Orchard Supplier – Import Routing Guide- Page 1 of 33 Revised : 04/26/2018

Revised : 04/26/2018

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Orchard Supply Hardware Import Routing Guide

Revised: April 2018

Table of Contents

Topic Pages Overview of International Shipping & Transportation 2-5 Booking 6 Carton Marking, Labeling & Container Loading Requirements

7-13

Document Requirements & UPS Contact Information 14-28 Container Loading Requirements (Consolidation & Non Consolidation Requirements)

29-30

CTPAT Airfreight & Samples

32 33

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Yellow highlighted sections indicates important revisions

Orchard Supplier – Import Routing Guide – Overview of International Shipping &

Transportation

Overview The Import Routing Guide provides shipping and transportation requirements for direct import shipments to Orchard. Content includes

• supplier’s booking to forwarder • shipping terms • product testing • carton marking • container loading • shipping document requirement

For additional resources regarding Orchard shipping requirements please refer to: http://www.osh.com/SPGlobalSourcing Please email any questions to: Imports@osh.com

• Prior to being issued an import Purchase Order (PO), the supplier will be

responsible for submitting a completed Import Offer sheet (IOS) in an excel file format per merchandise item to the appropriate Global Sourcing Merchant. Please use the current version of the IOS found at http://www.osh.com/SPGlobalSourcing

• Orchard’s forwarder receives electronically transmitted PO details from Orchard and uses the PO information to verify import supplier booking.

• Vendor is required to complete and return Orchard’s CTPAT vendor’s agreement, and supply a completed Factory Vulnerability Self-Assessment for each factory. Every factory must submit annually either new CTPAT Self-Assessment, or provide an acceptable third party CTPAT audit conducted within the previous 12 months.

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Supplier Responsibility

The Supplier is responsible for: • Booking cargo timely: 21 days in advance of first shipping window date on PO.

28 days in advance of first shipping window date for priority hot shipments. • Resolving all order variances and changes prior to booking. • Ensuring that all Orchard/Lowes Quality Assurance (QA) requirements are

completed timely. For more information please go to the Lowe’s “Enterprise Quality Assurance” (EQA) website for details on Quality requirements and processes: http://www.loweslink.com/llmain/Enterprise_Quality_Assurance.htm . If you are prompted for a password to view pdf documents please use: Lowes2018.

• Notifying UPS when cargo will be ready. • Delivering cargo to the agreed upon location( Port or UPS CFS station) to ensure

cargo sail by last ship date of PO shipping window • Providing Importer Security Filing(ISF) data to UPS 72 hours prior to estimated

vessel departure(ETD) • Providing all required and complete shipping documentation to UPS within 3

calendar days of vessel departure • Complete all required export customs at origin. • Verified Gross Mass (VGM) form must be submitted to UPS prior to the carrier

specific cutoff(refer to SOLAS compliance)

United Parcel Service (UPS) Services

United Parcel Service (UPS) is Orchard’s designated freight forwarder and supplier management provider. All commercial shipments must be booked in advance, and coordinated via UPS. UPS will be responsible for: • Cargo booking • Document collection • Document verification: Data content and required documents • Document forwarding • ISF Filing • Consolidation

International Shipping Terms (INCOTERMS)

Orchard’s use of international shipping terms (such as FOB or FCA) are as per INCOTERMS 2010. For specific definition of any trade term used by Orchard, refer to INCOTERMS 2010 (http://www.iccwbo.org/incoterms/).

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Orchard’s Primary Term

• FOB (Free on Board): Supplier is responsible for delivering goods packaged and prepared for export, cleared through export Customs, and loaded onboard a vessel chosen by Orchard, at the named port on the Supplier’s side. This is Orchard’s default purchase term.

Supplier will be responsible for delivering goods to the port or consolidation point designated on Orchard’s PO, providing any required documentation, and ensuring that any required export customs clearances are completed.

Shipping Window

Last Ship date = Cargo must be on vessel and depart by Last Ship date. Supplier must comply with, and ship as per the agreed upon terms of the Orchard PO. The PO indicates the “First Ship Date” and “Last Ship Date” (also called the “shipping window”). The supplier must plan and coordinate with UPS to book with the cargo ready date (ship date) within the shipping window.

Cargo Ready The Cargo Ready date is defined as the date the shipment has:

• Current and compliant test report as approved by Lowes/LGS • Completed production. • Completed and passed Lowes/LGS required pre-shipment inspection and been

issued a Certificate of inspection. • Cargo is physically ready to be loaded.

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Product Testing and Pre-Shipment Inspection

Orchard is committed to providing quality merchandise to our customers. • To safeguard the quality of purchases and to ensure merchandise will meet our

customer’s expectations; Orchard requires that all merchandise meet Federal, State and Local U.S. laws and regulations, as well as our expectations for product quality and packaging. Important: For all items, Orchard reserves the right to ensure products are tested and inspected prior to shipment.

Supplier In-House Testing • Orchard recommends suppliers perform in-house product pre-testing prior to

submitting product for testing at a third party test lab. • If failures or damages occur, most can be easily analyzed and fixed in-house

within a short amount of time. Third Party Testing • To ensure product testing covers Federal and California regulations, and industry

requirements related to performance, reliability, quality and safety, product must be tested with an independent, accredited third party test lab.

• Orchard strongly suggests that the Supplier submits test results at least 8 weeks prior to their scheduled ship date.

o Doing so will allow for proper organization and implementation of testing and will help to avoid last minute issues and problems.

o This will also guarantee that sufficient time is allotted to take corrective action for failed test results.

