The document summarizes an export trade finance and insurance seminar presented by Caroline Brown of Comerica Bank. The seminar covered market dynamics of U.S. exports and imports, an overview of the global trade cycle, tools and methods of payment, and closing comments. Key points included a 37% increase in U.S. exports and imports in 2012, top export markets for Comerica's footprint, and an overview of letters of credit, documentary collections, and financing programs like the Ex-Im Bank Working Capital Guarantee Program.

1. Export Trade Finance & Insurance Seminar
Trade Connect
Global Trade Cycle Solutions
“Financing the Global Supply Chain”
1
Presented by:
Caroline Brown, First Vice President
International Trade Finance, Western Market
May 8 2013

2. Objective
 Market Dynamics
 Overview of Global Trade Cycle
 Tools & Methods of Payment
 Closing Comments

3. Market Dynamics
U.S. Exports and Imports – Increase in 2012
In 2012, U.S. exports and imports of goods were the
highest on record -- U.S. exports increased 4% and
U.S. imports increased 3%.
Source: International Trade Administration
Note: Import data is not available by state
Source: International Trade Administration, TradeStats Express
Global: Trade Statistics - U.S.
Comerica’s Footprint -- 37% of Total Exports
In 2012, Comerica’s footprint represented 37% of total
U.S. exports. TX is the #1 export market, followed by
CA, #2 (11% of total exports); FL, #6; MI, #8 and AZ,
#25.
#2
#25
#1
#8
#6

4. Global: Trade Statistics - California
California – Exports Increase
Exports from California experienced an increase (2%) in
2012, going from $159 billion in 2011 to $162 billion in
2012.
Michigan Exports
2000-2009
Value in thousands ($USD)
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Exports
Source: International Trade Administration, TradeStats Express
Note: Import data is not available by state
Source: International Trade Administration, TradeStats Express
Note: Import data is not available by state
Exports – Top Trading Partners
The top 10 trading partners for California are:
(2012 figures in thousands, $USD)
 Mexico 26,319,672
 Canada 17,295,931
 China 13,977,175
 Japan 13,059,903
 South Korea 8,238,081
 Hong Kong 7,827,087
 Taiwan 6,334,103
 Germany 4,985,576
 Netherlands 4,551,259
 United Kingdom 4,343,909
Market Dynamics

5. Market Dynamics
Company
 Global Trends
 Primary Goals
• To optimize working capital
• To mitigate key risks
• To reduce costs
• To simplify the trade process

6. Market Dynamics
Competition: How We Differentiate Ourselves [cont.]
 Leading Letter of Credit Provider within U.S. Comerica ranks #7
among the top U.S. commercial banks, in letter of credit outstandings.1
 Leading Lender for Ex-Im Bank Working Capital Guarantee Program.
Comerica ranks #4 among the top lenders nationwide.2 We hold the
“Super” Delegated Authority Lender and “Fast Track” Lender designations.
 Strong Credit Ratings. Comerica has strong credit ratings -- required for
the acceptance of a Standby Letter of Credit. Present Ratings -- “A2” by
Moody’s Investors Service, “A” by Standard & Poor’s and “A” by Fitch
Ratings.
 Foreign Correspondent Bank Network. Comerica has coverage
throughout Asia, Europe, Latin America, the Middle East and Africa.
1 Source: Documentary Credit World (FDIC Statistics on Banking), 3rd Quarter 2012
2 Source: Ex-Im Bank, FY 2012

7. Overview –
The Global Trade Cycle

8. Global Trade Cycle Solutions

9. 9
IMPORTER (BUYER) BENEFITS EXPORTER (SUPPLIER) BENEFITS
 Optimize working capital
 Improve cash flow forecasts
 Take advantage of supplier discount terms
 Improve supplier relations
 Increase Days Payables Outstanding (DPO)
 Optimize use of credit capacity
 Reduce costs
 Interest rate and capital arbitrage
 Reduce working capital needs by using better
inventory control and cash flow management
 Improve sales forecasts
 Lower financing rates on required working capital
 Reduce Days Sales Outstanding (DSO)
 Manage buyer credit risk more effectively
 Reduce costs
 Interest rate and capital arbitrage
Benefits
Effective management of the global trade cycle provides
numerous benefits:

10. Tools & Methods of Payments

11. Tools & Methods of Payment
11
There are four primary methods of payment for global transactions, with
the level of risk varying for each.

