VENDOR MANUAL FOR BOOK VENDORS

VENDOR MANUAL

FOR

BOOK VENDORS

VERSION 8.0

V 8.0 November 2021 1

TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................................ 6

INDIGO VENDOR CODE OF CONDUCT .................................................................................................... 7

DIVERSITY, EQUITY & INCLUSION ............................................................................................................ 11

INDIGO OPEN-DOOR POLICY ................................................................................................................ 12

SECTION 1 – VENDOR ONBOARDING ................................................................................................... 13

VENDOR REGISTRATION ........................................................................................................................ 13

1.1 Terms of Trade ................................................................................................................................. 13

1.2 Lead Times ....................................................................................................................................... 13

1.3 Social Compliance Program .......................................................................................................... 14

1.3.1 Social Compliance Policy Statement .................................................................................... 14

1.3.2 Vendor Code of Conduct ....................................................................................................... 14

SECTION 2 – EDI EXPECTATIONS & ONBOARDING ............................................................................... 15

2.1 INTRODUCTION ................................................................................................................................ 15

2.2 E-Commerce Standards ................................................................................................................. 15

2.3 EDI Transaction Set .......................................................................................................................... 16

2.4 Indigo’s EDI Service Provider .......................................................................................................... 16

2.5 EDI Onboarding with Indigo ........................................................................................................... 16

2.6 EDI Enabled Vendors – Testing & Certification .............................................................................. 17

2.7 EDI Transmissions ............................................................................................................................. 17

2.8 GS1-128 Label ................................................................................................................................. 18

2.9 Vendor EDI Contacts ....................................................................................................................... 18

2.10 Indigo EDI Contacts ...................................................................................................................... 18

SECTION 3 – ARTICLE SET-UP ................................................................................................................. 20

ARTICLE SET-UP ....................................................................................................................................... 20

3.1 Bibliographic Data Submission .................................................................................................. 20

3.2 Rights Changes ............................................................................................................................ 20

ISBN Labels ................................................................................................................................... 21

SECTION 4 – PURCHASE ORDERS, RETURNS PROCESS & INVOICE PAYMENTS ..................................... 22

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PURCHASE ORDER PROCESS ................................................................................................................. 22

4.1 Purchase Order Detail ................................................................................................................. 22

4.2 Purchase Order Dates ................................................................................................................. 23

4.3 Purchase Order Line Items .......................................................................................................... 23

4.4 Purchase Order Freight/INCO Terms ......................................................................................... 23

4.5 Purchase Order Acknowledgment ............................................................................................ 24

4.6 Purchase Order Change ............................................................................................................. 25

4.7 Backorder Policy ......................................................................................................................... 25

4.8 Flow Through Purchase Orders ................................................................................................... 26

4.9 Cross-Dock .................................................................................................................................. 26

PURCHASE ORDER LEAD-TIMES & RETURNS .......................................................................................... 26

4.10 PO Delivery Lead-Times ............................................................................................................ 26

4.10.1 Replenishment Orders ......................................................................................................... 26

4.11 Rejected Returns Process ......................................................................................................... 27

INVOICE PAYMENTS & BILLINGS ........................................................................................................... 28

4.12 Invoices ...................................................................................................................................... 28

4.13 Invoice Payment ....................................................................................................................... 28

4.14 Billing for Vendor Discounts, Allowances, Rebates, Compliance Chargebacks ................ 29

4.14.1 Invoice & Billing Inquiries .................................................................................................... 29

SECTION 5 – SUPPLY CHAIN EXECUTION & VENDOR COMPLIANCE .................................................... 30

VENDOR PERFORMANCE MANAGEMENT PROGRAM (VPM) ................................................................ 30

THE PERFECT ORDER GUIDELINE .............................................................................................................. 30

5.1 On-Time Delivery/Shipment/ASN Delivery (“On Time”) ............................................................. 30

5.1.1 On-Time Delivery (OTD) - to DC & Store locations .............................................................. 30

5.1.2 On-Time Shipment (OTS) – (For Collect Freight) .................................................................. 31

5.1.3 On-Time Booking – (For Collect Freight) .............................................................................. 32

5.1.4 On-Time ASN (Advance Shipping Notice) ........................................................................... 32

5.1.5 Additional Delivery Requirements ........................................................................................ 33

5.2 Fill Rate - (“Complete”) ................................................................................................................. 34

5.3 Accurate Documentation (“Accurate”) ...................................................................................... 34

5.3.1 ASN Accuracy ........................................................................................................................ 34

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5.3.2 Bill of Lading Accuracy .......................................................................................................... 35

5.3.3 Packing Slip Accuracy .......................................................................................................... 36

5.3.4 Invoice Accuracy .................................................................................................................. 36

5.4 In Good Condition (Shipment Quality) ........................................................................................ 37

5.4.1 Case & Pallet Labelling Guideline ........................................................................................ 37

5.4.2 Master/Case & Pallet Labelling Requirements for EDI Vendors ......................................... 37

5.4.3 Master/Case Labelling Requirements for Non-EDI Vendors ............................................... 44

5.4.4 Inner Case/Pack Labelling Requirements (EDI & Non-EDI Vendors) ................................. 46

5.4.5 Labelling for Specialty Products- EDI & Non-EDI Vendors .................................................. 47

5.4.6 Labelling Compliance To Canadian Laws & Regulations ................................................... 47

5.5 Packing Guideline .......................................................................................................................... 49

5.5.1 Inner/Outer Case Pack Requirements ................................................................................. 49

5.5.2 Carton Specific Packaging Requirements ........................................................................... 50

5.5.3 Inner Packaging Material Requirements ............................................................................. 52

5.5.4 Pallet Specific Packaging Requirements ............................................................................. 53

5.5.5 Packaging for Specialty Products ........................................................................................ 54

5.5.6 Additional Packaging Requirements ................................................................................... 55

5.5.7 Price Sticker Specification & Placement Guideline for Non-Book Merchandise ............. 55

5.5.8 Damage-Free Shipment/Product ......................................................................................... 55

PRODUCT COMPLIANCE AND QUALITY ................................................................................................. 56

5.6 Product Quality Policies (Applicable to non-Book Merchandise) ............................................ 56

5.6.1 Product Compliance Policy .................................................................................................. 56

5.6.2 Product Incident Management ............................................................................................ 56

5.6.3 Product Withdrawal or Recall ................................................................................................ 57

5.6.4 Bilingual Packaging and Labelling Requirements .............................................................. 57

5.6.5 Transit Testing (Package Testing) .......................................................................................... 57

SECTION 6 VENDOR COMPLIANCE PROGRAM ................................................................................... 58

Summary ................................................................................................................................................. 58

6.1 Compliance Chargebacks ........................................................................................................... 58

6.2 Measuring Non-Compliance & Notifications ............................................................................... 63

6.3 Quarantine ....................................................................................................................................... 63

6.4 Compliance Charge Dispute Process ........................................................................................... 64

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SECTION 7 – SHIPPING GUIDELINES ....................................................................................................... 65

7.1 Freight Terms & Responsibilities ..................................................................................................... 66

7.2 Inbound Shipment Requirements ................................................................................................. 67

7.2.1 Packing Slip ............................................................................................................................ 67

7.2.2 Bill of Lading ............................................................................................................................ 67

7.2.3 Surrender of Orginal Bill of Lading for International Shipments .......................................... 68

7.2.4 Physical Presentation Requirments ....................................................................................... 69

7.3 Routing Instructions ........................................................................................................................ 69

7.3.1 For Indigo Controlled-Freight (where applicable) .............................................................. 69

7.3.2 Booking a Delivery Appointment (at each DC) .................................................................. 69

7.3.3 Domestic Shipments Procedure (originating within Canada only) ................................... 71

7.3.4 International Shipments Procedure & Additional Requirements ........................................ 72

7.3.5 SOLAS Requirements & VGA Declaration ............................................................................ 72

7.3.6 Original Customs Documents ............................................................................................... 74

7.3.7 Canadian Customs Clearance Document Requirements ................................................. 74

7.3.8 Canada Customs Invoice/Commercial Invoice ................................................................. 77

7.3.9 From “A” Certificate of Origin ............................................................................................... 77

7.3.10 NAFTA .................................................................................................................................... 78

7.3.11 NAFTA Certificate of Origin ................................................................................................... 78

7.3.12 NAFTA Low Value Declaration .............................................................................................. 79

SECTION 8 - CONTACTS ......................................................................................................................... 80

SECTION 9 - APPENDICES ....................................................................................................................... 83

V 8.0 November 2021 5

CHANGE LOG

Section

status

Guideline

Diversity, Equity &

Inclusion

new

Diversity, Equity & Inclusion

Indigo Open-Door

Hotline

new

Indigo Open-Door Hotline

Vendor Registration

updated

Changes to vendor registration process

1.1 Terms of Trade

updated

New upload process of COT during vendor registration

1.2 Lead Times

updated

New upload process of Lead Time by povince during vendor registration

1.3 Social

Compliance

Program

updated

Updated section

1.3.2. Vendor Code

of Conduct

updated

Indigo VENDOR CODE OF CONDUCT- updated with Cotton clause under

Forced Labour

Section 2 - EDI

Expectations &

Onboarding

updated

EDI Service Provider update, including introduction of InterTrade’s

ecCatalogue for product data; new table identifying EDI transactions &

frequency expectations; updated EDI contacts

Section 3 - Article

Set-up

updated

Updates to Bibliographic Data Submission section

Section 4 - Purchase

Order Process

updated

Updates to sections 4.2, 4.5, 4.6

Section 4.11

updated

Updates to Rejected Returns Process

5.5 Packing

Guideline

updated

New references to Online DC & Drop Ship requirements (where applicable)

5.6 Product Quality

Policies

new

Added for Non-Book Merchandise (where applicable)

6.4 Compliance

Charge Dispute

Process

updated

Updated process – all disputes to be initiated on the Compliance portal

Section 8 - Contacts

updated

Updates to Contacts

Section 9 -

APPENDICES

updated

Updates to:

• Customs Tariff – Schedule: updated link provided

V 8.0 November 2021 6

INTRODUCTION

Our goal at Indigo Books & Music Inc. is to delight our customers with a unique shopping

experience while meeting the needs of our employees, shareholders and other stakeholders

including our vendor community.

The purpose of this document is to communicate to our vendors Indigo’s supply chain

requirements in pursuit of this goal. We are committed to being a world class supply chain

organization focused on delivering the right product to the right place at the right time at the right

cost without defect. We want to have a mutually rewarding relationship with our vendors; this

manual is designed to help both organizations realize this.

This document will guide you through Indigo’s expectations for each of the following:

• Vendor Code of Conduct

• Vendor Registration

• EDI Set-up

• Article/Product Data Set-up

• Purchase Orders

• Supply Chain Execution & Vendor Compliance

• Shipping Guidelines

We expect that the requirements contained in this document are communicated both within your

organization and to your suppliers and sub-contractors that produce or provide materials or

services used in the manufacture of goods sold to Indigo, to ensure that they too are in

compliance, where applicable.

We believe our expectations are fair and support the goals of being mutually rewarding for each

organization. We thank you in advance for doing your best to meet these expectations.

The most updated version of this Vendor Manual is also available at indigo.ca in the About

Indigo/Vendors & Authors section.

V 8.0 November 2021 7

INDIGO VENDOR CODE OF CONDUCT

Indigo Books & Music Inc. (together with its subsidiaries, “Indigo”) is committed to doing

business in a legal, ethical, socially responsible and sustainable manner. In turn, Indigo expects

its suppliers, agents, service providers, and contractors (collectively, “Vendors”) to embrace

this commitment to integrity by complying with the standards detailed in this Vendor Code of

Conduct (the “Code”) and communicating these standards to their workers and suppliers. We

insist that our Vendors and their suppliers uphold the highest ethical standards in their

workplace, business practices, conduct and policies. In addition to adhering to this Code,

Vendors must always comply and stay updated with local laws and regulations in each of the

countries in which they do business. Where there is a differing standard between this Code

and the local legal requirements, Vendors must comply with the higher standard.

This Code is based on the United Nations Universal Declaration of Human Rights, International

Labor Organization Conventions and Recommendations and other internationally accepted

standards.

GUIDING PRINCIPLES

Vendors’ business and labour practices must comply with the laws and regulations of the

countries in which they conduct business. Furthermore, Vendors must comply with the

requirements of this Code, even when this Code exceeds the requirements of those

applicable laws and regulations.

LABOUR PRACTICES

Child Labour

Indigo will not tolerate the use of child labour. Vendors, and any subcontractors they use, shall

not employ in any of their facilities any person under 15 years of age. Where the minimum age

for work or mandatory schooling is higher than 15 years of age by local law (where work is

performed), such stipulated higher age applies in that locality. Workplace apprenticeship

programs must comply with all applicable local laws and this Code. ILO Conventions 79, 182

apply.

Forced Labour

Vendors shall not engage in or support forced or compulsory labour, including slave, prison,

trafficked, indentured, or bonded labour in any of their facilities or their subcontractor facilities.

Workers must not be coerced to work (regular or overtime hours) by means of violence or

intimidation, and must have sought work on their own free will and have the freedom to leave

work or terminate their employment with reasonable notice. Neither the Vendor nor any entity

supplying labour to the Vendor shall withhold any part of any personnel’s salary, benefits,

property or documents in order to force such personnel to continue working for the

organization. Workers must be given clear contracts in a language understood by the worker.

ILO Conventions 29 and 105 apply.

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Due to forced and underage labour in the Uzbekistan and Turkmenistan cotton regions, all

vendors supplying cotton or products containing cotton (“Cotton Products”) to Indigo must

certify that any Cotton Products sold to Indigo do not contain and are not sourced from cotton

that originates from the countries of Uzbekistan and Turkmenistan.

Discrimination/Human Rights

Vendors shall not engage in or support discrimination in hiring, remuneration, access to

training, promotion, termination, discipline, retirement or any other term or condition of work

(other than legitimate occupational requirements allowed by law) on the basis of race, colour,

national or territorial or social origin, ethnic origin, citizenship, religion, faith, political opinion,

gender, sexual orientation, age, marital status, same-sex partnership status, family status,

disability, or any other condition that could give rise to discrimination. ILO Conventions 100,

111 and 156 apply.

Disciplinary Practices

Vendors shall treat all personnel with dignity and respect. Vendors shall not engage in or

tolerate the use of corporal punishment or other forms of mental or physical coercion, or verbal

abuse of their workers.

Harassment & Abuse

Vendor shall not abuse or harass workers, whether physical, psychological or sexual. No harsh

or inhumane treatment will not be tolerated.

Wages and Benefits

Vendors must compensate all workers with wages, including overtime, that meet or exceed

minimum legal standards in the countries in which they conduct business, or by their collective

agreements, whichever is greater. The wage paid shall be sufficient to cover the basic needs

of workers and their families. Illegal deductions from wages including deductions as a

disciplinary measure are prohibited. Wages must be disbursed in a convenient and timely

manner to workers with the detail of pay provided on a pay slip or similar documentation.

Vendors must also provide all legally mandated benefits. ILO Conventions 26, 95 and 131

apply.

Working Hours

Vendors shall comply with the applicable local laws of working hours of the countries in which

they conduct business, or with industry standards and relevant ILO conventions, whichever

standards are more stringent. In either case, a worker’s weekly hours must not exceed 48 hours

or 60 hours with overtime, on a regular basis. Workers must be permitted to receive at least

one (1) day (24 hours) of rest following each six (6) consecutive days of work. Overtime must

be voluntary and vendor must compensate workers for overtime at the legal premium rate.

ILO Conventions 1 and 14 apply.

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Freedom of Association/ Worker Representation

Vendor shall respect the right of workers to form or join at their own discretion an association

or organization dedicated to protecting and promoting worker interests. Vendor shall not

interfere with or inhibit the workers’ pursuit of freedom of association and collective

bargaining, where legally permitted. Where restricted by law, workers must be allowed to

pursue parallel means to freely associate for bargaining purposes. Vendors must provide an

open and anonymous communication channel for workers to report grievances. ILO

Conventions 87, 98, 135, 154 apply.

HEALTH & SAFETY

Vendors shall provide a safe and healthy working environment in structurally sound buildings

consistent with all applicable local building, fire, electrical and chemical safety laws and

regulations. Vendors shall also protect workers by ensuring they are not exploited, nor exposed

to dangerous, unsafe or hazardous conditions. Vendors shall adopt required measures and

implement adequate systems to prevent, detect and avoid potential health and safety

incidents and occupational injury or illness arising out of, associated with or occurring in the

course of work. Vendors must guarantee that workers are provided regular training on health

and safety requirements. Factories must provide good ventilation, access to clean drinking

water, sufficient and clean toilets and washing facilities, first aid supplies, and personal

protective equipment. Where housing or dormitories are provided for workers, they must be

separate from production areas and must be kept safe, healthy and sanitary. ILO Convention

155 applies.

ENVIRONMENTAL PROTECTION

Vendors must comply with all applicable, local environmental laws and regulations, and shall

commit to using practices to protect the environment by preventing contaminations due to

hazardous materials or other dangerous substances resulting from production and operations

within their facilities. Vendors shall maintain processes and standards for waste management,

emissions, wastewater treatment, handling and disposing of chemical and hazardous

substances, and for reporting any environmental accidents that may occur during operations.

ETHICAL CONDUCT

Vendors shall not engage in, or allow, any unethical practices such as fraud, bribery,

corruption, or any matters that may pose a conflict of interest when dealing with Indigo or any

worker, agent, public official, or an individual in the private sector. Vendors shall provide a

mechanism or means by which workers may report anonymous workplace grievances and

shall protect worker whistleblower confidentiality and prohibit retaliation.

SUB-CONTRACTING

Vendors must ensure that all permitted subcontractors comply with the requirements of this

Code.

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MANAGEMENT SYSTEMS

Vendors must develop and maintain management systems to implement, monitor and ensure

compliance with this Code. This must include clear processes, policies, documentation,

appointment of staff responsible for implementation, ongoing monitoring, and worker

feedback and participation. In the event of any violation of the Code’s requirements, Vendors

must document and take prompt remedial action. Documentation and records must be

maintained and be readily available upon request.

Indigo is committed to ensuring that our vendors and their suppliers uphold the highest ethical

standards in workplace conditions and labour practices. Our sourcing policies are subject to

change at any time in Indigo’s sole discretion.

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DIVERSITY, EQUITY & INCLUSION

Diversity, Equity and Inclusion are at the heart of what we do at Indigo, we are committed to

providing an assortment that reflects the diversity of our society.

We have joined the 15% pledge to ensure we partner intentionally with even more diverse vendors

to bring our customers a joyful experience.

If you would like more information about our DEI initiatives, please contact diversity@indigo.ca

V 8.0 November 2021 12

INDIGO OPEN-DOOR POLICY

At Indigo, we have a strong and long-standing commitment to doing the right thing, and we have

zero tolerance for unethical conduct. In line with this commitment, we have set up the Indigo

Open Door Hotline as outlined below.

If you wish to report unethical behavior or a possible violation of the Indigo Vendor Code of

Conduct, you are encouraged to work with your primary Indigo contact in resolving your concern.

If that is not possible or appropriate, please use the Indigo Open-Door Hotline.

The Indigo Open Door Hotline is available to external parties to confidentially communicate any

Code of Conduct concerns or violations with respect to Indigo employees and the Vendors that

Indigo conducts business with. Any person who believes that a violation of the Indigo Vendor

Code of Conduct or Employee Code of Conduct has occurred is asked to report the incident in

confidence as follows:

By phone: 1 (888) 881-3177 (North American toll free)

Or by visiting: www.IndigoOpenDoor.ca (North American & international submissions)

Please refer to the quick video link for an overview on how to make a submission online:

Introducing Indigo Open Door

Indigo will make every effort to investigate all reported violations in a discreet, fair and confidential

manner, and will take appropriate action, as required, to maintain the integrity of its business.

V 8.0 November 2021 13

SECTION 1- VENDOR ONBOARDING

VENDOR REGISTRATION

New vendors will be sent an invitation email to register on the Indigo Vendor Hub (onboarding

portal). Vendors should be prepared to provide the required information on the Registration

Checklist (below) prior to proceeding with registration.

As a part of the Document Upload requirement in the Registration Checklist, Book Vendors must

load the following documents before submitting their registration:

1. Terms of Trade (Class of Trade)

2. Lead Times by province

1.1. TERMS OF TRADE

All terms of trade are negotiated and confirmed via e-mail between Indigo and an authorized

individual at the vendor organization. Once a vendor confirms via reply e-mail their agreement

to the terms of trade, the vendor is required to complete the Indigo Class of Trade Template

available in the Help – Vendor Documents section of the Indigo Vendor Hub and upload it to

their registration.

1.2. LEAD TIMES

Book Vendors are required to complete the Indigo Lead Times Template, also available in the Help

– Vendor Documents section of the Indigo Vendor Hub, and upload it to their registration before

submitting it. The requirement will be to provide Lead time (is days) for each province (region) and

for each of Indigo’s distribution centres.

