J · As we begin our partnership, we furnish the information in this manual as a guideline to...

Revision: 2017-08-10

1

J.CREW

VENDOR MANUAL

August 10, 2017


2

Table of Contents Page Section 1 –Overview 3 Introduction 4 Social Compliance Program 5 Customs & Trade Partnership Against Terrorism (CTPAT) 6-11 Contact List 12 Section 2 – Purchase Orders 13 Purchase Order/Terms 14-19 Letters of Credit 20 Quick Response Program 21 +/- 20% Shift Policy 22 Overage and Shortage Policy 23-24 Late Policy 25 Purchase Order Change Notice (POCN) Procedures 26 Defectives 27-28 Liquidating Goods Procedures/ Disposition Action Form (DAF) Process 29 DAF Template 30 Bulk Swatch Process 31 Bulk Swatch Card Template 32 J.Crew Testing Program 33-38 Fabric and Merchandise Inspection Standards 39-49 Technical Package 50-84 Photo/Retail Samples 85 Photo Sample Order Form (Direct) 86 Retail Sample Order Form (Retail) 87 Photo/Retail Sample Label or Sticker 88-89 Invoice Cover Sheet 90 Invoice Procedures 91 Invoice Submission Envelope 92 Section 3 – Packing/Non-Compliance 93 Garment Labeling 94 J. Crew Canada Health Law Label 95 Non-Compliance –Chargeback Description 96 Non-Compliance-Example 98


3

Section 1 Overview

INTRODUCTION


4

Welcome to J.Crew! As we begin our partnership, we furnish the information in this manual as a guideline to J.Crew manufacturing standards, processes and procedures. The contents of this manual apply to all Agents, Vendors, Suppliers and any of its subsidiaries/divisions. While J.Crew recognizes that there are different legal and cultural environments in which facilities and offices operate throughout the world, this manual sets forth the basic minimum requirements all facilities and offices must meet in order to do business with J.Crew. We strongly encourage J.Crew Suppliers to exceed these standards and promote the best practices and continuous improvement throughout their relationship with J.Crew. This manual is located on the J.Crew Imports Website (http://jcrewimports.com) and should be distributed to all J.Crew account representatives throughout your organizations. All updates and addendums will be communicated and posted to the Website accordingly. We ask you read through all areas of this manual and direct any questions/issues to the contact person noted in each section. If there is not a suggested contact department listed or you need additional information on a topic not included in this manual, please contact the Production Department.

J.Crew Social Compliance Program

http://jcrewimports.com/


5

J.Crew is committed to a standard of excellence in every aspect of our business, including legal, ethical and responsible conduct in all of our operations. The J.Crew Social Compliance Program has been developed in order to ensure that all Suppliers are equally committed to these standards. All factories, subcontractors, vendors and agents (“Supplier”) are expected to cooperate fully in all J.Crew Social Compliance efforts. The J.Crew Social Compliance Program Supplier Guidelines set forth the fundamental requirements to which all Suppliers must adhere. The Social Compliance Program Supplier Guidelines are posted under "Downloads" on jcrewimports.com. All Suppliers to J.Crew are required to annually review and certify compliance to the Supplier Guidelines through jcrewimports.com. For any questions or comments relating to the Social Compliance program, please contact us by email at [email protected]

CTPAT – CUSTOMS AND TRADE PARTNERSHIP


6

AGAINST TERRORISM

J.Crew Group Inc. has successfully been certified for membership in the “Customs-Trade Partnership Against Terrorism” program (C-TPAT). C-TPAT is a joint government-business initiative to build cooperative relationships that strengthens overall supply chain and border security. Through this initiative, U.S. Customs is asking businesses to ensure the integrity of their security practices and communicate their security guidelines to their business partners within the supply chain. Therefore, as our business partner, we are asking you to review and confirm that you will make every effort to comply with the following list of recommendations set forth by U.S. Customs. Please do so by logging on to our J.Crew imports website (www.jcrewimports.com) and follow the instructions.

