United States Fur Exchange & Feed Supplier

Mink - Sable & Fox Feed - Pelletized - according to your formula - in 50 kilogram bags - 32 tons per 40 ft container - C.I.F. delivered any Russian Port in exchange for 1800 pelts per container.

EXPORTING FURS TO RUSSIA

We have 20 years experience of grading on a bench with one of the largest fur traders in the United States and have many years of experience acting as buying agents for our clients and purchasing hundreds of thousands of dollars of fur pelts each year for each of our customers.

EXPORT FURS PELTS FROM RUSSIA

The Russian Fur Industry

Until 1995 Russia was an exporter of high quality furs of mink, sable and fox, and such production was also used in Russia for the production of costs and hats. During the past 4 years the quality and quantity of Russian fur pelt production has declined by 50% as a result of the following

• Fur farms have not had access to adequate supplies of animal food or antibiotics for maintaining the health of animals.
• Breeding stocks have been slaughtered.
• The size and quality of animals has deteriorated.
• The money obtained from exporting fur pelts has remained outside Russia as flight capital and this has denied fur farms money for maintaining their equipment and machinery.

A new middle class of Russians can now afford good quality costs and hats and has found that domestic production of furs cannot satisfy their demand for highest quality. To respond to this demand Russian coat and hat manufacturers are now importing fur pelts for their domestic customers. Russia continues to export fur pelts of a lower quality.

The heading IMPORTING FURS PELTS INTO RUSSIA describes the capabilities United States Fur Exchange has for providing Russian companies with high quality fur pelt import. At the end of this heading you will find a heading FUR MARKETING FOR RUSSIAN FUR FARMS which describes the capabilities of USFE for exporting Russian fur pelts.

IMPORTING FUR PELTS INTO RUSSIA

United States Fur Exchange is operated by people of Dutch origin.
Through our filiaal in Amersfoort, Holland we are able to deliver
annually 2 million Dutch origin fur pelts of highest quality.

We offer the following advantages.

• Payment is acceptable in rubles paid in Russia or in dollars paid in Holland or The United States.
• Reliable delivery by truck or by airplane from Amsterdam to any airport in Russia at which Western airlines land with regular service.
• You may provide your own transportation.
• You may inspect the farms if you wish, to observe quality of live animals before they are processed.
• You may order pelts fully "tanned" to highest Italian standards of finishing.
• You may make cash payments in dollars and pick up your fur pelts yourself in Holland using your own transportation.
• We offer security services and personal guard service at reasonable prices for visitors to Holland by Rottier Security which is staffed by Dutch police officers. Quotations upon request according to your requirements
• Translation English/Dutch and Dutch/English provided. Russian available upon request.
• Visas arranged upon request.
• Russian government trade credits with Third World countries may be used to make payment if protocols allow it. Consult Central Bank of Russia or Ministry of Trade or Finance, Russian Federation about protocols with Indonesia, India, Egypt, Algeria, Bangladesh, Pakistan, South America, Mexico, Mozambique, Angola, Morocco, and Nigeria.
• Counter-trade payment are acceptable by directing payment for Russian exports to our company
• For address of our offices in Russia, Holland or United States send E-mail message to <russia@aa.net>

Price estimates:

As of Oct. 1997 the estimated price for highest quality:

• size "0" male mink pelts was $39.17. A wide range of
• prices is available for smaller sizes and lower quality
• ranging from as low as $9.60.

FUR MARKETING SERVICES FOR RUSSIAN FUR FARMS

Auctions:

Palms & Co is prepared to sell Russian furs for its Russian customers at fur auctions anywhere in the world and by private treay to individual buyers.

Such auctions generally continue for 3 to 5 days. Bidding by buyers from all over the world guarantees the highest prices through competition. The payment by each buyer is guaranteed to the auction by his bank. Russian sable from Bargunzinsky Jakutsky, Minusinsky, Eniseiksky, Kamchatsky and Sakhalinsk are sold from fur farms that in the past used to sell to Soyuzpushnina and Dalpushnina. Palms & Company was the first American firm to sell Russian furs in America.

