Oracle Global Trade Management An efficient integrated and

Oracle Global Trade Management An efficient, integrated and comprehensive Global Trade Compliance Solution for Emerson

Oracle Global Trade Management Project Overview Emerson is doing a pilot Implementation to lay the foundation of Oracle Global Trade Management (GTM) software to: Ø Support logistics operations Ø To enable future adoption of advanced Trade Management functions Ø Implement Item Classification and Restricted Party Screening functions 2

GTM Support of Ocean Program • Single source for HTS Classification and Country of Origin data required for ISF (10+2) filing requirements • Global Item Master – Unique identifier for all parts across all business units – created from integrated sales/purchase orders or via bulk uploads • Restricted Party and Embargoed Country Screening for all parties to Transportation Orders 3

Scope: l l l l l Create Trade Items automatically in GTM based on OTM Order Transactions Create Parties and Locations automatically in GTM based on OTM Order Transactions Segregate Trade Data View and Functions based on business units or their ERP Maintain latest Restricted Party List and Classification Codes by downloading from Customs Info (Descartes) Screen Customers, Suppliers and other parties on integrated transactions, thru User Interface or Bulk Upload Flag and Notify for Items needing classification Provide Workbench to review Restricted Party Screening Results Capture Trade related data associated to Items like Item Classification and Country of Origin Publish Item Classification information to Brokers (Up to 2 formats) Ability to load Item Master and Item Classification information from a spreadsheet into the system Rollout Functions for Two Business units 4

Following Functions are Not in Scope for Implementation • • Document Determination and Generation License Determination Integration with ERP Systems AES Filing and Customs Filings Screening in Multiple Languages Oracle Transportation Management Oracle Global Trade Intelligence for BI Reporting Placing Holds on Transactions Items On Development Roadmap for Future Implementation 5

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Project Resources 7

Project Timeline **ETC and TOD are participating in the pilot phase of the project. 8

Emerson GTM Configuration OTM Emerson ERP Systems Purchase Orders Sales Orders Emerson Transaction Hub (ETH) Transportation Planning and Execution Rate Inquiry Transportation Reporting Key Entities OTM: Item, Location, Contact GTM: Trade Item, Trade Location, Trade Party GTM BU Configuration & Control of Compliance Screening Rules l l l Product Classification l Item Master file maintenance of HTS and COO l Periodic Master File screening for missing HTS and COO Compliance Rule Screening l Embargo and Sanction Screening Restricted Party Screening l PO/SO transaction RPL screening when BU sends to ETH l PO/SO transaction RPL screening at OTM order release (or OTM order change) l Periodic Master File RPL screening l Adhoc screening by BU customer service Trade Transaction & Trade Data Management Workbenches and Monitors l GTM workbenches provide work lists for users (restricted party matches, items missing classification) l Business Monitors (interactive reporting) Product Classification Trade Transaction Compliance Rule Screening Trade Data Management Restricted Party Screening Workbenches and Monitors 9 Restricted Party Lists Classification Rules and Data Classification Data (CSV or XML format) Customs. Info Brokers

Trade Data Content • Customs Info integrates with GTM to provide Product Classifications and Restricted Party Lists • Data can include: HTS Classifications from various countries, ECCN Classifications, various Restricted Party List for several agencies • GTM allows for scheduling downloads of data on a regular basis • Plan is to download updates nightly • Customs Info uses MK Data to provide the same information that Emerson BUs are currently uses for screening 10

Domain Structure EMR Domain Public Domain (Default) • • • Descartes Restricted Party List Descartes Product Classification Lookup Internal Corporate RP List • • • Location (Operational) Order Release (Manual) Shipments (Buy) OTM Functions Invoices Peer Domain Relation ETC Domain • • • Items (BU specific from ETH) Item Classifications Locations(BU Specific from ETH) Trade Transactions GTM Functions Order Base Read and Write Access Shippers have restricted access based on VPD profiles Note: EMR information cannot be seen in the BU domains. TOD Domain • • • Items (BU specific from ETH) Item Classifications Locations(BU Specific from ETH) Trade Transactions GTM Functions Order Base 11 TBD Domain • • • Items (BU specific from ETH) Item Classifications Locations(BU Specific from ETH) Trade Transactions GTM Functions Order Base

Data Conversion • All active items will be converted into the BU Domain • The Emerson Grey List will be converted into the Public Domain • User Roles and User Menus will be created based on compliance roles • GTM_MGMT (for use by BU Compliance Management – includes rule setup) • GTM_TEAM (for use by BU Compliance Personnel) • GTM_ADHOC (for use by BU Customer Service) 12

GTM Pilot Implementation Screening Phases • Initial Transaction Screening: • Comprehensive master file party and location screening will be done monthly • Screen all purchase orders and sales order when the order base is created • Restricted Party – Ship From and Ship To involved parties • Sanction/Embargo - Ship From and Ship To • Conduct Product Classification Lookup • Screen all SCO order releases at the time of shipment creation • Restricted Party - Ship From and Ship To involved parties • Sanction/Embargo - Ship From and Ship To involved parties • Conduct Product Classification Lookup • Updated Transaction Screening: • Order Bases and Order Releases will be screened upon the following changes: • Ship From, Ship To, Items and Quantity 13

Trade Management Processes Trade Master Data Trade Items Product Classification Lookup Trade Transaction Trade Location Restricted Party Screening Embargo Screening Product Classification Lookup Process Legend: Automated Process Compliance Group Activity Review RPL Matches Restricted Party Screening Product Classification Assignment Product Classification Validation Monitors, Workbenches and Adhoc Screening 14 Review items with invalid or no classification Restricted Party Screening & Sanction/Embargo Territory Adhoc Screening

Trade Item Management • Multiple Item Classification codes can be assigned to an item • HTS • ECCN • Schedule B • Customs description will be stored against the item • Country of Origin (COO) will be stored against the item • If a BU links the COO to an item by supplier and by country the COO will be stored in this manner • If a BU does not link the COO to an item by supplier and by country then DEFAULT_SUPPLIER will be used to store the COO • Item Classifications are constantly monitored for validity • Invalid classification codes are identified via the classification status 15

Trade Item Engineering Description Customs Description 16

Trade Party and Location Management • GTM has the ability to screen all parties against a published Restricted Party List • Restricted Party data is updated on a frequent basis in order to provide constant due diligence • Automatic Restricted Party Screening significantly reduces risk when dealing with new and current suppliers and customers • There are three ways to screen parties: • • • Automatically upon creation Frequently based on an set-interval On-Demand 17

Restricted Party Results 18

Trade Transaction Management • Product Classification Lookup • Ensure the required classification is captured on the transaction • Restricted Party Screening • Screen all parties and locations on a transaction upon creation • Sanction/Embargo Screening • Identify transaction which involve a party from an embargoed country 19

GTM Transaction Workbench 20

Adhoc Process in GTM • Restricted Party Screening • Allows the user to screen suppliers and customers prior to conducting business • Sanction/Embargo Territory Screening • • Allows the use to screening a particular country to determine if it is a Sanctioned or Embargo country Screening can be done prior to creating a purchase order and/or sales order 21

Adhoc Restricted Party Screening 22

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