PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: SHIPPING (IMPORT) product information

Transcription

1 HERE S WHERE YOU ARE PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: SHIPPING (IMPORT) overview purchase orders product samples quality assurance product information brand packaging & labeling shipping compliance domestic shipping Shipping Authorization Request (SAR) Carton Requirements Packing Requirements Pallet Requirements Shipment Preparation and Loading Packing Slips import shipping On-Site Inspection and Approval Required Import Documents Freight Terms and Booking Carton Requirements Packing Requirements Container Loading drop ship Setting up for Drop Ship Fulfillment Options Drop Ship Data Exchange Non-Receipt Claims (NRC) -159-

2 TABLE OF CONTENTS PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: SHIPPING (IMPORT) Import Shipping 159 Table of Contents 160 Purpose and Objectives 161 On-site Inspection and Approval 162 Preparing Required Import Documents 163 Freight Terms and Booking 167 Destination Shipping Locations 171 Carton Requirements: Construction and Strength 172 Carton Requirements: Box Manufacturer s Certificate (BMC) 173 Carton Requirements: HSN Branding 174 Packing Requirements 175 Packaging Bulk Import Jewelry 178 Container Loading

3 PURPOSE & OBJECTIVES PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: SHIPPING (IMPORT) Our Purpose Getting your product from an overseas factory to the HSN Fulfillment Center on time, intact and in perfect order requires precision, coordination and teamwork. From submitting the correct documents, to the way the shipment is recorded and tracked, each step in the Import Shipping Process is critical to achieving a timely and cost effective delivery for everyone. There are three phases to the Import Shipping process: 1. On-site Inspection/Approval Phase includes the booking, completion and approval of your product through the Quality Assurance (QA) On-site Inspection Process 2. Freight Booking Phase includes coordinating the booking with HSN s Forwarder for shipping of your freight 3. Packing/Shipping Phase includes packing, recording and loading your product for shipping to HSN s Fulfillment Center(s) This section will guide you through each of these phases and detail the people, processes and policies applicable to each phase. How This Section is Set Up This section is designed to provide an overview of HSN s Import Shipping requirements and recommendations, guide you through the Import Shipping process, and give you an understanding as to how you and your products fit into that process. There are six subsections, each detailing how we work with you to ensure the entire process goes smoothly: On-Site Inspection and Approval: Details the process for arranging an On-site Inspection at your factory Preparing Required Import Documents: A checklist for the documents HSN will need to facilitate your shipment Freight Terms and Booking: How the costs and responsibility of the shipping will be divided Carton Requirements: Guidelines for choosing the right construction and strength for the cartons used to ship your products to HSN Packing Requirements: How to pack your product for effective shipment to HSN and efficient processing Container Loading: How to ship the highest density containers that your product mix allows Key Contacts Import Shipping Questions Frank Ruotolo Sr. Manager QA Operations frank.ruotolo@hsn.net Packaging Labeling Shipping Diane Houghton Coordinator Shipping Compliance Diane.Houghton@hsn.net Labeling Shipping Scott Leonard Manager Import Compliance scott.leonard@hsn.net Classification US Customs Compliance Federal Agency Compliance Vendor Compliance vendorcompliance2@hsn.net General Questions -161-

4 ON-SITE INSPECTION AND APPROVAL On-Site Inspections As detailed in the Quality Assurance section of this manual, when product is acquired outside of the United States, HSN requires a product quality inspection at the factory where the product was made before it is cleared to ship to an HSN Fulfillment Center or to the customer. HSN refers to these inspections as On-Site Inspections (On-Sites) and has a program devoted to ensuring the process is accomplished in the most effective manner. On-Sites are conducted by a third-party inspector or a qualified HSN On-Site Inspector. On-Site inspections are typically conducted as a Finished Product Inspection and act as a follow-up to QA s Initial Product Evaluation. As part of the Finished Product Inspection an On-Site s purpose is to: Assess the product s conformance to Initial Product Evaluation Evaluate the presentation and functionality of the product labeling and packaging Identify any potential issues before the product ships to the customer Verify that the packaging and labeling meet HSN standards as outlined in the Brand Packaging and Labeling sections of this manual Details outlining how to arrange your on-site inspection, prepare for your on-site inspection, the review & disposition of the onsite inspection, and the shared cost fees associated with on-site inspection can be found within the Quality Assurance section of this manual