MANUFACTURER SECURITY RECOMMENDATIONS

http://www.jcrewimports.com/


7

CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT)

Develop and implement a sound plan to enhance security procedures. These are general recommendations that should be followed on a case by case basis depending on the company’s size and structure and may not be applicable to all. The company should have a written security procedure plan in place that addresses the following:

Physical Security: All buildings should be constructed of materials which resist unlawful entry and protect against outside intrusion. Physical security should include:

Adequate locking devices for external and internal doors, windows, gates, and fences.

Segregation and marking of international, domestic, high-value, and dangerous goods cargo within the warehouse by a safe, caged, or otherwise fenced-in area.

Adequate lighting provided inside and outside the facility to include parking areas.

Separate parking area for private vehicles separate from the shipping, loading dock, and cargo areas.

Having internal/external communications systems in place to contact internal security personnel or local law enforcement police.

Access Controls: Unauthorized access to the shipping, loading dock and cargo areas should be prohibited. Controls should include: The positive identification, recording, and tracking of all employees, visitors and

vendors. Procedures for challenging unauthorized/unidentified persons.

Procedural Security: Measures for the handling of incoming and outgoing goods should include the protection against the introduction, exchange, or loss of any legal or illegal material. Security controls should include: Having a designated security officer to supervise the introduction/removal of

cargo. Properly marked, weighed, counted, and documented products. Procedures for affixing, replacing, recording, tracking, and verifying seals on

containers, trailers, and railcars. Procedures for detecting and reporting shortages and overages. Procedures for tracking the timely movement of incoming and outgoing goods. Proper storage of empty and full containers to prevent unauthorized access. Procedures to notify Customs and other law enforcement agencies in cases where

anomalies or illegal activities are detected or suspected by the company. Personnel Security: Companies should conduct employment screening and interviewing of prospective employees to include periodic background checks and application verifications. Education and Training Awareness: A security awareness program should be provided to employees including recognizing internal conspiracies, maintaining product integrity,


8

and determining and addressing unauthorized access. These programs should offer incentives for active employee participation in security controls.

Once you have agreed to this, you will be asked to complete the following questionnaire which must be completed on the website and submitted back to us at your earliest convenience – please do so within 2 weeks of downloading this manual. Section 1: Manufacturer Information Name Address Email Section 2: Physical Security 1. Is the facility insured by any independent insurance company? Y N 2. If yes, please provide name of insurer and policy member. 3. If the insurance company has inspected the facility and the security controls and made a report please provide a copy of the report. If the report is dated on or after September 1, 2002 and it provides the information sought in this questionnaire, you may so indicate. You need not answer questions covered by the report unless changes have taken place. 4. Are there cameras and if so, who monitors them? Y N 5. Describe camera procedures. 6. Are locks installed on all windows and doors? Y N 7. Describe type of locks on windows. 8. Describe type of locks on doors. 9. Are locks installed on gates and fences? Y N 10. Describe type of locks on gates. 11. Describe type of locks on fences 12. Who controls access to keys? 13. Do you have an alarm system and/or employ the services of a security guard during non-operating hours? Y N


9

Please give details 14. Once unladen, is cargo stored in a segregated area? Y N 15. If cargo is stored in a segregated area, describe means of segregation. 16. Are there designated security personnel or devices in the cargo area? Y N Please describe. 17. Is private vehicle parking separate from the shipping, loading and cargo area? Y N 18. Are there communication systems in place to contact internal security or local law enforcement personnel? Y N 19. Describe the lighting in place inside and outside the facility including parking areas. Section 3: Access Controls 1. Do you identify and track all employees? Y N Describe method - badges, etc. 2. Do you record identify and track all visitors? Y N Describe method. 3. Is there an electronic identification system and are photos and fingerprints maintained? Y N 4. Is the packing area restricted to those employees assigned to work there? Y N 5. Are there designated security personnel or devices in the packing area? Y N Please describe. 6. What are the procedures for drivers? Where do they wait and is it segregated?


