at home & accessories us customs ... - nordstrom supplier

At Home & Accessories US Customs Import Requirements 7/20/10

NPG Supplier Procedures Manual © 2010 Nordstrom, Inc., all rights reserved. CONFIDENTIAL: These documents contain proprietary, trade secret, and confidential information which are the property of Nordstrom, Inc. These documents and their contents may not be

duplicated or disclosed to any other party without express authorization of Nordstrom, Inc. of 23

AT HOME AND ACCESSORIES U.S. CUSTOMS IMPORT REQUIREMENTS




Table of Contents Documents Required for Customs Clearance……………………………………….. pg 3 Documents Required for Trade Preference Programs…………………………….... pg 3 Commercial Invoice Requirements for Accessories..………………………………. pg 4-5

Gloves………….……………………………………………………………….. pg 6 Handbags/Flat Goods………………………………………………………….. pg 7 Hats & Headgear………………………………………………..……………… pg 7-8 Jewelry………………………………………………………………………….. pg 8 Scarves/Shawls/Mufflers………………………………………………………. pg 8 Watches/Clocks……………………………………………………….…………pg 8

Commercial Invoice Requirements for At Home..……………………………………. pg 8-10 Artificial Fur/Faux Fur……………….…………………………………………. pg 10 Candles……………….…………………………………………………………. pg 10 Clocks…………………………………………………………………………….pg 10 Ceramic Ware………………………………………………………………… pg 11 Flatwear/Utensils………………………………………………………………. pg 11 Fur……………...……………………………………………………….……… pg 11 Furniture…...………………………..………………………………….…… pg 11 Glassware…...……………………………………………………...….…… pg 11 Leather…...……………………………………………………………..……… pg 11 Lighting (incl candle holders) …...…………………………………….…… pg 12 Mirrors…...……………………………………………………….……………… pg 12 Rugs & Floor Coverings…...………………………………………………… pg 12 Textile Articles(non wearing apparel) …...………………… ……….………. pg 12 Wooden Boxes…...……………………………………………………….……. pg 13

Other Government Agencies…………………………………………………………… pg 13 Fish & Wildlife (FWS)/CITES………………………………………………….. pg 13 California Prohibitions………………………………………………………….. pg 14 Express Courier Requirements For Shipping FWS Product………………. pg 14-15 Food & Drug Administration………………………………………………….. pg 16 Environmental Protection Agency……………………………………………. pg 17 Animal & Plant Heath Inspection Service(APHIS)…………………………. pg 17

Proof of Production……………………………………………………………………… pg 17-19 Proof of Production (QIZ)………………………………………………………… pg 20-21 Incoterms…………………………………………………………………………………. pg 22 Document Exception Analysis Report(DEAR)…………………………………………pg 23




Documents Required for Customs Clearance

Only the documents listed below should be turned over to Nordstrom’s forwarder at origin. Questions about documentation should be referred to the Nordstrom Customs Compliance department prior to shipping. Email questions to: mailto:[email protected] The following documents are required for ALL shipments:

Commercial Invoice (Please refer to invoice description requirements as outlined in the Invoice Descriptions section)

Bill of Lading (Ocean Bill of Lading, Waybill, Cargo Receipt, or air waybill) Packing List (DC CARTON BREAKDOWN - SUMMARY VERSION ONLY. For instructions on

printing summary version please contact your EDI Service Provider or [email protected] )

The following additional documents are required as applicable:

Original CITES permit Fabric Details Sheet Nordstrom IFI (Interim Footwear Invoice)

Trade Preference Programs

If an article is eligible for reduced or duty free treatment under a trade preference program, additional documents will be required:

ATPDEA (Andean Trade Promotion and Drug Eradication Act) - ATPDEA Textile Certificate of Origin Israel (US-Israel Free Trade) - Certificate of Origin Form A NAFTA (North American Free Trade Agreement) - Certificate of Origin (CF434) or Certificate of

Eligibility SFTA (US-Singapore Free Trade Agreement - Original Preferential Certificate of Origin / Certificate of

Eligibility QIZ (Jordan-Israel Qualifying Industrial Zone) - Certificate of Origin




Standard Commercial Invoice Requirements

Must be written in English

Invoice Date

Name of Purchaser (Nordstrom)

Name and address of Seller

Name and address of actual factory. If the invoicing party is the factory, this must be clearly stated on

the invoice, for example “Factory is the invoicing party”

Country of Origin For OPA/PPE production state the origin conferring factory

Name of Buying Agent or Selling Agent

Purchase Order Number(s), Department Number(s), Letter of Credit number (if applicable)

Nordstrom Style Number (VPN) from Purchase Order.

Description of the style as detailed below under Additional Invoice Requirements

Unit of Measure (yards, meters, dozens, etc.)