5 PREPARING REQUIRED IMPORT DOCUMENTS Required Import Documents When your freight is delivered to the Port of Origin, you will need to provide HSN s Forwarder with a specific set of documents to ensure your shipment complies with all applicable U.S. Customs entry regulations. Many of the documents will depend upon product category, origin, material content and other factors related to your product. However, there is a core set of documents needed in every case. Throughout the entire Import PO process, it is your responsibility to ensure that all documentation is completed and submitted on time and to the appropriate contact. Please reference the following pages for a complete list of required Import documents, as well as brief descriptions for each. You may also contact HSN s Import Compliance Manager at Scott.Leonard@hsn.net for any questions. The First Required Import Document The IPIS As detailed in the Purchase Orders section of this manual, the very first step in initiating an import shipment with HSN is to complete and submit an Import Product Information Sheet (IPIS) to your Buyer. To reiterate, this document will help HSN to ensure that the shipment is in compliance with all applicable U.S. Customs Regulations, and will help us determine shipping costs ahead of time. A copy of the IPIS & related glossary of definitions to guide you through the information sheet can be uploaded and printed from Appendix D in this manual. After the IPIS and accompanying documents are submitted to HSN, they will be reviewed by your Buyer and the HSN Import Compliance team. If all of the information is complete and all of the documents are in order, you will receive an HSN approved IPIS and will be issued a purchase order (PO) from your Buyer. The HSN approved IPIS is the first document of the Final Import Documents Package. It will detail if any governmental agency clearance is required in order to import your product into the U.S. - such as Food and Drug Administration (FDA), Federal Communication Commission (FCC) or Fish and Wildlife (FW) Forms - these federal documents must be included in your Final Import Documents Package when you ship your product. A brief description of these forms is included in list of required Import documents in the following pages

6 PREPARING REQUIRED IMPORT DOCUMENTS (CONTINUED) Required for Every Import PO The following are core documents required for every Import PO: document type 1 Import Product Information Sheet (IPIS) 2 Commercial Invoice defined prepared by when required The following are core documents required for every Import PO: Copy of HSN approved IPIS detailing product information Document detailing the description and price of the merchandise being shipped to HSN 3 Packing List Document that verifies the packaging details of your shipment Always Always Always *form available 4 Certificate of Origin Government issued certificate certifying the country of origin for the product being shipped is truly the country the product was manufactured in Always 5 Beneficiary Statement A certification signed by the beneficiary of the letter of credit in regards to the condition(s) of the cargo that HSN has purchased For All Letter of Credit 6a Ocean Bill of Lading A receipt for the cargo and a contract for transportation issued by an ocean carrier. Carrier provides directly to HSN s forwarder If shipping via ocean carrier 6b Airway Bill/ Carrier Certificate A contract between the shipper and airline that states the terms and conditions of transportation. Carrier provides directly to HSN s forwarder If shipping via airfreight carrier 7 Forwarder Cargo Receipt Document that shows proof of cargo turn over to the HSN approved forwarder. uses this document to collect on the letter of credit HSN s forwarder Always 8 Verified Gross Mass (VGM) Form Document that shows you ve accurately weighed your shipping containers in accordance with the International Maritime Organization s Safety of Life at Sea (SOLAS) Regulations. It must be turned in to the Origin Office before containers can be loaded on vessels. Always; Please provide to C.H. Robinson Representative upon completion of Container Loading *If noted, forms or templates are available in Appendix D at the end of this manual