10

Section 4: Procedural Security 1. Is there a security officer designated to supervise the introduction or removal of cargo? Y N 2. Describe the method by which all outgoing finished merchandise is marked, counted, weighed and documented. 3. Is tamper-proof tape used to secure boxes? Y N 4. Are all cartons/merchandise weighed? Y N 5. Describe the procedures for affixing, replacing, recording, tracking and verifying seals on containers or trailers. 6. Are shortages or overages detected and reported? Y N Are they investigated? Y N If yes, bye whom? 7. Describe the procedures for reporting timely movement of incoming and outgoing freight. 8. Is storage area secured? Y N How often are these area inspected or surveilled? 9. What are the procedures for reporting any abnormalities in the movement of the cargo? 10. How are containers (full or empty) stored? Describe methods by which unauthorized access is prevented. 11. Describe the transportation tracking system in place. 12. Are containers searched? Y N


11

13. Are procedures in place to notify law enforcement agencies in cases where illegal activities are detected or suspected? Y N Section 5: Personnel Security 1. Do you conduct pre-employment screening and interviewing of prospective employees? Y N 2. Do you conduct background checks and application verifications? Y N 3. If yes, specify methods used. 4. If no, will you be implementing any form of personnel checks in the near future? Y N Section 6: Education and Training 1. Does you company provide a security awareness program to employee? Y N 2. If yes please give details of your program. 3. If no, will you be implementing any form of security training in the near future? Y N 4. Does your company offer incentives for active employees participating in security controls? Y N 5. If no, will you be implementing any incentive program in the near future? Y N


12

Contact List Following is a list of all contacts found throughout this manual:

Name Company Location Phone E-Mail

Section 2 Becky Alday J.Crew NY 212-209-8356 [email protected] Lauren Tumpney J.Crew NY 212-209-2656 [email protected] Susan Matteo J.Crew NY 212-209-2583 [email protected]

Section 3 Frank Genus J.Crew NY 212-209-8357 [email protected] Ilene Moore J.Crew NY 212-209-8380 [email protected]

Diane Teribury Avery

Dennison US 570-888-6641

(ext 2704)

Gigi Kam Avery

Dennison HK 852-3410-1338 Laura Martinez Schwarz [email protected] Wanda Tom J.Crew NY 212-209-8306 [email protected] Phil Shaw J.Crew Ash 828-687-6466 [email protected] Winnie Lee J.Crew NY 212-209-8168 [email protected] Receiving Dpt J.Crew Lynch 434-385-6700 [email protected] Receiving Dpt J.Crew Ash 828-687-3900 [email protected] LLTC Freight LLTC NY 516-577-9511 UPS Freight UPS NY-NJ 1-800-644-0900 UPS Freight UPS Canada 1-800-644-0900

Daylight

Transport Daylight

Transport

California (Beyond LA Zone) 1-800-468-9999

TTSI Freight TTSI

California (Within LA

Zone) 310-816-0260

mailto:[email protected]






13

Section 2

Purchase Orders


14

PURCHASE ORDERS

All purchases are issued on J.Crew Purchase Orders retrieved through the J.Crew Imports Website. J.CREW WILL ACCEPT NO LIABILITY FOR ANY BACK UP FABRIC OR YARN UNLESS IT WAS ORIGINALLY ISSUED ON A J.CREW PURCHASE ORDER (raw materials or garment). TERMS J.Crew (hereafter designated as the Company) issues each purchase order through the J.Crew Imports Web Site upon the following terms and conditions. Acceptance of each purchase order by the User to whom the purchase order is directed (hereafter designated as Seller), either by clicking the Accept button for the purchase order or commencement of performance by Seller, is limited to the terms, conditions and specifications set forth on the face of the purchase order and the terms and conditions set forth below. Additional terms on Seller's form are hereby objected to unless specifically agreed to in writing by an officer of the Company.

1. Any deviation from the technical package must be approved by the Company in writing before shipment.

2. No substitute of quality of findings or trimmings is permitted without approval of the Company. Any expenses which the Company may incur arising from the Seller’s failure to adhere to instructions with regard to routing, invoices, labeling, packaging, packing, and deliveries set forth in this purchase order, the Company’s Spec Sheet/Tech Package, and the Company’s Vendor

Manual shall be charged to Seller’s account and deducted from the Company’s remittances. Charges are specified in the Vendor Manual, and/or are at the discretion of the Company.