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Pre-Shipment Inspection (PSI)

A Pre-Shipment inspection (PSI) is required for all shipments prior to shipping. Pre-Shipment inspections are conducted by authorized third party assigned by LGS QA.

Supplier must submit Inspection Advice directly to LGS QA’s public mailbox inspadSH@Lowes.com to apply for PSI arrangement.

The PSI will look at workmanship of the product to ensure it meets quality standards.

Inspections will also include but not limited to review of:

Documentation for Federal and State Regulations, Industry Certifications, product and package quality, assessment of corresponding functional attributes, case count, and labeling.

The PSI is a vendor-pay inspection program.

For more information please go to the Lowe’s “Enterprise Quality Assurance” (EQA) website for details on Quality requirements and processes: http://www.loweslink.com/llmain/Enterprise_Quality_Assurance.htm. If you are prompted for a password to view pdf documents please use: Lowes2018.

Lead time Overview (based on a 90 day lead time)

POSentEDItoVendor

BookingbyVendorwithUPS 1stShipDate Inspection

LastShipDatePOonVessel Oakland DC

21 DAYS - Vendor to book 21 days prior to 1st Ship Date.

10 DAYS Ship Window Window

60 DAYS Production and delivery LEAD TIME

90 DAYS LEAD TIME

Perform Product Testing

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Booking Requirements

Orchard Supplier – Import Routing Guide – Booking • Suppliers are required to submit bookings 21 days in advance of the first date

of the shipping window, by using UPS’ booking sheet (example below) 28 days prior to first ship date for priority hot shipments.

• Booking requests are emailed to UPS and must include the following information.

1. PO Number 2. Total Number of Cartons per PO 3. Total Number of CBMs by PO 4. Total Number of Kilograms by PO 5. Total Number of Cartons 6. Total Number of CBMs 7. Total Number of Kilograms 8. Cargo Ready Date

• Any booking or shipping questions should be directed to the local UPS contact listed in this guide.

• Oakland is the destination port unless the Orchard PO specifies otherwise.

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Orchard Supplier – Import Routing Guide – Carton Marking

Carton Marking Requirements

Orchard requires that all cartons and pallets be properly marked. For questions regarding how to properly label or mark Orchard cartons email: dc.vendorsupport@osh.com

• Carton markings are required on one side of each box only. • Each Carton marking must include:

o Ship to name and address o P.O. number o SKU number o Item#- also called Stock item# or Suppliers model number or model

number. o Quantity of sellable units in each carton o Country of origin of the items o GS1-128- also called SSCC-18 or UCC/EAN-128 Shipping Label o Content label o Note: If box contains of a set consisting of 1 sellable SKU, add Box

numbers, such as Box 1 of 3 below the country of origin. o Inner packs should have model and quantity, and have a UCC-14

barcode.

Orchard Standard Carton Markings Example

ContentLabel

GS1-128 label

CartonMarking

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Shipping Label Creation GS1-128

Shipping labels are used to provide Orchard with ship from, ship to and purchase order information for each shipping container. Orchard’s shipping label guidelines are based on the general label specifications for use with GS1-128 (formally known as UCC/EAN-128 or SSCC-18) identification codes contained in the Application Standard for Shipping Container Codes (ANSI/UCC6-1996). • Use GS1-128 Shipping Labels • The GS1-128 label can be generated by the vendor through these EDI

providers: o SPSCommerce-asiasupport@spscommerce.com or o Liason-ALevy@liaison.comoro byanyvendorselectedthirdparties

• GS1-128 can be either legal size(216x356 mm) or A4(210x297 mm) • For cartons 8 inches or more high- see chart below for label size

Size of paper Mm inch size of each sticker Legal size 216 x 356 mm 8.5 x 14 inch 4.25 x 7 inch A4 size 210 x 297 mm 8.3 x 11.7 inch 4.15 x 5.85 inch

• When the package is less than 8 inches high, use the 3 inch high by 8-inch wide format.

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Shipping Label GS1-128 general information

Contact SPS or Liason directly for assistance in generating the GS1-128

Shipping Label Example

Shipping Label Content 1. Legible Ship From name and address. 2. Legible Ship To name, unit number and address. 3. Legible PO#

• Use a minimum 24-point type size (0.33 inch high). • Precede PO# with the text PO. • List no more than five POs for the same department on

a single shipping label. • Orchard P.O. Format starts with 1570 followed by 8

digits 1570XXXXXXXX • Example P.O. 157000000154 • Department number is no longer required on the

shipping label. 4. SSCC-18 Barcode (GS1-128 Serial Shipping Container Code)

• The barcode height must be 1.25 inches. • Print legible number above the barcode. • The barcode must meet the quality standards specified

in ANSI X3.182-Bar Code Print Quality Guideline. • To insure 100% first time rate on all barcodes, test the

symbols periodically as print quality can change over time.

• Precede SSCC-18 code with the application identifier “00”.

• Enclose the Application Identifier (AI) in parentheses

1

2

3

4

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Barcode Symbol Identifiers There are 24 characters in total encoded in the SSCC-18 Serial Shipping Container Code. Included are both symbol (machine readable) and data (human readable) characters.

• There are four symbol characters present in the SSCC-18 symbol, which include the combination START character and the FNCI character, the MOD 103 check character and the STOP character.

• The remaining 20 data characters are human readable and required for automatic identification of serialized shipping containers. o These 20 characters include the Application Identifier (AI) followed by the SSCC-18 code. o The human readable interpretation of the AI should be separated from the remainder of the symbol data by use of

parentheses. o Transmit the 20 data characters in the associated EDI 856-Ship Notice transaction.

