1. A presentation by: Jos Imants & Serge Buyl
Presentation Name (View / Header and Footer)

2. Honda headquarters in the EU
HEPE ( Orleans-F )
Power Equipment
HE ( Gent-B )
Parts + Engines (HEPE)
HME Ltd ( Langley-UK )
General HQ + Cars + MC
HACE ( Aalst-B )
Accessories
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT

3. Honda factories in the EU
HEPE ( Orleans-F )
Power Equipment
HIA ( Atessa-IT )
Motorcycle
BH ( Aalst-B )
Car parts ( Bumpers/STC )
MH ( Barcelona-ES )
HUM ( Swindon-UK )
Cars
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT

4. Honda sales companies in the EU
HIA ( Atessa-IT )
MC-PE
HME-N ( Ridderkerk-NL )
Cars-MC-PE
MH ( Barcelona-ES )
Motorcycle
HME-S ( Barcelona-ES )
Cars
HME-S ( Verona-IT )
HME-DK ( Kolding-DK )
HPES ( Malmö-SE ) PE
SVH ( Malmö-SE )
HME-FI ( Helsinki-FI )
Cars-Parts
HME-N ( Vienna-AT )
HSL ( Bratislava-SL )
HHG ( Budapest-HU )
HME-EE ( Tallinn-EE )
HPL ( Warsaw-PL )
HME-N ( Offenbach-D )
HCR ( Prague-CZ )
Cars-MC
HEPE ( Orleans-F )
HME-UK ( Langley-UK )
Cars-PE-MC-ATV
HE ( Gent-B )
Parts-Engines
HACE ( Aalst-B )
Accessories
HME-S ( Marne-la Vallee-F )
HAP ( Sintra-P )
HPFP ( Sintra-P )
HP ( Sintra-P ) MC
HME-N ( Aalst-B )
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT

5. Roll & responsibilities of Honda Europe
HONDA EUROPE N.V. (HE)
HQ Parts / Engines
Gent-BE
Cars
Engines
Parts & Accessories MC PE
Marine
Logistics and warehousing -
Distribution to
BE, NL, DE, AU, FR and
Eastern European countries
Cars are property of the genpos
Management of
car logistics
in all EU-countries
Sales and logistics
for whole Europe -
Engines are property of HE
1 central warehouse for Europe
Logistics for Parts and Accessories
in Europe, Middle East and Africa -
Parts are property of HE
Accessories are property of HACE
Logistics and warehousing -
Motorcycles are property of the genpo
Management
of MC-logistics
in all EU-countries
Logistics and warehousing -
Power Equipment is property of the genpo
Management
of PE-logistics
in all EU-countries
Logistics and warehousing -
Outboard engines are property of the genpo
Management
of PE-logistics
in all EU-countries
HLC-BE
Gent
HLC-DE:
Offenbach
HLC-UK
Swindon
HLC-SE
Malmö
HLC-IT:
Verona
HLC-ES:
Barcelona
HLC-AT
Wien
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
HE -BA - Euro Tax & Customs Department
Introduction new associates
Issued by Erik Pannekoek

6. Overview bonded warehouses ( status April 2006 )
HE ( Gent-B )
Cars-MC-PE-Parts-Access.-Engines
MH ( Barcelona-ES )
KD-parts
HEPE ( Orleans-F )
HUM ( Swindon-UK )
HP ( Sintra-PT )
Cars
HLC-UK ( Swindon-UK )
Car-MC-PE-ATV-Parts-Access
HME-S ( Santander-ES )
HLC-ES ( Barcelona-ES )
Parts-Accessories-MC
HLC-AT ( Wien-AT )
Parts-Accessories-MC-PE
HLC-DE ( Offenbach-DE )
Parts-Accessories
HLC-IT ( Verona-IT )
MC-PE-Parts-Accessories
HPL ( Warsaw-PL )
HME-FI ( Hanko-FI )
HME-DK ( Kölding-DK )
HME-S ( La Spezia-IT )
SVH ( Malmo-SE )
HLC-SE ( Malmo-SE )
Parts-Accessories-Engines
HIA ( Atessa-IT )
S.E.A.-warehouses
Local bonded wh
managed by HE
AGENT
AGENT
JUN 2000
FEB 2005
APR 2002
AGENT
AGENT
AGENT
AGENT
JUN 2001
MAR 2004
AGENT
JAN 2005
AGENT
FEB 2005
AGENT
AGENT
AGENT
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT

7. Honda’s business model
1 x HQ
4 x HQ product group
7 x Logistics centres
5 x Logistics systems
5 x Factories
25 x Sales companies
15 x Physical flows =
Multiple compliance procedures
Multiple compliance systems
Multiple compliance management
No overall management and control
Multiple cost, maintenance, FTE, etc…
As parts and accessories are stored at different HLC’s under the SEA regime, a shortage at one location can create a surpluss at the other location. The link between both discrepancies is not obvious for Honda so this may result in unnecessary payment of duties.
In TX its is not possible to compile shipments containing goods from different owners (HE/HACE) in one package.
With respect to Cars, the transporter of Cars is responsible for the dispatch procedure (Mosolf Benelux). Mosolf is not authorized to use TX, therefore Mosolf cannot use TX for creating the applicable customs documents.
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
Presentation Name (View / Header and Footer)

