Supplier's Manual Annex for Gdl Location

SUPPLIER’S MANUAL ANNEX FOR GDL LOCATION

CHAPTER

1. PURPOSE 2. CONTENT 3. COMMUNICATION BY EDI 3.1 E-MAIL requirements 3.2 EDI Transactions 3.3 Trade Partner Data 3.4 Web EDI 3.5 Delivery Addresses 3.6 EDI Contacts 4. SHIPMENTS 4.1 Direct Shipments 4.1.1 Custom Brokers 4.2 Shipments through a Logistic Consolidate Center (HUB) 4.2.1 Shipping Process 4.3 Shipments through a Third Party Local Warehouse (VMI) 4.3.1 Testing Process 4.3.2 Pull-in Procedure 4.3.3 Stock Management 4.3.4 Reception, Storage & Inventory Procedure 4.3.5 Documentation 4.3.6 Actual Third Party Local Warehouses 4.3.7 Payment 4.4 Premium Shipments 4.4.1 Incoterms 5. INVOICING 5.1 Example Invoice 5.2 Invoice Payments 6. LABELING 6.1 2D PDF417 Label 6.2 2D PDF417 Label Contact 7. PACKING LIST 8. TRADE AGREEMENT & AALA – SUPPLIER REPORTING CONTENT REQUIREMENT 8.1 NAFTA Certificate of Origin 8.2 American Automotive Labeling Act (AALA) 8.3 Country of Origin 8.4 Request for product specific data 9. MATERIAL RETURN 9.1 Over shipments 9.2 Quality Issues 10. SUPPLIER PERFORMANCE RATING 10.1 User & Password 10.2 Performance Monitor at Supply On 10.3 Months with no results

10.4 Individual Performance report values 10.5 Delivery Performance 10.6 Service criterion value 10.7 Enter action plan 10.8 Instructions to interpret our evaluation homepage

Please refer to our Supplier Global Manual http://www.conti-online.com The content of this Annex applies only to our Location GDL.

1 Purpose

Our business performance is based on the logistical reliability, which is determined by how we co-operate with our suppliers. This manual is made to improve and ensure this process. It describes the main issues of co-operation in our Guadalajara Location and it is intended to support our suppliers by offering summarized, binding information.

2 Content

This manual covers the following key elements of our logistics operations: The communication standard EDI, cancellations, shipments (incl. packaging and return of material), additional costs, image ranking, third party local warehouse, sourcing committee and finally the contact persons at Continental Automotive Guadalajara Facility la Tijera and Facility Periferico.

3 Communications by EDI (Electronic Data Interchange) NOTE: THIS CHAPTER IS NOT EXCLUSIVE FOR EDI SUPPLIERS, IT IS MANDATORY FOR ALL SUPPLIERS

3.1 E-MAIL Requirements

While setting up either of the connections (EDI/ WEB EDI) you would be asked for an email address in which you will be receiving our requirements each week through our system.

The email address that you would see when receiving our requirements is:

[email protected]

However, it is important that you remember not to reply to this email address regardless the issue.

Confirmations or questions regarding the requirements received in your email address must be attended with your MRP controller.

If you do not know the name of your controller, you can see it in the upper right corner of the release.

The releases will be send in a PDF format, if you do not have acrobat please log on to http://www.adobe.com and download an application free of charge. © Continental GDL 2014 Effective as of: Version: 2.0 Page 4 of 32 July 1st, 2014

3.2 EDI Transactions There are at least 3 transactions considered obligatory for our suppliers (summary):

ID Transaction Purpose Receive Send by Frequency by supplier supplier 830 Planning Firm and/or forecast X Weekly DELFOR Schedule by part number for up to 52 weeks. Weekly buckets. Forecast subject to changes, firm information committed to purchase by Continental as scheduled. 856 Advanced Provides detail X As DESADV Ship Notice information about applicable contents of an specific shipment 997 Functional Details the success X X For each CONTROL Acknowledg of the transaction ement communication between the EDI translators

Optional Transaction:

862 Delivery Provides Daily X* Daily DELJIT Just in Time demand to be delivered by local WH next day.

*862 DELJI will be sent to the Local Warehouse who will receive in behalf of supplier.

Continental Automotive Guadalajara Mexico, S.A. de C.V. representative will contact each supplier to let them know all the specific requirements and their dead line. However if a supplier is ready and Continental Automotive Guadalajara Mexico, S.A. de C.V. has not contacted them, it is the suppliers responsibility to contact and ask for a test.

Delivery schedules or forecast information are deemed to be accepted and approved by the Supplier unless a written objection is received by the Customer within 2 (two) working days after receipt by the Supplier. © Continental GDL 2014 Effective as of: Version: 2.0 Page 5 of 32 July 1st, 2014

3.3 Continental Automotive Guadalajara Mexico, S.A. de C.V. Trade partner Data:

VAN: GEIS (General Electric Information Services) Translation Software: ACTIS Operation System: Linux Account ID: SATGDL Network ID: Qualifier: ZZ ANSI X12 Standards: Version 4010 EDIFACT Standards: Version 97A

Third Party Local Warehouse

If goods are being shipped to a 3rd party local warehouse / consignee warehouse there will be an ASN transmission. A new ASN will be generated when goods are sent from consignee warehouse to Continental Automotive Guadalajara Mexico, SA de CV

3.4 WEB EDI

Web EDI is the alternative for those Suppliers incapable to handle traditional EDI. This solution has many features that would make it very attractive to the supplier which include: information download capabilities, increased operational efficiencies, etc.; while traditional EDI users can continue using existing systems.