Quantity shipped

By purchase order By color if the first cost is different By fabrication if the first cost or duty classification is different

Net, and Gross weight of the shipment

Net Weight = Garment plus packaging (pins, issues, hangtags) Gross Weight = Net Weight + Export Packaging

Shipping Marks and carton count (per Corporate Logistics Routing Guide)

Purchase price in the currency of the purchase with currency type specified.

This must be shown either as the FOB/Ex Factory price OR a breakdown by cut-make-trim and fabric as per CMT Procedures section of this manual

INCO Terms of Sale (FOB, CFR, etc)

All discounts, and reasons for the discounts

All charges (packing, declaration fees, etc.) including fabric if owned by Nordstrom, or other items supplied by Nordstrom free of charge

United States Port of Entry to which merchandise is destined




ADDITIONAL INVOICE REQUIREMENTS FOR ACCESSORIES

A complete and accurate description is crucial for the correct classification and assessment of duties on imported articles. While there are general descriptive requirements for all types of merchandise, specific product categories will have their own unique requirements. The following sections will outline basic and specific requirements to help ensure adequate descriptions for entry purposes. This information is by no means exhaustive and additional information may still be required.

The item MUST be described on the commercial invoice in sufficient detail for identification and classification. For the sake of clarity and understanding avoid the use of abbreviated or shortened words in the description of the item.

Avoid the use of descriptive words that may inadvertently invoke the regulations of additional U.S. government agencies other than Customs and Border Protection (CBP). For instance, use of the word ‘shell’ or ‘feather’ or ‘fur’ in a description will imply that the article contains U.S. Fish & Wildlife (F&W) regulated articles. If the article does not contain actual F&W regulated product then avoid the use of this type of descriptive word or use phrases similar to ‘imitation shell’, ‘artificial feathers’ or ‘faux fur’. If the item contains embroidery in the image of a shell or a feather, then simply state “….with embroidery.

If you have questions regarding the proper description of an article to be imported into the United States please contact the Nordstrom Product Group Customs Compliance Department (see Customs Compliance Contacts).

General Descriptive Requirements

In addition to the Standard Commercial Invoice Requirements the invoice description for all items must:

State what the item is- o Provide a commercial and common name for the item o Provide a detailed description, complete with dimensions

Be specific and avoid generic descriptions and phases such as ‘decoration’ or ‘textile made-ups’

o If the item consists of multiple separate pieces it may be considered a ‘set’ for classification purposes

Describe each component piece of the set Provide a value for each component piece of the set (Note that the total value of the

individual pieces must equal the value of the ‘set’)

State the component material(s) of the item- o Be specific. Do not use general terms such as ‘metal’ or ‘textile’. Use instead more specific

descriptive terms such as ‘brass’, ‘stainless steel’, ‘gold’, ‘knitted cotton’, or ‘woven silk’. o If the item is of mixed components:

List and identify placement of all component materials Value and weight breakdowns for component materials may be required




State the component material(s) of the item- (continued)

o For Textile Articles: State the fiber content of shell fabric by weight State whether ‘knitted or crocheted’ or ‘woven’ If of blended fibers, state the percentage by weight, of each fiber in decreasing order

by weight (must equal 100%) If of multiple fabrics of differing fiber content list fiber content and placement for each

fabric (each fabric must equal 100%, total for item will exceed 100%) If ‘metallic’ fibers are present content percentage must be stated regardless of

amount o For Leather Articles indicate the source animal of the leather

If other than domesticated species of cow, pig, sheep or goat provide information required for U.S. Fish & Wildlife (see Other Government Agencies)

o For Fur Articles indicate the source animal of the fur Provide information required for U.S. Fish & Wildlife (see Other Government

Agencies)

o For Artificial Fur or Faux Fur indicate method of construction of the artificial/faux fur Indicate if fibers are glued or sewn onto base material Indicate if artificial fur ‘effect’ is obtain from knitting or weaving process

o Call out any and all other component materials of fish or animal origin (e.g., shell, bone)

Item may require review by U.S. Fish & Wildlife Service (see Other Government Agencies)

Commodity Specific Descriptive Requirements (arranged alphabetically by product category)

Apparel Items

o See “Apparel Customs Import Requirements” in Customs Compliance Apparel Section.

Gloves o State the gender of the wear o State whether or not gloves are constructed with fourchettes* o State if knit, woven or leather

If leather: State type of leather (i.e. cowhide, kidskin, etc.) State if gloves are seamed State if gloves are lined

If of knit construction: State fiber content by percentage State if gloves are ‘knit to shape’ or ‘cut and sew’

If of woven construction: State fiber content by percentage

* Fourchettes---a narrow strip of material that joins the front and back parts of the fingers of

gloves.