Barcode Details

GS1-1283”x8”LabelExample

Shipping Label Placement

Place GS1-128 shipping label as required below

Cartons Placement Place label on the bottom right corner of the long side of the carton.

• The label should be at least 2 inches from both the right edge and bottom edge of the shipping carton to prevent damage of the bar code due to edge crush.

• Position the label parallel to bottom edge of the carton. • The label should NOT wrinkle during application. • The brand identity should NOT be compromised • For color retail shipping cartons, which will be on display in stores,

carton markings and labels should be placed on the bottom of the shipping cartons. Don’t cover the colored artwork of the carton.

• For cartons over 39” tall, Place the bottom of the shipping label within a range of 20-30 inches above the natural bottom of the transport package

Pallets Place the shipping label to the right of center of a vertical face, allowing a minimum of 2 inches from the edge. • Place the label in the upper one-half and not more than 60 inches from

the bottom of the pallet. Place the label on the upper right hand corner on the side of the pallet that the forks would enter.

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Content ID Label (UCC-14)

Orchard requires a carton level identification at the point of receipt. A carton is defined as any single SKU, carton, or pallet with an outer wrapping and containing a quantity greater than one. Inner packs (cartons) should have a UCC-14 barcode. Content ID label must be either UCC-14 or ITF-14 or GS1-128 barcode formats. • Create content identification labels for every master carton with more than one

item in the carton. • Barcode label- there are three methods of generating barcodes that are acceptable:

1. Factory/vendor generated 2. Third Party generated:

o SPSCommerceorLiasonaretwoOrcharddesignatedThirdPartyEDIprovidersthatcangeneratelabels-vendorscanusetheirownEDIproviders.

o LabelGeneration:WhenthepurchaseorderistransmittedbyOrchardviaEDItothevendor,the14digitbarcodenumberisincluded.AftercompletingtheASNthroughthroughSPSorLiason,vendorscanthenchoosetoprinttheShippingLabel.ThenumberoflabelscreatedwillbebasedonthenumberofcartonsontheASN.Barcodegenerationproviders:

• SPSCommerceCustomerOperationscustomeroperations@spscommerce.comSPSCustomerService:888-739-3232

• LiaisonTechnologiesT:+1805.882.0525|M:+1805.895.0684ALevy@liaison.com

• FinelineTechnologiesisalsoanapprovedthirdpartyvendorforcontentlabelhttp://www.finelinetech.comHKTelephone:852-21569788

3. Internet generated- search online for UCC-14

• Exception: No content label will be required ONLY in the case of a master carton containing a single unit AND when the carton has a UPC label.

• Exception: A content identification label is not required for cartons containing different item/SKUs.

Example: Manually generated acceptable barcode SKU(6033310),followedby000’s,endingwiththecasepackof12+checksum(3)

Refer to the examples (ITF-14 or GS1-128) below. Either format is acceptable

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Detailedinstructiononbarcodecontentisavailableonmultiplesitesontheinternet.

Contentlabelplacement

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Special Handling Packaging Graphics

Packaging graphics are used to provide special handling, storage, and warehousing instruction. • Identify shipping cartons that require special handling using the appropriate

product handling graphics. • Place handling instructions and graphic symbols on all sides of the shipping carton

on the upper portion of each side. o Place symbols indicating the acceptable handling equipment to be used on

the appropriate sides of the carton. The handling graphics may vary from one side to the next based on product configuration and type of container.

o Place stacking height information directly below the handling graphics. o Place the words FRONT, SIDE, or BACK directly below or adjacent to

the stacking height information.

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Orchard Supplier – Import Routing Guide – Document Requirements & UPS Contact Information

Document Requirements

Orchard is committed to be fully in compliance with all U.S. Customs and other U.S. Agency regulations and as part of that commitment requires complete and accurate documentation. A complete set of required documents must accompany each shipment. List of required documents

1. Commercial Invoice 2. Packing List 3. Certificate of Inspection(IC)- replaces ATS (Authorization to Ship) 4. Container Load Plan 5. Photos of container loading 6. All other documents that are required for the shipment (i.e. Free Trade

certificate of origin, Lacy Act form, etc.) 7. Recommended document: completed OSH Container Inspection Checklist

• For FCL (full container load) cargo, Documents and 2 digital photos of laden container must be provided (preferably via email attachment) to Orchard’s Forwarder within 3 days of vessel departure.

• For Less-than-container-load cargo, Documents must be provided to Orchard’s forwarder same day when cargo delivered to CFS warehouse.

• Documents must show the following information(Ship to may change if shipped to Miami or Long Beach)

CONSIGNED TO: Orchard Supply Hardware - Corporate Office 6450 Via Del Oro San Jose, CA 95119

Notify Party Information: UPS Supply Chain Solutions, Inc. 550-3 Eccles Ave South San Francisco, Ca 94080 SCAC Code – UPS or UPSS

SHIP TO and Additional Notify Party Information: Orchard Supply Hardware 2650 N Mac Arthur Dr. Tracy, CA 95376

Reminder- Submitting Invoices for Payment For payment request purpose, supplier should follow “Orchard Supplier import payment process”, regarding required documents to be sent to Orchard Account Payable- http://www.osh.com/SPGlobalSourcing

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UPS Office Contact Information

Click on this link Origin Specific Contact to refer to these contacts information. http://www.osh.com/medias/sys_master/h41/hac/8812570378270/orchard-supplier-apac-origin-contact-list.pdf • The UPS offices are offices that Orchard has established routes to Orchard

Supply Hardware. • For any port not listed on the grid, contact Imports@OSH.com or the Orchard

Global Sourcing Merchant for assistance in establishing contacts and routing.

