Prince Supplier Standards Manual
The objective of the Prince Supplier Standards Manual is to communicate the requirements of the Suppliers to Prince International Corporation and its worldwide subsidiaries (collectively, “Prince”). Prince expects its Suppliers to adhere to all requirements and recommendations documented in this manual.
Prince expects this manual to provide the groundwork for a working relationship with our Suppliers. We will strive for excellence through continuous improvement in the products and services we receive through collaborative relationships with our Suppliers.
Prince’s mission is to provide exceptional value to our customers by developing, managing, and leveraging effective logistics and supply partners that provide high quality parts and services, on time, at the lowest total cost. This Supplier Standards Manual provides requirements and expectations that help us achieve our mission.
This policy applies globally to all Prince International Corporation locations worldwide.
The Prince Supplier Standards Manual was developed to present a minimum set of requirements to current and potential Suppliers.
The manual is divided into six specific areas:
- General Expectations
- Standard Terms & Conditions
- Quality Expectations
- Social and Environmental Responsibility
- Delivery Standards, Including Materials and Supply Chain Management
- Supplier Business Review
1. GENERAL EXPECTATIONS
1.1 Management Standards
Prince expects its Suppliers to operate ethically and abide by all laws and regulations, while also demonstrating their commitment to quality and the environment. The key to exhibiting their commitment is for our Suppliers to implement the appropriate quality and environmental management standards.
The goal of our Suppliers should be to be compliant with the minimum expectations stated in the following table:
|Quality System Registration||Environmental Management Registration||Occupational Health & Safety Management Registration|
|All Suppliers||ISO 9001||ISO 14001||ISO 45001|
1.2 Supplier Development
Through close working relationships with our Suppliers, strategic plans will be created, if necessary, to ensure compliance to the requirements established in this manual and pursue continuous improvement.
1.3 Right of Access
As a Supplier to Prince, the organization shall ensure the following:
- Any participant in the subcontracting chain makes the necessary provisions in the purchase order so that the customer contract requirements are taken into account, to the extent of the purchase made, by their own
- The Suppliers take the necessary steps to check that contractual requirements are met by their own
- Customers reserve the right to check the compliance of the products and of the quality management system with contractual requirements at any Supplier’s site belonging to the subcontracting
1.4 Non-Disclosure Agreements
Prince will request a signed Non-Disclosure Agreement before allowing Suppliers to quote certain materials or services. This agreement protects both parties and develops the foundation for a collaborative and strategic partnership.
2. STANDARD TERMS AND CONDITIONS
2.1 Access to Standard Terms and Conditions
Standard Terms and Conditions of Purchase may be reviewed by accessing: https://www.princeorp.com/t-and-c-purchase
3. QUALITY EXPECTATIONS
The purpose of this section is to communicate our Quality Expectations to our Suppliers. Prince expects to receive defect-free, competitively priced products and services delivered on time to our manufacturing, service, and distribution centers. This Zero-Defects approach, in conjunction with a collaborative relationship with Suppliers, will enable Prince to exceed its customers’ expectations while continuously improving our operations.
3.2 Process Controls
Processes shall be documented and controlled by procedures, work instructions, drawings, checklists, travelers, or other appropriate means performed by qualified personnel.
Process measurements shall be established and documented to assure that special processes are accomplished by qualified personnel using qualified procedures.
Qualification for personnel, process, and equipment of each special process shall be performed. Training qualification procedures and records shall be prepared and maintained.
A plan for inspection of activities affecting product and service quality shall be documented, established and implemented by qualified personnel or groups, responsible for verifying that the items or activities compile with the requirements of procedures, instructions, and drawings.
The inspection and test status of work during production and installation shall be maintained to ensure that only work which has passed the required inspections and tests is accepted.
3.4 Test Control
Tests necessary to demonstrate that products and services will perform satisfactorily shall be selected and implemented with documented procedures and control plans, as required by the contract.
Test procedures and control plans shall include test requirements, acceptance criteria, and provisions for assuring that prerequisites for the given tests have been met; also, that adequate instruments are selected and utilized, and that suitable environmental conditions are maintained.
Test results shall be documented and evaluated by a responsible authority to assure that the test has been performed satisfactorily and that acceptance criteria have been observed.
Training records for inspector qualification and qualification procedures shall be documented and maintained.