Handbags/Flat goods

o Describe the item o State the component material of the outer surface

If textile, see general requirements “For Textile Articles” on page 5. If cotton, ramie, hemp or linen indicate if of pile or tufted construction State component material of any lining separately

o State if the outer surface is sheeting of plastic o State if the item does or does not contain any braided material

Hats and Headgear

o Identify the intended wearer (e.g., ladies, boys, babies) o State Fiber content and whether knit or woven o Provide completed “Invoice Detail for Headwear” (See Customs Compliance Forms)

DEFINITIONS FOR HEADWEAR (Extracted from HTSUA CH.65 explanatory notes) Blocked - Hats and headwear are normally blocked to shape, i.e., the crowns are formed to shape (usually oval) and size by manipulation on a wooden block. Blocked also covers headwear produced by working felt hoods or plateaux on a pedal press, made up from hoods or plateaux by milliners, or hat foundations covered with felt “chemises” or handkerchief felts. These blocked hoods are then normally submitted to further operations such as:

Pressing and ironing of the crown to give it a smooth surface and to emphasize, more than has been done in the blocking operation, the line of demarcation between the crown and brim. Pouncing Shaping the brim to the required size and form. Lining and trimming, e.g., by the fitting of head-bands and hat-bands, chinstraps, etc., and in some cases reinforcement of the brim edge.

Braided - Braids are usually obtained by interlacing diagonally yarns, or the monofilament, strip and the like of man-made fibers, but are not limited to that material. In flat braid the threads run diagonally from one edge to the other in a zig-zag or more complex fashion, whereas in tubular braid they run spirally; in both cases half of the threads run in one direction and half in the other and interlace according to a fixed pattern which is usually quite simple. In some braids extra threads may be interlaced along the length of the fabric either to give firmness to the edge, or in any ordered sequence to produce pattern effects. Braid is made on special machines know as braiding or spindle machines. Varieties of braid include lacing, piping, soutache, ornamental cords, braided galloons, etc. Tubular braid may have a textile core. Felt - Felt is usually obtained by superimposing, one on the other, a number of layers of textile fibers; these are then moistened (generally with steam or hot soapy water) and subjected to heavy pressure and a rubbing or beating action. This causes the fibers to interlock and produces sheets of even thickness. Felt is usually produced from wool or other animal hair, or from mixtures of these fibers with other natural fibers (e.g., vegetable fibers, horsehair) or with manmade fibers. Plaited - Plaited headwear is made from strips of any material (particularly straw, reeds, palm fibers, raffia, sisal, strips of paper, strips of plastic or strips of wood. These materials may be




plaited by various methods including: “plaiting” by arranging one set of fibers or strips so that they radiate from the center of the crown and interlacing them with other fibers or strips wound spirally. Additional radial fibers or strips are introduced in the “plaiting” as the distance from the center increases or, by assembling strips (usually not more than 5 cm in width) of any material (e.g., plaited or other strips of felt or other textile fabric, monofilament or plastics), usually by sewing the strips spirally together, starting from the crown, in such a manner that each spiral overlaps the previous one or, by arranging plaits spirally so that the serrated edges intermesh and, assembling them by threading.

Jewelry

o Describe the item (i.e., ring, necklace, earrings, cuff links, etc.) If necklace or neck chain, state if chain is of rope, mixed link or ‘other’ construction.

o Identify all the component materials o Indicate if any metal components are further plated or clad with gold, silver, platinum or other

precious metals

Scarves/Shawls/Mufflers o Indicate if knit or woven and provide fiber content o Indicate dimensions of item and the unit of measurement (inches, centimeters) o If garment is worn as a cape, poncho, ruana or similar ‘garment’ with structural elements

provide additional description as provided for under ‘Apparel Invoice Description’ Watches/Clocks

o Provide completed “Watch or Clock Details” (see Customs Compliance Forms) o Describe the type of timepiece (e.g., watch, alarm clock, wall clock, etc.) o State component material of the case and strap o State type of display: analog or digital o State the number of jewels. If no jewels, indicate ‘0’ jewels. o State the country of origin for the movement AND for the case o Indicate if battery operated and whether or not battery is included o All watches/clocks must be broken down by value into the following:

Case Movement Battery Strap (as appropriate) Presentation boxes (as appropriate)

ADDITIONAL INVOICE REQUIREMENTS FOR NORDSTROM AT HOME

Introduction

A complete and accurate description is crucial for the correct classification and assessment of duties on imported articles. Nordstrom At Home products cover a wide variety of product categories. While there are general descriptive requirements for all types of merchandise, specific product categories will have their own unique requirements. The following sections will outline basic and specific requirements to help ensure adequate descriptions for entry purposes. This information is by no means exhaustive and additional information may still be required.