7 PREPARING REQUIRED IMPORT DOCUMENTS (CONTINUED) Required Import Documents Related to Point of Origin and Type of Packing Materials The following are core documents required depending on point of origin and type of packing materials: document type defined prepared by when required *form available A B Fumigation Certificate Wood Packing Material Declaration Certificate that certifies that the regulated wood packing materials used to pack the product has been fumigated for bug infestation in accordance with International Standards for Phytosanitary Measures (ISPM) 15 regulations. A statement on the invoice which declares that the shipment does/does not contain any regulated wood packing material. One of the following statements must be used: A. No Regulated Wood Packing Material was used in this shipment. B. Regulated Wood Packing Material was used in this shipment and is visibly marked with the IPPC The fumigation company contracted by the All shipments that contain regulated wood packing material must provide evidence of certification. Statement A or B, as defined, is required on all commercial invoice(s) for Import Purchase Orders. *If noted, forms or templates are available in Appendix D at the end of this manual

8 PREPARING REQUIRED IMPORT DOCUMENTS (CONTINUED) Required Import Documents Related to The Product Category The following are core documents required depending on the product category: document type defined prepared by when required *form available A Trademark (TM) Declaration Declaration that HSN is authorized to import the product bearing the TM and that the TM is a valid TM registered with the U.S. Patent and TM Offices Trademark Owner All Trademarked product B Interim Footwear Invoice Document that provides detail on how a piece of footwear was constructed and the materials used All footwear shipments *Note: Required at time of IPIS C Wearing Apparel Detail Sheet Document that provides detail on how a piece of wearing apparel was constructed and the materials used All apparel shipments *Note: Required at time of IPIS D Knit to Shape Validation Declaration that a knit to shape apparel item is truly manufactured in that fashion All apparel classified as a knit to shape product *Note: Required at time of IPIS E US Food & Drug Administration Forms (FDA) Applicable forms required by the FDA For any FDA regulated product *Note: HSN approved IPIS will detail required forms F US Federal Communication Commission Forms (FCC) Applicable forms required by the FCC For electronic products *Note: HSN approved IPIS will detail required forms G US Fish & Wildlife Services (FWS) Forms Applicable forms required by the FWS For products that contain fish and/or wildlife parts *Note: HSN approved IPIS will detail required forms H Jade & Ruby Certficate of Conformity Declaration that the jade &/or ruby used in the import product is not from Burma All jade & ruby shipments I Plant & Plant Product Declaration Declaration that the import product contains plant or plant product in it All plant or plant product shipments *If noted, forms or templates are available in Appendix D at the end of this manual

9 FREIGHT TERMS AND BOOKING Freight Terms HSN typically imports under Free On Board (FOB) Origin Terms. This means that HSN is responsible for the freight and shipping costs after it reaches the applicable Carrier at the Port of Origin (overseas port where the freight will be begin its overseas journey). Note: proper container loading and utilization is the responsibility of the shipping the product. However, the is responsible for the freight and shipping costs from the factory to the Port of Origin and must coordinate the booking and movement of freight with HSN s Forwarder. This includes costs associated with the pick-up of empty containers, delivery of loaded containers to the Port of Origin, or any consolidation freight fees associated with less than container loads (LCL). Once the product passes the ship s rails at the Port of Origin, HSN and it s Carrier assumes responsibility of the cargo. Freight Booking As detailed in the Purchase Orders section of this manual, shipping your product to the HSN Fulfillment Center by the Required Ship Date (RSD) detailed on your PO is essential to the entire Import PO process. To effectively meet this requirement, it is important to contact the Forwarder at least two weeks prior to the RSD to coordinate the shipping of your freight to the appropriate HSN Fulfillment Center(s). In order to (a) determine the best routing options (based on the RSD), (b) pre-book space with the Carrier and (c) arrange for release of containers or provide delivery details for less-than container volume, the Forwarder will need the following information: Date you ll be ready to ship Per the Fulfillment Center allocation detailed in your PO, the volume of the order (how many cubic meters, how many containers needed) For a complete listing of HSN preferred Forwarders please reference the Forwarder Contact List included in Appendix A of this manual. *Import Security Filing (ISF) ISF, commonly known as 10+2 initiative, is a Customs and Border Protection (CBP) regulation that requires importers and vessel operating carriers to provide additional advance trade data to CBP. This data is required no later than 24 hours before the cargo is loaded aboard a vessel destined to the United States(1) The HSN ISF will be filed only by the HSN authorized freight forwarder. Only upon written approval by the VP of Supply Chain or the Manager of Import Compliance can a vendor file an ISF on behalf of HSN. If any ISF is filed without the afore mentioned approval the vendor shall be liable for any and all fines or penalties assessed to HSN by CBP for incorrect or late filings. Due to the fact that ISF must be submitted 24 hrs prior to lading we expect complete cooperation with our freight forwarder in obtaining the required data for any individual ISF. * Pursuant to Section 203 of the SAFE Port Act of 2006 and Section 343(a) of the Trade Act of 2002, as amended by the Maritime Transportation Security Act of 2002, for non-bulk cargo shipments arriving into the United States by vessel (1)