V 8.0 November 2021 14

1.3. SOCIAL COMPLIANCE PROGRAM

1.3.1. SOCIAL COMPLIANCE POLICY STATEMENT

Our Code of Conduct is the foundation of our social compliance program and will serve as a

guide to achieving social and environmental compliance both within our company and in our

supply chain. While we recognize that laws and standards may differ from one region of the

world to another, we believe that our Code of Conduct outlines a set of fundamental

principles for good corporate citizenship that our business partners should share and

implement.

The social compliance program will direct business partners towards greater compliance with

local and international legal requirements and help them maintain good standing for

continued business with Indigo. Business partners who do not continually meet our standards

or complete corrective actions and steps for long-term remediation will not be considered a

business partner of choice and are at jeopardy to the discontinuation of conducting business

with Indigo.

1.3.2. VENDOR CODE OF CONDUCT

Indigo Books & Music Inc. (together with its subsidiaries, “Indigo”) is committed to doing

business in a legal, ethical, socially responsible, and sustainable manner. In turn, Indigo expects

its vendors to embrace this commitment to integrity by complying with the standards detailed

in this Vendor Code of Conduct (the “Code”) and communicating these standards to their

workers and suppliers. We insist that our Vendors and their suppliers uphold the highest ethical

standards in their workplace, business practices, conduct and policies. In addition to adhering

to this Code, Vendors must always comply and stay updated with local laws and regulations

in each of the countries in which they do business. Where there is a differing standard between

this Code and the local legal requirements, Vendors must comply with the higher standard.

This Code is based on the United Nations Universal Declaration of Human Rights, International

Labor Organization Conventions and Recommendations and other internationally accepted

standards.

(Please refer to the Indigo Code of conduct section at the beginning of this document)

V 8.0 November 2021 15

SECTION 2 - EDI EXPECTATIONS & ONBOARDING

2.1. INTRODUCTION

This is intended to set the Electronic Data Interchange (EDI) expectations Indigo Books & Music

Inc. has of you as a trading partner. Please ensure that you review all sections and share this with

anyone in your company that may need this information.

Vendors must provide Indigo with at least five (5) business days advance written notice of all

Vendor system changes and modifications that could have an adverse effect on Vendor-Indigo

communications of Orders, including Vendor’s EDI connectivity. Vendors will be deemed to have

received any Indigo communications if Vendor fails to provide the required notice of a system

change.

2.2. E-COMMERCE STANDARDS

Indigo expects that all vendors will transact via EDI from the initial onset of our commercial

relationship. There are significant productivity and process visibility gains that are realized through

the use of EDI. Exemptions to this requirement may be granted by Vendor Compliance based on

the following criteria:

• Timing of initial order: temporary exemption (applicable to initial PO only; given EDI

onboarding has been initiated and is in progress)

• Anticipated size of ongoing relationship expected to be less than $25K/year of annual

purchases: permanent exemption

Please note:

• The cost of EDI non-compliance is $150 per non-compliant Purchase Order.

• Bindery shipments are not exempt from our ASN requirement; an ASN must be provided for

all bindery shipments.

BENEFITS OF EDI

• Enhanced order visibility from PO to Invoice

• Accelerated time to market

• Faster order to cash cycle

• Improved data integrity & inventory management (reduce errors)

• Increased automation/eliminate manual processes

• Unlock Drop Ship capability

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2.3. EDI TRANSACTION SET

Indigo believes that the ability to conduct business electronically on these and future documents

is critical to operating effectively with your firm. The documents currently required are:

•

850 Purchase Order (PO)

• 855 Purchase Order Acknowledgment (POA)

• 856 Advance Ship Notice (ASN)

• 810 Invoice

• 860 Purchase Order Change (POC)

• 865 Purchase Order Change Acknowledgment (POCA)

• 832 Price/Sales Catalogue (for Drop Ship vendors only)

• 846 Inventory Advice (for Drop Ship vendors only)

• 997 Functional Acknowledgement

• GS1-128 Label

2.4. INDIGO’S EDI SERVICE PROVIDER

Indigo has partnered with InterTrade to manage the transition of our vendors to EDI with Indigo

Books & Music. Vendors can access program information including EDI specifications on

InterTrade’s Indigo EDI vendor portal.

To access the portal as a generic user, and view Indigo’s specifications, please go to:

https://intertrade.com/indigo/

For Book EDI specs, please go to “Indigo Books & Music Inc. – Trade Books”

2.5. EDI ONBOARDING WITH INDIGO

As part of your onboarding with Indigo, a representative from InterTrade will contact you to initiate

the EDI onboarding process. Vendors can choose one of the following EDI fulfilment solutions:

• Integrated EDI solution (to connect via 3

party provider or in-house EDI); this will require

testing and certification with InterTrade; to register for EDI certification, select “EDI Testing

and Certification”, fill in information and submit.

• InterTrade’s WebEDI solution (Indigo’s preferred web EDI solution for trading partners); this

is a cloud-based option available to vendors with no existing EDI solution; to register for

WEB EDI, select “Register for Web EDI”, fill in information and submit.

Please ensure you identify your preferred solution to Indigo’s EDI Team at [email protected]

V 8.0 November 2021 17

2.6. EDI ENABLED VENDORS – TESTING & CERTIFICATION WITH INTERTRADE

As an existing vendor transacting via EDI with Indigo Books & Music Inc., you will be expected to

interact with InterTrade as existing EDI documents are changed and/or new EDI documents

implemented. You will be notified of any such developments and InterTrade will work directly with

your organization to Test & Certify the new documents as required.

If you are currently using a third-party EDI provider, you are not required to change to InterTrade

services; however, your provider will be required to Test & Certify through InterTrade on new Indigo

Books & Music Inc. documents.

If you are migrating to a new EDI service provider, please advise [email protected] and

[email protected] prior to making this change, with sufficient advanced notice. It is important

to consider whether there are open orders residing with your current EDI service provider; you will

need to ensure that return document flow for any such open orders is managed without

interruption by your new EDI service provider. This process can take 2-3 weeks to be executed

properly.

2.7. EDI TRANSMISSIONS

EDI transactions will flow daily as follows: (note: these are based on hours of operation)

EDI

Transaction

Data

Direction

Frequency

EDI 850

Purchase Order

From

InterTrade

Daily, as required

EDI 855

Purchase Order

Acknowledgement

Intertrade

Within 1-2 business day of receiving the

850 PO (excluding weekends &

holidays)

(For Drop Ship, must be sent within 1

business day of receiving the 850)

EDI 860

(not required

for Drop Ship)

Purchase Order Change

(POC)

From

InterTrade

Daily, as required

EDI 865

(not required for

Drop Ship)

Purchase Order Change

Acknowledgment (POCA)

Intertrade

Daily, as required

EDI 856

ASN

To Intertrade

Daily, immediately

following shipment of an order

(For Drop Ship, must be sent within 2

business days of receiving the 850)

V 8.0 November 2021 18

2.8. GS1-128 LABEL

GS1-128 label format is available through InterTrade. Alternatively, an approved example of a

GS1-128 label can be found in the Label Guidelines section of this Manual.

A GS1-128 Barcode label must be applied to each carton and/or pallet shipped (based on

shipping method); linking the individual carton/pallet to the associated ASN Item/Qty detail, as

set forth in the Label Guideline section of this Guide.

Failure to meet Indigo’s GS1-128 Label guideline requirements will cause your shipment to be

quarantined within Indigo’s Distribution Centres or Stores. A compliance chargeback will also be

applied to any violation of this guideline (please refer to Vendor Compliance Program section for

further detail).

2.9. VENDOR EDI CONTACTS

It is important for vendors to maintain/update their respective EDI contacts as both Indigo and

InterTrade use these contacts for notification of any EDI document failures, issues,

downtime/maintenance notifications or changes to Indigo’s EDI requirements, program, etc… If

the EDI contact person for your company changes, please send the details regarding this new

contact to both support@intertrade.com and EDIsupport@indigo.ca immediately.

2.10. INDIGO EDI CONTACTS

INTERTRADE (EDI SERVICE PROVIDER)

• For immediate assistance, please contact:

InterTrade Customer Support

1-800-873-7803

(8:30am – 8:00pm EST, Monday through Friday, excluding holidays)

EDI 810

Invoice

To Intertrade

Along with ASN

EDI 832

(Drop Ship

vendors only)

Price/Sales Catalogue

To Intertrade

Minimum Weekly (or as required),

vendor can also send multiple

times/week

EDI 846

(Drop Ship

vendors only)

Inventory Advice/Inquiry

(inventory position file)

To Intertrade

Minimum Daily, vendor can send

multiple times/day

EDI 997

Functional

Acknowledgment

Bi-directional

Immediately sent by the respective

recipient system following each EDI

document transmission

V 8.0 November 2021 19

For non-urgent assistance, please send an email to the following address with your

name, your company name, and a detailed description of the issue:

[email protected]

INDIGO EDI SUPPORT

• Indigo EDI Support Team

[email protected]

V 8.0 November 2021 20

SECTION 3 – ARTICLE SET-UP

ARTICLE SET-UP

3.1. BIBLIOGRAPHIC DATA SUBMISSION

Indigo Books & Music Inc. accepts bibliographic data by means of ONIX files and SYME in order to

maintain data integrity and productivity. We will not accept any MS Excel Template regardless of

source (including the BookNet Canada Bronze Template/Indigo Publisher’s Template).

Currently, Indigo uses xml version 2.0, with the ability to process both ONIX 2.0 and ONIX 2.1

specifications. In 2021, Indigo plans to upgrade to ONIX 3.0; further information regarding the

upgrade will be provided as it becomes available.

Vendors have three options to provide new and/or updated bibliographic data to Indigo Books

& Music:

1. Use Indigo’s hosted web-application SYME. This tool works very effectively for vendors who

have less than 100 active book titles. For any questions regarding the use of SYME for

Bibliographic Data, please contact your Master Data Specialist or e-mail

[email protected].

2. Use the Booknet Biblioshare Webform solution

(http://www.booknetcanada.ca/biblioshare-webform/) that allows a user to enter data

directly into a web based tool and get an ONIX file back. Please contact

[email protected] to discuss the optimal method to send this ONIX file.

3. Load ONIX files directly to the vendor specific SFTP site in the folder Bibliographic Data. If

you do not have a specific SFTP site please contact [email protected] to initiate the

process.

3.2. RIGHTS CHANGES

A change in the rights to sell a title is a regular occurrence within the book industry. Ideally, this

change is communicated to Indigo by both the vendor gaining the rights and the vendor losing

the rights to ensure no misunderstanding regarding the transition. Failure to properly communicate

these changes can lead to out of stock situations (lost sales) and/or unnecessary costs being

incurred if titles are returned to the incorrect vendor. Ideally, this communication occurs at least 1

month prior to the change to allow time to address any inconsistencies.

At a minimum, the notification of rights changes needs to come from the vendor gaining the rights.

This notification needs to include the effective date of the Rights Change, and a list of the titles

with the following information:

• ISBN 13

• Retail price

V 8.0 November 2021 21

• Status

• Class of Trade code

Please send notifications to the Master Data inbox: [email protected] Please indicate in the

notification when the right changes will be communicated via ONIX- this will allow Indigo to ensure

that our internal work processes execute the change properly.

ISBN LABELS

Vendors are responsible for ensuring that a unique scannable, and correct ISBN (International

Standard Book Numbers) is provided on all products shipped to our Distribution Centres or Stores.

V 8.0 November 2021 22

SECTION 4 – PURCHASE ORDERS, RETURNS PROCESS & INVOICE PAYMENTS

PURCHASE ORDER PROCESS

4.1. PURCHASE ORDER DETAIL

Indigo will submit Purchase Orders to EDI Vendors via EDI 850 Purchase Order document. Indigo

will submit Purchase Orders to non-EDI Vendors via e-mail only.

Indigo’s Purchase Order will specify the following:

• Indigo Books & Music Inc. Purchase Order number. This is a 10-digit number beginning

with the numbers 45 (i.e. 4512345678)

• Purchase Order Creation Date

• ‘Ship To’ and ‘Bill To’ locations (including Building #, Store #, SAN#)

• 13-digit case ISBN (being ordered)

• Book/Item Description

• Listing Pack Size for outer cartons (if applicable)

• Quantity (being ordered, in eaches)

• Discount Percentage (%)

• Unit Costs in currency of record for vendor

• Unit Retail in Canadian currency

• Delivery Date at the Ship To address

• Carrier Hand-over Date (CHO Date) (if applicable)

•

INCO and FOB terms (if applicable)

• Payment Terms

• Method of Transportation (if applicable)

The following are the SAN numbers per Distribution Centre already in operational use, as follows:

DC Location

SAN#

Order Type

Retail DC (956)

1186213

7603843

Regular (Initial Buy & Replenishment)

Flow through

Online DC (970)

1187414

7603223

Regular (Initial Buy & Replenishment)

Online Customer Order (Cascade)

Calgary DC (988)

8100608

Regular (Initial Buy & Replenishment)

& Online Customer Order

For further clarification:

• Online orders (i.e. POs cut for Online DC 970) are DC orders (these should not be

considered as Store orders).

• Drop Ship orders (where applicable) will include Customer ship to data (instead of a DC

SAN #)

V 8.0 November 2021 23

If there are questions regarding the meaning of these data elements, please contact

VendorCompliance@indigo.ca

4.2. PURCHASE ORDER DATES

• For Prepaid orders, Vendor must deliver the items on the Purchase Order in full on the

Delivery Date indicated on the Purchase Order.

• For Collect orders, Vendor must hand over the items on the Purchase Order in full on the

CHO Date (Carrier Handover Date) indicated on the Purchase Order.

4.3. PURCHASE ORDER LINE ITEMS

• Product ordered as part of one Purchase Order cannot be received against a different

Purchase Order.

• Indigo will place a Purchase Order for the UPC/ISBN on the product; vendor

generated/internal SKU numbers will not be used on Indigo Purchase Orders when

placing an order.

• Vendor should not ship “substitute” or “replacement” ISBN/UPCs. In this case, the current

PO line must be cancelled via Purchase Order Acknowledgment or by using the

Purchase Order Change Form and a new PO line must be created for the new UPC. This

must be confirmed/approved by the respective Indigo buyer.

• The Purchase Order quantity will be in “eaches” of product/ISBN/UPC ordered

(corresponding to individual units or assortment units).

• For assortments (ie Box sets), Indigo will always order with the parent/Box set UPC.

• Indigo does not currently support the use of GTIN 14 product identifiers.

• It is imperative the ISBN/UPC on the Purchase Order is what is shipped and is on the ASN.

If the ISBN/UPC is incorrect, please contact the Indigo Buyer to have this corrected on

the order ahead of the shipment. An incorrect ISBN/UPC can only be addressed by

cancelling the line item on the Purchase Order (see Purchase Order Change Process

section below).

4.4. PURCHASE ORDER FREIGHT/INCO TERMS

Each Indigo Purchase Order specifies one of the following freight (INCO) terms:

• EXW – (ExWorks): Vendor is responsible for having order ready and available in full to be

handed over (collected) at the vendor premises (factory, warehouse, plant, …) within

the agreed upon Ship Window (based on CHO date). Buyer pays all transportation costs

and bears the risks for transporting the goods to its final destination (DC, Store).

• FOB – (Free on Board): Vendor is responsible for having order ready and available in full

to be handed over within the agreed upon Ship Window (based on CHO date) at the

agreed upon shipping location (FOB point), as specified on the Purchase Order.

V 8.0 November 2021 24

• FCA – (Free Carrier): Vendor is responsible for delivering order in full, cleared for export, to

the Buyer’s designated freight forwarder (carrier), at an agreed upon, named location,

within agreed upon Ship Window. Vendor must load shipment onto the Buyer’s carrier. A

receipt document from carrier to exporting vendor confirms transfer of shipment.

• CIF – (Cost, Insurance and Freight): This applies to maritime transport only. Vendor is

responsible for paying the freight, insurance and other costs to deliver order in full to the

port of destination within agreed upon Ship Window. Once the shipment if loaded on the

vessel, risk is transferred to the Buyer.

• DDP – (Delivered Duty Paid): Vendor is responsible for delivering order in full to the agreed

upon location in the country where the Buyer is situated within agreed upon Ship

Window, and for paying all costs associated with the transfer, including import duties and

taxes; however, vendor is not responsible for unloading.

• DAP – (Delivered At Place) – (replacing previously used INCOTERM DDU): Vendor is

responsible for delivering order in full to an agreed upon destination (“place”) within

agreed upon Ship Window, paying all transportation costs, except for costs related to

import clearance (i.e. duty, other customs clearance costs). The Buyer is responsible for

paying the duty and other customs clearing expenses.

Shipping instructions are provided in the Shipping Guideline section of this Manual (see

Section 5).

4.5. PURCHASE ORDER ACKNOWLEDGEMENT

For vendors transacting via EDI, the POA is an electronic document (EDI 855) that is used to

confirm the terms and details of the Purchase Order.

• We require the POA to be sent within two (2) business days of receiving the Purchase

Order (exception is for Drop Ship orders where POA must be sent within one (1) business

day following receipt of the PO 850)

• If your POA is rejected due to an error, the POA must be retransmitted once the error has

been corrected.

• If we do not receive a valid POA, we will base delivery performance (on-time delivery, fill

rate, etc…) on our original Purchase Order terms. A compliance chargeback may be

applied to late and/or incomplete orders.

• Follow-up POAs may be submitted to relay key PO changes/updates (i.e. changes to

QTY, Delivery Date, etc…) as long as no prior ASN has been sent for that respective PO

line item (in which case the POA will not be accepted and will fail in our system)

At this time, Indigo’s POA document (EDI 855) is only able to automatically complete the

following actions on the respective Purchase Order:

• cancel a PO line item

• update the cost price of a PO line item

V 8.0 November 2021 25

All other changes (ie change in QTY, Delivery Date, etc…) should be communicated via POA for

visibility; however, those will not automatically update the PO.

4.6. PURCHASE ORDER CHANGE

Indigo’s Purchase Order Change document (EDI 860) is used to communicate the following PO

changes:

• PO line item cancellation

• PO line item addition

• PO line item QTY change

If a vendor has sent an ASN that has been properly processed, Indigo’s ERP system will not allow

a PO Change document to be created for the respective PO.

Vendor must acknowledge any PO Cancellation/Change (sent via EDI 860) by sending a PO

Cancellation/Change Acknowledgment (EDI 865 document. Vendors not able to send the EDI

865 must send an acknowledgement of a POC via e-mail to the respective Indigo buyer.

• If an adjustment is required to a PO, vendor must await the receipt of a Purchase Order

Change Notice (EDI 860), or an e-mail correspondence acknowledging the change(s),

from the Indigo buyer, before filling/shipping the order.

• Vendor must immediately notify the respective Indigo Buyer of any changes to Purchase

Order terms that may arise at any time using a follow-up POA (please refer to the POA

section above), including any foreseen late deliveries/shipments, quantity discrepancies

and/or ISBN/line item changes.

• If vendor, in turn, does not communicate any discrepancies/required changes to a

Purchase Order up to 5 business days ahead of Delivery/CHO due date, the terms and

order information on the original Purchase Order govern.

4.7. BACKORDER POLICY

Indigo’s Backorder policy is as follows:

1) Replenishment Purchase Orders issued to vendors will cancel after 30 days lateness from

vendor acknowledged delivery date.

2) Initial Buy Purchase Orders issued to vendors will cancel after 90 days lateness. While these

orders will be cancelled, some orders will be recut (in some quantity) upon

acknowledgement of new delivery time.

V 8.0 November 2021 26

4.8. FLOW THROUGH PURCHASE ORDERS

Below are the guidelines for Flow Through POs through our Retail DC:

1) Delivery for two separate SAN#s (for the same DC location) cannot be mixed on the same

pallet; each SAN# shipment must be on its own individual pallet. (Please refer to the SAN #

table for reference)

2) When shipping multiple Flow Through SKUs on a pallet, each SKU must be packed in a separate

layer (using either a separator slip sheet or a separate pallet).

3) Flow Through shipments must be on a separate ASN and separate pallet than non-Flow

Through shipments.

4) As Flow Through is dependent on the receipt of a valid ASN, Indigo requires a resolution for

failed/invalid ASNs prior to DC receipt. (Please note: there must be only one SAN# per ASN).

4.9. CROSS-DOCK

Indigo’s Cross-Dock program is intended to improve cycle time through our Retail DC.

For vendors set up for Cross-dock, the following are the requirements:

• The BOL Number(No.) must be provided in the ASN document (856);

• The paperwork with the respective BOL No. must be provided to the DC upon arrival;

• The Dock Spot for the destination store number must be indicated on the shipping label;

•

Furthermore, Cross-Dock EDI Labels must be filled out as required (see the Label Guideline

section for more information)

• Full cases must be labelled with the final destination store address;

• Cross-dock shipment cases (for various store locations) may be mixed on a pallet;

• However, Cross-dock and non-Cross-Dock shipments:

o cannot be mixed on the same pallet;

o must be on separate BOLs, even if being shipped on the same trailer.

o must have separate ASNs, even if being shipped on the same trailer

o For further clarity: there must be one BOL# for the cross-dock product, and a

separate BOL# for the non-cross-dock product.