3. (A) Styles, patterns, and technical package hereon are exclusively property of the Company and shall not be shown, disclosed, or in any way publicized for breach of which, purchase price shall be regarded as liquidated damages. (B) If this purchase order deals with merchandise that bears the Company’s trademarks, trade names, copyrights, logos, pictures, or designs ("Identities"), Seller shall not sell or otherwise transfer said merchandise to third persons unless written authorization to sell has been obtained from the Company or the identities have been physically removed or completely obliterated from the merchandise to the satisfaction of the Company.

4. This is not a valid order until signed by a representative of the Company and the following stipulations are approved in writing: (A) Counter samples are approved for adherence to spec sheet/tech package, make quality, pressing, and packaging; (B) Piece goods are approved for design, color, construction weight and pass laboratory analysis; (C) Trim and accessories are approved for quality and design.

5. The Company (or its representative) reserves the right to inspect at factory, warehouse or pier prior to shipment.

6. The Company reserves the right to reject if quality is not equivalent to approval samples submitted.

7. The Company will assume no responsibility for merchandise purchased by the Company unless shipment, samples and sample yardage are shipped as stipulated in the Company’s Vendor manual.

8. When required, a valid visa must be provided indicating proper quota category and Seller’s signed statement certifying that no U.S. embargo exists on date of exportation.

9. The Seller expressly warrants that the merchandise to be delivered hereunder will conform to the approved sample and spec sheet/tech package for which the order was placed and will be of contracted material and workmanship, free from defects and merchantable. The Seller agrees that the Company shall be under no duty to inspect goods before resale and that all warranties, expressed or implied shall survive inspection, acceptance and payment by the Company and the Company’s customers. Resale, repackaging, repacking or cutting up for purpose of resale shall not be considered as acceptance of the goods, and as


15

such, is the Company’s right to reject them or to revoke any acceptance that may have been made. Complaints or notice of defects in the goods or of any other breach will be considered made within a reasonable time if made within a reasonable time after notification is given to the Company by its customers. The return of such merchandise shall not relieve Seller from liability for failure to ship conforming goods under the contract. Failure of the Company to state a particular defect upon rejection shall not preclude the Company from relying on unstated defects to justify, reject or establish breach.

10. Time is Of The Essence - Seller bears sole responsibility for late shipments regardless of cause, including act of God or other circumstances beyond Seller’s control.

11. The Company reserves the right to cancel any order or portion of order delivered late.

12. The purchase order ship date is considered firm; any deviation from said date is at the discretion of the Company.

13. The Company reserves the right to charge the Seller for expenses and lost revenues resulting from late shipments.

14. SELLER acknowledges that the delivery date inserted on the front of this purchase order is the "DELIVERY DATE". If SELLER fails for any reason whatsoever to deliver the goods in conformity with this contract on or before the DELIVERY DATE, the contract price for the goods shall be reduced prior to the shipment thereof by the amount equal to the difference between (1) the estimated cost of shipping the goods by ocean freight to the Port of Entry specified on the front of this purchase order and (2) the actual cost of such other faster means of transportation as may then reasonably be chosen by J.Crew for transportation of the goods to the Port of Entry so as to permit J.Crew to maintain its delivery schedule for the goods to the extent possible under the circumstances or (3) any other amounts agreed to by both parties.

15. This order is subject to anticipation for prepayment at 18% per annum. The right to deduct discount is reserved by the Company should payment for any shipment against this order be delayed. Discount and anticipation shall be computed from the date of receipt of goods (R.O.G.) at the Company’s premises. For purposes of this paragraph, goods received on or after the 21st of any month shall be deemed received as of the first of the following month or the date of receipt of invoice, whichever is later.

16. No change or termination of this order shall be binding on the Company unless made in writing and signed by an authorized manager. The Company’s acceptance of any merchandise not conforming to this order, or upon terms varying from those set forth herein, shall not constitute authority for subsequent shipments of nonconforming merchandise, nor shall such acceptance constitute a waiver of those or any other terms with respect to the accepted shipment or any subsequent shipment. A waiver of any term herein shall not constitute a waiver of any other term.