8. HEPE / HEPE HQ / HEPE FACT HME-UK / HME HQ / HUM FACT
Honda in Europe (SEA)
HEPE / HEPE HQ / HEPE FACT
HIA / HIA FACT
HME-N
HME-UK / HME HQ / HUM FACT
MH / MH FACT
HE HE HQ
HACE / HACE HQ
HME-S
HAP
HPFP HP
HME-DK
HME-FI
HPES
SVH
HPL
HSL
HHG
HCR
HME-EST
BH FACT
In relation with the business of Honda in Europe the following product groups can be distinguished:
Spare parts and accessories (PTS and ACC);
Motorcycles and Power equipment (MC/PE);
Engines (EEC);
Marine products (Marine)
Cars.
Different stock owners
7 logistic centers:
Belgium Germany UK Italy Spain Austria Sweden
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
Presentation Name (View / Header and Footer)

9. EURO TAX & CUSTOMS DEPARTMENT
European customs communication : actual
Between Customs, National agencies, community systems “Single window / one stop shop”
now:
communication between company and authorities on a one to one basis, using different communication tools depending on local authorities.
HONDA in Europe BE UK FR ES IT PT DE PL CZ AT
Other
Customs
interoperability is the means by which inter-linking of systems, information and ways of working will occur: within or between administrations, nationally or across Europe, or with the enterprise sector.
Efficient monitoring of goods flow
The recognition of AEOs and the facilitations granted to them requires that every EU customs administration has access to information on AEOs established in another Member State
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
Presentation Name (View / Header and Footer)

10. 1 controlling member-state
European customs communication : future
Between Customs, National agencies, community systems “Single window / one stop shop”
future:
communication between company and authorities based on obtained authorisation S.E.A. and A.E.O. through one Single Point of Access.
HONDA in Europe
Customs
1 controlling member-state
interoperability is the means by which inter-linking of systems, information and ways of working will occur: within or between administrations, nationally or across Europe, or with the enterprise sector.
Efficient monitoring of goods flow
The recognition of AEOs and the facilitations granted to them requires that every EU customs administration has access to information on AEOs established in another Member State
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
Presentation Name (View / Header and Footer)

11. Vision 2010: overview 2010 Full electronic measurement of trade 2008
2004
NES
NCTS
Local reporting
Seperate approach by
Honda companies
2006
EU-Directive
Paperless customs
( in Belgium )
Start integration logistical
data & common approach
by Honda in Europe
2008
( all over Europe )
Single Point of Access
for all European customs
reporting for Honda
2010
Full electronic
measurement of trade
( worldwide )
Full integration logistical data
& common approach
including worldwide suppliers
Honda participates in a partnership with Belgium Customs Authorities
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT

12. HEPE / HEPE HQ / HEPE FACT HME-UK / HME HQ / HUM FACT
Honda Europe (AEO)
HEPE / HEPE HQ / HEPE FACT
HIA / HIA FACT
HME-N
HME-UK / HME HQ / HUM FACT
MH / MH FACT
HE HE HQ
HACE / HACE HQ
HME-S
HAP
HPFP HP
HME-DK
HME-FI
HPES
SVH
HPL
HSL
HHG
HCR
HME-EST
BH FACT
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
Presentation Name (View / Header and Footer)

13. The importance of AEO for Honda
Authorised Economic Operator (AEO)
Enhanced S.E.A (legal binding framework)
A single guarantee
Centralised clearance concept
Certification, levels of simplification (Stairways)
Optimal use of simplified procedures
One authority to rule all procedures (One window)
To set up and support the Honda Shared Service Centre (HSSC) for tax compliance
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
Presentation Name (View / Header and Footer)

14. EURO TAX & CUSTOMS DEPARTMENT
Honda Europe
Towards a centralised approach of customs procedures
One competence centre in Belgium
Authorized Economic Operator principle
One point of reporting
Member state benefits from scale of Honda generating customs goodwill
Positive effect on clearance cost and clearance productivity
Alignment of procedures/business processes
Emphasis on electronic risk analysis requires overall data-control
Compliance and data-integrity result in higher certification level
Positive impact on improving release times
Tax & guarantee optimisation
Local operators
Avoid disruption between physical and administrative flow
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT
Presentation Name (View / Header and Footer)

15. EURO TAX & CUSTOMS DEPARTMENT
Honda’s Contribution
Current duties under SEA :
125 mio EUR (Perception costs +/- 25%)
Current duties not under SEA (other member states):
82 mio EUR
Estimated total duties in 2009 :
350 mio EUR
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT

16. EURO TAX & CUSTOMS DEPARTMENT
Conclusion
Honda wants to work towards a “win-win” situation:
For Honda in Europe (through Honda in BE)
For Belgian Customs Authorities
For Belgian economics
Honda wants to be a “front runner” in EU:
For Supply Chain Security
For Customs compliance
Honda Europe wants to collaborate with Belgian Authorities (pilot):
Previous commitments (expand existing SEA)
Further building on mutual trust and understanding
HONDA EUROPE – BA
EURO TAX & CUSTOMS DEPARTMENT