IV. SOURCING RESTRICTIONS  采购限制

As a Licensee or Vendor, you may only produce Disney branded products in and source from Permitted Sourcing Countries. The use of Facilitiesin certain Permitted Sourcing Countries is subject to additional conditions as described in this ILS Program Manual.

PERMITTED SOURCING COUNTRIES

As part of its ILS Program, Disney uses the World Bank’s Worldwide Governance Indicators (“WGI”) as a primary resource for evaluating a country’s risk and for establishing Disney’s policies relating to ILS Audit requirements. These indicators evaluate the degree of governance across six elements:

• Voice and Accountability

• Political Stability and Absence of Violence

• Government Effectiveness

• Regulatory Quality

• Rule of Law

• Control of Corruption

The list of Permited Sourcing Countries includes those countries that achieve a requisite ranking under the WGI as well as those where the International Labour Organziation and the International Finance Corporation operate a Better Work Program. Based upon their WGI rankings, Disney requires the submission of ILS Audit Reports for use of Facilities in designated Permitted Sourcing Countries.

Disney currently applies this ILS Audit requirement to Facilities in any Permitted Sourcing Country with a WGI average percentile rank of less than 65% and greater than 25%. Disney also applies this ILS Audit requirement to Facilities in countries on the Permitted Sourcing Countries list as the result of a Better Work program.

For Facilities in Permitted Sourcing Countries where ILS Audits are required, you must provide Disney with qualified ILS Audit Reports demonstrating compliance with the MCS prior to and as a condition of the production of Disney branded products and periodically during continued use of the Facility.