supplier management: asia pacific (for ocean...

Costco Wholesale Vendor Guide Updated: 07/16/2015

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Supplier Guide (for ocean transport only)

Destination CANADA

All of the information provided in this guide is designed to help you do business with Costco. In many cases the information summarizes legal requirements that Costco is required to follow, or that Costco must require you to follow. While we have made an effort to address regulations that apply to significant numbers of our vendors, there may be other regulations applicable to your businesses that are not covered. Also, none of the information Costco posts in this should substitute for your own review of all of the legal requirements you must follow, and under no circumstances should our information be construed as legal advice.

Version No.: 011

Date: July 16, 2015


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Contents SECTION 1: General Introduction…………………………………………………………………………………………………3

1.1 Schenker Offices and Agents at Origin……………………………………………………………………..3 SECTION 2: Operation & Documentation……………………………………………………………………………………..3

2.1 Supplier Compliance…………………………………………………………………………………………………..3 2.2 Booking Procedures & Instructions……………………………………………………………………………3

CY/Door Cargo………………………………………………………………………………………………………………....5

2.3 Shipment Delay & Booking Change or Cancellation………………………………………………….6

2.4 Terms of Sale……………………………………………………………………………………………………………..6 2.5 Equipment Utilization & Factory Load Guidelines…….………………………………………..….…7 2.6 AMS & ACI Requirements for Shipments to CANADA…………………………………..………….7

2.7 Commercial Document Submission………….……………………………………………………………...8 2.8 Seaway Bill of Lading Instructions…………………………………………………………………………...9

2.9 Canada - Peru Free Trade Agreement (FTA)………………………………………………………….10

2.10 Form A…………………………………………………………………………….…………………………………….11 2.11 Exporter's statement of origin (ESO)……………………………………….........................12 2.12 B255 form (Least Developed Country Tariff certificate)………………………………………12

SECTION 3: Local Charges and Application Fees……………………………………………………………………….12

SECTION 4: Documents Required of Customs Clearance………………………………………………………...12

4.1 Commercial Invoice Requirements………………………………………………………………………….14 4.1a Commercial Invoice Example………………………………………………………………………………..15

4.1b CANADA CUSTOMS INVOICE - COMPLETION INSTRUCTION……………………………….17 4.1c Vendor CCI / Commercial Invoice Checklist…..…………………………………………………….19

4.1d Packing List Example……………………………………………………………………………………………..20 4.2 Common Invoice Errors…………………………………………………………………………………………..20 4.2a Other Common Document Errors………………………………………………………………………….20

4.3 Other Government Departments…………………………………………………………………………….21

Special Imports Measures Act (SIMA)…………………..……….……………………………………………….21

Wood Packaging…………………………………………………………………………………………………………………21 4.4 Requirements for natural real plant materials………………………………….…………………….22

SECTION 5: Supply Chain Security……………………………………………………………………………………………23

5.1 Procedure for Costco Container Inspection & Seal Verification Checklist……………..23 5.1a Costco Container Inspection & Seal Verification Checklist……….……………………….. 24 5.2 C-TPAT / PIP – Customs & Trade Partnership Against Terrorism………………….………25


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SECTION 1: General Introduction

This procedure manual will provide the supplier/factory with a clear understanding of their responsibilities and agreed upon procedures between Schenker and Costco Wholesale Canada.

The Supplier Guide is designed to establish close communication between Schenker and the Supplier/Factory. The manual covers transportation and documentation procedures required from shipping orders to commercial documents. It presents complete guidelines on actions and their time frame so that each vendor understands Costco’s expectation of each export interval.

We hope that the manual provides helpful information and guidelines for all your supplier export shipments. As always, we appreciate your thoughts and comments. Note: If the factories are not the actual Costco Wholesale suppliers, but are the parties

making the bookings, please be sure both the Costco Wholesale’s suppliers and factories are clear and consistent in your understanding of this manual. 1.1 SCHENKER Offices and Agents at Origin Costco Wholesale Canada has nominated Schenker to be its PO Manager. Please refer to the attached list of Schenker Offices and Agents for their contact information.

Costco - Schenker Origin Contact list.xls

SECTION 2: Operation & Documentation

2.1 Supplier Compliance

It is the responsibility of the Supplier/ Factory to contact the Buying staff at Costco advising of any such delays regarding a particular shipment or shipments. The Supplier/Factory is also responsible to contact the Schenker origin office 17 days prior to the first day of the ship window stipulated on the purchase order. ***Failure to do so will result in the container

having to be booked on a later vessel which will delay the shipment. ***

2.2 Booking Procedures & Instructions

A. Suppliers/Factories: Contact Schenker origin office for booking 17 days prior to the first day of the ship window date. The Shipping Order/Booking Request must contain the following details :

a. Shipper Name and address, contact person, phone and fax number

b. Consignee name and address (contact person, phone and fax number)

c. Notify Party name and address

d. Place of Receipt, Port of Loading

e. Port of Discharge f. Final Destination (Costco Depot) g. Costco PO number and Item number h. Total carton count, gross weight, and measurements and piece count per item i. Precise Description of merchandise and/or HTS number j. Number and Size of container k. Shipping Marks

l. Packing Material Content (Solid Wood or Non-Solid Wood)


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Booking should be prepared per Costco’s PO, per container, i.e. 1 shipping order for 1 PO and 1 container.

Ocean shipments are to have a seal on the container that is placed by the

factory/shipper from overseas prior to the container being dropped of at

the port. This seal number is to be noted on the seaway bill of lading and

the Costco Container Inspection & Seal Verification Checklist (info on the

Costco Container Inspection & Seal Verification Checklist is found in

Section 5.1)

Attached are Costco’s booking instructions that shippers/vendors are to follow.


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B. After the Schenker origin office receives the booking from the shipper, Schenker

origin office will verify the booking request against the PO details. CY/Door Cargo:

If the booking details are the same as the PO details: Schenker will make the

booking with carrier. After Schenker obtains the booking release, Shipping Order /


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Booking Confirmation from the carrier, Schenker will release a container to the

vendor for cargo stuffing. Merchandise must be loaded and sealed at vendor’s

facility. No off-site storage is allowed per Costco’s security requirements.

