NAFTA Preference Determination in GTS 10.0

Robert Adams and Opal Melendez Eaton Corporation

Founded in 1911 by J.O. Eaton Chairman & CEO Alexander M. Cutler Headquarters: Dublin, Ireland Key locations in Cleveland, Ohio; Shanghai, China;

Morges, Switzerland; Sao Paulo, Brazil Innovation Centers in regions around the world Customers in more than 175 countries Sales of $21.8 billion* 50% of sales outside the U.S. Approximately 103,000 employees * 2012 Sales Pro-forma, including Cooper

2013 Eaton. All rights reserved 2

EATON CORPORATION

Industrial Sector

$8.6 B Sales

Vehicle

Hydraulics

Aerospace

Electrical Sector

$13.2 B Sales*

Electrical Products

Electrical Systems & Services

* 2012 Sales by Sector Pro-forma, including Cooper

2013 Eaton. All rights reserved 3

EATONS BUSINESSES

LEARNING POINTS

Differences in Configuration in Preference Determination GTS 10.0

New Preference Determination Screens in GTS 10.0 New functionality on our Roadmap Lessons learned during our Upgrade to GTS 10.0

Define Legal Regulation Assign Country/Country Group to

Legal Regulation Define Administration Unit Define either Cross-Plant or Plant

Based Configuration Define Administration Unit

Attributes Activate Preference Agreement at

Country/ Country Group Level Define Rule Set Control Settings for Vendor

Declarations Define Standard Texts and Logos Control Settings for Vendor-Based

Long Term Vendor Declarations Control Settings for Customer Based

Long Term Vendor Declarations

CONFIGURATION THAT REMAINED

NEW CONFIGURATION SCREENS

Assign Preference Agreement to Rule Set

CUMULATIVE ENDORSEMENT APPLICABLE

ASSIGN AGREEMENT TO RULE SET

NEW CONFIGURATION SETTINGS

Assign Preference Agreement to Rule Set Administrative Unit Attributes Screen allows

assignment of Tariff Code Scheme

TARIFF CODE SCHEME ASSIGNMENT

NEW CONFIGURATION SETTINGS

Assign Preference Agreement to Rule Set Administrative Unit Attributes Screen allows

assignment of Tariff Code assignment Define Preference Indicators

ASSIGN PREFERENCE INDICATORS

NEW CONFIGURATION SETTINGS

Assign Preference Agreement to Rule Set Administrative Unit Attributes Screen allows

assignment of Tariff Code assignment Define Preference Indicators Assign Preference Indicator Schema to Rule Set

ASSIGN INDICATOR SCHEMA TO RULE SET

LEARNING POINTS

Differences in Configuration in Preference Determination GTS 10.0

New Preference Determination Screens in GTS 10.0 New functionality on our Roadmap Lessons learned during our upgrade to GTS 10.0

NEW SCREENS AND LAYOUT

MASTER DATA SCREENS

Rearranged options on the screen Some options eliminated or moved to other screens New transaction to display preference data for products New transaction to determine low level codes of Bills of

Products

MASTER DATA SCREENS

MASTER DATA SCREENS

MASTER DATA SCREENS

MASTER DATA SCREENS

MASTER DATA SCREENS

PREFERENCE PROCESSING SCREENS

Entire layout rearranged no longer only EU or NAFTA tabs

Based on Administrative Unit and dates 3 sections, each with separate tabs based on function

Vendor-Based LTVDs Customer-Based LTVDs Preference Determination

PREFERENCE PROCESSING SCREENS

Select an administrative unit and a Period before doing anything else. Once an admin unit is selected, the screen is expanded.

PREFERENCE PROCESSING SCREENS

PREFERENCE PROCESSING SCREENS

New option to Request Vendor Declarations in Annual Run in the Processing tab of the Vendor LTVDs

PREFERENCE PROCESSING SCREENS

Note that the admin unit is automatically populated from the previous screen. The selection can be done by partner or product. Enter the date you want to request LTVDs for.