PURCHASE ORDER LEAD-TIMES & RETURNS

4.10. PO DELIVERY LEAD-TIMES

4.10.1. REPLENISHMENT ORDERS

V 8.0 November 2021 27

Indigo expects vendors to deliver our replenishment orders on the delivery date provided in our

purchase orders. The delivery lead-times that vendors have provided Indigo form the basis for

calculating this delivery date.

Vendors should not simply increase their delivery lead-times in an attempt to ensure our On-Time

delivery goals are met, as this could result in the following:

• product arriving too early,

• negative implications on the portion of inventory that Indigo maintains to accommodate

forecast accuracy error,

• higher rates of return

It is important that delivery lead-times are accurate with a 95% confidence level. Please ensure

the lead-times you have provided to Indigo are within this level. Any Lead Time updates should

be communicated to MasterData@indigo.ca.

4.11. REJECTED RETURNS PROCESS

The following outlines the process to be followed for Vendor Rejected Returns:

• Vendor must request a Chargeback Number before they send the rejections for

approval.

• Once a Chargeback Number is received, Vendor may send their return rejection claim by

filling out the Vendor – Return Rejection Form and emailing it to Trade Returns Team

([email protected]). If they don’t have one, they can email the team to request the

form.

• Vendor must hold onto all titles and quantities that is in the claim until they hear back

from the Trade Returns Team (before shipments may be sent back to Indigo’s DC).

• Vendor will be provided with all the necessary information once return rejection is

reviewed: credit authorization, return back to Indigo authorization number, and pick up

details and any other info necessary to resolve the claim.

• Once vendor is provided with an Authorization Number for the respective return, the

items could then be sent back to our DC or a pickup could be arranged.

• Cartons for approved rejected returns should all be labelled with the Return Authorization

Number (RA#) and directed to the attention of “Rejected Returns” at our Retail DC (956).

The following is an example of a properly filled out Rejection Approval Form. Please ensure that all

required information is provided using the template and example below:

Vendor

Chargeback #

Chargeback

Date

ISBN

TITLE

Total

Units

Unit

Cost

Total

Cost

Vendor Comment

700000

5122222222

11.02.2012

9788888888888

FAKE

BOOK

12.13

$12.13

Title made OP in

2011

V 8.0 November 2021 28

Important notes:

• Vendor should be aware that any titles that are returned to them within the 90 days

from Status Change of the titles are considered good to return by Indigo.

•

It is the Vendor’s responsibility to send the most current status of their titles (i.e. out of

print, no longer their publication, no Canadian rights, etc.) via ONIX Data Feed or

using the Indigo SYME application; any questions may be forwarded to the Master

Data team at (masterd[email protected]).

• Any return from Indigo that are shelf worn should not be part of damaged return

rejection

• Any damaged return rejection claim must include photo(s) of the damage(s) in order

to be considered for review

• Vendor will be provided with all the necessary information once return rejection is

reviewed: credit authorization, return back to Indigo authorization number, and pick

up details and any other info necessary to resolve the claim.

INVOICE PAYMENT & BILLINGS

4.12. INVOICES

EDI vendors: Invoices are received via the 810 EDI document only. Any invoices sent via email by

EDI vendors will not be processed for payment. .

Non-EDI vendors are the only exception; these vendors may send paper invoices, or preferably, a

PDF version of the invoice by e-mail to the respective A/P contact at Indigo.

4.13. INVOICE PAYMENT

Indigo has two payment cycles per month: mid-month and month-end. The below examples

illustrate when an invoice gets paid based on the terms of payment:

• Any invoice which is due for payment from the first of the month to the 15th will be paid

on the 15th of the month;

• Any invoice which is due from the 16th of the month will be paid on the month end

cheque run.

• Please note that invoices are aged from the date of the invoice, and are due for

payment based on the terms of payment.

Important notes:

o Any discrepancy between the vendor invoice and our receiving data may result in a

payment different than the value shown on the invoice (i.e. short shipment will result in

short payment).

V 8.0 November 2021 29

o Where an initial Purchase Order is cancelled by Indigo and a new Purchase Order No. is

provided, the invoice must quote the new Purchase Order No.

4.14. BILLING FOR VENDOR DISCOUNTS, ALLOWANCES, REBATES, COMPLIANCE

CHARGEBACKS

Where your organization has entered into an agreement with Indigo for vendor support programs,

including, but not limited to, co-op, markdown support and vendor rebates, or has incurred

compliance chargebacks as a result of non-compliant shipments, all amounts owing will be billed

through the Indigo Debit Note Process. Unless otherwise stipulated by Indigo, please do not send

a credit memo or cheque*. Indigo will provide vendor with all appropriate sales data related to

the billed vendor support program.

(* a cheque should only be sent by vendor in the event that the vendor account is in a debit

balance due to co-op/markdown support/vendor rebates)

4.14.1. INVOICE & BILLING INQUIRIES:

All inquiries regarding invoice and payment status should be directed to Indigo’s Accounts

Payable Department (Please refer to the Contact Information section)

V 8.0 November 2021 30

SECTION 5 - SUPPLY CHAIN EXECUTION & VENDOR COMPLIANCE

VENDOR PERFORMANCE MANAGEMENT PROGRAM (VPM)

Indigo is committed to having a world class supply chain organization focused on delivering the

right product to the right place at the right time at the right cost without defect. To help achieve

this, Indigo’s Vendor Performance Management (VPM) program communicates our supply chain

performance guidelines to our vendors and measures their compliance against those guidelines.

This program is intended to initiate collaborative efforts between Indigo and its vendor community

to improve operational efficiencies, product quality, and the overall customer experience.

THE PERFECT ORDER GUIDELINE

Indigo’s Perfect Order Guideline applies to all product purchased for resale by Indigo Books &

Music Inc.. This guideline plays a key role in ensuring that our vendors deliver/ship orders on-time,

complete, with accurate documentation, and in good condition, in support of our supply chain

productivity goals.

The Perfect Order Guideline includes Indigo’s performance expectations for:

• On-Time Shipment/Delivery/ASN

• Fill Rate (“complete” order)

• Accurate Shipment Documentation

• Shipment Quality (“in good condition”)

5.1. ON-TIME DELIVERY/ SHIPMENT/ BOOKING/ ASN DELIVERY (“ON TIME”)

5.1.1. ON-TIME DELIVERY (OTD) - TO DC & STORE LOCATIONS

a. Applicable to: vendors that have the following INCOTERMS:

• DDP

• DAP

b. Guideline:

• Indigo expects Purchase Orders to be delivered on-time and in full to the correct DC

location (DC Delivery) or Store location (DSD - Direct Ship Delivery) within Delivery

Window.

V 8.0 November 2021 31

• The Delivery Window is defined as up to three (3) business days early, and three (3)

business days late compared to final acknowledged/agreed to Purchase Order

Delivery Date.

• An order delivered outside the Delivery Window will be considered as non-compliant

and will be subject to a Late/Early Delivery chargeback.

• Rescheduling Delivery Date: a Delivery Date revision must be communicated via

POA (EDI 855) up to 5 business days ahead of the current PO Delivery Due Date and

no later than the transmitted ASN (EDI 856) for the respective PO line; change

requests may or may not be approved, at the discretion of the Merchant/Buyer:

o If Delivery Date revision is approved, OTD performance will be measured

against the revised Delivery Date, referred to as the “final agreed to” Delivery

Date;

o If Delivery Date revision is not approved, OTD performance will be measured

against the original Delivery Date on the Purchase Order.

c. OTD Guideline for Strict On Sale Titles:

• Strict On Sale Titles are defined as titles for which an affidavit has been signed by the

respective Indigo buyer.

• Indigo requires delivery of Strict On Sale Titles to its Distribution Centres ten (10) business

days before the release date to allow us on-time receipt and distribution across

Canada. For example, if the on-sale date is July 31, the product must be delivered to

our DC no later than July 17th.

• Indigo requires direct delivery of Strict On Sale Titles to its Store locations a minimum of

48 hours before the release date, to allow us to receive and stock store shelves on time.

• A Strict On Sale Title order that is not delivered according to this requirement will be

considered as non-compliant, and will be charged a cost recovery fee as per the Cost

Recovery Schedule (see Fig. 1).

5.1.2. ON-TIME SHIPMENT (OTS) – (FOR COLLECT FREIGHT – WHERE APPLICABLE)

a. Applicable to: Vendors that have the following INCOTERMS*:

• EXW

• FOB

• FCA

• CIF

(* please refer to the INCOTERM table in our Shipping Guidelines for a summary of Buyer/Seller

responsibilities)

b. Guideline:

• Indigo expects Purchase Order shipments to be ready and available in full to be

handed over within the Ship Window.

• The Ship Window is defined as follows:

o For Ocean/Air (outside of North America): up to ten (10) business days

early, and three (3) business days late compared to the final

V 8.0 November 2021 32

acknowledged/agreed to Purchase Order Carrier-Hand-Over Date (CHO

Date).

o For Land/Air (inside of North America): up to three (3) business days early,

and three (3) business days late compared to the final

acknowledged/agreed to Purchase Order CHO Date.

• A shipment handed over outside the Ship Window will be considered as non-

compliant and will be subject to a Late/Early Shipment chargeback.

o Rescheduling CHO Date: a CHO Date revision request must be communicated

via POA (EDI 855) up to 5 business days ahead of the current PO CHO Due Date;

change requests may or may not be approved, at the discretion of the

Merchant/Buyer:

o If CHO Date revision is approved, OTS performance will be measured

against the revised CHO Date, referred to as the “final agreed to” CHO

Date;

o If CHO Date revision is not approved, or if the PO Change Request is

submitted outside the permitted window indicated above, OTS

performance will be measured against the original CHO Date on the

Purchase Order.

5.1.3. ON-TIME BOOKING (FOR COLLECT FREIGHT – WHERE APPLICABLE)

• A completed Freight Notification Form (please refer to Section 7, Appendix C) must

be sent to Indigo’s international Freight Forwarder & Customs Broker (“Carrier”) as

follows:

o Ocean shipment: min. 2 weeks in advance of the CHO date.

o Air shipment: min. 2 weeks in advance of the CHO date (outside of North

America)

o Truck shipment: min. 3 business days in advance of the CHO date (within North

America)

• It is recommended that vendors book as early as possible, but at a minimum based

on the deadlines indicated above.

• Upon receipt of the Freight Notification Form, Indigo’s 3PL Provider will provide

Routing Instructions to the vendor.

• Bookings made outside the above timelines will be subject to a Late Booking

chargeback.

5.1.4. ON-TIME ASN (ADVANCE SHIPPING NOTICE)

The ASN is an electronic document (EDI 856) that is used to describe the actual contents of a

shipment.

V 8.0 November 2021 33

• Indigo expects EDI vendors to send a valid EDI 856 (ASN) immediately after the shipment

departs from the vendor’s facility (this includes bindery shipments); this will allow time for

remedial action to be taken in the event of ASN failure.

• It is critical to ensure your ASN is loaded into our Warehouse Management System prior to

your shipment arriving at the DCs or Store locations, otherwise, it could result in rejection

or receiving delays.

• If your distribution facility is close to our DC or delivery Store location, it may be necessary

to stage your picked orders so the ASN can be generated before shipping.

• An ASN delivery is considered late and non-compliant if it is not received and processed

successfully before delivery of the physical shipment at the respective DC or Store

location(s). For Drop Ship orders, an ASN is considered late and non-compliant if it is not

sent 2 business days after PO issue/sent date.

• Please note: ASNs are required for all bindery shipments

• A compliance chargeback may be applied to late/missing/inaccurate ASNs.

5.1.5. ADDITIONAL DELIVERY REQUIREMENTS

i. DC Delivery Appointment:

• All deliveries to Indigo’s Distribution Centres require a pre-booked* appointment, with

the exception of courier shipments (i.e., case freight only from CANPAR, UPS, FEDEX,

PUROLATOR).

(* this includes pre-arranged long standing delivery appointments for select vendors)

• Please refer to our Shipping Guidelines for detailed requirements for booking a DC

Delivery Appointment.

• To avoid a late delivery incident, you may book your delivery appointment up to one

(1) week in advance to secure an available timeslot on your desired and scheduled

Purchase Order Delivery Date; however, please ensure that you do not deliver your

shipment more than three (3) days earlier than the scheduled PO Delivery Date as

this will result in an (early) delivery (non-compliance) incident.

• If you attempted to book a delivery appointment a minimum of 2 (two) working days

in advance of the scheduled Purchase Order Delivery Date and a delivery timeslot

was not available, notification of this attempt, including respective delivery details,

should be included as supporting documentation if appealing the respective

chargeback.

ii. Delivery Refusals at DC or Store Locations:

• Delivery to any Indigo DC or Store location may be refused/rejected due to the following:

o No pre-booked appointment (DC locations only)

o Delivered to wrong address

o Incorrect/missing paperwork, BOL

o Incorrect item(s)/UPC(s) shipped

o No ASN

o Delivered too early (earlier than booked appointment)

o Visible Damage to shipment

V 8.0 November 2021 34

o Improperly packed shipment (on pallet, wrong cartons, etc…)

o Other non-compliance issues caught at inbound.

• Deliveries that arrive with any of the above issues may be subject to a compliance

chargeback and any transportation and/or storage charges related to a delivery refusal.

5.2. FILL RATE - (“COMPLETE”)

• Indigo expects our Purchase Order Lines to be shipped/delivered complete, that is, 100%

filled, on the initial shipment, and for the overall PO to be shipped/delivered 100%

complete 60 days after the expected PO Delivery Date (or CHO Date, where

applicable) for all accepted and backordered PO line items (as per the POA – EDI 855).

• A variance of +/- 2% of the PO Line QTY and the overall PO QTY will be tolerated;

however, the following results will be considered as non-compliant:

o A shortage: shipped quantity variance is less than -2%

o An overage: shipped quantity variance is greater than +2%

o Wrong/Substitute product shipped

• A Purchase Order line with a non-compliant Fill Rate may be subject to a Fill Rate

chargeback for short shipment, over shipment or PO not filled.

5.3. ACCURATE DOCUMENTATION (“ACCURATE”)

• Indigo expects all documentation & EDI transactions preceding, accompanying, and

succeeding an inbound shipment to be accurate, on-time and complete, matching

exactly the details of the respective Purchase Order(s), and ship-to location.

• Such documentation includes:

o Valid EDI 856 (ASN) (EDI vendors only)

o Bill of Lading

o Packing Slip

o Invoice

o Customs Documentation (please refer to our Shipping Guidelines for more detail)

• Any of the above documentation that is non-compliant with the requirements below

may be subject to the respective compliance chargeback.

5.3.1. ASN ACCURACY

• Indigo expects (EDI) vendors to send a timely, valid and accurate EDI 856 (ASN) whose

details exactly match what has been routed for shipment.

• An ASN is considered to be inaccurate and non-compliant if does not meet our EDI 856

specifications (specifically all mandatory segments/requirements). Please refer to Indigo's

856 EDI Specifications for more detail.

• It is mandatory that the Bill of Lading # (BOL) associated with your shipment be included

in the ASN:

V 8.0 November 2021 35

• An ASN is considered to be invalid and non-compliant if there is a:

o systemic error/failure

o receiving data error/failure

• If your ASN is rejected due to an error, the ASN can be retransmitted with the same ASN

number once the error has been corrected.

• An invalid or inaccurate ASN may be subject to an ASN Error chargeback.

5.3.2. BILL OF LADING ACCURACY

• Indigo expects all vendor shipments to be accompanied by an accurate Bill of Lading

No. whose details exactly match what has been routed for shipment.

• The Bill of Lading must include at a minimum:

o The full name and address of Shipper

o Name of Carrier

o Consignee:

Indigo Books & Music Inc.

*Correct Indigo DC/Store ship-to address*

o Accurate BOL No. (same as on respective ASN)

o Shipment Details:

o No. of pallets

o No. of cases/cartons

o Total Weight shipped

o Purchase Order No.(s)

o Ship Date

Description of Items Shipped & QTY

o Wood packaging declaration

o Indication of products that require special handing or stowage

• For EDI shipments, it is mandatory that the Bill of Lading # (BOL) associated with your

shipment be included in the ASN. Failure to provide the BOL # could lead to your

shipment being rejected at our Distribution Centre Appointment Desk.

• If the actual BOL # is not available at the time of the ASN creation, please do the

following:

o Enter Indigo’s Purchase Order No. beginning with “45” in the BOL # field for the ASN;

o Ensure that Indigo’s Purchase Order No. is noted clearly on the carrier’s shipping

documentation that will be presented to Indigo’s Distribution Centre Appointment

Desk. This will allow them to locate your ASN within Indigo’s warehouse management

system and provide the carrier a dock door to unload your shipment.

• A Bill of Lading is considered to be inaccurate and non-compliant if there is an error with/

or is missing any of the above required details.

• An inaccurate or missing BOL may be subject to the respective compliance

chargeback.

V 8.0 November 2021 36

5.3.3. PACKING SLIP ACCURACY

• Indigo expects all vendor shipments to be accompanied by an accurate Packing Slip

whose details exactly match what has been routed for shipment.

• The Packing Slip must contain, at a minimum:

Purchase Order No.(s)

o Date of Shipment

o Ship-to Location/Address (Destination)

o List of ISBNs or UPCs

o List of Titles/Product Descriptions

o Total units shipped by Title/Description and total quantity backordered

o List of correct lot numbers (if applicable)

o For international shipments: Number of cartons per SKU/per PO at the

container level when shipping multiple containers under one MBL

• The Packing Slip should be easily identified on the outside of the shipment.

• A Packing Slip is considered to be inaccurate and non-compliant if it does not meet

any of the above requirements.

• An inaccurate or missing Packing Slip may be subject to the respective compliance

chargeback.

5.3.4. INVOICE ACCURACY

• Indigo expects EDI vendors to send a valid and accurate 810 EDI document whose

details match the respective Purchase Order details for the exact item(s) and

quantity(s) that have been shipped.

• Non-EDI vendors are expected to include the following Purchase Order details on their

paper invoices. The Invoice must accurately contain:

o Invoice No.

o Invoice Date

o Vendor’s DUNS #

o Purchase Order No.(s)

o Date of shipment

o Accurate payment terms

o Payment currency

o List of ISBN/UPCs shipped (this must match the ISBN/UPC that is ordered on the

PO)

▪ i.e. for Assortment ISBN/UPCs (ie Box sets, etc.), the Invoice must

include the Assortment ISBN/UPC as ordered on the PO, with the

respective Assortment price; an invoice with the component ISBN/UPC

and price will be incorrect, will fail validation, and may experience

payment delays as a result.

o List of Product Descriptions shipped

o Quantity Shipped by Item (in eaches) by ISBNs or UPCs

o Accurate Unit Price (per each) of ISBNs or UPCs shipped

V 8.0 November 2021 37

o Detailed list of other applicable charges & unit/total price per charge

o Accurate invoice sub-total

o Accurate calculation of total applicable taxes & duties

o Accurate calculation of total all other applicable charges

o Accurate grand total calculation

• An Invoice is considered to be inaccurate and non-compliant if it does not meet any

of the above requirements.

• An inaccurate Invoice may be subject to the respective compliance chargeback.

5.4. IN GOOD CONDITION (SHIPMENT QUALITY)

5.4.1. CASE & PALLET LABELING GUIDELINE

Indigo’s Case & Pallet Labeling Guideline applies to all inbound product that has been purchased

for resale by Indigo Books & Music. This guideline plays a key role in ensuring that vendors provide

the label requirements for shipment to our DC,Store locations, and direct to customer (Drop Ship)

in the manner expected to support our supply chain productivity goals.

Definitions:

Master/Outer Case/Pack: a vendor’s outermost carton containing the ordered units,

packed loosely or in inner packs.

Inner Case/Pack: packaging material (i.e. inner carton, polybag, …) grouping together a

number of ordered units within a master/outer pack.

5.4.2. MASTER/OUTER CASE & PALLET LABELING REQUIREMENTS FOR EDI VENDORS

Indigo expects that the majority of our vendors are transacting via EDI. This section applies to all

vendors transacting via EDI.

General Label Requirements (EDI shipments)

A labeling violation will occur if a label is missing, inaccurate or unscannable. Reasons why a label

would be identified as missing, inaccurate or unscannable include:

• GS1-128 label is missing

• Invalid SSCC-18 code used for Handling Unit Number

• Invalid characters (presence of symbols or alpha characters)

• Duplicate barcodes (duplicate barcodes will not be accepted)

• Photocopy (photocopies of labels taped to cases will not scan correctly)

• Poor print quality which causes the label to not scan correctly

• Defaced and/or partially missing label

V 8.0 November 2021 38

• Barcode and human readable are different (barcode must de-code to the human

readable number printed on the label)

• Barcode is too big (bleeds to edge of label) or too small

• Tape over label (including “clear” tape)

• PO #, ISBN/UPC, Carton QTY not indicated on the label

• Incorrect item UPC and/or carton QTY indicated on label

• Incorrect Ship-to included on the label

• Carton weight is missing

Outer Case (Master Carton) Label Requirements for EDI Vendors Sending Case/Pack Level ASNs

Each Outer Case must contain an EDI GS1-128 Label in accordance with GS1 Global Standards.