The item MUST be described on the commercial invoice in sufficient detail for identification and classification. For the sake of clarity and understanding avoid the use of abbreviated or shortened words in the description of the item.




Avoid the use of descriptive words that may inadvertently invoke the regulations of additional U.S. government agencies other than Customs and Border Protection (CBP). For instance, use of the word ‘shell’ or ‘feather’ or ‘fur’ in a description will imply that the article contains U.S. Fish & Wildlife (F&W) regulated articles. If the article does not contain actual F&W regulated product then avoid the use of this type of descriptive word or use phrases similar to ‘imitation shell’, ‘artificial feathers’ or ‘faux fur’.

If the item contains embroidery in the image of a shell or a feather, then simply state “….with embroidery.

If you have questions regarding the proper description of an article to be imported into the United States please contact the Nordstrom Product Group Customs Compliance Department (see Customs Compliance Contacts).

General Descriptive Requirements

In addition to the Standard Commercial Invoice Requirements the invoice description for all items must:

State what the item is- Provide a commercial and common name for the item Provide a detailed description, complete with dimensions

Be specific and avoid generic descriptions and phases such as ‘decoration’ or ‘textile made-ups’

If the item consists of multiple separate pieces it may be considered a ‘set’ for classification purposes

Describe each component piece of the set Provide a value for each component piece of the set (Note that the total value of the

individual pieces must equal the value of the ‘set’)

State the component material(s) of the item- Be specific. Do not use general terms such as ‘metal’, ‘ceramic’ or ‘textile’. Use instead

more specific descriptive terms such as ‘brass’, ‘stainless steel’, ‘porcelain’, ‘earthenware’, ‘knitted cotton’, or woven polyester/wool blend.

If the item is of mixed components: List and identify placement of all component materials Value and weight breakdowns for component materials may be required




General Descriptive Requirements (Continued) State the component material(s) of the item- (continued)

For Textile Articles: State the fiber content of shell fabric by weight State whether ‘knitted or crocheted’ or ‘woven’ If of blended fibers, state the percentage by weight, of each fiber in decreasing order

by weight (must equal 100%) If of multiple fabrics of differing fiber content list fiber content and placement for each

fabric (each fabric must equal 100%, total for item will exceed 100%) Call out any and all component materials of fish or animal origin (e.g., shell, bone, fur,

leather) Item may require review by U.S. Fish & Wildlife Service (see Other Government

Agencies) State the intended use of the item-

Indicate if the item is purely decorative Indicate if the item is intended or could conceivably be used to prepare, serve or hold food or

drink Item may require review by the Food and Drug Administration (see Other

Government Agencies) The common name may state the intended use (e.g., photo frame)

Commodity Specific Descriptive Requirements (arranged alphabetically by product category)

Artificial Fur/Faux Fur

Indicate method of construction of the artificial/faux fur Indicate if fibers are glued or sewn onto base material Indicate if artificial fur ‘effect’ is obtain from knitting or weaving process

Candles

Indicate the country of origin of the wax (possible anti-dumping duties) Indicate if wax is petroleum based or plant based If blended wax state ingredients by percentage in decreasing order Indicate the shape of the candle (taper, pillar, egg, etc.) Indicate whether or not imported with a holder

If imported with holder State whether wax is poured into holder or if candle is separate from holder State component material of the holder Provide component value breakdown for candle and for holder

Clocks

Indicate the type of timepiece (e.g., watch, alarm clock, wall clock, etc.) Indicate if analog or digital Indicate the number of jewels. If no jewels, indicate ‘0’ jewels. Indicate country of origin for the movement AND for the case Indicate if battery operated and whether or not battery is included Provide component value breakdown for movement, case and battery




Commodity Specific Descriptive Requirements (arranged alphabetically by product category) (Continued)

Ceramic Ware

Indicate specific type of ceramic (e.g., porcelain, earthenware, bone china, etc.) Provide maximum diameter, in centimeters, for all plates Provide unit cost of each piece Indicate intended use (possible FDA review)

Flatwear/Utensils (knives, forks, spoons, ladles, cake servers, kitchen tools, bar tools, etc)

Indicate component material If stainless steel, indicate nickel and magnesium content Indicate if component material is coated or plated with precious metal Indicate component material of handle

Indicate the length in centimeters Indicate unit cost If Flatwear/Utensil ‘set’

Provide all of the above for each item in the set

Fur Indicate the source animal Provide information required for U.S. Fish & Wildlife (see Other Government Agencies)

Furniture

Country of origin (possible anti-dumping duties) Indicate the kind of furniture (e.g., bench, chairs, ottoman, dining tables, end tables, etc.) Indicate the component material of the frame

Indicate whether or not the frame is completely covered with another materials (i.e., upholstered)

Indicate the type of furniture (e.g., kitchen, bedroom, office, etc.) Indicate if intended for indoor or outdoor use