Continental Automotive Guadalajara Mexico, SA de CV believes Suppliers will find this Web EDI system to be very helpful to their organization as it increases suppliers visibility to key information.

Technical Requirements for the Web EDI are:

 Internet Browser  Internet access

This service to access your information by Internet, allows you to have all the advantages of the traditional EDI (VAN) with the maximum level of reliability, using Internet security standards.

The advantages of using the WEB BASED EDI are a reality to a lot of business that share a great amount of business documents.

 Less time in the commercial cycle order / delivery of Continental and the suppliers.  Time optimization in deliveries and reception of merchandise.

 Total security and confidentiality sending  Reinforce your modernization process, inevitable to compete in the future  More efficient response to clients and suppliers.

3.5 Delivery Addresses

All Materials must be shipped according to the Plant (DOCK CODE for EDI / Delivery Data Customer for WEB EDI) specified in our transmission:

TIJ will represent the address: Camino a la Tijera No. 3 Km. 3.5 Tlajomulco de Zuñiga C.P. 45640, Jalisco, Mexico

PER will represent the address: Periferico Sur No. 7999D Tlaquepaque C.P. 45601, Jalisco, Mexico

3.6 EDI Contacts

EDI Business Contact Periferico Katerina Ulacia Telephone: +52-33-32-831100-7112 mailto: [email protected]

EDI Business Contact Tijera Eva Quintero Telephone: +52 1-33-1057-7373 mailto: [email protected]

EDI Technical Contact Aldo García Moreno Phone (52) 33 3818 2000 Ext. 7511 +52(33) 30407511 mailto: [email protected]

SPECIAL MANUALS WITH FURTHER TECHNICAL AND DETAILED INFORMATION ABOUT EDI, EDI TRANSACTIONS AND WEB-EDI ARE AVAILABLE AT CONTINENTAL AUTOMOTIVE GUADALAJARA MEXICO, SA DE CV WITH EDI BUSINESS CONTACT PERSON.

4 SHIPMENTS

Depending in the Delivery Condition of each Supplier, there should be three different ways to ship the goods:

 Direct Shipments  Shipments through a Logistics center (HUB)  Shipments through a Third Party Local Warehouse

Delivery Conditions are linked to the Incoterms showed on Chapter 6.5

NOTES: Any material that shows apparent damage will be pushed back to the supplier according to the negotiated incoterm.

All shipments with delivery at the border must comply with the AES (Automated Export System) from the Customs and Border Protection Bureau and the Federal Trade Department, the exporter of the merchandise must fill out an Automated Shipper Export declaration via the AES web site (census.gov) and along with the merchandise send the automated response from AES, which is a code assigned to the transaction. In case that this mandatory requirement is not fulfill, the supplier will be responsible for any additional cost that this brings as consequence.

4.1 Direct Shipments

Ship to Address:

For “Tijera” Facility:

Continental Automotive Guadalajara Mexico S.A. de C.V. c/o Customer Broker (according to the carrier used) Camino a la Tijera #3 Municipio Tlajomulco de Zúñiga, Jalisco 45640 México

For “Periferico” Facility:

Continental Automotive Guadalajara Mexico S.A. de C.V. c/o Customer Broker (according to the carrier used) Periferico Sur #7999 Santa María Tequepexpan, Tlaquepaque Jalisco 45090 México

Sold to Address:

Continental Automotive Guadalajara Mexico S.A. de C.V. Camino a la Tijera #3 k.m. 3.5 Carretera Guadalajara-Morelia Municipio Tlajomulco de Zúñiga, Jalisco 45640 Mexico R.F.C. SVD000317AH4

A list of Customer Brokers could be finding in Chapter 6.1.1

To avoid any problems concerning shipment, customs clearance and payment some documents are necessary to be sent with the shipment. One box of the complete shipment should keep the documents, this box has to be marked clearly (e.g. a colored plastic bag on a free side). The documentation must contain:

 Financial invoice (including the weight per part number)  Packing list (including the weight per part number)  Commercial Invoice for dunnage (returnable containers if applicable)

These documents are required to present a fiscal declaration to Mexican customs.

At the same time of the shipment, another copy of the Invoice should be sent to Continental Automotive Guadalajara Mexico S.A. de C.V.

Because of missing documents the goods could not be released and are kept at customs until the documents are delivered. Each additional day has an extra charge and would be storage no more than 60 days. The purchase can even be seized by customs, so in order to avoid this, once the good has been stored for 3 days, the goods will be sent back to supplier using collect freight and no matter the lack of RMA. THESE GOODS WILL NOT BE PAID TO THE SUPPLIER.

