Docstoc

Supplier Purchasing Manual

Document Sample
Supplier Purchasing Manual Powered By Docstoc
					         AFCO
 Associated Fuel Pump Systems Corporation
      Anderson, South Carolina / USA




    SUPPLIER
PURCHASING MANUAL
                                   PREFACE


AFCO`s relationship with its suppliers is one of the most important aspects of its
operations. This relationship must be mutually beneficial for the continued
success and profitability of each party.

An understanding of the responsibilities of both parties relative to quality
conformance is necessary. This manual describes the quality involvement that
AFCO expects of its suppliers and also describes the general procedures used in
assuring quality of purchased materials and components.

AFCO will continue to seek better methods to assure quality in every process.
This manual is provided to avoid misunderstandings between AFCO and its
suppliers and to aid suppliers in meeting the various terms and conditions of our
purchasing documents, engineering specifications, engineering drawings and
related requirements. It does not alter or replace them.
Preface
Purpose
Scope
Purchasing Philosophy
Purchasing Guidelines

Section 1: Supplier Selection
     1.1   Evaluation and Development of Subcontractors
     1.2   Supplier Survey
     1.3   Supplier Audits
     1.4   Financial Status
     1.5   Component Samples
     1.6   Purchase Order Terms and Conditions

Section 2: Awarding New Business
     2.1   Acceptance of Terms and Conditions
     2.2   Supplier Contact Information
     2.3   Approved Supplier Status
     2.4   Production Part Approval Process (PPAP)
     2.5   Authorization Release
     2.6   Customer Account Establishment

Section 3: Product Procurement
     3.1   Tooling Builds
     3.2   Production Part Establishment
     3.3   Purchase Orders
     3.4   Supplier Requested Component Changes

Section 4: Price and Price Changes
     4.1   Request for Quotation (RFQ)
     4.2   Cost Reductions
     4.3   Exchange Rate Sharing Policy
     4.4   Raw Material Sharing Policy
     4.5   Tooling Policy

Section 5: Additional Items
     5.1   Confidentiality Agreement
     5.2   Packaging and Shipping Requirements
     5.3   Minority Supplier Classification
     5.4   NAFTA
     5.5   Directions to AFCO

Section 6: Appendix
PURPOSE
These standards relate to all parts and accessories to be supplied to AFCO. The
intent of these standards is to create a foundation in which high quality, on time
delivery and long term partnerships between AFCO and its suppliers may be
established. These standards are a cooperative addition to other AFCO
standards, including but not limited to, the Supplier Quality Manual, Packaging
and Labeling Standard, etc.



SCOPE
These standards shall apply to all suppliers of parts under transaction with
AFCO.



PURCHASING PHILOSOPHY
AFCO philosophy is that establishing cooperative partnerships with suppliers will
achieve the best quality, delivery and cost for its products and achieve optimum
customer-satisfaction. Each supplier must in turn establish and maintain an
effective and comprehensive program that will ensure quality parts and services
are delivered to AFCO. The purchasing function of this system will address:

                •   SUPPLIER SELECTION
                •   AWARDING NEW BUSINESS
                •   PRODUCT PROCUREMENT
                •   PRICE AND PRICE CHANGES
                •   OTHER
                                                                                                                    AFCO
REVISION RECORD


Document #        Complete Manual                                               Title   AFCO
                                                                                        Supplier Purchasing Manual

APPROVAL

           Name                      Title               Signature                                Date
Steve Pugh                   Purchasing Mgr.   Steve Pugh                                       11/29/00
Karl-Heinz Friebe            Purchasing Mgr.   Karl-Heinz Friebe                                 9/18/03
Karl-Heinz Friebe            Purchasing Mgr.   Karl-Heinz Friebe                                 2/23/07
Karl-Heinz Friebe            Purchasing Mgr.   Karl-Heinz Friebe                                 4/2/07
Karl-Heinz Friebe            Purchasing Mgr.   Karl-Heinz Friebe                                 2/1/08
Karl-Heinz Friebe            Purchasing Mgr.   Karl-Heinz Friebe                                 2/18/08
Karl-Heinz Friebe            Purchasing Mgr.   Karl-Heinz Friebe                                 4/30/09
Karl-Heinz Friebe            Purchasing Mgr.   Karl-Heinz Friebe                                 10/5/09

REVISION RECORD

    Ltr.            Date                                       Change Description
     N            11/22/1999 issue
                                                  Delete Minority Business Classification form, AFCO Application for
     1            11/29/2000 Revision            Supplier Credit,Section 5.2, Authorization Request/Release Form and
                                                                               Instructions.
                                               MODIFIED the following: Preface, Table of Contents 1.6 and 2.1, Sections
                                                1.4, 1.6, 2.1, 2.2, 2.4, 4.3, 4.4, 5.2, 5.4, Raw Material Adjustment Form,
     2             9/17/2003 Revision          AFCO Application for Vendor Credit Information. REMOVED the following:
                                               Overall Supplier Agreement, Packaging Data Form, AFCO Vendor Master
                                                             Change Form. ADDED the following: IPP label

                                               Updated acroymns in sections 3.3, Evaluation & Development of
     3             2/23/2007 Revision          Subcontractors, corrected revision on F250.0005 (Rev. A), Removed
                                               Form # from Tooling Progress sheets (no longer a TS form)
     4              4/2/2007 Revision          Added Section regarding C-TPAT requirements
     5              2/1/2008 Revision          Updates to AFCO Credit Application
                                               Updates to Terms & Conditions section 13 for Contractor: Authorized
     6             2/18/2008 Revision          workers
                                               Updated Section 2.4 and 4.4 - Added IMDS reporting and
     7             4/30/2009 Revision          corrected Raw Material Sharing Policy
     8             10/5/2009 Revision          Updated Section 5.2 - Added Premium Freight Tracking
Purchasing Guidelines                            AFCO


  1. Customer Satisfaction

     Our purchasing targets are driven by customer
     satisfaction and customer requirements.

     We work in cross functional teams to receive the
     best value which is a combination of quality,
     delivery, cost and continuous improvement.

     Quality is first in this process.
Purchasing Guidelines                                AFCO


  2. Quality

     Everyone is responsible for supplier quality.

     We are striving for 0-defects in purchased goods
     and services.

     We work closely together with other departments to
     accomplish 0-defects.
Purchasing Guidelines                           AFCO


 3. Supplier Development

     We need innovative and high performing suppliers
     for goods and services.

     We have an open and fair long-term relationship
     with our suppliers.

     We respect our suppliers as independent
     entrepreneurs.

     We actively develop our suppliers towards world
     class suppliers.
Purchasing Guidelines                            AFCO


 4. Fairness and Openess

     We make purchasing decisions only based on facts
     and known criteria.

     We utilize mutually agreed upon criteria and
     processes within AFCO to select suppliers, to
     reach our targets and to evaluate supplier
     performance.
Purchasing Guidelines                             AFCO


 5. Market And Products

     We consider purchasing activities in the market
     and involvement in product or customer projects to
     be equally important.
     Therefore, we participate actively in development
     and cost optimization of products. We create
     competitive advantages through procurement
     marketing.
     It is an important task for us to systematically
     involve technically competent suppliers early in the
     development process.
Purchasing Guidelines                                    AFCO


 6. Environmental Responsibility

     Protection of the environment is important, and our
     decisions will be made in a manner that enhances our position
     as a good neighbor within the community.

     Our goal is to achieve compliance with relevant environmental
     laws and permit conditions, and to develop programs that
     provide environmental protection beyond existing
     requirements.

     We subscribe to the principles of pollution prevention and
     waste minimization, and strive to reduce environmental
     impacts by eliminating waste generation wherever practical.
Purchasing Guidelines                          AFCO


 7. Continuous Improvement

     We continuously improve the structure and the
     processes of purchasing and of all procurement
     activities.

     We seek best in class practices and strive to
     benchmark proven purchasing techniques among
     market and industry leaders worldwide.
Purchasing Guidelines                             AFCO


 8. Associate Development

    We are able to cope with the increasing
    requirements in the purchasing process by
    specifically improving the technical and social
    competency of our associates.
Purchasing Guidelines                              AFCO


 9. Delivery

     Timeliness of delivery is essential for production
     efficiency. We work closely with suppliers to
     achieve our goal of 100% on time delivery.

     Proper packaging and documentation increases
     efficiency through the manufacturing process. We
     strive for zero supplier non-conformances for
     packaging, receiving documentation and volume.
                                SUPPLIER PURCHASING MANUAL

Section 1: Supplier Selection

1.1 Evaluation and Development of Subcontractors

Refer to the flow chart, ”Evaluation and Development of Subcontractors” located in the
Appendix.

1.2 Supplier Survey

The supplier survey is issued to the potential supplier. The potential supplier must complete
the survey in detail. Companies returning incomplete surveys may not be considered for
further evaluation or development. A copy of the supplier survey may be found in the
Appendix

1.3 Supplier Audits

A cross-functional team from AFCO may perform an audit to further evaluate the potential
supplier`s capabilities. Each supplier will agree to an open door policy for AFCO and
AFCO customers to audit periodically as necessary.

1.4 Financial Status

Financial information available on the market such as Dun and Bradstreet will be used to
determine the financial stability of each potential supplier. Companies will also be expected
to answer specific financial inquiries to determine the financial stability of the supplier.

1.5 Component Samples

Component samples may be used to determine the supplier`s potential capability due to
new products or engineering changes. AFCO may request samples to be made to our
specification or accept current production parts supplied to other customers. AFCO will
begin to evaluate the level of development necessary to proceed into production through
this process.

Samples made to AFCO specifications should be made on equipment that would most
resemble the production process. The manufacturing method must be mutually decided
before proceeding.

Current production parts supplied to other customers will be considered under two general
categories. First of all, the process used to manufacture the production part must prove the
supplier`s capabilities to manufacture AFCO`s part. This will require the processes to be
the same or very similar. Second, the application of the other customers part should be
similar to AFCO`s.
1.6 Purchase Order Terms and Conditions

AFCO Terms and Conditions are a written contractual agreement to buy and sell parts and
services between AFCO and suppliers. It is the basis for establishing business with AFCO.
Therefore, it is the understanding of AFCO that suppliers willing to do business with AFCO
have had opportunity to read, agree and commit their companies to the contents contained
in the Terms and Conditions.

A copy of the Terms and Conditions is located in the Appendix. Suppliers may direct any
inquiries to their appropriate AFCO Purchasing contact.


Section 2: Awarding New Business

2.1 Acceptance of AFCO Terms and Conditions

AFCO’s Supplier Purchasing Manual is made available to all new suppliers prior to mass
production start up, normally during the development period. The supplier is expected to
read, agree and commit to the contents of the manual of which the Terms and Conditions
are a part. If no written notices are issued by the supplier prior to mass production start up
then the supplier has agreed to the Terms and Conditions.

2.2 Supplier Contact Information

Each supplier is required to submit critical contact personnel including names, telephone,
e-mail, pager and cell phone information.

Basic contact information is listed in the supplier survey, however additional detailed
information may be requested to establish the supplier in AFCO data base.

2.3 Approved Supplier Status

New suppliers must complete the designated approval process to be considered for new
business. AFCO Purchasing will request an engineer from AFCO`s Quality department to
perform a system survey of the supplier`s manufacturing process. The evaluation criterion
for this survey is located in the “Supplier Quality Manual”.