Glassware

Indicate lead (PbO) content, even if 0% Indicate whether or not cut or engraved Indicate intended use (e.g., drinking glasses, tableware, decorative)

If drinking glasses, indicate whether or not stemware Provide unit cost for each piece

Leather

Indicate the source animal If other than domesticated species of cow, pig, sheep or goat provide information

required for U.S. Fish & Wildlife (see Other Government Agencies)





Lighting, including candle holders Electrical

Indicate type of lighting (e.g., table lamp, floor lamp, chandelier, swag, etc.) Indicate the component material(s)

Replacement bulbs Indicate what the bulb is a replacement for Provide both wattage and voltage for all replacement light bulbs

Non-Electrical, including Candle Holders (see Candles) Indicate component materials Indicate if candle holder is complete WITH candle (if so, see Candles)

Mirrors

Indicate component material of reflective component (e.g., glass, base metal, plastic, etc.) Indicate whether or not framed Provide dimensions of reflective surface area, not including the frame

Rugs and Floor Coverings

Indicate construction Indicate if knotted

If so, indicate if hand knotted Indicate if woven

If so, indicate if hand or power loomed Indicate if tufted or flocked Indicate if of pile construction

If so, indicate if pile inserted and knotted during weaving or knitting

Textile Articles Blankets and Throws

Indicate Dimensions (length x width) Bed Linens—the following applies to each item whether or not it is offered as part of a set

Indicate if printed or not printed Indicate if napped or not napped State whether or not the item “contains ANY embroidery, lace, braid, edging,

trimming, piping or appliqué work” Provide unit cost of each piece

Table Linens Indicate the type of weave (e.g., damask, twill, plain, satin, etc.)

Toilet Linens Indicate the type of towel (e.g., dish, bath, hand, etc.) Indicate the type of construction (e.g., terry, pile, tufted, plain, etc.) Indicate if jacquard figured

Pillow and Cushions Indicate whether or not the item is shipped/imported with stuffing

If not shipped with stuffing then the item is not classified as a pillow Quilts

Indicate if item “contains ANY embroidery, lace, braid, edging, trimming, piping exceeding 6.35 mm or appliqué work”





Wooden Boxes Indicate intended use Indicate if specially designed to fit specific items Indicate if lined with textile materials

In addition to the Customs and Border Protection Service, there are other agencies with jurisdiction over certain types of merchandise. The cargo could be reviewed, inspected or sampled by each pertinent bureau. Failure to comply with these regulatory agencies can result in penalties. The penalties can range from a warning to full seizure of the importation and possible criminal proceedings against the importer.

FISH AND WILDLIFE SERVICE (F&W)

This agency has jurisdiction over any item that is manufactured from any plant or animal (mammal, fish or reptile), which might be considered an endangered species. Even if you import an item from a species that is not endangered, the item must clear Fish & Wildlife Review prior to CBP clearance.

-Types of Animals Subject to Fish & Wildlife Review Common items subject to U.S. Fish & Wildlife Service review:

• Buttons of shell or horn. • Handbags of alligator/caiman/crocodile, camel, snake, eel. • Belts of alligator/caiman/crocodile, lizard. • Fur Coats or Coats with fur trim of beaver, mink, fox. • Shoes of snake, camel, eel. • Garments with buffalo horn.

-Types of Animals Not Subject to Fish & Wildlife Review Domesticated animals are not subject to review by the U.S. Fish and Wildlife Service:

• Certain mammals listed as domesticated- Alpaca, camel, cat, cattle, dog, European rabbit, ferret, goat, horse, llama, pig, sheep, water buffalo

• Certain birds listed as domesticated- chickens, peafowl, turkey, barnyard mallards.

-Commercial Invoice Requirements for Fish & Wildlife Products On the commercial invoice for any item made of, or containing parts of, any animal product, the following details must be included on the invoice:

• Common and scientific name (genus and species) of animal • Animal country of origin • Source of the animal. (i.e. Farm raised, from the wild, etc) • Total # of pieces of animal on garment (i.e. # of buttons) • Total value of the product in U.S. dollars.

-CITES (The Convention on International Trade in Endangered Species) If the item is from an endangered species but is still allowed to be shipped under the Convention on International Trade in Endangered Species (CITES) a original CITES Certificate is required to submit an entry for clearance. A CITES certificate is issued by the country of production acknowledging that they are aware of the species of the entered product and are allowing exportation and includes. It is required that for any shipment that needs to be shipped with a CITES certificate, the certificate must be obtained prior to export.




