Download - Saks Canada Addendum · PDF fileSAKS CANADA ADDENDUM ... Thank you for being a part of the Saks Fifth Avenue vendor family. Our vendor relationships have always played a very

SAKS CANADA

VENDOR STANDARDS MANUAL

ADDENDUM

TABLE OF CONTENTS

SAKS CANADA ADDENDUM 1 REVISED 04-03-2015

TABLE OF CONTENTS 1 TO OUR VENDOR PARTNERS ................................................................................................................................... 4

1.1 HOW TO USE SAKS CANADA ADDENDUM ..................................................................................................... 4

2 PRODUCT LABELING REQUIREMENTS .................................................................................................................... 5

3 JEWELRY TECHNICAL MANUAL ................................................................................................................................ 5

4 COSMETIC REGULATORY REQUIREMENTS FOR CANADA ................................................................................... 5

5 TICKET STANDARDS .................................................................................................................................................. 6

5.1 FULL LINE TICKET FORMATS ........................................................................................................................... 6

5.1.1 VERTICAL TICKET ......................................................................................................................................... 6

5.1.2 HORIZONTAL TICKET ................................................................................................................................... 6

5.2 OFF 5TH TICKET FORMATS ............................................................................................................................. 7

5.2.1 TICKET FORMAT BY CATEGORY ................................................................................................................. 7

5.2.2 DUAL RETAIL TICKETS ................................................................................................................................. 7

5.2.3 SINGLE RETAIL TICKETS ............................................................................................................................. 8

5.2.4 DUAL RETAIL WITH SAVINGS PERCENTAGE TICKETS ............................................................................ 8

6 PACKING AND SHIPPING REQUIREMENTS .............................................................................................................. 9

6.1 POLYBAG REQUIREMENTS .............................................................................................................................. 9

6.2 CARTON SPECIFICATIONS ............................................................................................................................... 9

6.3 PALLETIZATION ................................................................................................................................................. 9

6.4 DISTRIBUTION CENTER .................................................................................................................................... 9

6.5 ONLINE APPOINTMENT BOOKING ................................................................................................................... 9

6.5.1 APPOINTMENT BOOKING CONTACTS ...................................................................................................... 10

6.5.2 HOW TO GET A USER-ID AND PASSWORD .............................................................................................. 10

6.5.3 USER-ID AND PASSWORD RULES ............................................................................................................ 10

6.6 DELIVERY APPOINTMENT SCHEDULING ...................................................................................................... 10

6.7 TIMING OF THE APPOINTMENT REQUESTS ................................................................................................ 10

6.8 DELIVERY APPOINTMENT SCHEDULING ...................................................................................................... 11

6.8.1 CANADIAN TRANSIT TABLE ....................................................................................................................... 11

6.8.2 US TRANSIT TABLE ..................................................................................................................................... 12

6.9 CARRIER ROUTING ......................................................................................................................................... 13

6.10 CUSTOMS CLEARANCE .................................................................................................................................. 13

IMPORT LOGISTICS .......................................................................................................................................................... 14

7 IMPORT LOGISTICS CONTACTS ............................................................................................................................. 14

7.1 CONSIGNEES AND NOTIFYING ...................................................................................................................... 14

7.1.1 CONSIGNEES .............................................................................................................................................. 14

7.1.2 NOTIFYING PARTIES .................................................................................................................................. 14

8 CUSTOMS CLEARANCE PORTS .............................................................................................................................. 15

9 AIR SHIPMENTS ........................................................................................................................................................ 15

9.1 AIR TERMS ....................................................................................................................................................... 15

9.2 AIR PROCESS .................................................................................................................................................. 15

9.2.1 AIR COLLECT SHIPMENTS ......................................................................................................................... 15

TABLE OF CONTENTS


9.2.2 AIR PREPAID SHIPMENTS .......................................................................................................................... 15

10 OCEAN TRANSPORTATION ................................................................................................................................ 16

10.1 TRANSIT TIMES ............................................................................................................................................... 16

10.2 TRANSIT TIMES – ASIA ................................................................................................................................... 17

10.3 ORIGIN BOOKING AND SHIPPING PROCEDURES ....................................................................................... 18

10.3.1 BOOKING PROCEDURE ......................................................................................................................... 18

10.3.2 BOOKING APPROVAL ............................................................................................................................. 18

10.3.3 BOOKING FORMAT ................................................................................................................................. 19

10.3.4 SHIPPING ORDER BOOKING REQUIREMENTS ................................................................................... 19

10.4 IMPORT DOCUMENTS ..................................................................................................................................... 19

10.5 FCR RELEASE (FCR: FORWARDER’S CARGO RECEIPT) ............................................................................ 20

10.6 CARGO ............................................................................................................................................................. 20

10.6.1 CARGO SEQUENCE REQUESTED BY SAKS/HBC ................................................................................ 20

10.6.2 CFS CARGO DELIVERY .......................................................................................................................... 20

11 DOCUMENTATION ............................................................................................................................................... 20

11.1 REQUIRED DOCUMENTS ................................................................................................................................ 20

11.2 CANADA CUSTOMS INVOICE ......................................................................................................................... 21

11.2.1 SAMPLE CANADIAN CUSTOMS INVOICE ............................................................................................. 23

11.3 FOOTWEAR REQUIREMENTS ........................................................................................................................ 24

12 FOREIGN DIRECT PAYMENT REQUIREMENTS AND PROCEDURES .............................................................. 25

12.1 REQUIREMENTS .............................................................................................................................................. 25

12.2 PAYMENT PROCEDURES ............................................................................................................................... 25

12.3 TRACING WIRE TRANSFER PAYMENTS ....................................................................................................... 26

12.3.1 BANK INFORMATION FORM................................................................................................................... 26

13 TARIFF TREATMENTS ......................................................................................................................................... 27

13.1 GENERAL PREFERENTIAL TARIFF TREATMENT (GPT) .............................................................................. 27

13.2 LEAST DEVELOPED COUNTRY TARIFF TREATMENT (LDCT) ..................................................................... 27

13.2.1 SHIPPING REQUIREMENTS ................................................................................................................... 27

13.2.2 RULES OF ORIGIN .................................................................................................................................. 28

13.2.3 TEXTILE AND APPAREL GOODS ORIGINATING IN A LEAST DEVELOPED COUNTRY (LDC) CERTIFICATE OF ORIGIN ......................................................................................................................................... 29

TABLE OF CONTENTS


LIST OF FIGURES Figure 3 A: Vertical Ticket Requirements ............................................................................................................................. 6

Figure 3 B: Vertical Ticket Sample ........................................................................................................................................ 6

Figure 3 C: Horizontal Ticket Requirements ........................................................................................................................ 7

Figure 3 D: Horizontal Ticket Samples ................................................................................................................................. 7

Figure 3 E: Horizontal Dual Retail Ticket Samples ............................................................................................................... 8

Figure 3 F: Vertical Dual Retail Sample ............................................................................................................................... 8

Figure 3 G: Horizontal Single Retail Ticket Samples ............................................................................................................ 9

Figure 3 H: Vertical Single Retail Ticket Samples ................................................................................................................ 9

Figure 3 I: Horizontal Dual Retail with Savings Ticket Samples ......................................................................................... 11

Figure 3 J: Vertical Dual Retail with Savings Ticket Sample .............................................................................................. 11

Figure 9 A: Sample Canadian Customs Invoice ................................................................................................................. 26

Figure 10 A: Sample Bank Form ........................................................................................................................................ 29

INTRODUCTION


1 TO OUR VENDOR PARTNERS

Thank you for being a part of the Saks Fifth Avenue vendor family. Our vendor relationships have always played a very valuable part in our business. Now that supply chain efficiencies are the key to remaining competitive and satisfying our customers, it has become critical that we develop collaborative partnerships with vendors who have a similar commitment to these technologies. We expect our vendors to support us by shipping merchandise “floor ready,” trading with our required EDI transactions, and following our shipping, packing and invoicing guidelines.