The purpose is to ensure control and calibration of Inspection, Measuring and Test (IM&T), equipment, software, standards, auxiliary inspection apparatus, process indicators and environmental monitoring equipment.
All IM&T equipment, software, standards and auxiliary apparatus used to accept/reject product should be calibrated and properly identified for traceability.
All IM&T equipment, software, and auxiliary apparatus shall be identified with a suitable indicator to show calibration status and adjusted, as required, at prescribed intervals against a NIST traceable and certified standard.
3.6 Control of Documented Information
Documented information required by the quality management system shall be controlled to ensure it is available and suitable for use and adequately protected from loss of integrity.
Control of documented information shall include a process for distribution, access, storage, preservation, control of change, retention, and distribution of documented information.
3.7 Handling, Storage, Preservation, and Shipment
A controlled process for handling, storage, cleaning, packaging, preservation, and shipping of products shall be established and documented to prevent damage or loss and to minimize deterioration.
3.8 Records Management and Traceability
The purpose is to define the procedure for identification, collection, access indexing, filing, storage, maintenance, and disposition of Quality, Environmental, Health and Safety Records.
Documented information retained as evidence of conformity (records) shall be protected from unintended alterations.
Responsibility and requirement for document transmittal, retention, and maintenance after completion of work shall be documented in accordance with contract requirements.
The organization shall use suitable means to identify outputs when it is necessary to ensure the conformity of products and services. Unique identification of the outputs (traceability) shall be retained as documented information (records).
3.9 Statistical Tools
The purpose is to define the process for identifying what statistical tools will be used to accept and monitor products and materials to achieve quality of products supplied to Prince.
The organization shall determine the methods for monitoring, measurement, analysis and evaluation needed to ensure valid results.
3.10 Control of Non-Conforming Output
The organization shall ensure that outputs that do not conform to the specified requirements are identified and controlled to prevent their unintended use or delivery. The organization shall take appropriate action based on the nature of the nonconformity. This measure shall provide for identification, documentation, evaluation, segregation, disposition of non-conforming outputs, and notification to impacted organizations.
The goal of containment is to protect Prince from defective material escapes and non- conforming outputs.
Containment is accomplished through deployment of additional controls in the Supplier’s manufacturing process to identify a known or potential non-conforming output and to prevent it from being shipped to Prince.
When segregation of non-conforming items is impractical, a measure to prevent use of the non-conforming output shall be prescribed (such as using appropriate identification methods such as marking and tagging).
3.12 Notification of Non-Conforming Material from Prince
The respective Supplier concerned is given notification of the non-conformance. The notification can be in the form of an authorization, Returned Material Requisition (RMR) distribution, database review etc.
Corrective Action Requests (CARs) are issued for major quality issues by the Prince QA/QC department.
The purpose of the Supplier Corrective Action Request (SCAR) is to document Suppliers’ non-compliances with Prince standards and policies or contract requirements.
A measure shall be established and implemented to identify and correct any condition adverse to quality, such as failures, malfunctions, deficiencies, defective materials and equipment.
3.14 Response to CARs/SCARs
The Supplier is required to respond to the request by providing action plans to correct the non-compliances so they will continue to perform to meet or exceed Prince’s goals and objectives.
Responses to CARs/SCARs are required within 10 business days of receiving the report. The response should include a reason for the incident, cause of the incident, as well as steps that have been taken or will be taken to prevent such event from reoccurring.
Failure to respond could result in a delay of payment for goods/services, and/or removal from the Prince Approved Vendor List.
3.15 Risk Management
Suppliers are expected to provide contingency plans for interruption events, such as, but not limited to:
- Interruptions to the flow of purchased products (bankruptcy, catastrophe, delivery interruptions, labor strife)
- Interruptions to the production process (machine breakdown, plant damage, labor strife).
4. SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
4.1 Human Rights and Labor
Suppliers shall ensure that human and labor rights are recognized and upheld. To do so, Suppliers shall abide, at a minimum, to the following guidelines:
- Not employing any worker in breach of the minimum age for work as determined by applicable local laws and
- Not using or receiving goods produced from prohibited child labor, which includes: (i) the sale and trafficking of children; (ii) debt bondage and serfdom; (iii) forced or compulsory labor; (iv) use, procuring or offering of children for prostitution or pornographic performances; (v) use, procuring, or offering of a child for illicit activities including use in armed conflict or drug trafficking; and (vi) work which is likely to harm the health, safety, or morals of children;
- Not providing or obtaining labor or services of a person by any of the following means:
- by means of force, threats of force, physical restraint, or threats of physical restraint to that person or another person; (ii) by means of serious harm or threats of serious harm to that person or another person; (iii) by means of the abuse or threatened abuse of law or legal process; and (iv) by means of any scheme, plan, or pattern intended to cause the person to believe that, if that person did not perform such labor or services, that person or another person would suffer serious harm or physical restraint;
- Ensuring that no materials incorporated into Supplier’s products is made by means of slavery, human trafficking, fixed, bonded, indentured, prison or illegal child labor, contain any “conflict minerals” as defined by Dodd-Frank and related regulations or contain any animal wildlife, plant product or by product prohibited under local or applicable import/export laws or
4.2 Occupational Health and Safety
Suppliers should ensure that occupational health and safety standards are recognized and upheld. To do so they should abide by the following guidelines:
- Apply appropriate safety measures for equipment and instruments used in their
- Evaluate their own safety risks and ensure safety in the workplace with appropriate design, technique, and control
- Evaluate the workplace, related to biological and chemical harms, noise, and odor, which are harmful to health, and provide appropriate measures to mitigate
- Evaluate occupational injuries and illnesses in the workplace and provide appropriate measures to mitigate such
- Prepare the emergency response measures for possible disasters and accidents in order to protect human lives and publicize the
- Define the physically demanding activities, and control appropriately to prevent injury and
- Keep all company facilities safe and
- Provide appropriate health maintenance programs for
Adverse effects on the community, environment, and natural resources are to be minimized while safeguarding the health and safety of the public. In addition, Suppliers should adhere to the following guidelines:
- Control chemical substances contained in products and used in manufacturing, as defined by laws and
- Establish and implement an environmental management
- Ensure compliance with local laws and regulations of drainage, sludge, and air emissions, and improve such environmental pollution by voluntary criteria as
- Obtain necessary environmental permits defined by local laws and regulations and submit necessary reports to the
- Define a voluntary goal of natural resources and energy saving and implement continuous activities for efficient
- Define a voluntary goal of green-house gas reduction and implement continuous activities for further
- Establish a plan to reduce waste and implement continuous activities for further
- Disclose outcomes of environmental activities
4.4 Fair Trading
Suppliers should engage in fair trading. In doing so, they should adhere to the following guidelines:
- Maintain a sound and normal relationship with political and government administration without committing bribery and/or making illegal donations or
- Not create disadvantage for their Suppliers by abuse of a superior
- Not offer and/or receive inappropriate benefits to/from
- Not impede fair, transparent, and free
- Provide accurate information on products and services to consumers and
- Not infringe upon intellectual property
- Execute proper export procedures, regarding exports of technologies and goods, as defined by laws and
- Disclose company information for stakeholders, regardless of legal
- Perform activities to prevent improper acts and streamline the system to discover and respond to improper acts at an early
4.5 Product Quality and Safety
Suppliers should ensure that product quality and safety is recognized and upheld. To do so, they should adhere to the following guidelines:
- Suppliers should satisfy safety standards for their products, as defined by laws and regulations by each country, when they develop/design such
- Suppliers should establish and implement a quality management
4.6 Information Security
Suppliers should take care to ensure that information security is recognized and upheld. To do so, they should adhere by the following guidelines:
- Take protection against threats on their computer network and prevent damage to their company and
- Appropriately control and protect personal and confidential information of employees, customers, and third
4.7 Contribution to Society
Suppliers are expected to practice proactive voluntary activities to contribute to the development and improvement of global society and the local community.
Suppliers should recognize, believe in, and practice the principles of a sustainable business woven into the fabric of how they will conduct themselves. Elements which Suppliers should consider include:
- Supporting the Global Reporting Initiative (GRI – http://www.globalreporting.org/)
- Promoting diversity in the Supplier This includes recognizing the benefits of purchasing goods and services from a variety of recognized groups, including, but not limited to, small businesses, veteran-owned businesses, disadvantaged businesses, and women-owned businesses.
- Taking voluntary initiatives to reduce detrimental environmental These include efforts to improve energy efficiency, control greenhouse gas emissions, recycle materials, curtail or phase out use of toxic substances, minimize waste, and conduct life-cycle assessments of products.