17. Seller agrees not to assign any rights or delegate any duties hereunder, except the right to receive payment for conforming merchandise. Any other assignment or delegation, whether by operation of law or otherwise, is void and not binding on the Company without the Company’s prior written consent. No assignment or delegation (including assignment of the right to receive payment), with or without notice, shall bar the Company from asserting against the Seller or the transferee or both any claim against the Seller whether or not arising out to this order and whether or not accrued at the time of assignment or delegation. Any adjustments made with Seller or returns made to Seller for credit shall be binding upon the assignee or delegate without notice to and notwithstanding any contrary instructions by such assignee or delegate. If Seller makes any assignment or delegation in violation of the foregoing. In addition to rights and remedies, the Company may cancel the undelivered balance of this order.

18. The Company may cancel this order in whole or in part in the event of lockout, strike, unavoidable accident, riot, war, act of God, fire, flood, earthquake or any casualty whatsoever, whether similar or different, affecting any of Seller’s or the Company’s premises.


16

19. The Seller guarantees the weights, measures, sizes, flammability and warrants that they conform to the standards of the U.S. government.

20. The Seller warrants that merchandise covered by this order conforms to, and was processed, manufactured, described, priced, labeled, sold, invoiced and shipped in compliance with all existing laws (including but not limited to the Textile Fiber Products Identification Act, Wool Products Labeling Act, Fur Products Labeling Act, Hazardous Substances Act, and Consumer Products Safety Act), regulations, orders and rulings of the Federal, State and local governments, and all agencies thereof, including but not limited to the Consumer Product Safety Commission, Food and Drug Administration, and Federal Trade Commission. The Seller warrants; A) that said merchandise is not adulterated or misbranded in any manner; B) that the fiber content of any textiles contained in said merchandise is stated accurately on all tags, labels, invoices and other documents relating to the merchandise; and C) that if said merchandise is wearing apparel, that reasonable and representative tests of said merchandise made under the procedures provided in the Flammable Fabrics Act show that the merchandise is not so flammable as to be dangerous when worn by individuals. The Seller agrees to affix to the invoice covering the delivery of said merchandise any and all certificates, duly executed by Seller in form satisfactory to the Company, which the Company may require to evidence Seller’s compliance with the foregoing. The Seller further agrees to furnish the Company with any continuing guaranty filed with the Federal Trade Commission or Consumer Product Safety Commission indicating that the products covered by this order are properly labeled in accordance with the particular law and regulations pertaining thereto. The Seller agrees to protect, indemnify and hold the Company harmless against any claim, loss, damage, charge, cost and expense, including attorneys’ fees, which may result from the Seller’s failure to comply with the foregoing. The Seller’s failure to provide any documents or warranties that the Company requests to verify or warrant the Seller’s compliance with Federal, State or local laws, rules or regulations shall be deemed a material breach of the terms and conditions of this contract. In addition, if the Seller is required by a government agency having jurisdiction under applicable Federal, State, or local law or regulations issued there under (including but not limited to any of the agencies or laws specified in this paragraph) to repurchase or accept for repair or replacement from consumers any of the Seller’s merchandise of the type delivered hereunder, then Seller shall, in addition to all other obligations Seller may have under the law and this order, reimburse the Company for the repurchase of such merchandise, plus all charges and expenses incurred by the Company, including without limitation, expenses incurred in the handling and shipment of such merchandise to the Seller and/or in the repair of such merchandise. As a company affected by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Company is required to identify the source of conflict minerals that are required for the functionality or production of J.Crew, Madewell and Crewcuts branded products. Seller agrees to notify the Company of any and all trim and material suppliers and to fully comply with the company's Conflict Minerals tracing program.

21. The Seller warrants that no printed matter or illustration of any kind, including restrictions on customers’ rights to make returns, except as required by law or approved in writing by the company, may be included anywhere in the packaging of the merchandise covered by this order, and in the event of a breach of said warranty, in addition to the Company’s other rights hereunder, the Company may, at Seller’s expense, remove such material and/or repackage the merchandise.

22. Upon the Company’s request, Seller shall immediately submit, at Seller’s expense, the merchandise ordered herein, for test laboratories of the Company’s choice. The Company’s right to make such requests shall be in addition to any rights the Company may have by law to examine such merchandise. Regardless of the results of such test or examination, the Company’s acceptance of any merchandise so tested or examined shall not be deemed a waiver of any specification or warranty expressed herein or implied by law, nor shall the Company’s failure or refusal to make such a test or other examination be deemed such a waiver.

