SCO Compliance Oracle Global Trade Management A CostEffective

SCO Compliance Oracle Global Trade Management A Cost-Effective Restricted Party Screening Solution June 2016 1

Transaction & Restricted Party Screening is Key to an Effective Trade Compliance Program Diversion Risk Anti-Boycott End. Destination Item Classification & Licensing Restricted Party End-Use Transaction & Restricted Party Screening Affects Multiple Departments. Understand Your Responsibility. 2

Element 2: Restricted Party Screening U. S. Entity List Japan Proliferation List UN Al-Qaida Concern List European Union Sanctions List More than 56 Lists Worldwide Contain Restrictions on Dealing with Certain Parties. We Must Screen Our Transactions Against These Lists. 3

Parties to be Screened Customer/End-User Suppliers Service Providers Department of Commerce Broker/Forwarder Distributor/3 rd Party Intermediary Maritime Vessels A Complete List Of Parties Subject To Screening Can Be Found In The Emerson Screening Guidelines 4

Restricted Party List Screening Emerson Screening Standards Users That Should Perform Screening: • ITC Leader/Manager • Business Unit ITC Team • Global/Regional Compliance Leader (where applicable) • Business Group Representative (where applicable) • ITCG Liaison • ITC Gatekeepers who have been trained and are involved in transactions where RPL screening may take place. These include Engineering, Procurement/Purchasing, Logistics/Shipping/Receiving, Sales/Marketing/Order Processing, IT, Finance, HR, Facilities/Security Emerson’s Restricted Party List Screening Standards 5

SCO Compliance A Cost-Effective Trade Compliance Solution SCO Compliance is a common platform for Trade Compliance. – Implemented on Oracle Global Trade Management (GTM) – Integrated with Emerson’s Supply Chain Optimization (SCO) System on Oracle Transportation Management (OTM) Oracle Transportation Management Oracle Global Trade Management GTM is a Best-Of-Breed Trade Compliance Solution 6

SCO Compliance Implemented on Oracle Global Trade Management (GTM) Initial Services Available Benefits 1) Restricted Party Screening Web-based portal for real-time • Direct replacement for MK Data screening – Adhoc screening of individual parties • Unlimited screening, no transactional costs • Leverages Oracle ERP user licenses Automated periodic screening • No software to be implemented by business unit – Automated for a specified list of parties, • Improved Screening Function (immediate with automatic rescreening results, “match percentages”, audit trail) 2) Classification Single system of record for – Data Management management of item • Leverages Oracle ERP user licenses classification information • No software to be implemented or supported by business unit – Broker Feed Automated broker data feed • Improved Classification Function • Automated data feed provides Customs Brokers with consistent and efficient weekly updates Business Units Can Select Either or Both of These SCO Compliance Services 77

SCO Compliance Restricted Party Screening Support Restricted Party Screening Content Includes: – Supports latest Restricted Party Lists from Customs Info. Lists are updated daily. – Supports Sanction/Embargo Country screening as identified by ITCG. – Incorporates Emerson Grey List as part of Restricted Party Screening. SCO Compliance Screening Capabilities Include: Adhoc Screening – Web-based portal for real-time screening of individual parties (i. e. new customers, new suppliers, visitors). Automated Screening - Automated periodic screening for a specified list of parties (i. e. customers, suppliers, employees) via csv upload. Parties are automatically rescreened monthly. Restricted Party Screening Can Replace MK Data Screening 8

SCO Compliance Adhoc Restricted Party Screening with MK Data (Current) Deficiencies: • Match algorithm and match rule unknown • Limited results – no match percentage or “close” hits • No audit trail of screenings Adhoc Screening with MK Data 9

SCO Compliance Adhoc Restricted Party Screening with SCO Compliance Adhoc Screening With SCO Compliance 10

SCO Compliance Automated Screening replaces both MK Data’s One-Time Batch Screening and Dynamic Screening (DSL) functions. • Uses csv file uploaded from user’s desktop. • Automatic monthly rescreening. • Immediate results. Sample Input Files: MK Data Batch Screening Example (“before”): SCO Compliance Automated Screening Example (“after”): Automated Screening Example Using SCO Compliance 11

SCO Compliance A Cost-Effective Restricted Party Screening Solution • Value Proposition: – Cost Savings • Eliminates all MK Data per transaction screening fees • Unlimited screening for a flat fee to Emerson. (NO COST to business units) • System access requires an Oracle ERP user license – Minimal Training / Easy To Implement • Screening is very similar to MK Data • Software is already implemented and supported as part of the Emerson SCO Program – Improved Screening Function • • All results include “match percentages” Audit trail of adhoc screenings Automated periodic rescreening of bulk screening list Ability for screening tool to “learn” for future screenings (when potential parties are cleared as valid) SCO Compliance Screening Is Available Today And Being Used By Emerson Business Units 12

SCO Compliance A Cost-Effective Restricted Party Screening Solution • Next Steps: – Finalize User List • Review current MK Data user list • Identify users that should be performing screening – Schedule/Attend Training Session and Begin Adhoc Screening Let’s Get Started!!! SCO Compliance Screening Is Available Today And Being Used By Emerson Business Units 13