4.1.1 Customer Brokers

Depending on the carrier used by the Supplier to deliver the goods, Continental Custom Broker will change

Guadalajara Broker

 Cabrera Llamas y Asociados

Att’n of Adrian Llamas Tapia Avenida de los Agentes Aduanales Modulo 39 Aeropuerto Internacional Miguel Hidalgo C.P. 45659 Tlajomulco de Zúñiga, Jal. México

Carriers: UPS, DHL, FedEx, Martin Air, Mas Air, Aeromexpress, Aereounion

México City Broker

 Despachos Aduanales Castaneda, S.C.

A.A. Pedro Ramon Puron Acevedo Patente: 3752 Norte 182 no 679 Col. Pensador Mexicano México, DF. C.P. 11220 Contact name: Felipe de Jesus Becerra Martinez Gerente de Operacion Tel:01 55 26 03 83 45 / 26 03 83 55

Laredo Texas Broker

LASER FORWARDING INC 13166 South Unitec Dr. Uniroyal Industrial Park Laredo TX 78045 Tel. 1 956 794-3600 Fax 1 956 794-3607 Attention: Gabriel Gonzalez Tel. 1 956 794-3600 Fax. 1 956 794-3606 Nextel 52*52095*11 [email protected]

Carriers: Yellow-Roadway, Con-Way, CFI, Unishippers, Celadon

Port of Veracruz Broker

 Grupo Zego Agencias Aduanales

GRUPO REYES KURI, S.C. © Continental GDL 2014 Effective as of: Version: 2.0 Page 10 of 32 July 1st, 2014

Emparan No. 637 Col. Centro C.P. 91700 Veracruz, Ver. Phone.- 01 229 989-07-00 / 989-07-25 to 27 Manager. Juan Carlos Acosta Accound Executive in Gdl. (CLLA) Leonardo Ramos y/o Marisela Machuca.

Port of Manzanillo Broker

 Grupo Zego Agencias Aduanales

SERVICIOS ADUANALES DEL PACIFICO, S.C. Av. Lopez Mateos No. 194 Col. Las Joyas C.P. 28230 Manzanillo, Col. Phone.- (314) 331-19-50/65 Manager. Rafael Paul Rodriguez Martinez Account Executive in Gdl. (CLLA) Leonardo Ramos y/o Marisela Machuca.

Port of Altamira Broker

 Grupo Zego Agencias Aduanales

COMERCIO EXTERIOR DE OCCIDENTE, S.C Av. Río Tamesí Km 0+700 Edificio Multimodal 4to piso Desp 404, 409, 410, 411 Puerto Industrial de Altamira C.P.89600 Tampico, Tmps. Phone.- 01 833 260 2270 / (833) 260 2277 Manager Opc. Arturo Casas Borbonio Account Executive n Gdl. (CLLA) Leonardo Ramos y/o Marisela Machuca.

NAFTA HUB (Full Truck Load) Address

 JFK “New York, NY” (Full Truck Load or above 22,300 lbs) Delmar International C/O Firebird Freight Services Corp. 145-77 226th Street Jamaica, New York 11413 © Continental GDL 2014 Effective as of: Version: 2.0 Page 11 of 32 July 1st, 2014

For Suppliers located at New York Manchester Delaware Maryland Maine Rhode Island Pennsylvania Vermont Connecticut

Contact Person: Annette Barnes Phone Number: (718) 338-8500 Fax Number: (718) 656-0360 Email: [email protected]

 LAX “Los Angeles, CA” (Full Truck Load or above 17,300 lbs)

Delmar Logistics Inc.

For Suppliers located at California Arizona Nevada Oregon

Contact Person: Paul Mattson Phone Number: (310) 338-8500 Fax Number: (310) 338-8551 Email: [email protected]

 ORD (Full Truck Load or above 17,100 lbs) and

 ATL (Full Truck Load or above 15,000 lbs)

For Suppliers located at:

Illinois Minnesota Indiana Montana Ohio Michigan Iowa Wisconsin Dakota Nebraska

Contact Person: Jennifer Hylton Phone Number: (630) 694-9900 Fax Number: (630) 694-5737 Email [email protected]

For Suppliers located at:

Georgia Virginia Florida Alabama Tennessee North Carolina South Carolina Mississippi © Continental GDL 2014 Effective as of: Version: 2.0 Page 12 of 32 July 1st, 2014

Contact Person: Susan Owens Phone Number: 770.997.1390 Fax Number: 770.997.1422 Cell: 404-200-7883 Email: [email protected]

The supplier has to advised with 24 hours of anticipation that they will not have available material to collect. If the supplier does not advised with anticipation, it will be the responsible for the "False Pick up" charge and it will be to pay for this.

On Tuesday 12 noon, the Consolidation closes.

Shipments up to 150 Lbs from NAFTA: Use Fedex, ship directly to Continental Automotive Guadalajara Mexico SA de CV, Mexico. (in reference add Folio breakpoint) for more information contact your requestor and provide an AWB once available.