PREFERENCE PROCESSING SCREENS

Master data tabs at each level allow you to access the product master and commodity codes without having to leave the Preference screens

LEARNING POINTS

Differences in Configuration in Preference Determination GTS 10.0

New Preference Determination Screens in GTS 10.0 New functionality on our Roadmap Lessons learned during our upgrade to GTS 10.0

GTS PREFERENCE ROADMAP

Roll out more Free Trade Agreements Will need to purchase the Rules of Origin.

Update our Feeder System with more Preference data Implement Web Portal functionality for Vendor LTVDs

UPDATE LTVDS IN PORTAL

LEARNING POINTS

Differences in Configuration in Preference Determination GTS 10.0

New Preference Determination Screens in GTS 10.0 New functionality on our Roadmap Lessons learned during our Upgrade to GTS 10.0

LESSONS LEARNED

Lessons Learned 1. Changes to NAFTA rule set

CHANGES TO NAFTA RULESET

We changed our rule set name during the upgrade to align with the Customs Info naming convention

Old agreements using the previous rule set name were no longer accessible to the users

Worked with SAP to find a solution. They advised that the only solution was custom coding.

We created a custom one-time program to convert old agreement data in the system to the new rule set name.

Required update of two SAP tables: /SAPSLL/PREVDITM Preference LTVD Item /SAPSLL/PRPREF Preference data in product master

LESSONS LEARNED

Lessons Learned 1. Changes to NAFTA rule set 2. Use of Dates in Preference Determination

USE OF DATES

Display worklist transaction worklist from date. This date will overwrite dates from the initial screen.

USE OF DATES

Preference Determination will only be done for current period even though another period is selected in the main screen.

LESSONS LEARNED

Lessons Learned 1. Changes to NAFTA rule set 2. Use of Dates in all Preference Screens 3. Automotive Rule

AUTOMOTIVE RULE

Most of our products do not fall under the automotive rule.

The rules are written that if a product is not automotive in nature, then you apply the condition

Users were not checking the preference determination log to see why a product didnt qualify for NAFTA

We need to always check the log to see if a condition must be applied to an HTS code

We need to be more proactive in researching which products and HTS codes that fall under the automotive rule so that conditions can be set

AUTOMOTIVE RULE

AUTOMOTIVE RULE

LESSONS LEARNED

Lessons Learned 1. Changes to NAFTA rule set 2. Use of Dates in all Preference Screens 3. Automotive Rule 4. Testing Time

LESSONS LEARNED

Underestimated the time required to test all the new functionality in the Preference module

Minimal documentation of changes from 8.0 to 10.0 Users not involved in testing until late Increased time and effort training users after go-live

KEY LEARNINGS

New configuration for Preference Processing New screens and layout of screens New functionality on our Roadmap Lessons learned during our upgrade

Q & A

Questions?

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SESSION CODE:1002

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Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5NEW CONFIGURATION SCREENSCUMULATIVE ENDORSEMENT APPLICABLEASSIGN AGREEMENT TO RULE SETNEW CONFIGURATION SETTINGSTARIFF CODE SCHEME ASSIGNMENTNEW CONFIGURATION SETTINGSSlide Number 12NEW CONFIGURATION SETTINGSASSIGN INDICATOR SCHEMA TO RULE SETSlide Number 15NEW SCREENS AND LAYOUTMASTER DATA SCREENSMASTER DATA SCREENSMASTER DATA SCREENSMASTER DATA SCREENSMASTER DATA SCREENSMASTER DATA SCREENSPREFERENCE PROCESSING SCREENSPREFERENCE PROCESSING SCREENSPREFERENCE PROCESSING SCREENSPREFERENCE PROCESSING SCREENSPREFERENCE PROCESSING SCREENSPREFERENCE PROCESSING SCREENSSlide Number 29Slide Number 30Slide Number 31Slide Number 32LESSONS LEARNEDCHANGES TO NAFTA RULESETLESSONS LEARNEDUSE OF DATESUSE OF DATESLESSONS LEARNEDAUTOMOTIVE RULEAUTOMOTIVE RULEAUTOMOTIVE RULELESSONS LEARNEDLESSONS LEARNEDSlide Number 44Q & ASlide Number 46Slide Number 47