Peru
HERBALIFE®
December 2006
Country Opening 63
Key Points
General
Official company name: Herbalife Peru S.R.L.
Sales Center (Open to the public by end of January 2007) Address: Berlin 644, Miraflores, Lima 18, Peru (Mailing only) Telephone: (Coming soon) Fax: (Coming soon) E-mail:
Order Department: PEorder@herbalife.com
Distributor Relations Department: PEds@herbalife.com
Sales, Strategy & Support Deparment: PEeventos@herbalife.com
Hours of Operation:
Distributor Relations: Monday – Friday 9:00AM – 6:00PM Saturdays: 9:00AM – 1:00PM
Management Support
Jaime Elkin, Country Director
Nelson Insua, Distributor Services Manager
Jossie Aspauza, Sales, Strategy & Marketing Manager
Miguel Del Rio, Finance Manager
Jorge Miranda, Logistics Manager
Information for your business
Legal age: 18
Independent Distributors who submit Distributorship Applications with a Peruvian address may indicate their Tax ID Number (Registro Contribuyente Unico – R.U.C.) on the Distributor Application.
Non-Residents are not able to retail in Peru; they are limited to personal consumption of 7,500 volume points per year. In order to retail, Non-Residents must comply with Immigration requirements and obtain a “Registro Unico de Contribuyentes (R.U.C.)”
A limited selection of nutritional products will be available
Formula 1 Nutritional Shake Mix Vanilla
Formula 1 Nutritional Shake Mix Chocolate
Formula 1 Nutritional Shake Mix Wild Berry
Performance Protein Powder
Herbal Concentrate Original (100 grams) & (50
Chilean IBO (Career Book) Available at
Opening
Terminology
US
Commission Supervisor Royalty Overrides Royalty Roll-Up Production Bonus
PERU
Commission Wholesaler Volume Rebate Volume Rebate Roll-Up Production Rebate
IBPs will be available for sale – 1 IBP
Cost: S/172.79 Nuevos Soles (all tax inclusive)
National Price suggested by President’s Team
Members
Cost: S/210 Nuevos Soles
IBP Content
Welcome Setter from MOJ Formula 1 – Vainilla Mini-catalog product Pin – “Control Your Weight, Ask Me How” DVD – “Earn What You Are Worth” Distributor Application IBO
Rules Applications with Peru addresses can be accepted as of November 23rd, 2006. We will start selling IBP’s as of December 1st, 2006. Weight Control claims are permitted.
Payment methods
Cash Nuevos Soles
Credit Card Visa, MaterCard, American
Wire Transfer Nuevos Soles
Cashier Check Nuevos Soles
Personal Check Nuevos Soles (Only
Based on the Distributor’s tax registration status either a “Factura’ or “Boleta” will be issued. These are pre-numbered sequential forms issued by the government:
• Tax Registered (RUC on the system) – Factura will be issued
• Non-Tax Registered (RUC not on the system) – Boleta will be issued
Distributors who are not tax registered are also subject to the personal consumption of 7,500 yearly volume points.
EOM rules apply- All orders MUST be received on or before the designated “EOM”day in order to count for that month’s volume.
Orders and Shipping
Inbound / Outbound ISS orders ARE NOT available. 7% Packaging & handling on Full Retail. VAT 19% on Full Retail. Freight charge is based on the following scale:
Full Retail (Nuevos soles) Percentage
0 – 643 S/.23 Minimum Charge
644 – 1609 3.5%
1610 – 2574 3.0%
2575 – or more 2.5%
Earnings
Ten Customer 70% Rule applicable. TAB Team Application applicable. No Checks Payable Policy.
Wholesalers must submit their R.U.C. in order to receive earnings; they will also be required to invoice Herbalife for their earnings before earnings can be release.
Peruvian Resident Wholesalers will be paid their local earnings in Nuevos Soles; Distributors have the option of receiving their payments via check or wire transfers.
For now, wire transfer payments can only be performed if the Distributor has a bank account with Banco de Crédito (BCP).
Foreign earnings for Peruvian Resident Supervisors will be in US$ via OC check. Another option available to Distributors is through wire transfer or International Credit Card through HSBC. On the latter earnings are converted to local currency.
A Non-Resident Supervisor will receive their Peruvian earnings in US$ with 30% withholding tax.
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