12. Overview – Global Trade Cycle
12
Types of Risk
The evaluation of risk in global commerce plays a major role in
determining the method of payment to be used for settlement
between buyer and supplier.
RISK5 EXAMPLES
Country / Political Risk  Economic instability, government restrictions on payment, war, embargo
Commercial Risk  Insolvency, unscrupulous buyers, fraud
Currency Risk  Convertibility of currency, exchange controls
Transportation Risk  Timeliness of delivery, piracy, pilferage, unions, loss of product
Documentary Risk  Wrong documents, improperly prepared documents, incomplete
documents
Foreign Bank Risk  Insolvency, creditworthiness
Product Risk  Quality, quantity

13. Tools & Methods of Payment
13
Global Trade Cycle Solutions
Letters of Credit:
Commercial Letters of Credit
Standby Letters of Credit
Documentary Collections
Financing:
Direct Bank Financing
Bankers’ Acceptances (BA)
Trade Acceptances
Ex-Im Bank Working Capital Guarantee Program
(WCGP)
Private Insurance
Private Export Funding Corporation (PEFCO)
Online Solutions:
Comerica GlobalTRADE Web
Comerica TM Connect Web
Comerica eFX

14. Tools & Methods of Payment
14
Letters of Credit
SOLUTION DESCRIPTION
Commercial Letters of Credit • Irrevocable undertaking by a bank on behalf of its customer in favor of a designated
beneficiary, under which payment is effected only if the beneficiary presents
documents in accordance with the letter of credit terms and conditions.
• Often referred to as Import Letters of Credit and Export Letters of Credit or Trade
Letters of Credit.
• Confirmed Export Letters of Credit provide additional protection to exporters.
(Note: Bank deals only with documents, not goods.)
Standby Letters of Credit • Performance Standby Letter of Credit: Irrevocable undertaking by a bank to make
payment to a designated beneficiary in the event that its customer fails to perform a
non-financial contractual obligation (e.g., cover performance of
contractors/suppliers, in lieu of a bid or performance bond).
• Financial Standby Letter of Credit: Irrevocable undertaking by a bank to make
payment to a designated beneficiary in the event that its customer fails to fulfill a
financial contractual obligation (e.g., support advance payment/payment guarantee,
in lieu of cash or security deposit, support IRB/EDC).

15. Tools & Methods of Payment
15
Documentary Collections
SOLUTION DESCRIPTION
Documentary Collections • Buyer: Bank receives documents conveying title to goods from foreign bank and
delivers documents to its customer in exchange for payment or promise to pay at
a future date.
• Supplier: Bank delivers documents conveying title to goods to foreign buyer’s
bank for delivery to its customer in exchange for payment or promise to pay at a
future date.

16. Tools & Methods of Payment
16
SOLUTION DESCRIPTION
Ex-Im Bank Working
Capital Guarantee
Program (WCGP)
• Working capital loans backed by Ex-Im Bank guarantee (90% of loan amount, including
principal and interest). Enables U.S. exporters -- large and small -- to facilitate the export
of goods and services.
• Comerica holds:
• “Super” Delegated Authority lender designation (allowing us to commit credit facilities
up to $10 million per borrower, without pre-approval from Ex-Im Bank); and
• “Fast Track” designation (allowing us to commit credit facilities greater than $10 million
and up to $25 million per borrower, with expedited Ex-Im Bank approval).
SBA Export Working
Capital Program (EWCP)
• Working capital loans for small businesses backed by SBA guarantee (guarantees
repayment of up to $1.5 million or 90% of loan amount, whichever is less). Similar to the
Ex-Im Bank WCGP, however, no U.S. content or military/defense product and service
restrictions.
Financing

17. 17
Thank You
Caroline Brown
First Vice President
Trade Finance Officer
Long Beach, CA
562-590-2525
CVBrown@Comerica.com