We have dedicated ourselves to ensure our vendor standards are in agreement with the direction of the retail industry. As technology advances, we will continue to review and adopt those enhancements that assist us in achieving our corporate initiatives.

1.1 HOW TO USE SAKS CANADA ADDENDUM

This addendum is intended to outline the labeling, ticket and shipping requirements our vendor partners must follow when doing business with Saks Fifth Avenue Full Line Canada and OFF 5TH Canada.

As you page through this addendum, you will notice headings and/or text that are printed in red. This is to help you identify changes or additions from previous Saks Fifth Avenue policies. We have also provided you a summary listing highlighting major revisions following the index pages. In addition, overlooked requirements or information have been highlighted in bold or various colored text. All Compliance requirements and responsibilities are outlined in the Saks Vendor Standards Manual and Saks E-commerce Vendor Standards Manual located at https://www.saksincorporated.com/vendorrelations/sfaevendors.asp under “Master Document and Announcements”

For questions or concerns, please contact Vendor Relations at [email protected].

PRODUCT LABELING REQUIREMENTS


2 PRODUCT LABELING REQUIREMENTS

Saks requires that all merchandise is labeled with the information set forth by the U.S. Federal Trade Commission (FTC) and Canada Competition Bureau. It is the vendor’s responsibility to meet guidelines in addition to all federal and state regulations. All label content must be in French and English of equal prominence. To help our suppliers to understand our performance and safety standards, please review the Softlines Technical Manual located at https://www.saksincorporated.com/vendorrelations/sfaevendors.asp. For more on Canada Competition Bureau, visit http://canada.justice.gc.ca . For Health Canada, visit www.hc-sc.gc.ca. For federal labeling requirements for textile and wool products enforced by the Federal Trade Commission (FTC), visit http://www.ftc.gov.

3 JEWELRY TECHNICAL MANUAL

Saks is committed to providing quality merchandise that is current and exclusive for our customers. We also value our relationships with suppliers to commit to our high standard of quality assurance that ultimately will support business, reduce the number of claims, and promote sales. The purpose of the manual is for our jewelry suppliers to understand performance and safety standards. For a copy of the Jewelry Technical Manual, please visit https://www.saksincorporated.com/vendorrelations/sfaevendors.asp.

4 COSMETIC REGULATORY REQUIREMENTS FOR CANADA

Cosmetic products are subject to specific legal requirements pursuant to the Food and Drugs Act and Cosmetic Regulations and also the Consumer Packaging and Labelling and Regulations. For a copy of our Vendor Declaration Letter Cosmetic Regulatory Requirements in Canada & US, please visit https://www.saksincorporated.com/vendorrelations/sfaevendors.asp.

TICKET STANDARDS


5 TICKET STANDARDS

Saks requires all merchandise to be pre-ticketed to allow shipments to be moved directly through our distribution facilities without any merchandise preparation. All ticket information must be in both French and English with equal prominence. Follow Ticket Formats to ensure tickets contain required product information.

NOTE: An expense offset fee will be assessed for merchandise not in compliance with our ticketing standards. Please see the Expense Offset Section.

5.1 FULL LINE TICKET FORMATS

A sample of your ticket must be sent to [email protected] or mailed to SFA Vendor Relations office. See Contact List for address. NOTE: Tickets must reflect Canadian retail only.

5.1.1 VERTICAL TICKET

Figure 3 A: Vertical Ticket Requirements Figure 3 B: Vertical Ticket Sample

Figure 3 D: Horizontal Ticket Samples

5.1.2 HORIZONTAL TICKET

Figure 3 C: Horizontal Ticket Requirements

ZONE 1 ⇐ Merchandise Identification (PID)

Optional Size to Color code location.

ZONE 2 ⇐ Vendor Information

ZONE 3 ⇐ UPC Version A Symbol or EAN

Version A Symbol

ZONE 4 ⇐ Consumer Information

Optional Size to Color code location

ZONE 5 ⇐ Size/Dimension

Preferred Size to Color code location

ZONE 6 ⇐ Space for Retail Price

(1” x 1.25”)

ZONE 7 ⇐ Manufacturer’s Suggested Price

Perforated Section

STYLE / MODELE

COLOR / COULEUR

SIZE / TAILLE

012346789804546 0 12345 67890 1

$250.00

STYLE COLOR MODELE COULEUR

0000000000000 0 12345 67890 1

SIZE / TAILLE

$250.00

Required Optional

ZONE 1 ZONE 3 ZONE 4

ZONE 7

ZONE 2 ZONE 5 ZONE 6 STYLE / MODÈLE COLOR / COULEUR SIZE / TAILLE MSRP $250.00

- - - - - - - - - - - - - - - - - - - - - -

012346789804546 0 12345 67890 1

TICKET STANDARDS


5.2 OFF 5TH TICKET FORMATS

For merchandise requiring dual retail, the wording “COMPARE AT” and “COMPARABLE A must be printed on the price tag. The suggested retail and selling retail will be communicated by the buying office and included on the EDI PO (850).

For all questions or concerns, please contact [email protected].

5.2.1 TICKET FORMAT BY CATEGORY

PRODUCT CATEGORY FORMAT

Women’s and Men’s Apparel, Jewelry and Accessories Dual Retail Watches Single Retail Beauty, Food, Home & Gift Single Retail Women’s and Men’s Shoes Dual Retail with Savings Kids’ Apparel and Accessories Dual Retail with Savings

5.2.2 DUAL RETAIL TICKETS

Figure 3 E: Horizontal Dual Retail Ticket Samples

Figure 3 F: Vertical Dual Retail Ticket Sample

DEPT # STYLE/MODÈLE COLOR/COULEUR SIZE/TAILLE

0000000000000 0 12345 67890 1

COMPARE AT / COMPARABLE A $250.00

OUR PRICE / NOTRE PRIX $199.99

DEPT # STYLE/MODELE COLOR/COULEUR SIZE/TAILLE

COMPARE AT / COMPARABLE A

$250.00 OUR PRICE / NOTRE PRIX

$199.99

- - - - - - - - - - - - - - - - - - - - - -

012346789804546 0 12345 67890 1

DEPT #

STYLE/ MODÈLE

COLOR/COULEUR

SIZE/TAILLE

012346789804546 0 12345 67890 1

COMPARE AT COMPARABLE A

$450.00

OUR PRICE NOTRE PRIX

$199.99

TICKET STANDARDS


5.2.3 SINGLE RETAIL TICKETS

Figure 3 G: Horizontal Suggested Retail Ticket Samples Figure 3 F: Vertical Dual Retail Ticket Sample

5.2.4 DUAL RETAIL WITH SAVINGS PERCENTAGE TICKETS NOTE: Savings percentage will be included in the EDI 850 PO

Figure 3 I: Dual Retail with Saving Ticket Samples Figure 3 J: Dual Retail with Saving Ticket Samples

DEPT #

STYLE/ MODÈLE

COLOR/COULEUR

SIZE/TAILLE

012346789804546 0 12345 67890 1

$250.00


0000000000000 0 12345 67890 1

$250.00

DEPT # STYLE COLOR SIZE MODÈLE COULEUR TAILLE

$250.00

- - - - - - - - - - - - - - - - - - - - - -

012346789804546 0 12345 67890 1


0000000000000 0 12345 67890 1

COMPARE AT / COMPARABLE A $400.00

OUR PRICE / NOTRE PRIX $199.99

50% SAVINGS / ÉCONOMIE 50%

DEPT #

STYLE/ MODÈLE

COLOR/COULEUR

SIZE/TAILLE

012346789804546 0 12345 67890 1

COMPARE AT COMPARABLE A

$400.00

OUR PRICE NOTRE PRIX

$199.99

50% SAVINGS

ÉCONOMIE 50%

PACKING AND SHIPPING REQUIREMENTS


6 PACKING AND SHIPPING REQUIREMENTS

6.1 POLYBAG REQUIREMENTS

All polybags are required to have the following safety warning written in by French and English. This text should be clearly printed on the bag in a visible location and be smudge-proof.