10 FREIGHT TERMS AND BOOKING (CONTINUED) Jewelry Booking and Shipping As outlined under freight booking please contact the local freight forwarding office to coordinate the shipping of your product. For jewelry shipments only, the product will ship via UPS small package. UPS will set up your factory(s) so that you can print labels for each package. Each factory that you ship out of must be approved by UPS prior to shipping. This process will take at least 30 days so please plan according or your product will not be permitted to ship. Please note the following details when preparing the shipment: Do not put a declared value. Please select Expedited Service unless otherwise instructed by HSN. Each box should not exceed $10,000 in product value. For example if you have $100,000 in product value you should ship 10 boxes. Ship under HSN Account number 0E0896. This account should not be used for any other shipments; this includes the submission of Buyer, QA and show room samples to HSN. This account should also not be used for upgrades in the ship methods that are requested due to shipping/delivery failures caused by your internal fulfillment issues. For those vendors that had shipped with Brinks in the past you should continue to send your Buyer, QA and show room samples via the same carrier that you had in the past. Your invoice number should be listed under Reference No. 1 in the UPS system The HSN PO# should be listed under Reference No. 2 in the UPS system. Use only the numerical digits Example Do not enter PO# Vendors should make every effort not to use any merchandise descriptions that specifically reference the following: jewelry, gold jewelry, sterling silver jewelry, precious stones, watches, etc. Instead only list an item number. For the HSN department only use Dept 01. Please note that we will be auditing account 0E0896 for any unauthorized shipping. Any shipments that are not authorized will be debited against any open PO

11 FREIGHT TERMS AND BOOKING (CONT D) Jewelry Booking and Shipping (continued) The following are screen shots explaining how to add the ship notification option for HSN vendors that are using UPS Worldship. In the address book editor, please add the HSN address in the address field

12 FREIGHT TERMS AND BOOKING (CONT D) Jewelry Booking and Shipping (continued) Once you come to the Ship To page select Quantum View Notify under the options tab. Next click the "Recipients" button under Shipment Quantum View Notify. Please note that you should not update the shipper number to the one listed below. This field will automatically update to the correct shipper number for each vendor. Next please put a check in the ship notification box, enter the address importdepartment@hsn.net and click "OK" Finally, you will complete the shipment and print the label. The notification will automatically be sent when you performs the end of day transmission of data to UPS

13 DESTINATION SHIPPING LOCATIONS Destination Shipping Locations The port of entry will depend on which Fulfillment Center your products are going to. Your PO will specify exactly how many products will be needed at each location. HSN s Forwarder will determine the Port of Entry at the time the cargo is booked for shipping. west coast east coast 4 1 HSN Fulfillment - Fontana (WH 96) Santa Ana Ave Fontana, CA HSN Fulfillment Center - Roanoke (WH 93) 1 Avery Row Roanoke, VA Zip Code Apparel & Accessories Zip Code Jewelry 3 HSN Fulfillment - Piney Flats (WH 92) 857 Mountain View Dr Piney Flats, TN HSN Showroom (WH 1) th Ave N St Petersburg, FL HSN Fulfillment Greeneville (WH 94) 1915 Snapps Ferry Rd Greeneville, TN

