03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 1 INTERNATIONAL TRADE FROM THE VIEWPOINT OF A MULTI-NATIONAL COMPANY

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 2 MISSION STATEMENT The ITR mission is to assure the success of the Robert Bosch businesses we serve by providing timely, accurate, and cost effective international trade services while ensuring compliance to all applicable government policies and laws.

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 3 Bosch World Wide Valid: 1/1/01

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 4 Bosch World Wide – Automotive Equipment

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 5 Bosch World Wide – Automotive Equipment

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 6 Bosch World Wide – Automotive Equipment

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 7 Bosch World Wide – Automotive Equipment

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 8 Bosch World Wide – Automotive Equipment

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 9 BOSCH CHARLESTON

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 10 BOSCH CHARLESTON

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 11 CLASSIFICATION HARMONIZED TARIFF SCHEDULE

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 12 GENERAL RULES OF INTERPRETATION (GRIs) 1.The table of contents, alphabetical index, and titles of sections, chapters and sub- chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions: 2.(a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. HARMONIZED TARIFF SCHEDULE

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 13 GENERAL RULES OF INTERPRETATION (GRIs) (continued) 3.When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sales, those headings are to be regarded as equally specific in relations to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4.Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. HARMONIZED TARIFF SCHEDULE

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 14 GENERAL RULES OF INTERPRETATION (GRIs) (continued) 5.In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein: (a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character. (b) Subject to the provisions of rule 5(a) above, packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use. 6.For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires. HARMONIZED TARIFF SCHEDULE

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 15 HTSUS

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 16 Classification according to US Customs Rules & Regulations for all imported & exported parts (Harmonized Tariff Schedule of the US) 1.Correct duty assessment 2.Correct documentation 3.Additional information for various government agencies: FAA (Federal Aviation Administration) FCC (Federal Communications Commission) FDA (Food & Drug Administration) IMO (Dangerous Goods Declaration) Ozone Depleting TSCA (Toxic Substance Control Act) MSDS HTS CLASSIFICATION

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 17 ADDITIONAL SUPPORT & INFORMATION NEEDED FOR COMPLIANCE  Sample desired to determine material content  Product line association made; engineering department contacted for technical information: essential character function of part where used  Additional information may also be needed from department purchasing unclassified part HTS CLASSIFICATION

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 18 SPECIAL PROGRAMS

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 19 GENERALIZED SYSTEM OF PREFERENCES GSP

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 20  Provides duty-free treatment for certain products originating from specifically identified countries known as Beneficiary Developing Countries (BDC). Brazil Czech Republic India Turkey GSP

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 21  To qualify for the duty free treatment a product must meet either of two criteria: Product must be wholly grown, produced, or manufactured in the BDC — or — At least 35% of the product's dutiable value, upon entering the United States, must be from costs directly attributable to the BDC.  On-site verification of Bosch affiliate’s assembly line & manufacturing process by US Bosch representative is required  Represents $300 to $600 thousand savings to Bosch per year GSP

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 22 AMERICAN GOODS RETURNED

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 23  Parts purchased or manufactured in US, sent overseas, & later returned to US Potenimeter (bought in US) for Chrysler Throttle Bodies, built in Germany Savings of $200,000 per calendar year in duty AMERICAN GOODS RETURNED

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 24 FOREIGN TRADE ZONE FTZ

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 25  Foreign products brought into the FTZ with no duty paid, then exported to a customer’s FTZ results in 0% duty for Bosch/customer  Foreign products brought into the FTZ with no duty paid, then entered into the commerce of the US results in applicable duty being paid by Bosch  Products manufactured in the FTZ may result in plus/minus duty FTZ

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 26 DRAWBACK

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 27  Allows for the refund of up to 99% of Customs duties and certain fees of goods imported and then exported from the US  Applies to both components and finished goods Scrap Obsolescence parts Quality rejects Raw materials  Represents $800,000 to $1 million savings to Bosch per year DRAWBACK

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 28 NORTH AMERICAN FREE TRADE AGREEMENT NAFTA

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 29  Agreement between US, Canada, and Mexico established on 1/1/94  Purpose - to eliminate trade barriers and facilitate the cross- border movement of goods and services among the three countries  Result - tariffs among these three countries will be eliminated on nearly all NAFTA qualified goods by 2003 NAFTA

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 30  NAFTA Certificate of Origin enables components and finished goods to be transshipped within the NAFTA territories (US, CA, and MX) at reduced or free duty rates  Represents significant monetary savings to Bosch and its customers  Represents $5 to $7 million savings to Bosch per year  Represents $65 to $70 million savings to Mexican customers and $13 to $15 million to Canadian customers per year NAFTA

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 31 AMERICAN AUTOMOBILE LABELING ACT AALA

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 32  Became effective 1/1/94  Administered by the National Highway Traffic Safety Administration  Requires a window sticker on new cars sold in US detailing content & origin of components  Represents an avoidance of monetary penalty for Bosch customers involved in the manufacture of new automobiles  Bosch is obliged by customer requirements & US law to obtain this information on an annual basis AALA

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 33 CORPORATE AVERAGE FUEL ECONOMY CAFE

03/31/03 © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. Department, i.e. ChW/CRI 34  Required under the Energy Policy and Conservation Act (EPCA) of 1975  Administered by the Environmental Protection Agency  Requires vehicle manufacturers to comply with the gas mileage, or fuel economy, standards set by the Department of Transportation  Used by the vehicle producer to calculate vehicle line foreign content for fuel economy averaging purposes  National Highway Traffic and Safety Administration (NHTSA) assesses penalties based on information supplied by EPA and to modify the standards CAFE

03/31/2003 | Internal © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. 35 EXPORTS