Commercial Invoice

The Commercial Invoice is the primary document Customs uses to ascertain classification, valuation, and ultimately duty payments owed on each imported shipment • If the invoice detail is incomplete, does not support or conflicts with the HTS

commodity codes on the entry, Customs has the discretion to deny entry, inspect the cargo or request additional information from the importer.

• Inspections cause delays, additional costs and supply chain inefficiencies for Orchard at the port of arrival.

Special Invoice Description Requirements

Special Invoice description requirements for specific commodities are: • Candles: Must show specific breakdown of material used to make candle; if

candles are citronella, the percentage of citronella must be noted on invoice and a TSCA certificate must be completed.

• All sets must list all items in sets (e.g., a 5 piece patio set must describe the individual items: 3 metal chairs, 1 metal and glass table, 1 wood and fabric umbrella).

• Furniture sets must show the price per each item in the set. • Items eligible for duty free programs (GSP/NAFTA) must state so on invoice. • For any items containing content from animals (feathers, shells, etc.) - type of

content must be noted on invoice- see Fish and Wildlife requirements below. Only feathers from chickens, peafowl, turkey and barnyard mallards raised in captivity are exempt from Fish and Wildlife.

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Commercial Invoice Completion

The Commercial Invoice shall contain, at a minimum, the following information (Recommended format using SPS system)

17

3

167

5

7 8 9 1000

11 12 13

15

4

6

2

1

18

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1) Date 2) Consigned to (Orchard Name and Address) 3) Ship to (Orchard DC location and address) 4) Supplier/Vendor Name and Address

(This is the party Orchard will pay) 5) Name and Full Address of Manufacturer (Factory) 6) Terms of Sale (FOB, FCA, or other term from the P.O.) 7) Orchard PO number 8) SKU number 9) Model number 10) Description of Goods (Detailed description of the merchandise

supporting the HTS classification.) 11) Material Component- description of what item is made of

Note: Any items containing wood must be identified. 12) Harmonized Tariff Number (HTS #) 13) Quantity per line item (Must reflect the actual units shipped)* 14) Unit Price and Extended Amount on each line in US Dollars 15) Total Value of the Shipment in US Dollars

Note: Any discounts taken must be shown here

16) Country of Origin Per Line Item 17) Statement regarding Solid Wood Packaging Material if applicable 18) Consumer Products Safety Act Declaration- either • “the rules of CPSIA are not applicable” or • “the rules of CPSIA are applicable”- CPSC Certificate must be

completed and included if the CPSIA is applicable Other Import Notes Important: Invoice must be completed in English • If the item is ordered in a case pack or as a pallet, the quantity must

reflect the quantity of retail items that would be shipped (e.g., If there are 20 socket sets in a case pack the quantity must show 20 sets per case pack.)

• The total value of the invoice should match the purchase order amount.

• Note whether items are eligible for any Free Trade treatments such as GSP or NAFTA

Packing List Invoice and Packing List Generation (SPS)

The Packing List shall contain, at minimum, the following information- see Fig. 1 • Orchard PO # • SKU# • Quantity Per Line Item (Refer to item #11 above)* • Gross/Net Weight in KGS • Total Number of Boxes in Shipment • Dimensions of Shipment • Final Delivery Address • If shipment consists of multiple container loads, packing list must show the pieces

and weights of each container

PackingListExample:

Orchard has developed an invoice and packing list template with SPS- the example shown above is an SPS generated invoice. Vendors who generate their ASN through SPS can also use SPS to generate invoices and packing lists which meet all of Orchard’s requirements and are pre-populated from purchase order and ASN data. This standardized format will greatly improve Customs compliance and reduce delays due to incomplete invoices and packing list. Orchard strongly recommends Orchard vendors use our standardized format For more information contact Imports@osh.com or SPS to be added to the vendors who are using this approved format.

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Certificate of Origin (recommended- not required)

Certificate of origin stating product conforms to U.S. standards, and that each product marked with country or origin. For countries with product from countries with product eligible for duty free status under the Generalized Systems of Preferences (GSP) a GSP Form A is required. For shipments from Mexico or Canada eligible for NAFTA, a completed NAFTA certificate of origin is required in advance of the shipment.

Certificate of Inspection(IC)

The Certificate of Inspection(IC) Form issued by Lowes/LGS replaces the Authorization to Ship (ATS) Form is issued by the Orchard Supply Hardware Quality Assurance Team (QA) and sent to suppliers after review of a current test report and/or pre-shipment inspection. Lowes/LGS will issue the IC.

UPS has been instructed to check every shipment for an IC and will not allow an order to ship without one.For more information please go to the Lowe’s “Enterprise Quality Assurance” (EQA) website for details on Quality requirements and processes: http://www.loweslink.com/llmain/Enterprise_Quality_Assurance.htm . If you are prompted for a password to view pdf documents please use: Lowes2018

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CPSC General Certificate of Conformity (GCOC)

GCOC must be completed and sent, if required. If product being shipped is not listed on the cpsc.gov website as falling under the category of CPSC, then make a note is indicated on your commercial invoice, stating “The rules of CPSIA are not applicable.” The following websites are included below for your reference.(check these links) https://www.cpsc.gov/es/regulations-laws--standards/statutes/the-consumer-product-safety-improvement-act/

https://www.cpsc.gov/Business--Manufacturing/Business-Education

The GCOC certificate is available at Orchard’s vendor site: http://www.osh.com/SPGlobalSourcing

GCOC Example

Insert the Orchard PO number and Orchard SKU number. Example: xx-157x-xxxx-00/xxxxxxx

NameAddress

Insert at least month and year.