Shipments greater than 150 Lbs from NAFTA: ProTrans International needs to be contacted Shipment Pick-Up Call: Contact ProTrans International by 10:00 AM of each ship day to confirm the availability of shipments. Important: Shipments that take up 7 skid spots or exceed 7,000 lbs in weight, we request that you contact ProTrans International 24 hours in advance for special routing instructions.

ProTrans International Contact: Local: 956- 661-8600 Toll-Free: 800-599-1922 or 888-744- 7669

In house Contact Person: Lorena Navarrete Phone Number: (33) 38 18 20 00 xt. 2703 Email [email protected]

Important Note: On all airfreight shipment the weight that needs to be considered is the highest one. If the Gross weight is higher than the Net weight, then this is the one to be considered for shipping. To calculate the gross weight, it is needed to be done as below:

LENGTH x WIDTH x HIGH = Gross Weight LENGTH x WIDTH x HIGH = Gross Weight

4.2.1 Shipping Process

Twelve calendar days per Continental requirement, supplier must notify the nearest HUB (before noon time) sending the original financial invoice scanned via e-mail and notifying the Agent of our forwarder that a shipment needs to be done. Once the Supplier calls the proper HUB they will arrange a Pick up if it is necessary (this will depend on the Delivery term (Incoterm) that was negotiated between Continental and Supplier).

Please make sure that the document sent to the nearest HUB will be a Financial Invoice. Pro-forma or Commercial invoices will not be accepted and no HUB will pick up or receive goods without a Financial Invoice. Also make sure the invoice is consigned to the correct Continental legal entity and tax ID is mentioned on the Financial Invoice. Along with the Financial Invoice please enclose the following documents:

-Packing List (including the weight per part number) -Certificate of Origin (Period) or Export Authorization number -AES “Automated Export System” (Mandatory for Shipments above 2,500 USD) -Dangerous goods Certificate. (For DGR Goods only) -Instructions Letter (containing the total of pages sent) Another important issue in regards of the Invoice is the date, the date should be one or two days before the date of the pickup. The HUB will reject all financial invoices, which have more than 3 days old.

Each HUB will hand out a Delivery Note number for every pick up cargo or delivered cargo. This Delivery Note number is the Supplier POD (Proof of Delivery) to Continental facility and should be used as AWB number in the ASN transmission.

The goods should also have a copy packed either inside or outside the boxes.

Once the goods arrive at the local HUB, this information will be sent on a Daily Inventory List directly to all Continental Logistics in order to define if the goods will be shipped to Mexico using an express, consolidated or terrestrial sea service.

The HUB will arrange documents (MAWB, HAWB), and send the goods to Continental Automotive Guadalajara Mexico S.A. de C.V., according to Logistics Contacts instructions. If Continental decides that an express service is needed, it will be Continental responsibility to define whether the cost of the shipment will be charge to the Supplier or not. In this case Continental provides a Folio Number which is valid for single Master Airway bill.

The Folio Number must be included in the Airway bill and shipping documents.

Will check documents and send pre-alerts to the broker with a manifest.

Continental Automotive Guadalajara Mexico S.A. de C.V. will coordinate the Customs Clearance.

4.2.2 Carriers Contacts

Air Shipments

Hellman Europe (Czech Republic, Spain, France, Hungary, Netherlands, Poland, Portugal, Romania and Slovenia)

DHL Europe/ Asia/ USA Mario Robleto Continental In-plant/GDL Tel. (52) 33 3283 – 1100 ext. 8362 [email protected]

4.3 Shipments through a Third Party Local Warehouse

Selected supplier (depending on purchasing volume) receives official request of Local Warehouse Program from Continental Automotive Guadalajara Mexico S.A. de C.V., Logistics department. Once supplier and Continental have agreed the shipment conditions Supplier receives 3rd Party Local Warehouse State Of Work. If all is approved and supplier is willing to ship parts for testing, the testing process will begin.

4.3.1 Testing Process

 Continental Automotive Guadalajara Mexico S.A. de C.V. transmits DELFOR message to supplier and 862 DELJIT to 3rd Party Local Warehouse.  Supplier ships 2 weeks minimum stock in the first time for selected parts.  3rd Party Local Warehouse receives ASN information.  Continental pulls the Daily request by 862 DELJIT.  3rd Party Local Warehouse sends an ASN to Continental.  3rd Party Local Warehouse delivers the parts with a remission document.  Supplier gets EDI 945 and bill Continental for delivered product.  3rd Party Local Warehouse delivers the product to Continental or Continental Carrier.

 Continental receives the invoice making clear reference to the remission number (48 hours after being delivered by the 3rd Party)  3rd Party Local Warehouse elaborates the Export Manifest for one month of corresponding remissions

4.3.2 Pull in Procedure

NO PREVIOUS AUTHORIZATION FROM SUPPLIER IS REQUIRED IN ORDER TO LET CONTINENTAL TAKE PRODUCTS FORM THE 3RD PARTY LOCAL WAREHOUSE FACILITIES.