Current suppliers have completed the approval process previously. It is not necessary for a
supplier to repeat the approval process unless they have been dropped as an approved
supplier from historical poor performance. Any inquiries regarding supplier`s status may be
directed toward your Purchasing contact.

The approval status is AFCO Quality`s method of allowing Purchasing to release business
to a potential supplier. This does not alleviate component test requirements, PPAP
submission, testing and approval, which must be completed on a part by part basis.
2.4 Production Part Approval Process (PPAP)

The supplier shall submit an initial sample report in accordance with the AFCO Supplier
Quality Manual Production Part Approval Process (PPAP) guidelines unless otherwise
specified by the AFCO Sourcing Team. Contact the respective AFCO Supplier Quality
Representative for specific questions to PPAP submissions.

All samples accompanying PPAP submissions shall be identified with the appropriate label,
available through AFCO Purchasing, on the carton/container. The label shall contain all
required information. All PPAP submissions shall be shipped separately from production
material. A sample of these labels is located in the Appendix.

Materials reporting: AFCO is required to report via the International Material Data System
(IMDS) a detailed breakdown of the material composition and weight for each component.
This must be completed prior to receiving PPAP approval from the OEM. Our suppliers
must also report material breakdowns via IMDS.

      Prior to SOP, suppliers must submit a data module via IMDS for each component,
      which contains a detailed breakdown of the material composition and weight of the
      component.

      Evidence of IMDS data module submission should be provided with each PPAP
      submission. This information can be included on the Part Submission Warrant
      (PSW) Materials Reporting section upon PPAP submission.

The IPP tag should be placed on the outside of the packaging in the following cases:
   1. First mass production shipment at the start up of new business.
   2. First shipment after a change has been made (such as an engineering change).

The IPP tag is AFCO’s system for traceability.

2.5 Authorization Release

During the normal course of business the supplier may request various types of changes
that will require AFCO authorization. Purchasing will issue authorization to the supplier
using the Authorization Release form located in the Appendix.

2.6 Customer Account Establishment

AFCO recognizes that our suppliers must establish an account for AFCO as a customer.
AFCO offers each new supplier two documents for this purpose. The first is a list of
references with which the new suppliers can check credits and financial standards, and the
second is a tax exemption status. These documents are located in the Appendix.


Section 3: Product Procurement
3.1 Tooling Builds

The lead-time to procure tooling is critical to the launch of new business. It is the supplier`s
responsibility to proactively inform AFCO of milestone events during the tooling build,
maintaining the established leadtime. AFCO Purchasing requires each supplier to
correspond this information using a tooling progress sheet. Suppliers may use their own
tooling progress sheet, providing it is in Gantt Chart format and clearly stating the activity,
duration, start and finish timing. AFCO`s form may be found in the Appendix. There are
various conditions and requirements for different types of tooling. Suppliers should discuss
the requirements and expectations for each case with the proper AFCO Purchasing
contact. Refer to AFCO`s tooling policy in section 4.5 of this manual.



3.2 Production Part Establishment

Upon successful PPAP completion, the part number from the prototype to a mass
production part must be changed.

3.3 Purchase Order

AFCO has an annual blanket order for direct material purchases. Releases are issued by
the Production Control Department. Depending on circumstances, AFCO issues releases
for firm orders with two to six week leadtimes and two month rolling forecast.
AFCO also has kanban ordering with selected suppliers. AFCO may change the ordering
method to kanban for other suppliers also.

3.4 Supplier Requested Component Changes

Suppliers may request component design changes, either permanent or temporary, by
submitting one of two forms. The first is the Deviation Request. This request is used when
the supplier wishes AFCO to accept nonconforming material. Suppliers must conform to
AFCO Quality requirements regarding deviations located in the “Supplier Quality Manual”.

The second is the Supplier Request for Engineering Approval (SREA). This request is used
when the vendor desires to make permanent changes to the component design. The
supplier has to submit this form to the Quality Department and it has to be approved by
AFCO Purchasing. A copy of the form is located in the “Supplier Quality Manual”.


Section 4: Price and Price Changes

4.1 Request for Quotation (RFQ)

AFCO has an established format for quotations located in the Appendix. Instructions
identifying AFCO expectations are attached with the RFQ form. If any questions arise from
the content of information submitted with the request for quotation the supplier should
contact the appropriate AFCO Purchasing personnel. The supplier is expected to submit an
accurate quote the first time. AFCO will not allow suppliers to revise quotes unless it offers
a price reduction.

AFCO does not practice the “shotgun” approach which leads suppliers to give little attention
to accurate quotations. In contrast, AFCO expects each supplier to utilize all necessary
resources to offer the best price in the quickest possible time. Time is of the essence since
many quotation opportunities are for the purpose of obtaining new business for AFCO as
well as the supplier.


4.2 Cost Reductions

Due to our competitive nature we want our suppliers to make continuous improvement in
cost savings. Reduction amounts will vary from year to year depending upon AFCO`s
customer demands and market conditions. Cost reductions generally will be categorized in
two areas, Value Added/ Value Engineered (VA/VE) Proposals and other cost reductions.
The SREA is the authorized form for this activity and is located in the “Supplier Quality
Manual”.

VA/VE proposals typically require change in the design of the part to achieve the cost
reduction. These proposals will be evaluated by AFCO engineers and should be submitted
to the Purchasing or the Sales Coordination Department. The supplier should prepare
samples to adequately explain the proposals content. When samples are not feasible the
supplier will prepare drawings or sketches. In every case, testing will be the final
determining factor of acceptance for design changes.

Other cost reductions may include volume purchasing, inventory consignment, length of
contracts, supplier process improvements, reduction of paperwork, etc. These reductions
should be proposed by the supplier but may also be requested by AFCO.

4.3 Exchange Rate Sharing Policy

It is AFCO’s intent to procure product in US$. On occasion, depending upon market
economic conditions, AFCO may consider foreign currency purchases. AFCO does not
have an established exchange rate sharing policy. The currency will be determined at the
beginning of business for suppliers in foreign countries.

4.4 Raw Material Sharing Policy

Generally, AFCO does not participate in raw material sharing policies for most components.
Some of the factors AFCO will consider when determining our level of participation with raw
material adjustments include: type of material, historical cost volatility of material, publicly
traded with traceable cost trends using a renowned metal market periodical, amount of
material content in the component deemed to be volatile, AFCO`s customer`s acceptance
of the material adjustments, etc. The supplier should be prepared to submit supporting
documents indicating a need for the component to be enlisted in this policy.
All components accepted into this policy by AFCO will be subject to the criteria below.
AFCO will evaluate the appropriate adjustment period on a case-by-case basis. The
following example is for quarterly cost adjustments. It is preferred that suppliers submit cost
adjustments on AFCO forms included in the Appendix. An outline is attached identifying the
AFCO expectations.



                 AFCO`s Raw Material Price Adjustment Program (Aluminum)

Key points:    1) Quarterly changes
               2) Price adjustment is determined by quarterly averages
               3) Submission of adjusted price is 2 weeks prior to effective date
               4) AFCO format required for proper documentation and consideration
               5) The next release number after the implementation date will be the
                   effective date.

Details:       1) Quarterly changes
                  1.1) Effective periods are:
                                                Beginning Date     End Date
                                                January 1          March 31
                                                April 1            June 30
                                                July 1             September 30
                                                October 1          December 31

                  1.2) The release numbers on or after the 1st of each beginning period will
                       be the effective date of the price change.

               2) Price adjustments determined by quarterly averages

                  2.1) Prices for material not listed in public periodicals will be averaged
                       from actual purchase prices.

                  2.2) Prices for material publicly traded will be determined from a mutually
                       acceptable periodical.

               3) Submission of adjusted price is 2 weeks prior to effectivity date

                  3.1) Submission dates are as follows:

                                       Submission date       Implementation Date
                                       December 20           January 1
                                       March 20              April 1
                                       June 20               July 1
                                       September 20          October 1
                  3.2) If submission date falls on a weekend or holiday the following
                       working day will become the submission date.

               4) AFCO will not consider adjustments not documented on the required
                  AFCO format

4.5 Tooling policy

Payment recognition for tooling quoted from suppliers will be subject to AFCO`s tooling
policy in accordance with AFCO`s Overall Supplier Agreement. AFCO cannot accept
tooling cost responsibility for items our customers will not accept. AFCO will recognize
payment for tooling quoted by suppliers in four areas. AFCO`s tooling acceptance is
summarized as Product Specific Tooling.

Product Specific Tooling is defined as a die, jig, fixture, mold pattern, template, gauge, etc
which is purchased or constructed for use to manufacture parts or assemblies which will be
used on AFCO products exclusively. This tooling shall have a normal physical life of one
year or more and intended for the production and service life of AFCO specific models,
assemblies, or products.

The following guidelines will help determine if a tool is defined as product specific.

1) Product specific tools touch the part that is being produced. Examples are dies, fixtures,
   molds, jigs, and broaches. Dedicated software that can not be reprogrammed is an
   exception. This software may also be categorized as product specific.
2) Product specific tools can be readily relocated. In the event of a natural disaster, or
   work stoppage, these tools can be moved to alternate facilities for production.
3) Product specific tools can generally be found “between the bolster plates” of a machine
   or piece of equipment. For example, stamping dies are mounted to the bolster plates of
   a press.
4) Product specific tools are specifically designed for the production and service of the
   part.

Such items as hydraulics, electronics, motors, capital equipment, volume capacity, etc. are
not recognized as product specific tooling by AFCO. Containers for material handling,
unless specifically requested by AFCO, are not considered as tooling.


Section 5: Additional Items

5.1 Confidentiality Agreement

AFCO entrusts its suppliers with confidential information with the intent to develop business
in a highly competitive market.

In order to maintain our leading edge AFCO may request suppliers to sign a confidentiality
agreement when dealing with highly sensitive issues. A copy of AFCO`s agreement is
located in the Appendix.
5.2 Packaging and Shipping Requirements

The supplier is responsible for proposing the proper packaging method to AFCO. Suppliers
must submit the data using the Packaging Data Form with the PPAP. A copy of this form
may be found in the Packaging and Labeling Standard. One form should be completed for
each part supplied to AFCO. The suppliers should submit the form with the PPAP.
Procedures and specifications for packaging and shipping are explained in the AFCO
Packaging and Labeling Standard.

All paperwork concerning the shipments must conform to AFCO specifications. The
packing slip is the most crucial document to ensure proper receipt. Each supplier must
make every effort to guarantee complete accuracy of all information on the packing slip.
Inaccurate packing slips may result in product being received late. AFCO monitors the
packing slip information closely. Questions regarding packing slip information may be sent
to the Purchasing or the Production Control Department.

AFCO requires and monitors all supplier delivery performance, including 100% on time
delivery, the predefined packaging method, and accurate volume and receiving documents.
AFCO will charge all costs back to the supplier for correcting supplier mistakes, including
but not limited to, repackaging and correcting receiving documentation. AFCO requires
Advanced Shipping Notices (ASN’s) to be shipped prior to the truck leaving the supplier’s
dock.

100% On Time Delivery shall be defined as follows:
   1. Milkrun deliveries: +/- 0 days before or after requested delivery date.
   2. Non-milkrun deliveries: +0/-3 days before or after requested delivery date.
   3. 100% accurate Packing List.
   4. 100% accurate quantities (received vs. ordered).

A copy of the required packing slip information form is located in the Appendix.