E-MailTelephone

Orchard Supply Hardware6450 Via Del OroSan Jose, CA 95119E-mail QA@OSH.COM Tel: 408 281 3500

Insert name, full mailing address, and telephone number of the U.S. importer.

Check

Phthalates (PL 110-314, Sec. 108) (GCOC requirement is included Stayed. Product must still comply with all applicable rules and bans. Passing test results are still required to show compliance.)Small Parts (16 CFR 1501, 1500.50-53)

Standard Consumer Safety Specification for Toy Safety (ASTM F963-2008) (GCOC requirement is included Stayed. Product must still comply with all applicable rules and bans. Passing test results are still required to show compliance.)

Sharp Points or Edges (16 CFR 1500.48-49)

Standard for Extreme Flammable or Flammable Solids (16 CFR 1500.3(c)(6)(vi)

Drawstrings CPSC Guidance Document (ASTM F1816)Standard for the Flammability of Children‘s Sleepwear (16 CFR 1615 / 1616)Standard for the Flammability of Textile Clothing (16 CFR 1610) Test Exempt

GENERAL CERTIFICATION OF CONFORMITY (GCOC)CHILDRENS PRODUCT CERTIFICATION

Date Product Manufactured

Product Description

Place of Manufacture

Insert Orchard SKU description. Describe the product covered by this certif ication in enough detail to match the certif icate to each product it covers and no others.

Manufacturer

U.S. Importer

Total Lead in Substrate (PL 110-314, Sec. 101) (GCOC requirement is included Stayed. Product must still comply with all applicable rules and bans. Passing test results are still required to show compliance.)

Total Lead in Paint and Surface Coating (16 CFR 1303)

Standard for the Surface Flammability of Carpets and Rugs (16 CFR 1630 & 1631)

Insert the name, full mailing address, e-mail address and telephone number of the foreign or domestic manufacturer of the product.

Orchard PO Number/Orchard SKU Number

We certify this product complies with

If different from the manufacturer's address, provide at least the city and country or administrative region of the place w here the product w as f inally manufactured or assembled. If the same manufacturer operates more than one location in the same city, provide the street address of the factory.

Standard for the Flammability of Mattresses (16 CFR 1632 and 1633)

Adult Furniture

Adults

Children (age 12 and younger)

Standard for the Flammability of Textile Clothing (16 CFR 1610) Test ExemptStandard for Extreme Flammable or Flammable Solids (16 CFR 1500.3(c) (6) (vi)

Total Lead in Paint and Surface Coating (16 CFR 1303)

Total Lead in Candles with Metal-Cored Wicks (16 CFR 1500.17(a)13 )

Check for non Toys and Children's Products

Check for Toys and Children's Product Only

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Solid Wood Packaging Requirements

Any Solid Wood Packaging (SWPM) such as pallets, wooden crates, or wooden bracing must meet the treatment and marking requirements of the International Standards for Phytosanitary Measures (ISPM 15). • The packaging must be treated to kill pests, either by heat treatment or by

fumigation with methyl bromide. • The packaging must be properly marked with the International Plant Protection

Convention (IPPC) mark to certify that the wood completed the required treatment- the mark must be visible, legible and permanently affixed to two sides of each SWPM article.

Example of an IPPC Mark:

For more information go to: http://www.cbp.gov/sites/default/files/documents/wpm_faq_3.pdf Orchard Suppliers must ensure that any SWPM used for Orchard shipments is properly treated and marked. Shipments sent without properly marked SWPM risks rejection by U.S. Customs and being denied entry into the United States. Any shipment rejected because of unmarked SWPM will be returned to the vendor at the vendor’s expense. A Solid Wood Packaging Material (SWPM) certificate is required if there is SWPM. • original beneficiaries signed certificate that all wood packing material used in

this shipment has been heat treated or fumigated in accordance with US regulations, and has been marked in accordance with the International Plant Protection convention standard, ISPM NO.15- see below

• If there is no SWPM, commercial invoice as well as transport document must state “THIS SHIPMENT CONTAINS NO SOLID WOOD PACKAGING MATERIAL”. Refer to page 13, item #17.

SWPM made entirely of manufactured wood material (e.g. particle board, plywood, oriented strand board) and wine and whiskey barrels, or SWPM made entirely of thin pieces of wood, (6mm thickness or less) is exempted from the marking requirements.

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Solid Wood Packaging Materials Certification Example For the form go to: http://www.osh.com/SPGlobalSourcing

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Lacey Act Compliance

The Lacy Act Revisions of 2008 makes it illegal to import products containing wood or plant material that is illegally sourced in the country from which the wood or plant material originated. • Orchard’s policy is to be fully in compliance with the Lacy Act and to require

that Suppliers verify that to the best of their knowledge that any product being sold to Orchard containing wood or applicable plant product was legally sourced according to the laws of the United States and laws of the country where the wood or plant material was originally sourced.

• For all wood and plant product that is subject to the Lacy Act requirements, Suppliers must complete, and sign Orchard’s “Lacy Act- Vendor Declaration Form”, and submit to UPS with the commercial invoice and all other documentation.