Supplier is aware that Continental Automotive Guadalajara Mexico SA de CV will take products as requested in the EDI 862 DELJIT. The pull in rhythm will be as follows:

Implementation: weekly Production: daily Just-in-time: 3 times per day

Continental Automotive Guadalajara Mexico SA de CV keeps the right to perform direct import from supplier. Continental will cover the expenses only if the required quantities are up to the agreed maximum stock level and can not be covered by the 3rd Party Local Warehouse. In this situation Continental Automotive Guadalajara Mexico SA de CV pays the expenses caused by an urgent shipment and will perform a direct importation using an authorization number.

Return of products due to quality reasons is done directly by Continental Automotive Guadalajara Mexico SA de CV. Products will be returned to supplier (not to the 3rd Party Local Warehouse).

4.3.3 Stock Management

Supplier shall perform the necessary actions to properly utilize the transmitted information from the delivery schedule. Supplier ships the parts to 3rd Party Local Warehouse in order to support agreed inventory level according to Continental Automotive Guadalajara Mexico SA de CV needs:

Minimum: 2 weeks Maximum: 4 weeks

The minimum and maximum stock levels shall be based upon requirements of the 830 planning schedule. Minimum stock level is supplier’s responsibility.

In the event that supplier is not able to maintain the minimum stock level due to external market causes beyond his control, supplier has to work together with Continental Automotive Guadalajara Mexico SA de CV Either to find the best common solution, or to let Continental make the necessary arrangements on time to avoid a line down situation.

4.3.4 Reception, Storage & Inventory Procedure

Once the products have been imported to Mexico by 3rd Party Local Warehouse, 3PLW performs all incoming procedures, stores the product and makes cycle counts in order to maintain reliable stock records. 3rd Party Local Warehouse also temporarily imports the products to keep a stock that will allow covering Continental Automotive Guadalajara Mexico SA de CV Just-in-time requirements and shipping the product bearing the oldest date first. It is mandatory for 3rd Party Local Warehouse to have a delivery operation 24 hours a day and 7 days a week.

3rd Party Local Warehouse shall handle the product with the same care as Continental Automotive Guadalajara Mexico SA de CV applies to its own stock and keep it in reasonable conditions according to specifications provided by supplier. Therewithal 3PLW covers all risks of damage and loss of the product from reception (customs) until release and physically delivery to Continental or Continental Carrier.

3rd Party Local Warehouse provides to supplier and Continental Automotive Guadalajara Mexico SA de CV information related with product handle such as inventory rotation, movements by product and summary entry forms.

Supplier covers warehousing costs of 3PLW, as well as other costs caused by any instance according to the agreed terms in the contract between supplier and 3PLW. Supplier becomes liable for any costs generated by a shut down situation because of lack of material, wrong information concerning cycle counts, ASN information, no refreshed data in the WEB page on a daily basis, reception, stocking and delivery.

4.3.5 Documentation

Delivery of the product must be done, but for 3rd Party Local Warehouse an additional document is necessary: the Remission. In the remission Continental Automotive Guadalajara Mexico SA de CV part number must match with supplier’s number and 3rd Party Local Warehouse shall not use different part numbers in a same remission.

Also supplier will give a cross-reference list to Continental Automotive Guadalajara Mexico SA de CV Traffic Department and 3rd Party Local Warehouse with data to

elaborate an accurate remission to Continental Automotive Guadalajara Mexico SA de CV This list is reviewed and approved and will be signed at the time the shipment is delivered at Continental Automotive Guadalajara Mexico SA de CV

Once the products have been delivered at Continental Automotive Guadalajara Mexico SA de CV warehouse, Continental Automotive Guadalajara Mexico S.A de C.V acquires the product incoming liability to Mexican territory by the transference of the Continental Automotive Guadalajara Mexico SA de CV IMMEX 4649-2006 program.

4.3.6 Actual Third Party Local Warehouse

SPAN Key Contacts: Parque Tecnologico II Alejandro Esquer Periferico sur # 7980 Facility Manager Col. Santa Maria Tequepexpan [email protected] C.P. 45600 Tlaquepaque, Jalisco Main Phone: 52 (33) 3133-6830 Fax: 52 (33) 3133-6841

OTS / GLM Key contacts: Carretera al Castillo KM. 13.5 El Salto, Jalisco Claudio Arriola Cesar Arriola C.P.45685 General Manager Regional Manager Mexico +52 33) 3688 2619 & 2620 Fax 3688 2675 [email protected] [email protected]

ILS Circunvalación Poniente 1539 Thelma Sanchez Cd. Granja Tel: 52 33) 3627 3046 CP 45101, Jalisco, México [email protected]

GENESIS MANUFACTURING SERVICES Periférico Sur 7999-E Ricardo Madrid Contreras Complejo Industrial Intermex Director de Operaciones Tlaquepaque Jalisco, Mexico 53 33) 3719 3967 Cp 45601 [email protected]

JIT INTERNATIONAL GUADALAJARA Av. Periférico 4250 Victor Castañeda Richard Kimche Col. Periodistas Logistics Operations Manager C.P 45078 Zapopan, Jalisco +52 (33) 36328900 +52 (33) 36328900 [email protected] [email protected]

4.3.7 Payments

Products delivered by 3rd Party Local Warehouse are paid to supplier according to the current payment terms and conditions listed in the LOI. Continental Automotive Guadalajara Mexico SA de CV does not pay any invoice if the invoice

does not correspond to the used remission of the delivery from 3rd Party Local Warehouse.