Indigo’s label requirements follow standard GS1/EAN SSCC-18 common label formats. Detailed

information about the SSCC-18 data structure and associated GS1/EAN-128 symbol can be found

online at http://www.gs1ca.org/home.asp.

Indigo GS1- 128 Label Zones

The label is formatted into several information zones. Zones include both human readable

information and GS1/EAN-128 information. Each zone contains a zone title and information

pertaining to that zone. Please see the illustration and zone explanations below.

V 8.0 November 2021 39

Illustration not to scale

Actual size = 4”x6” conforming to GS1 standards

Zone A

Ship From:

Ship From Name

Address 1

Address 2

City, State Postal Code

Zone B

Ship To:

Ship To Name

Address 1

Address 2

City, State Postal Code

Zone C

Carrier:

(420) Ship To Postal Code

Zone D

B/L Number:

PO:

ISBN / UPC:

Carton Qty:

(420) 85263

Zone E

Final Destination SAN #:

Final Destination:

Zone F

(92) 1186213

Final Destination Name

Address 1

Address 2

City, State Postal Code

Zone G

Serialized Shipping Container Number

(00) 0 125385 012345678 9

V 8.0 November 2021 40

Zone

Content

Vendors ship from name and address is required

10 to 12 pt font

Ship to name and address is required

10 to 12 pt font

Shipment Information

- Carrier is required

- B/L # is required if available ; must be provided in EDI 856

- PO Number is required

- ISBN/UPC is required (for single title; if mixed case,

indicate “mixed’)

- Carton Qty is required

10 to 16 pt font

Ship To postal code and barcode

10 to 16 pt font

Final Destination SAN#

10 to 16 pt font

Final Destination Name and Address

(for Cross-Dock shipments only; leave blank for DC/DSD

shipments)

10 to 16 pt font

UCC-128 Serial Shipping Container Code (SSCC-18) is

required

Packaging Type indicator (3

digit):

•

“0” for case/carton

•

“1” for pallet

20 mil bars

V 8.0 November 2021 41

Cross Dock Label Requirements (where applicable)

Indigo’s labeling requirements for cross-dock shipments are slightly modified from the GS1-128

Label Zone Example provided above. The Final Destination Name and Address in Zone F must also

include the Indigo DC Dock Spot that corresponds to this Final Destination Name & Address.

Ship From:

Ship From Name

Address 1

Address 2

City, State Postal Code

Ship To:

Ship To Name

Address 1

Address 2

City, State Postal Code

Carrier: (420) Ship To Postal Code

B/L Number:

PO:

UPC:

Carton Qty:

(420) 85263

Final Destination SAN #: Final Destination:

(92) 1186213 Final Destination Name

Address 1

Address 2

City, State Postal Code

Dock Spot (Actual 3 Digit Number XXX)

*Illustration not to scale

Actual size = 4”x6”

Zone A

Serialized Shipping Container Number

Zone B

Zone C

Zone E

Zone D

Zone F

Zone G

(00) 0 125385 012345678 9

V 8.0 November 2021 42

Label Placement

• The GS1-128 label must be placed on the shortest side of the outer case on the right hand

side;

• Labels must all be placed under shrink wrap (not overtop), but the barcode on the label

must be scannable;

• Barcodes must be printed in vertical bar configuration;

• Placement of the label must be such that the bottom edge of the barcode containing the

SSCC-18 is located at least 1.25 inches from the bottom of the outer case (shipping

container);

• The outermost bar of the barcode cannot be closer than 1.25 inches from the vertical edge

of the outer case (shipping container);

• If unable to have the barcode containing the SSCC-18 at least 1.25 inch from any edge of

the outer case (shipping container), then place the GS1-128 carton label on "top" of the

outer case (shipping container);

• Outer cases should only contain one unique GS1-128 label. All additional “internal” barcodes

on the outer case must be marked out or covered as this is in conflict with the barcode on

the GS1 -128 shipping label.

Zone

Content

Vendors ship from name and address is required 10 to 12 pt font

Ship to name and address is required 10 to 12 pt font

Shipment Information

-Carrier is required

- B/L # is required if available

- PO Number is required

- UPC is required if available

-Carton Qty required

10 to 16 pt font

D Ship To postal code and barcode 10 to 16 pt font

Final Destination SAN # 10 to 16 pt font

Final Destination Name and Address; 10 to 16 pt font

Dock Spot (Actual 3 Digit Number XXX) based on

the store's X-Dock number provided by Indigo.

UCC-128 Serial Shipping Container Code (SSCC-18) is

required

Packaging Type indicator (3rd digit):

• “0” for case/carton

• “1” for pallet

20 mil bars

V 8.0 November 2021 43

Pallet Label Requirements for EDI Vendors Sending Pallet Level ASNs (for Retail DC only)

These requirements only apply if a vendor is providing Indigo a shipment to its Retail DC only that

contains a pallet level ASN. There are significant productivity improvements that Indigo and the

vendor can realize from using this ASN structure.

Please note that Pallet/Tare Level ASNs are NOT SUPPORTED at our Western DC location (pack level

only)

The label requirements are as follows:

For full or half-pallet shipments of a single book/product (i.e. single ISBN or UPC):

• Vendor provides a single Pallet Level ASN (SOTI structure) rather than a case level ASN (SOPI

structure). This allows Indigo to receive the entire product on the pallet with one scan of the

pallet label rather than with multiple scans of each case on the pallet.

• Only a pallet HU GS1-128 label is required; individual carton HU GS1-128 labels are not

required. The pallet label must be placed on the top carton on the right hand side, under

the shrink wrap (not overtop), but the barcode on the label must be scannable.

• The ISBN/UPC and description of the respective product and the total quantity of units must

be marked/indicated on each individual master carton on the shipment.

• Two half-pallet shipments may be place on one skid if separated by a slip sheet and/or a

pallet (hence creating layers), with a pallet HU GS1-128 label per layer/shipment.

• Pallet shipments must be packed to a maximum pallet height of 52 inches, and one case

pack size only.

• Alternatively, vendors may provide a SUPER-PACK SOPI ASN using the existing SOPI ASN

structure, essentially creating one big carton for the total quantity of units on the pallet:

• this option requires only a pallet HU GS1-128 label;

• individual carton HU GS1-128 labels are not required (*only item ISBN/UPC and QTY

must be indicated on the carton);

• Please note that for this option: the Packaging Code in the TD1 segment must

indicate “PLT” (not “CTN”), and the Lading Quantity must indicate the total # of

pallets.

• Please note that only one structure type (SOPI or SOTI) can be used per ASN, that is, one ASN

cannot contain both SOPI and SOTI structure types.)

Package Type Indicator - Case vs. Pallet Label

As indicated in Zone G of Indigo GS1- 128 Label Zones (Fig. 3 above); the 3

digit of the SSCC

code indicates the unit level packaging type (i.e. case/carton vs. pallet) as follows:

• “0” for carton

• “1” for pallet

V 8.0 November 2021 44

• For pack/case/carton level shipments, the individual pack/case/carton labels would include

a “0” in the 3

digit of the SSCC code.

• For pallet shipments, the pallet label would include a “1” in the 3

digit of the SSCC code.

5.4.3. MASTER/OUTER CASE LABELING REQUIREMENTS FOR NON-EDI VENDORS

Indigo expects that the majority of our vendors are transacting via EDI. This section applies to all

vendors that are not transacting via EDI.

General Label Requirements (Non-EDI shipments)

A labeling violation will occur if a label is missing or incorrect. Reasons why a label would be

identified as missing or incorrect include:

• Label is not affixed to carton

• Defaced and/or partially missing label

• PO #, ISBN/UPC, Carton QTY not indicated on the label

• Incorrect item UPC and/or carton QTY indicated on label

• Incorrect Ship-to included on the label

• Carton Weight is missing

Outer Case (Master Carton) Label Requirements for Non-EDI Vendors

Each outer case must contain a Non-EDI Shipping Label as outlined below. Please produce the

non-EDI carton label presented below, using the subsequent Zone content table provided below,

and in the appropriate size. Place a label on each outer case in the shipment (an editable label

template can be provided upon request).

Indigo Non-EDI Shipping Label Zones

The label is formatted into several information zones; it is very similar to Indigo’s GS1-128 Shipping

Label for ASNs provided above. Zones include both human readable information and GS1/EAN-

128 information. Each zone contains a zone title and information pertaining to that zone. Please

see the illustration and zone explanations below.

V 8.0 November 2021 45

*Illustration not to scale

Actual size = 4”x6”

Zone A

Ship From:

Ship From Name

Address 1

Address 2

City, State Postal Code

Zone B

Ship To:

Ship To Name

Address 1

Address 2

City, State Postal Code

Zone C

Carrier:

Description of Product :

Zone D

B/L Number:

PO #:

ISBN : 9781234567890

Carton Qty:

Gross Weight of Case:

Zone E

Final Destination:

Final Destination Name

Address 1

Address 2

City, State Postal Code

Zone

NON EDI

V 8.0 November 2021 46

Zone

Content

Vendors ship from name and address is required

10 to 12 pt font

Ship to name and address is required

10 to 12 pt font

Shipment Information

•

Carrier if available

•

B/L # if available

•

PO Number is required

•

Carton quantity (# of total units in carton) is required

10 to 16 pt font

Product Information

•

Product Description is required

•

ISBN is required if single product in the case; GS1-128

scannable barcode is optional (if available)

•

Gross weight of the case is required

10 to 16 pt font

Final Destination Name and Address

(for Cross-Dock shipments only; leave blank for DC/DSD

shipments)

10 to 16 pt font

NON EDI – is required

36 to 40 pt font

5.4.4. INNER CASE/PACK LABELING REQUIREMENTS (EDI & NON-EDI VENDORS)- WHERE

APPLICABLE

The following requirements only apply if there is an Inner Case/Pack inside a Master Case. Indigo

does not require an EDI GS1-128 label to be provided on inner cases/packs for EDI vendors;

however, Indigo does require labeling for Inner Cases/Packs as follows:

• Each inner case/pack must be labeled with a human readable ISBN/UPC of the product

AND a scannable barcode of the ISBN/UPC.

• The inner case pack label must include:

• The unit quantity contained within the inner case/pack,

• A description of the product.

• The inner case/pack label can be no smaller than 1” x 1”

• Use of a stencil and/or printed on the inner case/pack is permitted.

The inner case label must appear on one side only, in the upper right-hand corner.

V 8.0 November 2021 47

5.4.5. LABELING FOR SPECIALTY PRODUCTS- EDI & NON-EDI VENDORS

Books Requiring Special Labeling/Handling

• Books or related products requiring special handling must be clearly labeled on the case.

• If products require special handing or stowage, the packaging should be marked

accordingly; this information should also appear on the Bill of Lading.

• Any cautionary markings must be permanent and easy to read. Use the languages of both

the country of origin and English.

• The use of stencils is recommended for legibility – do not use crayon, pencil, or chalk, which

may be erased, or tags and cards, which may become detached.

Strict On Sale (SOS) Titles:

• Shipment cases with SOS titles must be marked accordingly with a “Strict On Sale” label.

• This only applies where an affidavit has been signed by the respective Indigo Buyer.

(Please note that SOS Titles must not be mixed in a case with other titles; the ordered

quantity must be shipped in a separate case without rounding to a full case pack).

Assortments/Box Sets

If “assortments” or Box Sets are being purchased by Indigo, please contact your Buyer or

VendorCompliance@indigo.ca to further discuss the master data, Purchase Order and

receiving processes associated with product of this nature. Indigo’s experience has been that

there are differing definitions of “assortments’ among vendors; this will assist in avoiding

misunderstanding and poor supply chain execution. Please ensure that the ISBN/UPC label on

the assortment pack/box set is the same ISBN/UPC as ordered on the Purchase Order; the

assortment/Box Set ISBN/UPC should also be included in the respective ASN and invoice to

avoid document failures and processing delays.

5.4.6. LABELING COMPLIANCE TO CANADIAN LAWS AND REGULATIONS

• All case and package labeling must comply with all applicable Canadian laws and

regulations, and must adhere to any prescribed national standards and warnings.

• Cost of all labeling is the responsibility of the vendor and must be included in the cost of the

goods. Product must meet these conditions at time of shipment from vendor’s facility or

manufacturing site.

• Vendors may be asked to provide a copy of inner/outer case label for review, if necessary.

• Please refer to The Case and Pallet Labeling Guidelines for further detail.

Compliance

A violation/infraction means non-compliance with any component of this guideline for receipts

under a single shipment.

V 8.0 November 2021 48

Example:

• Non-compliance of the shipping label guideline on each carton of a 60-carton shipment

in response to one Purchase Order constitutes a single violation, not 60 violations.

Failure to meet Indigo’s requirements will lead to the respective shipment being subject to the

applicable compliance chargeback.

V 8.0 November 2021 49

5.5. PACKING GUIDELINE

Indigo’s Packing Guideline applies to all product purchased for resale by Indigo Books & Music

Inc. inbound to each of our DC and Store locations. This guideline plays a key role in ensuring that

vendors provide the packaging, carton and pallet requirements for shipments to our DC and Store

locations in the manner expected to support our supply chain productivity goals.

IMPORTANT: Please refer to the PACKING VENDOR GUIDELINES - ONLINE, RETAIL & DROP SHIP for full

detail on ONLINE & DROP SHIP Packing requirements as there are further specific details for

packing for these 2 channels.

The Packaging Guideline includes Indigo’s requirements for:

• Inner/Outer Case Pack

• Carton Specific Packaging

• Inner Packaging Material

• Pallet Specific Packaging

• Packaging for Specialty Product, including:

• Inner/Outer Package Labeling

• Environmental Reporting and Packaging Requirements

• Price Ticket Placement (on customer facing merchandise)

Indigo is an environmentally responsible company. We encourage the use of environmentally

sensitive packaging materials (recycled and recyclable).

5.5.1. INNER/OUTER CASE PACK REQUIREMENTS

• All products must be packed in cartons/cases in accordance with the master/outer pack

and inner pack quantities that are agreed to on the original Purchase Order. Any deviation

in inner/outer pack quantities may result in a compliance chargeback.

Master/Outer Pack

(QTY=24 eaches)

Inner Pack

(QTY=6 eaches)

Master/Outer & Inner Packs

V 8.0 November 2021 50

• Retail & Western DC requirement: each outer case/master carton must contain only one

ISBN/SKU/UPC/EAN (exception: Online DC orders).

• Requirement for all DCs: Each inner case must contain only one ISBN/SKU/UPC/EAN.

• Requirement for all DCs: Each outer case/carton must contain merchandise for only one

Purchase Order.

• If a single ISBN/SKU/UPC does not completely fill a carton, the remaining space must be filled

with inner packaging material (dunnage).

5.5.2. CARTON SPECIFIC PACKAGING REQUIREMENTS

Master/Outer Pack (Carton) Packaging Requirements:

All products shipped to our DC & store locations must be packed in cartons/cases (the exception

is some small, couriered orders). At a minimum, all master/outer cartons/cases used to pack

product to be shipped must be packaged according to the following standards:

Master/Outer Case - type/dimensions/weight:

• Cases must be made from new/clean corrugated cardboard.

• Cases must not exceed 23” (L) x 22” (W) x 16” (H) (exceptions for gift, toy and baby product

must be pre-approved by the respective Indigo Category Manager ahead of delivery).

• Cases must be double-wall (5ply) with minimum edge crush strength of 50 lbs (22 kilos),

and a bursting strength of 200lb/in2 (1379kPa -13.4kg/cm2).

• Filled case weight must not exceed 40 lbs (exceptions must be pre-approved by the

respective Indigo Category Manager ahead of delivery)

• Exceptions are for Food (liquids & semi-liquid) and Furniture which require a bursting

strength of 275lb/in2 (1896kPa - 18.4kg/cm2)

• The top and bottom seams of open cartons/cases must be sealed using strong packing

tape.

• Use of binding, straps, staples, shrink-wrap or glue is not acceptable.

• The use of cardboard Gaylord boxes/containers, wooden or plastic crates are not

permitted.

Master/Outer Case - Carton Markings:

• Carton Markings for master/outer case should include the following:

• ISBN/UPC number

• Product Description

• Carton Quantity

• Carton Weight

V 8.0 November 2021 51

• Only vendor markings regarding respective shipment, possibly corrugate manufacturer

info, and courier label (if applicable) may be on master carton. No other markings are

allowed.

• Product indicators, logos, and labels on the outside of the master carton must be for the

product contained inside only.

• Special handling instructions must be indicated on the master carton (i.e. “fragile”,

“glass”, “This way up”, “Do not double stack” etc…).

Inner Pack Packaging Requirements:

Inner Case – type:

• Inner packs may be in the form of cartons or polybags, depending on item

specifications.

• The top and bottom seams of open inner cases must be sealed using strong packing

tape.

• Polybags must be clear and made from film that is at least 0.75 mil [19.0 µm] thick.

• If this is a polybag that Indigo’s customer will ultimately receive, and it has an opening

that is greater than 14 inches in circumference, then the polybag must have on it,

printed legibly in black, the following anti-suffocation safety warning in both official

languages:

"PLASTIC BAGS CAN BE DANGEROUS. TO AVOID DANGER OF SUFFOCATION KEEP THIS BAG

AWAY FROM BABIES AND CHILDREN."

“LES SACS DE PLASTIQUE PEUVENT ÊTRE DANGEREUX. POUR ÉVITER LE DANGER DE SUFFOCATION,

NE LAISSEZ PAS CE SAC À LA PORTÉE DES BÉBÉS NI DES ENFANTS”

• This warning may be expressed in different words if those words clearly convey the same

warning.

• Inner packs must have a unique scannable and human readable ISBN/UPC/EAN

properly affixed.

Inner Case - Markings:

• Carton Markings for Inner Case should show:

• Product Description

• ISBN/UPC number

• Carton Quantity

For Drop Ship orders:

• Merchandise must be packed and shipped in a new, plain, securely sealed corrugated

Box/Carton.

• The Box/Carton may contain minimal vendor markings (i.e. product description, carton

QTY), without vendor name, logo, or branding. Any exceptions to this requirement must

be pre-approved by Indigo’s Drop Ship team by request email sent to

[email protected]

• There must be sufficient (but not excessive) packing and Inserts inside the Box/Carton to

ensure damage-free shipment to the customer.

V 8.0 November 2021 52

• (Please refer to the PACKING VENDOR GUIDELINES - ONLINE, RETAIL & DROP SHIP for full

detail)

Drop Test Requirement:

Please refer to the Appendix for the required Drop Test Procedure.

5.5.3. INNER PACKAGING MATERIAL REQUIREMENTS

• Although bulk shipments are warehoused at Indigo DCs, product must be packed properly

to handle further distribution to Indigo Stores or online customers.

• At a minimum, all products should be packed inside a carton/case according to the

following standards to ensure that they are adequately secured, supported and protected

from damage during travel and handling:

o Product must be properly protected using clean packing materials, and sufficiently

separated from other items within the same container so as to avoid possible

damage due to contact.

o For Online DC orders, product must be packed as an individual Selling Unit – an Each

or a Set – in an individual polybag, box or carton, ready for immediate shipment to

our customer with no further repacking required at the Indigo Online DC; an

ISBN/UPC barcode sticker must be affixed to the Unit/Single Pack (please refer to the

PACKING VENDOR GUIDELINES - ONLINE, RETAIL & DROP SHIP for full detail)

o Inner voids within cartons/cases must be filled with packing materials (dunnage, air

pillows,…).

o Packing materials requirements:

• The use of Packing Paper (dunnage), Tissue, Air Pillows and Foam is permitted

so long as they provide sufficient protective packaging for the products in the

container.

• The use of Packing Poly Peanuts, Newspaper, Printed Material, Hay, or Straw is

not permitted.

o Protective packaging (i.e. polybags, tissue, ‘baggies’,…) must each be labeled (on

the outside) with a scannable and human readable ISBN/UPC of the product.

o All liquid products must have a sealed cap and must be packed to contain

accidental leakage.

o All furniture or large items must be sufficiently packed to avoid damages from water

and dust and to withstand long haul transportation.

o The use of polystyrene foam for packing furniture is permitted.

o All sharp or pointed objects/product edges must be wrapped in such a way so as to

avoid puncturing the carton/case.

o Protective carton inserts are required on top of product to ensure knife damage will

not occur.

o Please note: vendor is required to send thirty (30) days prior notification of any new

configurations/packaging changes that will ship to Indigo’s DC or Store locations.

o Notification must be sent via email to the respective Indigo Buyer and

VendorCompliance@indigo.ca

V 8.0 November 2021 53

5.5.4. PALLET SPECIFIC PACKAGING REQUIREMENTS

Pallet Physical Properties:

Indigo requires that all inbound shipment pallets meet the following requirements:

• Pallet dimensions: 40” x 48”

• Pallet Max Height: must not exceed 52” inches (includes pallet + product height) -

(exceptions must be pre-approved by Indigo Category Manager & DC Product Flow

Manager, ahead of shipment/delivery)

• Pallet type:

o Standard 4-way wooden pallets only

o Please note: CHEP, CPC, plastic, 9-block, chipboard, and damaged pallets are not

acceptable

Pallet Packing & Stacking:

• Shipments for which the total number of cartons make up more than 1 layer of a pallet

should be palletized (exemption: floor loaded containers for sea shipments)

• A Pallet must contain product for one DC or store ship-to-location only (no mixed

destinations).