Premium Freight Tracking: It is the policy of AFCO to monitor all Premium Freight
incidences by suppliers who provide direct material components. Premium Freight is
defined as shipments that incur extra charges due to expedites, missed milkruns, etc. This
information must be reported to the respective AFCO planner at the time of the expedited
shipment.
                                  Packing Slip Standard

The packing slip is the document prepared by the supplier identifying critical information
related to the product being shipped relative to a specific customer order.

    • Purchase Order Number
          - 7 digit number located at top-right of purchase order
          - digit extension (P.O revision number) is NOT required

    • Release Number
          - The release which is being satisfied with the current shipment

    • Attention Name
          - If specified on the P.O., it must be listed on the packing slip

    • Complete AFCO Part Number

    • Quantity
         - Exact quantity included in the current shipment

For vendors using kanban there is an information flow and an AFCO manifest form
attached in the Appendix.

5.3 Minority Supplier Classification

It is AFCO`s intent to procure material and services from minority vendors whenever
possible. AFCO monitors the percentage of minority content in our products. Therefore,
suppliers are requested to advise AFCO of minority content.
Minority owned suppliers are required to complete the Minority Supplier Classification form
located in the Appendix.

5.4 NAFTA

With NAFTA certifications, components and finished goods can be transshipped within the
NAFTA territories duty free or at lowered duty rates. The NAFTA Certificate of Origin
therefore represents considerable monetary savings to AFCO as well as to the customers.
AFCO requires the supplier to submit a NAFTA Certificate of Origin for each part number
that qualifies under the NAFTA rules of origin at the beginning of each calendar year.
General information on NAFTA and instructions for filling out the Certificate of Origin are
located in the Appendix.

You may need to consult with your customs broker or other outside experts on NAFTA in
order to make a final determination on the NAFTA qualification status of your products.
Products not qualifying for NAFTA preferential duty treatment do not require the Certificate
of Origin. However, suppliers are required to submit to AFCO the Traced Value for all parts,
whether product meets NAFTA qualification or not.
For questions please contact the AFCO controller.
5.5 Directions to AFCO

Two maps are included in the Appendix directing people from Atlanta Hartsfield
International Airport and the Greenville International Airport to AFCO.

Section 6.0 C-TPAT Requirements

AFCO participates in the Customs-Trade Partnership against Terrorism (C-TPAT). C-TPAT
is a joint government-business initiative to develop cooperative relationships that
strengthen overall supply chain and border security. Additional information regarding C-
TPAT can be obtained from Customers and Border Protection’s website at
www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat .

AFCO performs an annual review of all component part, raw material, sub-material, and
packaging suppliers and, if determined to be high or medium risk, their associated service
providers (transportation, port, terminal operation, forwarding, brokerage, warehousing,
cross-docking, etc.).

The annual review includes the following steps:
   1. Identify all component part, raw material, sub-material, and packaging Suppliers.
   2. Issue an initial questionnaire to each Supplier to determine their level of importation
      and participation in C-TPAT or other supply chain security program administered by
      a Foreign Customs Authority.
   3. For those Suppliers that provide parts imported into the USA directly to AFCO:
         a. Issue the AFCO C-TPAT questionnaire.
         b. Identify their associated transportation and Customers brokerage Service
              Providers.
         c. Issue initial and AFCO C-TPAT questionnaires to these Service Providers.
   4. For those Suppliers that do not provide parts imported into the USA directly to
      AFCO, issue a letter encouraging them to pursue formal supply chain security
      systems.
   5. Summarize and review the results of the surveys with related AFCO Management
      and do the following:
         a. Decide improvements that need to be managed by the Improvement Planning
              System.
         b. Decide which Suppliers and Service Providers require a physical audit of their
              security systems.
         c. Approve the results of the analysis.
   6. Work with the Suppliers and Service Providers to implement improvement systems.
   7. Audit Supplier’s and associated Service Provider’s security systems.
   8. Periodically review the progress and results of improvements and audits with related
      AFCO management.
APPENDIX
    SECTION 1

SUPPLIER SELECTION
                                                                            AFCO
       Evaluation and Development of Subcontractors
       Purchasing request information
       from supplier and send out supplier
       survey

       Supplier completes self-survey
       and forwards to AFCO with additional
       company information


       Purchasing reviews self survey
       and company information

                                                  Fail
       Results of review                                    Stop Activity


       Purchasing submits RFQ to supplier

                             Fail                 Fail
Pass              Re-negotiate                              Stop Activity

                               Pass
       Purchasing request sample product
       from potential supplier, if necessary

       Purchasing routes sample product
       (maybe PPAP level) to SPD, company
       information to SPD, QAD

                              Pass
       A cross-functional team visits supplier       Fail
       and performs Quality Systems audit                   Stop Activity

                            Pass                     Fail
       Development process, SPD                             Stop Activity

                            Pass
       Purchasing generates P.O. for PPAP parts
       and SQE monitors PPAP process


       SQE forwards a Supplier Quality Manual
       and PUR forwards a Packaging Manual to supplier
Process audit performed by AFCO. Supplier
delivers the following to AFCO SQE:

-   Warrant
-   Samples with layout data
-   Material Certifications
-   SPC Capability Data
-   Process Flow Charts
-   Failure Mode and Effects Analysis
-   Quality Control Plan
-   Packaging and Shipping Data


AFCO QAS evaluates PPAP Parts

-   Dimensionally
-   Chemically                 Fails                                 Fail
-   Functionally                                Corrective Action               Reject PPAP
-   Appearance
-   Durability                                                       Deviate/
                                       Pass                          Renegotiate/
                                                                     Repair

Supplier submits first production               Fail
lot to AFCO for production trial                                     Corrective Action

             Pass

Supplier and AFCO QAS evaluate
consecutive manufacturing lots to
verify effectiveness of controls

             Fail

Corrective Action Request issued
           to suppiler

                       Pass
AFCO QAS evaluate parts potential for
         certification
Possible                                        Not possible

AFCO QAS evaluat consecutive             Fail   Lots continue being processed
manufacturing lots for certifiation             through receiving inspection
determination

                        Pass                    Skip lot

AFCO QAS formally approves supplier
part for dock-to-stock                          Pass


Supplier status changed
to "certified"
                                                                                                AFCO
                                            SUPPLIER SURVEY




Completed by:                                                     Survey Date:

Signature:                                                        Title:

Product Type under investigation by AFCO:




General Information

Company Name:

Company Address:

Telephone Number:                                         Fax:

Other Locations:

Company Established:

Annual Sales (in million):       20              20              20              20       (forecast)

Ownership:     Private       /   Partnership          /   Corporation      /     Public

Listed with Dun & Bradstreet:         Yes    /   No              If yes: D & B No.: ______________

Attach Annual Report (if available)


Contact Person(s)

Sales:                                                    Telephone:

Quality:                                                  Telephone:

Production Control:                                       Telephone:

Engineering:                                              Telephone:

Environmental:                                            Telephone:


Senior Management

President:

Plant Manager:
                                        SUPPLIER SURVEY                                     AFCO

Recent Management Changes:

Attach Organization Chart (if available)


Personnel

Number of Employees:                          Direct:                     Indirect:

Shifts/Day:                                   Days/Week:

Union Affiliation:                            Agreement Expires:

Employment Levels (past 3 years):

Employee Turnover Ratio:


Facilities

Square Feet:                            Manufacturing:                    Office:

Age:                                    Expansion Plans:

Do you have a 5S (clearing, arrangement, cleanliness, clean-up, discipline) policy:



Production Information

Type of Manufacturing Process:      cell                        line                other

Secondary Capability:

Main Products:

Automotive:                   Direct:                   Indirect:

Annual Production (if raw material manufacturer)                          tons/year



Major Customers

1.                                                      % of Business

2.                                                      % of Business

3.                                                      % of Business
                                                                                                       AFCO
                                         SUPPLIER SURVEY


Equipment

Production/Manufacturing: (attach list)

Tool Room: (attach list)          No. of Toolmakers:                        Shifts:

Tool Room Capability:         Maintenance      /     Repair    /       Build-Production    /       Prototype

Short/Long Term Plans for Equipment Replacement:



Capacity Available:       Production:                              Tool Room:



Quality Information

No. of Persons:                         Lab:                               Inspection:

Lab Equipment: (attach list)

Are SPC techniques used?          Yes / No                 Where are they used?

Hours of SPC Training per year per person: QC:                Machine Operator:                Tool Room:

Other quality training:

Plans for Additional Capital Investment:

Rejection Rate:           Internal:     %          Returned Goods:         %

Raw Material Inspection:       Certs               Additional Inside                Additional Outside

Major Customer            Company                                          Rating
Quality Ratings:
                          Company                                          Rating

                          Company                                          Rating

Third Party Certification: Yes / No                Type:                            Auditor:

Expiration Date:

Attach Organization chart (if available)
                               SUPPLIER SURVEY                                                       AFCO

Engineering

No. of Persons:                                Design:

Tool Design:                    CAD                                  Sub Contract

Process:                               Electrical                    Mechanical                MFG:

                               Industrial

CAD file format ability (import/export): IGES:                      DXF:                  AutoCAD:

Other:

Tool design & manufacturing at US:      Yes    /     No                  If no, where is it?



Delivery

Tracking System to Monitor Performance:        Yes        /     No

On-Time Rating:         %      To:     Customer           or         Supplier

                        Want Date                         Promise Date

JIT Delivery:     Capable                      Currently Using

Company Trucks: Number                         Type                                            Age

Kanban Experience / Capable:           Yes     /    No

Are you capable to handle returnable packaging?               Yes    /      No



Environmental Information

The following environmental information is part of the ISO14000 audit; so be

sure that the following and all the other information is complete and accurate to

the best of your knowledge.
ENVIRONMENTAL INFORMATION                                                                     AFCO

1.   Do any of your processes involve the use of EPA-listed hazardous air pollutants or volatile
     organic compounds?
                                                        Yes [ ]   No [ ]           Not Sure [ ]

2.   Do any of your processes discharge water to a municipal water system, pond, lagoon,
     stream, river, lake or well?
                                                    Yes [ ]     No [ ]         Not Sure [             ]

3.   Do any of your processes generate waste chemicals which are potentially hazardous?
                                                   Yes [ ]     No [ ]          Not Sure [             ]

4.   Do you import or manufacture chemicals?
                                                         Yes [   ]       No [   ]        Not Sure [   ]

5. Does your facility use, apply, manufacture or distribute pesticides?
                                                        Yes [ ]     No [        ]        Not Sure [   ]

6. Is someone designated as being responsible for environmental management activities at
   your facility?
                                                    Yes [ ]    No [ ]      Not Sure [ ]

7. Does your facility have a program to regularly evaluate and control environmental
   activities and regulatory changes?
                                                      Yes [ ]   No [ ]         Not Sure [             ]

8. Does your facility have all the necessary air permits?
                                                        Yes [    ]       No [   ]        Not Sure [   ]

9. Does your facility have all the necessary water discharge permits?
                                                N/A [ ]     Yes [ ]             No [   ] Not Sure [   ]

10. Does your facility have a RCRA generator ID number?
                                                N/A [ ]          Yes [   ]      No [   ] Not Sure [   ]

11. Does your facility have all the necessary TSCA and/or FIFRA permits?
                                                 N/A [ ]     Yes [ ]     No [          ] Not Sure [   ]