WARNING: TO AVOID DANGER OF SUFFOCATION, KEEP THIS PLASTIC BAG AWAY FROM BABIES AND CHILDREN. DO NOT USE THIS BAG IN CRIBS, BEDS, CARRIAGES, OR PLAYPENS. THIS BAG IS NOT A TOY.

AVERTISSEMENT: POUR ÉVITER TOUT RISQUE DE SUFFOCATION, GARDER HORS DE LA PORTÉE DES BÉBÉS ET DES ENFANTS. NE PAS PLACER DANS UN BERCEAU, UN LIT D’ENFANT, UNE POUSSETTE OU UN PARC.

6.2 CARTON SPECIFICATIONS

Dimension Minimum Maximum

Length 9” 36”

Width 9” 24”

Height 3” 30”

Weight 5 lbs. 60 lbs.

6.3 PALLETIZATION

In order to enable continuous flow of shipments and meet service levels through our DC, the following guidelines must be met in order to achieve maximum benefits by both Saks and our vendors:

• Pallet height restriction:

Toronto Logistics Centre (TLC-596) 54’’ for central stock, 80” for flow-through

For additional pallet requirements, please see the Vendor Standards Manual available at https://www.saksincorporated.com/vendorrelations/sfaevendors.asp.

6.4 DISTRIBUTION CENTER

Toronto Logistics Centre (TLC-596) 145 Carrier Drive Rexdale, Ontario M9W 5N5

6.5 ONLINE APPOINTMENT BOOKING

Vendors are responsible to obtain access to the Online Appointment Booking website.

In order to begin booking appointments online, a vendor needs to acquire a Company Registration user ID to access the Website for the first time for a new vendor number. Please see contacts.

Once you have a registration user id, you can set up multiple user ID’s for various users within your company.



6.5.1 APPOINTMENT BOOKING CONTACTS

For online booking assistance, please contact [email protected] or call 570-821-6440. Additional contact information is list below.

Name Phone Number Email

Coleen Heichel Supervisor, Appointment Scheduling (570) 821-6378 [email protected]

Debra Marcinko Senior Manager, Logistics (570) 821-6294 [email protected]

Gilbert Miller Senior Manager, Logistics

(905) 792-4480 [email protected]

For Freight Management, email [email protected].

For HBC Fleet Toronto, email [email protected].

6.5.2 HOW TO GET A USER-ID AND PASSWORD

The ICC Security Officer and/or Vendor Administrator are responsible for creating new user-ids. Contact your System or Vendor Administrator to obtain your user-id and initial password.

If you have an e-mail address and e-mail software in your PC, you can contact your System Administrator by using the Contact Us button placed in the Header Panel (on the top right-hand corner) of each IMS page.

6.5.3 USER-ID AND PASSWORD RULES

• A user-id and password will have a minimum of 5 digits each. • The user-id is not case sensitive. • The password is case sensitive. It will expire every 31 days, at which time the user will be asked to enter a new

password. The user cannot re-use the same password. • The user should refrain from using his/her last name, family names (spouse, children), birthplace, birth date and

things related to him/her as passwords, which will be easily guessed by intruders. A combination of characters that mixes alphabetic, numeric and special characters is the best choice for a password, as long as you can easily remember it.

• If you forgot your password, you have to resort to your System Administrator to re-assign a new temporary password.

6.6 DELIVERY APPOINTMENT SCHEDULING

All purchases orders shipped through a Distribution Center (regardless of carton quantities) require a delivery appointment to be scheduled at the designated DC.

The vendor must confirm all the ship dates and special instructions on the Purchase order. The expectation is that there will be a single appointment scheduled per delivery. An appointment must be scheduled to arrive in our DC within the ship window.

NOTE: Direct-to-Door shipments do not require a delivery appointment.

6.7 TIMING OF THE APPOINTMENT REQUESTS

AR orders are transmitted via EDI 850 and sent with immediate ship dates. Once the order is received the appointment must be requested. In the event that the vendor has multiple AR orders to ship, it is expected that the request for all the orders will be consolidate to a single appointment request. If the quantity to delivery exceeds a truckload, then HBC expects an appointment per truckload. All Other Orders must have the appointments requested 7 Calendar days prior to the start ship date. Again, when multiple orders are being requested, it is expected that the orders will be consolidated to single appointment. If the quantity to delivery exceeds a truckload, then HBC expects an appointment per truckload, where



possible AR orders can be combined with other order types to a single appointment request per truckload. Vendors are responsible to account for the transit time to the dc when booking a collect freight appointment as the cancel date is the final in DC date.

6.8 DELIVERY APPOINTMENT SCHEDULING

For vendors using carriers designated by HBC (i.e. Collect POs), delivery appointments MUST be the following manner:

• Appointments must be scheduled 48 hours prior to pick up. In addition, to avoid any late compliance penalties, the appointment date into the DC must be on or before the “Not After Date”. Vendors need to take into account transit time when setting pick up date

• Product must be available for pick-up on the date arranged. Merchandise not available when designated carrier arrives may result in compliance penalty.- Consolidate as much of the PO or multiple POs on a single appointment. Do not create multiple appointments each day or administration penalties will be applied

• Appointment cancellations or alterations must be made at least 24 hours before the expected carrier pick up time or will be subject to compliance charges.

• Appointments must be scheduled by 2pm the day prior to the “Not After Date” Otherwise it will be considered late and subject to late shipping charges

• For vendors using carriers not designated by HBC (i.e. Prepaid POs), the appointment request must be made for the actual delivery date.