14 CARTON REQUIREMENTS: CONSTRUCTION AND STRENGTH Choosing the appropriate corrugated carton is the first step in ensuring your product ships and arrives in perfect condition and that the packaging passes the Package Integrity Testing as outlined in the Quality Assurance section of this manual. Carton Construction Ensuring product is effectively transported without damage requires that product be properly packaged in the appropriate carton(s) and meet the following requirements: All cartons must be constructed of A-flute, B-flute, or C-flute corrugate E- and F-flute corrugate is not permitted for shipping cartons (re-shippers or master cartons) Corrugation of the carton must run vertically (up and down) when the carton is in its intended shipping/stacking orientation Carton flaps must be on the top or bottom face of the carton while in this orientation All cartons should be of appropriate size and shape to the items being shipped - do not over-pack or under-pack cartons All re-shipper cartons MUST be of consistent dimensions and weight for each sku. Carton Strength The MINIMUM strength required for your cartons is based upon the carton weight and dimensions. Depending on the distribution cycle (import products), the necessary carton strength may be higher than what is shown in the chart. Please refer to the Quality Assurance section of the manual for additional guidance on the selection of the appropriate carton strength and compliance with HSN Packaging Integrity Standards. A B C D Weight Limit of Box & Contents (lbs.) Box Size Limit L + W + H (in.) Mullen Burst Strength (psi.) Edge Crush Test (lbs./in. width) Single-wall Corrugate Cartons Double-wall Corrugate Cartons >

15 CARTON REQUIREMENTS: BOX MANUFACTURER S CERTIFICATE (BMC) Box Manufacturer s Certificate (BMC) HSN requires that every corrugate shipping carton has a Box Manufacturer s Certificate (BMC) printed on the surface. The BMC is a guarantee of the board strength used in the construction of the carton stated as either a Burst Strength or Edge Crush Test number. Please contact your corrugate supplier to make certain that every carton has the stamp. The following are examples of correct BMC labeling: Note: It is the s responsibility to ensure that their chosen box maker is using the appropriate box strength. The will be responsible for all stoppage and/or rework fees if damage occurs at the HSN Fulfillment Center due to insufficient box strength

16 CARTON REQUIREMENTS: HSN BRANDING Carton Requirements: HSN Branding Reinforcing the HSN brand extends from our products and into our packaging. HSN strongly recommends that all products packaged within self-shipper cartons be marked with the HSN Logo. The size of the product carton will dictate the size and position of the HSN logo to use. Small cartons ( 1,000 cubic inches) use a 2 diameter log placed 1 from the bottom and 1 from the right on the largest panel of the carton Medium cartons (1,001 to 10,000 cubic inches) use a 3 diameter log placed 1.5 from the bottom and 1.5 from the right on the largest panel of the carton Large cartons (>10,000 cubic inches) use a 4 diameter log placed 2 from the bottom and 2 from the right on the largest panel of the carton -174-