- Supporting safe, healthful workplaces and communities, hiring and promoting employees without discrimination, paying competitive wages and benefits, and being responsible citizens in communities where the parties
4.9 Supply Chain Compliance
Suppliers should ensure that they are sourcing responsibly and abide by all applicable laws and regulations. In doing so, they should adhere to the following guidelines:
4.9.1 IRMA Standard for Responsible Mining
Comply with the guidelines listed in the Initiative for Responsible Mining Assurance (IRMA). The latest version can be found at: https://responsiblemining.net/resources/
4.9.2 Conflict Minerals
- Comply with Section 1502 (“Conflict Minerals Provision”) of the “Dodd-Frank Wall Street Reform and Consumer Protections Act”
- The Conflict Minerals Law requires all publicly traded companies to report annually to the SEC whether they use Conflict Minerals including gold, wolframite, casserite, columbite-tantalite and their derivative metals, which include tin, tungsten, tantalum and any other compounds designated by the S. Secretary of State.
- If requested by Prince, Suppliers shall confirm their compliance with the Conflict Minerals Law by providing the necessary declarations to us in an accepted industry-standard Conflict Minerals Reporting template (e.g., the Electronic Industry Citizenship Coalition (EICC) / Global e-Sustainability Initiative (GeSI) / Conflict Minerals Reporting Template (CMRT) / Cobalt Reporting Template (CRT).)
- If applicable, Suppliers should also disclose any measures to eliminate these “conflict minerals” from their supply
4.9.3 Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)
- Comply with European Union Directive on the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH).
- REACH (EC 1907/2006) aims to improve the protection of human health and the environment through the better and earlier identification of the intrinsic properties of chemical This is done by the four processes of REACH, namely the registration, evaluation, authorization and restriction of chemicals. REACH also aims to enhance innovation and competitiveness of the EU chemicals industry.
This section describes the delivery standards that Suppliers are expected to meet. Non- compliance with these instructions and/or use of other non-approved carriers may result in a payment delay. If applicable, Prince may then choose to deduct the difference between negotiated rates and actual billed price.
The Prince procurement and supply chain organizations contribute to manufacturing excellence in quality, cost, and delivery to the customer. In particular, the supply chain function provides value to our customers by providing high quality parts and services, on time, at the lowest total cost.
Continued improvement in our global supply chain systems is and will continue to be a competitive advantage for Prince. To truly leverage the potential of these innovative systems and processes, the knowledge and capabilities of our extended enterprise must be flexible and capable of meeting our replenishment requirements.
Total Supply Chain Management is achieved through the execution of comprehensive, yet common business processes and systems such as:
- ERP Systems
- Communicating electronically between Suppliers and customers
- Implementing Lean Manufacturing practices
- Understanding and reacting to schedule forecast variation
- Comparing demand to capacity
- Proactive communication through the supply chain when there are potential issues in meeting demand requirements, especially when a delivery date will not be met
- Shipping according to the transportation logistics instructions
- Responding to Prince specified replenishment method(s) and establishing replenishment processes to assure on-time delivery from the extended supply chain
- Responding to “issue communication” tools (cancellations, return authorizations, corrective actions, ) in a timely manner
- Identification and measurement of key metrics
Suppliers/Shippers should comply with shipping instructions.
Purchasing will furnish the Material/Purchasing Specification / Purchasing Specification for Inbound Freight to Suppliers as needed
Prince Supply Chain Management is responsible for maintaining and communicating the Approved Core Carrier/Logistics Approved Company Listing, which should be utilized for all shipments.
The Accounting department, in consultation with Procurement and Supply Chain, may deduct the difference between preferred negotiated rates and actual billed price, if applicable.
5.4 General Specifications
No prepaid and add will be accepted unless pre-negotiated, approved and documented by the applicable Prince buyer (the “Buyer.”). If the Buyer negotiated freight terms are “Pre-paid & allow,” the Supplier may use a carrier of their choice. We recognize that Suppliers may not always be able to comply with these guidelines for every single shipment for various legitimate reasons. Prince Supply Chain Management will provide guidance, and if necessary, provide an authorization to use a non-approved carrier.
Purchase order numbers must appear on all packages, packing lists, Bills of Lading, invoices and correspondences. This is especially critical on sub-supplier, third party shipments. Any expedited shipments must have the Buyer’s approval.
A copy of the bill of lading must accompany all invoices. The packing list is to be attached to each box.