23. Seller warrants that any merchandise delivered pursuant to this order will not infringe upon the rights of any other person, firm or corporation, and Seller agrees to indemnify and hold the Company harmless from any claim, loss, damage, charge, cost and expense, including attorney’s fees, which may result to the Company from any claim of such infringement, including but not limited to any claim of infringement of patents, copyrights or trademarks, or claim of unfair competition, whether or not the Company retains control of any litigation, including settlement, arising out of such claim.


17

24. The prices recorded on this order are not subject to any additional charges due to: A) packing or preparation for shipment, B) increased costs of operation, or because of C) any taxes or excises levied on processors, manufacturers, wholesalers or otherwise.

25. Unless otherwise stipulated, this contract is F.O.B. the Company's designated destination for domestic prepaid purchases, F.O.B. the Seller's place of shipment for domestic purchases that are not prepaid, and F.O.B. the Company's designated freight consolidator's destination for imported purchases. The Company reserves the right to designate the method of shipment to the Company's premises as well as the particular carrier or carriers who will transport the shipment. Acceptance shall not occur until the Company has had a reasonable opportunity to inspect the goods at the Company's premises whether or not the Seller was instructed to route the merchandise to a consolidation facility prior to delivery to the Company's premises.

26. Seller’s acceptance of this order shall constitute notice to Seller of the Company’s standard terms which, unless otherwise stated, shall govern all subsequent purchases made from Seller.

27. Seller agrees to notify Accounts Payable Dept. in writing within six months of shipment in every instance where an invoice is not paid. The Company shall be under no obligation to pay Seller without such timely written notification and proof of delivery.

28. No action shall be commenced by Seller against the Company for breach of contract, nor shall any counterclaim or set off be interposed by Seller, by reason thereof, including without limitation, for moneys due or to become due hereunder, or for the amount of any discounts, allowances or other deductions from remittances made on account of merchandise purchased hereunder, or disputing the Company’s right to return all or any part to the merchandise purchased hereunder or the fact of the making of such returns, unless such action is commenced or counterclaim or set off interposed within one (1) year after the same accrues.

29. In addition to any other remedy provided for herein or by law, the Company reserves the right, without liability, in addition to all other rights and remedies arising from Seller’s breach of this agreement, to purchase substitute items elsewhere and to charge Seller with any loss incurred. Any provision herein for delivery of articles in installments shall not be construed as making Seller’s obligations severable. Shipments sent COD without the Company’s written consent will not be accepted and will be at Seller’s risk.

30. Seller will indemnify and hold harmless the Company and its affiliates, agents and employees from and against any and all claims, loss, liability or damage, including attorneys’ fees and costs of settlement, which shall arise out of or result from any of the following: (A) any injury to persons or property arising or resulting from any actual or alleged defect in the merchandise or act of omission of Seller or Seller’s agents, employees or subcontractors with respect to the merchandise; (B) the alleged existence by any third party of any state of facts concerning the merchandise which if tried would constitute a breach of any representation, warranty or other obligation of Seller under this contract. Even if Seller cannot be identified specifically as the Seller of particular merchandise containing an actual or alleged defect, Seller will indemnify the Company if Seller can be identified by the Company as having been one of several Sellers of similar merchandise.

31. The Company reserves the right at any time to make changes in any one or more of the following: (A) specifications for materials to be provided; (B) methods of shipment or packaging; (C) place of delivery; and (D) time of delivery. If any such change causes an increase or decrease in the cost or time required for the performance of this purchase order, an equitable adjustment shall be made in the purchase order, price or delivery schedule, or both. Any claim by Seller for adjustment under this clause shall be deemed waived unless asserted in writing within ten (10) days from receipt by Seller of the Company's change. Price increases or extensions of time for delivery shall not be binding on the Company unless evidenced by a purchase order change notice signed by the Company.