In that case the following process is required:

 3rd Party Local Warehouse immediately notifies to supplier about the delivery by sending EDI 945 or via fax or e-mail the remission’ relation  Supplier must elaborate an invoice and make a clear reference of the invoiced remission’s relation.  Supplier must send by fax or e-mail to Continental Automotive Guadalajara Mexico SA de CV Accounts Payable Department a copy of the invoice no later than 48 hours after the delivery. Supplier is responsible to match the payment against the corresponding invoice and must send to Continental Automotive Guadalajara Mexico SA de CV the original invoices.

4.4 Premium shipments

If an expedition becomes necessary, Continental Automotive Guadalajara Mexico SA de CV Logistic Department will contact the supplier by phone, fax or E-mail and ensure that the shipment is speeded up. If the only way to expedite the shipment is using premium freight, it should be authorized by giving the supplier an authorization number (folio), as well as routing instructions; the folio has to be passed to the carrier, as a reference. Additional freight costs are only paid with a valid authorization number. No collect premium shipments should be done without an authorization number.

Our accounts payable department is going to take as valid, only the shipments that had been coordinated using Continental authorized carrier (FedEx) and that be supported with an authorization number (folio). FedEx AWB Number must be send to the Logistic Contact and to Import-Traffic contact. Against that, freight cost will be charged to the shipper.

As well as in regular shipments, the premium shipments should include a copy of invoice, packing list & original certificate and an ASN should be sent.

All goods have to be delivered as regular shipments. Only when Supplier is behind Schedule against its deliveries or per Continental Automotive Guadalajara Mexico SA de CV request, the shipment could be sent as Premium.

4.4.1 Incoterms

SUMMARY Group E Departure EXW Ex Works (... named place) © Continental GDL 2014 Effective as of: Version: 2.0 Page 19 of 32 July 1st, 2014

Group F Main FCA Free Carrier (... named place) carriage unpaid FAS Free Alongside Ship (...named port of shipment) FOB Free On Board (... named port of shipment) Group C Main CFR Cost and Freight (... named port of carriage paid destination) CIF Cost, Insurance and Freight (... named port of destination) CPT Carriage Paid To (... named place of destination) CIP Carriage and Insurance Paid To (... named place of destination) Group D Arrival DDP Delivered Duty Paid (... named place of destination)

Source: "INCOTERMS 2010" International Commerce Chamber Germany

INCOTERMS of current shipments should be the same as committed in the Letter of Intention (LOI).

5 INVOICING

Continental Automotive Guadalajara Mexico SA de CV only accepts Financial Invoices. Commercial or Proforma are not accepted. The invoice must match with the goods in the package and must have Continental Automotive Guadalajara Mexico SA de CV correct address (sold-to). Furthermore the invoice must contain:

1. Invoice number and date 2. Supplier’s name, address and logo, P.O. Box it is not to allow as an address 3. Tax ID (NAFTA) or VAT Number Fiscal (Europe) 4. Purchase order and / or contract number 5. Part number (Continental Automotive Guadalajara Mexico SA de CV) and description of the goods 6. Quantity shipped 7. Weight per part number 8. Logistic contact name (the one mentioned in EDI transmission 830) or Requisitor name (P.O.s 3012 XX)

9. Currency, unit price, extended value and total invoiced value. Price must be the one listed in your 830 EDI Transmission. 10. Country of origin: the code for the representation of the name of the country of origin should be indicated in two digits, according to the Norm ISO 3166:1993, as shown in the following examples:

A2CXXXXXX1 Country of Origin: US

A2CXXXXXX2 Country of Origin: CN

11. Document issued in (location, country) 12. Airway bill number and carrier name 13. Delivery Terms (Incoterm) & Payment Term according to purchase order issued and/or 830 EDI Transmission. 14. Sold-to Address 15. Ship-To address according to point of consumption (TIJ, PER or GEN) this sent by Traditional EDI or WebEDI. 16. IMMEX 4649-2006 Legend.

Only on those cases previously authorized by Continental Automotive Guadalajara Mexico SA de CV, supplier could use Proforma or Commercial invoices, however, they must be linked by writing down the number in the financial invoice.

PROFORMA OR ORIGINAL INVOICES WITH WRONG, MISSING OR NOT LINKED NUMBERS WILL NOT BE PAID.

Delivery terms should be the same in the invoice and AWB. Any delay in delivery time caused by two different instructions should be under supplier’s responsibility. 5.1 Example Invoice

6 LABELING As is mentioned on our Supplier Logistics Manual, (CN 855228-1) on point 9 IDENTIFICATION for our location your Products must be shipped with the 2D PDF417 Label. (see below) http://www.conti- online.com/www/automotive_de_en/general/contact_services/suppliers_logistics_en.html

6.1 2D PDF417 Label

Make sure to follow instructions according to our label spec SN 55228-2. http://www.conti- online.com/www/download/automotive_de_en/general/contact_services/download/cn_85 5228_1_appendix_a06_sn55228_2_06_2008_en.pdf

Once you have develop this label, please provide a sample of it to the below contact as your label must be release by our location.

