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Laguna Auto-Parts Manufacturing Corporation

LAMCOR

for a greener tomorrow

SECURITY EXPORT CONTROL
Bernadette B. Alitagtag
Sr. Specialist – Corporate Export Control & Manager, Customer Service

Joint Industry Outreach on Strategic Trade Management
March 15, 2012 Dusit Thani Hotel Manila A l C Ayala Center, t Makati M k ti City Cit
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Laguna Auto-Parts Manufacturing Corporation

LAMCOR

for a greener tomorrow

:: Outline of Presentation :: 1. C 1 Company B Background k d 2. Background of Export Control in LAMCOR 3. Internal Compliance Program (ICP) 3 1 Objecti 3.1 Objectives es Defined 3.2 Philippine Laws Related to Export Control 3.3 Organization for Export Control 3 4 Procedure (Export Control Flow) 3.4 4. Other Activities in the ICP 4.1 Transaction Screening 4 2 Order Control 4.2 4.3 Export and Sales Control 4.4 Education and Training 4.5 Formation of Core Team 5. Support from Mitsubishi Electric 6. Corporate Responsibility 6.1 Compliance p to Other Philippine pp Laws 6.2 Certificates and Awards 6.3 Philanthropic Activities
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Santa Rosa City ▪ 35km south of Manila ▪ 200 operating companies inside Laguna Technopark  Manufacturer of automotive parts  PEZA-registered company  No. Company Background :: Laguna Auto-Parts Manufacturing CORporation (LAMCOR)  Subsidiary of MITSUBISHI ELECTRIC CORPORATION of Japan  Established in August of 1991  Located at Laguna Technopark Technopark.811 as of end of Dec.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 1. of employees .1. Don Jose Jose. 2011 3 .

Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow (Location) Manila Airport 35Km LAMCOR 4 .

000 0 2004 2005 2006 2007 Total 2008 2009 2010 2011* 2012* Domestic Export 5 .000.000 60. Company Background ::  Sales Performance 2004 ~ 2012 120.000 40.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 1.000.000.000 80.000.000 20.000.000 Amount in USD 100.000.

Company Background :: Main Products STATOR of ALTERNATOR (electricity ( l t i it generator t of f automobile) STATOR 6.0 million pcs / year (FY 2012) 167mm ALTERNATOR 6 .Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 1.

Company Background :: Main Products Giant Gi t Magneto M t Resistance R i t (engine rotation sensor) 3.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 1.0 million pcs / year (FY 2012) Length – 60mm 7 .

 In 2003. 1997 th the 1 1st t Internal t l Compliance li Program (ICP) was formulated for LAMCOR by Mitsubishi Electric. our ICP formed part of our Quality System which we regularly update and maintain.  I In 1997. verifications and audits were conducted by Mitsubishi Electric on our implementation of the ICP.  LAMCOR committed to comply with all domestic export laws and implement internal export control. 8 .  Since then.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 2. Background of Export Control in LAMCOR ::  Export Control was introduced by Mitsubishi Electric in LAMCOR in 1996.

9 . Internal Compliance Program (ICP) :: 3.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 3. Defines our Objectives for Export Control as follows: To comply with the laws and regulations established as a means to contribute to the preservation of international peace and security. being our parent company and a valued customer.1 Objectives :: 1. To comply with the requirements of Mitsubishi Electric. y To implement appropriate controls over export or domestic transactions should the p products or technologies g be used in relation to weapons of mass destruction or conventional arms.

Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 3.1 *RA 6969 – An Act to Control Toxic Substances and Hazardous and Nuclear Wastes. among others: 2. Providing Penalties for Violations Thereof.2 *PD 930 – Promulgation of Rules and Regulations Further p y g Export p Procedures and Documentation Simplifying (EO 1016 – Revised list of products that are prohibited and regulated for exports) 10 . 2. and for other purposes. Internal Compliance Program :: Philippine Laws related to Export Control :: 2 Enumerates the laws we have to know and comply with which includes 2.

and for their Purposes * These are just examples of laws we requested our corporate lawyer to provide to us We are eagerly awaiting for the pending bills in the Senate to be passed us. Radiological and Nuclear Weapons…” and “An Act to Prevent the Proliferation of Weapons of Mass Destruction…” 11 . into law which are “An Act to Prevent the Proliferation of Chemical.4 *EO EO 522 – Prescribing Rules and Regulations for the control and Supervision of the Importation. Sale and Possession of Chemicals Used as Ingredients in the Manufacture of Explosives.3 *EO 39 – Designating the Anti-Terrorism Council as the Philippine National Authority on the Chemical Weapons Convention (CWC) and Other Disarmament Laws of the Philippines 2.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 3. Biological.2 Philippine pp Laws Related to Export p Control :: 2. Internal Compliance Program :: 3.

Internal Compliance Program :: 3.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 3.2 Organization for Export Control :: 3. Identifies Responsibility/Authority President (Overall In-charge of Export Control) Export Control Administrator (ECA) (Implements the Corporate Export Control) Administration •Security •Human Resources •Training •Consumable Storage Finance / MIS •Import/Export •MIS •Accounting Support Group •Sales •Planning •Purchasing •Warehouse •Delivery •Customer Service Production •Manufacturing •Packaging Engineering & Maintenance •Engineering •Maintenance •Facilities •Capital Equipment Quality Assurance/ Qua ty Quality System •QC (per line) •Incoming Quality •Dock Audit •Calibration •ISO/TS/EMS 12 .

Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 3. Internal Compliance Program :: 3. 13 . Defines the Procedure we follow for each and every transaction of our operations (Export Control Flow shown on next page).4 3 4 Procedure P d :: 4.

Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 3. Internal Compliance Program Repeat Orders Other Requirements For New Orders 1st Screening  Classification of products or technologies  Destination  Customer  End-Use  Transaction Conditions • Brief Checklist • List of Product Matrix • Destination List • Denied Persons List • Customer Screening Form • Transaction Screening Form • Team Mfg Feasibility Commitment • Follow Procedure on C t t Review Contract R i (B (Both th f for New Orders and Repeat Orders) • Consult as necessary Transaction 2nd Screening / Manufacturing Feasibility / Product Development Contract Review Decision on Order Acceptance 14 .4 Export Control Flow :: Inquiries / New Orders 3.

Record Keeping Record Keeping 15 .Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 3.4 Export Control Flow :: New Orders 3. Internal Compliance Program Repeat Orders Order Acceptance Other Requirements Advanced Product Quality Planning Documentation & Export Approval Application (direct export) Verification of the contents of shipment p Protective Measures against Illegal Exports and Improper Resale and Diversions Shipment or Supply • MASS PRODUCTION CHECKLIST Shipment Documentation •Philippine Export Zone Authority (PEZA) Requirements Checking of Actual Item vs. Documents Verification of the contents of shipment p Protective Measures against Illegal Exports and Improper Resale and Diversions Shipment or Supply • LETTER OF ASSURANCE (Check validity of LOA for Repeat p Orders) ) • Indication of warning notice as necessary.

1 Transaction Screening :: 4.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 4. Other Activities in the ICP 1st Screening using the Five Key Elements  Classification  Determine if item is controlled or not  Destination  Check Export Destination  Customer / End User  Confirm if end use se is WMD WMD-related related  End Use  Confirm if end use is WMD-related  Overall transaction conditions  Consult as necessary 16 .

Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 4.1 Transaction Screening g :: 2nd Screening by Export Control Administrator  Accomplishment of Team Manufacturing Feasibility Commitment  Evaluation of Transaction Screening (1st Screening) Assistance of Mitsubishi Electric Group (as necessary)  As a domestic manufacturing company engaged in the importation and exportation from and to Japan and other countries. 17 . Therefore. when in doubt we refer the matter to Mitsubishi Electric Group for advice. LAMCOR follows both Philippine laws and the regulations of Japan and other ot e cou countries t es related e ated to Export po t Co Control to t thru u Mitsubishi tsub s Electric ect c Group. Other Activities in the ICP :: 4.