-Conventional Broker Requirements(Expeditors Intl)

Tender original validated CITES Certificate to freight forwarder with commercial documents Keep a copy of the validated CITES Certificate for your records

-Express Courier Requirements(FedEx) Tender original validated CITES Certificate to FedEx and instruct FedEx to attach the validated

CITES Certificate to the outside of the package Keep a copy of the validated CITES for your records

-California Prohibitions The state of California has additional restrictions on certain animal products that would otherwise be allowed to be imported and sold in the rest of the United States. A list of animal products unable to be sold in California is listed in the below excerpt from California's penal code, however two of the most popular animal products included in this list are python and alligator/crocodile.

“It is unlawful to import into this state for commercial purposes, to possess with intent to sell, or to sell within the state, the dead body, or any part or product thereof, of any alligator(effective Jan. 1, 2015), crocodile(effective Jan. 1, 2015), polar bear, leopard, ocelot, tiger, cheetah, jaguar, sable antelope, wolf ( Canis lupus), zebra, whale, cobra, python, sea turtle, colobus monkey, kangaroo, vicuna, sea otter, free-roaming feral horse, dolphin or porpoise (Delphinidae), Spanish lynx, elephant, or any creature protected under federal law.

To recap, with regards to the above listed animals, it is illegal to: 1) Sell the items in Californian stores. 2) Advertise the items in catalogs or mailers sent to California 3) Transfer the items from any store to a store or customer in California.

-Express Courier Requirements For Shipping Fish & Wildlife Product • Pre alert advising FedEx Airway Bill# must be emailed to:

1) [email protected] 2) [email protected] 3) [email protected]

• The correct FedEx Account# must be used (please contact your planner, logistics or Customs

Compliance for account number information). • In the Commodity Description section of the airway bill, the description must start with “FWS” plus the

garment description in English. For example, “FWS cotton knit shirt”




If you have any concerns regarding the admissibility of the product you are selling to Nordstrom Product Group, please contact the Customs Compliance Department for assistance. A link to the Fish and Wildlife website (including CITES) can be found on the Web Links section of this manual.

FOOD AND DRUG ADMINISTRATION (FDA)

The FDA monitors any importation related to, either directly or indirectly, commodities having any relation to human well-being. This includes, but is not limited to: drugs, foods, beverages, medical devices (i.e. sunglasses), utensils, food containers and cookware including cups, bowls, glasses and plates. The FDA adheres to a very strict interpretation of these requirements under the Federal Food, Drug and Cosmetic Act

At Home/Accessories Customs Import Requirements 8/19/2010

NPG Supplier Procedures Manual © 2010 Nordstrom, Inc., all rights reserved. CONFIDENTIAL: These documents contain proprietary, trade secret, and confidential information which are the property of Nordstrom, Inc. These documents and their contents may not be duplicated or disclosed to any other party without express authorization of Nordstrom, Inc.

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ENVIRONMENTAL PROTECTION AGENCY (EPA)

TSCA – Toxic Substance Control Act. The EPA requires a document to be submitted stating that certain items do not contain “toxic substances”. A copy of this statement can be found in the “Forms” section of this manual. A link to the EPA website describing what “toxic substances are prohibited form entry can be located on the Web Links section of this manual. If you have an item that is prohibited or restricted, please contact the Nordstrom Customs Compliance Department.

ANIMAL AND PLANT HEALTH INSPECTION SERVICE (APHIS)

APHIS is a division of the US Department of Agriculture. APHIS monitors any importation related directly or indirectly to commodities that may impact US plant and animal well-being.

Beginning September 16, 2005, the U.S Department of Agriculture Animal and Plant Health Inspection Service (APHIS) will require that all wood packaging material (WPM) imported into the U.S must either be heat treated or fumigated with methyl bromide, and be properly marked as so treated. This measure is in accordance with ISPM 15 (International Standards for Phytosanitary Measures), an internationally established standard for treatment of WPM.

WPM exempt from this regulation include: . WPM made entirely of wood pieces less than 6 mm thick in any dimension. . Manufactured wood materials such as plywood, particleboard, oriented strand board,

whiskey barrels, wood packaging that serves as gift boxes, and crafting associated with antiquities, such as art pieces or vintage wines.

To comply, please be sure that each piece of WPM used in your shipment is properly treated and contains a mark on each side certifying such treatment before departing origin.

Example of the WPM mark:

XX represents the ISO country code. 000 represents the unique number assigned by the national plant protection organization. YY represents either HT for heat treatment or MB for methyl bromide fumigation

NORDSTROM’S POLICY ON ILLEGAL TRANSSHIPPING

As stated in the Nordstrom Partnership Guidelines, partners will comply with applicable US Customs importing laws and, in particular, will establish and maintain programs and documentation to support country of origin production verification, to avoid illegal transshipping.

Should a factory be inspected by a U.S. Verification team or be under investigation by local authorities for transshipping violations, the Nordstrom Customs Compliance department should be alerted regardless of the outcome.