If the booking details are different from the PO details: Schenker will call the vendor to clarify the cargo descriptions. If vendors confirm booking details are correct, Schenker will send an email to Costco to verify and obtain approval.

C. Once approval is received, Schenker will contact the vendor and release the booking. The booking number is issued by the carrier for the empty container pick up. The Vendor is to arrange for pick up of the empty container to their factory for cargo

stuffing. The Vendor should deliver the full container back to carrier’s terminal by sailing cut off date.

D. Schenker will arrange all shipments shipping via Costco’s nominated contract

carriers. *** Shipper cannot nominate carrier of their choice ***

E. The Vendor will provide to the Schenker booking office the AMS & ACI information 72

hours prior to vessel departure. Failure to do so will result in the container missing

the vessel ETD and will be rescheduled on the next available vessel. This is considered to be a vendor/shipper issue as proper procedure was not followed.

2.3 Shipment Delay & Booking Change or Cancellation

If above steps are completed, and in the event of shipment delay resulting in booking cancellation, Vendors must do the following within 96 hours:

Fax request in writing and provide reasons to Schenker to advise of booking

change or cancellation within 96 hours of the Container Yard closing date.

Fax or email Costco Buyer to advise of shipment delay, provide reasons for delay, and obtain approval for revised ship date or P.O. cancellation (P.O. cancellation will occur in the event Costco is not able to accept this delay)

If the Buyer approves the late shipment, the vendors should notify the Schenker origin office.

Schenker is not allowed to accept any booking if shipped outside of Costco’s ship window dates without prior approval from Costco.

2.4 Terms of Sale Shippers will be responsible for below charges for FOB terms of sale.

Security Manifest (AMS & ACI) charge

All origin terminal charges ***

Any storage due to delay caused by shipper / factory and or their agent AMS & ACI amendment fee (if applicable) Booking – vendor load (if applicable)

Origin Customs Clearance Fee (if applicable) Inspection documentation fee – if request (if applicable) Fumigation charge – if request (if applicable)

Here's a recap of the explanation as to why our Vendors will have to pay the AMS + ACI filing fees for both the US and Canada:

99% of containers destined to Canada are loaded on Vessels going to the US first. On rare occasions the Vessels will go to Canada first. This is the Ocean line's choice and in most cases they go to the US first as they have way more volume than Canada.

The AMS (Advance Manifest Security) charge is for USA and the ACI (Advance Commercial Information) charge is for Canada. The Ocean lines will ask the Shipper to pay those charges for handling/transmitting these documents for AMS or ACI filing.

The Factories should be billed for both the AMS + ACI charges, when a Vessel goes to

the US first. Different Ocean lines have different rates for these charges. The Costco policy is for the Shipper to pay for those charges.


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The reason why the AMS is needed for USA, even though the containers don't get unloaded, is that the US Government wants to know what is on that Vessel as it will make a stop in a US Port, thus becoming a risk for terrorism.

Please refer below to the 24 Hour Cargo Manifest Rule, which explains the AMS in even more detail.

24 Hour Cargo Manifest Rule What is the new rule?

The U.S. Customs has implemented a new 24-hour manifest rule effective from December 2,

2002.The U.S. Customs Service will require carriers/NVOCCs to file manifest details 24-hours

before the cargo is loaded on a ship at the port of origin.

What is the scope of this rule?

The regulations apply to all vessels that will call at a U.S. port. The regulations apply to all

cargo being loaded aboard the vessel, whether US or foreign destination cargo.

Will Canadian destined cargo come fall under the scope of this new rule?

Yes, as most services into Canada call at a U.S. port prior to calling Vancouver. Most carriers

are extending the US Customs rule to Canadian destined cargo.

What procedures should clients be focusing on now?

Ensure your overseas shippers communicate all required information generally all B/L

information (see section below for details) to us at least 36 hours before the vessel cargo cut

off. Be as specific as possible with the cargo description on all documentation.

What happens if the 24-hour cut-off for submission of data is missed?

Under the new rule, if the required data is not submitted in time, the Canada Customs will

not approve the container for loading. Hence, the container will not be loaded and will be

left at the port of loading, and it is almost certain that storage costs incurred will be for

the account of the shippers. 2.5 Equipment Utilization & Factory Load Guidelines

A. Costco Wholesale Canada only accepts full Container Loads, no LCL containers. Shippers are to go by the P.O. quantity. Shipment is loaded directly by vendors into the container at the vendor’s factory. Off-site storage and stuffing is not allowed per Costco’s security requirements.

B. Loadability Guidelines for CY Cargo.

Container size Dimensions (L x W x H) Meters

Container Weight Limits

- lbs

45’ Needs approval 46,000

40’HQ 11.9 x 2.3 x 2.6 46,000

40’ Standard 11.9 x 2.3 x 2.4 46,000

40’ Reefer Needs approval 46,000

20’ 5.8 x 2.3 x 2.3 46,000

C. CY/Door Guidelines

Cargo must be evenly distributed inside the container. The vendor/factory should follow Costco’s PO & Item loading guidelines.

2.6 AMS and ACI Requirements for Shipments to Canada.

A. Vendors have to provide complete, accurate information when booking and notify Schenker of any change or revision after cargo delivery.

B. If vendor load, vendor must notify Schenker origin of loading details via fax or email 72 hours before SI cut off

C. The exact cut off is subject to Schenker customer service’s notice for each shipment.


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2.7 Commercial Document Submission

A. The following documents are to be submitted to the Schenker origin office:

Type of Document

Schenker at origin

Scanned Copy

Commercial invoice / CCI *Canada Customs I Invoice

1

Packing & Weight List 1

Regulated WPM (as required) 1

Certificate of Certificate of Origin (DECLARATION OF ORIGIN)

Vendor Note: Unless an actual governmenl Form A is required, this declaration/certificate

may simply be a statement on your company letterhead.

1

Phytosanitary Certificate (if applicable) 1

Form A/ ESO (if applicable) 1

B255 form (if applicable) 1

Costco Container Inspection & Seal Verification Checklist

1

Seaway bill of Lading 1

Fumigation Certificate (if applicable) 1

**Note: No originals are needed for release. All docs must be scanned and emailed to [email protected]. Originals may be asked from Canada Customs,

and only at that time will Costco request originals from the shipper. 2.8 Seaway Bill of Lading Instructions

The Costco Wholesale Canada policy, as per Teresa Jones Costco Issaquah Import Traffic

Director, is for Schenker, our Freight Forwarder, to supply a Seaway Bill of Lading. Original Bill

of Lading is NOT PREMISSABLE for Ocean shipments.