6.8.1 CANADIAN TRANSIT TABLE

Country Province FTL LTL

Canada Alberta 6 7

Canada British Columbia 6 6

Canada Manitoba 6 7

Canada New Brunswick 3 3

Canada New Foundland 8 8

Canada Northwest Territories 10 10

Canada Nova Scotia 4 4

Canada Nunavut 10 10

Canada Ontario 1 1

Canada Prince Edward Island 4 4

Canada Quebec 2 2

Canada Saskatchewan 6 7

Canada Yukon 10 10

NOTE: FTL= Full Truck Load, LTL = Less than Full Truckload



6.8.2 US TRANSIT TABLE

Country State FTL LTL USA Alabama 3 5 USA Arizona 5 7 USA Arkansas 3 5 USA California 5 7 USA Colorado 4 6 USA Connecticut 2 4 USA Delaware 2 4 USA Florida 4 6 USA Georgia 3 5 USA Idaho 5 7 USA Illinois 2 4 USA Indiana 2 4 USA Iowa 3 5 USA Kansas 3 5 USA Kentucky 2 4 USA Louisiana 4 6 USA Maine 2 4 USA Maryland 2 4 USA Massachusetts 2 4 USA Michigan 2 4 USA Minnesota 3 6 USA Mississippi 3 5 USA Missouri 3 5 USA Montana 4 6 USA Nebraska 3 5 USA Nevada 5 7 USA New Jersey 2 4 USA New Mexico 4 6 USA New York 2 4 USA New Hampshire 2 4 USA North Carolina 3 5 USA North Dakota 4 6 USA Ohio 2 4 USA Oklahoma 3 5 USA Oregon 5 7 USA Pennsylvania 2 4 USA Rhode Island 2 4 USA South Carolina 3 5 USA South Dakota 4 6 USA Tennessee 3 5 USA Texas 4 6 USA Utah 5 7 USA Vermont 2 4 USA Virginia 2 4 USA Washington 2 4 USA West Virginia 2 4 USA Wisconsin 3 5 USA Wyoming 4 6 USA Mexico 14 14



6.9 CARRIER ROUTING

For vendors using carriers designated by Saks (i.e. Collect PO), routing instructions will be provided via the “alerts” in our Inbound Management System at www.qlogitek.com. Vendors should always wait for routing instructions sent via the “IMS or email alerts” before shipping. The general guideline to route all COLLECT shipments is as follows:

• Under 50 lbs. via Purolator c/o UPS • Over 51 lbs. carrier will be determined by HBC • You will be held responsible for any additional freight charges incurred due to non-compliance of these routing

instructions. Saks is not responsible for routing and freight charges related to all other purchase orders (i.e. Prepaid PO)

6.10 CUSTOMS CLEARANCE

For vendors using carriers designated by Saks (i.e. Collect PO), all shipments entering Canada must have the following:

• Canada Customs Invoices • Commercial Invoice • Packing Lists • NAFTA Certificate of Origin, if applicable

Each shipment should be accompanied with proper documentation. In addition, the same documentation must be emailed or faxed to the Import Logistics team at 905-792-4634.

Documents for shipments from the USA should be emailed to [email protected] and [email protected].

Our customs broker is UPS-SCS (905) 677-6735 ext. 3260 or (800) 387-4885.

NOTE: For vendors not using carriers designated by Saks(i.e. Prepaid PO), Saks will not be responsible for Canadian custom clearance on most PREPAID freight and will not forward our Business Number or broker’s information.

IMPORT LOGISTICS


IMPORT LOGISTICS

The following section is intended to outline standards for our Import Vendor Partners. For questions and concerns, please contact the Import Logistics Team.

NOTE: For vendors that were previously set up as a domestic vendor for Saks US, but will now be an import vendor for Saks Canada, you must participate in HBC’s Social Compliance program prior to vendor setup approval. For more information on the policy, please visit https://www.saksincorporated.com/vendorrelations/sfaevendors.asp

7 IMPORT LOGISTICS CONTACTS

Position Name Phone Number E-mail

Director, HBC Inbound Operations Ron King (905) 595-7253 [email protected]

Manager, Import Transportation – Private Brands

Evelyn Chen (905) 792-6323 [email protected]

Manager, Import Transportations – National Brands

Jeanette Angel (410) 297-5322 [email protected]

Manager, Customs Mui Ming Chow (905) 792-5469 [email protected]

Supervisor, Customs Mike Wong (905) 792-5468 [email protected]

Director, Import Accounting Helene Guinan (905) 792-5489 [email protected]

Supervisor, Import Payables Shanti Soobrian (905) 792-5471 [email protected]

7.1 CONSIGNEES AND NOTIFYING

7.1.1 CONSIGNEES

All shipments to Saks Canada must be consigned to Hudson’s Bay Company. The address for all above consignees is as follows: Attn: Import Logistics 8925 Torbram Rd Brampton, Ontario L6T 4G1

7.1.2 NOTIFYING PARTIES

The notifying party for shipments to Saks Canada is the same as the consignee. The address for notifying party is as follows: Attn: Import Logistics 8925 Torbram Rd Brampton, Ontario L6T 4G1

IMPORT LOGISTICS


8 CUSTOMS CLEARANCE PORTS

All merchandise into Canada is imported through two gateway ports for customs clearance. PO Destination is to the following distribution center:

CUSTOMS PORT OF ENTRY DELIVERY LOCATION

Toronto

Toronto Logistics Centre 145 Carrier Drive Rexdale, Ontario M9W 5N5 Canada

For more information, please contact the Import Logistics team at (905) 792-6323.

9 AIR SHIPMENTS

This section defines terms and processes for Air shipments. Please note air shipments for national brands are handled by Freight Forwarder Savino Del Bene. For questions or concerns, please contact Jackie Persinger at [email protected] or Jeanette Angel at [email protected].

9.1 AIR TERMS

Air Collect – shipment will be air lifted at Saks’s expense. All air collect shipments must be approved by the Buying Office.

Air Prepaid – shipment will be air lifted at vendor’s expense. The Buying Office must approve late shipping and accept vendor airing the PO to meet ship window.

9.2 AIR PROCESS

9.2.1 AIR COLLECT SHIPMENTS

1. Buying Office approves PO to be air collect, notify the vendor to ship by air and complete the Air Authorization Form (AAF). Completed AAF should to be forward to Inbound Operations, Attn: Evelyn Chen.

2. Vendor must book with designated airfreight forwarder for that origin. 3. Vendor must surrender export document to airfreight forwarder and documents must accompany the air

shipment. Cargo cannot be air lifted without documents.

9.2.2 AIR PREPAID SHIPMENTS

1. Air prepaid – Buying Office approves late shipping and notifies vendor that PO must be air at their expense. Buyer must complete Air Authorization Form (AAF) and forward to Inbound Operations, Attn.: Evelyn Chen.

2. Vendor must book with an airfreight forwarder. Recommend using designated airfreight forwarders.

3. Vendor will be responsible to pay air cost minus the ocean reimbursement directly to the airfreight forwarder. Reduction of first cost on future orders is not allowed. Air Waybill must indicate prepaid.

4. Vendor must surrender export document to airfreight forwarder and must accompany the air shipment. Cargo

cannot be air lifted without documents.

NOTE: Invoice must indicate air cost that has been prepaid as a separate line item.

IMPORT LOGISTICS


10 OCEAN TRANSPORTATION

Saks Fifth Avenue has endeavored to include the fastest ocean routing from most origin ports to Canada. Origin office (freight forwarder) will book most viable sailing option to meet order in DC date; if not possible Saks/HBC offshore logistics will reach out to buyer with recommended sailing departures and new in DC arrival date.

10.1 TRANSIT TIMES

Transit Times to the Distribution Center include consolidation, customs clearance and delivery to either Western or Eastern Distribution Centers.

Country East Country East

Argentina 39 Italy 44

Austria 37 Jamaica 28

Belgium 30 Lesotho (Buy FOB Durban) See Durban

Belize 30 Netherlands (Holland) 30

Brazil 38 Nicaragua 30

Bulgaria 61 Norway 31

Chile 35 Panama 29

Columbia 28 Peru 33

Costa Rica 47 Poland 44

Croatia 35 Portugal 40

Czech Republic 41 Romania – Constanza 35

Denmark 39 Slovakia 38

Dominican Republic 41 Slovenia 35

Egypt 46 South Africa – Cape Town Durban

49

El Salvador 32 40

Finland 33 Spain 52

France 31 Sweden 31

Germany 36 Switzerland 20

Greece 35 Turkey 41

Guatemala 34 United Arab Emirates (Dubai) 40

Honduras 31 United Kingdom 32

Hungary 31 Uraguay 37

Ireland 31 Venezuela 35

Israel 43

IMPORT LOGISTICS


10.2 TRANSIT TIMES – ASIA

Transit Times to the Distribution Center include consolidation, customs clearance and delivery to either Western or Eastern Distribution Centers.

