Our Violation Chargebacks are designed to recover inaccurate orders, freight, administrative and labor expenses associated with non-compliance of these guidelines. Our goal is to partner with our vendors in order to find reasonable methods and solutions for the efficient handling of goods throughout the supply chain. The following charges will be assessed on a per occurrence basis. If corrective actions have been taken and communicated to us in writing within 90 days of the chargeback, charges may be subject to reduction or dismissal at AKIRAs discretion (excludes freight charges or repeat offenses). Charges will be deducted from invoice payments. Repeated violations will be addressed in writing and may be assessed higher violation charges. Chargeback codes are listed below with the associated fee.
Vendor chargebacks and/or warnings will be generated by our AP/Finance team. Chargebacks will be issued for internal damage related to insufficient packaging and Vendor-related quality concerns. AKIRA may increase the amount of a chargeback in the event of a repeat violation which will be communicated beforehand.
All orders must ship no later than the SHIP Date on the Purchase Order. Deliveries that arrive after the SHIP Date to the port without specific authorization from the Buyer, will be subject to a penalty of 2% per day charge (10% per week) or cancellation of the order. Backorders that are not confirmed or communicated with your Buyer will also result in a fee stated below.
CHARGEBACK VIOLATIONS AND FEES
| CHARGEBACK TYPE | REASON | REASON CODE | AMOUNT |
| TRANSPORTATION | |||
| SHIPPED TO INCORRECT LOCATION | Merchandise shipped to an incorrect location | TR-001 | $500 + freight difference |
| SHIPPED BY INCORRECT CARRIER | Shipped by non-designated freight carrier | TR-002 | $250 + freight difference |
| FAILURE TO PROVIDE QUALITY PALLET | Poor pallet quality / improperly palletized freight / Incorrect carton or pallet label | TR-003 | $20 per pallet in violation or $2 per carton |
| SHIPMENT TIMING | |||
| INADEQUATE EXTENSION COMMUNICATION | Vendors need to alert the Buyers 30 days before the SD if an extension is needed. | SD-001 | $250 per PO |
| EARLY TO SHIP | Early shipment, pickup date on carrier prior to start ship date of PO without Buyer confirmation | SD-002 | $500 per PO OR shipment refusal |
| LATE TO SHIP | Handover must be met by the start ship stated on our Purchase Orders. One day late without communication will incur a fine + for every day late after that, you will incur additional fees. | SD-003 | 2% per day charge (10% per week) |
| LATE TO BOARD VESSEL | Orders must board to the vessel on the date that is communicated and confirmed by our broker. | SD-004 | $1000 per PO |
| CARTONS LEFT BEHIND | Any carton left out of a container. | SD-005 | $100 per carton OR refusal of forgotten goods |
| MERCHANDISE SHIPPING ERRORS | |||
| QTY IS MORE THAN ORDERED | Quantity of items shipped for SKU is more than -/+5% ordered. | OU-001 | 10% of PO cost ($150 min charge) |
| QTY IS LESS THAN ORDERED | Quantity of items shipped for SKU is less than -/+5% ordered. | OU-002 | 10% of PO cost ($150 min charge) |
| ITEM SUBSTITUTION | Items that are sent in place of a style. | OU-003 | AKIRA will keep sub qty free of charge or returned on Vendor’s Account |
| UNAUTHORIZED BACK ORDER OR SECOND SHIP | The only exception for a back order is if we place an intention flow REORDER. All units of an order must be shipped together. | OU-004 | $250 + freight charges |
| RECEIVING MERCHANDISE | |||
| INACCURATE TICKET | Inaccurate retail price, color, or ticket type. Incorrectly placed. Wrong UPC ticket. UPC not scanning. | PPT-001 | 5% of PO+ hourly wage for labor it takes to change |
| MISSING TICKET | Missing retail price tag and/or sticker attached to merchandise. This includes partially ticketed goods. | PPT-002 | 5% of PO+ hourly wage for labor it takes to change |
| LABELS NOT CHANGED | For private label vendors this included any garment labels or hang tags that do not read AKIRA | PPT-003 | 5% of PO+ hourly wage for labor it takes to change |
| MISSING SENSORS | Missing sensor. This includes partially sensored goods. | PPT-004 | 5% of PO+ hourly wage for labor it takes to change |
| BOXES INCORRECTLY PACKED | Goods must be packed correctly. This includes correct carton marks that match back to the contents inside. And/or incorrect packing of mixed sizes, styles, colors. | PPT-005 | <5% of PO+ hourly wage for labor it takes to change/td> |
| PO PACKING VIOLATION | Any PO that is not packed correctly. This includes but is not limited to: not packed by size and/or without polybag, not the accurate size breakdown, too much of one size to compensate for missing sizes, counts that do not match the PL. | PPT-006 | 5% of PO+ hourly wage for labor it takes to change |
| CARTON MARKS VIOLATION | |||
| PO # NOT ON CARTON | PO # must be on the carton mark print out. | BOX-001 | $250 per PO or $50 per carton |