Seaway Bill and ACI/AMS filing on shipments

NOTE: For ACI /AMS filing, the shipper is responsible in dropping off the

container at least 72 hours prior to the booked ETD of the vessel. Failure to

due so will result in the container not shipping out in time and will be

rebooked on the next available vessel. This is considered to be a delay from

the shipper and the buying staff will be notified accordingly. A. Seaway Bill of Lading Destination: Shipments to Canada

Consignee: Depending on the destination of the order, the consignee can be any of our 4 depot locations: Depot 76/557/792 (Langley)

Depot 1034/1035 (Airdrie) Depot 571/572/559 (Brampton) Depot 573/574 (St. Bruno)

NEW

Suppliers MUST provide ALL commercial documents to Schenker origin office via email to [email protected] at least FOUR (4) business days

prior to ETD (expected time of departure).

mailto:[email protected]


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Please refer to the next page for the Letter to shipper’s document that explains that

shippers/vendors are responsible to provide proper booking information about the

Consignee address to “Schenker” for them to issue the Seaway Bill and ACI / AMS filing on

coming shipment.

Attached is copy of the letter.

_________________________________________________________________________

Schenker International (H.K.) Ltd., G.P.O Dear Costco’s Supplier, Please kindly draw your attention, in regards “Costco’s updated Instruction” that has been in effective from 1

st Jan 2010. You shall provide the proper booking information about the Consignee address to “Schenker” for them to issue the

Seaway Bill and ACI / AMS filing on coming shipment.

Meanwhile, the relevant information must be depended your cargo destination as below: COSTCO

Destination Depot (PO# starts with)

Consignee Declaration Notify Party Declaration

Depot 76, 557, 792

Costco Wholesale Canada 20313 100A AVE., LANGLEY, B.C, V1M3Y6, CANADA TEL : 604-888-6644

1st Notify - - Russell A Farrow Ltd.

P.O. Box 1177 106 Earl Thompson Road, Ayr, Ontario N0B 1E0 TEL: 1-800-235-8532 CTC: Costco Team 2

nd Notify – Schenker Of Canada Ltd.

Suite 3A – 1030 West Georgia Street, Vancouver, B.C.,

Canada V6E 2Y3 Contact: Costco Team Tel: 604-623-0816

Depot 1034, 1035

Costco Wholesale Canada 1003 HAMILTON BLVD NE AIRDRIE, AB, T4B0A1 CANADA TEL: 403-945-4266

1st Notify - Russell A Farrow Ltd.



Suite 3A – 1030 West Georgia Street, Vancouver, B.C., Canada V6E 2Y3 Contact: Costco Team Tel: 604-623-0816

Depot 573, 574

Costco Wholesale Canada 1251 DES PROMENADES BLVD., ST.BRUNO, QC,J3V6H1 CANADA TEL: 450-461-3469





Depot 571, 572, 559

Costco Wholesale Canada 8495 GOREWAY DRIVE, BRAMPTON, ON, L6T5N8 CANADA TEL: 905-792-1893






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If you have any question about such new documentation procedure, please feel free to contact us for clarification. Schenker Int'l (HK) Ltd. – Operation Canada Schenker International (H.K.) Ltd. All transactions are subject to the Standard Trading Conditions of the Company, copy of which is available on request. Schenker International (H.K.) Ltd. 38/F China Resources Bldg. Phone +852 2585 9688 26 Harbour Road Fax +852 2827 5363 Wanchai, Hong Kong [email protected] www.schenker.com.hk __________________________________________________________________

2.9 CANADA- PERU FREE TRADE AGREEMENT (FTA)

Agreement on the Environment between Canada and the Republic of Peru

The Agreement on the Environment between Canada and the Republic of Peru (the

Canada–Peru Environment Agreement) was signed on May 29, 2008, and came into

force on August 1, 2009. This Agreement commits both countries to encourage high

levels of domestic environmental protection, to foster good environmental

governance and to promote transparency and public participation. It also creates a framework for undertaking environmental cooperative activities.

The Environment Agreement, negotiated in parallel to the Canada–Peru Free Trade

Agreement (FTA), reinforces the concept that free trade should not take place at the

expense of the environment. The FTA itself also includes environment provisions and

a principles-based Environment chapter.

2.10 FORM A

General Conditions to Qualify for Preferences

In order to meet the general conditions to qualify for preference, products

must:

fall within a description of products eligible for preference in the

country of destination. The description entered on the form must be

sufficiently detailed to enable the products to be identified by the

customs officer examining them;

comply with the rules of origin of the country of destination. Each

article in a consignment must qualify separately in its own right; and,

comply with the consignment conditions specified by the country of

destination. In general, products must be consigned direct from the

country of exportation to the country of destination but most

preference-giving countries accept passage through intermediate

countries subject to certain conditions. (For Australia, direct consignment is not necessary.)

Availability of the Form A

http://ec.gc.ca/international/bilat/peru_env_agreement_e.htm

http://w01.international.gc.ca/MinPub/Publication.aspx?lang=eng&publication_id=386239&docnum=130%20

http://w01.international.gc.ca/MinPub/Publication.aspx?lang=eng&publication_id=387444&docnum=214

http://w01.international.gc.ca/MinPub/Publication.aspx?lang=eng&publication_id=387444&docnum=214

http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/andean-andin/can-peru-perou.aspx?lang=eng%20

http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/andean-andin/can-peru-perou.aspx?lang=eng%20


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The beneficiary countries are responsible for supplying the Form A. It is

normally available at the government foreign trade office or the Chamber of

Commerce of the beneficiary country.

APPENDIX A

FORM A - CERTIFICATE OF ORIGIN

1. Goods cosigned from (Exporter's business name, address,

country)

2. Goods consigned to (Consignee's name address, country)

Reference No.

GENERALIZED SYSTEM OF PREFERENCES

CERTIFICATE OF ORIGIN

(Combined declaration and certificate)

FORM A

Issued in ................................................