It is our expectation that all suppliers doing business with Nordstrom are fully aware of the issues and consequences surrounding illegal transshipments. In the event Customs and Border



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Protection has a question with regards to the country of origin declared on the documentation for a Nordstrom placed order, Nordstrom shall request from the supplier all documentation necessary to substantiate the country of origin claim. This includes, but is not limited to, production records, timecards, inspection certificates, bills of lading, OPA records, electrical bills and any other documentation that will assist us in proving the country of origin.

PROOF OF PRODUCTION When Customs and Border Protection is not satisfied with the country of origin being claimed by the commercial documentation (particularly the Country of Origin declaration), they can request records/documents from Nordstrom proving the origin of a shipment. This power for Customs is defined in their trade bulletin notices TBT-97-049 & TBT-98-018. The basic documentation we will always require if requested by Customs and Border Protection is listed below. Depending on the shipment, additional documentation may be required to back up our origin claim. As Customs’ time limits are short for us to provide this documentation to Customs, we will require that the below documentation be faxed (and sent via courier) within 5 days of agent/supplier receipt of the request. The below documentation should be available on every shipment regardless of single or multiple country origin. Please number each page clearly and provide a description for each document via e-mail or separate letter. Please translate documents into English for review by Customs and Border Protection A. TIME LINE 1) Clear and detailed time lime prepared by the factory outlining the dates and details as

outlined below. Time line should include the event (i.e. fabric purchase, cut parts export HK to CN, etc.), and the date it occurred in chronological order.

B. RAW MATERIALS (Fabrics, Yarn, Trimmings, Labels) 1) Invoices from the fabric/yarn/trimmings supplier for the raw materials used in questioned

shipment 2) Shipping documents from the raw material supplier to production factory 3) Clearance documentation of raw materials into country of production (Government Import

License). 4) Additional documentation on labels, other materials incorporated on a case-by-case basis. C. PRODUCTION RECORDS 1) Internal Factory Production Order 2) Cutting records (tickets) if from fabric/knitting records if from yarn - should be able to verify

quantity, colors & sizes of order 3) List number and types of machinery available at production factory/List number of machines

used in production 4) Time cards of employees involved in Production Order with highlights of times employee

worked on the order 5) All assembly records. These should include records maintained on the factory floor

describing the operations performed, employees performing the operations, and the dates the operations were performed.

6) Proof of factory operation during time of production (e.g. electric bills)



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7) If production in multiple countries OPA (Outward Processing Arrangement) documentation. 8) HKTD Production Notification of cut and sewn garments 9) All shipping details documenting movement of fabric/knit panels/assembled and

unassembled garments/finished garments between countries (must be able to trace by production number/PO, including Customs clearance records, detailed truck manifests)

10) 1 - 6 above for production in second country. 11) Proof of export from country of export 12) Sketch of the unassembled panels (if applicable) D. SUB-CONTRACTOR RECORDS 1) All of the same records as in C/Production Records for sub-contractor. E. INSPECTION CERTIFICATES 1) In-line inspection report 2) Final inspection report



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PROOF OF PRODUCTION – NAFTA, AGOA, ATPDEA, ISRAEL, QUALIFYING INDUSTRIAL ZONE (QIZ), INSULAR POSSESSIONS, US-SINGAPORE FREE TRADE AGREEMENT Every supplier and agent working with the production of product eligible for duty free treatment or reduced duty under a Trade Preference agreement should maintain a procedure manual detailing the regulations of the Trade Preference agreement and documenting their internal procedures that prove the product is eligible for the benefits of the program. When Customs and Border Protection is not satisfied with the country of origin being claimed by the commercial documentation (particularly the textile declaration), they can request records/documents from Nordstrom proving the origin of a shipment. This authority for Customs is defined in Customs trade bulletin notices TBT-97-049 & TBT-98-018. The basic documentation we will always require if requested by Customs and Border Protection is listed below. Depending on the shipment, additional documentation may be required to back up our origin claim. As Customs time limits are short for us to provide this documentation to Customs, we will require that the below documentation be faxed (and sent via courier) within 5 days of agent/supplier receipt of the request.

The below documentation should be readily available on every shipment regardless of single or multiple country origin.

Please number each page clearly and provide a description for each document via e-mail or separate letter. Please translate documents into English for review by Customs and Border Protection. A. TIME LINE 1) Clear and detailed time line prepared by the factory outlining the dates and details as outlined

below. Time line should include all processes that occurred from raw material purchase to export to the U.S., and the date it occurred in chronological order.