• Heavier product must be placed on the bottom of the pallet.

• Where possible, cases/cartons containing the same item should be grouped together on

the same pallet, up to a maximum height of 52”.

• All pallets must be securely shrink-wrapped with no overhang of product (see below).

• Use of cardboard Gaylord boxes/containers, wooden/plastic crates are not permitted.

• Pallets may be double-stacked only if bottom pallet is leveled and the product on the

bottom pallet will not get damaged.

o Shipper will take responsibility for any damage resulting from double-stacking.

o Triple stacking of pallets is not allowed.

CHEP Pallet

✓

48”

40”

✓

Acceptable vs. Unacceptable Pallet Types

V 8.0 November 2021 54

Special Considerations:

• Any merchandise shipment that requires special handling should be identified and pre-

approved prior to the initial shipment by contacting the respective Indigo Buyer and

VendorCompliance@indigo.ca

• For example, in the event that a filled case weight exceeds maximum allowable weight

of 40 lbs (per case), as this will require special shipping arrangements.

Pallet Shipment – ASN Structure

For full or half-pallet shipments of a single product (i.e. single ISBN/UPC): Indigo requires the vendor

to provide a Pallet shipment, with either a:

1. Pallet ASN (SOTI structure), or

2. Super-Pack ASN (Super-pack SOPI structure)

(Please note that only one structure type (SOPI or SOTI) can be used per ASN, that is, one ASN

cannot contain both SOPI and SOTI structure types.)

5.5.5. PACKAGING FOR SPECIALTY PRODUCTS

Fragile

• All fragile items (glassware, ceramics, gift items, furniture…) must be adequately

packaged to protect merchandise from breakage or damage.

• If products require special handing or stowage, the packaging should be marked; this

information should also appear on the Bill of Lading.

• Please refer to Labeling for Specialty Products in the Case & Pallet Labeling Guideline for

further instruction on labeling Fragile product.

Other

• Any pre-approved shipments containing oversized and/or heavy cartons must have

“HEAVY” and/or “OVERSIZED” marked on the respective carton in either label or legible

preprint carton marking format.

V 8.0 November 2021 55

5.5.6. ADDITIONAL PACKAGING REQUIREMENTS

Product and Packaging Requirements:

Indigo will not accept illegally harvested wood and paper products. Indigo will immediately

terminate business with vendors found to use such wood in its packaging materials.

Sustainable Packaging:

Where paper packaging is used (either corrugate or non-fluted paperboard packaging), Indigo

prefers that vendors avoid virgin materials and use recycled materials.

Wood Packaging Requirements:

Please refer to the Appendix section for Indigo’s wood packaging requirements.

5.5.7. PRICE STICKER SPECIFICATION & PLACEMENT GUIDELINE FOR NON-BOOK

MERCHANDISE

Retail Price Tickets (mandatory) – non-book merchandise

Retail price tickets are required on all retail merchandise. The price displayed is the Canadian

retail selling price from the Purchase Order

All merchandise must be shipped to our Retail Distribution Centres and Stores with a scannable

UPC/ISBN or EAN barcode, and a Price Ticket/Sticker placed on the customer-facing

merchandise (boxed/ wrapped or unboxed/unwrapped).

Please note: this guideline does not apply to Online merchandise (Online POs) shipping to the

Online DC or Drop Ship POs (shipping directly to customers); Online & Drop Ship product should

not have price stickers attached.

Please refer to the PACKING VENDOR GUIDELINES - ONLINE, RETAIL & DROP SHIP for full detail

5.5.8. DAMAGE-FREE SHIPMENT/PRODUCT

• Indigo expects vendor shipments to be delivered damage-free, with all products packed

according to Indigo’s Packaging Guidelines.

• A shipment is considered to be damaged and non-compliant if there is any visible or concealed

damage to the packaging and/or the product, rendering it not saleable.

V 8.0 November 2021 56

• A damaged and non-compliant shipment may be subject to a compliance chargeback as per

the Compliance Chargeback Schedule.

• Indigo will be noting any visible damage on the Bill of Lading at the time of offloading:

▪ If vendor is responsible for freight, the damaged articles will be left on the carrier’s trailer

to be returned to vendor, and the respective invoice will be short paid for the respective

amount. Vendor will be responsible for initiating the claim with their appointed carrier.

▪ If Indigo is responsible for the freight terms, Indigo will initiate the claim with their

appointed carrier.

• For concealed damage, Indigo will place the respective damaged items in their DC Quarantine

and the respective invoice will be short paid as a result (for the amount of the damaged

articles):

▪ Vendor will be responsible for picking up the damaged product within seven (7)

calendar days of being sent the notification by Indigo or may choose to pay Indigo to

dispose of the damaged product. Indigo reserves the right to dispose of the goods if

pick-up arrangements have not been made by the vendor within the 7 days. This policy

applies to both our warehouses and all of our stores within Canada.

• In the event of any required sorting/reworking at the DC for damaged shipments, the respective

hours of rework will be charged at a rate of $75/hr as a Rework chargeback

PRODUCT COMPLIANCE AND QUALITY

5.6. PRODUCT QUALITY POLICIES (APPLICABLE TO NON-BOOK MERCHANDISE)

5.6.1. PRODUCT COMPLIANCE POLICY

At Indigo we provide our customers with safe and high integrity products that comply with

applicable laws, regulations, and industry standards of the countries we operate in. This includes

all applicable and required government registrations, licenses, testing and certifications. Upon

request, all vendors are expected to have supporting documentation that confirms that products

being supplied to Indigo and its customers have met all applicable regulations and standards of

the countries where we conduct business. Non-Compliance with applicable regulations may

result in the cancellation of purchase orders and/or products withdrawals and recalls.

5.6.2. PRODUCT INCIDENT MANAGEMENT

Consumer Product Safety is governed in Canada by the Canada Consumer Product Safety Act

(CCPSA) and in the U.S by the Consumer Product Safety Commission (CPSC), with some exclusion:

Cosmetics, Foods, Drugs, Medical Devices and Natural Health Products. Vendors are required to

comply with the requirements of these acts, including participating with Indigo in investigating

Consumer Product Incidents relating to personal injury or property damaged.

If a recall or withdrawal is initiated by the vendor or is requested or required by any governmental

authority, vendors shall promptly advise Indigo of such recall or withdrawal.

V 8.0 November 2021 57

Vendor shall notify Indigo’s Category Manager and Quality Assurance, within two (2) calendar

days of becoming aware of any possible non-compliance with product laws, or its notice of a

claim from a consumer (which, individually or in the aggregate, may reasonably be expected to

result in material liability to vendor and/or Indigo) that a product is defective or does not comply

with all product laws.

5.6.3. PRODUCT WITHDRAWAL OR RECALL

In the event of a regulatory recall or alert of a product safety risk, Indigo reserves the right to issue

a recall notice, cancel outstanding purchase orders and return all product for a full refund and

charge back the vendor any costs incurred to facilitate the recall/withdrawal.

5.6.4. BILINGUAL PACKAGING AND LABELLING REQUIREMENTS

All Consumer Packaging and Labelling, whether is Indigo private label or national brand, must be

bilingual (English and French) and in compliance with Canada’s Consumer Packaging and

Labeling Act and Quebec’s Charter of French Language. All information on the product, on its

container or on its packaging, on a document (e.g. instruction manual) or object supplied with it

must be in French and English. No inscription in another language may be given greater

prominence than that in French.

5.6.5. TRANSIT TESTING (PACKAGE TESTING)

Vendors may have transit testing (cartons packed for shipping) conducted by an accredited

service provider using ISTA-1A standards or perform in-house testing to the same standards (please

refer to Drop Test Standard in the Appendix section).

V 8.0 November 2021 58

SECTION 6 - VENDOR COMPLIANCE PROGRAM

SUMMARY

Indigo expects vendors to comply with the guidelines and requirements detailed in this manual.

Non-compliance with these requirements disrupts Indigo’s supply chain processes, thus affecting

the high level of service we strive to deliver to our customers. Our vendor compliance policy is

intended to recover incremental costs incurred by Indigo as a result of such non-compliance.

In the event a non-compliant shipment cannot be accepted, Indigo reserves the right to reject

the shipment. In those instances, the vendor will be responsible for:

• All transportation and storage charges related to the rejected shipment;

• Arranging pick-up of the rejected freight within seven (7) calendar days of such

notification being sent by Indigo. Indigo reserves the right to dispose of the goods if pick-

up arrangements have not been made by the vendor within the 7 days. This policy

applies to all our warehouses and stores within Canada.

6.1. COMPLIANCE CHARGEBACKS

Below is a list of our Delivery Guidelines and respective Compliance Chargebacks in the event of

non-compliance (please note that new guidelines and/or chargebacks may be added at any

time as required):

COMPLIANCE CHARGEBACK LIST

Metric

Delivery Guideline

Violation

Chargeback

Amount

ON-TIME

On-Time Shipment (OTS)

Handed over to Carrier

within

Ship Window :

Ocean/Air (outside NA):

-10/+3 bus. days early/late

vs CHO

Land/Air (inside NA)

-3/+3 bus. days early/late vs

CHO

PO Handed Over to Carrier:

Ocean/Air (outside NA):

> 10 business days earlier than PO

CHO Date

> 3 business days after PO CHO Date

Land/Air (inside NA):

> 3 business days earlier than PO CHO

Date

> 3 business days after PO CHO Date

2% x QTY* early

5% x QTY* late

*(PO value)

2% x QTY* early

5% x QTY* late

*(PO value)

V 8.0 November 2021 59

On-Time Delivery (OTD)

Delivered to DC or Store

within

Delivery Window:

3 bus. days earlier/3 bus.

days later

than agreed to PO Delivery

Date

Delivered to DC/Store:

> 3 business days earlier than PO

Delivery Date

> 3 business days after PO Delivery

Date

2% x QTY* early

5% x QTY* late

*(PO value)

ASN Delivery

▪ Sent immediately after

shipment departs from

vendor’s facility

▪ Received and

processed successfully

before delivery of

physical shipment at

DC/Store(s)

Missing/Late ASN:

▪ EDI 856 not sent

▪ Flow Thru Missing ASN

▪ Valid EDI 856 sent late

o Retail DC (RDC)

o Western DC (CDC)

o Online DC (ODC)

o Store

$250 per shipment

for RDC/CDC

$100 per shipment

for ODC/Stores

DC/Store Delivery

Requirements:

▪ Appointment Booking

▪ Correct Address/Ship

Location

▪ Paperwork

DC/Store Delivery:

▪ No Appointment; Early/ Late

Arrival

▪ Shipped To Wrong Location

▪ Paperwork Error/Missing Required

paperwork (ie. BOL, Packing Slip,

PO,…)

$250 per PO

COMPLET

Fill Rate

PO Line 98%-102% filled on:

• Initial shipment

• Overall PO

Fill rate variance from PO Line QTY

5% of non-compliant

QTY*

*(PO value not filled)

ACCURATE

Accurate Documentation

▪ BOL Accuracy

▪ Packing Slip Accuracy

▪ Non-compliant/Missing BOL

▪ Non-compliant/Missing Packing

Slip

▪ PO not on BOL

$100 per

violation/PO

(applies to all cases of

inaccuracy/invalidity)

Accurate EDI

Documentation

▪ ASN Accuracy

▪ POA Accuracy

▪ Invoice Accuracy

Various EDI document errors

$100 per

violation/PO

Accurate UPC

▪ Correct UPC shipped

▪ Correct Product

▪ Wrong product shipped/

incorrect UPC/ISBN

▪ UPC/ISBN Mismatch

▪ UPC/ISBN not on PO

$250 per PO

V 8.0 November 2021 60

Accurate Product

Dimensions

▪ Correct Product

Dimensions as per

specification of ordered

UPC.

▪ Correct Product Volume

(based on Dims)

▪ Correct Product Weight

▪ Incorrect Product Dimensions

▪ Incorrect Product Volume

▪ Incorrect Product Weight

▪ Incorrect Carton Volume

▪ PIM Errors

$50 per UPC

Accurate Case Pack QTY

(Case Count)

▪ Incorrect case pack quantity

(case count)

$250 per PO

CASE &

PALLET LABELING

Case & Pallet Label

(General)

For both EDI/non-EDI Outer Case &

Pallet Labels:

▪ Label Missing

▪ Label Barcode Not

Scannable

▪ UPC Barcode Not Visible

$250 per PO

Inner Case/Pack Label

(for both EDI & non-EDI)

▪ No Scannable UPC barcode on

Inner Label

▪ No human readable UPC on

Inner Label

▪ QTY not indicated on Inner Label

▪ Incorrect inner case QTY

indicated

▪ Incorrect label placement (inner)

$250 per PO

Outer Case Label

(for both EDI & non-EDI)

▪ Incorrect Label format

▪ Incorrect label placement

(outer)

▪ Shipping Label Covered/Not

Visible

$250 per PO

Label Accuracy

▪ Label missing:

o Ship to/from address

o UPC/ISBN

o PO#

o Case/Pallet QTY

o HU (handling Unit) /

SSCC18 code

▪ EDI label error

▪ HU Error:

Incorrect/Mismatch/Duplicate

$250 per shipment

Cross-Dock Label

▪ Incorrect cross-dock label format

▪ Incorrect/Missing DC Dock Spot

▪ Incorrect Final Destination

Name/Address indicated

$250 per PO

V 8.0 November 2021 61

Specialty Product/Handling

Labels

Polybag Markings

▪ Special handling/stowage not

labeled/marked

▪ Required label markings missing

(i.e. FLOW THRU, SHERWAY 965,

Street Sensitive, etc…)

▪ Markings not legible/erased,

▪ Markings not written in all

required languages

▪ Expiry/Best Before dates/

Temperature Control not

indicated when required

▪ Labeling error for Assortments

$250 per PO

PACKAGING

Single SKU cartons

(applicable to General

Merchandise product only;

non Cross-Dock)

▪ Mixed UPCs in inner case

▪ Mixed UPCs or POs in outer case

$250 per PO

Inner Packaging Materials

▪ Incorrect packaging material

used

$250 per PO

Pallet Requirements

▪ Incorrect/bad pallet type

▪ Broken/Damaged Pallet

▪ Improper packing (bulk)/stacking

▪ Pallet overhang

▪ Maximum pallet height of 52

inches exceeded

$250 per shipment

Carton Requirements

• Correct Carton Weight

• Correct Carton

Dimensions

• Correct Carton Volume

(based on Case Dims)

• Correct Carton Type

• Carton Markings:

UPC/QTY

▪ Filled Carton/Case weight > 40

LBS

▪ Incorrect Carton/Case

dimensions

▪ Incorrect Carton/Case Volume

▪ Incorrect Carton Type

▪ Damaged Carton

▪ Missing Carton Markings:

UPC/QTY

$250 per PO

Pallet Shipments

Should be a pallet shipment

for single SKU pallet

▪ Missed Pallet Shipment

$250 per PO

Packaging for Specialty

Products

▪ Specialty Product not

labeled/identified:

o Fragile/heavy/oversized

o Expiration date missing on

Food/Gourmet/Cosmetic

$250 per PO

V 8.0 November 2021 62

Packaging for

Apparel/Accessories

▪ Apparel/Accessories not

individually packaged (inner

protective packaging)

▪ Mixed UPCs (non-assortment) per

inner/outer case pack

$250 per PO

Product Package Labels

▪ No UPC barcode label on

product packaging (including on

individual item protective

packaging)

$250 per PO

Package Type

▪ Unacceptable package type

▪ Bulk Vs Carton

$250 per PO

Wood Packaging

Requirements

(import vendors only)

▪ Violation of specified

requirements

(i.e. illegally harvested wood and

paper products)

$250 per PO

Price Sticker Requirements

(on customer facing

merchandise)

▪ Violation of specified price sticker

requirements (i.e. specifications,

contents, placement,…)

$250 per PO

EDI

Transacting via EDI

(i.e. EDI PO)

▪ EDI non-compliance

$250 per non-

compliant PO (non-

EDI)

DAMAG

E-

FREE

Damage-Free Shipment

▪ Damaged Shipment/product

$250 per PO

FLOW

THRU

Flow Thru (F/T) Shipment

Requirements

(where applicable)

▪ F/T pallet mixed with non F/T

▪ F/T – missing ASN

▪ F/T – partial case

▪ Other F/T error

$250 per PO

ROUTING

On-Time Booking

▪ Late Booking

▪ Missed Pick-up/ Handover to

Carrier

$250 per PO

VGM Declaration

▪ Cost of weighing container(s) at

port

▪ VGM Declaration Non-

Compliance

Actual cost incurred

per container (in

CAD)

$100 USD per

shipment

V 8.0 November 2021 63

Customs Documents

▪ For international ocean

shipments: documents

must be provided to

Delmar not later than 3

days after departure.

▪ For air and truck (North

America): the

documents are required

by Delmar prior to cargo

departure.

Required commercial documents &

Original BOL/Telex Rls not received by

Delmar prior to freight arrival in

Canada.

• Customs hold

• Yard Storage: Container +

Chassis Detention & Storage

(container)

• Yard pull/movement

(container)

$250 per PO with

late customs

documents incident

$250/day per

container

$200 per yard pull,

per container

QA issue

(as identified)

▪ Per incident/violation

▪ Other charges as

required/applicable

$250 per PO

(+ Other charges as

applicable)

PRODUCT

DATA

Accurate & Complete

Product Data

▪ Refer to Product Data

Compliance section for full detail

$50 per UPC

(exception: $100 per

UPC for missing

image)

ALL

Required Rework/Sorting

to correct non-compliant

shipment

▪ For any sorting/rework required

(at DC & Store locations)

▪ or, charged per unit (if required)

– pricing TBD

+ $75/hr

(in addition to fees

above)

6.2. MEASURING NON-COMPLIANCE & NOTIFICATIONS

Non-compliance is measured daily based on the scheduled ETA and delivered condition of the

Purchase Order. The delivery information is tracked, evaluated and measured against our supply

chain delivery guidelines. Non-compliance detections and respective chargeback amounts are

communicated weekly via email notification, details of which can also be found on our

Compliance portal (https://indigo.traversesystems.com/).

6.3. QUARANTINE

Non-compliant shipment may be placed in the DC or Store Quarantine until the error is

corrected/resolved to enable receipt of the shipment. There is, however, a DC Quarantine

Threshold of fifty dollars ($50) for the total value of the non-compliant shipment, below which the

contents of the respective shipment are disposed of to avoid inefficient use of labour and

resources.

V 8.0 November 2021 64

6.4. COMPLIANCE CHARGE DISPUTE PROCESS

Indigo allows vendors to dispute a compliance charge as follows:

• a dispute must be initiated on the Compliance portal with detail and respective

supporting documentation;

• a dispute with no detail or supporting documents will be automatically denied.

• the dispute must be initiated within 60 (sixty) days of the chargeback notification (sent to

vendor).

Examples of supporting documentation to include in a dispute:

• Reason for the dispute

• Signed delivery documentation (i.e. BOL, Packing slip, POD, …)

• For missing ASN infractions:

o the first 4 segments of the ASN X12 document; or

o ASN ID, Date ASN sent, ICN

• Emails with supporting information/details/pre-approvals

• Copy of approved PO Change Request Form

V 8.0 November 2021 65

SECTION 7 – SHIPPING GUIDELINES

The Shipping Guidelines describe Indigo’s inbound shipping processes and requirements for both

domestic and international vendors. All vendors are required to comply with these requirements

to ensure efficient and timely product flow from vendor to Indigo.

Questions regarding Indigo’s Shipping Requirements can be emailed to

[email protected].

This section includes:

1. Freight Terms and Responsibilities (summary table)

2. Inbound Shipment Requirements:

i. Packing Slip

ii. Bill of Lading

iii. Physical Presentation Requirements

iv. Routing Instructions

v. Booking a Delivery Appointment

3. Domestic Shipment Procedure (shipments originating within Canada only)

4. International Shipment Procedures & Requirements (shipments originating outside

of Canada, including from U.S.A.) – (where applicable)

V 8.0 November 2021 66

7.1. FREIGHT TERMS & RESPONSIBILITIES

The following chart summarizes the responsibilities of both the buyer and the seller for each of the

current Inco-terms (an international set of trade terms).

