Li & Fung (Trading) Ltd.

CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM

- MANUFACTURER SECURITY QUESTIONNAIRE -

Name of Manufacturer:

Factory Address:

Product Items:

Li & Fung (Trading) Limited has adopted the C-TPAT guideline as part of its efforts to enhance supply chain security of goods orders by its principals. Please complete the following questions in respect of the current security procedures at the factory location listed above. If a manufacturer has multiple factory locations, please complete a separate questionnaire for each location. Please return the original completed questionnaire, which must be signed by an authorized person of your factory, to LF Ten Compliance Li & Fung (Trading) Ltd.

This questionnaire addresses the following 7 areas:

Covered by:

I. Container/Closed Truck Security Questions 1-18

II. Physical Access Controls Questions 19-30

III. Personnel Security Questions 31-35

IV. Procedural Security Questions 36-50

V. Security Training and Threat Awareness Questions 51-53

VI. Physical Security Questions 54-82

VII Information Technology Security Questions 83-87

C-TPAT Standard Questionnaire – English Version Page 1 of 10

No. Questions Yes

No

NA

I. Container / Closed Truck Security

1. Does your factory utilize shipping containers for incoming or outgoing goods?

2. For CFS goods, does your factory use closed trucks, with locks, to transport loose cartons, delivered to the forwarders(s)?

3 Does your factory appoint a designated employee to monitor the container loading and unloading process?

A. Container Inspection

4. Does your factory maintain standard procedures for shipping containers in respect of : a. Inspect containers before loading, including

I. Front wall II. Left side

III. Right side IV. Floor V. Ceiling / Roof

VI. Inside / Outside doors VII. Outside / Undercarriage

b. Container numbers?

c. Does your factory appoint a designated employee to check any hidden compartments or walls in the container? Is the truck interior capacity is correct to the size of truck.

B. Container Seals

5. Does your factory have a designated employee to inspect and distribute the container seals?

6. Does your factory have a designated employee to monitor the sealing of container?

7. Does your factory keep the record of :

a. The name and driving license number of the driver?

b. The registration number of the tractor/trailer

c. Serial numbers or Forwarders’ Booking numbers

d. Affixing seals or Sealing numbers :

e. Replacing seals or Transshipment reference?

f. Recording ex-factory time of containers?

g. Recording seals or Cargo receipt?

h. Tracking seals or Bill of Lading number?

8. Does your factory use high security mechanical seals for affixing all loaded containers / closed truck?

9. Does the mechanical seals meet the current PAS ISO 17712 standards?

C. Container Storage

10. Does your factory store shipping containers (empty, partially loaded or fully loaded) in a secure area within your factory premises to prevent unauthorized access?

11. Does your factory have procedures for reporting any unauthorized entry into containers or container storage areas?

C-TPAT Standard Questionnaire – English Version Page 2 of 10

D. Closed Truck Security

12. Does your factory have a designated employee to inspect and distribute the mechanical locks for closed truck locking?

13. Does your factory have a designated employee to monitor the locking and unlocking of the closed truck?

14. Does your factory keep record of:

a. The registration number of the closed truck?

b. The name and the driving license of the driver?

c. The name of the employee who locks and unlocks the closed truck?

d. The time when the closed truck leaving factory and arriving forwarder’s warehouse?

15. Does your factory use high security mechanical locks for locking all closed truck?

16. Does your factory have a designated employee to monitor the loading and unloading process of the closed truck?

17. Does your factory own the closed trucks or use regular contracted trucking service for CFS goods?

18. Does your factory have a designated person to keep the key and escort the merchandise transporting from factory to forwarder’s warehouse?

C-TPAT Standard Questionnaire – English Version Page 3 of 10

II Physical Access Control

A. Employees

19. Do your factory employees display badges or photo Ids that identify them as factory employees while at work?

20. Does a security guard check your factory employees for these badges or photo Ids during the working hours as well as after office hours :

a. When employees enter and leave your factory?

b. When employees re-enter your factory?

