ACI EAR Boot Camp Chicago, IL October 9-10, 2013

Transcription

1 ACI EAR Boot Camp Chicago, IL October 9-10, 2013 Overview of Delphi Maureen Pearson Global Customs & Export Counsel

2 Delphi Delphi is a global supplier of electronics and technologies for the automotive commercial vehicle and other markets Research, design, development, manufacturing, sales, testing, services Technology licensing, original equipment and aftermarket supply Engineering, manufacturing, customer service centers throughout the world Over 32 countries in North America, South America, Asia Pacific, Europe, Middle East, Africa, Asia Pacific More than 115,000 employees globally Ultimate parent is a UK legal entity listed on the NYSE Significant management positions held by U.S. citizens/permanent residents Significant number of non-u.s. personnel reside and work in the U.S. Some military and dual-use technology and goods Some technology and items are on the CCL One U.S. subsidiary deals primarily in ITAR items 2

3 Key Global Technical Centers Auburn Hills, MI Bascharage, Lux. Krakow, Poland Juarez, Mexico Shanghai, China Bangalore, India São Paulo, Brazil 15 Technical Centers 11 Countries 19,000 Scientists & Engineers 3

4 Breadth of Product Electrical/Electronic Architecture E/E Distribution Systems: Primary Wiring Harness Assembly, High Power Wiring Assemblies, Cable Connection Systems: Standard Automotive, Device Connections, Data Connectivity, High Power/High Performance, Non-circuit Bearing; Electrical Centers: Battery Electrical Centers, Interior Electrical Centers, Under-hood Electrical Centers Electronics & Safety Active Safety Systems, Audio Systems, Body and Security Electronics and Systems, Communication Systems, Driver Information Systems and Controls, Electronic Control Units, Body Computers, Navigation Systems, Safety Electronics, Mechatronic Products, Reception Systems, Software, Wireless Connectivity, Hybrid and Electric Vehicle Electronics Powertrain Systems Fuel Injection Systems, Ignition Systems, Air and Fuel Management, Electronics, Sensors and Actuators, Valve Train Systems, Fuel Handling Systems, Evaporative Emissions Systems, Transmission Management Systems Thermal Systems Condensers, Radiators, Fan Modules, Powertrain Cooling Systems, Charge Air Coolers, Evaporators, Heater Cores, Air Conditioner Compressors, HVAC Modules and Micro Channel Heat Exchangers Product & Service Solutions Vehicles Electronics, Engine Management Systems, Fuel Systems, Heating and Cooling, Advanced Diagnostics Service Products, Training and Component Level Technical Assistance, Original Equipment Service, Diesel Systems 4

5 Core Innovations and Adjacent Markets Core Automotive Markets Adjacent Markets Electrical/Electronic Architecture Electronics & Safety Residential/Commercial Heating and Cooling Powertrain Systems Commercial Vehicles Thermal Systems Military/Aerospace Aftermarket 5

6 Export Compliance Experts Sit in Legal Staff CEO Global Customs & Export Counsel Manager Export Compliance General Counsel & Chief Compliance Officer General Director Delphi Global Customs Staff Export Specialist Regional Customs Counsel Asia Pacific Manager Customs Operations South America Manager Customs Operations Europe Mid East Africa Manager Customs Operations Asia Pacific Manager Customs Operations North America Regional Customs Counsel U.S. & Canada Regional Customs Counsel Europe Mid East Africa Trained personnel in the divisions and staffs perform compliance procedures.

7 Challenges for Delphi Complexity Highly matrixed organization No one size fits all Management by division and product line/management by region and country Some functions are managed outside of the divisions (e.g., Legal, Customs) Some functions are managed at both the corporate and divisional level (e.g., Logistics, Finance, Engineering) Complex set of systems to run business No single MRP or ERP system No single engineering system Complex export control laws across jurisdictions U.S. foreign trade controls reach outside the U.S. U.S. citizens and green-card holders abroad Foreign nationals in the United States Widening scope of enforcement targets Growing risk for non-traditional targets such as the automotive industry Foreign affiliates subject to U.S. export control and sanction laws Other jurisdictions (such as the UK) stepping up export enforcement 7

8 Challenges for Delphi Open Collaboration Significant international collaboration with global accessibility SAP (storing bills of materials) SharePoint and other collaboration tools Shared drives and shared engineering systems Other Considerations Identification of military or dual-use status as meta data on documents and drawings Server administration who and where IT Hosting who and where Security of sharing technical data with business partners Much of Delphi s technology and products is not controlled beyond AT How to identify the proverbial needle in a haystack How to tell an affiliate: We need a license before we can send you that. 8

9 Challenges for Delphi Touchpoints Department Human Resources Information Technology Treasury Engineering Marketing and Sales Logistics Divisions / PBUs Question(s) to Consider What is the citizenship of personnel with access to controlled technology? Where is controlled information stored and who has access? What is the payment flow? Are cash payments involved? What is the product and technology? Is it controlled? If so, who has access? Who are the customers and end-users? Where are they located? Are they denied or embargoed? How are export license requirements captured on the shipping documents? What documented procedures are in place to ensure export control compliance? 9

10 How We Began Work on the EMCP Export Controls Technology, technical data, financial transactions, endusers, end-use Dual-use list Military items Restricted parties Sensitive countries and embargoes Effect of U.S. export regulations abroad Embargoes Re-exports Export Operations Physical exports Logistics and transportation requirements Export shipping documentation Destination Control Statement Export declaration Automated Export System Packing and packaging requirements Export License Management

11 How We Began Work on the EMCP Identified need for revamped export management and compliance program (EMCP) Assessed company issues and gathered penalty information on others in our industry Initial focus was on high-priority risk then expanded to broad EMCP Created awareness training for executive management Simple high-level sensitivity training Single page summary of issues, risks, potential responses Came away with executive delegation to the engineering community to work with us Took the show on the road -- lobbied, lobbied, then lobbied some more Identified key engineering leadership, divisional leadership, functional leadership Conducted awareness training, identified risks, and potential responses Came away with delegates from divisions and functions to be part of the EMCP project team 11

12 How We Began Work on the EMCP Worked cross-division, cross-function to hammer out EMCP Worked with divisions and functions to understand their business processes Integrated export compliance into existing business processes Did not overlay separate set of procedures unless absolutely necessary Included process people as part of the team Training and awareness are important, but documented processes are critical to changing behavior Developed export compliance add-ons to the various business processes Role of Export Compliance Group Work with executive management on policy issues Manage licenses, government inquiries, audits, controversies Monitor and communicate legal and regulatory requirements Review and enhance as necessary internal procedures Oversee all export compliance training awareness training, advanced training, and train-the-trainers Authorized to stop shipments or other activities that risk non-compliance 12