Incoterms 2010

Incoterms for Multi-Modal Use: EXW Ex Works DAT Delivered at Terminal

FCA Free Carrier DAP Delivered at Place

CPT Carriage Paid To DDP Delivered Duty Paid

CIP Carriage and insurance Paid To

Incoterms for Non-Containerized FAS Free Alongside Ship CFR Cost and Freight

Ocean Freight: FOB Free On Board CIF Cost, Insurance, Freight

Buyer = B Seller = S

(1) It can be stipulated with a specific instruction that the seller, at his own expense, is to be

responsible for certain loading requirements. This must be written into the contract in order for it to

be effective

(2) The named place following the INCOTERM “FCA” determines the point of transfer. If the named

place is the seller’s premise, the seller must LOAD the goods on the carrier’s vehicle supplied by

the buyer. If the named place is the carrier’s terminal, the seller must DELIVER the goods to the

Cost Headings

FCA

FAS

FOB

CFR

CIF

CPT

CIP

DAT

DAP

DDP

Loading at seller’s premises

(1)

Domestic pre-carriage/Local

Cartage

(2)

Trade documentation in country

of export

Export Customs clearance and

any duty or taxes payable upon

export

Loading at carrier’s terminal at

origin

Loading at vessel at port of origin

International freight (main

carriage)

Transport cargo insurance

Unloading of vessel at port of

destination

(3)

Unloading at destination terminal

N/A

(3)

Trade documentation in country

of import

Import Customs clearance and

any duty or taxes payable upon

import

Domestic on-carriage/Local

Cartage

(4)

Unloading at buyer’s premises

Other costs: Cost distribution according to party agreement not regulated in Incoterms

V 8.0 November 2021 67

named terminal and the buyer is responsible for payment to UNLOAD the vehicle at the carrier’s

terminal

(3) Buyer pays unloading costs unless such costs were for the seller’s account under the contract of

carriage.

(4) The point stated after “Delivered At Place” determines who is to pay the cost. If the point is

indicated as DAP (buyer’s premises), the cost is to be paid by the seller. If the trade term reads

DAP (terminal) the seller has to pay the cost to that terminal, and the buyer has to pay the cost to

the final destination.

7.2. INBOUND SHIPMENT REQUIREMENTS

7.2.1. PACKING SLIP

All shipments must be accompanied by a separate Packing List/Slip that should meet the

following requirements, at a minimum:

a. Each Packing List should contain:

• Purchase Order #

• Date of Shipment

• Ship-to Location/Address (Destination)

• List of UPC(s)

• List of Product Description(s)Total units shipped

• List of correct lot numbers (if applicable)

b. For international shipments, the Packing List must include the number of cartons per

SKU/per PO at the container level when shipping multiple containers under one MBL

(Master Bill of Lading).

c. Packing List should be easily identified on the outside of the shipment.

d. Packing List information should be accurate, reflecting the contents of the shipment.

7.2.2. BILL OF LADING

VIII. For EDI vendors, the Bill of Lading # must be included in the transmission of the ASN

(Advanced Shipment Notification).

IX. All shipments must be accompanied by a Bill of Lading.

X. Express Bills of Lading are requested whenever possible. At a minimum, the Bill of

Lading should meet the following requirements (ex. for shipping to Indigo’s Retail DC):

Shipper: Full name and address

Consignee: Indigo Books & Music Inc.

V 8.0 November 2021 68

100 Alfred Kuehne Blvd, Building #55

Brampton, Ontario

L6T 4K4, Canada

Notify Party: Delmar International Inc

6399 Cantay Road

Mississauga, Ontario

Canada

L5R 0G4

Ph.: 905-206-1166

Fax: 905-206-9925

Shipment Details: No. of pallets

Weight

Purchase Order No.

Wood Packaging

Declaration: If the shipment contains no solid wood packaging, please indicate

on the Bill of Lading:

“Shipment contains no solid wood packaging material”

If the shipment contains fully marked solid wood packaging,

indicate on the Bill of Lading:

“Shipment contains solid wood packaging materials marked in

accordance with ISPM No. 15”

Please note: For Online DC orders, please indicate Building #50.

For Store deliveries, indicate Store # and address.

7.2.3 SURRENDER OF ORIGINAL BILL OF LADING FOR INTERNATIONAL SHIPMENTS

• In order for the cargo to be released to Indigo, copies of the Original Bill of Lading must be

received by Delmar prior to delivery.

• Indigo prefers that vendors hand in the original bill of ladings (surrender) to the local Delmar

origin office and request that origin to issue a telex release to Delmar Toronto.

• Failing the above, original bills of lading are to be sent via courier to the attention of:

Chan Jagoda

Delmar International Inc

6399 Cantay Road

Mississauga, Ontario

Canada

L5R 0G4

• The Original Bill of Lading is required to be surrendered to Delmar International prior to vessel

departure.

V 8.0 November 2021 69

7.2.4 PHYSICAL PRESENTATION REQUIREMENTS

For all physical presentation requirements, including case and pallet labeling, and packaging

(inner/outer cartons/packs, pallets, etc…), please refer to the following two sections of this

manual:

• Case & Pallet Labeling Guideline

• Packaging Guideline

7.3 ROUTING INSTRUCTIONS

7.3.1 FOR INDIGO CONTROLLED-FREIGHT (WHERE APPLICABLE):

• Once your freight is ready, please complete the Freight Notification Form (see Appendix)

as per the procedures indicated in each of the following Domestic Shipments and

International Shipments sections to follow. Any questions should be directed to Delmar

International (see Contacts Section: Key Contacts – Routing).

• DAP and CIF vendors are also required to complete the Pre-Alert From (see Section 7 –

Appendix D) and email it to Delmar International at [email protected]

• If vendors are late in submitting either the Freight Notification Form or the Pre-Alert Form, a

possible delay of the shipment may occur and the product may arrive later than the

expected date (please refer to the submissions timeline on the form). This may result in

delivery refusal and/or chargeback to the vendor.

7.3.2 BOOKING A DELIVERY APPOINTMENT (AT EACH INDIGO DISTRIBUTION CENTRE)

• All deliveries to Indigo’s Distribution Centres require a pre-booked* appointment, with the

exception of courier shipments (i.e. case freight only from CANPAR, UPS, FEDEX, PUROLATOR).

(* this includes pre-arranged long standing delivery appointments for select vendors)

• Deliveries that arrive without an appointment, or ‘late’, that is, two (2) hours past

appointment time, may be refused or subject to a compliance chargeback (please refer to

the Compliance Chargeback Schedule.

• Alternatively, deliveries that arrive more than two (2) hours earlier than booked appointment

time may be refused and directed to return at correct appointment booking time.

V 8.0 November 2021 70

• Please note: when booking an appointment, the DC will appoint the next available delivery

date and time slot.

Booking an Appointment at INDIGO RETAIL & ONLINE (BRAMPTON) Distribution Centres:

• When arranging an appointment, and upon arrival at the appointment desk, the

following information is required:

o Bill of Lading Number (BOL No.) - this number will be used to confirm the

electronic receipt of the vendor’s ASN. Failure to have received the ASN could

lead to refusal of the shipment.

o Indigo Purchase Order No(s)

o Purchase Order Delivery Date(s)

o Ship-to Location/Address (Destination)

o Carrier Information

o Number of Pallets

• The Retail and Online DC appointment desk’s hours of operation are Monday to Friday,

7:00 AM – 3:00 PM (EST). Vendors/Carriers may book appointments during these hours for

subsequent freight delivery.

• Please refer to the Contact Information page in Section 6 of this Manual.

Booking an Appointment at the INDIGO CALGARY Distribution Centre:

For Courier Deliveries:

• Appointments are not required;

• The following information must accompany the delivery:

o Copy of the BOL

o List of all Purchase Order #’s

o Vendor’s Name

o # of Cartons

• UPS Deliveries are accepted from 8:30 A.M. to 6 P.M. Monday to Thursday. Deliver to

door 35.

• Upon arrival with the delivery, please call the Security Office to notify them:

(403) 523-7657 EXT 5370 Receiving Office main line

(403) 523-7657 EXT 5364 Security Office main line

(587) 222-3170 Security Cell Phone

For LTL or TL Deliveries:

• An appointment is required to be set at least 2 days in advance.

• Please submit appointment requests to [email protected]

• Deliveries will be scheduled from 8:30 A.M. to 6 P.M. Monday to Thursday.

• The following information must be sent in an email when requesting an appointment:

V 8.0 November 2021 71

o Copy of the BOL

o List of all Purchase Order #’s

o Vendor’s Name

o # of pallets

o Requested date / time

7.3.3 DOMESTIC SHIPMENTS PROCEDURE (ORIGINATING WITHIN CANADA O NLY)

Once a Purchase Order has been issued, a Freight Notification Form (see Section 7, Appendix C

(b)) must be completed and e-mailed or faxed to Delmar International at [email protected]

as advance notice for pick-up and drop-off at shipping point as follows:

Ground shipment: min. 3 business days in advance of CHO date (within North America)

Please note: If the expected product completion date is not going to be met, it is the

responsibility of the vendor to advise the Indigo Category Manager as soon as possible.

Upon receipt of the Freight Notification Form (FNF), Delmar International will contact the vendor

directly and provide routing instructions. Please note, in the absence of a prompt FNF, Delmar

may contact the vendor to request the completed form for an upcoming order.

Vendor must complete ALL fields of the freight notification form at the time of making a booking

with Delmar International, including:

• Indigo Purchase Order No.(s)

• Indigo Purchase Order Delivery Date(s)

• Ship-to Location/Address (Destination)

• Mode of Transport

• Shipment QTY

• Weight & cubic measure

All domestic shipments must be accompanied by:

• Bill of Lading (BOL)

• Packing Slip/List

For vendor-controlled freight:

All DAP and DDP vendors are required to contact Indigo’s appointment desk to schedule a

delivery. Please note all shipments require an appointment at either facility (Retail or Online).

All DAP and DDP vendors are required to have their delivery drivers wear Safety Shoes or Safety

toe caps when entering an Indigo Distribution Center (“DC”). This is a Safety Requirement. Drivers

will be refused entry into the Warehouse without Safety Shoes or Toe Caps. Additional safety

requirements may also apply as per protocol at the given time (ie use of PPE, etc…)

V 8.0 November 2021 72

7.3.4 INTERNATIONAL SHIPMENTS PROCEDURE & ADDITIONAL REQUIREMENTS (ORIGINATING

OUTSIDE OF CANADA, INCLUDING FROM U.S.A)

PROCEDURE

Once a Purchase Order has been issued, a Freight Notification Form (see Section 7, Appendix C

(a)) must be completed and e-mailed or faxed to Delmar International as advance notice for

pick-up and drop-off at shipping point as follows:

a. Ocean shipment: min. 2 weeks in advance of CHO date

b. Air shipment: min. 2 weeks in advance of CHO date (outside North America)

c. Ground shipment: min. of 3 days in advance of CHO date (within North America)

Please note: If the expected product completion date is not going to be met, it is the

responsibility of the vendor to advise the Indigo Category Manager as soon as possible.

For CIF and DAP vendors, a Pre-Alert Form must be completed and e-mailed or faxed to Delmar

International at Indigoglobal@delmar.ca

For shipments originating within North America, the vendor will be contacted directly by Delmar

International in order to coordinate shipping details; however, it is the vendor’s responsibility to

ensure the Freight Notification Form is submitted on time. Upon receipt of the form, Delmar

International will provide Routing Instructions to the vendor.

Vendor must complete ALL fields of the Freight Notification Form at the time of making a booking

with Delmar International, including:

2. Indigo Purchase Order No.(s)

3. Indigo Purchase Order Delivery Date(s)

4. Ship-To Location Address (Destination)

5. Mode of Transport

6. Shipment QTY

7. Weight & cubic measure

7.3.5 SOLAS REQUIREMENTS & VGA DECLARATION

For overseas shipments, as per the new IMO regulation titled Safety of Life at Sea (Solas) effective

as of July 1, 2016, all containers must have a declaration of the Verified Gross Mass (VGM) of the

container (including Tare of the container) or it will not be loaded on the ship. It is the responsibly

of the shipper to supply this information to Delmar International at the time of making a booking,

by filling a SHIPPER VGM DECLARATION form (either LCL or FCL). Failure to do so could result in

delayed shipments and additional weighing and holding charges, as well as the respective

compliance chargeback. Please refer to the Appendix section for the IMO notice issue May 23,

2016, and the Shipper VGM Declaration forms (LCL/FCL).

V 8.0 November 2021 73

There are two acceptable methods to obtain the VGM:

1. weigh the loaded container

2. weigh all the items loaded into the container (including dunnage, securing material, etc.)

and add the tare mass of the container to the sum of those single masses

Delmar will need from the shipper of the cargo the following:

LCL

Upon completion of packaging the shipment for transport the shipper will need to insure they

have an accurate VGM for each booking.

The shipment will need to be weighed on qualified weighing equipment (Qualified Weighing

Equipment is defined as meeting the applicable accuracy standards and requirements of

the State in which the equipment is being used.

You will then need to complete the attached document and submit it to the office with which

you made the booking prior to the cargo being delivered.

This document must be signed by a person employed by your company authorized to sign

the document.

FCL

Method 2:

As above, and add the tare which can be obtained from the imprint on the door of the container.

Complete the attached document and submit it to the office with which you made the booking,

this document should be sent when the loading of the container is complete and the seal is

placed on the container and must be received prior to the container being delivered to the

terminal. Again must be signed by an authorized person

Method 1:

Upon the conclusion of packing and sealing a container and using calibrated and certified

equipment, the shipper may weigh, or have arranged that a third party weigh, the packed

container. SOLAS Regulation, paragraph 4.1; IMO Guidelines, paragraph 5.1.1.

The scale, © weighbridge, lifting equipment or other devices used to verify the gross mass of the

container must meet the applicable accuracy standards and requirements of the State in which

the equipment is being used. IMO Guidelines, paragraph 7.1.

Whichever method is used you must then complete the attached document and submit

it to the office with which you made the booking, this document should be sent when the

loading of the container is complete and the seal is placed on the container and must be

received prior to the container being delivered to the terminal. Again must be signed by

an authorized person

05.27.2016 -v.01)

V 8.0 November 2021 74

For shipments originating outside of North America, the vendor will be provided with contact

information of Delmar’s local Origin office. The local origin office will contact the vendor prior to

the product completion date to arrange for collection.

All shipments entering Canada are subject to specific procedures and must be accompanied by

a number of documents. These documents may vary according to the type of goods being

shipped. Adherence to both procedures and proper document preparation will ensure a smooth

transaction eliminating unnecessary and costly delays at customs.

7.3.6 ORIGINAL CUSTOMS DOCUMENTS

Original Customs Documents must be sent to Delmar International as follows (soft copies are

acceptable via e-mail and can be sent to [email protected] ):

• For international ocean shipments: the documents must be provided to Delmar not later

than 3 days after departure.

• For air and truck (North America): the documents are required by Delmar prior to cargo

departure.

• Failure to deliver Customs documents on-time will result in late document and storage/yard

movement compliance chargeback as per the Compliance Chargeback Schedule.

For Purchase Orders on Letters of Credit, the original customs documents must be sent to Indigo’s

Appointed Bank prior to the departure of the shipment.

All DAP and DDP vendors are required to contact Indigo’s appointment desk to schedule a

delivery. Please note all shipments require an appointment at either facility (Retail or Online).

All DAP and DDP vendors are required to have their delivery drivers wear Safety Shoes or Safety

Toe Caps when entering any Indigo Distribution Center, as per a Safety Requirement. Drivers will

be refused entry into the Warehouse without Safety Shoes or Toe Caps. Additional safety

requirements may also apply as per protocol at the given time (ie use of PPE, etc…)

7.3.7 CANADIAN CUSTOMS CLEARANCE DOCUMENT REQUIREMENTS

INTERNATIONAL (AIR & SEA) SHIPMENTS:

All shipments entering Canada are subject to specific procedures and must be accompanied by

a number of documents. These documents may vary according to the type of goods being

shipped. Adherence to both procedures and proper document preparation will ensure a smooth

transaction eliminating unnecessary and costly delays at customs.

Requirements:

V 8.0 November 2021 75

• Customs Documents must be sent to Delmar International via e-mail and can be sent to

indigoglobaldocs@delmar.ca

• Email subject line must include Indigo PO# and ocean house bill of lading number.

• Failure to have the Indigo PO# in the subject line and ocean bill of lading number will

result in the documents being rejected.

Timing:

• International OCEAN/SEA shipments: Documents must be provided to Delmar not later

than 3 days after vessel departure.

• International AIR shipments: Documents must be provided to Delmar prior to cargo

departure

• Failure to deliver Customs documents on-time may result in late document and

storage/yard movement compliance chargebacks.

Customs document package to include:

• commercial invoice

• packing slip

• certificate of origin if applicable

• copy of house bill of lading for ocean shipments

• copy house airway bill for air shipments

Commercial invoices must include the following information:

• country of origin

• currency

• complete address of vendor

• Indigo must be shown as importer of record

• date of direct shipment

• PO number(s)

• total Shipment quantity & total unit quantity

• detailed description including UPC #

• unit price & total line value

• Incoterm

• shipments moving under pre-paid terms must show freight value

NORTH AMERICAN (GROUND) SHIPMENTS:

Requirements:

• Customs Documents must be sent to Delmar International via e-mail to [email protected]

• Must be sent a minimum of 3 business days in advance of the CHO date.

V 8.0 November 2021 76

• Email subject line must include Indigo PO#

• Failure to have the Indigo PO# in the subject line and ocean bill of lading number will

result in the documents being rejected.

Customs document package to include:

• commercial invoice

• packing slip

• certificate of origin if applicable

Commercial invoices must include the following information:

• country of origin

• currency

• complete address of vendor

• Indigo must be shown as importer of record

• date of direct shipment

• PO numbers(s)

• total Shipment quantity & total unit quantity

• detailed description including UPC #

• unit price & total line value

• Incoterm

The table below is not an exhaustive listing of documents but rather the main documents required

for the average import shipment.

Document

International

Shipments

USA

Shipments

Domestic

Shipments

Canada Customs Invoice

required

Commercial Invoice

required

Packing Slip

required

Bill of Lading

required

Form ‘A’ / Exporter’s Statement of Origin (when

applicable)

required

NAFTA Certificate of Origin (when applicable)

required

Wood Packaging Requirements

required

Letters of Credit (if required)

required

Supplier VGM Declaration (applicable to Sea

shipments only)

required

Figure 10 – Customs Documents Requirements

V 8.0 November 2021 77

7.3.8 CANADA CUSTOMS INVOICE/COMMERCIAL INVOICE

• For all commercial shipments entering Canada, a Commercial Invoice and/or Canada

Customs Invoice must be supplied. Invoices do not require signatures and may be

photocopies.

• The Commercial Invoice should include both the UPC (Item ID) being shipped, and the HS

Code (Harmonized System Code).

• A copy of a Canada Customs Invoice and instructions for completion can be found in the

Appendix section.

7.3.9 FORM “A” CERTIFICATE OF ORIGIN (FOR SHIPMENTS ORIGINATING OUTSIDE OF NORTH

AMERICA)

• Many countries throughout the world have been accorded a “General Preferential Tariff

(GPT)” by Canada. In order for importers to benefit from lower rates of duty under the GPT (if

applicable), a Form “A” Certificate of Origin or an Exporter’s Statement of Origin is required

for each import of qualifying goods.

• To qualify for GPT treatment, at least 60% of the ex-factory price of the goods packed for

shipment to Canada must originate in one or more GPT countries. As well, the goods must be

shipped directly on a through Bill of Lading to a consignee in Canada from the certified

country. Please note: GPT tariff treatment and related favourable duty rates are scheduled

to be eliminated Jan. 1, 2015. GPT was removed for certain countries, including China, but

remains in effect for many countries

• It is the sole responsibility of the exporter to determine the origin of the goods being exported

and to provide a valid Certificate/Statement to that effect. It is the importer who benefits

from the lower rates of duty (if applicable) when a Certificate/Declaration is supplied.

• If the exporter fails to complete a Certificate/Statement, all of the applicable duties on the

goods will have to be paid.

• In lieu of the Form “A” Certificate of Origin, an Exporter’s Statement of Origin may be

supplied. The Exporter’s Statement may be placed on the invoice or on a separate sheet

indicating the invoice number.

This statement must read as follows:

Exporter’s Statement of Origin

I certify that the goods described in this invoice or in the attached invoice #___________

were produced in the beneficiary country of __________ and that at least ___ per cent of

the ex-factory price of the goods originates in the beneficiary country/countries

of:_______________________.

_____________________________________

V 8.0 November 2021 78

Name and Title

_____________________________________

Corporation name and address

_____________________________________

Telephone and fax numbers

_____________________________________

Signature and date (day/month/year)

The following can be found in the Appendix section:

• A copy of a Form “A” Certificate of Origin

• Instructions for completion

• A list of qualifying countries

7.3.10 NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) (FOR SHIPMENTS ORIGINATING

WITHIN NORTH AMERICA)

Under the North American Free Trade Agreement (NAFTA), all tariffs between Canada and

the USA have been eliminated as of January 1998. In order to define those goods entitled

to the benefits of lower duty rates, a NAFTA Certificate of Origin or a NAFTA Low Value

Declaration must be made.

7.3.11 NAFTA CERTIFICATE OF ORIGIN

• To ensure that only those goods which qualify under the Rules of Origin receive the benefits

of the Agreement, a NAFTA Certificate of Origin (form B232) is required. The data to be

supplied on the Certificate is common for shipments to and from each country within the

Agreement (ie, Canada, USA and Mexico).

• A copy of a NAFTA Certificate of Origin (form B232) and instructions for completion can be

found in the Appendix section.