12. Does your facility complete all mandated federal, state and local environmental
    reporting requirements (i.e. Tier II or Form R reports)?
                                                     N/A [ ] Yes [ ]    No [ ] Not Sure [             ]

13. Has your facility been found in violation of any Federal, state or local environmental
    regulation, law or statute in the last three years?
                                                        Yes [ ]      No [ ]          Not Sure [       ]

14. Has your facility or its ownership come under civil or criminal litigation regarding
    environmental activities?
                                                         Yes [ ]        No [ ]         Not Sure [     ]
                                                                                         AFCO
      ENVIRONMENTAL INFORMATION


15. Is there any uncontrolled chemical storage or dumping at this facility?
                                                Yes [ ]    No [ ]           Not Sure [       ]


16. Is there any chemical contamination or remediation activities at this facility?
                                              Yes [ ]     No [ ]             Not Sure [      ]


17. Do you have any third-party environmental certifications or registrations ?
                                              Yes [ ]      No [ ]           Not Sure [       ]


18. Has your facility received any environmental recognition? If so, please explain.
                                               Yes [ ]     No [ ]         Not Sure [ ]

____________________________________________________________________________________________


____________________________________________________________________________________________



19. Has your facility conducted any waste reduction activities? If so, please explain.
                                               Yes [ ]       No [ ]         Not Sure [       ]




____________________________________________________________________________________________



20. Has your facility conducted any utilities reduction activities? If so, please explain.
                                                   Yes [ ]      No [ ]          Not Sure [   ]




____________________________________________________________________________________________



21. Has your facility conducted any recycling activities? If so, please explain.
                                            Yes [ ]      No [ ]         Not Sure [   ]
ENVIRONMENTAL INFORMATION




Miscellaneous Information

Continuity of Supply:

       1. Additional manufacturing facility or association with similar manufacturer:
         (RE: transfer of tools due to disaster, strike, capacity, etc.)




       2. Back-up Power Supply:

Bar Coding Available:     Yes    /   No

Are you EDI capable?      Yes   /    No

Business with Japanese:    Current    /   Past        Company Name

Supplier Quality Assurance (SQA) System in Purchasing Function:             Yes    /    No



Minority Status:

Closest Airport:

Comments:
      SECTION 2

AWARDING NEW BUSINESS
            Outline of the Authorization Request / Release


This section has to be filled out by AFCO Purchasing:

1.     Issue Date – The date AFCO Purchasing issues the document.
2.     Issue Number – This is a sequential number created by AFCO
       Purchasing for tracking the document.
3.     Supplier Code – This is the number assigned to every vendor.
4.     Supplier Name – This is the company name of the supplier to receive the
       form.
5.     Purpose – The purposes are checked according to the intent of
       authorization.
6.     Disposition – this should be checked according to the decision that has
       been made.
7.     Action – indicate the number of the request and the date you want to
       receive the reply.
8.     Authorization – issued by: The person who initiated and wrote the form
       signs here formalizing the document;
9.     Drawing – Information about the issuance of the drawing is checked here.
       Timing for ‘will submit’ should be included in the text of the document.
10.    Part No., Part Description, Revision Level
11.    PPAP Submission – Initial samples for part evaluation and authorization
       are checked either required or not required.
12.    Related Document – indicates other AFCO documents that may be
       related to this release.
13.    Reason for Rejection or Conditional Approval

This section has to be filled out by the supplier:

14.    Prints are the Same Engineering Level – indicate yes or no.
15.    Differences are Noted as Follows – indicate if there are any differences.
16.    Are Tooling Changes Required? – if yes -> provide cost effect.
17.    Is Piece Price Affected? – if yes -> provide cost effect.
18.    Is the Leadtime Affected? – if yes -> indicate when the parts are
       available.
19.    Change Cannot be Made Due to – indicate why it is not possible to do
       any change.
20.    Remarks
21.    Quantity of Inventory that Could Not be Changed – indicate the
       amount of finished goods and of work in process that could not be
       changed.
22.    Supplier Approval / Date – indicate signature approval and date signed.
                                                                                                                               AFCO
                                     AUTHORIZATION REQUEST / RELEASE
ISSUE DATE:           (1)                                                                      ISSUE NUMBER:             (2)
 SUPPLIER CODE:       (3)             PURPOSE   (5)          DISPOSITION     (6)      ACTION       (7)     AUTHORIZATION (8)

 SUPPLIER NAME                     EC REQUEST                APPROVED,                1ST REQUEST         ISSUED BY:
                                   EC RELEASE                AUTHORITY TO             2ND REQUEST
                                   SREA #                    PROCEED                                       (signature)
                                                                                      FINAL REQUEST
                                   OTHER                     APPROVED WITH
            (4)                                              CONDITIONS
                                                             REJECTED                 REPLY BY
                                                             SUBMIT
                                                             INFORMATION ONLY


                                                      DRAWING       (9)

              ATTACHED                PREVIOUSLY SUBMITTED                WILL SUBMIT FORMAL                 NOT NEEDED


         PART NO.:                     DESCRIPTION:                          REVISION LEVEL:             PPAP SUBMISSION:
                                                                                                           REQUIRED
                                                                                                           NOT REQUIRED
                                                                                                               (11)

                                         (10)
                                                                                                         RELATED DOCUMENT:

                                                                                                                 (12)


 REASON FOR REJECTION OR CONDITIONAL APPROVAL:
                                  (13)


                                       SUPPLIER SECTION FOR ENGINEERING CHANGES


        1. PRINTS ARE THE SAME ENGINEERING LEVEL       (14)        YES               NO


       2. DIFFERENCES ARE NOTED AS FOLLOWS:           (15)



       3. ARE TOOLING CHANGES REQUIRED?                (16)       YES                NO

           IF YES, COST EFFECT $

       4. IS PIECE PRICE AFFECTED?                     (17)       YES                NO
           IF YES, COST EFFECT $

       5. IS THE LEADTIME AFFECTED?                    (18)
                                                                  YES                NO
          AVAILABILITY (IN WEEKS):

       6. CHANGE CANNOT BE MADE DUE TO:                (19)

       7. REMARKS:                                    (20)

       8. QUANTITY OF INVENTORY THAT COULD NOT BE CHANGED:

            FINISHED GOODS                       WORK IN PROCESS:                         TOTAL:

                                                      (21)

             SUPPLIER APPROVAL / DATE:                (22)


F250.0005, Rev. A
                                                                                                              AFCO
                                AUTHORIZATION REQUEST / RELEASE
ISSUE DATE:                                                                           ISSUE NUMBER:
 SUPPLIER CODE:                     PURPOSE            DISPOSITION               ACTION          AUTHORIZATION

 SUPPLIER NAME                EC REQUEST             APPROVED,              1ST REQUEST        ISSUED BY:
                              EC RELEASE             AUTHORITY TO           2ND REQUEST
                              SREA # __________      PROCEED                                   (signature)
                                                                            FINAL REQUEST
                            OTHER                    APPROVED WITH
                                                     CONDITIONS
                                                     REJECTED               REPLY BY
                                                     SUBMIT
                                                     INFORMATION ONLY



                                                     DRAWING

              ATTACHED              PREVIOUSLY SUBMITTED         WILL SUBMIT FORMAL              NOT NEEDED


       PART NO.:                     DESCRIPTION:                  REVISION LEVEL:           PPAP SUBMISSION:
                                                                                               REQUIRED
                                                                                               NOT REQUIRED



                                                                                             RELATED DOCUMENT:



 REASON FOR REJECTION OR CONDITIONAL APPROVAL:




                                     SUPPLIER SECTION FOR ENGINEERING CHANGES


      1. PRINTS ARE THE SAME ENGINEERING LEVEL             YES              NO

      2. DIFFERENCES ARE NOTED AS FOLLOWS:



      3. ARE TOOLING CHANGES REQUIRED?                     YES              NO
        IF YES, COST EFFECT $

      4. IS PIECE PRICE AFFECTED?                          YES              NO

        IF YES, COST EFFECT $

      5. IS THE LEADTIME AFFECTED?
                                                           YES              NO
        AVAILABILITY (IN WEEKS):

      6. CHANGE CANNOT BE MADE DUE TO:

      7. REMARKS:

      8. QUANTITY OF INVENTORY THAT COULD NOT BE CHANGED:

         FINISHED GOODS: _____________WORK IN PROCESS:___________________ TOTAL:_______________



     SUPPLIER APPROVAL / DATE:________________________________________________________________



                                                                                                        F250.0005, Rev. A
     SECTION 3

PRODUCT PROCUREMENT
                                                     TOOLING PROGRESS SHEET                                                                       AFCO



Part No.:                           Supplier Name:                                                                Issue No.:


                                                                                                                  Date:
Part Name:                          Supplier Contact:

                                                                                      Aug '99     Sep '99      Oct '99     Nov '99      Dec '99
 ID                Activity            Duration          Start            Finish       8/8 8/22   9/5 9/19   10/3 10/17 10/31 11/14 11/28 12/12
  1            Overall tool build       56 days         Mon 9/13/99    Mon 11/29/99
  2            Design Concept              7 days       Mon 9/13/99    Tue 9/21/99
  3         Component procurement       14 days      Wed 9/22/99       Mon 10/11/99
  4                  Build              14 days      Mon 10/11/99      Thu 10/28/99
  5                Test Tool               7 days       Fri 10/29/99   Mon 11/8/99
  6             Tool Approval              2 days       Tue 11/9/99    Wed 11/10/99

  7              PPAP run off              7 days    Thu 11/11/99      Fri 11/19/99
  8            PPAP submission             5 days    Tue 11/23/99      Mon 11/29/99




                                SAMPLE
                                    SAMPLE



                                    PO#:                                              Model:

                                    SOP:                                              QTY:
                                              TOOLING PROGRESS SHEET                                                               AFCO



Part No.:                      Supplier Name:                                                                         Issue No.:


                                                                                                                      Date:
Part Name:                     Supplier Contact:


                                                            Sep '99    Oct '99     Nov '99      Dec '99      Jan '0
 ID          Activity   Duration      Start        Finish   9/5 9/19 10/3 10/17 10/31 11/14 11/28 12/12 12/26 1/9




                              SAMPLE



                               PO#:                                             Model:

                               SOP:                                             QTY:
             TERMS AND CONDITIONS FOR THE PURCHASE OF GOODS


1. COMPLETE AGREEMENT: This Purchase Order shall become a binding agreement
   upon Seller signing and returning a copy of this Purchase Order to Buyer or upon Seller
   commencing performance of this Purchase Order or otherwise acknowledging
   acceptance, whichever occurs first. This Purchase Order, together with any
   specifications, drawings or other documents referred to therein, which are incorporated
   by this reference, constitutes the entire agreement between the parties and all prior
   negotiations, proposals and writings pertaining to this Purchase Order or the subject
   matter hereof, are superseded hereby. Any reference to Seller`s quotation, bid or
   proposal does not imply acceptance of any term, condition or instruction contained in
   such document. Any invoice, acknowledgement or other communication issued by Seller
   in connection with this Purchase Order shall be construed to be for record and
   accounting purposes only. Any terms and conditions stated in such communications
   shall not be applicable to this Purchase Order and shall not be considered to be Seller`s
   exceptions to the provisions of this Purchase Order. Trade custom and /or trade usage
   is superseded by this Purchase Order and shall not be applicable in the interpretation of
   this Purchase Order. In the event of any ambiguities, express conflicts or discrepancies
   in the specifications, drawings or other documents which are a part of this Purchase
   Order. Seller shall immediately submit the matter to Buyer for its determination and shall
   comply with the determination of Buyer in such matter. All headings and numbering in
   this Purchase Order are for convenience of reference only. The Supplier Quality
   Manual, Supplier Purchasing Manual, as well as the AFCO Packaging and Labeling
   Standard are an integral part of this contract.