Product that requires a Lacy Act form include (by Harmonized Tariff Schedule or HTS#): 4403- Wood in the rough 4409- Wood continuously shaped 4412- Plywood, veneered panels 4414- Wooden frames 4417- Tools, tool handles, broom handles 4418- Builders joinery and carpentry of wood 4419- Tableware & Kitchenware of wood 4420- Wood marquetry, statuettes 4421- Other articles of wood 8201- Hand Tools (if include parts or handles of wood) 9401- Wooden Seats 9403- Bent wood furniture

Click on the link below to access the Lacy Act Supplier Declaration form. http://www.osh.com/SPGlobalSourcing

Lacy Act Declaration Form Example

For official guidance on the Lacy Act, refer to: http://www.cbp.gov/trade/entry-summary/public-laws-impacting-trade/public-law-110-246/amended-lacey-act/lacey-act and http://www.aphis.usda.gov/plant_health/lacey_act/downloads/faq.pdf Note: any wooden items containing ‘Rosewood’ will require a CITES permit from shipping country

LacyAct-SupplierDeclarationForm(Requiredforallproductscontainingwood,orapplicableplantproducts.soldOrchardSupplyHardware)

Section1-GeneralInformation TheLacyActmakesitunlawfultotradeinanyplantthatissoldinviolationofanyImporter: lawoftheU.S.oranyforeignlawthatprotectsplants,andrequiresImporterstoOrchardSupplyHardware,LLC properlydeclareallforeignsourcedapplicablewoodandplantmaterials.6450ViaDelOro,CA95119 OrchardSupply'spolicyistobefullyincompliancewiththeLacyActandrequires

foreignvendorstocompleteandprovidethisformforallapplicableproductsManufacturer'sName VendorAddressManufacturerAddress

VendorName(ifnotManufacturer)

Invoice#InvoiceDateP.O.#(s)SECTION2-CompliancewithLaceyActRequirements(16U.S.C.3372(f)) (seenextpageforinstructiononcompletingboxes11-18)

11 12 13 14 15 16 17 18

VendorStyle# HTSUSNumber EnteredValue

DescriptionofArticle/ComponentofArticle Genus Species

CountryofHarvest

QuantityofPlantMaterial

Unit(kg/m/m2/m3)

PercentRecyled

abcdefghij

TheLactActRevisionof2008 Toaddressillegalloggingandotherillegalplanttrade,theLaceyActnowdoesthreemainthings:i prohibitsalltradeinplantandplantproducts(e.g.,furniture,paper,orlumber)thatareillegallysourcedfromaforeigncountryii requiresimporterstodeclarethecountryoforiginofharvestandspeciesnameofallplantscontainedintheirproducts.iii establishespenaltiesforviolationoftheAct,includingforfeitureofgoodsandvessels,finesandjailtime.

http://www.cbp.gov/xp/cgov/trade/trade_programs/entry_summary/laws/food_energy/amended_lacey_act/guidance_lacey_act.xmlOrchardSupplyHardware,LLC,aspartofitsduediligencetoensurecompliancewiththeLacyActrequiresvendorstoprovideaccurateinformationasrequiredbyLACY,andcertify,tothebestofitsknowledge,thattheinformationprovidedtoOrchardiscorrect,andthatthewoodcomesfromlegallysourcedtimber.

Icertifytothebestofmyknowledgeandbelief,thattheinformationfurnishedhereistrueandcorrect,andthattothebestofmyknowledgeallwoodandplantmaterialcontainedinthisshipmentwaslegallyobtainedfromtheoriginalharvestcountry.

Preparer'sPhone# Signature TypedName Date

Orchard Supplier – Import Routing Guide- Page 24 of 33 Revised : 04/26/2018

HazMat Declaration

HazMat Declaration is required for any goods considered Hazardous Materials. Refer to this website for more details: http://containers.seafreightusa.com/ImagesEditor/Dangerous_Goods_Declaration.pdf Example: Lithium Ion batteries- or product containing Lithium Ion batteries such as battery powered lawn mowers. A complete set of the following documents must accompany each shipment, as well as copies to Orchard. • MSDS (Material Safety Data Sheet) • HazMat Certificate • HazMat Declaration papers Shipments with Hazmat product must have Hazmat placards placed on containers to be removed at destination.

Orchard Supplier – Import Routing Guide- Page 25 of 33 Revised : 04/26/2018

Toxic Substance Control Act (TSCA Statement)

A TSCA Statement is required for any products containing chemicals that will be released, including citronella candles, pens, highlighters, and chalk, confirming that the chemicals in the products are all in compliance with the Toxic Substance Control Act.

A helpful website with more information: http://www.lawbc.com/other_pdfs/tsca-faq.pdf Provide on Supplier’s Letterhead

(TYPE ON SUPPLIER’S LETTERHEAD)

TSCA STATEMENT I certify that all chemical substances in this shipment (check one): q Does comply with all applicable rules or orders under the oxic

Substances Control Act (TSCA) and that I am NOT offering a Chemical Substance for entry into the United States in violation TSCA or any applicable rule or order under TSCA.

q Are NOT subject to the Toxic Substances Control ct

Purchase Order #:

List of Chemicals in Shipment:

Please contact the undersigned if further information is required. Signature: Name:

Orchard Supplier – Import Routing Guide- Page 26 of 33 Revised : 04/26/2018

Free Trade Agreement Certificate

A Free Trade Agreement Certificate is required if the product has been sold to Orchard by the Supplier as eligible to be duty free in the U.S. under a Free Trade Agreement. The required Certificate must be accurately and completely completed. Examples of some (not all) Free Trade Certificates are: • GSP eligibility must be noted on invoice “Merchandise wholly the growth,

product or manufacture of a GSP Beneficiary” or if not by separate GSP Form A certificate. Refer to the website http://www.mofa.go.jp/policy/economy/gsp/specimen-1.pdf

