Leveraging QAD TMS to Mitigate Export Risks and Challenges* Tim Dennis – Solution Consultant, QAD

Leveraging QAD TMS to Mitigate Export Risks and Challenges* Safe Harbor Statement The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

Export Trade Compliance Importance Leveraging QAD TMS to Mitigate Export Risks and Challenges* Export Trade Compliance Importance The Effective Enterprise Reduces risk Reduces manual effort Reduces cost Complies with industry best practices

What is Export Trade Compliance? Leveraging QAD TMS to Mitigate Export Risks and Challenges* What is Export Trade Compliance? Denied / restricted party screening Domestic and International All parties to the transaction Product classification Schedule B, IntraStat, Taric HTS (HTSUS, HTSDE, HTSCA, etc, etc…) ECCN (ECCN-US, ECCN-EU) Document compliance Trade documents Commercial Invoice, SED, SLI Electronic customs filing

QAD TMS – More than just Shipping Leveraging QAD TMS to Mitigate Export Risks and Challenges* QAD TMS – More than just Shipping Transportation Management Global Trade Management Trade Compliance Package Exception Management Business Intelligence Base

QAD TMS – Export Trade Compliance Leveraging QAD TMS to Mitigate Export Risks and Challenges* QAD TMS – Export Trade Compliance Global Trade Management Global Trade Management Automated trade document production Electronic customs filing Trade Compliance Denied / restricted party screening Export license determination and management Trade Compliance

Why is Export Trade Compliance Important? Leveraging QAD TMS to Mitigate Export Risks and Challenges* Why is Export Trade Compliance Important? Shipping to a denied / restricted party Fines Incarceration Shipment problems “Stuck” in customs Incorrect / missing paperwork Invalid commodity codes Customs You don’t want them to know you

Risk Reduction Shipping to a denied / restricted party Shipment delays Leveraging QAD TMS to Mitigate Export Risks and Challenges* Risk Reduction Shipping to a denied / restricted party Fines (up to $250K / violation or 2x value) Incarceration Shipment delays Incorrect / missing paperwork Invalid commodity codes

Reduced Manual Effort Manual key entry Time consuming Human errors Leveraging QAD TMS to Mitigate Export Risks and Challenges* Reduced Manual Effort Manual key entry Time consuming Human errors Missing paperwork

US Export Customs Classification Leveraging QAD TMS to Mitigate Export Risks and Challenges* US Export Customs Classification HTS codes (import and export) International Trade Commission 6 Primary digits + 2 to 4 additional digits HTSUS (~17.5K 10-digit codes) HTSDE (Germany) HTSCA (Canada) US Schedule B (export only) US Census Bureau 10 digits (~9K 10-digit codes) Used to determine AES filing

ECCN License Determination Leveraging QAD TMS to Mitigate Export Risks and Challenges* ECCN License Determination Do I need an ECCN? Is this product a dual use item? Commodity Classification List Categories 0 Nuclear and miscellaneous 1 Materials, chemicals, microorganisms and toxins 2 Electronics 3 Computers 4 Telecommunications 5 Information security 6 Sensors and lasers 7 Navigation and avionics 8 Marine 9 Aerospace and propulsion

Compliance Best Practices Leveraging QAD TMS to Mitigate Export Risks and Challenges* Compliance Best Practices Partner creation Order or PO creation Shipment execution

Leveraging QAD TMS to Mitigate Export Risks and Challenges* Inside QAD TMS

Demo Ad Hoc DPL/EC compliance check Batch data scrub Leveraging QAD TMS to Mitigate Export Risks and Challenges* Demo Ad Hoc DPL/EC compliance check Batch data scrub Transactional check Automated document generation Electronic customs filing (AES)

Leveraging QAD TMS to Mitigate Export Risks and Challenges* Demo

Leveraging QAD TMS to Mitigate Export Risks and Challenges* Summary

In this Session, We Have Covered… Leveraging QAD TMS to Mitigate Export Risks and Challenges* In this Session, We Have Covered… What is export trade compliance? Why is export trade compliance important? Industry best practices for compliance QAD TMS export trade compliance capabilities How does this benefit us?

Questions & Answers Tim Dennis: t9d@qad.com Leveraging QAD TMS to Mitigate Export Risks and Challenges* Questions & Answers Tim Dennis: t9d@qad.com

Next Steps While at Explore Leveraging QAD TMS to Mitigate Export Risks and Challenges* Next Steps While at Explore Stop by the QAD Solutions Expo Talk to a QAD TMS Solution Expert Grab a white paper

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