17 PACKING REQUIREMENTS Packing Configuration: Re-Shipper Cartons and Master Cartons The use and configuration of re-shipper cartons and/or master cartons will depend on the size and weight of your specific product. In some cases, it may be necessary to place individual selling units in re-shipper cartons to protect the product and ensure the product and its original packaging arrives to the customer in perfect condition after shipping from HSN. In other cases, grouping individual selling units in master cartons is the most effective way of shipping your product to HSN Fulfillment Centers. If using re-shipper cartons to package individual selling units, depending on the size of the re-shippers, you may be able to palletize them without the need to place them into master cartons before palletizing your product. Please use the following guidelines to determine the appropriate configuration for packing your individual selling units: If your re-shippers are large enough to palletize on their own without damaging the product or the re-shippers in transit, you are permitted to forgo using a master carton to palletize your shipment. In these cases, your re-shipper carton must also be larger than the MINIMUM master carton dimensions for your product category as noted in the table below. If your re-shippers are too small to palletize, please place them into master cartons before palletizing your shipment NOTE: Products that are not packaged in re-shipper cartons must always be packaged in master cartons. Please Remember The simplest way to plan the packing of your products so that your master cartons only contain single SKUs, yet each master carton is fully utilized, is to ensure your entire order quantity is divisible by the number of selling units that can fit in each of your master cartons. For example, if you can fit ten selling units in a master carton, an order of 100 selling units would mean that ten master cartons could be equally filled with ten selling units each and that no loss of space or mixed-sku cartons would occur. You will want to determine this amount and discuss any carton case pack limitations with your Buyer before the PO is issued. Master carton quantities for all re-orders of a SKU must remain consistent with the master carton quantities of the very first shipment or original PO of that SKU. We recommend that you keep a record of the first shipment in order to mirror the configuration for future orders. Any changes in master carton quantities must be coordinated with HSN prior to shipping a new configuration

18 PACKING REQUIREMENTS (CONTINUED) Master Carton Contents & Quantity Master cartons must contain single SKUs. Do not include selling units of a different SKU in a master carton. All master cartons for a specified SKU must have the same number of selling units within the carton. The quantity per carton is established with the first shipment received. All cartons of a SKU within the first shipment and all future shipments must retain the same number of selling units within the master cartons. NOTE: If there are not enough units under one SKU to complete the master carton, HSN allows the inclusion of one short carton that contains less than the full standard quantity for the SKU. Short quantity cartons must be labeled appropriately with the label facing out and placed on the top layer of the pallet. Master cartons must contain a MINIMUM of 4 selling units per carton. Items that cannot fit 4 units or more into a master carton MUST be packaged as re-shippers and palletized without master cartons Void fill within a master carton should be avoided, but should void fill is necessary within a master carton (short qty carton, etc.), the void fill material cannot be packaging peanuts or shredded paper Inner packs are not allowed within a master carton, each selling unit SKU must be pickable when the master carton is opened no additional unpacking to access the SKU should be required Master Carton Size/Weight Master cartons must meet the following minimum/maximum dimensions and weight All master cartons of a SKU within the first shipment and all future shipments must retain the same dimensions. Product Category Minimum Dimensions * Length Width Height Cubic Volume Maximum Dimensions (L x W x H) Maximum Weight (lbs) Jewelry NA 24 L x 15 W x 13 H 40 lbs Apparel & Accessories in 3 24 L x 20 W x 16 H 50 lbs All Other Product Types in 3 24 L x 20 W x 20 H 50 lbs *Note All three dimensions as well as the cubic volume must meet the minimum requirements. Ex. A carton with the dimensions 12 x 10 x 3 is not acceptable due to having a cubic volume of only 360 in

19 PACKING REQUIREMENTS (CONTINUED) Packaging Guidelines for Various Product Categories Additional guidance for packaging specific product categories can be found within that product s quality assurance manual: Apparel: Cosmetics: Fashion Accessories: Food: Footwear: Handbags & Luggage: Hardlines: Jewelry: Textiles:

20 PACKAGING BULK IMPORT JEWELRY Overview Appropriate packaging ensures that a product arrives in good condition when shipped to HSN s customer. HSN requires that all products be identified and packaged so that they arrive at HSN without damage and can be handled within HSN s distribution environment. All bulk jewelry product that arrives at HSN s Distribution Center must comply with HSN s packaging and labeling requirements. Failure to do so will result in HSN Vendor Chargeback. Please review HSN s Supply Chain Requirements Manual: Shipping (Imports) section, for complete instructions pertaining to Carton Requirements. This document explains how the vendor must label and package bulk jewelry product that is shipped into HSN s Distribution Center and how it should be packaged in bulk in order to flow through the HSN distribution system smoothly and efficiently. The way a jewelry item is packaged at the factory impacts its appearance as it goes through transit. This in turn affects what HSN s customers will see when they open their package. The HSN SKU The HSN SKU (stock keeping unit) is a 6-digit numeric code that identifies a salable unit. The SKU represents the products SKU (stock keeping number or parent number), color code, and size code if applicable. The SKU can be found in the HSN Item # UPC column of your Purchase Order. Vendors are required to use the complete SKU listed on your Purchase Order when labeling all salable units, inner pack/cartons, and master cartons. The HSN Color/Type code is a three-digit field that represents a color name (e.g., 001 = black). Use this code when applicable. The HSN Size code is a three-digit field that represents a size name. The product may have a size code (e.g., 070 = size 7). Use this code when applicable. The HSN shape (e.g., 034 = dog) is a three-digit field that represents a shape name. Use this code when applicable. Do not use spaces or dashes between the SKU parent number and color or size codes. Definitions Selling Unit: A selling unit refers to one (1) HSN SKU (e.g ) as it will be shipped to a HSN customer. Inner Pack: An inner pack is a poly bag or carton that contains multiple salable units of one SKU. Saleable units packaged within a poly bag require an inner pack before being packaged within the master carton. The inner pack(s) need to be labeled with full SKU and quantity, and then packed into a master carton. Bar codes are not required

21 PACKAGING BULK IMPORT JEWELRY (CONTINUED) Polybags All polybags must be polyethylene. All polybags under 1.5 mil thickness and over 5x7 inches must contain a suffocation warning: Polybags should be sealed using a self-locking tongue and groove closure. Heat sealed, taped, or stapled polybags are unacceptable. Tied polybags are unacceptable. All polybags must be the appropriate minimum size for the product they contain, but no smaller than 1-3/4 x 2-1/4. Tarnish Prevention Anti-tarnish strips are required in polybags containing individual selling unit for tarnishable metals as required in the Jewelry Standards Manual. Anti-tarnish strips are available from Intercept, , Packaging must not contain any sulfur and/or chlorine. Individual Selling Unit Packaging Each individual selling unit must be packaged separately. Any printed material, such as warranty cards or instructions, should be packaged in a box to prevent damage, clearly labeled with the SKU number that it is intended to be used with, and the quantity. Do not place a SKU label on the polybag containing the individual jewelry item. The polybags for a given SKU should be of the same size, material and thickness

22 PACKAGING BULK IMPORT JEWELRY (CONTINUED) Rings Rings may be packaged in foam pads or in individual self-sealing polybags. Do not mix different HSN SKUs (sizes, colors) on a foam pad. The foam pad should be placed in a large self-sealing polybag so that the design of the ring is visible when viewing the foam pad through the polybag, and the polybag labeled with the HSN SKU number. If using anti-tarnish, a small strip should be used. Ring Count Each foam pad should maintain a consistent ring count throughout the Purchase Order. A pad that is partially filled, comprised of the remaining balance, may be required. If a partially filled pad is necessary, there should be only one partially filled pad per HSN SKU. Larger Rings Although foam pads contain 15 slots, larger rings may need to be staggered in the foam pad slots to prevent the rings from touching each other. A pattern using 9 rings per foam pad is usually sufficient. See the following figure. Ring Sets If rings are sold as a set, each ring must be packaged in an individual self-sealing polybag. All of the bags comprising a ring set may either be nested within a single polybag, or all of the bags may be nested in a polybag containing one (1) of the individual rings. (Bag-in-a-Bag) Please see the following figure Illustrated Packaging Guidelines Earrings. Pendants Without Chains, Pins, Charms, Key Chains, Money Clips Pendants without chains, pins, charms, key chains, and money clips should be packaged in individual polybags. Pendants With Chains, Necklaces, Bracelets, Anklets Pendants must be attached to the chain. A polybag may be used to contain the pendant, with the complete item placed in a larger polybag that houses both the pendant and chain in such manner that the chain will not scratch or tangle. The clasp end of any pendant with chain, necklace, bracelet, or anklet should extend just beyond the zip-lock seal so that the item does not fall to the bottom of the bag and scratch or tangle. Chains should be clasped; bracelets should be unclasped and lay flat