All boxes weighing greater than 40 pounds must be palletized.
5.5 Supply Agreements
Prince values the utilization of strategic relationships with our Suppliers. Depending on the commodity or Supplier, Prince may choose to enter into a long-term supply agreement.
5.6 Shipping and Replenishment Performance
Prince expects our Suppliers to deliver ordered parts and services on-time. This means shipping the correct quantity, of the correct product, to the correct location, according to the designated replenishment method, and contacting Prince if the release schedule cannot be met.
Suppliers shall have a process in place to ensure that any potential problems that could impact Prince’s operations are communicated as soon as they are identified. Differences shall be resolved with appropriate customer contact prior to shipment time.
5.7 Forecast Expectations
Suppliers are expected to review forecasts to determine whether any capacity or material constraints are violated. Any violations that cannot be resolved must be communicated to Prince in a proactive and timely manner.
Authorization to ship specific product will be communicated to the Supplier through Prince plant designated replenishment method. In order to standardize supply chains, optimize inventory levels, and minimize freight expense, Prince uses a variety of tools.
5.9 Packaging Requirements
Supplier is responsible for ensuring that all materials are packaged to arrive safely, securely, and without damage to the Prince facility. Prince is committed to sustainable practices including efforts to reduce packaging, use returnable packaging, and maximize recycling of packaging materials in order to minimize packaging waste, and expects Suppliers to share in these commitments. Packaging must be compliant with all applicable legal requirements and guidelines. Additional specific packaging requirements are listed below:
- Wood used in packaging should be correctly treated according to the ISPM 15
- Corrugated Containers should be of sufficient strength to prevent damage to the contents based on the method of
- All pallets shall have its load banded with plastic or metal Stretch wrapping should be used to prevent shifting of the load during transit. Corner boards should be used as necessary or required to provide additional protection and load stabilization.
- Utilize reusable packaging whenever
5.10 Mixed Loads – Pallets
Mixed loads should only be used when shipping quantities prevent full pallet loads for a single part number.
A “Mixed Load” label must be applied to each skid containing a mixed load.
Similar part numbers should be grouped together to allow for ease of part number identification.
Heavier containers must not be placed on top of lighter weight containers. The weight of the load must be balanced on the pallet, while keeping similar parts together.
The carton quantity for each part, part number, and part quantity shall be listed on two sides of the pallet.
5.11 Logistics Requirements
Unless otherwise agreed to, Prince will determine carrier selections and routing instructions in order to effectively manage inbound freight through the careful consideration of these factors:
- Supplier location
- Product volume
- Transportation costs
Prince expects our Suppliers to share in the ownership of the shipping process to ensure products are received in a timely and cost-effective manner – essentially, at the right time, in the right container, at the right shipping price, to the right location. Below you will find the Supplier responsibilities necessary in order to fulfill our transportation requirement.
5.11.1 Logistics Requirements Communication
All shipments must be accompanied by appropriate documentation. Documentation may include but not limited to, packing slip, bill of lading, USMCA or any other international certificates, commercial invoices, and hazardous materials information.
Suppliers are responsible for contacting the appropriate carrier, freight forwarder and Prince Buyer to ensure timely pick-up and delivery. Suppliers are responsible to set shipping window times in conjunction with Prince supply chain personnel and the carrier to ensure delivery at the Prince facility by the delivery date shown on the release. Suppliers may be requested to arrange freight on Prince designated carriers. For truckload volume orders, Prince Logistics will contact Prince designated carries.
5.11.2 Packing Slip Requirement
Prince requires all Suppliers to prepare their packing slip(s) in a standard format. Items required in a specific location include:
- Packing Slip #
- Sold to Information
- Supplier Production Plant
- Ship To
- BOL #
- Customer Part #
- Supplier Part #
- Quantity Shipped
- Footer which includes page number and repeats the Packing Slip #
5.11.3 Bill of Lading Requirements
The following information instructs a Prince Supplier on how to properly complete a bill of lading (BOL) form for shipments that are sent collect to Prince. Non- compliance to these requirements that results in excess freight charges to Prince will be debited back to the Supplier.
A separate bill of lading must be created for each ship-to location, even when shipping on the same carrier. Each BOL must contain a unique BOL #.
Consignee and Destination: the consignee shall be shown as the Prince entity indicated on the PO (e.g., Prince Minerals LLC; Prince Energy LLC; Prince Specialty Products LLC, etc.) The plant name and receiving dock number shall also be indicated.