(country)

see the instructions that follow

3. Means of transport and route (as far as known)

4. For official use

5. Item

Number 6. Marks and

numbers of

packages

7. Number and

kind of packages:

description of

goods

8. Origin criterion

(See the

instruction that

fallow.)

9. Gross

weight or

other

quantity

10. Number

and date of

invoices

11. Certification

It is hereby certified, on the basis of control carried

out, that the declaration by the exporter is correct.

................................................

Place and date,signature and stamp of

certifying authority

12. Declaration by the exporter

The undersigned hereby declares that the above details and statements are

correct: that all the goods

were produced in

..........................................

(country)

and that they comply with the origin requirements specified for those goods in

the Generalized System of Preferences for goods exported to

..........................................

(importing country)

....................................................

Place and date,signature of authorized signatory

2.11 EXPORTER’S STATEMENT OF ORIGIN (ESO)

Please refer to the Memorandum D11-4-2, Proof of Origin, for changes and revisions

made to the “Guidelines and General Information” section to clarify policy or procedural issues that have arisen since the last revision to this Memorandum.

http://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-4-2-eng.html

http://www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-4-2-eng.html


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Please see below for a sample of an ESO form.

Memorandum D11-4-2

SCHEDULE

(Subsections 4(2) and (3))

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)

2.12 B255 form (Least Developed Country Tariff certificate)

If the item qualifies, the attached form must be completed and emailed to Schenker at time of sailing with all other required documents listed in SECTION 2.7.

SECTION 3: Local Charges and Application Fees Please contact your local Schenker contact listed in Section 1.1: Schenker Offices + Agents for local charges and application fee.

SECTION 4: Documents Required for Customs Clearance Only the documents listed below should be turned over to Costco’s forwarder at least 4 days prior to the vessel departing at origin via email to [email protected]

The following documents are required for ALL SHIPMENTS: Commercial Invoice (please refer to invoice description as provided by Costco buyer)

CCI (Canada Customs Invoice) Seaway Bill of Lading Packing List



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Costco Container Inspection & Seal Verification Checklist (This is a mandatory

Costco Compliance requirement for all vendors to provide at time of sailing.)

Form A / ESO (if applicable)

Official Meat Inspection Certificate, if applicable

Fumigation Certificate and / or Phytosanitary Certificate, if applicable

AMS & ACI

The below is an easy reference guideline for vendors/shippers of our document

distribution.

Costco Canada Customs Document Distribution

To be followed by ALL Costco shippers

Costco Canada Customs Document Distribution: The Customs documents for Ocean

containers must be provided to our PO Manager (Schenker) at time of sailing.

Email a set of scanned documents to Schenker to [email protected]

Include the following:

Costco Container Inspection & Seal Verification Checklist (This is a mandatory

Costco Compliance requirement for all vendors to provide at time of sailing.)

CCI (Canada Customs Invoice)

CI (Commercial Invoice)

Seaway Bill of Lading

Packing List

FORM A/ESO, if applicable

Official Meat Inspection Certificate, if applicable

Fumigation Certificate and / or Phytosanitary Certificate, if applicable

AMS & ACI

Please find enclosed COSTCO'S CUSTOMS COMPLIANCE DOCUMENTATION &

VALUATION REQUIREMENTS. It contains a sample of Costco’s CCI/CI requirements.

IMPORTANT COSTCO'S CUSTOMS COMPLIANCE DOCUMENTATION VALUATION REQUIREMENTS.msg

Any questions, please contact your respective Canadian Buying Department, or, Schenker as

follows:

For Canada/ Europe For Far East

Bonnie Yip Carman Cheung

Schenker of Canada Limited Schenker International (H.K.) Ltd.

Suite 3A - 1030 West Georgia Street, Ocean freight Export Department

Vancouver, B.C. Canada V6E 2Y3 21/F, Skyline Tower, 39 Wang Kwong Road,

Tel: 604-623-0816 Kowloon Bay, Hong Kong.

Fax: 604-623-0898 Phone +852 2585 9973

Cell: 604-761-6169 Fax +852 2511 6162



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E-mail: [email protected] E-mail: [email protected] 4.1 Commercial Invoice Requirements

Use the following as a checklist to ensure that the commercial invoice is formatted to include ALL Costco’s commercial invoice requirements. Any requirements that are not met will result in a delay in the Customs clearance of the shipment and will require the supplier provide a

revised invoice that satisfies all requirements. The commercial invoice must:

Be written in English State the invoice date

State the name of purchaser (Costco Wholesale Canada Ltd) State the name and address of seller/supplier State the full name and address of actual manufacturer (if the invoicing party is not

the actual manufacturer the manufacturer name and address must be clearly stated) State country of origin (the country of the origin-conferring factory, i.e. “made in

China”)

State Costco purchase order number State the correct Costco item number (from purchase order) State full detailed description of the item (provided by Costco buyer), material content

(not just model or style #), and wood statement

NEW RULE

IF ITEM CONTAINS ANY WOOD OR WOOD MATERIAL the invoice must clearly state the common and scientific name of the plant, the name of the country from where the plant was harvested and which component(s) of the item are made of wood (i.e. frame, handle, etc). For paper and paperboard products containing recycled content the declaration must also include the average percent of recycled content

regardless of species or country of harvest. IF ITEM DOES NOT CONTAIN ANY WOOD OR WOOD MATERIAL the invoice must include the following statement: “This item does not contain any wood or wood material.”

State the quantity in Costco sell units (state if multi-pack, i.e. 2 pack) State the sell unit quantity per carton and carton count State the net and gross weights per Tariff Number (state on invoice OR packing list) State the terms of sale (i.e. FOB Hong Kong) State the agreed payment terms (i.e. 100% net 30 ROG) State the unit cost price and extended cost price of the item

State the currency type (example: USD = U.S. Dollars) State any freight allowances or defective/spoils/cash discounts and calculate as per

the Costco purchase order (must be shown as separate line items on the invoice, *see invoice example for details)

State the Canada port of entry to which shipment is destined State accurate wood packing material statement (*see Wood Packing Material section)

Wood Packing Material Statement (“WPM”) The invoice must clearly make just one of the following two statements (either 1 or 2, as applicable) regarding the contents of any solid wood packing material in the shipment:

1.) This shipment does NOT CONTAIN wood packing material. 2.) All wood packing material is treated and marked in compliance with

ISPM#15.” Please refer to section 4.3 Wood Packing for further information.