Shipping Freight:

Untanned fur skins of mink, sable and fox and lynx may be shipped from Russia in any quantity to Palms & Company to agreed upon destinations in Europe, Asia or America.. You may use any airline or private charter. Palms & Co. will clear the furs through customs upon arrival. The shipper may pay the freight, but the shipper may also send them "freight collect" Palms & Co will pay the freight upon arrival and deduct it from the money after the sale. . No permission or contract is necessary to make a shipment. But anyone who w ishes a contract may prepare one and send it and we will sign it. No shipment is too small. No shipment is too large. Please include list of contents of shipment and name of seller and where to make payment after the auction.

Prices:

The prices vary according to color, quality and size. Average price quoted here are amounts paid to the seller before deducting freight, import duty, customs clearance, insurance, auction commissions and expenses. Average prices are:

HOPKA (Mustela Vison) Mink (a)(male by size in centimeters),

Dlina 66-71 cm. $15 U.S. dollars.; 71-77 cm. $20.00; 77-83 cm. $35.

(b) (female), Dlina $5.00; 53-59 cm. $10; 59-65 cm. $12 65-71 cm.

$15 Sable (Sobl) (Latin: Martes Zebelina) Lynx & Sable $50.00 to

$140.00 (Chernoburaya Lisa) 100 cm. (Vulpes Fulva) Silver Fox $25 to $35

Red Fox 100cm. $10 to $27 (Pesech), Artic Blue Fox $35-$55

Payment

Payment is made within 10 days after the furs are sold.

Services:

Payment can be made also in part in animal vaccines and animal food. For many years the foods supplied to Dalpushnina in St. Peterburg has come from the supplier of Palms & Co. in The State of Wisconsin in America. Technical assistance can be provided. Pa lms & Co will consider to buy part ownership of fur farms become partners.

Inspection:

Grading of quality, size, color etc is all done at the auction. It is not necessary to send samples. Any furs of any quality or size may be shipped. UNTANNED furs do not have to pay duty. Tanned furs will receive a 15% lower price because U.S. import duty of 15% must be paid..

Answers to Your Usual Questions:

• We need feed and skinning equipment , and vaccines, innoculations, cages etc. Can we receive these in exchange for Furs

Yes.

• Can we receive payment before shipment?
  
  No not for the first shipment, but when we have done some business we can arrange to make advances of money against future shipments. If your bank will give us a credit, we will pay you part of the value before shipment and repay the bank when the furs arrive and are sold. Ask your bank to contact us to discuss this if it interests them.
  
• Can we receive some rubles as loans for expenses to operate our fur farm until we can prepare furs for shipment
  
  We are willing to sign with you to guarantee repayment of credits with you at a Russian bank and to repay such credits after the auction sale of your furs. After a few shipments we will consider to provide such bank credits to you ourselves.
• Can we receive payment after the furs arrive in U.S. and before the auction?
  
  When your shipment arrives we can give you a dollar bank credit for part of the value of your shipment and pay it to you. This credit will de deducted from the money you receive from the sale
  
• Will you accept furs in Russia and arrange shipment yourself.
  
  NO
• Can you provide bags for packing furs?
  
  Yes if it is necessary we can send packing bags to you.
• Must our fur farm sell furs only to you?
  
  Yes we want your agreement that we will be your exclusive export agent You can not sell to other people for export from Russia to any country. Otherwise you would hurt yourself because prices on the Auction will go down if you create your own competition by selling directly to customers. You will damage our business and damage your own price possibilities. We guarantee to sell your entire production at all times.
• Will you help us with export licenses?
  
  Yes, if an export license is necessary our representatives will help you to obtain such licenses.
• What is the financial condition of Tovarichestvo Soboleva Birsja C.W.A.
  