- Number of Packages and/or Handling Units – If packages are consolidated on a skid, provide both package count and skid count on the bill of
- Description of Shipment – Enter the description of each line Please note the type of package (carton, tote, carrel, etc.) and the quantity per package. This information is critical to ensure correct rating to avoid excessive charges. For all shipments under 15,000 lbs. please include the NMFC item number and classification on all Bill of Ladings.
- Weight – Enter the total gross weight, in pounds, for each line Include the weights of pallets, skids or any secondary containers.
- Freight Terms – Indicate applicable freight terms as mutually agreed
5.11.4 Premium Freight/Expedites
Any premium freight which results from a Supplier event (e.g., late shipment) will be managed and paid for by the Supplier. Prince will not take responsibility for the set-up, management, tracking, or payment of a Supplier-caused premium freight event. The Supplier will communicate the appropriate expedite information and provide updates to keep Prince informed on the arrival of the expedited components. Prince reserves the right to take over the management of the premium freight event if the Supplier fails to communicate and effectively manage the event themselves, and the Supplier may be charged for Prince’s time.
When expediting freight at Prince’s expense, authorization must be obtained from the appropriate Prince personnel. Unauthorized expedited freight may result in debit to the Supplier to compensate for excess freight charges, or administrative fees.
5.11.5 Mixed Part Containers – Small Package Shipments
- Mixed part containers shall be minimized
- A single part should not be mixed into multiple mixed Overflow of a single part should be limited to one mixed container.
- Mixed part containers must have a “Mixed Part” label applied
5.11.6 Multiple Container Shipments – Small Package Shipments
- Multiple container small parcel shipments shall be marked box X of N on each box.
- Each Box shall be clearly labeled with Prince purchase order number and quantity.
5.11.7 Shipments Over 150 up to 15,000 lbs. and less than 28 Linear feet of Trailer
Ship by an approved Prince International Corp. Less Than Truckload (LTL) or 3PL carrier.
5.11.8 Shipments Over 15,000 or more than 28 Linear feet of Trailer
Routing instruction will normally be provided by the Buyer for any weight/size shipments that require specialized services such as air ride trailers, flatbed equipment, etc. If there are any questions, please contact the appropriate Buyer or Prince Traffic Department for routing instructions.
5.12 International Shipping
The purpose of this section is to provide Prince Suppliers with a better understanding of their responsibilities as exporters. Our goal is to ensure that Suppliers are aligned with the procedures of Prince and we adhere to Customs Regulations together.
This section contains information regarding:
- Shipment requirements for exports to Prince
- Warehouse and inventory requirements for international shipments
- Documentation requirements
Suppliers are responsible for complying with all customs, laws, and regulations as it relates to their activity with Prince. This includes, but is not limited to, the items outlined in this manual.
5.12.1 Incoterms 2020
Risk of Loss passes to buyer based on mutually agreed to Incoterms. Regardless of Incoterms 2020, title passes to the Buyer only upon acceptance by the Buyer at the Buyer’s facility where the supplies are to be used.
5.12.2 Importer Security Filing (ISF)
On November 25, 2008, US Customs (CBP) published in the Federal Register an Interim Final Ruling for the Importer Security Filing (ISF), commonly known as the 10 + 2 Initiative. The new regulation, which is the result of the requirements in the SAFE Port Act, applies to ocean vessel shipments only (with the exemption of bulk cargo), and requires importers of their designated agents to submit 10 new elements of data at least 24 hours prior to the departure of the vessel destined for the United States. In addition, ocean carriers must also provide two new data elements about the status of containers under their control.
As the importer of record, Prince is bound to provide a complete, accurate and timely filing or risk liquidated damages in the amount of $5,000 per violation, in addition to penalties applicable under other provisions of law.
The data elements are:
- Importer of record (EIN)
- Consignee number (EIN)
- Seller name and address
- Buyer name and address
- Ship to party
- Manufacturer (or Supplier) name and address
- Country of origin
- Commodity code(s) – 6-digits
- Container stuffing location
- Consolidator name and address
The bill of lading number (master or house bill of lading) is not one of the required data elements, but is necessary to properly link the ISF to the customs manifest data. Under existing 24 Hour Rule requirements, the bill of lading number is required for containerized cargo 24 hours prior to lading. For break bulk cargo, the carrier must submit the bill of lading number 24 hours prior to arrival.