Clearly state the supplier representative name and signature




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State the Food & Drug Administration “FDA” registration number (only if subject to FDA regulation)

4.1a Commercial Invoice Example Here is an example of a compliant commercial invoice:

[Supplier Company Name][Street Address]

[City, State, ZIP Code]

Phone [555-123-9999] Fax [555-123-9998]

Vendor # [xxxxxx]

Date: [Invoice Date]

Sold To: Invoice #: [Invoice Number]

Costco Wholesale P.O. #: [Costco P.O. #]

415 West Hunt Club Rd Payment Terms: [Net xx Days ROG or LC #]

Ottawa, ON K2E 1C5 [Cash Discount, if applicable]

Shipping Terms: FOB [Named Place]

ShipTo: Port Of Loading: [Port of Loading]

Costco Depot [XXX] Vessel/Voyage: [Vessel/Voyage Name]

[Street Address] Export Date: [Export Date]

[City, Prov., Postal Code] Port of Entry: [Port of Entry]

MARKS/NO'S QTY UNIT COST TOTAL

PO#: [Costco P.O. #]

Item#: [Costco Item #]

[Detailed Description] [xxx] $[xx.xx] $[xxxxx.xx]

[Wood Statement]

Harmonized Tariff #: [xxxx.xx.xxxx]

Sub-Total USD $[xxxxx.xx]

Defective Allowance [indicate % or dollar off per unit]: [xx.xx]

Freight Allowance [indicate % or dollar off per unit]: [xx.xx]

[Other additions/subtractions to full FOB price, if applicable]: [xx.xx]

TOTAL USD $[xxxxx.xx]

Country of Origin: made in [Country]

Manufacturer:

[Factory Name]

[Street Address]

[City, Province, Country]

TTL CTNS: [xxx]

TTL GR. WT: [xxxxx] KGS

TTL NET WT: [xxxxx] KGS

[WOOD PACKING MATERIAL STATEMENT] Authorized Signature

[Type Name, Title]

COMMERCIAL INVOICE

DESCRIPTION

Use Tariff code as provided by Costco.

If multiple Tariff classifications apply must

itemize the unit cost.

Description must include common name, detailed

description and material. If multi-pack, include piece

count.

Only if applicable.

If item contains textile components, list

the textile manufacturer(s) separately.

Typed name of authorized

supplier representative and

signature.

See commercial invoice requirements for details

about the Wood Packing Material Statement

details.

Every invoice must contain a positive or negative wood

statement. See commercial invoice requirements for the

wood statement details.

**All BLUE fields indicate where the supplier must fill in the appropriate value. **RED fields are notes for supplier reference only.

IF ITEM CONTAINS ANY SUCH NATURAL PLANT MATERIAL a

Phytosanitary Certificate and/or a Fumigation Certificate is required to be submitted along with all other shipping docs listed in Section 4. For further information on the REQUIREMNTS OF NATURAL REAL PLANT MATERIALS,

please refer to Section 4.4.


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4.1b CANADA CUSTOMS INVOICE - COMPLETION INSTRUCTIONS


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1. Vendor (name and address) - Vendeur (nom et adresse)

Name & remittance address of company Costco Canada is paying for the goods…(not the ship from location if different than the vendor location)

2. Date of direct shipment to Canada - Date d’expédition directe vers le Canada Date goods are shipping directly to Canada

3. Other references (include purchaser’s order No.) Autres références (Inclure le n° de commande de l’acheteur) Costco PO#

4. Consignee (name and address) - Destinataire (nom et adresse) Name and address of company (Costco depot) that will receive the goods. (DELIVERY LOCATION)

5. Purchaser’s name and address (if other than consignee) Nom et adresse de l’acheteur (S’il diffère du destinataire) Costco Wholesale Canada Ltd. 415 West Hunt Club Road Ottawa, Ontario K2E 1C5

6. Country of transhipment - Pays de transbordement

7. Country of origin of goods Pays d’origine des marchandises Where goods were mfg’d.

IF SHIPMENT INCLUDES GOODS OF DIFFERENT ORIGINS

ENTER ORIGINS AGAINST ITEMS IN 12. SI L’EXPÉDITION COMPREND DES MARCHANDISES

D’ORIGINES DIFFÉRENTES. PRÉCISEZ LEUR PROVENANCE

EN 12.

8. Transportation: Give mode and place of direct shipment to Canada Transport : Précisez mode et point d’expédition directe vers le Canada Indicate if shipped by truck, air, rail or ocean and place where shipped from.

9. Conditions of sale and terms of payment (i.e. sale, consignment shipment, leased goods, etc.) Conditions de vente et modalités de paiement (p. ex. vente, expédition en consignation, location de marchandises, etc.) Trade Discount and Terms of payment (i.e.: 2% NET 30 DAYS) must be entered here and NOT dedected off the total value of the invoice,

10. Currency of settlement - Devises du paiement Indicate if price is in US dollars or CAD dollars.

11. Number of packages

Nombre de colis

Ttl # of pkgs

shipped (must

match the B/L)

12. Specification of commodies (kind of packages, marks and numbers, general description and characteristics, i.e. grade, quality) Désignation des articles (nature des colis, marques et numéros, description générale et caractéristiques, p. ex. classe, qualité) Kind of packages (ctns, pallets, bags, etc) Detailed description of goods with the Costco item# DFI’s (deduct from invoice): (Spoils / Warranty / Freight / Selling / Depot / Defective Allowances, etc.) Type of allowance must be entered in this field. If more than one allowance, indicate separate line deductions.

13. Quantity (state unit) Quantité

(précisez l’unité)

Qty of each item shipped

Selling Price - Prix de vente

14. Unit price Prix unitaire

Price per item

15. Total

Extended total

DFI amount to be deducted.

18. If any of fields 1 to 17 are included on an attached commercial invoice, check this box Si tout renseignement relativement aux zones 1 à 17 figure sur une ou des factures Commerciales ci-attachées, cochez cette case

Commercial Invoice No. - N° de la facture commercialecomm invoice # (if applicable)

16. Total weight - Poids total 17. Invoice total Total de la facture

Less the DFI’s

Net

Gross - Brut

19. Exporter’s name and address (if other than vendor) Nom et adresse de l’exportateur (s’il diffère du vendeur) Company name & address the goods are shipped from (pick up location) for shipping to Canada if different from the vendor’s location.