23 PACKAGING BULK IMPORT JEWELRY (CONTINUED) Earrings Earrings should be packaged to prevent damage and scuffing, as pictured in the two suggestions below. Pairs of earrings should be packaged as a "bag in a bag". One earring is placed in an individual polybag. The polybag is then placed in another polybag that houses both the first bag and the second earring, as pictured below. Pairs of earrings should be packaged in a single compartmentalized polybag with to separate the two earrings, as below. Sets A "set" is a group of two or more pieces of jewelry sold to the customer as one saleable unit. A set may include a combination of jewelry types or multiples of the same type of jewelry. To protect against scratching and scuffing, none of the individual jewelry pieces in a set should be able to touch metal on metal. It is permissible to use the bag in a bag method, by packing all but one of the pieces in individual polybags of the same size, material, and thickness. The final piece should be inside the larger outer polybag that contains all of the pieces. The polybag(s) must be sealed using a self-locking tongue and groove closure. Sets shipped in polybags must have one master polybag, and cannot be separate, stapled, taped, tied or sewn together. Watches Watches should be packaged in individual self-sealing polybags or in bubble-out poly bags

24 PACKAGING BULK IMPORT JEWELRY (CONTINUED) Inner Pack Requirements All individual salable units packed in a poly bag must be packed into an inner pack. An inner pack can be a larger poly bag or a carton. The inner pack must be labeled with the SKU number and quantity. Inner Pack Follow the product specific instructions above for each individual SKU jewelry item or tray of rings. Each individual selling unit must be packaged separately. Do not place a SKU label on the polybag containing the individual jewelry item. The polybags for a given SKU should be of the same size, material and thickness. Following the item lines on your PO, group individual items by color and/or size variant, placing the individually poly-bagged items into a larger polybag. Label the polybag with the SKU and applicable color and/or size variant and quantity. Continue grouping like items until completed. Place the labeled like-grouped variants into a larger polybag labeled with the SKU and applicable color and/or size variant and quantity

25 PACKAGING BULK IMPORT JEWELRY (CONTINUED) Inner Pack Requirements (continued) Continue until the entire parent item number is completed Place the labeled like-grouped variants into a larger polybag or carton labeled with the SKU and applicable color and/or size variants and quantity

26 CONTAINER LOADING PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: SHIPPING (IMPORT) Container Loading Loading your containers in an organized way is crucial to ensuring that the right amount of units are distributed to the correct Fulfillment Center after the ship calls the destination port. This requires developing a strategic loading plan before you start putting your cartons into the containers. Product type and carton strength must be adequate to prevent damage to the product, and the size/weight of the product is appropriate for personnel to safely handle/stack within the trailer or container. Proper container loading and utilization is the responsibility of the shipping the product. If your PO volume consists of full containers, you must load the master cartons into the HSN containers by: Which Fulfillment Center the products will be delivered to HSN PO Number HSN SKU Number NOTE: If your PO volume consists of less-than-container load (LCL), you must deliver freight to our Origin Forwarder s consolidated freight station. The Forwarder then loads the freight into containers according to HSN s load requirements. And, proper container loading and utilization is the responsibility of the shipping the product. The below images show acceptable container loading -184-

27 CONTAINER LOADING (CONTINUED) Showroom Samples SKUs allocated to HSN s Showroom warehouse must be tail-loaded in the appropriate container as follows: Jewelry Not Applicable Apparel & Accessories tail-loaded on the back of the container shipping to the Roanoke warehouse All Others tail-loaded on the back of the container shipping to the Fontana warehouse For more information on packaging and labeling your showroom samples for shipment, please refer to the Product Samples and Labeling sections of this manual