City - Port Port code East West

BANGLADESH – CITTAGONG CGP 51

CHINA

Dalian DLC 25

Fuzhou FOC 29

Hong Kong HKG 27

Ningbo NGB 42 28

Qingdao TAO 27

Shanghai SHA 49 27

Shenzhen (Yantian) SZP 50 26

Tianjin (Xingang) XNG 27

Xiamen XMN 31

INDIA

Bombay (Mumbai) BOM 35

Madras (Chennai) MAA 37

Tuticorin TUT 37

INDONESIA

Belawan BLW

38

Jakarta JKT

35

Semarang SRG

40

Surbaya SUB 35

JAPAN

Nagoya NGO 27

KOREA

Busan BUS 22

MACAU

32

MALAYSIA

Pasir Gudang PGU 35

Penang PEN 40

Port Kelang PKG 34

MAURITIUS

Port Louis PLU 54

PAKISTAN

Karachi KHI 38

IMPORT LOGISTICS


CITY - PORT PORT CODE EAST WEST

PHILIPPINES

Cebu CEB 34

Manila MNL 33

SINGAPORE SIN 29

SRI LANKA

Colombo CMB 37

TAIWAN

Kaoshiung KHH 22

Keelung KEL 22

Taichung TXG 25

THAILAND

Bangkok BKK 38

Songkla SGZ 38

Leam Chabang LCH 29

VIETNAM

Danang DAD 44

Haiphong HPH 31

Ho Chi Minh SGN 31

Qui Nhon VIH 44

10.3 ORIGIN BOOKING AND SHIPPING PROCEDURES

Saks Fifth Avenue and HBC use Damco Logistics as our ocean consolidator at all origin ports. Booking and shipping procedure are similar in each country except for differences of individual government regulations.

10.3.1 BOOKING PROCEDURE

• Vendor can book with Damco Logistics 21 days before must arrive by date (MABD) and receive confirmation from Damco of the vessel and relevant delivery deadlines

• Minimum booking is 14 days prior to must arrive by date. • CFS Cargo: deliver to Damco Logistics warehouse 7 days before vessel departure, and deliver documents for

Export Customs Clearance on the same day. The specific delivery date and other requirement will be advised on the Delivery Notice issued by Damco Logistics against receiving booking.

• CY Cargo: send Container Loading Result to Damco Logistics via fax or email at least 4 days before vessel departure, with which Damco Logistics send the ACI (Advanced Customs Information) to carrier for Canadian Customs Manifest.

10.3.2 BOOKING APPROVAL

• 20’ Containers are only used with approval of Saks/HBC through Damco Logistics. Please illustrate the reason for requesting a 20’ container on the shipping order.

• 40’ Containers must be load with cargo greater than 55 cbm, container can be loaded as factory loads with cargo greater than 55 cbm NOTE: If above requirement cannot be achieved, delivery to Damco Logistics warehouse to ship as CFS cargo is expected.

IMPORT LOGISTICS


10.3.3 BOOKING FORMAT

For Damco shipper booking system, you will need to apply for a USER ID and PASSWORD, submit booking and create FCR on web.

10.3.4 SHIPPING ORDER BOOKING REQUIREMENTS

• Shipper Name and Address, Contact Person/Phone/Fax number • Consignee complete name and address • Customs Broker complete name and address (only if vendor handle this by them selve) • Port of Loading • Place of Destination • Expected Date of Delivery to Damco Logistics’ warehouse (if it is CFS cargo) • Expected Date of Stuffing the container and deliver to Damco Logistics (if it is CY cargo) • PO No. (Order No.) • Marks and Numbers (division, department, purchase order number, and item numbers) • Number of Cartons/ Gross Weight/ Measurement/ Pieces – per PO & SKU • Total Number of Cartons per divisional Order

– For each PO and SKU, • PO # • HBC style # (or SKN #) • UPC # • Department # (previously defined as ‘category’) • Total number of cartons • Total style/SKN quantity (units) • Inner pack size • Case pack size (quantity per shipping carton) • Carton dimensions (height, width, length, and weight)

NOTE: Unit of measurement must be specified through the portal. Saks/HBC prefers imperial measurements (Inches, lb)

• UCC 128 label numbers Note: Each carton must have a unique UCC 128 label, vendor needs to submit label data by email to local Damco origin office

• Description of Commodity

10.4 IMPORT DOCUMENTS

Import Documents are expected to deliver to Damco Logistics within 4 days after vessel departure. Please bind the documents according to below sequence:

Those documents that are required for Special cargo only are denoted by an asterisk “*”. Please bind 1xOriginal + 1xCopy together according to the sequence. If any above mentioned documents that are not required by Saks/HBC, please disregard and send other required documents to Damco Logistics accordingly.

DOCUMENT ORIGINAL COPY

Form A, Certificate of Origin 1* 0 Footwear Memorandum 1* 0 Canada Customs Invoice 1 1 Commercial Invoice 1 1 Packing List 1 1 Inspection Certificate 1* 0 Shipment Release Letter 1* 0 Certificate of Origin B255E (LDC countries) 1* 0 Solid Wood Packing Certificate 1 0 Other Statements & Certificates 1* 0

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10.5 FCR RELEASE (FCR: FORWARDER’S CARGO RECEIPT)

Original FCR can be released when:

• Local charges are settled • FCR review by vendor and approval copy of FCR is forward to Damco Logistics. • Complete set of Import Documents are received by Damco Logistics

FCR Release in other cities (Taiwan / Hong Kong etc.)

• All of three steps in 18.3 are done. • The company name and contact detail of the party to e FCR are clearly instructed to Damco Logistics by

email or written notification.

10.6 CARGO

10.6.1 CARGO SEQUENCE REQUESTED BY SAKS/HBC

• Supplier should pre-sort their cargo By PO, by SKU, by ITEM. • CFS cargo should be sorted before cargo is delivered to Damco Logistics warehouse. • CY cargo should be sorted when container is stuffed at factory

10.6.2 CFS CARGO DELIVERY

• Document Requested Against Cargo Delivery – Cargo delivery date must be equal or earlier than the date indicated on the Damco Logistics Delivery

Notice. Otherwise, suppliers should inform Damco Logistics before cargo delivery to check whether late delivery is acceptable. If the delivery date is later than shipping window, Damco Logistics needs to check with Saks/HBC to get approval to accept.

• When the trucker delivers cargo to our warehouse, below documents are required:

– Damco Logistics Delivery Notice (Issued by MLOG when receiving booking) – Shipping order, with factory’s company stamp on it – Original Shipment Release Letter (Issued by Li & Fung or other QC required by Saks/HBC ) – Or “HBC Total Brand Management Shipment Release Letter” – Copy of Packing List with clear Marks, CTNS, KGS, CBM and other relevant information

11 DOCUMENTATION

The following section outlines documentation required for import goods into Canada. For questions or concerns, contact the Import Logistics team at 905-792-5469.

11.1 REQUIRED DOCUMENTS

• Commercial Invoice: all shipments, any value including “no charge” shipments.

• Specification sheets or Packing Lists: all shipments, any value.

• Canada Customs Invoices: all shipments, any value.