• It is the sole responsibility of the exporter/producer to determine the origin of the goods

being exported and to provide a valid Certificate to that effect. If the exporter/producer

fails to complete a Certificate, all the applicable duties on the goods will have to be paid.

Exporters/producers who certify goods eligible for NAFTA treatment must keep all

certification related documents for a period of six (6) years.

• Blanket NAFTA certificates can be submitted for multiple shipments of the same goods to the

same importer. The validity period of a blanket certificate in Canada is one (1) year.

V 8.0 November 2021 79

7.3.12 NAFTA LOW VALUE DECLARATION:

Certification of shipments to Canada under $1600.00 CDN in value can be performed with an

authorized signature on the commercial invoice (i.e. no Certificate of Origin is required). This

certification attests that the goods comply with origin requirements and that further processing

or assembly has not taken place in a non-originating country.

This statement must read as follows:

NAFTA Low Value Certification

I certify that the goods referenced in this invoice/sales contract originate under the rules of origin

specified for these goods in the North American Free Trade Agreement (NAFTA), and that further

production or any other operation outside the territories of the Parties has not occurred

subsequent to production in the territories

_____________________________________

Name and Title

_____________________________________

Company

_____________________________________

Telephone and fax numbers

_____________________________________

Signature and date (day/month/year)

I am the exporter of the goods ___ or producer of the goods ___.

V 8.0 November 2021 80

SECTION 8 - CONTACTS

1. DISTRIBUTION CENTRES & SHIPPING

MAILING / DELIVERY ADDRESSES

Location

Address

Retail Distribution Centre

100 Alfred Kuehne Boulevard

Building # 55

Brampton, ON, Canada L6T 4K4

Online Distribution Centre

100 Alfred Kuehne Boulevard

Building # 50

Brampton, ON, Canada L6T 4K4

Calgary Distribution Centre

5800, 79 Avenue South East,

Unit #10

Calgary, AB, Canada T2C 4S6

HOURS OF OPERATION

Location

Phone

Business Hours

Retail Distribution Centre

Bus: 905-789-1234

800-974-7381

Sunday 11:00pm– Friday 11:10pm (EST)

Online Distribution Centre

Bus: 905-789-1234 ext. 2697 or 2689

800-974-7381 ext. 2697 or 2689

Sunday 11:00pm– Friday 11:10pm (EST)

Western Distribution

Centre (Calgary)

Receiving Office: (403) 523-7657 ext

5370

Security Office: (403) 523-7657 ext

5364

Mon-Friday: 7:00 am - 2:30 pm (GMT)

APPOINTMENT DESK HOURS

Location

Phone

Appointment Desk Hours

Retail & Online

Distribution Centre

Bus: 905-789-1234 ext. 512

800-974-7381 ext. 512

[email protected]

Mon-Fri 7:00am - 3:00pm (EST)

(messages left after 12:00pm (noon)

may be returned the following day)

Western Distribution

Centre (Calgary)

Please submit appointment requests

to CDCApptScheduling@indigo.ca

Mon-Thurs: 7:00 am - 2:30 pm (GMT)

Deliveries will be scheduled Mon-Thurs

from 8:30 am to 6:00 pm (GMT)

V 8.0 November 2021 81

KEY CONTACTS

Inquiry

Contact

Phone

Business Hours

Shipping Inquiries

Routing

•

International

•

Domestic &

North America

Customs & Brokerage

Pre-Alert Forms

[email protected]

Delmar International

[email protected]

IndigoCustoms@delmar.ca

[email protected]

Fax: 905-206-9925

Fax: 514-636-1212

Fax: 905-206-9925

Monday - Friday

9:00 am – 5:00 pm (EST)

2. VENDOR COMPLIANCE, EDI, MASTER DATA, DROP SHIP

KEY CONTACTS

Inquiry

Contact

Phone

Business Hours

EDI

(Electronic Data

Interchange)

Indigo EDI Support

edisupport@indigo.ca

InterTrade Customer Support

[email protected]

InterTrade ecCatalogue

[email protected]

1-800-873-7803

Monday to Friday

9:00 AM – 5:00 PM

(EST)

Monday through

Friday, excluding

holidays)

8:30am – 8:00pm

EST

Master Data

pim@indigo.ca

Monday to Friday

9:00 AM – 5:00 PM

(EST)

Vendor

Onboarding/

Set-up

[email protected]

Monday to Friday

9:00 AM – 5:00 PM

(EST)

Vendor

Compliance

Chargebacks &

Disputes

VendorCompliance@indigo.ca

logon to the compliance portal

(24/7)

https://indigo.traversesystems.com/

Monday to Friday

9:00 AM – 5:00 PM

(EST)

Drop Ship

inquiries

[email protected]

Monday to Friday

9:00 AM – 5:00 PM

(EST)

V 8.0 November 2021 82

3. QUALITY ASSURANCE, SUSTAINABILITY, DEI & ETHICAL SOURCING

KEY CONTACTS

Inquiry

Contact

Phone

Business Hours

Senior Manager,

Product Quality

Sustainability & Ethical

Sourcing

Diversity, Equity &

Inclusion (DEI)

Kitty Tang

[email protected]

Geoff Suares

[email protected]

Madeleine

Lowenborg-Frick

[email protected]

Monday to Friday

9:00 AM – 5:00 PM

(EST)

4. ACCOUNTS PAYABLE

KEY CONTACTS

Inquiry

Contact

Phone

Business Hours

Accounts Payable

A/P - Invoice

Payment

Attention to:

(Based on Vendor

Name Alpha)

A/P Dept.

100 Alfred Kuehne Boulevard

Building # 55

Brampton, ON, Canada

L6T 4K4

Christine Morgan A-D

Lorna Bautista E-K

Genieve Carridice L-Q

Luisa Sequeria R-Z

Jadranka Markotic Thomas Allen

& UTP

Monday to Friday

9:00 AM – 5:00

PM (EST)

V 8.0 November 2021 83

SECTION 9 - APPENDICES

WOOD PACKAGING REQUIREMENTS

WOOD PACKAGING REQUIREMENTS (for Import Vendors only)

• All wooden pallets coming into Canada must conform to the Canadian Food Inspection

Agency (“CFIA”) standards.

• Canada’s wood packaging import regulations adhere to the principles of “ISPM No. 15:

Guidelines for Regulating Wood Packaging Material in International Trade” as issued in

March 2002 by the International Interim Commission on Phytosanitary Measures of the

International Plant Protection Convention.

• Importations of non-manufactured wood treated by heat treatment process (Kiln Drying)

will only be allowed from countries which have had their monitoring program (heat

treatment verification system) pre-approved by CFIA.

• Importations containing wood packaging that does not meet ISPM No. 15 standards will be

refused entry into Canada and must be returned to the country of export at the supplier’s

expense.

• Shipments arriving in North America from Offshore

• Proof of Treatment

• Upon import, proof of treatment (copy of the International Plant Protection Convention

(“IPPC”) Stamp Coding) is required to gain release from the appropriate Plant Protection

Organization of Canada, USA or Mexico.

• The IPPC symbol for treated wood packaging materials (as per Annex II of the "International

Standard for Phytosanitary Measures #15: Guidelines for Regulating Wood packaging

materials Material in International Trade"):

• Where XX represents the International Standards Organization two letter country code for

the country in which the wood packaging is produced and 000 represents the official

certification number issued to the facility producing the compliant wood packaging by the

National Plant Protection Organization and YY represents the treatment carried out (e.g. HT

for heat treated wood or MB for methyl bromide treated wood).

V 8.0 November 2021 84

Exceptions

• There are no exceptions to the policy. Non-compliant wood packaging will be ordered

“removed from Canada”. Upon request, and approval by Customs, the non-compliant

wood packaging may be separated from the shipment at an approved facility.

• All costs (cartage, unloading, reloading, fumigation of non-compliant materials, destruction

of materials, cartage back to Customs) will be the responsibility of the entity in care and

control of the shipment. Note, this is a potential option only and circumstances will be

reviewed by Customs on a case-by-case basis.

Shipments arriving in Canada from USA

• Wood packaging manufactured from wood of USA origin that has not moved

internationally is exempt from the treatment and marking requirements of Canadian wood

packaging import regulations.

• There are no requirements for treatments, marking or declaration for shipments imported

into Canada from the USA. Shipments moving through the USA for ultimate destination in

Canada are subject to full International regulations.

Shipments arriving in USA/Canada from Mexico

• The same regulations for Shipments to North America from Offshore apply to all imports into

Canada/USA from Mexico.

Exporter Declarations

No Solid Wood Packaging

• If the shipment contains no solid wood packaging a "declaration" should be stated on the

bill of lading to alert Customs/Agriculture and potentially avoid unnecessary inspections, for

example “Shipment contains no solid wood packaging materials – pallets used are

plywood”

Marked Wood Packaging

• If the shipment contains fully marked solid wood packaging, a declaration should be

provided on the bill of lading to state “Shipment contains solid wood packaging materials

marked in accordance with ISPM No. 15”.

• Detailed wood packaging information can be found at http://www.inspection.gc.ca

V 8.0 November 2021 85

Drop Test Procedures

The following describes the procedures for performing a drop test for protective packaging

according to ISTA-1A standards.

Carton Drop Test consists of a ‘10-drop sequence test.’ Package weight cannot exceed

40 lb. The test consists of a series of ten free-fall drops from heights that vary with weight

as follows:

Imperial

Metric

Package

Weight

Drop

Height

Package

Weight

Drop

Height

1 – 75 lb.

30 inches

1 – 34 Kg

76 cm

76 – 100 lb.

24 inches

35 – 45 Kg

61 cm

The test must be performed in following order:

1. Most fragile corner, if not known, at the carton manufacturer's joint

2. Shortest edge radiating from that corner

3. Medium edge radiating from that corner

4. Longest edge radiating from that corner

5. Flat on one of the smallest faces

6. Flat on the opposite small face

7. Flat on one of the medium faces

8. Flat on the opposite medium face

9. Flat on one of the largest faces

10. Flat on the opposite largest face

V 8.0 November 2021 86

FNF- OCEAN/AIR

FREIGHT NOTIFICATION FORM

Ocean & Air Freight Requests to be completed by the Vendor 2 weeks prior to shipping.

Final consignee box must be checked off, along with final Destination Calgary or Toronto.

Please submit completed form as follows:

For International (Ocean & Air): [email protected]; FAX: 905-206-9925

Date of Notification:________________

Vendor:

Consignee: (Please select one)



Indigo Books & Music Retail Distribution

Centre

100 Alfred Kuehne Blvd

Building # 55

Brampton, ON L6T4K4



Indigo Books & Music Online Distribution

Centre

100 Alfred Kuehne Blvd

Building # 50 Brampton, ON L6T4K4



Indigo Calgary Distribution Centre

5800-79 Avenue Southeast, Unit 10

Calgary, AB, T2C 4S6 Canada

Shipper (if different from Vendor):

Indigo P.O. Number(s):

Final Destination:

Contact:

Telephone:

Fax:

Email:

P.O. Completion Date: (Cargo ready date)

PO Due Date into the Indigo DC: (date of delivery

at Indigo)

Total Number of Pallets/Cases/Units:

Total Weight: __________ kg

Palletized Floor Loaded

Shipment Volume: _____________ m

Freight Terms:

EXW FOB FCA

Name of Origin Port/ Terminal: (if FOB/FCA)

Mode of Transport:

Equipment Required:

Ocean LCL Ocean FCL Air

20’ 40’ 40’ High Cube

45’ Special Equipment

V 8.0 November 2021 87

Commodity Description/Special Handling:

IMPORTANT

This document is to be filled out by ALL Vendors shipping goods destined for Indigo Books &

Music Inc. (“Indigo”). If the expected product completion date is not going to be met, it is the

responsibility of the Vendor to advise the revised date as soon as possible.

For all shipments where Indigo is responsible for freight, shipments will be arranged by Delmar

International.

V 8.0 November 2021 88

V 8.0 November 2021 89

FNF- GROUND

V 8.0 November 2021 90

PRE-ALERT FORM

Pre-Alert to be completed by CIF and DAP Vendors Only

Please email the completed document to Delmar International at indigoglobaldoc[email protected]

or fax at (905) 206- 9925

Date of Notification :________________

Vendor:

Contact:

Telephone:

Fax:

Email:

Consignee: (Please select one)



Indigo Books & Music Retail Distribution Centre

100 Alfred Kuehne Blvd

Building # 55

Brampton, ON L6T4K4



Indigo Books & Music Online Distribution Centre

100 Alfred Kuehne Blvd

Building # 50

Brampton, ON L6T4K4



Indigo Calgary Distribution Centre

5800-79 Avenue Southeast, Unit 10

Calgary, AB, T2C 4S6 Canada

Shipper (if different from Vendor):

Indigo P.O. Number(s):

Contact:

Telephone:

Fax:

Email:

ETD (Expected Time of Departure):

ETA (Expected Time of Arrival):

Vessel Name & Voyage:

Container No.(s):

Total Number of Pallets/Cases/Units:

Total Weight: _____________ kg

Palletized Floor Loaded

Shipment Volume: _____________ m

Freight Terms: (if CIF/DAP, name port/terminal)

CIF DAP

Mode of Transport:

Carrier Name & Contact:

Ocean LCL Ocean FCL Air

Truck LTL Truck FTL

Commodity Description/Special Handling:

IMPORTANT

This document is to be filled out by ALL Vendors shipping goods destined for Indigo Books & Music Inc.

(“Indigo”) and the shipper is responsible for freight charges.

V 8.0 November 2021 91

IMO SOLAS Regulation & Shipper VGM Declaration Forms

V 8.0 November 2021 92

Mandatory fields

SHIPPER VGM DECLARATION (LCL)

*Shipper/Manufacturer Company Name:

*Submission date:

*Address:

*Signature of shipper’s authorized contact:

*Authorized VGM contact:

Phone:

Fax:

E-Mail:

*Seller

Same as Manufacturer (Supplier)

(Defined as the name and address of the last known

entity by whom the merchandise is sold or is agreed

to be sold)

*Address:

Phone:

Fax:

Email:

*Delmar Booking number:

*Delmar origin office:

*Address:

*Contact Person:

*Carrier booking number:

Shipper invoice number:

Place of receipt:

Shipper P/O number:

Port of Departure:

Name of booked vessel:

Port of Discharge:

Voyage number:

Final Destination:

ETD / ETA:

Freight Terms:

Container number:

*Verified Gross Mass (VGM)

Marks & numbers

*In KG (Kilograms):

*No.& Kind of Pkg:

Description of Goods:

For bookings of multiple container please

complete and sign (Annex A)

Method 1 (by weighing)

VGM evaluation method:

(Please mark with “X”)

After a shipment has been completely packed, the

shipment can be weighed by regular equipment

(Scales, fork lift scales, crane scales, etc.).

Must meet national certification and calibration

requirements.

Method 2 (by calculation)

All packages and cargo items may be weighted

individually, incl. mass of dunnage, packing and

securing material and added to Tare weight of the

container (Tare weight for FCL shipment only).

V 8.0 November 2021 93

The duly authorized contact person of the shipper hereby certifies, that the above mentioned

shipment details are correct and consistent with the requirements of the International Convention

for the Safety of Life at Sea (SOLAS), Chapter VI, part A Regulation 2. This Verified Gross Mass

statement contains the VGM per container for FCL cargo or per shipment (for LCL cargo).

Amendments, updates and/or corrections to the verified and declared weights have to be

communicated and submitted to the responsible Delmar Ocean Freight department at least

three days prior scheduled vessel departure.

Incorrect and/or belated VGM statements may result in non-acceptance of the shipment by the

vessel operator and a delay in the originally planned schedule. Any additional cost caused by

delay due to non-acceptance of the shipment by the carrier, will be at shipper’s (VGM declaring

party) expense.

SHIPPER VGM DECLARAITON (LCL) | Page 93 of 114 | 05.20.2016 -v.01

V 8.0 November 2021 94

* Mandatory fields

SHIPPER VGM DECLARATION (FCL)

*Shipper/Manufacturer Company Name:

*Submission date:

*Address:

*Signature of shipper’s authorized contact:

*Authorized VGM contact:

Phone:

Fax:

E-Mail:

*Seller

Same as Manufacturer (Supplier)

(Defined as the name and address of the last known

entity by whom the merchandise is sold or is agreed

to be sold)

*Address:

Phone:

Fax:

Email:

*Delmar origin office:

*Delmar Booking number:

*Address:

*Contact Person:

*Carrier booking number:

Shipper invoice number:

Place of receipt:

Shipper P/O number:

Port of Departure:

Name of booked vessel:

Port of Discharge:

Voyage number:

Final Destination:

ETD / ETA:

Freight Terms:

Container number:

*Verified Gross Mass (VGM)

Seal number (if applicable):

*In KG (Kilograms):

*No. Of Container:

Description of Goods:

For bookings of multiple container please

complete and sign (Annex A)

Method 1 (by weighing)

VGM evaluation method:

(Please mark with “X”)

After a shipment has been completely packed, the

shipment can be weighed by regular equipment

(Scales, fork lift scales, crane scales, etc.).

Must meet national certification and calibration

requirements.

Method 2 (by calculation)

All packages and cargo items may be weighted

individually, incl. mass of dunnage, packing and

securing material and added to Tare weight of the

container (Tare weight for FCL shipment only).

V 8.0 November 2021 95

The duly authorized contact person of the shipper hereby certifies, that the above mentioned

shipment details are correct and consistent with the requirements of the International Convention

for the Safety of Life at Sea (SOLAS), Chapter VI, part A Regulation 2. This Verified Gross Mass

statement contains the VGM per container for FCL cargo or per shipment (for LCL cargo).

Amendments, updates and/or corrections to the verified and declared weights have to be

communicated and submitted to the responsible Delmar Ocean Freight department at least three

days prior scheduled vessel departure.

Incorrect and/or belated VGM statements may result in non-acceptance of the shipment by the

vessel operator and a delay in the originally planned schedule. Any additional cost caused by delay

due to non-acceptance of the shipment by the carrier, will be at shipper’s (VGM declaring party)

expense.

95 of 114 | 05.20.2016 -v.01

V 8.0 November 2021 96

SHIPPER VGM DECLARATION (FCL) ANNEX A

FOR BOOKINGS WITH MULTIPLE CONTAINERS

Delmar Booking number:

Shipper name:

Shipper address:

Carrier booking number:

Vessel name:

Voyage number:

ETD:

Container #

Seal #

VGM (kg)

*Signature of shipper’s authorized contact:

Submission date:

SHIPPER VGM DECLARAITON _ANNEX-A (FCL) | Page 96 of 114 | 05.20.2016 -v.01

V 8.0 November 2021 97

CANADA CUSTOMS INVOICE – COMPLETION INSTRUCTIONS

Below is a brief description of how each required data field on the Canada Customs Invoice must

be completed. The data field name as shown on the Canada Customs Invoice is in bold face,

followed by some equivalent commercial terms in parenthesis.

Field No. 1 Vendor (seller, sold by, remit to, consignor, shipper):

Must indicate the name and address of:

(a) the person selling the goods to the purchaser, or

(b) the person consigning the goods to Canada.

Field No. 2 Date of Direct Shipment to Canada:

Must display the date on which the goods began their continuous journey to

Canada.

Field No. 3 Other References:

Enter the Purchase Order Number or an equivalent number that can easily be

linked back to the order in your system.

Field No. 4 Consignee (ship to, deliver to):

Must indicate the name and address of the person (company) in Canada to whom

the goods are shipped.

Field No. 5 Purchaser (if other than consignee) (sold to, buyer):

The person to whom the goods are sold by the vendor:

Indigo Books & Music Inc.

100 Alfred Kuehne Blvd, Building #55

Brampton, Ontario

L6T 4K4, Canada

Business No.: 897152666-RM0001

Field No. 6 Country of Transhipment:

The country through which the goods were shipped in transit to Canada under

Customs control. If the shipment is from the USA indicate “n/a” in this field.

Field No. 7 Country of Origin:

For Customs purposes, the country of origin of invoiced goods is the country where

the goods are grown, produced or manufactured. The country of origin must be

stated for each item on the invoice.

Field No. 8 Transportation (Give Mode and Place of Direct Shipment to Canada)

Indicate the mode of transportation used and the place from which the goods

began their uninterrupted journey to Canada. This field should also contain the

statement “For Customs Clearance contact Indigo’s appointed Freight Forwarder

and Customs Broker”

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Field No. 9 Conditions of Sale and Terms of Payment:

Must describe the terms and the conditions agreed upon by the vendor and the

purchaser [example: Free Carrier (FCA) Carriage Paid To (CPT), Carriage and

Insurance Paid(CIP), Delivered Duty Paid (DDP), Delivered at Place (DAP), etc.].

Field No. 10 Currency of Settlement

Indicate the currency in which the vendor's demand for payment is made.

Form No. 11 Number of Packages:

Indicate the number of packages.

Form No. 12 Specification of Commodities:

The following information must be provided:

(a) Kind of Packages — Indicate the nature of the packages (e.g., cases, etc.).

(b) General Description and Characteristics — Give in general terms, description

of the merchandise (e.g. ceramic dinnerware, children’s clothing, etc.).

commercial terms (i.e. enter the products item number).