20. Originator (name and address) - Expéditeur d’origine (nom et adresse) Company name & address who completes this invoice if different from the vendor.

21. Departmental Ruling (if applicable) - Décision du Ministère (s’il y a lieu) N/A

22. If fields 23 to 25 are not applicable, check this box Si les zones 23 à 25 sont sans objet, cocher cette case

23. If included in field 17 indicate amount: Si compris dans le total à la zone 17, précisez :

(i) Transportation charges, expenses and insurance from

the place of direct shipment to Canada

Les frais de transport, dépenses et assurances à partir du point d’expédition directe vers le Canada

(ii) Costs for construction, erection and assembly

incurred after importation into Canada Les coûts de construction, d’érection et

d’assemblage après importation au Canada

(iii) Export packing Le coût de l’emballage d’exportation

24. If not included in field 17 indicate amount: Si non compris dans le total à la zone 17, précisez :

(i) Transportation charges, expenses and insurance to the

place of direct shipment to Canada

Les frais de transport, dépenses et assurances jusqu’au point d’expédition directe vers le Canada

(ii) Amounts for commissions other than buying

commissions Les commissions autres que celles versées

pour l’achat

(iii) Export packing Le coût de l’emballage d’exportation

25. Check (if applicable): Cocher (s’il y a lieu) :

(i) Royalty payments or subsequent proceeds are

paid or payable by the purchaser

Des redevances ou produits ont été ou seront versés par l’acheteur

(ii) The purchaser has supplied goods or services

for use in the production of these goods L’acheteur a fourni des marchandises ou des

services pour la production de ces marchandises

Dans ce formulaire, toutes les expressions désignant des personnes visent à la fois les hommes et les femmes.


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FIELD 1 Vendor name and address. (remittance location where Costco sends payment for the

goods)

FIELD 2 Date that the merchandise will be tendered to carrier for export to Canada.

FIELD 3 Costco Purchase order number.

FIELD 4 Consignee name and address in Canada, DELIVERY LOCATION (DEPOT)

FIELD 5 Purchaser’s name and address – (sold to, buyer) – to whom the goods are sold to by the

vendor – must always indicate: Costco Wholesale Canada Ltd, 415 West Hunt Club Rd,

Ottawa, Ontario K2E 1C5

FIELD 6 "Not applicable".

FIELD 7 Country of origin of merchandise where the goods are grown, produced, or manufactured.

If more than one country of origin, enter "various".

FIELD 8

Indicate the mode of transportation and the place from which the goods began their

uninterrupted journey to Canada. Name of the exporting carrier (e.g., XTL Freight,

Farrow as well as the following statement

"Customs clearance by Farrow".

FIELD 9 Describe the terms and conditions of sale agreed upon by the vendor and the purchaser

(e.g., 15 days, net 15, 30 or 45 days)

FIELD 10 Currency of settlement (e.g., US Dollars or USD)

FIELD 11 Number of packages tendered to the carrier for export to Canada (must match the total

number indicated on the B/L and/or manifest).

FIELD 12

Complete general description of the merchandise along with type of packages (e.g., cases,

cartons, pallets) If field 7 indicates various for country of origin, each country of origin

must be indicated beside the description of goods. Indicate any DFI allowances in this

field. If more than one, indicate separate line deductions – MANDATORY CUSTOMS

REQUIREMENT. If vendor provides a separate invoice for payment to Costco, both

invoices must reflect identical costs and discounts.

FIELD 13 Quantity of each item shipped that is indicated in the description field in the appropriate

unit of measure.

FIELD 14 Unit price (price per article) provide a value for each item described in the description

field.

FIELD 15 Total price of the goods shipped by multiplying the unit price by the number of units

shipped. Indicate the DFI amounts to be deducted, if applicable.

FIELD 16 Total weight – show both net and gross weight.

FIELD 17 Invoice total – (total value) total price paid or payable for goods described on the invoice

or on the continuation sheet if used.. less the DFI amounts if applicable.

FIELD 18 If commercial invoice will be attached, indicate commercial invoice number.

FIELD 19 Exporter name and address if other than vendor.

FIELD 20 Name of individual, company name and address of the party who has completed the

invoice.

FIELD 21 Indicate file number of Customs ruling if applicable.

FIELD 22 Check box if fields 23 to 25 are to be left blank.

FIELD 23

If prepaid freight is included in the selling price of merchandise indicated in field 17,

freight amount must be indicated in field 23 (I). Otherwise, leave blank. The amount of

export packing must be indicated if additional packing was required solely for the overseas

transportation of goods.

FIELD 24 If applicable, enter freight amount to place of direct shipment to Canada, otherwise leave

blank. (same as field 23)

FIELD 25 If applicable, check appropriate box, otherwise, leave blank. Retain one copy with your records and send the balance with the shipment affixed to package or attached to the truckers bill of lading in an envelope marked "Canadian Customs Documents" "Clearance by UPS-SCS".


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4.1c Vendor CCI / Commercial Invoice Checklist

TO: All Costco Wholesale Canada vendors

RE: CORRECT COMPLETION OF CANADA CUSTOMS INVOICE and/or COMMERCIAL

INVOICE REQUIREMENTS FOR SHIPPING TO CANADA – VENDOR CHECKLIST

This is a checklist for use by vendors at time of preparing a Canada Customs Invoice (CCI) and/or

Commercial Invoices for all Costco Wholesale Canada importations into Canada. All of this information

must be included. In the event of any missing information, Costco Wholesale Canada may face customs

clearance delays and potential customs audit problems. Vendors may also face delayed payments.

IMPORTER (PURCHASER) NAME & ADDRESS – must always indicate:

Costco Wholesale Canada Ltd., 415 West Hunt Club Rd, Ottawa, Ontario K2E 1C5

VENDOR’S FULL NAME & REMITTANCE ADDRESS (where Costco sends payment to for the

merchandise, if different than the ship from location).

