1 Commercial Deduction GuidelineCONFIDENTIAL HYUNDAI MERCHANT MARINE Co. Ltd. HMM DEM & DET Commercial Deduction Guideline CCO / SST OCT. 2015

2 Contents 1. How to differentiate Commercial and Operational Deduction?2. D&D Commercial Deduction Request Process Flow 3. How to upload D&D Commercial Deduction Request? Supporting GAUS program (#5027) Who should be on online approval line (by region/deduction amount) How to process online approval How to upload application in GAUS (#5021)

3 D&D NOT caused by Carrier(HMM)’s Fault1. How to differentiate Commercial and Operational Deduction? Commercial Operational D&D NOT caused by Carrier(HMM)’s Fault Customer’s request Cargoes with no claim party (i.e. Customer’s bankruptcy) Export DEM caused by Rollover Customs idling/holding Disposal Auction Abandonment Terminal Strike/Fault Weather Condition D&D caused by Carrier(HMM)’s Fault - Service Failure

4 2. D&D Commercial Deduction Request ProcessY N Operational Negotiate Deduction amount Customer requests for D&D Deduction Acceptable? Online Approval Processing Approve? Invoice/Payment Upload D&D Deduction Application(#5021) by (a) Any HMM member (Sales rep., CSR, DOC, Pricing, etc.) by (a) and Customer by Customer by (a) by the Authority Body (Please refer to slide page 6-8)

5 3. How to upload D&D Deduction Request?(1) Supporting GAUS program (#5027) ▶ #5027: You can get information of DET/DEM amount and idling days (Contract deduction is already applied in this outstanding) ① Click Destination or Origin based on where D&D occurred, then input B/L No. and click Inquiry ② T: DET D: DEM ③ By clicking on the right mouse button, you can get detailed information as such ④ Total number of CNTRs and D&D amount are shown at the bottom

6 3. How to upload D&D Deduction Request?(2) Who should be on online approval line? (by region/deduction amount) ① Applicant should address D&D deduction issue to each regional office where D&D occurs, not where he/she belongs to. ② Below tables show approval line by deduction amount and region(where D&D occurs), and all applicants should follow each case. ▶ HMM overseas & agents (AHQ HASA, AHQ LATIN, EHQ, SHQ, CHQ) Deduction Amount (Per B/L) Online Approval GAUS Confirm Drafter 1st 2nd Final Co-Op Application in #5021 Confirmation in #5023 Less than US$ 1,000 No Need for Online Approval Processing Any Concerned Party Agent Head (where D&D incurred) $1,000 ~ $4,999 ※ AHQ: RM(Regional Mgr) - RHQ Head (where D&D incurred)　 $5,000 ~ CCO (Mr. JY Choi) Sales Strategy Team (Mr. CW Park, Ms. Roxy Lee) Sales Strategy Team (on behalf of CCO) ※ Additional Co-Op Party by Region 1) AHQ HASA, LATIN : Mr. Choi, Youngsoon 2) EHQ : Mr. JH(Jaehyuk) Lee 3) SHQ : Mr. Yoo, Guanryong 3) Middle East : Mr. Park Jaehyun, Mr. Yoo, Guanryong 　※ Before you upload D&D deduction application through GAUS #5021, make sure to get a valid online approval

7 3. How to upload D&D Deduction Request?(2) Who should be on online approval line? (by region/deduction amount) ▶ Hong Kong (Guangzhou, Shenzhen, Xiamen, Hong Kong) Deduction Amount (Per B/L) Online Approval GAUS Program Drafter 1st 2nd Final Co-Op　 Application in #5021 Confirmation in #5023 Less than US$ 1,000 No Need for Online Approval Processing Any Concerned Party Head of each branch $1,000 ~ $4,999 - HMM HKG Head 　- $5,000 ~ CCO (Mr. JY Choi) 　Sales Strategy Team (Mr. CW Park, Ms. Roxy Lee) Sales Strategy Team (on behalf of CCO) ▶ Japan, Taiwan, Vladivostok Deduction Amount (Per B/L) Online Approval GAUS Program Drafter 1st Final Co-Op Application in #5021 Confirmation in #5023 Less than US$ 1,000 No Need for Online Approval Processing Any Concerned Party Agent Head (where D&D incurred) $1,000 ~ $4,999 CCO (Mr. JY Choi) Sales Strategy Team (Mr. CW Park, Ms. Roxy Lee) Sales Strategy Team (on behalf of CCO) $5,000 ~

8 3. How to upload D&D Deduction Request?(2) Who should be on online approval line? (by region/deduction amount) ▶ Korea Deduction Amount (Per B/L) Online Approval GAUS Confirm Drafter 1st 2nd Final Co-Op Application in #5021 Confirmation in #5023 Less than US$ 1,000 No Need for Online Approval Processing Any Concerned Party Head of Sales Team (Import/Export) $1,000 ~ $4,999 - Head of Korea Sales Division Head of Korea Sales Division $5,000 ~ CCO (Mr. JY Choi) 　Sales Strategy Team (Mr. CW Park, Ms. Roxy Lee) Sales Strategy Team (on behalf of CCO) 감면 금액 범위 (Per B/L) Online 승인 GAUS 승인 기안자 1st 2nd Final Co-Op 기안 in #5021 승인 in #5023 US$ 1,000 미만 Online 승인 프로세스 불필요 누구나 (제한 없음) Sales팀 팀장 (수입/수출) $1,000 ~ $4,999 - 한국영업본부장 $5,000 이상 CCO (최준영 상무) 영업전략팀 (박찬우 대리, 이주영 사원) 영업전략팀 (CCO 대리)

9 3. How to upload D&D Deduction Request?(3) How to process online approval ① Click Support – Apply & AFS & Reserve – Approval in Portal. ② Click Draft

10 3. How to upload D&D Deduction Request?(3) How to process online approval ③ Click Common – English- D&D Commercial Deduction Request Form and click Confirm

11 3. How to upload D&D Deduction Request?(3) How to process online approval ④ Click Approval Line and set right approval line, then click Apply Apr. line for applying

12 3. How to upload D&D Deduction Request?(3) How to process online approval ⑤ Fill in the blank and click Submit for submitting D&D Deduction Request Make sure to input B/L No. in this section for data management purpose.

13 3. How to upload D&D Deduction Request?(4) How to upload application in GAUS (#5021) ① Input Agent, choose Target(Destination/Origin), input B/L No., then click Inquiry ② Click One By One or All Together You can upload request of each container respectively by clicking One By One, or you can upload request of all containers in one request form by clicking All Together (It is advised to upload CNTRS with same B/L No. all together)

14 3. How to upload D&D Deduction Request?(4) How to upload application in GAUS (#5021) ③ Input data on yellow cells and click Save, then click Request Send You can either type deduction % or deduction amount Choose Commercial Reason for The Reasons For Request, and choose detailed reason for request(A/C request, Rollover, etc.) Choose the Confirm Office based on Approval line guide