2. SHIPMENT AND INVOICES: Unless otherwise specified on the face of this Purchase
   Order, goods must be shipped F.O.B. point of destination. Itemized packing lists shall
   accompany each shipment. Buyer`s count shall be accepted as final and conclusive on
   shipments not accompanied by Seller`s itemized packaging list. Partial shipments, if
   such are authorized by Buyer, shall not be construed as making the obligations of Seller
   severable. No charge shall be allowed for packing, shipment or handling unless
   otherwise stated in this Purchase Order. Seller shall pay for damaged goods resulting
   from improper packing or marking. All goods received in excess of Purchase Order
   requirements shall be subject to return for credit at Seller`s expense. Itemized invoices
   each bearing Buyer`s Purchase Order number must be mailed on the date of shipment
   to Buyer`s Accounts Payable Department. A properly signed Bill of Lading or express
   receipt must be attached to the invoice.

3. DELAYS TIME OF DELIVERY IS OF THE ESSENCE FOR THIS PURCHASE ORDER:
   Seller shall promptly notify Buyer of any actual or anticipated delay of delivery and take
   all reasonable steps to avoid or end delay without additional cost to Buyer. Where the
   delay is caused by acts of God, acts of civil or military authority, epidemic, war or riot
   which are beyond Seller`s control and which Seller could not have reasonably foreseen
   or provided against, Buyer shall have the right to either: (I) terminate, by written notice to
   Seller, all or part of this Purchase Order without liability to Seller of any kind for the
   terminated part(s) or (ii) extend the date of delivery or performance for a period equal to
   the duration of the delay but Seller shall not be entitled to any extra compensation for

                                             1
  such delay. Seller shall not be excused from performance hereunder where alternate
  sources of materials, goods or services are available.

4. TITLE: Seller warrants full and unrestricted title to Buyer for the goods and services
   furnished by Seller under this Purchase Order, free and clear of any and all liens,
   restrictions, reservations, security interests or encumbrances. If Buyer makes progress
   payments to Seller under this Purchase Order, title to the goods ordered hereunder shall
   pass to Buyer at the time identified in this Purchase Order, title to the goods ordered
   hereunder shall pass to Buyer at the time identified in this Purchase Order. Seller shall
   clearly identify such goods by visible marking or tagging, and Buyer shall have the right,
   at Buyer`s option, to inspect and verify that said goods have been identified as Buyer`s
   property. Care, custody, and control of such goods remain with Seller until such time as
   Buyer takes physical possession or otherwise agrees in writing by change order to this
   Purchase Order. All shop drawings, patterns, tools, dies or other items made
   preparatory to production of any goods are Buyer`s property and shall be cared for in
   accordance with Buyer`s instruction and, upon demand, shall be delivered to Buyer.

5. RESERVATION OF RIGHTS: The making or failure to make any inspection of or
   payment for the goods or services covered by this Purchase Order shall in no way
   impair Buyer`s right to reject non-conforming or defective goods or services, nor be
   deemed to constitute acceptance by Buyer of the goods or services, nor in any way
   affect Seller`s obligations under this Purchase Order, notwithstanding Buyer`s
   knowledge of any non-conformity or defect, the substantiality or ease of discovery or
   any such non-conformity or defect nor Buyer`s failure to earlier reject the goods or
   services.

6. WARRANTY: Seller warrants to Buyer that all goods and services covered by this
   Purchase Order shall conform to the specifications, drawings and other descriptions
   supplied or adopted by Buyer, shall be new, first class, fit and sufficient for the purpose
   for which they are intended as evidenced in this Purchase Order and in the drawings
   and specifications referred to herein, are of good materials, design and workmanship,
   free form defects, and shall satisfactorily fulfill the operating conditions specified herein
   or in connection with this Purchase Order. The term of this warranty shall be the longer
   of: (1) the term of warranty provided by the manufacturer of the final product into which
   the goods purchased herein are incorporated (hereinafter “Final Product”) (for example,
   an automobile component that is installed as original equipment in a motor vehicle shall
   have the same warranty period extended with the motor vehicle); (2) the term mandated
   by applicable law; or (3) twenty-four months from the date the Final Product is first
   placed into operation. Seller shall reimburse Buyer for all costs incurred by Buyer
   caused by or arising out of the failure of any goods furnished hereunder to meet the
   warranties set forth above or otherwise incorporated into this Purchase Order. Those
   costs shall include by way of example, cost of : removal, dealer markups of parts and
   labor, repair, transportation, storage, and any other incidental and consequential
   damages caused by the defective product except that costs shall not include Buyer`s
   loss of profits. Seller shall reimburse Buyer for all such costs within forty-five (45) days of
   receipt of invoice therefor. The above warranties are in addition to all other warranties,
   express or implied, at law or equity.


                                             2
7. INSPECTION AND EXPEDITING: Seller shall be responsible for the performance of all
   activities affecting quality and schedule, including those of its sub-suppliers. Buyer or
   Buyers’ Customer reserves the right to review Seller`s quality assurance and quality
   control procedures, and Seller shall at its expense furnish to Buyer a reasonable number
   of samples. The Buyer or Buyers’ Customer may inspect and witness Seller`s testing:
   Buyer or Buyers’ Customer shall be granted access to all parts of Seller`s plant(s) or
   Seller`s sub-supplier`s plant(s) engaged in the manufacturing or processing of this
   Purchase Order. The representative`s inspection and witnessing of testing, the lack
   thereof, or lack of response shall in no way release Seller from any obligations related to
   this Purchase Order. Seller shall further ensure that these terms and conditions become
   a part of its Purchase Orders to sub-suppliers for all goods or services which are used in
   the products purchased under this Purchase Order. Seller and/or Seller`s sub-supplier
   shall notify Buyer at least five (5) calendar days in advance of the date any inspection or
   test can be made. If, for any reason, the date should be set back, Seller shall telephone
   or wire Buyer immediately. Complete and accurate information is required to maintain
   the overall schedule. Unless otherwise stated, Seller shall furnish the status of
   engineering, material procurement, production and shipping information every fourteen
   (14) days as a minimum. SELLER SHALL NOT SHIP THE GOODS FURNISHED
   UNDER THIS PURCHASE ORDER WITHOUT BUYER`S FINAL INSPECTION OR A
   WRITTEN WAIVER OF INSPECTION FROM BUYER, VIOLATION OF THIS
   REQUIREMENT SHALL CONSTITUTE A REJECTION OF THE GOODS WITH
   SUBSEQUENT COSTS FOR RETURN OR OTHER ACTION AS WARRANTED TO
   THE ACCOUNT OF SELLER.

8. PATENTS: Seller shall, at its sole expense, indemnify, hold harmless and defend Buyer,
   its officers, employees, successors and customers from and against any suit or
   proceeding brought against Buyer based on a claim that the manufacture, use or sale of
   any goods or services or any part thereof supplied under this Purchase Order,
   constitutes infringement of any patent, copyright, trademark or proprietary information
   right of others, and Seller shall pay all damages and costs awarded therein against
   Buyer. Seller shall be promptly notified, in writing, of the suit or proceeding and shall be
   given adequate authority, information and assistance, at Seller`s expense, for the
   defense of same, subject to the right of Buyer to participate at its expense and to be fully
   advised by Seller in advance of all actions taken. In case said goods or any part thereof
   are, in such suit, held to constitute infringement or the sale or use of said goods or parts
   thereof are enjoined,, regardless of whether such determination constitutes a final
   judgement, Seller shall, at its expense, either procure for Buyer the right to sell and use
   said goods or part thereof; replace the same with substantially equal but non-infringing
   goods: or, if approved by Buyer, remove said goods and refund the purchase price and
   the transportation and installation costs thereof. The preceding shall not apply to any
   goods, or any part thereof, manufactured to designs furnished and required by Buyer,
   nor shall it apply to claims that the sale or the use of a process or use of a combination
   of the goods supplied by Seller hereunder with other goods infringes any patents, if
   such process or other goods were not supplied by Seller and Seller`s supplying the
   goods hereunder does not constitute contributory patent infringement.



                                            3
 9. INDEMNITY: For and in consideration of the covenants of Buyer under this Purchase
    Order, including the agreement of Buyer to pay to Seller the amounts which may
    become due and payable under the terms of this Purchase Order, Seller hereby agrees
    to assume the risk of and to release, defend, indemnify and save harmless Buyers and
    the related entities, directors, officers, employees, agents and assigns of Buyer
    (“Indemnitees”) from and against all loss, damage, liability, cost and expense (including
    reasonable attorney`s fees) arising out of any injury or death to any person or damage
    to any property, including damage to or failure of the goods furnished hereunder or
    damage to other components caused by such failure, resulting from or in any way
    connected with the performance of this Purchase Order or Seller`s breach of this
    Purchase Order or the goods furnished hereunder, regardless of whether or not such
    loss, damage, liability, cost or expense is caused in part by an Indemnitee. Neither this
    Article nor any other provision of this Purchase Order shall be construed in any
    circumstances to constitute an indemnification against any loss, damage, liability, cost or
    expense caused solely by the negligence of such Indemnitee. The indemnity obligations
    in this Purchase Order shall be deemed to be modified as required to exclude
    indemnification which is expressly prohibited by applicable law. Seller acknowledges
    receipt of specific payment of Ten Dollars ($10.00), incorporated into the purchase price,
    as legal consideration of Seller`s indemnity under this Article and all other indemnities as
    may be provided in this Purchase Order.

10. CHANGES: Buyer shall have the right to make changes in the specifications and
    drawings for goods or services covered by this Purchase Order. If Seller believes that
    any such change affects the price or delivery date for such goods or services, Seller
    shall so notify Buyer in writing, with adequate supporting documentation, within (5)
    calendar days after receipt of said written direction. Seller shall suspend performance of
    the change unless thereafter released, in writing, by Buyer to perform said change, and
    Buyer and Seller shall mutually agree, in writing, upon an equitable adjustment in the
    price and/or delivery date to reflect the effect of such change. Seller`s request for any
    adjustments shall be deemed waived unless submitted in writing within such five (5)
    calendar days after Seller receives direction to make such changes. Seller shall not
    suspend performance of the unaffected portion of this Purchase Order while Buyer and
    Seller are in the process of making such changes and any related adjustments, or at any
    time thereafter unless so instructed in writing by Buyer. If released in writing by Buyer,
    Seller shall comply with and perform such change in accordance with the terms of this
    Purchase Order during the time Seller and Buyer require to mutually agree upon an
    equitable adjustment. No substitutions shall be made in this Purchase Order without the
    prior written authority of Buyer. No agreement or understanding modifying the conditions
    or terms of this Purchase Order shall be binding upon Buyer nor shall extra
    compensation be paid by Buyer unless the agreement or understanding is made in
    writing.

