment could be shipped to a FTZ where the testing can be performed. In the event that the equipment fails to meet the specifications it could be shipped back to the foreign supplier. No duties need be paid under these circumstances unless the goods leave the FTZ and enters the U.S. Customs territory.

Similarly, The FTZ could also be used where your company exports goods some of which are returned to the U.S. due to defects. This material could be shipped from the foreign country directly to a FTZ where it could be inspected, repaired and returned to the foreign purchaser without it ever entering the commerce of the U.S. Again no duty payment would be required.

You may be unaware that we have a FTZ here in Tucson. Known as Foreign Trade Zone # 174, it is comprised of 5 facilities varying in size from a 25,000 square feet frozen storage warehouse to a 193 acre site with a 180,000 square feet warehouse.

This arrangement offers many advantages to U. S. companies engaged in international trade and manufacturing. These
advantages include:

1. Merchandise may be admitted and be held in a FTZ without customs duties. Duty is paid only when those imports are shipped into U.S. Custom's territory.
2. Customs duties are not paid on merchandise exported from an FTZ.
3. Duties may be reduced or eliminated on materials subject to defect, damage, obsolescence, waste and scrap.
4. Duties are not owed on labor, overhead or profit in the U.S. attributed to FTZ production operations.
5. FTZ users can pay the duty rate on component materials or merchandise produced from component materials - whichever is lower.
6. 1.Merchandise may be exported and returned to an FTZ without duty payment.
7. Spare parts may be stored, returned, or destroyed without paying duty.
8. Most merchandise subject to U.S. quotas may be held in an FTZ until quotas open.
9. Delays in customs clearances and duty drawback procedures are eliminated.
10. Quality control inspections can identify sub-standard goods to be destroyed or returned without duty payment.
11. No country-of-origin labels are required on merchandise admitted to an FTZ; correct labels must be placed on merchandise entered into the U.S.
12. Customs review of security procedures and the fact that unauthorized removal of merchandise from a FTZ violates Federal law, deters theft.
13. Increased accountability reduces problems with inaccurate inventory, receiving and shipment and helps track waste and scrap.
14. Materials consumed in FTZ processing may not be subject to duties.
15. Tangible personal property held in an FTZ for export and foreign-sourced personal property is not subject to state and local ad valorem taxes.
16. Merchandise may be held for exhibition without duty payment.
17. Duty payable on FTZ merchandise need not be included when calculating insurable value.
18. Due to FTZ security, discounted cargo insurance rates have been negotiated.
19. Transfer of FTZ merchandise in-bond for export or from zone to zone may occur without customs duty payment.
20. Title of merchandise may be transferred in an FTZ if there is no "retail" sale. Specific merchandise ID is unnecessary for zone accounting. A UIN inventory method (FIFO or FOFI) is acceptable in an FTZ.

By Ralph L. Long, C.P.M.
The next C.P.M. review will be on January 15, 2000 at the Viscount Suite Hotel, starting at 9:00 A.M. Registration will start at 8:30 A.M. We will discuss all tasks in Module Four as they exist today. Soon the Module will be revised and who knows what it may include so it may be better to take the test with today's data. Remember to qualify for the A.P.P. it takes passing of Modules one and four. The cost in only $45.00 including lunch and handouts. It is best if you study the C.P.M. Study Guide, Seventh edition, dated 1997. Once you pass module one and four and get the A.P.P. you only need to pass module three and four to qualify for your C.P.M. Of course there is also education and experience requirements for both designations. Please give me a call if you have questions. Do yourself a favor and consider this professional development opportunity. Start the New Year off right, get you're A.P.P. and C.P.M.

A TABLE TOP SHOW is coming in March 8, 2000. With a variety of suppliers to display their products, door prizes and lots of fun. For more information check on future newsletters. Mark your calendar and plan to attend.

NAPM-SA will sponsor a C.P.M. review class of Module Four for all the aspiring C.P.M./A.P.P.'S IN January. Plans are to hold this type of review each couple of months until all Modules are covered. Timing is planned so attendee's can take the module exams one at a time between review sessions. Do something for yourself in the area of professional development, plan to attend.

Name:_____________________Company:___________________________

Phone:____________________Fax:________________________________

Enclosed Check for $________________