J.C. Penney Corp. Procurement Process: Booking, Cargo Delivery, and EPL

1. J.C. Penney Purchasing Corp. Operation Process Seven major Process • Booking • Sea Lock - CY Factory Pack • Cargo Receiving and EPL • USA New Customs Rule (24 Hours Manifest) /* Vessel Closing */ • Documents Verification • ASN (Advance Shipment Notice) • Document Sending

2. J.C. Penney Purchasing Corp. Operation Process – Booking Booking : • APLL Taipei provides monthly vessel schedule to JCP USA/Taiwan. • Vendor faxes booking form and carton label copy to APLL Taipei. • APLL Taipei checks carton label data against APLL system for: a. Contract#, Warehouse (DU#) and Lot#. b. Shipping Window – cargo allowed to ship 4 days earlier but no late shipment. • APLL Taipei verifies cargo destination by warehouse (DU#). Alliance for Haslet and Los Angeles Ports for Buena Park. • APLL Taipei arranges carrier according to cargo destination. • APLL Taipei sends booking authorization to JCP Taiwan office one day before vessel closing. • JCP Taiwan office authorizes early / late / special shipment. APLL Taipei confirms booking to vendor with carrier shipping order number (S/O#) and designated APLL warehouse. • APLL Taipei advises APLL booking# to vendor for EPL data transmitted to APLL as Pre-ASN. • APLL Taipei distributes Shipping Order (S/O) copy to APLL designated warehouses. • APLL Taipei verifies if vendor has joined JCP E-commerce program. • APLL Taipei emphasizes vendor to send EPL same day as cargo delivery.

3. J.C. Penney Purchasing Corp. Operation Process -Booking CY Factory pack: • JCP does not accept 20’factory pack. • Factory is requested to stuff container with minimum load-ability as per JCP Logistic Procedure (LP) :56 cbms - 8’6”, 65 cbms - 9’6” and 75 cbms - 45’. APLL Booking# for EPL: • APLL Taipei inputs booking details in APLL system and generates an APLL Booking# per contract. • APLL Taipei notifies APLL booking# with 6 digits per contract to vendor. • APLL booking# is a key for EDI among vendor, provider, APLL and JCP. • One contract with multiple containers => with one APLL booking#. • Different APLL booking# will be assigned for different shipment type. IE: Factory pack and cross dock, cargo will be assigned with two separate APLL booking#. Cargo delivery – Factory Pack :Vendor delivers cargo to carrier CY.

4. J.C. Penney Purchasing Corp. Operation Process - Cargo Delivery and EPL Inbound file to APLL • Vendor EPL => Provider => APLL Data Center => PRE-ASN (Factory File) to APLL Origin. • Vendor inputs EPL (packing list) designed by EPL software providers (EC.Vision, or Avery Dennison). • Vendor transmits EPL file to APLL by email attach through software provider on the same day of cargo delivery. • APLL Taipei checks Factory File (FF) status report on screen of APLL system. • APLL system reflects EPL data and audits error automatically every one hour. • APLL Taipei identifies error message, communicates with vendor / provider to settle. • APLL Taipei requests vendor to revise and resend EPL/ASN. • Vendor faxes packing list to APLL for manual input in case vendor does not send EPL. - Vendor needs to absorb P/L input charge. Cargo delivery : Cross Dock – Scanning: • Vendor loads cargo from factory and delivers cargo to APLL designated warehouses. • Vendor is requested to deliver cargo one day before vessel closing for label scanning. • APLL warehouse: receives cargo, scan carton labels and verifies all details against shipping order (S/O).

5. J.C. Penney Purchasing Corp.Operation Process -Cargo Delivery and EPL • APLL warehouse checks back APLL Taipei for any discrepancies. • APLL Taipei notifies vendor to fix problem for any variances. • APLL warehouse uploads scanning data into APLL system. • APLL warehouse receives cargo and updates receiving detail into system. • APLL warehouse scans carton labels and uploads scanning data to APLL system. • APLL communicates with vendor on problem labels. • APLL Taipei does trial run to verify barcode upload correctly. Seal locksea2.ppt • apply to each container both on: Factory Packed CY and • Cross Dock CY pack by APLL Vendor needs: • To apply "seal lock" request to APLL at booking stage, and • Sealing each JCP container with JCP nominated seal lock bars. • declare seal lock number as seal number on shipping order to carrier and APLL on before vessel cut closing. Closing Date • Vendor completes customs formality. • APLL warehouse stuffs cargo to container, stuffing by DU, Contract and Lot. • APLL warehouse inputs actual loading data and prepares manifest.

6. J.C. Penney Purchasing Corp. -Operation ProcessUSA New Customs Rule (24 Hours manifest) -Vessel Closing Shipping Order (S/O) is the KEY to declare all essential data: • Vessel /Voyage • Shipper’s complete name and address • The complete name and address of the consignee or the owner or owner’s representative, or identification number assigned by US Customs. • Precise cargo description and the Harmonized Tariff schedule (HTS) numbers to the 6-digitslevel under which the cargo is classified. • General Cargo, FAK(“freight of all kinds”) and STC (“said to contain”) are not allowed. • Weight • Quantity of the lowest external packing unit • Container numbers (for containerize shipments) and the seal numbers for all seals affixed to containers. .. (Especially for CY Factory pack vendor) • International recognized Hazardous material code when such material are being shipped (Dangerous and Hazardous cargo) .. Any revision /amendment must be submitted to carrier on/before cut off day. otherwise may have USD5,000 penalty by USA customs.

