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

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

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

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

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

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

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)

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)

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)

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)

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

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)

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)

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)

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

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