(d) Harmonized System Classification Number – indicate the ten-digit Canadian or

six-digit International classification.

Field No. 13 Quantity:

The quantity of each item included in the description field must be indicated in the

appropriate unit of measure.

Field No. 14 Unit Price (price per article, item amount):

Must provide a value in the currency of settlement (as defined under Field 10) for

each item described in the description field.

Field No. 15 Total:

Indicate the price paid or payable in the currency of settlement (as defined under

Field 10) for the number of items recorded in the quantity field when they were sold

by the vendor to the purchaser. Where there is no price paid or payable for the

items recorded in the description field, “n/a” should be indicated. Should “n/a”

be indicated in this field the statement “Value for Customs purposes only

$__________” or “Value included in above invoice amount” must be shown.

Field No. 16 Total Weight:

Show both net and gross weight.

Field No. 17 Invoice Total (total value, pay this amount):

The total price paid or payable for goods described on the invoice and/or

continuation sheet(s) if used. This field must reflect the actual value “price

payable” of the transaction between the buyer and the vendor.

Field No. 18 Commercial Invoice:

Enter the attached commercial invoice number if applicable.

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Field No. 19 Exporter (name and address), if other than vendor:

Indicate the name and address of the person or organization shipping the goods

to the consignee/purchaser.

Field No. 20 Originator (name and address):

Where the invoice is completed on behalf of a company, the name and

address of the company must be indicated. The name of the person completing

the invoice may also be indicated. This field may be left blank if this information is

provided elsewhere on the invoice.

Field No. 21 Departmental Ruling:

Give the number and date of any departmental ruling applicable to the

shipment.

Field No. 22 This field is to be checked off when the remaining fields 23-25 are not applicable.

Field No. 23 This field is completed when the following are included in the invoice total (field

17):

• the cost of transportation of the loading, unloading and handling charges and

other charges and expenses associated with the transportation from the place

of direct shipment to Canada

• the cost of insurance relating to the transportation of the goods from the place

within the country of export from which the goods are shipped

• costs, charges or expenses for the construction, erection, assembly,

maintenance and technical assistance when incurred after the importation of

the goods and are identified separately from the price paid or payable

• export packing

Field No. 24 This field is completed when the following are not included in the invoice total (field

17):

• the cost of transportation of the loading, unloading and handling charges and

other charges and expenses associated with the transportation to the place

of direct shipment to Canada

• amounts for commissions other than buying commissions

• packing costs and charges in respect of the goods and all expenses of packing

incident to placing the goods in the condition in which they are shipped.

Including the cost of cases and other containers and the cost of labour to

the place of direct shipment to Canada

Field No. 25 This field is to be completed (checked) where royalties and license fees including

payments for patents, trade-marks and copyrights are applicable and/or when the

purchaser has supplied goods or services for use in the production of these goods.

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B. CANADA CUSTOMS INVOICE (SAMPLE ONLY)

Form can be found at: http://www.cbsa.gc.ca/publications/forms-formulaires/ci1.pdf

V 8.0 November 2021 101

COMPLETION INSTRUCTIONS – FORM A

In order for a Form A to be accepted by the CSCB, it must be properly completed, as follows:

Field No. 1 Complete with the name, address, and country of the actual manufacturer or

exporter of the goods. Please do not identify a trading house, freight forwarder,

export broker, etc. The manufacturer or exporter must be located in the GPT or

LDCT beneficiary country in which the goods are being certified.

Field No. 2 Identify the consignee (name and address) in Canada.

Field No. 3 The CSCB does not consider this a mandatory field, but you may indicate the

shipping details, as far as known when Form A is completed.

Field No. 4 This field is usually left blank. However, if Form A is issued after the goods have

already been shipped, stamp or write "Issued Retrospectively."

Field No. 5 This field is not mandatory for goods exported to Canada. It is usually used to

itemize goods if Form A covers two or more categories of goods (for example, items

1, 2, 3 or items a, b, c).

Field No. 6 If the goods are crated or otherwise packaged, indicate the quantity of packages

or crates. Also indicate any markings on the crates that will be useful in cross-

referencing Form A to the Through Bill of Lading so that the CSCB officers can

establish that the form covers the goods that are physically imported.

Field No. 7 Describe the goods fully. Indicate makes, models, styles, serial numbers, or any

other relevant description. It is in the exporter's interest to give as full a description

as possible. The CSCB will not accept a Form A that cannot be matched with the

imported goods due to a vague description. It is also helpful to show the

Harmonized System subheading of the goods in this field.

Field No. 8 The origin criterion shown must be one of the following:

P means 100% of the goods produced in the GPT or LDCT beneficiary country in

question;

F for GPT, means, at least 60% of the ex-factory price is produced in the GPT

beneficiary country;

F for LDCT, means, at least 40% of the ex-factory price is produced in the LDCT

beneficiary country. The existing 40% of the ex-factory price of the goods as

packed for shipment to Canada may also include a value of up to 20% of the ex-

factory price of the goods from countries eligible for GPT;

G for GPT, means at least 60% of the ex-factory price was cumulatively produced

in more than one GPT beneficiary country or Canada;

G for LDCT, means at least 40% of the ex-factory price was cumulatively produced

in more than one LDCT beneficiary country or Canada. The existing 40% of the ex-

factory price of the goods as packed for shipment to Canada may also include a

V 8.0 November 2021 102

value of up to 20% of the ex-factory price of the goods from countries eligible for

GPT.

If any criterion other than P, G, or F is shown for goods exported to Canada, it will

be assumed that the goods do not satisfy the Canadian GPT or LDCT rules of origin

and they will not receive any tariff preference.

Field No. 9 Give the weight or other quantity of the goods. The best unit of measure to use

when completing this field is the unit of measure given for the particular goods in

the Customs Tariff (e.g. number, pairs, dozens, kilograms, litres).

Field No. 10 Cross-reference Form A to the commercial invoice. This helps the CSCB match the

form with the invoice, but it also ensures that the signing officer has verified the ex-

factory price of the proper goods.

Field No. 11 This field may be left blank. As of March 1, 1996, Canada no longer requires Form

A to be certified by a designated authority in the GPT or LDCT beneficiary country.

Field No. 12 This is the exporter's declaration that Form A is accurate and that the goods do

meet the GPT or LDCT rules of origin. Proof of origin must be completed by the

exporter of the goods in the GPT or LDCT beneficiary country in which the goods

were finished. The individual completing the Form A on behalf of the company

must be knowledgeable regarding the origin of the goods and have access to

cost of production information, should verification be requested.

V 8.0 November 2021 103

FORM A – CERTIFICATE OF ORIGIN (SAMPLE ONLY)

V 8.0 November 2021 104

V 8.0 November 2021 105

CUSTOMS TARIFF – SCHEDULE

LIST OF COUNTRIES AND APPLICABLE TARIFF TREATMENTS

Please use the following link to access a list of the countries and territories that are designated as

beneficiary countries for the purposes of the tariff treatments indicated. Tariff Treatment

abbreviations are defined in Section 27 of the Customs Tariff.

https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/current-actuel-eng.html

V 8.0 November 2021 106

COMPLETION INSTRUCTIONS – NAFTA CERTIFICATE OF ORIGIN

Field 1 Exporter's name and address

Canadian exporters or Canadian producers shipping goods to the U.S. or Mexico - State

the full legal name and address (including country and legal tax identification number) of

the exporter. The number is the employer number or importer/exporter number that

Canada Customs and Revenue Agency assigns.

U.S. exporters or U.S. producers shipping goods to Canada - State the legal name and

address (including the country and legal tax identification number) of the exporter. The

number is the employer identification number that the Internal Revenue Services of the

U.S. Department of the Treasury assigns or, if applicable, the social security number.

Mexico exporters or Mexico producers shipping goods to Canada - State the legal name

and address (including the country and legal tax identification number) of the exporter.

The number is the federal taxpayer's registry number (RFC).

Field 2 Blanket period

A certificate can apply to:

• a single shipment of goods; or

• a multiple shipment of identical goods.

A certificate that covers multiple shipments is called a blanket certificate. Field 2

indicates the starting and ending dates of the blanket period for which certification is

being made. The blanket period can last for two days to one year. It is acceptable to

have a starting date that is before the date the certificate is signed. The importer can

apply for a refund of the duty paid on goods entered on the certificate before the

certificate is signed.

A blanket certificate certifies that all goods listed in field 5 of that document that are

imported into Canada during the blanket period qualify as originating under the rules of

origin, and that those goods are eligible for preferential tariff treatment.

When goods are imported into a bonded warehouse, it is the date they enter the

warehouse that should be covered by the blanket period. The fact that accounting for

the goods and claiming a NAFTA tariff treatment might not occur until sometime later

does not affect the validity of the certificate, as long as the goods entered Canada

within the blanket period.

Field 3 Producer's name and address

State the full legal name, address (including country), and legal tax identification

number, as defined in field 1, of the person or company that produced the goods.

If the exporter is also the producer of the goods, enter "same."

V 8.0 November 2021 107

If the certificate covers goods produced by more than one company, attach a list of the

producers with the appropriate information. Cross-reference each producer with the

goods they produced, as described in field 5.

If the exporter does not wish to disclose the identity of the producer to the importer, it is

acceptable to state "available to customs on request."

If exporters do not know the identity of the producer of the goods, that usually means

that they do not know the origin of the goods, and therefore should not be completing

a Certificate of Origin. However, in rare instances, it is acceptable for the exporter to

state that the producer is "unknown."

Field 4 Importer's name and address

State the full legal name, address (including country), and legal tax identification

number (as defined in field 1) of the importer.

If there is more than one importer, state "various."

If the importer is unknown, state "unknown." This often applies when producers complete

certificates for exporters.

Field 5 Description of good(s)

Provide a full description of each good covered by the certificate. List only goods that

satisfy the NAFTA rules of origin.

The description must provide enough detail to relate the certificate to the imported

goods and to the invoice. Model and serial numbers are not required, but they can be

used as a cross-reference to the invoice and to differentiate between originating and

non-originating goods.

It is in the exporter's interest to give as full a description as possible, since Canada Customs

and Revenue Agency may not accept a certificate if it cannot match it to the imported

goods because of a vague description.

Goods that fall under the same origin criterion but under different HS subheadings (or

conversely under the same HS subheading but a different origin criterion) must be

described separately.

If the certificate covers a single shipment of a good, include the invoice number as shown

on the commercial invoice. If not known, indicate another unique reference number,

such as the shipping order, purchase order, or letter of credit number.

When necessary, attach a separate listing on a continuation sheet to the certificate to

provide a complete description of the good or goods.

Field 6 HS tariff classification number

V 8.0 November 2021 108

For each good described, identify the HS tariff classification. For most goods, identifying

the six-digit HS subheading is sufficient. For some goods, however, the specific rule of

origin (from Annex 401 of the Agreement) requires a change at the eight-digit, tariff-item

level. For these goods, identify the eight-digit tariff item of the importing country.

Field 7 Preference criteria

There are six preference criteria: A through F. Each of these preference criteria

correspond to a category of rules of origin. Since each good described in field 5 of the

certificate must be an originating good, they must each satisfy a rule of origin. The

preference criterion is essentially a code which tells both the importer and Canada

Customs and Revenue Agency which rule-of-origin category the goods satisfy.

Consequently, exporters or producers who try to identify a preference criterion without

familiarizing themselves with the rules of origin

and applying them will have a difficult

time choosing a criterion.

Criterion A corresponds to article 401(a) of the Agreement, which covers goods that

are "wholly obtained or produced in one or more of Canada, Mexico, and the United

States."

Wholly obtained or produced only refers to goods that were grown, mined, bred,

fished, extracted, etc., from a NAFTA party. The goods must be 100% NAFTA origin to

qualify under this criterion.

Simply because goods were purchased from a supplier in Canada, the U.S., or Mexico

does not mean that they are wholly obtained within the meaning of criterion A.

Criterion B corresponds to article 401(b) of the Agreement, which covers goods that

a producer makes using non-originating materials.

The non-originating materials

must meet the conditions set out in the specific rule of origin that applies, which can

be found in Annex 401 of the Agreement.

The rules of origin ensure that any non-originating materials undergo enough

processing before they can be transformed into a North American product. Most

often, the rule of origin is expressed in terms of an HS classification change. This means

that a non-originating material changes from one classification number in the HS to

another.

When the material is incorporated into the final product, in some cases the rule of

origin requires a certain percentage of the value of the goods, referred to as regional

value content, to be incurred in North America in addition to the HS classification

change. The rules in Annex 401 of the Agreement define exactly what must occur

before the good can be considered as originating.

Criterion C corresponds to article 401(c) of the Agreement, which covers goods a

producer makes using only originating materials. The difference between criteria A

and C is that the originating materials used under criterion C can have some non-

NAFTA content which has already been transformed by the producer's North

American supplier into an originating material.

V 8.0 November 2021 109

(Please note that criterion C does not necessarily mutually exclude criteria A, B, D, or

E.)

Criterion D corresponds to article 401(d) of the Agreement, which covers goods

where there is no change in tariff classification from non-originating materials to the

finished good. However, since criterion D applies only in two very limited

circumstances, its use is quite rare.

Please note that criterion D can never be used for wearing apparel provided for in

chapters 61 and 62 of the HS, or for textile articles described in chapter 63.

The types of goods that can be considered as originating under criterion D are as

follows:

• Goods which are complete except for being imported into the NAFTA

territory in an unassembled or disassembled condition can be considered as

originating. The unassembled or disassembled materials are classified in the

same heading or subheading as the assembled good, and the heading or

subheading cannot be further divided. The cost of assembling such goods in

the NAFTA territory must satisfy a regional-value-content requirement.

Please

note that this rule is limited to unassembled goods in which all the materials for

assembling the goods are included at the time the goods are imported into

the NAFTA territory. If any additional materials must be added to the non-

originating unassembled goods, the goods imported into Canada will not

qualify for NAFTA. In reality, the application of this rule is extremely limited.

• When goods produced using non-originating materials that cannot undergo

the required change because the non-originating materials are classified as

"parts" in the HS under the same heading or subheading as the finished goods,

and the heading or subheading is not further subdivided, these goods can be

considered as originating. A regional-value-content condition must be

satisfied.

Criterion E applies only to certain automatic data-processing goods. These goods are

specifically identified in Annex 308.1 of the Agreement (Table 308.1.1). Canada, the

U.S., and Mexico have agreed to reduce the most-favoured-nation (MFN) duty rate

for certain automatic data-processing equipment and parts falling into the

categories listed below. Except for category (vi) below, the goods will have their MFN

duty rates eliminated or reduced in five equal annual stages starting January 1, 1999.

For category (vi) (computer parts of subheading No. 8473.30), the three parties

reduced their MFN rate to free as of January 1, 1994.

The categories of goods covered under criterion E are:

• automatic data processing (ADP) machines;

• digital processing units;

• input or output units;

• storage units;

• other units of ADP (subheading No. 8471.90 );

V 8.0 November 2021 110

• parts of computers (subheading No. 8473.30); and

• computer power supplies.

Once the MFN duty rate has been reduced according to the staging schedule, and

all three parties have arrived at the reduced rate, these goods will be considered as

originating when traded among the three parties. Please note that under Canada

Tariff, most of these goods are duty free under the most-favoured-nation.

Criterion F applies to bilateral trade agreements between NAFTA countries. One set

of rules apply to U.S./Mexico trade, and another set of rules apply to Canada/Mexico

trade. Criterion F is not relevant to Canada/U.S. trade.

Criterion F should not be used for goods exported from the U.S. to Canada. For goods

exported from Mexico to Canada, exporters or producers should follow the

instructions below.

When agricultural goods are imported into Canada, to complete field 7, the exporter

or producer must first determine if they are originating goods under criteria A, B, or C

(criteria D and E are not relevant to agricultural goods). Then, if the goods are wholly

produced in Mexico or jointly produced Mexican/U.S. or Mexican/Canadian, it must

be determined if the goods are qualifying goods within the meaning of Annex 703.2,

section B, paragraph 14. Annex 703.2-B-14 says:

... qualifying good means an originating good that is an agricultural good except

that, in determining whether such good is an originating good, operations performed

in or material obtained from the United States shall be considered as if they were

performed or obtained from a non-party. After the exporter or producer determines

that the goods are originating and qualifying, they must determine if the goods are

subject to any quantitative restrictions when imported into Canada. If no quantitative

restrictions apply, the exporter or producer may use criterion F.

Field 8 Producer

In this field, the person completing the Certificate of Origin is telling Canada Customs and

Revenue Agency why they have the information needed to substantiate the certificate.

If the exporter is the producer of the goods, state "yes."

If the exporter is not the producer, state "no," followed by one of three possible

explanations why the exporter is in a position to certify the origin of the goods:

• "No(1)" if the origin of the goods was certified based on the exporter's knowledge

of whether the goods qualify as originating;

• "No(2)" if the person signing the certificate is relying on written information from

the producer (other than a Certificate of Origin) documenting that the

goods qualify as originating; or

• "No(3)" if a completed and signed Certificate of Origin for the goods was

provided to the exporter by the producer.

V 8.0 November 2021 111

Whether or not an exporter can use "no(1)" will depend on the specific rule of origin. If

the rule of origin requires only a tariff change, and the exporters know where the tariff

change occurs, then they can use "no(1)." However, if the rule of origin involves a

regional-value-content requirement, it is unlikely that the exporter will be able to

substantiate the certificate without cost-of-production documentation from the

producer.

If exporters cannot substantiate the origin of goods, they should not be completing a

Certificate of Origin.

Field 9 Net cost

In this field, those completing the Certificate of Origin indicate whether or not they used

the net cost method to determine the regional value content (RVC) of a good. If the rule

of origin for the goods requires the RVC to be calculated, the exporter or producer can

use two methods of calculation. One is the transaction value method, and the other is

the net cost method. This field should be completed in all cases with one of the following:

• If the exporter or producer has used the net cost method to determine the RVC,

they will indicate "NC."

• If the exporter or producer has used the transaction value method, they will

indicate "no."

• If the rule of origin for the goods does not require the RVC to be calculated, they

will indicate "no."

In some cases, when exporters or producers use the net cost method to calculate RVC,

they are entitled to average certain costs over a period of time. If they have averaged

costs, they should identify the starting and ending dates of the averaging period below

the "NC" (e.g., "02/01/07 - 31/03/07").

Field 10 Country of origin

This field has different applications for each country.

If field 10 is not completed, neither the importer nor Canada Customs and Revenue

Agency will know which of the different tariff treatments the goods are eligible to receive.

In this case, Canada Customs and Revenue Agency will expect the importer to pay the

highest applicable NAFTA duty rates.

For most goods imported into Canada, there are three NAFTA tariff treatments.

For originating agricultural and textile goods imported into Canada, the exporter or

producer should indicate either "US" or "MX" in field 10. If there is some joint production of

the agricultural or textile goods between the U.S. and Mexico, the exporter or producer

must apply the Determination of Country of Origin for the Purposes of Marking Goods

Regulations to determine whether the goods are Mexican or American.

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For all other goods imported into Canada, the exporter or producer will indicate either

"US," "MX," or "JNT" in field 10. "JNT" stands for joint production of goods between the U.S.

and Mexico. Generally speaking, using "JNT" will result in the highest NAFTA duty rate

being applied to the goods. However, some rules of origin essentially say that, if there is

joint production between the U.S. and Mexico and the contribution of one of those

countries is relatively insignificant, the exporter can claim that the goods originate in the

country where most of the production occurred. When both the U.S. and Mexico

contribute significantly to the production of the goods, the exporter must state "JNT" in

field 10. When there is joint production of the goods between the U.S. and Mexico, the

exporter or producer should see the NAFTA Tariff Preference Regulations, found in

Canada Customs and Revenue Agency Memorandum D11-4-19, Regulations

Respecting the Determination of When Goods are Entitled to the Benefit of the United

States Tariff or Mexico-United States Tariff, to determine whether they should complete

field 10 with "US," "MX," or "JNT."

Field 11 Certification

The exporter or producer completing the Certificate of Origin is strongly advised to read

the statements in field 11 before signing the certificate.

All the information in field 11 (which includes the signature area) must be completed.

In addition to being able to substantiate the origin of the goods, the person signing the

certificate should be someone in the company who is entitled to sign legally binding

documents on behalf of the exporter or producer. This is someone who has full knowledge

of the origin of the goods, and who has access to the books and records that substantiate

the claim. If the statements made in the certificate are untrue, the company could be

liable for penalties.

Update: February 17, 2005 - http://www.cbsa.gc.ca/publications/dm-md/d11/d11-4-5-eng.pdf

General Preferential Tariff (GPT)

If the 60% ex-factory price is not satisfied, or is not supported by adequate documentation, the

goods are not eligible for the GPT and a Form A should not be issued for such goods.

Least Developed Country Tariff (LDCT)

If the 40% ex-factory price is not satisfied, or is not supported by adequate documentation, the

goods are not eligible for the LDCT and a Form A should not be issued for such goods.

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C. NAFTA – CERTIFICATE OF ORIGIN (SAMPLE ONLY)

Form can be found at: http://www.cbsa.gc.ca/publications/forms-formulaires/b232-eng.pdf