| VENDOR NAME AND ADDRESS ON CARDBOARD BOX or TAPE | Vendor Company info CANNOT be printed on the cardboard box or tape. The only contact information should be on the carton mark print out. | BOX-002 | $250 per PO or $50 per carton |
| MISSING CARTON MARKS THAT WERE REQUESTED | The label is missing that Buyers would have advised IE: DOORBUSTER or RESORT STICKER label on carton. This allows us to place pallets in the correct ZONES at our WHS | ZONE-001 | $30 per carton without a label |
| ECOM / BACKSTOCK POLYBAGS | Missing PLU barcode on polybag. Or missing individual polybags. | PLU-001 | $250 per PO |
| BOX WEIGHT | Individual boxes should not exceed 50 lbs. | BOX-001 | $200 per box |
| INVOICING | |||
| FAILURE TO PROVIDE INVOICE | Failure to provide invoice(s) within 48 hours of Purchase Order. This includes the deposit invoice(s) as well as the remaining balance invoice(s) at the time of handover. Failure to send to [email protected] within 48 hours. | INV-001 | $100 per Invoice |
| FAILURE TO PROVIDE THE CORRECT SENDING REQUIREMENTS OF THE INVOICE | AKIRA requires ONE invoice / excel per shipment. | INV-002 | $100 per invoice |
| NON-CONSOLIDATED INVOICE | Multiple invoices for one shipment | INV-003 | $10 per PO |
| INVOICE CORRECTION | Incorrect color, price, units, etc | INV-004 | $20 per PO |
| FAILURE TO PROVIDE B/L | Failure to provide B/L at the time of handover | INV-005 | $500 fee + any storage fees incurred by AKIRA |
| INACCURATE B/L | Incorrect value, weight, number of cartons, etc | INV-006 | $250 fee + any storage fees incurred by AKIRA |
| FAILURE TO COMMUNICATE OVER / UNDER SHIPMENTS | Failure to provide communication for any over / under shipments. [email protected] + your Buyer need to confirm any changes BEFORE shipment | INV-007 | $100 on anything not communicated + AKIRA keeps overages free of charge |
| QUALITY ASSURANCE | |||
| INADEQUATE HANDLING | Merchandise not securely sealed. No silicone-packets. Not individually polybagged. Polybag too thin. | QC-001 | $250 per PO + full cost per piece damaged |
| CARTON DAMAGE | Any and all types of damage done to the cartons that would affect the merchandise. Wet boxes, bent boxes, flatten boxes, ripped boxes, etc. | QC-002 | $250 per PO + full cost per piece damaged |
| BROKEN MERCHANDISE | Discovered at the processing stage. Rips, stains, odor, broken pieces (gems falling off, missing stones, faulty zippers, missing buttons), damaged shoe boxes, missing items (belt, shoe lace, earring backings, etc). | QC-003 | $250 per PO + full cost per piece damaged |
| FABRIC DAMAGE | Stain, hole, color fasting shedding, mold, wet, etc. | QC-004 | $250 per PO + full cost per piece damaged |
| APPAREL RELATED QC ISSUES | Color variation / fasting, exposed glue, stains, broken zippers, falling rhinestones / gems, seams ripping, holes, broken trims, fit not as confirmed, graphic or words not as confirmed, incorrect grading. | QC-005 | $250 per PO + full cost per piece damaged |
| FOOTWEAR RELATED QC ISSUES | Color variation, stains, glue, stains, warped sole. Fit not as confirmed. Incorrect grading. | QC-006 | $250 per PO + full cost per piece damaged |
| ACCESSORY RELATED QC ISSUES | Missing pairs, color variation, rust, broken parts. | QC-007 | $250 per PO + full cost per piece damaged |
| SAMPLES | |||
| EXTRA ITEMS SENT THAT WERE NOT APPROVED BY VENDOR | Samples that were included in shipment that were not confirmed or approved by Buyer | SMP-001 | $50 PER ITEM NOT APPROVED |
| SAMPLES SENT WITHOUT APPROPRIATE INFORMATION | Any and all types of damage done to the cartons that would affect the merchandise. Wet boxes, bent boxes, flatten boxes, ripped boxes, etc. | SMP-002 | $500 per PO + full cost per piece damaged |
| NOT PROVIDING TOP OR ECOM SHIPPING SAMPLES | One size of small or 1X of each style/color must be packed and marked separately with it’s own Packing Slip for our ECOM photoshoots | SMP-003 | $10 per unit not included + express shipping of samples on vendor account |
| MERCHANDISE | |||
| COPYRIGHT ISSUE | Our Buy team is very diligent in producing original products. We expect the same from our suppliers. You are responsible for any copyright or IP issue AKIRA comes across | MER-001 | $5,000 fee + discussion on fees if further damages occur |
| COMPETITOR ISSUE | No AKIRA designs, products, ideas or information can be shared with competitors. Nothing should ever be found competitors sites as well as websites such as Aliexpress and Alibaba | MER-002 | $5,000 fee + discussion on fees if further damages occur |
Note: AKIRA does not provide photos of non-compliance. Expense Offset Fees, with the exception of transportation fees, have a 60 day (from document date, not payment date) window for inquiry. To view offset fees before payment runs suppliers must contact [email protected].
| Vendor Signature | |
| I hereby certify that I have read and understand the VIOLATION CHARGEBACKS, and am authorized to sign and agree to the terms stated herein on behalf of the company named above. | |
| Signature | X |
| Print Name: | |
| Date: | |