B. RAW MATERIALS (Fabrics, Yarn, Trimmings, Labels) 1) Invoices from the fabric/yarn supplier for the raw materials used in Purchase Order. 2) Invoices for the thread used to assemble the garments and backup country of origin

documentation may be required if duty free treatment in Trade Agreement 3) Shipping documents from the raw material supplier to production factory 4) Clearance documentation of raw materials into country of production (i.e. Government Import

License). 5) Affidavits from raw material supplier certifying raw materials are of “NAFTA”, “AGOA”,

“ATPDEA”, or Israeli origin. 6) Provide a detailed list of all findings and trimmings used in the garment and their origin and

value. Examples: Sewing thread, hooks and eyes, buttons, “bow buds”, decorative lace, trim, elastic strips, zippers (including zipper tapes), labels and other similar products. Additional documentation on labels and other findings/trimmings incorporated into the garment may be requested on a case-by-case basis.

C. PRODUCTION RECORDS 1) Internal Factory Production Order 2) Cutting records (tickets) if from fabric - knitting records if from yarn - should be able to verify

quantity, colors & sizes of order 3) List number and types of machinery available at production factory/List number of machines

used in production 4) Production records for sewing with breakdown of each process done.



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5) Time cards of employees involved in Production Order with highlights of times employee worked on the order.

6) All assembly records. These should include records maintained on the factory floor describing the operations performed, employees performing the operations, and the dates the operations were performed

7) Proof of factory operation during time of production (e.g. electric bills) 8) All shipping details documenting movement of fabric/knit panels/assembled and

unassembled garments/finished garments between countries (must be able to trace by production number/PO, including Customs clearance records, detailed truck manifests)

9) 1 - 7 above for production in second country. 10) Proof of export from country of export. 11) Sketch of the unassembled panels (if applicable) D. SUB-CONTRACTOR RECORDS 1) All of the same records as in C/Production Records for sub-contractor. E. INSPECTION CERTIFICATES 1) In-line inspection report 2) Final inspection report



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Incoterms

It is important to understand the delivery terms listed on the purchase order. These terms determine where Nordstrom takes legal ownership of the product and the responsibilities of the supplier. The following terms will be followed by delivery point, which identifies the named place, port or destination.

Example: FOB-Istanbul

EXW - EX WORKS named place The seller’s responsibility is to make the goods available at their premises in a condition prepared for export. The seller is not responsible for loading the goods in the vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risk involved in bringing the goods from there to the desired destination.

FOB - FREE ON BOARD VESSEL The goods are placed on board a ship by the seller at a port of shipment named in the purchase order. The risk of loss or damage to the goods is transferred from the seller to the buyer when the goods pass the ship’s rail during loading. This term only applies to transportation by sea or inland waterway only.

FCA - FREE CARRIER FCA is based on the same principle as FOB except that the seller fulfills their obligation when goods are delivered into the custody of the carrier at the named point. If no precise point can be mentioned at the time of the contract of sale, the parties should refer to the place or range where the carrier should take goods into his charge. The risk of the loss or damage to the goods is transferred from the seller to the buyer at that time and not at the ship’s rail. "Carrier" means a person by whom or in whose name a contract of carriage by road, rail, air, sea or a combination of modes has been made.

CIF - COST, INSURANCE AND FREIGHT The seller must pay the costs for freight necessary to bring the goods to the named destination, but the risk of loss or damage, as well as any cost increases, is transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. The seller has to procure marine insurance against the risk of loss or damage to the goods during carriage. The seller pays the insurance premium.

DDP- DELIVERED DUTY PAID The seller must pay the costs for freight necessary to bring the goods to the named place of destination along with all the costs and risks involved in bringing the good thereto including, where applicable, any customs duties, taxes, customs formalities, and the payment of formalities for import in the country of destination.



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DEAR (DOCUMENT EXCEPTION ANALYSIS REPORT)

This report will be sent to your agent or to you directly via email. This running report will be updated with the previous month’s issues related to document discrepancies that delayed customs release. The discrepancies have been resolved at the time of customs entry, but are summarized in this report for your review.

After you have reviewed the report, confirm your acknowledgement of the DEAR Report and after discussing with the factories please fill in the remediation notes in the “Comments” column.

Month

Year Manufacturer Name per

RMS

Discrepancy Code

PO Number

Brand Fault

Details Comment

s

Sep 200

8 ABC Factory

OTH-OTH, other issue

12345678

CASLON C/O not listed on invoice

Per factory,

this was a typo.

<<Filled out by

supplier

Jan 200

9 123

Interntaional

MFR-INV, mfr.

name/address not stated

23456789

BP Factory not

listed on the invoice.

Spoke to factory

and reminded them to put this

info on the invoice.

<<Filled out by

supplier

Mar 200

9 XYZ MFR

WGT-INV, weight

discrepancy

13456789

MENS/KIDS

Net kgs not provided

on commercial

docs. Received revised

documents.

Spoke to factory. They

advised that they retrained shipping

clerk.

<<Filled out by

supplier