International Trade Please note this sections applies to all Foot Locker Private Label First Cost Vendors Only On the following pages you will find Foot Locker s updated standards for deliveries where Foot Locker is the importer of record. We encourage you to read all instructions thoroughly and follow them. If for some reason you cannot comply, please contact the Vendor Relations Department immediately to avoid penalties. If you have any questions regarding the contents, please call or email the Vendor Relations Department Protection of labels, Design and Trademarks Foot Locker has a reputation for selling the finest in quality apparel. We take seriously the proprietery naturs of our desings as well as our identifying labels. We therefore must insist that all providers not only supply quality merchandise, but that they also protect all of our designs and identiying marks. To ensure adequate protection, Foot Locker requires that you: Manufacture or supply all items pursuant to our quality standards. Do not place any other label on our designed merchandise without our approval. Do not place our label on any merchandise without our approval. Do not resell any product with our labels without our prior approval or removall of all such marks and labels. This includes cancelled product, overstocks, defictives and irregulars. Closely guard all label stock, price tags or any identifying tags, and neither distribute nor sell them to any third party. Agree not to use, copy, reproduce or disclose to any other person any design or business information except upon the written instructions of Foot Locker. Agree not to assist, permit or otherwise take of allow any action that could have an adverse effect any rights Foot Locker may have in trademarks, copyrights, etc. If for any reason you cannot comly with the preceding sections, you must contact Foot Locker immediately. Vendor Standards Manual 10-1 February 2011
General Information All purchase orders must indicate F for foreign orders; the appropriate type to be considered for importation into Europe. Each purchase order number has several components as noted below: Example: XX-XXXXXXX-XX - The first two (2) digits refer to the open to buy month - The next seven (7) digits refer to the actual order # - The next two (2) digits designate the division - All documents and booking requests must reflect the full purchase order number Each SKU number has several components as noted below: Example: XX-XXXXX-X-XX - The first two (2) digits designate the department number - The next five (5) digits refer to the Stock Keeping Unit (SKU) number - The next digit is a system generated check digit - The next two (2) digits designate a Width/Color code - All documents and booking requests must reflect the full SKU number Agent field in the purchase order is only for agents that source product on behalf of Foot Locker based on instructions and specifications given by the buyer. - It is not a field used to indicate vendors or factories. - If the agent is a Buying agent, the payment is made separately from payment to the vendor for the merchandise under the terms of a separate agreement, and is not part of the dutiable value. - If the agent is a Selling agent, the payment is part of the dutiable value and should not be made separately from merchandise payment. Ticketing - Contacts for international ticketing are listed in Section 3 - Merchandise Labeling Requirements. - Tickets or labels may not be placed over, or obstruct the country of origin marking. Marking - The instructions noted in Section 6 Carton Packing, Packaging, Labeling must be followed accordingly. - The country of origin marking is required on all outer cartons. - Failure to properly mark cartons will result in chargebacks for all charges incurred by Foot Locker as per the chargeback matrix included in this manual. Vendor Standards Manual 10-2 February 2011
- The instructions noted in Section 3 Merchandise Labeling Requirements, for Merchandise Labeling must be followed accordingly. Documentation requirements No later than the time of booking, the vendor must fax or mail the following documents to the SCM Department (31-485-550701) for review and verification: - Commercial Invoice - Packing list - Certificate of Compliance - Inspection Certificate - Copy of Visa or Visa application (if required) - Any other required documents Each commercial document must be complete and accurate and reflect the full purchase order number and a full SKU number - The commercial invoice must clearly indicate the name and address of the factory and seller (if different from the factory) and the items covered by the invoice must be clearly described. - Any discounts, rebates, assists, royalties, or commissions must be declared on the commercial invoice. The notation should include the name of the party to whom these payments are made and, in the case of royalties/assists, the amount must be reflected. - Invoice requirements are reflected in the Commercial Invoices section contained herein. Original Documents must be submitted to the consolidator no later than noted in the following matrix - If the documents are surrendered later than the time allowed, the consolidator/forwarder is entitled to an additional charge from the shipper for courier fees and special handling. - The cargo receipt will be issued on the day of presentation of documents and the date will be used to determine if the shipment is late for the purpose of letter of credit. - Back-dating of the cargo receipt is not allowed. - Documents surrendered late to the consolidator will result in a chargeback, per the chargeback matrix included in this manual. Vendor Standards Manual 10-3 February 2011