11. CANCELLATION FOR DEFAULT: In the event Seller shall fail to perform any of its
    obligations under this Purchase Order, be adjudged bankrupt, make a general
    assignment for the benefit of its creditors, or if a receiver shall be appointed on account
    of Seller`s insolvency, or in the event Seller is in default of any provision or requirement
    of this Purchase Order, Buyer may, by written notice to Seller, without prejudice to any
    other rights or remedies which Buyer may have, cancel further performance by Seller

                                              4
    under this Purchase Order. In the event of such cancellation, Buyer may complete the
    performance of this Purchase Order by such means as Buyer selects, and Seller shall
    be responsible for any additional costs incurred by Buyer in so doing. Seller shall deliver
    or assign to Buyer any work in progress as Buyer may request. Any amounts due Seller
    for goods and services completed by Seller in full compliance with the terms of this
    Purchase Order prior to such cancellation shall be subject to offset Buyer`s additional
    costs of completing the Purchase Order and other damages incurred by Buyer as a
    result of Seller`s default. Waiver by Buyer of any default of Seller shall not be
    considered to be a waiver by Buyer of any provision of this Purchase Order or of any
    subsequent default by Seller.

12. CANCELLATION FOR CONVENIENCE: Buyer shall have the right to cancel, for its
    convenience, further performance of all or any separable part of this Purchase Order at
    any time by written notice to Seller. On the date of such cancellation stated in notice,
    Seller shall discontinue all work pertaining to this Purchase Order, shall place no
    additional orders, and shall preserve and protect materials on hand purchased for or
    committed to this Purchase Order, work in progress and completed work both in Seller`s
    and in its suppliers plants pending Buyer`s instruction, and shall dispose of same in
    accordance with Buyer`s instructions. Cancellation payment to Seller or refund to Buyer,
    if any shall be promptly and mutually agreed to by Buyer and Seller, shall be based on
    that portion of the work satisfactorily performed to the date of cancellation, including
    reimbursement for reasonable overhead and profit on such work, reasonable and
    necessary expenses resulting from the cancellation, as substantiated by documentation
    satisfactory to and verified by Buyer, disposition of work, material on hand and amounts
    previously paid by Buyer. Seller shall not be entitled to any loss of profits, contribution to
    overhead, or incidental, consequential or other damages because of such cancellation.
    Seller shall deliver or assign all goods with all applicable warranties or dispose of goods
    as directed by Buyer prior to final payment.

13. LAWS AND REGULATIONS: Seller warrants that all goods and services supplied
    pursuant to this Purchase Order will comply with all applicable federal and state laws,
    ordinances and regulations, including but not limited to those concerned with labor,
    environment and safety. Seller shall provide all permits, certificates and licenses which
    may be required for the performance of this Purchase Order. Seller also warrants that all
    goods furnished by Seller in performance of this Purchase Order shall comply fully with
    the Occupational Safety and Health Act of 1970 (84 USC 1590), as amended, and State
    plans approved under this Act: the Toxic Substance Control Act (15 USC 2601): and the
    regulations promulgated under both Acts, to the extend applicable to such equipment
    and in addition to any other rights or remedies which Buyer may have. “All wood
    packaging materials shipped must comply with treatment and marking requirements of
    IPPC ISPM # 15 and the following statement must be on documentation provided with
    each shipment, “Any wood packaging materials contained in this shipment complies with
    the treatment and marking requirements of IPPC ISPM #15.” According to the Animal
    and Plant Health Inspection Service (“APHIS”) regulations ( 7 C.F.R. Section 319.40-
    3(b) (1) ), solid wood packing material (“SWPM”) such as crating, pallets, drums, cases
    and skids, imported from any country, other than China and Hong Kong, can be
    imported without fumigation providing the SWPMs are completely free bark and are not
    used with regulated articles. C-TPAT Requirements. For Seller’s goods to be imported in

                                               5
    the United States, Seller shall accept, implement, and comply with all applications,
    recommendations or requirements of the United States Customs Service’s Customs-
    Trade Partnership Against Terrorism (C-TPAT) initiative (for information go to
    http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/). At Buyer’s or the
    Customs Service’s request, Seller shall certify in writing its acceptance, implementation,
    and compliance with the C-TPAT and any accompanying recommendations and
    guidelines. Seller shall indemnify and hold Buyer harmless from and against any liability,
    claims, demands or expenses (including attorney’s fees or other professional fees) arising
    from or relating to Seller’s failure to accept, implement or comply with C-TPAT.
    Contractors: authorized workers
    The contractor, as a condition of providing goods/services to AFCO, agrees to the
    following: The contractor has responsibility for the completion of I9’s for their workers,
    subcontractors, etc. The contractor is not providing unauthorized workers. The contract
    indemnifies AFCO (the employer), its parent companies, affiliates, etc. for any penalties,
    assessments, etc. for knowingly hiring unauthorized workers and I9 violations.

14. EQUAL EMPLOYMENT OPPORTUNITY: Seller shall comply with all applicable
    federal laws, regulations, and rules including but not limited to those relating to equal
    employment opportunity and the employment of minorities, women, the handicapped,
    and certain veterans, and contracting with women-owned or small and disadvantaged
    business concerns.

15. HAZARDOUS MATERIALS: Seller shall notify Buyer in writing upon receipt of this
    Purchase Order if any goods furnished are subject to laws or regulations relating to
    hazardous or toxic substances, or, when disposed of, to regulations governing
    hazardous wastes, or to any other environmental or safety and health regulations. Seller
    shall furnish all appropriate shipping certification and instructions for shipping, safety,
    handling, exposure and disposal in a form sufficiently clear for use by Buyer`s
    nontechnical personnel and sufficiently specific to identify all action which the user must
    take concerning the material. The following certification shall be made on the bill of
    lading: “This is to certify that the above named articles are properly classified, described,
    packaged, marked and labeled and are in proper condition for transportation according
    to any applicable transportation regulations.”

16. MECHANICS`LIENS: Seller`s obligations under this Purchase Order shall include
    keeping premises of Buyer free from all claims, liens and encumbrances. Seller, for itself
    and all of its contractors and suppliers of any tier, waives all rights of lien against the
    property and premises of Buyer for labor performed of for goods furnished for the work.

17. SUSPENSION OF PERFORMANCE: Buyer may, at any time, by written notice to
    Seller, suspend further performance of all or any portion of this Purchase Order by
    Seller. Such suspensions shall not exceed one hundred eighty (180) consecutive
    calendar days each nor aggregate more than two hundred seventy ( 270) calendar days.
    Upon receiving any such notice of suspension, Seller shall promptly suspend further
    performance of this Purchase Order to the extend specified and, during the period of
    such suspension, shall properly care for and protect all work in progress and materials,
    supplies and equipment Seller has on hand for performance of this Purchase Order.
    Seller shall use its best efforts to utilize its material, labor and equipment in such a

                                              6
    manner as to mitigate costs associated with suspension. Buyer may, at any time,
    withdraw the suspension as to all or part of the suspended performance by written notice
    to Seller specifying the effective date and scope of withdrawal, and Seller shall, on the
    specified date of withdrawal, resume diligent performance of the work for which the
    suspension is withdrawn. If Seller believes that any such suspension or withdrawal of
    suspension justifies modification of the Purchase Order price or time for performance,
    Seller shall comply with the section entitled CHANGES. In no event shall Seller be
    entitled to any loss of prospective profits, contributions to overhead or any incidental,
    consequential or other damages because of such suspension or withdrawals of
    suspension.

18. SPARE PARTS: During the term goods are supplied hereunder and for a period of 10
    years after Buyer has completed the last purchase of goods, Seller will supply all of the
    Buyer`s service and replacement requirements for the goods at the last valid prices plus
    any actual cost differential for manufacturing and packaging, such cost differential to be
    negotiated but in no case to exceed 20 percent (20%).

19. SERVICE WORK: In the event this Purchase Order requires the performance of service
    work or installation of goods by Seller upon any property, premise or project of Buyer,
    Seller shall examine the premises to determine whether they are safe for such services
    and shall advise Buyer promptly of any situation it deems to be unsafe. Before any work
    is performed under this Purchase Order, Seller shall provide written proof of the
    following insurance coverages: Worker`s Compensation in amounts required by law and
    Employer`s Liability Insurance with minimum limits of $100,000 per occurrence;
    Comprehensive General Liability with a combined single limit of $1,000,000 per
    occurrence for bodily injury and property damage, protecting Seller against bodily injury,
    including death, and property damage arising out of Seller`s operations; Automobile
    Liability Insurance with a combined single limit of $ 1,000,000 per occurrence for bodily
    injury and property damage covering use and operation of owned, non-owned and hired
    vehicles. If Seller sublets any of the work to a third party, Seller (i) shall maintain in full
    force and effect during the term of this Purchase Order, Buyer`s Protective Liability
    coverage with the same limits as specified for Comprehensive General Liability above,
    and (ii) shall require such third party to furnish the same insurance and indemnity as are
    required of Seller hereunder and show evidence thereof on a certificate satisfactory to
    Buyer.
    Safety, Health, and Environmental Regulations and Policies. While on the premises
    Buyer, Seller and its employees and agents shall comply with all applicable safety,
    health, environmental laws, regulations, ordinances and polices and with Buyer’s safety,
    ISO and plant rules. Seller shall keep said premises and the vicinity thereof clean of
    debris caused by its work, and upon completion of its work, shall leave the premises
    clean and ready for use. Upon request of Buyer and at no expense to Buyer, Seller shall
    promptly remove from said premises any person under the control of Seller who violates
    any of the aforesaid safety, health or plant laws, regulations, ordinances or rules, who
    may cause or threaten a breach of the peace, or who is otherwise objectionable to
    Buyer. It is the obligation of the buyer to ensure that all employees, agents, etc. working
    on sellers premises or on the seller’s behalf obtain proper training of all applicable
    safety, health and environmental ISO regulations, ordinances, policies and rules.


                                               7
20. INDEPENDENT CONTRACTOR: Seller shall act as an independent contractor and not
    as an agent or employee of Buyer and shall not contract any portion of the work to a
    third party without the written consent of Buyer.

21. GRATUITIES: Buyer may, by written notice to Seller, terminate the right of Seller to
    proceed or continue under this Purchase Order if it is found that gratuities, in the form of
    entertainment, gifts, or otherwise, were offered or given by Seller, or any agent or
    representative of Seller, to any officer or employee of Buyer with a view toward securing
    this Purchase Order or securing favorable treatment with respect to the awarding,
    amending or making of any determinations with respect to the performance of this
    Purchase Order. In the event this Purchase Order is terminated as provided in this
    provision, Buyer shall be entitled to the same remedies against Seller as Buyer could
    pursue in the event of a breach of this Purchase Order by Seller.

22. CONFIDENTIAL INFORMATION: This Purchase Order and the documents
    incorporated herein and all information designated as confidential or proprietary shall be
    deemed “Confidential Information” . Seller agrees to maintain and keep all Confidential
    Information in confidence and not to disclose it to any third party or use such information
    for any other purpose except as authorized by Buyer for the performance of this
    Purchase Order. Seller shall not publicize the existence or scope of this Purchase Order
    without Buyer`s written consent. Seller shall require these same agreements on the part
    of any sub-supplier to whom the information is disclosed. Seller shall return all
    Confidential Information and copies thereof to Buyer upon written request.

23. MISCELLANEOUS: Neither this Purchase Order nor any portion hereof shall be
    assigned or delegated without Buyer`s prior written consent and any such assignment
    delegation shall be void. Buyer`s failure to insist on performance of any term, condition
    or instruction, or failure to exercise any right or privilege, or its waiver of any breach shall
    not thereafter waive any such term, condition, instruction, right, privilege or breach. This
    Purchase Order shall be subject to the law and jurisdiction of Buyer`s principal place of
    business. The invalidity of any part of these terms and conditions shall not affect the
    validity of the remaining provisions.