CONSIGNEE NAME & ADDRESS – varies by Costco Depot destination

COSTCO PO#

COUNTRY OF ORIGIN – where the merchandise was made/manufactured

COSTCO ITEM#

COMPLETE MERCHANDISE DESCRIPTION – with vendor part/model#

QUANTITY SHIPPED PER COSTCO SELL UNIT - must be correct and per Costco sell unit

designation. If multi-packs, state the pack or piece count as part of the merchandise description.

For example: if 8-pack = 1 each……if 4-pce set = 1 each

CURRENCY TYPE – indicate if in US funds (USD)

VALUE OF MERCHANDISE: as negotiated per the Costco PO.

PAYMENT TERMS – indicate the terms, i.e.: “2% NET 30 DAYS”

DISCOUNTS / ALLOWANCES – if applicable, include as a line item deduction and state the type of

discount or allowance that applies in order for Costco to legally pay duty against the NET Unit

Price…i.e.: “Defective Allowance”/“Freight Allowance”/“Spoils Allowance”/“Trade Discount”

DISPLAY MATERIALS – must indicate the actual true unit price/value of the display even if

shipped to Costco at NO CHARGE so that the correct duty may be paid by Costco. Values/unit costs

of .01 for displays are not acceptable by Canada Customs. Indicate ‘Value for Customs Purposes

Only’ for display items.

SOLID WOOD PACKING MATERIAL – if applicable, a statement that Solid Wood Packing

Material is NOT used.

Revised Jan 21, 2010


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4.1d Packing List Example

This is an example of a standard packing list.

4.2 Common Invoice Errors There are several issues related to the invoice that can delay a Canada customs clearance. To

ensure that your goods are not delayed in the Customs process please make sure to:

Calculate discounts and freight allowances properly and make sure that the CORRECT discount is applied since they can vary from PO to PO

Provide the full manufacturer name and address (including city name) Make sure the currency is clearly stated Provide the correct item and PO number

State the item description provided on the PO or as provided by your buyer Make sure the country of origin is clearly indicated on the commercial invoice/ CCI.

4.2a Other Common Document Errors Just like the invoice, there are several other issues in regard to other import documents that can delay the Customs clearance process.

The packing list is not included in the documents


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All documents are not clear and legible Any and all Other Government Agency forms are not included with the documents if

applicable (*see Other Government Agency section of this vendor guide*) 4.3 Other Government Departments

In addition to Customs and Border Protection, there are other agencies with jurisdiction over certain types of merchandise. The cargo could be reviewed, inspected or sampled by each pertinent bureau. Failure to comply with these regulatory agencies can result in penalties. The penalties can range from a warning to full seizure of the shipment and possible criminal proceedings against the importer. Depending on your item, OGD for importation can include:

To obtain CFIA release To obtain NRCAN release To obtain DFAIT permit Types of Certificates required for import Phytosanitary Certificates (proof of fumigation, certain produce items, etc) bike trailers that attach to vehicles.

Special Imports Measures Act (SIMA) This agency administers Anti-Dumping duties to protect Canadian products. Certain commodities such has rubber footwear manufactured in China, thermoelectric cooler manufacture in China. Wood Packing Please be advised of a new policy implemented for wood packaging material shipped to

Canada from China effective Sept 1, 2009. The CFIA (Canadian Food Inspection Agency) will no longer accept Phytosanitary Certificates as proof of fumigation due to high rates of non-compliance from China. A valid International Plant Protection Convention (IPPC) mark will be the only accepted treatment certification method. See attached word document which provides an example of the IPPC mark which must be applied to all WPM from China.

As of Sept 1/09, the new policy for WPM moving from China to Canada will be fully enforced.

Therefore, shipments from China containing WPM that do not have a valid IPPC mark will be denied entry into Canada. Please advise your vendors as soon as possible. Below are some links provided by UPS SCS on this subject if you require further information.

ISPM 15 logo

Communication (further information)

ISPM 15 - “Guidelines for regulating wood packaging material in international trade” delineates

approved phytosanitary measures that may be applied to wood packaging material (WPM) by countries in order to reduce the risks posed by the introduction or spread of associated quarantine pests.

WPM treated in accordance with the regulatory and operational requirements of the ISPM 15 is required to bear the registered ISPM 15 Mark (shown below). The purpose of this Mark is to

certify that the WPM has been subjected to an officially approved and recognized treatment or process, or a combination thereof. Moreover, the use of the Mark is intended to facilitate verification during inspection at the points of export or entry, thus easing the operational difficulties associated with verifying compliance with the treatment process for WPM.

The ISPM 15 Mark is registered by FAO according to the international registration procedure established under the Madrid System for the International Registration of Marks. The use of

the Mark is the responsibility of the countries through their official National Plant Protection Organizations (hereafter ‘NPPO’).


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The Mark is intended to be used in compliance with ISPM 15 (Annex II) and must correspond to the registered format of the standard as shown below:

XX = represents the ISO country code. 000 = represents the unique number assigned by the national plant protection organization. YY = represents either HT for heat treatment or MB for methyl bromide fumigation.

Recent practices reveal at times substantial divergence from the Mark used in ISPM 15. Such

variations in the Mark increase the risks of counterfeiting and imitation which may cause confusion as to whether the WPM has been legitimately certified. Multiple variants of the Mark may weaken the purpose for which the Mark was established and this may result in a loss of rights, trade and decline in the quality of related products. Lawful uses of the Mark are put at risk, and ultimately the intended purpose of ensuring that the WPM does not serve as a pathway for plant pests is undermined.

We therefore urge Contracting Parties to ensure that the Mark is always used in conformity with the ISPM 15 model format. Any other variations of the Mark are neither legally valid nor

protected.

4.4 Requirements for natural real plant materials

999 Lake Drive – Issaquah, Washington 98027 USA

October 18, 2010

Re: FUMIGATION -- USE OF NATURAL REAL PLANT MATERIALS FUMIGATION CERTIFICATE – To All Costco Destination Countries PHYTOSANITARY CERTIFICATE and/or FUMIGATION CERTIFICATE– To Canada In the event you are using any natural plant materials as components on any finished product,

you must ensure that 100% of these materials are properly treated, dried and processed with safe chemicals as well as fumigated for insects and pests -- prior to use on the final product and prior to shipments. Make sure all seeds are completely removed from the plant material.