7. J.C. Penney Purchasing Corp. Operation Process USA New Customs Rule (24 Hours manifest) / Vessel Closing • Shipment Information (SI) SI data including: a. Shipping order (S/O) – by shipper through logistics b. Bill of lading instruction - by logistics c. CLP/MF (Container loading Plan /Container Manifest) – by Vendor/Logistics • Cut off Carriers advance vessel cut off one day early. All shipment information must be declared to carrier on and before 17:00 on cut off day. • No Late delivery All cargo are requested to deliver to APLL warehouse/Carrier terminal on the day of vessel cut off, carrier no longer accepts late delivery. Cargo are requested to pass customs inspection on cut off day. • Equipment change Not accepted by USA customs after EDI. • AMCC Advance Manifest Compliance Charge will due to each master bill of lading from Carrier effective on Mar.15.2003.

9. J.C. Penney Purchasing Corp. -Operation Process USA new customs rule (24 Hours manifest) /Vessel Closing 美國海關對裝貨港裝船前二十四小時艙單作業新規定 親愛的顧客， 世捷集運股份有限公司(APLL)因應美國海關對裝貨港裝船前二十四小時艙單作業新規定. 所有於11月25日起收貨出口/on board(開航)為12月2日的美國及加拿大線貨物懇請各出口廠商及報關行注意,務必確實配合如下: • 貨物必須依照各船公司所公佈之截止收貨日(CUT-OFF DATE)當天完成進倉,放行. • 各船公司及APLL均不再接受逾時/延遲進倉,或保留艙單. • 完整正確S/O資料須於該截止收貨日前提供與本公司,以符合艙單資料之要求。 • 所有的S/O資料的修正務必於該截止收貨日前提供予本公司, • 廠家自行拖櫃的裝櫃明細或修正資料務必於該截止收貨日前提供予本公司(包括貨櫃號碼，封條號碼)。 • S/O 資料須提供如下內容: a,完整的託運人（SHIPPER）及收貨人（CONSINGNEE）公司名稱及地址。 b.若收貨人（CONSINGNEE）是“TO ORDER”,需指明貨物所有人之公司名稱及地址於NORTIFY PARTY。 c.詳細的貨品名稱； 海關不允許概括性的品名如“FREIGHT ALL KIND” (FAK) /“SAID TO CONTAIN”(STC)/ GENERAL CARGO / CHEMICAL GOODS / FOODSTUFF等。 d.詳細的貨品細包裝及數量 .如：該貨櫃裝有200 CARTONS在10 PALLETS上, 資料必須記載200 CARTONS (= 10 pallets)，而非 10 PALLETS。 e.貨物材數,重量。 f.危險貨品須有IMO CLASS及 UN NUMBER。 貴公司的S/O資料於船到達裝貨港前二十四小時經由船公司傳遞艙單至美國海關， 如未能於規定之時間內提供完整正確出口資料，而造成退關或任何費用,責由廠商負責. 懇請 貴公司務必確實配合 !! 若對以上摘要簡述有任何問題,請與本公司業務代表連繫. 世捷集運股份有限公司 APL Logistics Taiwan Ltd. Tel: 2514-5948,2514-5933,2514-5942,2514-5957 FAX: 2514-0507,2514-0822,2514-0814,2514-0789 11月25日2002年

10. J.C. Penney Purchasing Corp. - Operation Process Documents Verification DocumentsVerification(Vessel closing) • Vendor presents all original shipping documents to APLL Taipei for documents verification. Commercial documents including: JCP Contract copy (with final copy and not draft) Commercial Invoice Packing List (JCP format) VISA (for Textile) Quota statement Multiple country declaration Beneficiary Statement Certificate of origin Interim footwear invoice (for footwear) • APLL Taipei verifies documents according to JCP instruction. • APLL Taipei fills in JCP “document verification checklist” per contract while verify documents. • APLL Taipei clarifies with vendor/JCP Taiwan for problem documents. • Vendor revises, and resubmits corrected documents to APLL Taipei. • APLL Taipei prints Cargo Receipt (CR).

11. J.C. Penney Purchasing Corp. - Operation Process ASN and Document sending Vessel sails • APLL Taipei picks up Sea Way Bill of Lading from carrier. One contract one Sea Way Bill of Lading. • APLL Taipei releases C/R to vendor after verifying document. ASN – Within 3days After vessel sails • APLL Taipei inputs packing detail into APLL system for shipment without vendor’s EPL. • APLL Taipei checks EPL receiving status (sent by vendor) (for all shipment) • APLL Taipei coordinates with Vendor/software Provider to solve EPL errors and requests revision. • APLL Taipei trial run Pre-ASN report, verify data again, makes sure no error exist. • APLL Taipei sends Advance Shipping Notice (ASN) to JCP USA. Document sending - Within 5 daysAfter vessel sails • APLL Taipei matches document with container manifest and carrier BL. • APLL Taipei prepares JCP document transmittal standard form. • APLL Taipei sends complete documents to destination broker – EI and JCP USA. • APLL Taipei sends document dispatch advice (DTA) with Contract#, carrier BL and pouch information via email to EI same day of document sent.