24. ARBITRATION: The parties agree to submit all disputes between them arising out of or
    related to this Purchase Order or the breach, alleged breach or interpretation thereof to
    binding arbitration. Within thirty (30) days after either party has notified the other in
    writing that is is submitting a dispute to arbitration, one arbitrator shall be selected under
    the then current rules of the American Arbitration Association (“AAA”) pertaining to
    commercial disputes. The arbitration shall be held in the state of Buyer`s principal place
    of business and shall be conducted in accordance with the Commercial Arbitration rules
    of the AAA except the AAA shall not have authority to make any award for damages
    excluded herein. The arbitration award shall be by a written decision and shall be final
    and binding, and enforceable by any court of competent jurisdiction.

25. RIGHT TO OFFSET: Buyer, without waiver or limitation of any rights or remedies of
    Buyer, shall be entitled from time to time, to deduct from any amounts due or owing by


                                               8
    Buyer to Seller in connection with this Purchase Order, or any other Purchase Order or
    Contract with Buyer, any and all amounts owed by Seller to Buyer.

26. SECURITY: If Buyer makes any advance or progress payment to Seller under this
    Purchase Order, upon Buyer`s request, Seller agrees to execute a Security Agreement
    and Financing Statement (both in form satisfactory to Buyer) granting a Security Interest
    to Buyer, effective in all states of fabrication or manufacture, in the proceeds, raw
    materials and goods which are purchased, manufactured or otherwise obtained pursuant
    to the Purchase Order.




                                            9
       SECTION 4

PRICE AND PRICE CHANGES
                              RFQ Instructions



  1.    AFCO Quote Number

2-8.    Self explanatory to be provided by AFCO

9-16.   Self explanatory to be filled out by the supplier. (Items 13, 14 and 15
        need supporting information)

17.     Packaging Costs. Cost of returnable containers (specify if other) as specified
        on the packaging data form provided and in accordance with AFCO Packing
        and Labeling Standard.

18.     Conditions: - AFCO may list special conditions for quotation
                    - Supplier should list exceptions to quoting conditions

19.     Lead Time of Samples, PPAP and Production Parts – Supplier should quote
        each event in weeks.

20.     Total Tooling Cost – the supplier indicates the total tooling cost taken from the
        quotation detail.

21.     Piece Price total without tooling.

22.     Percentage of Minority Content in this quote. (Attach supporting
        documentation)

23.     Percentage of NAFTA Content in this quote. (Attach supporting
        documentation)

24.     Percentage of Local Content in this quote. (Attach supporting documentation)
                                                                                                                                                       AFCO
Request for Quotation
                                                                                                          AFCO Quote Number:              (1)



Supplier:                                                          Reply to:
(name and address)                          (2)                                                                      (3)

Supplier Code:                                                     Return RFQ by:



          Design Revision Level                    Part Number                 Part Description                  Part Weight           Planned Annual Volume

                     (4)                               (5)                           (6)                             (7)                        (8)


                             Raw material         Purchased Part    Direct Labor       Overhead costs                                                 Packaging
              Target Cost                                                                                        GS & A                Profit
                                cost                   cost            Cost             fixed variable                                                  cost

   Cost:             (9)          (10)                 (11)              (12)              (13)    (14)             (15)                (16)            (17)
   % of
total cost:


Conditions:                                                                                                  Lead time:            Samples
                                                                                                                                   PPAP                 (19)
                                                                                                                                   Production
                                            (18)
                                                                                                             Tooling Cost total:                        (20)

                                                                                                             Piece Price total:                         (21)


% of minority content in this quote         (22)

% of NAFTA content                          (23)

% of local content                          (24)                                                  Authorized Supplier Representative / Date
                                                                                                                                     AFCO
Request for Quotation
                                                                                                     AFCO Quote Number:



Supplier:                                                    Reply to:
(name and address)

Supplier Code:                                               Return RFQ by:



          Design Revision Level              Part Number                 Part Description                   Part Weight




                             Raw material   Purchased Part    Direct Labor       Overhead costs
              Target Cost                                                                                    GS & A
                                cost             cost            Cost             fixed variable

   Cost:
   % of
total cost:


Conditions:                                                                                             Lead time:               Sa
                                                                                                                                 PP
                                                                                                                                 Pro

                                                                                                        Tooling Cost total:

                                                                                                        Piece Price total:


% of minority content in this quote

% of NAFTA content
                                                                                            Authorized Supplier Representative / D
% of local content

                                                                                                                          F250.001, Rev. A,10-28-99
                                        MATERIAL COST ADJUSTMENT NOTICE
TO:                                           The following material adjustment is offered for your considerations.
FROM:
DATE:                                         MATERIAL COST AVERAGE =                    $xxx.xx /lb
Effective Period:                              AFCO PO#

                                                        Material     Base    Total NEW                  Net       Purchase   Savings or     Release #
   AFCO P/N               Description         Weight                                   Old Cost
                                                         Cost        Price     Cost                    Change      Volume      (Loss)     Effective Date




                                                                                         Total Savings or Loss
                    = supplier completes and submits information t
KEY
* Net Change
A (negative) Net Change number reflects a decrease in piece price

* Total Savings or (Loss)
A (negative) number reflects a loss
   SECTION 5

ADDITIONAL ITEMS
Associated Fuel Pump Systems Corporation                                              AFCO
                                                                                       1100 Scotts Bridge Road
                                                                                      P.O. Box 1326
                                                                                      Anderson, SC 29622

                                                                                      Telephone (864) 224-0012
                                                                                      Telefax (864)224-2927

                             ASSOCIATED FUEL PUMP SYSTEMS CORPORATION
                           CONFIDENTIAL INFORMATION DISCLOSURE AGREEMENT
                                FOR POTENTIAL AND EXISTING SUPPLIERS

         In consideration of the opportunity to submit a Quote and to be considered as a potential supplier to
Associated Fuel Pump Systems Corporation, the undersigned Company, through its authorized representative,
agrees not to disclose to third parties (except for those of the Company’s employees, agents and representatives who
have a need to know for the purpose of preparing the Quote and who have been bound to comply with this
Agreement) or to make any use, exhibit in trade shows or as sales samples, copy, or transcription of, except as
authorized in advance by AFCO in writing, any AFCO business, technical and/or financial information (individually and
collectively called "Confidential Information") whether or not marked or identified as confidential and received by the
Company in writing (computer generated or handwritten), orally, visually (e.g., prototypes, tooling, etc.) or electronic
format and relating to Quote.
          The Company further agrees not to use AFCO’s Confidential Information for any other purpose than to
provide a Quote to AFCO. The Company shall hold AFCO’s Confidential Information in confidence indefinitely from
the first date of its disclosure to the Company. Furthermore, the Company shall not manufacture products for any third
party using AFCO’s Confidential Information.
        This Agreement shall not affect the Company's right to use or disclose Confidential Information which the
Company can establish by tangible evidence: (a) is or may hereafter be in the public domain through no wrongful act
of the Company, its employees, agents or representatives; (b) is known to the Company prior to the disclosure by
AFCO; (c) is disclosed to the Company by a third party subsequent to disclosure by AFCO without similar restrictions
regarding confidentiality, disclosure and use; (d) is approved for release by AFCO; or (e) is independently developed
by the Company without use of AFCO’s Confidential Information.
          All Confidential Information disclosed by AFCO to the Company, and all copies, summaries, drawings, or
descriptions thereof, including prototypes and electronic data, shall remain the property of AFCO. Upon AFCO’s
request, the Company shall promptly return all Confidential Information (originals, copies, prototypes, etc.) to AFCO or
certify in writing that the Confidential Information has been destroyed or, in the case of electronic data, permanently
deleted. The Company shall not obtain any rights or licenses to AFCO’s Confidential Information disclosed, except to
use the same as expressly stated in this Agreement.
        Nothing in this Agreement shall obligate AFCO to enter into any business transaction with the Company. All
disclosures made by the Company in connection with, including its Quote for, the Project shall be deemed received by
AFCO on a non-confidential basis. This Agreement constitutes the entire and only understanding between the parties
regarding AFCO’s Confidential Information, and shall continue in full force and effect regardless if the Company is
awarded the business, and regardless of any contrary terms and conditions found in the Company’s Quote or other
sale documents for the Project. This Agreement shall not be amended, changed or modified except by a writing
signed by AFCO’s authorized representative.

ACCEPTED AND AGREED TO BY THE COMPANY:

Company Name: _______________________________________________________

Company Address: _____________________________________________________

Signature of Authorized Representative:______________________________________

Authorized Rep. Printed Name: ____________________________________________

Authorized Rep. Title: ____________________________________________________

Date Signed: ___________________________________________________________
the terms of the North American Free Trade Agreement (NAFTA). NAFTA requires                   tion of information is 15 minutes per respondent or recordkeeper depending on individual circum-
that, upon request, an importer must provide Customs with proof of the exporter’s writ-        stances. Comments concerning the accuracy of this burden estimate and suggestions for reducing
ten certification of the origin of the goods. The certification is essential to substantiate   this burden should be directed to U.S. Customs Service, Paperwork Management Branch, Wash-
compliance with the rules of origin under the Agreement. You are required to give us           ington DC 20229, and to the Office of Management and Budget, Paperwork Reduction Project (1515-
this information to obtain a benefit.                                                          0204), Washington DC 20503