By natural plant materials, we mean such materials as, for example: Wicker -- e.g. Rattan, Willow, Bamboo, etc.

Tree Barks / Tree Branches / Tree Sticks / Twigs / Vines. Grape vines are not allowed Pine Cones, Plant Pods Straw, Dried grasses, Leaves, Moss. Rice straws are not allowed Costco will require the correct Latin specie and genus names for all natural plant materials PRIOR to order placements. This material will need to be approved in advance by Costco.

Note that some of these materials may not be used at all even if they are fumigated. Banned materials will change from time to time.

XX - 000 YY


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Please note that in the event that live or dead insects or insect eggs or plant seeds are detected at the destination country, Customs & the Department of Agriculture or CFIA (Canadian Food Inspection Agency) in the destination country will require the immediate return of the containers to the exporting country.

========================================================== Re: Use of Wood pallets / Wood Crates / Other Regulated Wood Packing Materials

(WPM)

You must comply with U.S. / IPPC (International Plant Protection Convention) regulations and markings on WPM. See Costco’s separate instructions on “Regulated Wood Packing Materials.” See: www.aphis.usda.gov

Note also regulations on Formaldehyde emission standards on the use of manufactured woods.

SECTION 5: SUPPLY CHAIN SECURITY

5.1 Procedure for the Costco Container Inspection & Seal Verification Costco Form

The Costco Container Inspection & Seal Verification Checklist is a required document to be

completed by all Costco factories at time of container loading. This applies for both

FOB and FCA terms.

The loading facility is required to complete the form with seal number and signature and tender to Schenker origin with commercial documents. The factories’ are responsible to sign and complete the form in English and submit it to Schenker via email @ [email protected], along with all other documents outlined

in Section 4. The factory is also responsible to keep a copy on file. If any container conditions are found to be UNACCEPTABLE, the factory may explain in Chinese. If more space is needed, please attach a separate piece of paper to the form and reference at the top: Costco P.O.# / Costco Item # / Container # / Seal #. You must also inform Costco vendor or Costco directly on SAME DAY of this occurrence to avoid potential late shipment penalties pending replacement container.

For products shipped from China, fumigation must be conducted by China CIQ

(Inspection & Quarantine) Bureau or accredited pest control companies in other

countries. The treatment must be verified by the National Plant Protection

Organization (NPPO) for both Phytosanitary Certificate and Fumigation Certificate. The approved chemical is Methyl Bromide which will completely destroy all insects and

pests, including any eggs that may hatch later, if the fumigation process is done properly. Do not use other non-effective chemicals.

After fumigation for the required amount of time, all containers must be properly

degassed to < 5 ppm of Methyl Bromide. There must not be any hazardous lingering

chemical residues at the time of shipment that could present a health hazard to humans later on.

For shipments to U.S. and other Costco destination countries: FUMIGATION

CERTIFICATE is required. For shipments to Canada: PHYTOSANITARY CERTIFICATE and/or FUMIGATION

CERTIFICATE is required.

These two Certificates are essentially NOT the same per CFIA requirements. This Certificate must include the Costco P.O. # / Container # / Seal # / Date / Brief

Description of the merchandise and % concentration of Methyl Bromide, temperature and other relevant information. This certificate must be in English.

Note that one Certificate is required per Costco P.O. = One container.

The original Certificate goes directly to Costco’s customs broker and a copy with the

full set of shipping documents to Costco’s freight forwarder (UPS, for US and Schenker, for Canada). Original is not required for Canadian imports.

http://www.aphis.usda.gov/



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5.1a Costco Container Inspection & Seal Verification Checklist

This is Costco’s Checklist to be completed by all Costco factories at time of container loading.

INSTRUCTIONS

This form must be completed for EACH Costco container and submitted to Costco’s designated freight forwarder with other required commercial shipping documents.

Factory must keep the original signed copy on file for Costco’s designated auditor to review as required.

This document must be retained at the factory for minimum of one year from date of container loading.

SHIPMENT INFORMATION

Costco PO#: Container #:

Costco Item #: Seal #:

FACTORY INFORMATION

Factory Name:

Factory Address:

SEAL VERIFICATION

Seal must be a PAS ISO 17712 approved high security seal. Yes No

CONTAINER INSPECTION

The physical integrity of the container structure must be verified prior to loading.

Area of Inspection Acceptable Describe unacceptable condition *

1 Undercarriage

Inspect prior to entering facility

Support beams are visible Yes No

2 Outside/Inside Doors

Secure and reliable locking mechanisms

All bonding materials are same color

No Loose Bolts/Plates and repairs Yes No

3 Right Side

No unusual repairs to structural beams

Repairs to the walls on the inside of the container must be visible on the outside.

Tap side walls and listen for hollow sound Yes No

4 Left Side

No unusual repairs to structural beams


Tap side walls and listen for hollow sound Yes No

5 Front Wall

Blocks and vents are visible

Tap front wall and listen for hollow sound

Use measuring tape and/or string to determine length of container Yes No

6 Ceiling/Roof

Blocks & vents are visible


Tap ceiling and listen for hollow sound Yes No

7 Floor

Floor is a certain height from ceiling

Floor is flat. No unusual repairs. Yes No

8 Light Test

Close doors and check if there’s light coming through from the sides. Yes No

*If an unacceptable condition is found, the container should NOT be used. Contact Costco’s designated freight forwarder IMMEDIATELY. Please document incident if verification is needed by Costco. AUTHORIZED SIGNATURE

Container Loading Supervisor Signature:

Container Loading Supervisor Print Name:

Date: Time:


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5.2 C-TPAT (USA) / PIP (CANADA)– Customs & Trade Partnership Against Terrorism /

Partners in Protection

Costco is dedicated to maintaining the highest level of security in the supply chain from the factory door to the final Costco depot destination. Costco is a validated participant in U.S. Customs & Border Protection program C-TPAT / PIP. As part of this program, Costco verifies that all business partners are meeting C-TPAT / PIP security requirements. Questions on supply chain security may be sent to: [email protected].

Supply Chain Security Agreement Costco Wholesale requires that the Supply Chain Security Agreement be reviewed and the Acknowledgment form be completed and on file for EVERY item and factory PRIOR to shipment.
