Chapter 6 B: Import Transportation - Tuesday …

1 Chapter 6 B: Import Transportation Chapter OVERVIEW 2 Import Transportation VENDOR OBLIGATIONS 3 PO CONFIRMATION FROM VENDOR (PRO forma invoice ) 4 SHIPPING AND DOCUMENTATION INSTRUCTIONS 10 CONTAINER INSPECTION CHECKLIST AND 7-POINT INSPECTION PROCESS 14 ROLE OF THE IMPORTER OF RECORD 19 COMMERCIAL INVOICES 19 COUNTRY OF ORIGIN MARKING REQUIREMENTS 20 PRODUCTS SUBJECT TO ANTIDUMPING AND/OR COUNTERVAILING DUTY INVESTIGATIONS/ORDERS 22 PREFERENCE PROGRAM ELIGIBILITY 22 FREQUENTLY ASKED QUESTIONS 23 2 Chapter OVERVIEW This Chapter provides Tuesday Morning requirements which relate to Import Transportation ( Import shipment booking, documentation, loading and invoicing. For information on packaging, labeling, payment, and all other aspects of working with Tuesday Morning, refer to the corresponding Chapter of the vendor manual.)

2 Your compliance with the terms and conditions described in this manual is required to conduct business with Tuesday Morning. This manual was designed so that we will be able to operate efficiently and economically as we process your product and deliver to our customers. It is imperative that you provide all necessary documentation to our buyer / forwarder/consolidator/ Import department. Please Complete the Factory Security Questionnaire pg. 209-211, 7- point container inspection checklist pg. 203-204 and return it by email 3 Import Transportation VENDOR OBLIGATIONS By agreeing to sell to Tuesday Morning, you are obligated to do the following: Issue a pro forma invoice to Tuesday Morning upon receiving a purchase order; Complete, and return to Tuesday Morning, the Factory Security Questionnaire and 7-Point Container Inspection Checklist (both enclosed) prior to shipping the merchandise to the United States; Comply with the terms of Tuesday Morning s Shipping & Documentation Instructions (enclosed); Comply with the requirements applicable to the importation of packaging materials ( , the Department of Agriculture s Regulations on wood packaging materials (WPM)).

3 Provide Tuesday Morning with information that may be necessary to meet its legal obligations as the Importer of Record; Ensure that the commercial invoices provided to Tuesday Morning are accurate and complete invoices that conform to the requirements set forth in this Manual; Mark products with their country of origin in accordance with the CBP and Federal Trade Commission (FTC) Regulations; Alert Tuesday Morning if any of your products are within the scope of an antidumping and/or countervailing duty (AD/CVD) investigation or order, and participate in AD/CVD investigations concerning any of your products; and If you certify that a product is eligible for preferential tariff treatment under a free trade agreement or other preference program, provide Tuesday Morning and/or CBP the documentation needed to make the preference claim ( , Certificates of Origin); maintain the necessary information to substantiate the claim for a period of five years; and cooperate with any investigations which relate to that claim.

4 Each of these vendor obligations is explained in greater detail in the pages that follow. By agreeing to comply with these vendor obligations, you are also agreeing to indemnify and hold harmless Tuesday Morning for any costs and expenses incurred as a result of your failure to perform any of the above acts. Furthermore, if you fail to comply with the vendor obligations set forth above with regard to any shipment, Tuesday Morning may, in its sole discretion: (1) cancel any unfulfilled purchase orders without penalty; (2) set-off or deduct the amounts of any costs and expenses against amounts owed to you, whether or not such costs or expenses were incurred before or after the amounts being set-off; and/or (3) suspend and withhold payment of any amount owed to you if Tuesday Morning deems such withholding or suspension reasonably necessary to ensure that sufficient amounts will be available to satisfy your continuing obligations to indemnify Tuesday Morning for the costs and expenses referenced above.

5 4 PO CONFIRMATION FROM VENDOR (PRO forma invoice ) The terms of a purchase order must be confirmed in writing by the vendor on a Pro forma invoice . It is your responsibility to return the following to Tuesday Morning upon receipt of each purchase order: Pro forma invoice (include information listed below); and Pro forma packing list with weight and volume information The Pro forma invoice is a confirmation of the purchase order for product shipping from the vendor. It is the agreement of terms between the buyer and vendor as stated on the Purchase Order. Shipping instructions will not be sent from Tuesday Morning until the competed Proforma invoice has been received by the buyer coordinator. Pro forma Invoices must include the following information: a.