21. Does your factory implement procedure to prevent unauthorized employee to access to those secure areas, such as warehouse, container loading area, etc.

B. Visitors

22. Does your factory keep records of all visitors?

23. Do all visitors have to present photo identification when they enter your factory?

24. Do all visitors have to be escorted by factory employees and visibly display temporary identification?

25. Does a security guard or receptionist notify the factory employee who will meet the visitor before allowing the visitor and the visitor’s vehicle to enter your factory?

C. Deliveries

26. Do vendors have to present photo identification when they enter your factory?

27. Does your factory implement procedures to periodically screen arriving packages and mail to prevent potential threats?

D. Challenging and Removing Unauthorized Persons

28. Does your factory implement any internal procedure to identify, challenge and address any unauthorized persons?

E. Securing Physical Access

29. Does your factory management or security personnel adequately control the issuance and removal of employee, visitor and vendor identification badges?

30. Does your factory implement procedures to control the issuance, changing and removal of access devices (e.g. keys, key cords, etc.)?

C-TPAT Standard Questionnaire – English Version Page 4 of 10

III Personnel Security

A. Pre-Employment Verification

31. Does your factory require all job candidates to complete a written job application, including the personal information, employment history and reference of the applicants?

32. Does your factory conduct interviews of all job candidates to verify application information, such as employment history and reference?

B. Background checks / investigations

33. Does your factory conduct background checks and investigations of perspective employees prior to employment?

34. Does your factory periodically check and reinvestigate the background of employees whose positions are sensitive?

C. Personnel Termination Procedures

35. Does your factory implement procedures to remove identification, facility and system access including return of keys, keycards, etc., for personnel whose employment has been terminated?

IV Procedural Security

A. Documentation Processing

36. Does your factory keep a written record of all movement of :

a. Raw materials

b. Components and semi-finished products

c. Finished goods

In and out of storage areas?

37. Does your factory have procedures in place checking the record of movement of in and out cargo and reporting any incorrect records?

38. Does your factory implement procedures to document and control computer access and information?

39. Does the security guard patrolling activity documented?

40. Does your factory keep a quarterly maintenance log book on all electronic devices?

C-TPAT Standard Questionnaire – English Version Page 5 of 10

B. Manifesting Procedures

41. Does your factory have written procedures to make sure that information received from foreign suppliers is reported accurately and timely?

42. Has your factory appointed a supervisor for checking the foreign suppliers’ information?

43. Does your factory request your staff to report the information received from foreign suppliers within reasonable time periods?

C. Shipping and Receiving

44. Does your factory appoint a supervisor for overseeing incoming and outgoing goods (such as raw materials, semi-finished goods, finished goods and other items)?

45. Does your factory check arriving cargo against advance information on the cargo manifest?

46. Does your factory verify departing cargo against purchase or delivery orders?

47. Does your factory verify driver’s identification before cargo is received or released?

48. Does your factory maintain written records in respect of incoming and outgoing goods that cover the following areas :

a. Date of receipt and date of shipment?

b. Description and marking of the goods?

c. Weight of the goods?

d. Quantity of the goods?

D. Cargo Discrepancies

49. Does your factory have standard practice to monitor and report shortages and overages in incoming and outgoing goods?

50. Does your factory have procedures to notify local police or local customs if your factory finds unusual circumstances (for example, a substantial shortage or overage) or illegal activities (for example, introduction of contraband or weapons into a shipment of outgoing goods) in respect of incoming or outgoing goods?

V Security Training and Threat Awareness

51. Does your factory hold training programs for employees in the following areas :

a. Preventing unauthorized persons from entering to your factory?

b. Preventing product tampering?

c. Recognizing and reporting illegal conduct and activities by employees, including internal conspiracies, tampering, and trespassing?

d.

52. Does your factory offer an incentives (for example, money and / or time off) to employees for participating in these programs?