6.2 2D PDF417 Label Contact

If you have any questions regarding the 2D PDF417 Label Contact please contact:

Katherina Ulacia Email: [email protected] Telephone: +52-33-32-831100-7112 Address: Anillo Periférico Sur No. 7999-D 45601 Mpio. De Tlaquepaque, Jalisco. México

Luis Vazquez Email: [email protected] Telephone: +52-33-38182000-6583 Address Camino a la Tijera No. 3 Km. 3.5 Tlajomulco de Zuñiga C.P. 45640, Jalisco, Mexico

7 PACKING LIST As mentioned in Chapter 4 “Shipments”, a copy of the Packing list needs to be sent along with the shipment.

Required information is the tracking Number (AWB B/L) number, invoice number, part number, weight per part number, quantities, gross weight, net weight, number of pallets or containers.

Packing List Example

Country of Origin Marking

Every article of foreign origin (or its container) shall be marked in accordance with the regulations of the importing country.

8 Trade Agreement & AALA - Supplier Reporting Content Requirements:

North American suppliers are required to provide NAFTA and AALA certificates for all the qualifying part numbers to the service provider designated by Continental Automotive Guadalajara Mexico SA de CV Certificates must be provided annually as follows:

 For each calendar year certificates must be received no later than October 01 of the preceding year. Certificates for calendar for example, must be received soon.  Certificates for parts that are launched during the calendar year must be provided immediately.

It is the responsibility of suppliers to provide information for each part that it supplies to Continental Automotive Guadalajara Mexico SA de CV

Supplier is responsible for submitting the following information:

8.1 NAFTA Certificate of Origin

A NAFTA certificate of origin that includes each part number that is supplied to Continental Automotive Guadalajara Mexico SA de CV must be completed and signed. Attachment 1 is the NAFTA certificate of origin. The header and signature fields should be completed (including the number of pages in field 11), and a notation made in field 5 "See attached".

The item level information should be provided on a continuation page (or pages) that follows the format in Attachment 1(NAFTA Certificate of Origin (2 Pages) & Attachment 2 (NAFTA Certificate of Origin Instructions)

Statement of "Traced Value":

The "traced value" of each part number and its currency must be provided in a separate traced value field on the continuation page(s) that are attached to the NAFTA Certificate of Origin. If the part supplied to Continental Automotive Guadalajara Mexico SA de CV is not imported from a non-NAFTA country into a NAFTA country and does not incorporate any materials that are imported from a non-NAFTA country into a NAFTA country, suppliers should report the traced value as "0".

8.2 American Automotive Labeling Act (AALA)

Suppliers are required by law under the AALA to respond to customer requests for information pertaining to the percentage of US/Canada content and the country of origin

of passenger vehicle equipment. Suppliers must complete and sign the AALA affidavit shown in Attachment 4 (AALA Forms).

Mailing address for certificates:

Continental Automotive Guadalajara Mexico SA de CV Camino a la Tijera No. 3 Km. 3.5 Carretera Guadalajara- Morelia 45640 Mpio. de Tlajomulco de Zúñiga, Jalisco, Mexico Attn: Rocio Murillo and Beatriz García

E-mail address for certificates: mailto:[email protected] or

Suppliers should note that in signing the NAFTA certificate of origin they undertake to advise Continental Automotive Guadalajara Mexico SA de CV of any changes that would affect the accuracy of validity of the certificate.

For further assistance on submitting or completing your documentation:

Please contact;

Rocio Murillo, Traffic Analyst & Import Coordinator Periferico Plant +52(33)3818-2000-(ext.7113) mailto: [email protected]

Beatriz Garcia, Traffic Analyst & Import Coordinator Tijera Plant +52(33)3818-2000- (ext 2979)

NAFTA / AALA training is strongly recommended for all suppliers. The Automotive Industry Action Group (AIAG) offers a two-day NAFTA workshop. (See http://www.aiag.org/StaticContent/education/trainingindex.cfm?classcode=NAFTA

8.3 Country of Origin

If Continental Automotive Guadalajara Mexico SA de CV purchases a component from within the NAFTA territory and the part cannot be certified as NAFTA eligible Continental Automotive Guadalajara Mexico SA de CV nevertheless requires that the supplier identify the country of origin of the part. The preferred method is to show “NE” © Continental GDL 2014 Effective as of: Version: 2.0 Page 26 of 32 July 1st, 2014

(Not Eligible) in field 7 of the continuation page, lining out or leaving blank fields 8 and 9, and showing the country of origin in field 10. (Note that an ineligible good may contain “traced value”, which is to be identified in traced value field of the NAFTA certificate continuation page.) This document should be submitted to the contact information as listed above.

If Continental Automotive Guadalajara Mexico SA de CV purchases a component from outside of the NAFTA territory the form in Attachment 3 (Country Of Origin Declaration Form) should be utilized to provide County of Origin Information.

Please note that from time to time additional Country of Origin information may be requested to support trade program participation. Your timely response is expected.