6 Header of Proforma i. Must be on company letterhead including address ii. Full Shipping Window iii. FOB point of goods iv. Country of Origin v. Payment Terms including banking details ( Full name of the bank, full street address, beneficiary name, account number, swift number, IBAN number) b. Content (Details of Goods Purchased) i. Manufacturer Style Number ii. Quantity per each item iii. Description of each item iv. Cost per retail unit (Must include if US Dollar or other Currency) v. Inner/Masterpack per item vi. Cubic Meters (CBM) or Cubic Feet (CFT) per master carton c. Totals i. Total Quantity of all goods on order ii. Total Cost of Order iii. Total Cubic Meters (CBM) or Cubic Feet (CFT) of order iv. Total weight of all goods on order if weight maxes out prior to cube.

7 See Pro forma invoice (and packing list) example on page 206-207. 5 DATE:June 11, 2015PO #123456 MESSRS: Tuesday Morning Partners LTDPAYMENT:CASH AGAINST DOCUMENTS6250 LBJ Freeway Dallas, TX 75240 FOB:SHANGHAI, CHINASHIP DATE:August 22, 2015 CONTAINER:40' HIGH CUBECANCEL DATE:August 28, 2015LN#MFG Item #DescriptionVendor SizePurchase UnitsPurchase QuantityPRICE (US$)IPMPMP CubeTotal CubeTOTAL PRICE (US$)1abc123 Item $ 111533603, $ 2abc124 Item $ 111533003, $ 3abc125 Item $ 111536003, $ 4abc126 Item $ 111527902, $ TOTAL ALL:8701305013, $ TOTAL US DOLLARS:THIRTEEN THOUSAND AND FIFTY (US$13, )ONLYWE CONFIRM THE ABOVE MERCHANDISE WITH THE TERMS & CONDITIONS STATED TT your payment to the following account:Vendor xBeneficiary:Vendor xBank.

8 Bank Y123 Main Street, AnyCity, NC 27260 Swift code:Bank Code:#########Account no:#############PROFORMA INVOICEFOB Point: This is important as this is how we find out where to pick up goods and we also obtain freight rate from this location Details: Description style #, quantity, cost, etc. to insure Tuesday Morning and vendor agree on order Payment Terms & Booking information is important so that we know how it is to be paid and where CBM and or CFT: This is important as this is the information Tuesday Morning uses to assign the correct container allotment 6 VENDOR ZZ Buyer/Consi gneeTuesday Morning Inc6250 LBJ FREEWAY DALLAS, TX 75240 RateIPMPUS$ZZ-101Wi dgets WITH BOX PACKING412240 $ dgets WITH BOX PACKING412360 $ dgets WITH BOX PACKING412144 $ dgets WITH BOX PACKING412240 $ dgets WITH BOX PACKING412240 $ dgets WITH BOX PACKING412144 $ dgets WITH BOX PACKING412360 $ dgets WITH BOX PACKING412360 $ dgets WITH BOX PACKING412144 $ dgets WITH BOX PACKING412360 $ dgets WITH BOX PACKING412240 $ dgets WITH BOX PACKING412240 $ Am ount Chargeable (in w ords)TOTAL FOB US$ THOUSAND SEVEN HUNDRED AND SEVENTY THREE DOLLARS AND TWELVE CENTS1.

9 Please send us a copy of proform a invoice duly signed and stam ped for our records. BUYER'S STAMP & CASH AGAINST DOCSQ uantityFinishPackingPROFORMA INVOICEP roforma India10/25/2014 MUMBAIPO #Buyer #3x45 HQJune 27 2015 - July 03 2015 Ship DatePayment 123456Am ount US$VENDOR #SizeDescription 7 SHIPPING & DOCUMENTATION INSTRUCTIONS Complete shipping instructions will be sent via E-mail to the vendor by Tuesday Morning s Import Department no later than prior to start ship date As discussed above, shipping instructions will not be issued unless and until vendor sends Tuesday Morning s Buyer/Buyer Coordinator a Pro forma invoice confirming the terms of the PO. Overseas contact information as to who will be making the booking for the shipment needs to be sent to Please include name, phone number, and email address.

10 The shipping instructions include: 1. Shipping documents required 2. Forwarder to be used 3. Number of containers and sizes 4. Commodity description and the HTSUS number for each item 5. Shipping Window dates 6. FOB or port EX Factory location An example of Tuesday Morning s basic shipping instructions are included below. 8 PALLET SPECIFICATIONS AND REQUIREMENTS Wood packaging materials: The importation of wood packaging materials (WPM) such as pallets, crates, boxes, etc., poses a risk of introducing plant pests into the United States. In order to mitigate that risk, the Department of Agriculture (USDA) Regulations (7 CFR ) require that any regulated WPM must be (1) heated treated or fumigated with methyl bromide in accordance with the requirements set forth in 7 CFR 305; and (2) marked with the International Plant Protection Convention (IPPC) mark in accordance with 7 CFR (b)(2).