• NAFTA Certificate (Mexico and Canada only), NAFTA certificates must be accurately completed and sent to Orchard for approval prior to shipment of cargo. Please contact Orchard Imports via email Imports@osh.com

For all product subject to a duty preference program (e. g, Generalized System of Preferences (GSP), Israel Free Trade Agreement (IFTA), etc.) provide a Statement on the Seller’s letterhead as follows: “The documentation provided to Orchard Supply Hardware supporting the (insert preferential duty program name) claim on this product that it has been thoroughly researched by us to prove that these goods fully comply with all Bureau of Customs and Border Protection Regulations (Title 19 C.F.R.). Upon request by Orchard Supply Hardware, we agree to provide any documentation and/or details needed to support the qualification of our product. Such records may include: supplier affidavits for all materials, receipt records, production records and financial breakdown of product. We agree to maintain such records for five (5) years from the date of export”

Orchard Supplier – Import Routing Guide- Page 27 of 33 Revised : 04/26/2018

Fish and Wildlife CTPAT

U.S. Fish and Wildlife regulates the importation any item that is manufactured from any plant or animal (mammal, fish or reptile), which might be considered an endangered species. Types of Animals and plants(and animal products) Subject to Fish & Wildlife Review- and requiring an import permit and/or CITES permit from origin Common items subject to U.S. Fish & Wildlife Service review: • Buttons of shell or horn • Ornaments crafted with bird feathers or shells • Handbags of alligator/caiman/crocodile, camel, snake, eel. • Fur Coats or Coats with fur trim of beaver, mink, fox. • Christmas decorations with bird feathers • Articles with ‘Rosewood’ including kitchen utensils with rosewood handles • Capiz Shell Star

Types of Animals Not Subject to Fish & Wildlife Review Domesticated animals are not subject to review by the U.S. Fish and Wildlife Service: • Certain mammals listed as domesticated- Alpaca, camel, cat, cattle, dog, European rabbit, ferret, goat, horse, llama, pig, sheep, water buffalo • Certain birds listed as domesticated- chickens, ducks, geese, peafowl, turkey, barnyard mallards. Commercial Invoice Requirements for Fish & Wildlife Products On the commercial invoice for any item made of, or containing parts of, any animal product, the following details must be included on the invoice(or in supplement to the invoice): • Common and scientific name (genus and species) of animal • Animal country of origin • Source of the animal. (i.e. Farm raised, from the wild, etc) • Total # of pieces of animal on garment (i.e. # of buttons) • Total value of the product in U.S. dollars. Vendors must notify Orchard in advance of any items that are subject to Fish and Wildlife requirements and must provide any required origin issued permits.

1) container,andincludeFormoreinformationaboutCTPATpleasegoto:http://https://www.cbp.gov/border-security/ports-entry/cargo-security/ctpat/security-guidelines/foreign-manufacturers#

Orchard Supplier – Import Routing Guide- Page 28 of 33 Revised : 04/26/2018

Handicraft Items and Items with Bark

Handicraft and other items containing wooden twigs, branches, bark, bark chips, pine cones may require special permits and special treatment before coming to the United States. In addition items made from feathers and shells may require Fish and Wildlife permits.

Items made of or containing any of the following

• Bark, bark chips Requires Import Permit, special treatment/labeling1

• Twigs/branches greater than 1 cm Requires Import Permit, special treatment/labeling

• Twigs/branches 1 cm or less Does not require Import Permit • Pine Cones- China Does not require Import Permit • Pine Cones- India Prohibited • Seed pods(cones)- no seeds Does not require Import Permit • Seed pots(cones)- with seeds- treated Does not require Import Permit • Corn- except dried corn husks Prohibited • Vegetation/grasses with other seeds Check with Orchard prior to shipping

Any items containing any of the above materials may still be subject to a USDA examination, and could still be rejected if USDA finds any pests or viable seeds- vendor should have all of the above heat treated or fumigated to ensure there are no pests. Vendors need to provide complete and accurate information on the IOS for any of these items to ensure compliance with regulations.

Bark covered squirrel

Anyquestions-contactOrchardatImports@osh.com

1RequirestreatmentatanauthorizedfacilityinChina-alsorequirecartonstobelabeledwiththefacilities‘ZMC’code-requiresacertificateofheattreatmentorfumigationbesentwithproducthttp://dzwjyjgs.aqsiq.gov.cn/fwdh_n/qymd/zwjcp/gwqymd/201308/t20130802_370467.htm

Orchard Supplier – Import Routing Guide- Page 29 of 33 Revised : 04/26/2018

Other Forms

• Wearing Apparel (Clothes): Wearing Apparel Detail Sheet Reference

http://www.vipcus.com/wp-content/uploads/2015/05/WEARING-APPAREL-DETAIL-SHEET.pdf

• Footwear (Shoes): Interim Footwear Invoice Reference http://images.fedex.com/downloads/shared/shipdocuments/blankforms/footwear_form.pdf

Recap Supplier Document Requirements

• The Supplier is responsible for providing all document required by US Customs Regulations and any other U.S. government agency such as FDA or USDA etc. to Orchard’s designated Freight Forwarder.

• Verified Gross Mass (VGM) form must be submitted to UPS prior to the carrier specific cutoff(refer to SOLAS compliance

• For FCL (full container load) cargo, Documents and 2 digital photos of laden container must be provided (preferably via email attachment) to Orchard’s Forwarder within 3 days of vessel departure.

• For Less-than-container-load cargo, Document must be provided to Orchard’s forwarder same day when cargo delivered to CFS warehouse.