 Export Approval Application with concerned government agencies is obtained.  We ensure appropriate and correct documentation of our transactions. 18 .Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 4.2 4 2 Order Control ::  Before Mass Production. Other Activities in the ICP :: 4. Production we ensure that the proper screening for Security Export Control was conducted.

 We do not prod produce ce speciall specially-designed designed prod products cts for militar military applications.3 Export & Sales Control :: We also follow the “Foreign g Exchange g and Foreign g Trade Law” of Japan p and therefore:  We do not sell components/parts for vehicles to be used for military applications applications. 19 .  We do not transfer or resell machineries and equipment for the use in relation to weapons of mass destruction or conventional arms. Other Activities in the ICP :: 4.  We do not transfer technology or software that can be used for military applications.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 4.

Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 4.4 Education & Training ::  LAMCOR ensures th that t employees l h have undergone d proper orientation and training on Security Export Control. Other Activities in the ICP :: 4. 20 .  Th The ECA goes t to th the site it f from ti time t to ti time t to check h k th the E Export tC Control t l activities and to remind the employees about the importance of consistent implementation of the ICP.  An internal audit is conducted at least once a year.  We have also included the suppliers in our progran on Export Control and dt to enhance h th their i k knowledge l d we i intend t dt to h hold ld a seminar i f for th them to be held within the middle of this year.

 The Core Team meets regularly every other month to discuss each department’s concerns and activities and also it is the venue for the ECA to give updates updates. 21 .Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 4. Other Activities in the ICP :: 4.5 Formation of Core Team ::  E Each h Management M t Committee C itt member b i is a member b of f th the Core Team to ensure compliance of the ICP in each Department/Section.

Mitsubishi Electric continually conducts training to LAMCOR Core Team.  Ed Education i and d Training T i i  To upgrade our skills on Export Control. Support from Mitsubishi Electric ::  Export Control Manual  Mitsubishi Electric provides updated manual to LAMCOR for use as our reference.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 5. 22 .  Verification and Audit  The Automotive Equipment Group of Mitsubishi Electric Headquarters conducts regular verification and audit on LAMCOR Export Control activities to ensure compliance to our ICP.

These are: . Corporate Responsibility :: 6.EMR (E (Environmental i t lM Management tR Representative) t ti ) ● LAMCOR has self-check and self-audit system and submit report to the President. etc ● LAMCOR has designated Representatives (Vice-President or General Manager level) to ensure compliance of the above laws and institute controls to maintain our corporate ethical standard.Security Control . LAMCOR respects other Philippine laws such as: □ Corporation Code of the Philippines □ Philippine Special Economic Zone Act □ The Labor Code of the Philippines □ Environmental Management laws □ etc.ICFT (Internal (I l Control C l over Fi Financial i lR Reporting) i ) .ECA (Export Control Administrator .Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow 6. 23 .CEO (Chief Compliance Officer) .Internal Control .1 Compliance to Other Philippine Laws :: As a Corporate Responsibility.

2 Certificates & Awards :: 6.Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 6. Corporate Responsibility EXEMPLARY PARTICIPATION & CONTRIBUTION TO ENVIRONMENTAL PROJECTS LTI RECOGNITION – November 2010 ISO/TS16949 since May 2006 ISO14001 since Aug 2005 OUTSTANDING ENVIRONMENTAL PERFORMER PEZA AWARD April and p 2007 00 a d March a c 2011 0 Company President received the award from President Aquino & PEZA Director General Lilia De Lima 24 .

3 Philanthropic Activities :: School Donations 6. Corporate Responsibility Charitable Donations Environmental awareness programs 25 .Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow :: 6.

Laguna Auto-Parts Manufacturing Corporation LAMCOR for a greener tomorrow LAMCOR is a Japanese company but our operation is in the Philippines. So we will keep and uphold Philippine laws and we will continue to do our share to improve the quality of life of the Filipino people. Thank You! 26 .