• Form “A”: required when merchandise is approved under GPT Tariff (original form required).

• Certificate of Origin: Textile Product and Clothing from LDC Countries – B255

• Canada Customs Memorandum D10-11-3: Footwear requires information, as detailed on page 43. (Examples of

these customs documents and how they are to be completed are also shown on the following pages.)

• Forwarders Cargo Receipt (original Bill of Lading, where specified).

• Depending upon the nature of the shipment, other types of documentation might be required.

For example: Agricultural and Rattan and products wicker products (Fumigation Certification)

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11.2 CANADA CUSTOMS INVOICE

Below is a brief description of how each required data field on the Canada Customs Invoice or Commercial Invoice must be completed. The data field name, as shown on the Canada Customs Invoice, is underlined, followed by some equivalent commercial terms in parenthesis.

NOTE: Field 23(iii) and 24(iii) Export Packing should not be completed as this amount is no longer deductible for duty purposes.

• Vendor (seller, sold by, remit to, consignor, and shipper): Must indicate the name and address of:

– the person selling the goods to the purchaser – the person consigning the goods to Canada

• Date of Direct Shipment to Canada: Must display the date on which the goods begin their continuous journey to Canada.

• Other References: May be used to record other useful information (e.g. the commercial invoice number, the purchaser’s order number).

• Consignee: (ship to, deliver to) Must indicate the name and address of the person (company) in Canada to whom the goods are sold by the vendor.

• Purchaser’s Name and Address (if other Consignee): (sold to Buyer) Must record the person to whom the goods are sold by the vendor.

• Country of Transshipment: Must display the country through which the goods were shipped in transit to Canada under Custom’s control.

• Country of Origin of Goods: For customs purposes, the country of origin of invoiced goods is the country where

the goods are grown, produced and manufactured. Each manufactured article on the invoice must have been substantially transformed in the country specified as the country of origin to its present form ready for export to Canada. Certain operations, such as packaging, splitting and sorting may not be considered as sufficient operations to confer origin. When there is more than one country of origin, show “various” in box #7 of the Canada Customs Invoice. In box #12 of the CCI, show a specific breakdown of the merchandise by country of origin.

• Transportation: Give Mode and Place of Direct Shipment to Canada: Indicate the mode of transportation used and the place from which the goods began their uninterrupted journey to Canada.

• Conditions of Sale and Terms of Payment: Must describe the terms and the conditions agreed upon by the vendor and the purchaser. Ensure the Letter of Credit number is shown, where applicable.

• Currency of Settlement: Indicate the currency in which the vendor’s demand for payment is made.

• Number of Packages: Indicate the number of packages.

• Specification of Commodities: The following information must be provided:

a) Kinds of Packages: Indicate the nature of the packages (e.g. cases, cartons, etc.) b) Marks and Numbers: indicate the descriptive marks and numbers imprinted upon the packaged goods.

Such marks and numbers are required to be legibly placed on the outside of all packaged goods whenever feasible. Notwithstanding the proceeding, the following classes of shipments do not require marks and numbers:

– Shipments forwarded by parcel post; – Goods shipped in bulk, not in packages, but merely wire bound, tagged or fastened together in

lots. However, the number of pieces, bundles, bushels, etc., must be shown on the invoice; – Agricultural implements and machinery, or machinery parts, when shipped loose; – However, when in packages, the invoices are required to show the numbers and descriptions of

same. c) General Description and Characteristics: Give a description of the merchandise in general terms (e.g.

textiles, auto parts, etc.).

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• Quantity: The quantity of each item included in the description field must be indicated in the appropriate unit of measure.

• Unit Price (price per article item amount): Must provide a value in the currency of settlement for each item described in the description field.

• Total: Indicate the price paid or payable in the currency of settlement for the number of items recorded in the

quantity field when they were sold by the vendor to the purchaser. Where there are no items recorded in the description field, N/A should be indicated.

• Total Weight: Show both net and gross weight. Please indicate kilos or pounds.

• Invoice Total (total value, pay this amount): The total price paid or payable for goods described on the invoice and/or continuation sheet(s).

• Canada Customs Invoice only: This field must always be completed if an attached commercial invoice does not contain all data elements outlined in fields 1 to 17.

• Exporter (Name and Address if Other than Vendor): Indicate the name and address of the person or organization shipping the goods to the consignee/purchaser.

• Originator (Name and Address): Indicate the name of a responsible individual in the vendor’s organization who has knowledge of the transaction.

• Departmental Ruling: Give the number and date of any Canada Customs ruling applicable to the shipment.

NOTE: The completion of these fields is self-explanatory. As of January 1988, field 23(iii) and 24(iii) export packing need not be completed, as this amount is no longer deductible for duty purposes.

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11.2.1 SAMPLE CANADIAN CUSTOMS INVOICE

Figure 9 A: Sample Canadian Customs Invoice Page 1 of 1

1. Vendor (Name and Address) ABC COMPANY 325 Playfair Road New Delhi, India

2. Date of Direct Shipment to Canada 29/01/2013

3. Other References (Include Purchaser’s Order No.) P.O. 91234567

4. Consignee (Name and Address)

HUDSON’S BAY COMPANY Import Logistics 8925 Torbram Rd Brampton, Ontario L6T 4G1 Canada

5. Purchaser’s Name and address (if other than Consignee) 6. Country of Transshipment

7. Country of Origin of Goods

India

IF SHIPMENTS OF GOODS OF DIFFERENT ORIGINS ENTER ORIGINS AGAINST ITEM 12

8. Transportation: Give Mode and Place of Direct Shipment to Canada PER: President Harrison V.106 FROM: Nhava Sheva, India TO: Montreal, Quebec SAILING ON/ABT: 31/01/2013

9. Conditions of Sale and Terms of Payment (i.e. Sale, Consignment Shipment, Leased Goods, etc.)

TT 60 – wire transfer FOB Mumbai

10. Currency of Settlement

U.S. Dollars 11. No. of Pkgs. P.O. # 91234567 Made in India Ctns1 - 184

12. Specifications of Commodities (Kind of Packages, Marks and Numbers, General Description and Characteristics. i.e. Grade, Quality) STYLE: A8828

SHIRTS MEN’S 100% COTTON WOVEN W/TAILORED COLLAR

13. Quantity (State Unit) 6960 pieces

Selling Price 14. Unit Price 6.25

15. Total 43,500.00

18. If any of the fields 1 to 17 are included on an attached commercial invoice

Commercial Invoice No. 1234/01

16. Total Weight 17. Invoice Total

$43,500.00 Net

1596 Kg Gross

2250 Kg

19. Exporter’s Name and Address (if other than Vendor) ABC Company 325 Playfair Road New Delhi, India

20. Originator (Name and Address)

21. Departmental Ruling (if applicable)

22. If any fields 23 to 25 are not applicable, check box

23. If included in field 17, indicate amount: (i) Transportation changes, expenses

and insurance from the place of direct shipment to Canada.

$ (ii) Costs for construction, erection and assembly incurred after importation into Canada. $

(iii) Export packing

$

24. If not included in field 17 indicate amount: (i) Transportation changes, expenses

and insurance to the place of direct shipment to Canada

$ (ii) Amount for commissions other than

buying commissions $ (iii) Export packing $

25. Check (if applicable) (i) Royalty payments or

subsequent proceeds are paid or payable by the purchaser

(ii) The purchaser has supplied

goods or services for use in the production of these goods

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11.3 FOOTWEAR REQUIREMENTS

Canada Customs, as well as our Import Department, requires a detailed invoice for all types of footwear. Please comply by submitting a proper invoice as shown below.