                 NORTH AMERICAN FREE TRADE AGREEMENT CERTIFICATE OF ORIGIN INSTRUCTIONS
For purposes of obtaining preferential tariff treatment, this document must be completed legibly and in full by the exporter
and be in the possession of the importer at the time the declaration is made. This document may also be completed volun-
tarily by the producer for use by the exporter. Please print or type:
FIELD 1:     State the full legal name, address (including country) and legal tax identification number of the exporter. Legal taxation number is: in Canada, em-
             ployer number or importer/exporter number assigned by Revenue Canada; in Mexico, federal taxpayer’s registry number (RFC); and in the United
             States, employer’s identification number or Social Security Number.
FIELD 2:     Complete field if the Certificate covers multiple shipments of identical goods as described in Field # 5 that are imported into a NAFTA country for a
             specified period of up to one year (the blanket period). “FROM” is the date upon which the Certificate becomes applicable to the good covered by
             the blanket Certificate (it may be prior to the date of signing this Certificate). “TO: is the date upon which the blanket period expires. The importa-
             tion of a good for which preferential treatment is claimed based on this Certificate must occur between these dates.
FIELD 3:     State the full legal name, address (including country) and legal tax identification number, as defined in Field # 1, of the producer. If more than one
             producer’s good is included on the Certificate, attach a list of additional producers, including the legal name, address (including country) and legal
             tax identification number, cross-referenced to the good described in Field #5. If you wish this information to be confidential, it is acceptable to state
             “Available to Customs upon request”. If the producer and the exporter are the same, complete field with “SAME”. If the producer is unknown, it is
             acceptable to state “UNKNOWN”.
FIELD 4:     State the full legal name, address (including country) and legal tax identification number, as defined in Field #1, of the importer. If the importer is not
             known, state “UNKNOWN”; if multiple importers, state “VARIOUS”.
FIELD 5:     Provide a full description of each good. The description should be sufficient to relate it to the invoice description and to the Harmonized System
             (H.S.) description of the good. If the Certificate covers a single shipment of a good, include the invoice number as shown on the commercial in-
             voice. If not know, indicate another unique reference number, such as the shipping order number.
FIELD 6:     For each good described in Field #5, identify the H.S. tariff classification to six digits. If the good is subject to a specific rule of origin in Annex 401
             that requires eight digits, identify to eight digits, using the H.S. tariff classification of the country into whose territory the good is imported.
FIELD 7:     For each good described in Field #5, state which criterion (A through F) is applicable. The rules of origin are contained in Chapter Four and Annex
             401. Additional rules are described in Annex 703.2 (certain agricultural goods), Annex 300-B, Appendix 6 (certain textile goods) and Annex 308.1
             (certain automatic data processing goods and their parts). NOTE: In order to be entitled to preferential tariff treatment, each good must meet at
             least one of the criteria below.
Preference Criteria
         A The good is “wholly obtained or produced entirely” in the territory of one or more of the NAFTA countries as referenced in Article 415. Note: the
             purchase of a good in the territory does not necessarily render it “wholly obtained or produced”. If the good is an agricultural good, see also criterion
             F and Annex 703.2. (Reference: Article 401(a) and 415)
         B The good is produced entirely in the territory of one or more of the NAFTA countries and satisfies the specific rule of origin, set out in Annex 401 that
             applies to its tariff classification. The rule may include a tariff classification change, regional value-content requirement, or a combination there- of.
             The good must also satisfy all other applicable requirements of Chapter Four. If the good is an agricultural good, see also criterion F and Annex
             703.2. (Reference: Article 401(b))
         C The good is produced entirely in the territory of one or more of the NAFTA countries exclusively from originating materials. Under this criterion, one
             or more of the materials may not fall within the definition of “wholly produced or obtained”, as set out in Article 415. All materials used in the
             production of the good must qualify as “originating” by meeting the rules of Article 401(a) through (d). If the good is an agricultural good, see also
             criterion F and Annex 703.2. (Reference: Article 401(c))
         D Goods are produced in the territory of one or more of the NAFTA countries but do not meet the applicable rule of origin, set out in Annex 401, be-
             cause certain non-originating materials do not undergo the required change in tariff classification. The goods do nonetheless meet the regional val-
             ue-content requirement specified in Article 401(d). This criterion is limited to the following two circumstances:
             1. The good was imported into the territory of a NAFTA country in an unassembled or disassembled form but was classified as an assembled
                    good, pursuant to H.S. General Rule of Interpretation 2(a), or
             2. The good incorporated one or more non-originating materials, provided for as parts under the H.S., which could not undergo a change in tariff
                    classification because the heading provided for both the good and its parts and was not further subdivided into subheadings, or the subheading
                    provided for both the good and its parts and was not further subdivided.
             NOTE: This criterion does not apply to Chapters 61 through 63 of the H.S. (Reference: Article 401(d))
         E Certain automatic data processing goods and their parts, specified in Annex 308.1, that do not originate in the territory are considered originating
             upon importation into the territory of a NAFTA country from the territory of another NAFTA country when the most-favored-nation tariff rate of the
             good conforms to the rate established in Annex 308.1 and is common to all NAFTA countries. (Reference: Article 308.1)
         F The good is an originating agricultural good under preference criterion A, B, or C above and is not subject to a quantitative restriction in the import-
             ing NAFTA country because it is a “qualifying good” as defined in Annex 703.2, Section A or B (please specify). A good listed in Appendix 703.2B.7
             is also exempt from quantitative restrictions and is eligible for NAFTA preferential tariff treatment if it meets the definition of “qualifying good” in
             Section A of Annex 703.2. NOTE 1: This criterion does not apply to goods that wholly originate in Canada or the United States and are imported
             into either country. NOTE 2: A tariff rate quota is not a quantitative restriction.
FIELD 8:     For each good described in Field #5, state “YES” if you are the producer of the good. If you are not the producer of the good, state “NO” followed by
             (1), (2), or (3), depending on whether this certificate was based upon: (1) your knowledge of whether the good qualifies as an originating good; (2)
             your reliance on the producer’s written representation (other than a Certificate of Origin) that the good qualifies as an originating good; or (3) a
             completed and signed Certificate for the good, voluntarily provided to the exporter by the producer.
FIELD 9:     For each good described in field #5, where the good is subject to a regional value content (RVC) requirement, indicate “NC” if the RVC is calculated
             according to the net cost method; otherwise, indicate “NO”. If the RVC is calculated over a period of time, further identify the beginning and ending
             dates (DD/MM/YY) of that period. (Reference: Articles 402.1, 402.5)
FIELD 10:    Identify the name of the country (“MX” or “US” for agricultural and textile goods exported to Canada; “US” or “CA” for all goods exported to Mexico;
             or “CA” or “MX” for all goods exported to the United States) to which the preferential rate of customs duty applies, as set out in Annex 302.2, in ac-
             cordance with the Marking Rules or in each party'’ schedule of tariff elimination.
             For all other originating goods exported to Canada, indicate appropriately “MX” or “US” if the goods originate in that NAFTA country, within the
             meaning of the NAFTA Rules of Origin Regulations, and any subsequent processing in the other NAFTA country does not increase the transaction
             value of the goods by more than seven percent; otherwise “JNT” for joint production. (Reference: Annex 302.2)
FIELD 11:    This field must be completed, signed, and dated by the exporter. When the Certificate is completed by the producer for use by the exporter, it must
             be completed, signed and dated by the producer. The date must be the date the Certificate was completed and signed.
                                                                                                                                                           Customs Form 434 (121793) (Back)
                                DEPARTMENT OF THE TREASURY
                                UNITED STATES CUSTOMS SERVICE
                                                                                            OMB No.1515.0204
                            North American Free Trade Agreement                             See Customs Form 434
                            Certificate of Origin (Continuation Sheet)                      for Paperwork Reduction
                                                                                            Act Notice.
                                         19 CFR 181.11.181.22



         (5)                  (6)              (7)                 (8)         (9)       (10)            (12)
DESCIPTION OF GOOD(S)     HS TARIFF       PREFERENCE            PRODUCER      NET     COUNTRY          TRACED
                        CLASSIFICATION     CRITERION                         COST     OF ORIGIN         VALUE
                           NUMBER
   ===============      =============      ==========           ==========   =====     ========        ======




                                                                                     Customs Form 434 (121793)
to Buyer, effective in all states of fabrication or manufacture, in the proceeds, raw
materials and goods which are purchased, manufactured or otherwise obtained pursuant
to the Purchase Order.




                                      9
                                                                                                                                                    Approved through 12/31/96
                                                           DEPARTMENT OF THE TREASURY                                                                     OMB No. 1515-0204
                                                           UNITED STATES CUSTOMS SERVICE                                                            See back of form for Paper-
                                                                                                                                                    work Reduction Act Notice.
                                                   NORTH AMERICAN FREE TRADE AGREEMENT
                                                             CERTIFICATE OF ORIGIN

Please print or type                                                19CFR 181.11, 181.22
1.   EXPORTER NAME AND ADDRESS                                               2.    BLANKET PERIOD (DD/MM/YY) (January through December)

                                                                               FROM:

                                                                               TO:
3.   PRODUCER NAME
4.   ADDRESS                                                                   5.    IMPORTER NAME AND ADDRESS




                                                                               TAX IDENTIFICATION NUMBER:
TAX IDENTIFICATION NUMBER: Available upon request from US Customs
                      (5)                                       (6)               (7)                  (8)                  (9)            (10)                   (12)
             DESCIPTION OF GOOD(S)                          HS TARIFF        PREFERENCE             PRODUCER               NET          COUNTRY                 TRACED
                                                          CLASSIFICATION      CRITERION                                   COST          OF ORIGIN                VALUE
                                                             NUMBER
                  ===============                         =============        ==========           ==========            =====          ========                ======




I CERTIFY THAT:

•  THE INFORMATION ON THIS DOCUMENT IS TRUE AND ACCURATE AND I ASSUME THE RESPONSIBILITY FOR PROVING SUCH REP-
RESENTATIONS. I UNDERSTAND THAT I AM LIABLE FOR ANY FALSE STATEMENTS OR MATERIAL OMMISSIONS MADE ON OR IN CON-
NECTION WITH THIS DOCUMENT;
•   I AGREE TO MAINTAIN, AND PRESENT UPON REQUEST, DOCUMENTATION NECESSARY TO SUPPORT THIS CERTIFICATE, AND TO
INFORM, IN WRITING, ALL PERSONS TO WHOM THE CERTIFICATE WAS GIVEN OF ANY CHANGES THAT COULD AFFECT THE ACCURACY
OR VALIDITY OF THIS CERTIFICATE;
•   THE GOODS ORIGINATED IN THE TERRITORY OF ONE OR MORE OF THE PARTIES, AND COMPLY WITH THE ORIGIN REQUIREMENTS
SPECIFIED FOR THOSE GOODS IN THE NORTH AMERICAN FREE TRADE AGREEMENT, AND UNLESS SPECIFICALLY EXEMPTED IN ARTICLE
411 OR ANNEX 401, THERE HAS BEEN NO FURTHER PRODUCTION OR ANY OTHER OPERATION OUTSIDE THE TERRITORIES OF THE
PARTIES; AND

•   THIS CERTIFICATE CONSISTS OF                 1      PAGE, INCLUDING ALL ATTACHMENTS.
11a. SIGNATURE                                                            11b. COMPANY


11c. NAME (Print or Type)                                                      11d. TITLE

11e. DATE (DD/MM/YY)                                            11f.           (Voice)                                        (Facsimile)
                                                            TELEPHONE
                                                             NUMBER
                                                                                                                                       Customs Form 434 (121793)
PAPERWORK REDUCTION ACT NOTICE: This information is needed to carry out    Statement Required by 5 CFR 1320.21: The estimated average burden associated with this collec-
             Directions from Greenville International Airport to Anderson,
             Exit 27 on I-85


                                                                         Greenville / Spartanburg
                                                                          International Airport


                                              I-85



                 Exit 27                                                  Exit 57




                             Hwy 81                               N

~ 1 mile                                              W

                                                                           E


      AFCO                                                    S



             Scotts Bridge
               Road

                             To Anderson
   Large white               approximately 10 miles
   building




                                                          Direction:
                                                          • I-85 South
                                                          • Hwy 81 or Exit 27 (approximately 1 mile)
                                                          • Scotts Bridge Road - turn right


                                                          Total trip ~ 30 minutes
        Directions from Hartsfield Airport to Anderson, Exit 27 on I-85


                                                 Hwy 81



                                                                              ~ 1 mile
       N                                         Exit 27

                               SOUTH
                               CAROLINA



                        GEORGIA                                      AFCO
                                                                                         Scotts Bridge Road


                                                            Large white building




                            I-85




       I-75




                                   285
              Atlanta



                •
              Atlanta Hartsfield          I-75
I-85          Airport


                                          Direction:

                                          •      I-85 North (approximately 130 – 140 miles)
                                          •      Hwy 81 or Exit 27 in South Carolina -
                                                 turn right (approximately 1 mile)
                                          •      Scotts Bridge Road – turn right


                                          (total trip ~ 130 – 140 miles or 2 hrs 15 minutes)

				
DOCUMENT INFO
Description: Supplier Purchasing Manual document sample