Attachment 1 NAFTA Certificate of Origin(2 Pages)

Attachment 2 NAFTA Certificate of Origin Instructions

Country of Origin Declaration Form

AALA Forms

Traced List (Annex 403.1 of the NAFTA)

Attachment 1 NAFTA Certificate of Origin(2 Pages) Attachment 2 NAFTA Certificate of Origin Instructions Country of Origin Declaration Form AALA Forms Traced List (Annex 403.1 of the NAFTA) Other Certificate of Origin

ALADI Format EUR1 Format (English) EUR1 Format(Spanish) SGP Format

8.4 Request for product specific data

In order to comply with foreign trade and customs legislation we require various product- specific details for the products you sell.

 The classification according to the U.S. Export Administration Regulations the case of US products (ECCN according to the U.S. Commerce Control List)  The HS code  The country of consignment/origin (LKZ) of the goods requested/ordered

Without this information it is not possible to ensure full compliance with the relevant legal requirements. The information forms part of the commercial terms. Please fill out the following form for each part that it supplies to Continental Automotive Guadalajara Mexico SA de CV de C.V. and send it by Fax or E-mail to: rocio.murillo- [email protected] or [email protected] or Fax +52 33 38182000 ext 2979.

Continental Automotive Address of supplier: Guadalajara Mexico SA de CV Supplier number: Transaction/order No.:

Item Product Product code Internal HS Code or ECCN Country description Supplier Continental statistical as per U.S. of origin No. commodity CCL *1 (country code (8 digits) code *2)

9 MATERIAL RETURN Continental will send back goods, if unacceptable deviations from order data appear. This may contain over shipments or quality problems.

Unless supplier does not provide Continental with an RMA (Return Material Authorization) in the following 4 working days, Continental will send back the issues without previous notification.

9.1 Over shipments

In the event that Continental Automotive Guadalajara Mexico SA de CV Logistics Department recognizes over shipped quantities, the supplier will be informed by phone, e-mail or fax about that failure. Either the supernumerary quantity is sent back to supplier country of origin or will be scrapped if supplier prefers this procedure. IN BOTH CASES CONTINENTAL AUTOMOTIVE GUADALAJARA MEXICO SA DE CV WILL NOT PAY ANY COSTS, RESPECTIVELY PASS THE COSTS ON SUPPLIER.

For sending back the goods Continental Automotive Guadalajara Mexico SA de CV needs the following data and it's the responsibility of the supplier to provide in a term no longer than 4 days:

 RMA-Number (Return Material Authorization)  Name of the carrier  Account Number  Address  TAX ID  Us customs Broker (at the border or port- only for ground shipments)

Note: For Mexican Customs clearance (northbound) this custom broker will be a Continental agent.

9.2 Quality Issues

Continental Automotive Guadalajara Mexico SA de CV Income Material Revision approves the quality of the incoming goods. If any non-conformity is identified, SQM will also inform the supplier about those failures. Then the same procedure as before mentioned for over shipment starts. The goods are either send back or will be scrapped and Logistics Department needs data (mention above) carrier, account and address) to forward the goods correctly.

QUANTITIES OF RETURNED MATERIAL MUST BE REPLACED IMMEDIATELY BY SUPPLIER WITHOUT ANY CHANGES IN THE FOLLOWING CONFIRMED DELIVERIES OF THE 830 PLANNING SCHEDULE

10 SUPPLIER PERFORMANCE RATING

Each sixteen day of every month you'll see the evaluation of the previous month, the rates only apply for the logistic criteria of our location & they will be published into the SupplyOn portal: http://www.supplyon.com/supplyon_for_suppliers.html. Note: In order to have access to the supplier evaluation on the supply on portal you must contract the SupplyOn performance monitor service.

The aim is to further develop the relationship with the best suppliers, to phase out suppliers with poor results and to bring suppliers with medium results to improve their performance by removing the identified weaknesses.

The logistics evaluation criteria are based on six basic aspects of supplier’s performance:

 Delivery Performance  Flexibility regarding change demands  Behavior in case of poor delivery performance  Shipping Documents  Labeling  Information & communication

10.1 How to access: Once you logon on the SupplyOn portal enter to the performance monitor:

Next step: enter to Operational Evaluation Logistics:

Here is an example of the screen with the results:

10.2 Months with no results If you see a month with rates with 0 including the delivery performance value as a 0 it means that specific month any good receipt were post

10.3 Individual Performance Report Values If you see rating on red color it means that we need action plan to improve the category listed.

10.4 Delivery Performance The evaluation of a delivery according to time and quantity will be executed at the time of the goods receipt posting.

The quantity of a goods receipt item will be assigned to one or several schedule line(s) in the supplied purchasing document. The difference in time between the goods receipt and the deadlines of the supplied schedule line(s) is together with the quantity delivered the basis of the evaluation.

10.5 Service Criterion Evaluates the following items: Flexibility regarding change of demand, behavior in case of poor delivery performance, shipping documents, labeling, information and communication.

Note: Self-Assessment GMMOG/LE (pt): This is the evaluation provided annually by Continental Headquarters.