  It has no debts to anyone. It has money in banks in dollars
  
• How many furs will you be able to auction/sell for us ?
  
  We can sell any amount up to 5 million mink and 100.000 sables and 100.000 fox skins. We will accept shipment of as little as 500 skins per shipment.
  
• What is the most money we could possibly receive from an auction under the best conditions of the market if the skins are the best sizes, color and quality and the largest quantities?
  
  Mink $35.00 Sable $140.00 Fox $55.00. This is not normal or guaranteed. It is just a possibility, if all things work out for the best and the furs are of highest quality.
  
• Will you accept wild trapped skins as well as farm raised skins?
  
  Yes but you must identify them as such on your packing list of the shipment
  
• Can the packing list be written in Russian?
  
  Yes.
  
• Do the documents of shipping need to be signed by Government agencies of Russia?
  
  No, you may ship furs with just your own private documents and without any seal or stamps as long as a piece of paper describes what is inside. and the paper does not have to be signed. If necessary you may even ship goods without any papers at all. But a few papers are better and very helpful.
  
• Can we put a copy of your American license in the shipment?
  
  Yes, if it is useful, you may if you wish put in a copy of our license.
  
• Will you arrange credit with western airlines that stop in Russia airports, so we can just give them our furs without any question of freight payment?
  
  Yes. Tell us what airline you wish to use and the fax or tel. or address and we will arrange it. Alaska airlines serves Khabarovsk, KLM (Royal Dutch Airlines and SAS (Scandanavian Airlines) and FINNAIR (Finnish Airlines) and Delta Airlines (U.S.) serve Mo scow and St. Petersburg
  
• May we ship to you from any city in Russia?
  
  Yes, if they are sent to any city in Europe or America with our final address. The airline wil forward themn to us.
  
• Can we receive a visitors visa
  
  
  After your first shipment of at least 5000 fur skins we will arrange for visas for visiting and also possibilities exist to provide training and technology transfer about fur farming.
  
  
• Can we receive American Credit Cards such as American Express, MasterCard, and Visa and American bank accounts?
  
  After your first shipment of furs, we can provide you with such credit cards but you must leave on your account, enough money to cover your spending with such cards. Such cards may be used anywhere in Russia where they are accepted and also in America and the rest of the world.

• To whom in Russian should we deliver our furs if we don't want to ship them to you ourselves?
  
  We will tell you when we know where you are located.
  
• What can Palms & Company do for us?
  
  We can see to it that you get a fair price for your furs and have financial support for making your farm bigger, employing more people, having healthier animals and solving questions of housing and medical and dental services and consumer goods for your w orkers.
  
• Can you provide financing

If you can provide an "aval" from one of 15 Russian banks which we accept we can provide up to one year financing at a cost of approximately 15% for feed, cages, medicine, skinning machines, equipment and other purchases for the housing, clothing, food and social needs of the workers to our existing customers.

• What do you expect us to do for Palms & Co.
  
  Let us make a fair commission for our work. Honor our exclusive sales rights in the U.S. Ship to us your total fur production.

SERVICES OFFFERED TO RUSSIAN FUR FARMS AND IMPORTERS

• Provide delivery of furs and fur pelts to Russia
• provide feed, innoculations, cages, medicine and consumer goods for workers of the fur farm
• developing international export markets for Russian Fur.

• Inform about the pelt colors and chacteristics which are in demand in world markets.
• Assist in providing the best breeding stocks and correct food and medicine
• Properly sort and grade the pelts for auction
• We only offer a market for untanned fur pelts and not finished garments. Kastoria is the key manufacturing center for most of Western Europe. Hong Kong and Korea do most of the manufacturing for Japan and the U.S.A. Buyers from these countries constitute potential customers.
  