Documents are required to be presented no later than noted below Origin Bangladesh Brunei Cambodia China Hong Kong Indonesia Korea Macau Malaysia Pakistan Portugal Singapore Taiwan Thailand Turkey Vietnam Documents Required Ten (10) days from Actual Date of Departure Five(5) Days after Date of Departure Five(5) Days after Date of Departure Five (5) Days after Vessel Sailed Two (2) Days after Date of Departure Three (3) Days after Date of Departure Two (2) Days after Date of Departure Container inspection CY/CFS or CY/CY shipments It is recommended to verify the physical integrity of the containr structure prior to stuffing, to include the reliability of the locking mechanisms of the doors. We recommend to do the 7-point Container Inspection Process: 1. Outside/Undercarriage (before entering facility) 2. Inside/Outside doors 3. Right side 4. Left side 5. Front Wall 6. Ceiling/Roof 7. Floor (Inside) Vendor Standards Manual 10-4 February 2011
7-Point Container Inspection Forwarders Cargo Receipt (FCR) / House Airwaybill (HAWB) - Is the primary transport document used for payment purposes. - Will be issued once all required documents and cargo have been surrendered to consolidator/forwarder and all charges due consolidator/forwarder have been settled. Note: consolidator/forwarder is not under any obligation to extend credit to any vendor/agent. The bill of lading is not a negotiating document, and is not to be submitted for payment negotiation unless agreed to in advance or if required by a letter of credit All consignments must be made as follows: Foot Locker Europe B.V. - No other consignment is acceptable. - The consignment must read as above with a care of (c/o) notation and the ESC address. Commercial Invoices - An invoice must state in accordance with purchase order terms and conditions and include the following: Vendor Standards Manual 10-5 February 2011
A.) Invoice in English B.) Shipper/Exporter A Name, address, vendor or factory number F G C.) Consignee B H Name, address of I purchaser D.) Forwarding agents C J Consolidator forwarder K name and address L E.) Notify party D Broker, name and address F.) Invoice number E G.) Date M H.) Country of Origin I.) FOB point J.) Terms of payment K.) Air/Ocean port of embarkation (loading) L.) Final Destination M.) Seller (other than shipper) name and address N O P Q R S N.) Quantity (in appropriate weights and measures) O.) Purchase order number P.) SKU number (include style number) Q.) Description R.) Unit cost (and currency) T U V S.) Extended cost (include any discounts, rebates, assists, royalties, commissions, packing, labor, etc.) T.) Net weight U.) Net net weight V.) Gross weight Vendor Standards Manual 10-6 February 2011
Packing List A packing list itemizes the goods in each individual package and indicates the type of package and is used by the shipper or forwarding agent to determine the total shipment weight and volume as well as to verify that the correct cargo is being shipped. See example below All terms are FOB Port of Loading or FOB Consolidator s warehouse. Terms other than FOB must have written authorization from the SCM Department. Vendor Standards Manual 10-7 February 2011
A foreign Order is deemed late if shipment not tendered to the FOB Port of Export on or before Ship Complete date as reflected on the purchase order or all documents as required are not executed in a timely manner which would prevent the shipment from sailing on the scheduled vessel. Title and risk of loss transfers to Foot Locker when the cargo and documents are surrendered to the designated consolidator/forwarder. All shipments must be booked through the designated forwarder/consolidator. Please contact the SCM Department for specific instructions. The SCM Department must approve any exceptions to routing. Shipment by an unauthorized consolidator, forwarder, or carrier will result in a chargeback, per the chargeback matrix included in this manual. Bookings must be made in advance (10-14 days prior to delivery) through the designated consolidator s office according to local practice and procedures. - The consolidator/forwarder will request approval from SCM department by forwarding the booking form and sailing schedule. SCM department will reject any booking that pertains to a cancelled order or in cases where the delivery to them will not be made within the order s shipping window. - Bookings must be revised if the volume/quantity of the original booking changes. Failure to revise a booking to the consolidator/forwarder will result in a chargeback, per the chargeback matrix included in this manual. Vendor is responsible for all origin charges including, but not limited to CFS, handling, and terminal charges. All requests for changes to routing or terms for carriage must be made at least 10 days prior to the start ship date to the SCM department for written approval. Cut-off times for consolidation will be enforced. Check with the specified consolidator s office in advance if a late gate is needed. Late Delivery: If cargo is delivered late (outside the ship windows) and does not make the designated vessel s departure, routing may be changed to air with additional charges at the shipper s expense if the revised vessel departure will result in the goods arriving late at the service center. The buyer reserves the right to cancel the order if the goods are delivered to the consolidator after the ship end date on the purchase order - If cargo is late and the buyer has not cancelled the order, the FOB price will be reduced to accommodate the additional cost of air transportation. The FOB price reduction MUST happen prior to exportation and the commercial documents MUST be amended accordingly. - Please contact the SCM department for the revised FOB price. Vendor Standards Manual 10-8 February 2011
