Puerto Rico

PUERTO RICO

PUERTO RICO

COMPANY DETAILS

Amway de Puerto Rico Inc.

Edif. #118, Carr. 174, Km 1.7
Parque Industrial Minillas
Bayamon 00959
Puerto Rico

Phone: 787-269-3620
Tel: 787-269-3880
Fax: 787-269-3985

www.amwayglobal.com (Public Website/English)

michelle.burgos@amway.com (Email)

Opened November 1974

Plan Basics

Overview

Purchasing Products
Any Direct Fullfilment or Warehouse Authorized Standard Fullfilment Independent Business Owner may order products directly from the Product Selection Center or shop in a self-serve store environment. Value Based Shipping is used for delivery but flat fee of $8.20 is for all store orders.
Product Selection Center hours are: Tuesday through Friday: 8:30 am - 4:30 pm Saturday 12:30 pm - 5:30 pm Closed on Mondays

Performance Schedule

PV Performance Bonus
7500             25%
6000             23%
4000             21%
2500             18%
1500             15%
1000             12%
600               9%
300               6%
100               3%

PV/BV Ratio
The average PV/BV ratio for Amway products as of October 2012 is 2.9.

Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The average retail margin for this market is 33.9%.

Registration Pack Purchasing
Methods for registering Independent Business Owners with Amway:

On-line
Register on-line at the Amway Global site (www.amwayglobal.com) and follow the on-line prompts.

Printed Registration Pack
Amway printed Registration Pack (AD-2101Q, 5/15.00 United States dollars) gives you a paper alternative to registering Independent Business Owners on-line.

Registration forms and business information previously available only on the Amway Global Web site now are included in this printed version. The Registration Pack includes the Registration Form, Independent Business Ownership Plan and Amway Business Compendium. Product selection options are the same as those found in the Income Options section of the Amway site.

You can also register by phoning:
Amway Global Registration
Phone: 1-800-524-6588

Cost of Registration Pack

Registration Pack:
$15.00 U.S. Dollars

On-line Registration:
-Without products: $45.00 U.S. Dollars
- With products: $99.95 U.S. Dollars

Registering
Register with Amway on the web site with the following options:

On-line registration:
- Located at www.amwayglobal.com in the Office section of the site
- New person must have a referring Independent Business Owner number to register
- Complete an appropriate series of business/information questions
- Review the on-line Independent Business Owner Plan (SA-4400) and indicate that they understand and want to continue
- Complete registration form online and select their product choice/paper only
- New person receives a Registration number
- The registration form must be downloaded, signed and mailed to Amway Global within 30 days

Paper registration:
- Amway printed Registration Pack
- Includes all information to set up a new Amway business
- To order, go to the Product Index section of the Amway Global site; click S, select Sales Aids and scroll to AD-2101Q

You can also register by phoning or visiting the Puerto Rico Product Selection Center:
Amway Global Registration
Phone: 787-269-3620

Business Type
The business model used:

I = Independent Business Owner - Independent Business Owners build businesses that allow them to earn income based on the purchases made from Amway. Independent Business Owners also can take advantage of special business services, including Virtual Office, where they access detailed volume inquiries showing the invoices that make up total sales, organizational structure, address and email, personal profiles and numerous view options for efficient organizational information. Some Independent Business Owners qualify to access Business Profile reports that provide detailed and trending information about their businesses, such as product line movement and sponsoring activity. To launch a business powered by Quixtar, individuals must register with an existing Independent Business Owner.

C = Client - Clients pay no fee to shop from a large selection of high-quality products and learn more about what they need through expert advice on health, personal care, home maintenance and more. Products are shipped directly to their homes and are covered by a Customer Satisfaction Guarantee. All Clients must designate a referring Independent Business Owner before making purchases; if they do not know one, they will be referred by Quixtar to an Independent Business Owner in their area.

Establish a Second Business

International Sponsoring
International sponsoring is always an option and an excellent means of expanding your business while avoiding many of the costs and complexities associated with establishing a second business. Please note: For those markets where foreigners are able to establish a second business, they must be the international sponsor of their second business in another country.

Puerto Rico is a Commonwealth with the United States and as such, adheres to all United States immigration, customs and foreign travel visa requirements. However, an Independent Business Owner should investigate of any further tax or legal requirements that may exist in order to operate an independent business in Puerto Rico

As complex business and legal issues are involved, Independent Business Owners should always contact the affiliate and obtain the advice of an immigration and tax attorney for advice on specific circumstances before attempting to enter the United States or establish a second business.

