Export Control Practice

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1 1 Export Control Practice March 8, 2011 Hitachi Consumer Products (Thailand), Ltd.(HCPT) Sales Dept. Tassanee Pasuthasathit 2 Hitachi Consumer Products (Thailand), Ltd. CONTRIBUTE TO SOCIETY THROUGH OUR PRODUCTS, BASED ON THE SPIRIT OF FAIRNESS, SINCERITY AND ENVIRONMENTAL HARMONY

2 3 Products in HCPT Products in HCPT Refrigerator, Washing Machine, Vacuum Cleaner, Rice Cooker, Shower Heater, Water Pump, Motor, Fan <Automatic Washing Machine> Intelligent Spin <Vacuum Cleaner> High Power Pail Can Type High Power Cyclonic Cleaner <Vacuum Cleaner> <Refrigerator> <Rice Cooker> Mi-com series Safety Temperature Control <Water Pump> <Shower Heater> Powerful & High Efficient SIDE BY SIDE 4 Profile Established (U.E.I. Hitachi Co., Ltd.) Renamed to HCPT 1997 Operation started 1971 Electric Fan at Kabinburi Factory 1972 TV 1974 CTV 1980 Refrigerator 1984 Mi-com Rice Cooker 1988 Washing Machine 1999 Shower Heater 2001 Vacuum Cleaner Establishment 1 st November 1970 HQ of HCPT Kabinburi Industrial Zone (KIZ), Prachinburi, Thailand

3 5 History 1970 Establishment of the Company 1971 Manufacturing start of Desk Fan 1972 Beginning assembly of B/W TV 1974 Manufacturing CTV 1977 Manufacturing Induction Motors 1980 Manufacturing Refrigerators 1981 Renaming the company to Hitachi Consumer Products (Thailand), Ltd Manufacturing Home Water Pump 1983 Manufacturing Air Conditioners 1984 Manufacturing Rice Cookers 1988 Manufacturing Washing Machines 1989 Establishment of an affiliated company, Hitachi Industrial Technology (Thailand) 1990 Receipt of JIS Certificate 1994 Manufacturing small motors 1995 Registered capital increased 1997 Starting manufacturing in Kabinburi factory 1998 Receiving ISO 9002 Certificate 1999 Receiving ISO Certificate Manufacturing Shower Heaters 2000 Registered capital increased Manufacturing Bread Makers 2001 Manufacturing Induction Heater Cookers Registered capital increased Manufacturing Vacuum Cleaners 2003 Manufacturing Pump Motors 2004 Shut down of Samutprakarn factory 2006 Withdrawal of CTV business Registered capital increased 2010 Celebration of 40 th anniversary of HCPT 6 Location of Kabinburi Factory 1 ~200 KM from BKK (~ 2-3 Hrs) HCPT KIZ HST HCPT

4 7 Location of Kabinburi Factory 2 HCTL HCPT HST KIZ Cambodia HCPT Service HTET 8 Bird-eye View KIZ FACTORY 1 Washing Machine Plant Small Product Appliance Plant Address 610/1 Moo 9 Tambol Nongki, Amphur Kabinburi, Prachinburi 25110, Thailand KIZ FACTORY 2 Refrigerator Plant

5 9 Relating Act of the Export Control in Thailand 1. Export and Import : The Export Control of Military Weapons and War Material Act B.E : The Export and Import Act B.E Chemical Weapons Convention (C.W.C.) : Hazardous Substances Act B.E The Customs : The Customs Act B.E * The Ministry of Commerce is under process of - Adjusting of Domestic Act related to the nonproliferation based on the International regimes - Reviewing of the Restriction List 10 HCPT Export Control Regulation 1996/9 HCPT Regulations Concerning Security and Export Control 2004/10 Export Control Compliance Program by the Catch All Concept 2008/4 Export Administration Regulations (English version) 2009/11 Export Administration Regulations (Thai version)

6 11 Export Control in HCPT Basic Policy To conduct the export control based on the Thai Law relating to the export control and HCPT is one of the overseas companies of Hitachi, Ltd.,Japan To obey the following regulations as much as possible 1) Foreign Exchange and Foreign Trade Act in Japan 2) Foreign Act, regulations including Export Administration Regulation in U.S.A. (EAR) 12 Current Sales Channel for Export - Special controlled countries are included (Iran, Iraq, Syria, Sudan) - Area B countries are also included (Israel, India, Jordan, China, Pakistan, Libya, Lebanon) * Country classification is defined by Hitachi AP

7 13 List Control & Catch-All Control List Control Design Dept. HCPT Products do not fall under the list items Product Classification Basically Tochigi Works and Taga Works are developing and designing products which HCPT is producing. Same result of Parameter sheet in Japan. Check with Thailand Law and Japanese Law and EAR In case of procuring of material and parts by HCPT, or improving the design of products in HCPT, Design Dept. recheck and issue the classification sheet. 14 Product Classification

8 15 List Control & Catch-All Control Catch-All Control Sales Dept. Conduct the screening 1. Customer Screening 2. Transaction Screening Confirmation of the customer and the usage for the product are important. (Catch all is getting more important.) 16 Catch-All Procedure Catch-All is done by Hitachi AP Head Office because of our sales channel. & HCPT has to confirm its contents before the business. Check Head Office s Export Control HP White Goods / Catch-All Control Table

9 17 Export Control Procedure EXPORT CONTROL CHART FOR CATCH ALL SHEET SCREENING A P S ales d ep artm en t (S /S D ep t) D e s ig n Dep t P ro d u c tio n C u s tom e r R e quire m e n t C us tome r R e quire m e nt Current CU S TO M ER = C urrent / N E W N E W N E W C US T OM E R = C urrent / NE W De s ig n P roc e s s H TR C u rre nt P l an n in g P ro c e s s In form to S /S Inves tigat e Credit, Export control R e que st cre dit inves tigation P R ODU C T N E W / C urre nt N E W C u rre nt NO IN VE ST IG AT E R E S UL T = Y ES ( pa ss) / Y ES O rde r P ro c e s s R E J E C T TH IS R E Q UIR E M E NT In form inv es tig ate res ult, c ust om er c ode to S / S re ce i ve co mpl e te re s ul t da ta? inv e stiga te Res u lt, Cus tom er code NO YES Input c ustom e r c o de into com pute r s ys te m a nd inform cus to m e r re qu ire m e nt to D e sign Dept a nd pro duc tion dep t by e-ma il F ollow da ta with A P for re gis te r ne w c u stom e r O rd e r P ro c e s s 18 When is the export control required? 1. Direct / indirect export of the products / technology 2. In case of any possibility to export to abroad after domestic delivery 3. Export of equipment and mold, etc. 4. Assets disposal 5. Supply of products / technology under nocommercial base 6. Business trip, Lecture in abroad, Contribution to abroad 7. Factory visit of overseas customers and acceptance of overseas technical trainees

10 19 Difficulties and Future Vision Difficulties 1) In Thailand, there is no law similar to Foreign Trade Act of Japan. Local staff have to understand the reason why HCPT has to conduct export control based on the regulations in Japan. 2) The consciousness of the export control to the service parts is weak. Future Vision To educate the Thai persons and let them operate the export control duties by themselves 20 Thank you very much. ขอบค ณค ะ

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