C-TPAT Standard Questionnaire – English Version Page 6 of 10

53. Does your factory provide specific training program to assist employees for :

a. maintaining cargo integrity?

b. recognizing internal conspiracies, tampering, and trespassing?

c. monitoring and control access to secure areas?

d. receiving and opening mail and parcel?

e. handling in and out cargo?

VI Physical Security

A. Fencing (External / Internal)

54. Do your factory premises have an outside wall or an outside fence? If yes, please specify how high. ( ft.)

55. Do your factory premises have a cargo entrance (receiving and loading) separate from the front entrance?

56. Do your factory premises have a separate cargo handling and storage area?

57. Do your factory premises have been segregated domestic, international, high value and hazardous cargo?

58. Is there a separate storage area for :

a. raw materials?

b. semi-finished goods?

c. finished goods?

d. dangerous goods?

59. At the end of a working day, will all packed finished goods be moved from the packing area to the finished goods storage area?

60. Are all fences being taken regular inspection for integrity and damage?

B. Gates and Gate House

61. Does the front entrance to your factory premises have security guard?

62. Does the cargo entrance to your factory premises have security guard?

C. Parking

63. Are the parking areas outside your factory premises for cargo-receiving and cargo-loading separated from the packing areas for private vehicles?

D. Building Structure

64. From what materials are the factory premises made of :Wood_____, Brick_____, Concrete_____, Factory Building_____, Others_____

(If a combination of materials, please select the material to construct the walls and ceiling of the factory.)

65. Are the buildings properly maintained by periodic inspection and repair?

E. Locking Devices and Key Controls

66. Are all entrances to your factory premises locked after working hours?

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67. Do the following entrances and storage areas in your factory premises have a lock? a. Front entrance

b. Cargo entrance

c. Raw materials storage areas

d. Finished goods storage areas

e. Dangerous goods storage areas

68. Do management or security personnel control the issuance of all the locks and keys?

F. Lighting

69. Does the lighting outside your factory premises cover all cargo and container storage areas?

70. Does the front entrance to your factory premises have sufficient lighting?

71. Does the cargo entrance to your factory premises have sufficient lighting?

72. Is there lighting throughout your factory premises?

G. Alarms System and Video Surveillance Cameras

73. Does the following areas have alarms or video surveillance cameras : a. Front entrance

b. Cargo entrance

c. Windows

d. Raw materials storage areas

e. Finished goods storage areas

74. Does your factory keep CCTV records at least 60 days?

H. Security Guard

75. Does your factory or factory building employ or hire security guard?

76. Days of the week security guards are on duty?_____ days of the week.

77. Hours of the day security guards are on duty?_____ hours of the day.

78. Do the security guards carry beepers or mobile phones?Beepers _____ ; Mobile phones _____ ; Others _____

79. Do the security guards regularly check all enclosures (for example doors, windows, gates and fences) including the shipping and receiving area, to make sure that they are in good working order?

80. Does your factory have an internal communication system to contact security guards or building management if a problem arises? If yes, please describe :Intercom_____, Telephone_____, Walkie-talkie_____, Others_____

I Off-site Facilities

C-TPAT Standard Questionnaire – English Version Page 8 of 10

81. Does your factory have any off-site warehouse or packaging facilities?

82. Does your factory store the finished goods in the off-site warehouse?

VII Information Technology Security

A. Password Protection

83. Does your factory have written procedures that require employees to change their network / computer passwords on a regular basis?

84. Does your factory provide IT security training to employees?

B. Accountability

85. Does your factory maintain an Information Technology (IT) security policy addressing IT security issues?

86. Does your factory conduct periodic internal audits of your IT systems?

87. Does your factory have a standard practice to notify local police or party concern in case of your IT system be abused ?

* * * * *

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C-TPAT Standard Questionnaire – English Version Page 9 of 10

I, on behalf of [Name of Manufacturer]

hereby certify that the above answers are true and correct to the best of my knowledge. I

also received a copy of the LiFung Code of Security Compliance together with this

questionnaire.

Signature:

Name:

Title:

Date:

C-TPAT Standard Questionnaire – English Version Page 10 of 10