The mink diet is carefully formulated and is the most scientifically analyzed and tested of all farm animal nutrition programs. Most mink diets consist of:

• Fish By-products
• Beef Tripe, Beef Spleens and Beef By-products
• Inedible chicken and turkey By-products
• Dairy By-products
• Egg By-products
• Cooked Cereals

Use of otherwise inedible animal by-products in the mink diet help to keep the price of products for human comsumption low. Diets may vary throughout the year according to the needs of the mink.

There are four main types of diets:

Maintenance Diet - January/February Reproduction and Lactation Diet -

March/June Growth Diet - July/August Furring Diet - September/November

Most mink are fed fresh feed or dry pellets daily or a combination of the two. Clean fresh water is made available usually through an automatic system. We will help you develop the best feeding and medical program for mink and provide the latest technology, if we are marketing your furs for you.

There are many factors effecting price. Here are some of the factors

1. Is it a male or female pelt

2. What is the size of the pelt

3. Quality of the pelt

4. Prestige of the label, Regular Label, Unlabeled

5. Degree of damage

6. Color and characteristice of the pelt

7. Tanned or untanned (lower price for Russian furs if they have been tanned

8. Reputation of the brand name and trademark

9. Correct color matching of pelts for a uniform color in the garment

10. Guaranteed delivery on time.

11. Guaranteed insured

12. Three day freight delivery anywhere in the world

13. Guarantee no customs or license delays or problems

14. Absolute satisfaction guaranteed to all customers by the auction

CONTRACT TO GUARANTEE AUCTION SALE OF FUR SKINS

This contract is between.

..................................................................................................................... hereinafter referred to as "...........", and Palms & Company Inc, of 515 Lake Street South, Suite 103, Kirkland, Washington 98033 U.S.A., hereinafter referred to as "Palms.

1. Palms agrees to receive a shipments of untanned fur skins of mink, sable or fox from "............" that they wish to ship now or in the future. Shipment may be made by aircargo transport to any U.S. destination showing address and telephone of Palms w ith notice. "Call upon arrival 1 (206) 828-6774 Palms & Co."

2. Palms agrees that upon arrival at any Airport, it will arrange transport of the furs and will arrange entry through customs and will store and insure the fur in a warehouse and will sort the fur by color and quality into bundles and will offer the bundles of fur for sale .

3. Palms gaurantees that that all the skins will be sold and guarantees payment for the furs. that the sale will be competitive and every effort will be made to obtain the highest possible price for the furs using western methods and technology in order to obtain the best prices. The payments by the buyers will be guaranteed. If you establish a minimum price you want for the furs, we agree they will not be sold for less.

4. Palms will make payment of the "net amount" of the money received for the furs in dollars to any bank in the world as you instruct. The net amount shall be the amount received from the buyersless the cost of import duty, transportation, storage and insurance and a 10% commission for Palms.

5. You give Palms the exclusive right to sell all exports of your furs for a period of three years. Only Palms can import and has the exclusive right to import your furs. Palms agrees it will accept all fur shipments from you in any quantity. You will not inform any other parties in Russia of the commercial secrets of Palms nor participate in any efforts of any other companies to import furs from Russia and/or to compete with Palms or attempt to circumvent Palms in any way in the selling of furs from Russia. Palms agrees that it will buy all your production of fur skins. Should you breach this provision of the agreement you agree that Palms may secure an injunction or temporaring restraining order prohibiting your furs from being imported by you or anyone else to whom you have sold them or to whom you have transferred possession for purposes of importing them

6. In the event of a dispute regarding this agreement it shall be settled by arbitration under the laws of the country of Holland (The Netherlands) with venue in Amsterdam. Intending to be bound hereby both parties have signed this agreement on the date and in the place indicated below.

Palms & Company

...................................

By Dr. Peter J. Palms IV, President

Company Name ................................................

Address......................................................

Email addresss...............................................

Tel..........................................................

Fax..........................................................

By...........................................................

Title........................................................

Date.........................................................

Place........................................................

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