As part of our standard purchase order terms and conditions, we require our foreign vendors to submit the completed form and provide a pro-forma or commercial invoice 72 hours prior to the departure of the vessel.
5.12.3 Custom Brokers
Prince has designated Customs Brokers to clear shipments on our behalf. Suppliers must use the designated broker as per the routing instructions set forth by Prince on FCA terms. Under DDP terms, Suppliers are responsible for customs clearance.
5.12.4 International Shipment Documentation
Suppliers are responsible for providing complete and accurate documentation for all international shipments. Documents must be sent with each cross border shipment and also faxed to the broker that will be clearing the product through customs. Documents include, but are not limited to, the Bill of Lading (Express Bill of Ladings preferred), Packing List, Commercial or Pro-Forma Invoice, a Certificate of Origin (USMCA) or any other free trade agreement certificates, where applicable. Incomplete or inaccurate documents may delay the timely delivery of product to Prince’s facility; therefore, failure to supply complete and accurate documentation could result in a SCAR and a debit for the cost incurred in a delayed shipment.
5.12.5 Valuation of Merchandise
Suppliers are responsible for stating the proper value of the product being shipped per terms and conditions of your contract with Prince. Failure to do so may result in a SCAR.
5.12.6 Harmonized Tariff Schedules USAGE (HTSUS)
All Suppliers are required to show the proper tariff classification on the commercial or pro-forma invoice.
22.214.171.124 Commercial or Pro-Forma Invoice. A commercial or pro-forma invoice shall accompany each export to a Prince facility. Contents of invoices and general requirements:
- A detailed description of the If shipment involves equipment, the invoice must also include the serial # and make and model #.
- Quantities, weights and unit of measures of the merchandise (e.g., liters, gallons, kilograms, lbs.)
- The purchase price in the currency of buyer
- All charges upon the merchandise itemized by name/category and
- All rebates, drawbacks, bounties, separately itemized, agent fees/commissions, allowed upon the exportation of the
- Country of origin
- Assists, dies, molds, tools, engineering work and cost associated
- Tariff classification
- Incoterms See section on Incoterms 2020.
- Invoice #
Invoices and all attachments must be in the language appropriate in the country of importation. When the above contents are excluded from the invoice, the customs clearance of the shipment is delayed. Often times, a shipment is flagged for examination by customs due to the absence of values, description, and country of origin.
5.12.7 Country of Origin Marking
Every article of foreign origin (or its container) shall be marked in accordance with the regulations of the importing country.
5.12.8 International Shipment Checklist
- Completed Bill of Lading with the name and address of the shipper, the consignee, and the This must be the same BOL # as on the ASN
- Completed Packing List
- Completed Commercial or Pro-Forma Invoice per guidelines listed above
- Completed Certificate of Origin or other applicable free trade agreement certificate
- Certificate of Analysis
6. SUPPLIER BUSINESS REVIEW (SBR)
The purpose is to review and evaluate a Supplier’s performance by conducting a periodic business review. Frequency is dependent upon the mutual agreement between the respective Supplier and Prince.
6.2 Performance Areas Monitored
The areas of performance that are monitored are:
Supply Assurance (On-Time Performance)
While each of the above categories has some specific nuances identified by each division and region, broad definitions for the entire organization are as follows:
6.3.1 Quality Section
The Quality section of the SBR collects data regarding the quality of material used to produce goods (direct materials), year over year quality improvement, performance regarding warranty claims, and corrective action responsiveness.
6.3.2 Supply Assurance Section
The Supply Assurance section focuses on accuracy and timeliness of material delivery and order completeness.
6.3.3 Pricing Section
The Pricing section measures pricing on an annual basis compared to previous pricing as well as competitive market pricing. It also includes Suppliers’ initiatives to offer cost down alternatives.
6.3.4 Customer Service Section
The Customer Service Section measures the Supplier’s overall customer service. This includes their responsiveness to inquiries, flexibility to schedule changes, initiative to implement supply chain strategies on their own, as well as the extent to which Suppliers communicate proactively. This section also allows the receiving department to have an influence in how the Supplier is packaging and labeling the material. The last measure in this section is Supply Chain Support, which tracks the Supplier’s lead time, stocking program, and how much involvement Prince has in the process.
Last updated: May 10, 2021