All non-immigrants, unless otherwise authorized by the United States Immigration and Naturalization Office, will not be allowed to work in the United States unless exempt from visa requirements (Visa Waiver Pilot Program). Every foreign distributor seeking entry for temporary stay in the United States must first obtain the appropriate non-immigrant visa. Working without proper authorization is a violation of the non-immigrant's visa status and may subject the non-immigrant to deportation and other penalties under the law.

Business in the United States is regulated by federal, state, and local municipal government authorities. Each state has different regulations on business entities, registration, licensing, etc. There are several business options available for establishing a second business, each with its own legal requirements. The decision of which option an Independent Business Owner chooses would be driven by United States income tax issues and the individual’s plans for the business and its development.

Note: Since the United States and Canada fall under the North American Independent Business Ownership Plan, Canadian Independent Business Owners are not permitted to have a second business in the United States. Furthermore, Canadian Independent Business Owners must obtain all their AMWAY® Products, literature and sales aids from Amway Canada Limited. No United States items can be imported into Canada for use in conducting the business or for resale to customers.

Visa Requirements
If non-resident is not traveling to the United States:
- No visa requirements

If non-resident is traveling to the United States:
- Visa must allow you to operate an Amway business
- Student visas are not eligible
- Unless exempt from visa requirements, every foreign Independent Businesss Owner seeking entry for temporary stay in the United States must first obtain the appropriate non-immigrant visa
- Visa applications are generally available from the United States Consulate or Embassy office in the applicant’s home or resident country
- The applicant must present a valid passport and other required documents, depending on the type of visa requested

Ordering

Amway Global web site:
www.amwayglobal.com

Touch tone phone:
1-800-253-6500

Via your authorized upline

Fax:
787-269-3985

Modum:
Private label software program

Mail: (use an SA-2 Order Form)
Amway Corporation
Department 58C-2A
5101 Spaulding Plaza
Ada, MI 49301-9174

In person or by phoning the Puerto Rico Product Selection Center:
Phone: 787-269-3620

Payment Methods

- Credit Card (MasterCard/VISA/Discover)
- Bank Draft PIN number
- ATH (Local form of debit card) - in store shopping only
- Cash is not accepted at the Product Selection Center

Returns/Refunds

Registration Pack
Reasonable period of time for the refund/return of the Registration Pack if the Independent Business Owner/Member is not satisfied.

Products
Fill out a Returned Merchandise Authorization Form (SA-112) for the merchandise you are returning. Retain the last copy for your records and place the other copies in the box with the merchandise. Return the merchandise to appropriate address. Do not return the merchandise to the Service Center. You will receive your refund to your credit card (if original payment was placed by credit card) or a Business Volume Voucher.

Access Information

- On-line at www.amwayglobal.com
- Views: Independent Business Owner (password required), Member, Client and Visitor
- U.S. Business Information Services (BIS) –
- E-mail: member.support@amwayglobal.com

Receive Bonus Payment
Most Independent Business Owners receive payment of bonus directly from Amway. The bonus will be paid by a check sent in the mail to the address on file with Amway unless a direct bank deposit is established. Another option is for the Independent Business Owner organization to have the bonuses paid directly to the Platinum who is then responsible for bonus payments to their downline group.

For Direct Bank Account Deposits:
- Independent Business Owners must complete a bank authorization form (SA-1680) and supply Amway with their banking information
The SA-1680 is available electronically in the Office section of the site at www.amwayglobal.com
- Direct deposits are available at any North American financial institutions with checking, savings, money market or against any other account that the financial institution will allow transactions

Non Resident Information:
When receiving a bonus payment in the United States, a W8-BEN form must be filed with Amway. The W8-BEN form is a tax form that allows a foreign person to be exempt from tax withholdings in the United States as the income from their business activities as they are considered not effectively connected with the conducting business activities within the United States. Criteria for completing the W8-BEN:

- Limited time is spent in the United States (180 days or less annually)
- Not a United States citizen or resident alien
- Business is not effectively connected to a United States business
- Business activities are occurring outside of the United States

Complete the following steps to obtain a W8-BEN form:
- Go to www.irs.com site and download a W8-BEN tax form, provided you are eligible to submit this form
- Complete the form and mail it to:
Amway Corporation
Attention: Bonus Department
5101 Spaulding Plaza, Ada, MI 49301-9174

Renew

Cost:
Independent Business Owner
$32.00 U.S. Dollars

Timing:
September through December