V. FACILITY DECLARATION AND AUTHORIZATION

 工廠申報和授權

Full and accurate visibility to all Facilities is essential to the successful operation of the ILS Program. Therefore, before beginning Disney branded production, you must declare and receive written authorization from Disney for each Facility you intend to use in the production of Disney branded products. You must submit a Facility and Merchandise Authorization (“FAMA”) Application to Disney for each Facility you intend to use. If your Facility is in a country where Disney requires ILS Audits, you must also conduct a qualified ILS Audit and submit a qualified preproduction ILS Audit Report that demonstrates the Facility is in compliance with the MCS.

Following Disney’s review and approval of the FAMA Application and any required ILS Audit Reports, you will receive a signed FAMA. Only a signed FAMA demonstrates Disney’s authorization of the Facility. You may commence production in a Facilityonly after the receipt of the signed FAMA for that Facility.  As used in this ILS Program Manual, the ‘production’ of Disney branded products includes the manufacture, processing, finishing, assembly, labeling, printing, and packaging of Disney branded products. You are sent monthly Licensee/Vendor Status Reports that include a list of Facilities in which you have indicated you are producing Disney branded products and a list of Facilities in which you have indicated you are no longer producing such products. Make sure you carefully review these Monthly Status Reports for accuracy.

FACILITY DECLARATION GUIDELINES

Facilities engaged in the production of Disney branded products and that must be declared to Disney include physical locations where:

* Disney branded components, subcomponents, and final products are produced, manufactured, assembled, printed, embroidered,engraved, etched, or subcontracted.

* Disney-branded agricultural products are processed, labeled, or packaged.

* Disney branded paper products are produced, processed, printed, or assembled.

At this time, locations that do not need to be declared, and for which no FAMA Application is required, include:

? Locations that produce blank or generic products, components or materials that do not contain, incorporate or apply any Disney intellectual property. However, such blank products and other materials may only be produced in and sourced from Permitted Sourcing Countries and may not be sourced from Prohibited Persons. Disney encourages you to purchase all products, components, and materials only from sources that have standards comparable to the Disney Code and consistent with other Disney policies.

? Raw materials suppliers, fabric mills or processors of generic commodity items such as cotton, metal and paper that do not contain, incorporate or involve the application of any Disney intellectual property. However, raw materials should only be produced in and sourced from Permitted Sourcing Countries and may not be sourced from Prohibited Persons. Disney encourages you to purchase raw materials only from sources that have standards comparable to the Disney Code and consistent with other Disney policies.

? Advertising agencies and similar service providers, unless they are in physical locations that must be declared as described above.

? Locations that produce only a negligible number of product samples used for the purpose of testing or seeking product approval.