Factory loads will only be allowed on a case by case basis and must be approved by the designated consolidator/forwarder subject to the following minimums: 20 22 CBMS 40 55 CBMS 40HC 65 CBMS - Containers loaded with less than these minimums without prior approval from the SCM Dept. will result in a chargeback for the difference based on the prevailing CFS cost/cbm from the country from which the shipment was exported. - A container load plan must be submitted to the consolidator listing the location of all purchases orders within the container along with other required documents. - Purchase orders and Invoices should not be split between containers Documents must be submitted to the consolidator as per the guidelines on page 3 of this section. Definition of Late Shipments for Foreign Orders: Foreign Orders: A Foreign order is deemed late if shipment not tendered to the named place on or before the Ship Complete date as reflected on the purchase order or all documents as required are not executed in a timely manner which would prevent time Customs clearance or prevent the shipment from sailing on the scheduled vessel. A one-percent (1%) a day (to a maximum of ten percent (10%) of F.O.B. price per order will be imposed for missing the original ship window. In addition, shipments ten (10) days after the original Ship Complete date will be subjected to a discount or markdown allowance. In addition, Foot Locker Europe will also have the right to require the vendor to air freight the goods with the vendor paying the air/sea difference or negotiate an F.O.B. reduction to reimburse Foot Locker Europe for the additional cost of air freight. Vendor must use Foot Locker Europe approved carriers, F.O.B. reduction will be calculated using current air and ocean rates. Vendor Standards Manual 10-9 February 2011
PLEASE NOTE: Foot Locker Europe reserves the right to cancel the purchase order without notice if Delivery of Merchandise has not been completed prior to Cancel Date. Additional Evaluation/Inspection Costs Factory Evaluation Costs: If a new factory fails the initial factory evaluation performed by Foot Locker Inc. or an existing factory fails an evaluation performed by Foot Locker Inc. and that failure results in the need for an additional evaluation that would not have been necessary if the factory had passed, the vendor will be responsible for all costs incurred as a result of that additional evaluation. Costs will include 150 a day plus travel related expenses. Inspection Costs: If the merchandise fails an in-line or final inspection and as a consequence additional inspections are required, the vendor will be responsible for all costs incurred as a result of the additional inspection(s). Costs will include 150 a day plus all travel related expenses. Invoicing The following information must be included on each paper invoice to ensure that your invoices are paid on a timely basis: Vendor s name, remittance address and Bank details If invoice is factored: Factor s name, remittance address and bank details Invoice to be made out to Foot Locker Europe B.V. Purchase order number Do not combine multiple purchase orders on an invoice Invoice date, this date must not be earlier than the shipment date Total cartons shipped and CMR number The payment terms SKU number with the following itemized for each sku o Description o Unit of measure, invoice unit of measure must be the same as the purchase order unit of measure o Quantity shipped o Color and size o Unit cost for the stated unit of measure in agreed currency o Extended item cost in agreed currency Vendor Standards Manual 10-10 February 2011
Total merchandise costs, excluding other charges and credits On multi page invoices indicate total cost on last page Send only one original invoice Hand written changes, duplicate/carbon copies are not acceptable All form feed perforations must be removed and invoices grouped by purchase order All original invoices and credit memos are to be mailed to: Foot Locker Europe B.V. Attention: Accounts payable P.O Box 309 4130 EH Vianen the Netherlands The invoices should never be sent with merchandise or to alternate addresses. Any changes pertaining to Remit address, start, change or discontinuance of a Factor arrangement, or changes in the Vendor s name must be sent in writing to the above address. Any questions or concerns about account status should also be sent in writing to the same address. Any instance requiring our Accounts Payable Department to deviate from the normal flow of handling to research and correct your billing to complete payment, payment terms will be extended to include the period of time to resolve the discrepancy. Documentation flow: One complete set of documents must be submitted to Foot Locker Sourcing, Inc. Hong Kong for Inspection Certificate (IC) release. For all shipments with origin Pakistan documents must be send to ACSM IC will be released back to vendor within 3 days Vendor must send one full set of original shipping documents + one full set of copies to Foot Locker European Service Center, to the attn of Marc Buitendijk Vendor must send one full set of invoices, including original IC to Foot Locker Europe Accounts Payable Department Vendor Standards Manual 10-11 February 2011
Payment Terms and Procedure. Payment terms = Net 30 days o Condition: Receipt of invoices and original IC by FLE Accounts Payable Department. No payment will be made without the invoice and IC received by the FLE Accounts Payable Department. In this case payment will only take place after receipt of the shipment in the ESC in Heijen Netherlands Summary of required documents for Foot Locker Europe: Custom Clearance: Commercial Invoice Packing List Original Certificate of Origin (textiles) Original Export License (if applicable) To qualify for reduction on duties GSP form A A.TR1 for Turkey Origin Required for Foot Locker Europe Original Bill of Lading for ocean shipments Container breakdown (if applicable) Air Waybill for air shipments Wearing Detail Sheet Certificate of Compliance Wire Transfer form Inspection Certificate Vendor Standards Manual 10-12 February 2011