Figure 11 B: Sample invoice details for footwear

1. Type 7. Type of Fastening

(a) Boots (b) Shoes (c) Slippers (d) Sandals (e) Moccasins (f) Over-the-Shoe footwear (g) Other (specify)

(a) Lacing (b) Buckles (c) Clamps (d) Zippers (e) Contrs (f) Other (Specify)

2. Gender 9. Material of Chief Value of Shoe/boot, etc. (specify)

(a) Men's (size 6 and up) (b) Youth's and boys (under size 6) (c) Women's (size 4 and up) (d) Girls and misses (under size 4) (e) Infants and little children (f) Other (specify)

3. Function 8. Material of Chief Value of Upper

(a) Fashion or dress (b) Utility or work (c) Casual (d) Orthopedic (e) Sports or athletic (specify sport) (f) Other (specify)

(a) Leather (b) Synthetic leather (Poromeric, etc.) (c) Plastic (d) Fabric (e) Rubber (f) Other (specify)

4. Height 10. Material of Chief Value of Sole

(a) Oxford height (b) Other (specify)

(a) Leather (b) Rubber (c) Plastic (d) Cork (e) Wood (f) Fiber (g) Other (specify)

5. Construction Process 11. Size and Quantity in Pairs of Each Style

(a) Welt (b) Cement (c) Stitch down (d) Turn or turned (e) Vulcanized (f) Slush molded (g) Injection molded (h) Other (specify)

6. Construction Characteristics 12. Name of Exporter

(a) Lined (b) Unlined (c) Insulated (d) Water proof (e) Rot proof (f) Oil resistant (g) Reinforced (safe toe-heel) (h) Other (specify)

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12 FOREIGN DIRECT PAYMENT REQUIREMENTS AND PROCEDURES As part of its ongoing initiative to increase processing efficiencies, Saks proposes to provide an alternative direct payment method (TT) to:

• Lower costs to vendors without HBC losing control of documentation requirements. • Increased efficiencies for HBC, the agent, and the vendors.

12.1 REQUIREMENTS

• Vendor and /or agent must agree to present import documents for payment to Saks / HBC in Canada. • Importer of record classification of “Overseas Import” must be agreed upon with buyer at time of vendor set up • Vendor must be familiar with Saks/HBC procedures and the checklist of documents required. • Vendor must use the Saks/HBC-designated freight forwarder. • Cargo receipt must be consigned to Saks Fifth Avenue / Hudson’s Bay Company. Vendor should not consign

the merchandise to a bank since banks do not review import documents for TT payments. • Vendor must forward completed Wire transfer instructions on attached letter (see below)

12.2 PAYMENT PROCEDURES

The schedule below explains the process vendors and HBC must follow for requesting and issuing TT payment:

• Wire transfer instructions must be completed and forwarded to HBC Import Logistics prior to shipping. IMPORTANT: If any element of the wire transfer instructions change, it is the responsibility of the vendor to advise HBC Import Logistics in order to avoid late or misdirected payments. Revised instructions must be completed and forwarded to HBC as quickly as possible. Furthermore HBC will not be held responsible for misdirected payments if the vendor has failed to notify Saks/HBC of changes.

• The vendor submits all original shipping documents to the Saks/HBC-designated Freight Forwarder except the original Forwarders Cargo Receipt (FCR).

• The vendor must submit: – The Commercial Invoices – The Inspection Certificate (if applicable) – The Original Forwarders Cargo Receipt (FCR)

These documents must be received no later than 20 days prior to the payment date. Send to the attention of Helene Guinan Saks Fifth Avenue / Hudson’s Bay Co Import Logistics 8925 Torbram Rd Brampton, Ontario L6T 4G1 Canada The Import Logistics team will verify all documents for completeness and accuracy as soon as the documents are received.

• As soon as possible, Import Logistics will report to the vendor: – Any discrepancies found on the documents, or – Any buyer and/or Import department approvals still needed on designated discrepancies.

• As soon as all documents are complete and accurate and all approvals are received, the wire transfer

payment is scheduled to the vendor via funds transfer to the beneficiary’s bank account listed on the wire transfer instructions.

For questions regarding the above procedure, please contact Helene Guinan at (905) 792-5489 or email at [email protected].

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12.3 TRACING WIRE TRANSFER PAYMENTS

To trace a wire transfer payment, email Accounts Payable Helpdesk at [email protected] with the following information:

• Purchase Order Number • Amount of Payment

12.3.1 BANK INFORMATION FORM

Figure 10 A: Sample Bank Form

BENEFICIARY LETTERHEAD Date: Hudson’s Bay Company Import Logistics 8925 Torbram Rd Brampton, Ontario L6T 4G1 Attn: Import Department RE: USD WIRE TRANSFER INSTRUCTIONS Dear Sirs: The following are our complete USD wire transfer instructions – 60 days from FCR date. Beneficiary Name: Beneficiary Address: Beneficiary Bank: Beneficiary Bank Address: Beneficiary Bank Routing /ABA No.: Beneficiary Bank SWIFT Code: Beneficiary Bank Account No.: The undersigned acknowledges that Hudson’s Bay Company will make all wire transfer payments to the Beneficiary named above strictly in accordance with the information set out above. If any of the information set out above is incorrect or incomplete, Hudson’s Bay Company shall not be liable to the undersigned, the Beneficiary named above or any other person for any losses, damages, costs or expenses arising there from. Yours truly, BENEFICIARY _________________________ Authorized Signing Officer* (CEO, CFO, VP, Treasurer, Controller) _________________________ Print Name ________________________ Print Title * May be subject to additional verification by Beneficiary’s Bank and/or Legal Counsel

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13 TARIFF TREATMENTS

13.1 GENERAL PREFERENTIAL TARIFF TREATMENT (GPT)

A Form “A” or “Exporter Declaration” (see example below) is required by Canada Customs for countries granted GPT Treatment. The Form “A” entitles the importer to use General Preferential Tariff Treatment, provided that at least 60% of the ex-factory price of the goods originates in a GPT beneficiary country or Canada. The goods must be finished in the GPT country in the form they are imported to Canada and shipped directly from that country on a through bill of lading to Canada. Transshipment through intermediary countries is permitted, provided the goods remain under Customs Transit Control while in any intermediary country, do not undergo any operation except caretaking, loading/unloading or load-splitting and remain in storage no longer than 6 months.

Figure 14 A: Sample Exporter’s Statement

13.2 LEAST DEVELOPED COUNTRY TARIFF TREATMENT (LDCT)

The LDCT requirements regarding rules of origin and certification are described in the following sections

• Direct Shipment • Rules of Origin • Certification

13.2.1 SHIPPING REQUIREMENTS

The goods must be shipped directly on a through bill of lading (TBL) to a consignee in Canada from the LDC in which the goods were certified. Evidence in the form of a TBL (or a copy) showing that the goods have been shipped to a consignee in Canada must be presented to the CCRA upon request.

The TBL is one single document that is issued prior to the goods beginning their journey when the carrier assumes care, custody, and control of the goods and will usually contain the following information:

• The identity of the exporter in the country of origin; • The identity of the consignee in Canada; • The identity of the carrier or agent who assumes liability for the performance of the contract; • The contracted routing of the goods identifying all points of transshipment; • A full description of the goods and the marks and numbers of the package; and • The place and date of issue

Exporter’s Statement of Origin

I certify that the goods described in this invoice or in the attached invoice # ______ were produced in the beneficiary country of _______________ and that at least ____ per cent of the ex-factory price of the goods originates in the beneficiary country/countries of ______________.

