The company's shipments of newly-produced branded and private-label footwear from its production facilities to its regional distribution centers are subject to:

a. export fees equal to 7.5% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 10% on cross-region shipments.

b. prevailing per pair shipping/freight charges, plus any applicable import tariffs and exchange rate adjustments on pairs shipped from a production facility in one region to distribution center/warehouse in a different geographic region.

c. 2 million-pair import quotas on all shipments from foreign production facilities to distribution centers/warehouses in Europe-Africa.

d. shipping charges of $0.50 per pair on all pairs shipped to distribution centers in the same region as the production facility and $1.00 on all pairs shipped from production facilities in one region to distribution centers/warehouses in another geographic region.

e. import tariffs of $3 per pair, shipping fees of $2.00 per pair, and exchange rate shifts of as high as 10% on cross-region shipments.