Orchard Supplier – Import Routing Guide- Page 30 of 33 Revised : 04/26/2018

Orchard Supplier – Import Routing Guide – Container Load Requirements (Consolidation and Non Consolidation)

Container Load Requirements

Container Photos

Orchard Supplier – Import Routing Guide – Container Load Requirements (Consolidation and Non Consolidation) POs must not be mixed within the container. • All Purchase Orders should be loaded in its entirety before loading another PO

(e.g., PO#1570-60-1234-00 should be loaded completely at the back of the container before PO#1570-60-1269-00 is loaded). Illustration to be added

1. Exception: Heavy cargo approaching maximum container cargo allowable weight must be evenly distributed to prevent weight imbalance. Any expenses due to violation of this rule will be charged back to vendor

• A container load plan must be submitted to UPS • A completed packing list must be attached to the inside door of the container. • Container must be sealed at factory using a high security ISO/PAS 17712

compliant or equivalent high security seal- this is a CTPAT requirement. • Orchard recommends that all supplier’s use Orchard’s Container Inspection

Checklist and submit with photo’s and load plant to UPS.- See CTPAT Page 32.

• 2 photographs must be taken on each CFS-CY loaded container. Instructions as

follows: 1. Picture of loading results after all cartons are loaded but prior to

container door being closed and container being sealed. 2. Picture of the container with the right door closed but left door open.

Picture needs to show the container number visible on the closed right door and cargo load from the left open door.

• Container load photo examples:

Exception: When factory does Less-than-container-load (consolidation CFS delivery. Forwarder will take photos in consolidation warehouse.

• A secure cargo net should be used to secure any loose cartons

Example: Photo 1 Example: Photo 2

Example: secure cargo net

Orchard Supplier – Import Routing Guide- Page 31 of 33 Revised : 04/26/2018

Container Cube & Container Size

Cube and container size instructions will be noted on each individual PO. • If there is any issue with cube or container size, contact Orchard’s Import

Department (Imports@osh.com) to resolve any issues prior to loading container. • Use the below guide to CBM requirements.

Container Instructions 20 foot

container • For 20’ usage (other than pre-approved exempt heavy or breakable cargo),

UPS will request vendors to send the cargo to UPS CFS. • If there are other cargos available to consolidate into 40’, 40’HC or 45’. Refer

to Consolidation Requirements on the next page. • Cargo from non-consolidation origins can be shipped via 20’ container. Note: 20’ containers only with prior approval from Orchard.Import Logistics

40 foot standard container

• For 40’ usage, (other than pre-approved exempt heavy or breakable cargo), if the total CBM is 45 CBM or Less, UPS will request the Suppliers to send the cargo to UPS CFS. For cargo between 45 and 55 cbm, it will be determined on case by case basis

• If there are any other cargos available to consolidate into 40’HC or 45’. Refer to Consolidation Requirements on the next page.

• This does not apply to non-consolidation origins.

Less Than 40’ Load

Containers Consolidation

Ports

Consolidation Requirements • UPS consolidates for Orchard containers in the following ports (only):

o Shanghai o Ningbo o Yantian o Xiamen

• For shipments shipping from a consolidation port, consisting of POs of less than 45 CBM, Orchard requires that Suppliers deliver loose cargo to UPS for consolidation of cargo into 40’ or larger size containers.

• If the PO indicates FCA freight terms, then Supplier is responsible for delivering goods to UPS CFS destination.

o In all cases, Suppliers will be responsible for delivering goods to appointed port or consolidation point.

For Supplier Consolidation CFS Charges use this link.http://www.osh.com/medias/sys_master/h70/hac/8812571918366/orchard-supplier-cfs-charges.pdf

Non Consolidation

(All Other Ports)

Non Consolidation Requirements • Coordinate with the local UPS representative to determine whether cargo

should be sent as loose (CFS) cargo, consolidated with other UPS cargo, or in a 20’ container.

• UPS will request approval from Orchard Import Department before finalizing any bookings.

Container Size

Minimum CBM

Requirement 20' Standard 26 CBM

Orchard Supplier – Import Routing Guide- Page 32 of 33 Revised : 04/26/2018

CTPAT

Orchard Supplier – Import Routing Guide – CTPAT Orchard is a committed member of the Customs-Trade Partnership Against Terrorism (CTPAT) and Orchard vendors are important partners in our supply chain security program. Suppliers are required to annually to either complete CTPAT surveys or provide Third Party CTPAT inspection reports for each manufacturer supplying Orchard. As part of the program suppliers are:

1) Required to use high security seals to seal containers and 2) Requested to use the Orchard CTPAT Container Inspection Form to inspect

all Orchard containers- and provide that completed form to UPS with all Orchard documentation

For more information on CTPAT please email: Imports@osh.com or Go to: https://www.cbp.gov/border-security/ports-entry/cargo-security/ctpat/security-guidelines/foreign-manufacturers#

Orchard Supplier – Import Routing Guide- Page 33 of 33 Revised : 04/26/2018

Orchard Supplier – Import Routing Guide – Air Freight & Sample Shipments Requirements

Air Freight Orchard’s policy is to ship all products by ocean unless specifically authorized.

• Any airfreight shipment must be approved in advance by Orchard’s import department, and must be booked and shipped with UPS.

• All air freight charges will be the responsibility of the Supplier, unless specifically authorized by Orchard’s Director of Logistics.

Sample Shipments

Supplier is responsible for all costs of sending commercial samples to Orchard. Samples must be sent with an invoice declaring full descriptions of the item and a correct value for U.S. Customs purposes, which is a fair market value, or the cost the Supplier would sell the item to Orchard. Samples are not required to have purchase order numbers on the packages if no p.o. has been issued.