Name and title:

Corporation name and address:

Telephone and fax numbers:

Signature and date (day/month/year):

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NOTE: A TBL that does not include all points of transshipment may be accepted, if these are set out in related shipping documents presented with the TBL.

On a case-by-case basis, an amended TBL may be accepted as proof of direct shipment where documentation errors have occurred and the amended TBL corrects an error in the original document. In such cases, the carrier must provide proof that the amended TBL reflects the actual movement of the goods as contracted when the goods began their journey. Documentation presented must clearly indicate the actual movement of the goods.

Air cargo is usually transshipped in the air carrier’s home country even if no transshipment is shown on the house air waybill. Therefore, where goods are transported via airfreight, the house air waybill is acceptable as a TBL.

13.2.2 RULES OF ORIGIN

There are two methods under which goods from a LDC can be considered to be entitled to the benefits of duty-free access to Canada. First, all goods currently entitled to the benefits of the LDCT can qualify under a wholly produced rule or a cumulative manufacturing process in a LDC beneficiary with value-added inputs or accumulation from other LDCs or Canada. Second, and with specific reference to textile and apparel goods, a good can qualify under a wholly produced rule or one of the new specific rules of origin governing the country of origin of inputs and the manufacture of goods. The application of either one of the existing rules or any of the new rules is dependent on the nature of the good being exported and where it is provided for in the Schedule to the Rules of Origin Regulations Respecting the General Preferential Tariff and the Least Developed Country Tariff (the “schedule”). All goods that are entitled to the LDCT must be certified as originating in a LDC under one of the following rules:

A good originates in a beneficiary country or a least developed country if the good is:

• A mineral good extracted from the soil or the sea-bed of the country; • A vegetable good harvested in the country; • A live animal born and raised in the country; • A good obtained in the country from a live animal; • A good obtained from hunting or fishing in the country; • A good derived from sea fishing or other marine goods taken from the sea by a vessel of the country; • A good produced on board a factory ship of the country exclusively from a good referred to in paragraph • Waste and scrap derived from manufacturing operations of the country; • Used goods of the country imported into Canada for use only for the recovery of raw materials; or • A good produced in the country exclusively from a good referred to in any of paragraph (a) to (h)

General 40% LDC Cumulative:

All goods currently entitled to the benefits of the LDCT originate in an LDC if the value of the materials, parts or products originating outside that country, or in an undetermined location, and used in the manufacture or production of the goods is no more than 60% of the ex-factory price of the goods as packed for shipment to Canada.

Specific Rules of Origin for Textile and Apparel Goods:

Except in the case of goods listed in Parts A1, B1, C1 and D of the schedule (see chart below), goods originate in a least developed country if the value of the materials, parts or products originating outside that country, or in an undetermined location, and used in the manufacture or production of the goods is no more than 60% of the ex-factory price of the goods as packed for shipment to Canada.

Goods listed in Parts A1 and A2 of the schedule originate in a least developed country if they are spun or extruded in a least developed country and do not undergo further processing outside a least developed country. Goods listed in Parts B1 and B2 of the schedule originate in a least developed country if they are produced in a least developed country from yarns originating in a least developed country, a beneficiary country or Canada, provided:

A. The yarns do not undergo further processing outside a least developed country, a beneficiary country or Canada; and

B. The fabrics do not undergo further processing outside a least developed country.

Goods listed in Parts C1 and C2 of the schedule originate in a least developed country if they are assembled in a least developed country from fabric cut in that country or in Canada, or from parts knit to shape, provided the fabric, or the parts knit to shape, are produced in:

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A. Any least developed country or Canada from yarns originating in a least developed country, a beneficiary country or Canada, provided the yarns or fabric do not undergo further processing outside a least developed country or Canada; or

B. A beneficiary country from yarns originating in a least developed country, a beneficiary country or Canada, provided:

I. The yarns and fabric do not undergo further processing outside a least developed country, a beneficiary country or Canada; and

II. The value of any materials, including packing, that are used in the manufacture of the goods and that originate outside the least developed country in which the goods are assembled is no more than 75% of the ex-factory price of the goods as packed for shipment to Canada.

Goods listed in Part D of the schedule originate in a least developed country if they are cut, or knit to shape, and sewn or otherwise assembled in the least developed country from fabric produced in any least developed country or Canada from yarns originating in a least developed country, a beneficiary country or Canada, provided the yarns and fabric have not undergone further processing outside a least developed country or Canada.

13.2.3 TEXTILE AND APPAREL GOODS ORIGINATING IN A LEAST DEVELOPED COUNTRY (LDC) CERTIFICATE OF ORIGIN

Textile and apparel goods must be certified as entitled to the benefits of the LDCT on the Textile and Apparel Goods Originating in a Least Developed Country (LDC) Certificate of Origin. The new rules of origin for textile and apparel goods will be set out in D11-4-4.

These instructions and criteria are also available on the reverse side of the original document. For ease of reference, the origin criteria for textile and apparel goods are categorized as follows:

A. The good is produced in an LDC and the value of the materials, parts or products originating outside that LDC, or in an undetermined location, and used in the manufacture or production of the goods does not exceed 60 percent of the ex-factory price of the good as packed for shipment to Canada. For purposes of this criterion, up to twenty percent (20%) of the ex-factory price may originate from any General Preferential Tariff (GPT) eligible countries. This criterion does not apply to goods listed in Part A1, Part B1, Part C1 or D of the Schedule to the Regulations.

B. The good is listed in Part A1 or Part A2 of the Schedule to the Regulations and has been spun or extruded in an LDC and has not undergone any further processing outside an LDC.

C. The good is listed in Part B1 or Part B2 of the Schedule to the Regulations and is produced in an LDC from yarns originating in an LDC, a GPT beneficiary or Canada and the yarns have not undergone further processing outside an LDC, a GPT beneficiary or Canada; and the fabric has not undergone further processing outside an LDC.

D. The good is listed in Part C1 or Part C2 of the Schedule to the Regulations and has been assembled in a LDC from fabric cut in that LDC or Canada, or from parts knit to shape, and the fabric (or parts knit to shape) has been produced in any LDC or Canada from yarns originating in an LDC, a GPT beneficiary or Canada and the yarns or fabric have not undergone further processing outside an LDC or Canada. NOTE: This criterion applies if the fabric (or parts knit to shape) is produced in any LDC or Canada.

E. The good is listed in Part C1 or Part C2 of the Schedule to the Regulations and has been assembled in an LDC from fabric cut in that LDC or Canada, or from parts knit to shape, and the fabric (or parts knit to shape) has been produced in a GPT beneficiary from yarns originating in an LDC, a GPT beneficiary or Canada and neither the yarns or the fabric have undergone further processing outside an LDC, a GPT beneficiary or Canada and the value of any materials, including packing, originating outside of that LDC used in the manufacture of the good does not exceed 75 percent of the ex-factory price of the good as packed for shipment to Canada. NOTE: This criterion applies if the fabric (or parts knit to shape) is produced in a GPT beneficiary.

F. The good is listed in Part D of the Schedule to the Regulations and was cut (or knit to shape) and sewn or otherwise assembled in an LDC from fabric produced in any LDC or Canada from yarns originating in an LDC, a GPT beneficiary or Canada and the yarns and fabric have not undergone further processing outside an LDC or Canada.

G. The good is “wholly obtained or produced entirely” in the territory of one or more LDCs or Canada.

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