Training on Export Control and Customs

Training on Export Control and Customs. Restricted.

Agenda. Export Control Introduction Customs Introduction Concept of Siemens ECC Internal Control Program Implementation within company Measures for Export Control Web-based Training – ECC (For new staff) Contact.

Export Control Introduction. Export Control is based on several principles : Legal & Internal Regulation.

Export Control Introduction. There are different legal basics for Export Control Issues: EG-VO, AWG, AWV, KWKG, US-EAA, US-EAR.

Export Control Introduction. Embargo countries Cuba ( 古巴 ) Iran ( 伊朗 ) Libya ( 利比亞 ) North Korea ( 北韓 ) Sudan / South Sudan ( 蘇丹 / 南蘇丹 ) Syria ( 敘利亞 ) Russia / Ukraine ( 俄羅斯 / 烏克蘭 ) Venezuela ( 委內瑞拉 ) Automatic result in AWV=YY (except Libya, Venzuela , Ukraine) and order block Please contact ECC for order release.

Customs Introduction. The lasting, unrestricted and legally compliant implementation of all relevant customs regulations in order to avoid fines, penalties or administrative sanctions for Siemens as well as damage to its reputation and business has topmost priority. This includes the full implementation of appropriate Siemens-internal regulations as well as the systematic integration of import and export processes in predefined, standardized IT corporate solutions in all business units. For examples: Classification of item, such as HS code/COO Imports and Exports restriction, clearance and declaration Customs clauses used in business contracts Following national customs regulations when traveling with goods Customs information requirement on delivery papers, such as invoice and delivery note Implementation of unique consignment reference number (UCR) Implementation of Customs Security Program (HKAEO).

Concept of Siemens ECC Internal Control Program. https://cms-sinet1.siemens.com/wll/0113/en/Pages/ECC-Hong-Kong.aspx.

Concept of Siemens ECC Internal Control Program. https://cms-sinet1.siemens.com/wll/0113/en/Documents/ECC/ICP/SLHK%20ICP%20-%20Export%20Control.pdf.

Concept of Siemens ECC Internal Control Program. The Two Sides of Export Control.

Concept of Siemens ECC Internal Control Program. Three different kinds of Export Control coding.

Concept of Siemens ECC Internal Control Program. Several “items” are subject to Export Control.

Concept of Siemens ECC Internal Control Program. Traveling with goods In case that a hand carry of the Professional equipment, Measuring equipment, etc as part of a business trip is necessary, the following actions pertaining to export control are required: Establish the goods-specific codes (AL and ECCN) DAMEX-P check if AL and / or ECCN are not “N” Apply for an individual export license if appropriate (contact responsible Export Control) Generally no restrictions exist with regard to export control for traveling with Notebooks, PDAs, Blackberry, Mobile Phones, etc containing encryption-software / technology, if the goods are being carried for personal use (=private and professional use) only..

Concept of Siemens ECC Internal Control Program. Order specific Export Control m easures : Based on the anti-terrorism law we have the Sanctioned Parties List Screening on partners: All business partners (nationals and internationals) Customers / buyers Recipient of goods / items / services End customer / ultimate end user Bill-to party / Ship-to party Suppliers Other partners who received funds / other economic resources from Siemens entities, such as (e.g. also banks, freight forwarders commissioned by Siemens entities, consortium partner) All persons to be employed Siemens employees who receive payments Quick guide (in pdf ): Partner Checks in Sales Process - Export Control KYC (Know Your Customer) https://findit.compliance.siemens.com/content/10000101/Compliance/LC_CO/LC_CO_EX_GOV/findIT_LC_CO_EX_GOV_5978.pdf.

Implementation within the company. Every Employee is personally responsible!.

Implementation within the company. Consequence of non-compliance US Law: Unlimited fine and 20 years’ imprisonment European Law: Unlimited fine and 15 years’ imprisonment HKSAR Ordinance: Unlimited fine and 7 years’ imprisonment Siemens: Sanctions on responsible employee(s).

Implementation within the company. Export Control starts at Purchasing and ends up with Shipping ( Including Finance & HR).

Measures for Export Control. Check for licensing Control in HKSAR (Based on AL/ECCN code) Check from the website of the HK Trade & Industry Department Strategic Commodities Control List: https://www.stc.tid.gov.hk/english/checkprod/sc_control.html Check with ECC Department Check in DAMEX-P (Product check).

Measures for Export Control. 2. DAMEX – DA ta M achine EX port Control DAMEX-E check (End use check) It scans the Sanctioned Parties List, DPL, SDN, early warning indications, regulations of German, European and US-authorities for checking end use and final destination for export A tool to determine AWV Code for order: AWV:NN - Order is not subject to any restrictions concerning end use and end user. AWV:MM - Certain restrictions, such as military apply in context of using general license or license exceptions pertaining the product-related export control check at SLHK. AWV:YY – Stop order processing, input DAMEX-E report to GLORIA and contact ECC..

Measures for Export Control. 2. DAMEX – DA ta M achine EX port Control.

Measures for Export Control. 2. DAMEX – DA ta M achine EX port Control.

Measures for Export Control. 2.1: DAMEX-E Customer Check Country specific warnings – China or Hong Kong Please mark applicable if any involved partners is for military end use / listed as military end user that are active in both civil and military sectors. **Based on US Department of Defense (DoD) Military list for Chinese companies **Based on US Bureau of Industry and Security (BIS) EAR 744 Supplement No. 7 - 'Military End User' (MEU) List.

Measures for Export Control. Questions to answer Review all questions and tick situation applicable to involved parties Tick the box below to confirm the info is answered based on the best knowledge (review by salesperson, who is the most familiar with order, end use and involved partners.).

Measures for Export Control. 2.2: DAMEX-E Check Archive ( Mandatory since Jan 2019 ) After determination of AWV-Code (NN, YY, …) in DAMEX-E, make sure to press either button below DAMEX-E check will be then automatically signed and stored in the archive system.

Measures for Export Control. 3. Export Control and Customs Clauses in business documents - Details please refer to ECC Model Clauses for Sales Contracts.

Measures for Export Control. - Details please refer to ECC Model Clauses for Purchasing Contracts.

Measures for Export Control - Sample of Customer Checking.

Measures for Export Control - Sample of Vendor Checking.

Web-based Training – ECC (For new staff). Link: https://training.siemens.com/lms/participant/assigned/training.do This online training serves to raise awareness and strengthen understanding of Export Control and Customs (ECC) regulations within Siemens. With this course you will gain a basic understanding and know where to find help to answer questions regarding this topic. New staff will receive WBT email after on board Completion deadline: after 2.5 months Please ensure to complete the WBT on or before the DEADLINE.

Contacts. ECC Team in Hong Kong. Legal Entity Contact Email address Tel Siemens Limited Janet O Janet.o@siemens.com +852 2583 3270 Siemens Limited Sandra Ng Sandra.ng@siemens.com +852 2870 7579.

Questions.

Thank You.