32. Confidentiality Agreement. This Paragraph 32 of this purchase order shall be hereafter referred to as the “Confidentiality Agreement”. The Company is furnishing and providing Seller access to certain confidential, proprietary and/or trade secret information in connection with the manufacture of certain of its


18

merchandise and/or packaging and/or labels (the “Services"). Certain of the information furnished to Seller, merchandise and/or packaging and/or labels manufactured by Seller, or otherwise accessed by Seller whether before or after the date of this purchase order (including, without limitation, financial information; sales data; technical data; technology know-how and systems; designs and product information; spec sheets; samples; sketches; marketing strategies and plans; business relationships and methods of transacting business; store information; customer information), will be confidential, whether so designated explicitly by the Company, because of the manner in which it is treated by the Company or because of mutual understanding between us. Such information may be in written or electronic form or may come to Seller through discussions with representatives of the Company or through Seller’s observation or inspection of the Company’s property and will be referred to herein as “Confidential Information”. Confidential Information shall not include information that: (a) was available to Seller on a non-confidential basis prior to it being furnished to Seller by the Company; (b) is or becomes available to the public through no act or failure to act or failure on Seller’s part; or (c) becomes available to Seller on a non-confidential basis from a source other than the Company (provided that such source is not known to Seller to be bound by an obligation of confidentiality to the Company in respect of such information).

Unless disclosure is consented to in writing by the Company, Seller will keep the Confidential Information strictly secret and confidential, and Seller will not use the Confidential Information for any purpose other than in connection with the Services. Seller may disclose any of the Confidential Information to Seller’s employees who need to know such information in connection with the Services (the “Employees”); provided that (a) Seller shall inform such Employees of the confidential nature of such information and shall cause such Employees to treat such information confidentially; and (b) in any event Seller shall be responsible for any breach of this Confidentiality Agreement by any of Seller’s Employees. Promptly on the request of the Company, Seller and Seller’s Employees will deliver to the Company all Confidential Information in Seller’s possession or control, without retaining copies thereof, and will destroy any designs, blueprints, sketches, drawings, images, useful ideas, written notes, samples, patterns, sketches, technical information, images and all other materials and documents incorporating any Confidential Information. In the event that Seller or any of Seller’s representatives is requested or required (by oral question or request for information or documents in legal proceedings, interrogatories, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, it is agreed that Seller will provide the Company with prompt written notice of any request or requirement so that the Company may seek an appropriate protective order and/or waive Seller’s compliance with the provisions of this Confidentiality Agreement. It is further agreed that if in the absence of a protective order or the receipt of a waiver hereunder Seller or any of Seller’s representatives is nonetheless, required to disclose information concerning the Company to any tribunal or else stand liable for contempt, Seller or such representative may disclose such information to the tribunal; provided that Seller shall use reasonable efforts to obtain, at the request of the Company, an order or other reasonable assurance that confidential treatment will be accorded to such portion of the information required to be disclosed. Seller or such representative shall not be liable for the disclosure to such tribunal unless such disclosure was caused or resulted from a previous disclosure by Seller or any of Seller’s representatives not permitted hereunder. Seller acknowledges that all designs, blueprints, sketches, drawings, images, useful ideas and any merchandise, accessories or products developed, generated, manufactured or produced by Seller or Seller’s Employees, in whole or in part, in whatever form, in connection with the Services will be considered a “work made for hire” under U.S. copyright law and all other intellectual property laws and shall be the Company’s sole and exclusive property, in and to which the Company shall have exclusive right, title and interest. At the Company’s request, Seller agrees that Seller will execute such applications, instruments and documents as the Company may request to confirm the Company’s exclusive ownership of all right, title and interest in and to such materials, including, without limitation, all copyrights, trademarks, designs and patents (and the right to file applications therefore and renewal, modification and reissue rights).

It is further understood and agreed that money damages would not be a sufficient remedy for any breach or threatened breach of this Confidentiality Agreement and that the Company shall be entitled to specific performance and injunctive or other equitable relief as a remedy for any such breach, and Seller further agrees to waive any requirement for security or posting of any bond in connection with such remedy. Such remedy shall not be deemed to be the exclusive remedy for breach of this Confidentiality Agreement but shall be in addition to all other remedies available at law or in equity to the Company.


19

No patent, copyright, trademark, trade secret, or other intellectual proprietary right is licensed, granted or otherwise transferred by execution of this Confidentiality Agreement or by disclosure of any Confidential Information hereunder. COMPANY DISCLAIMS ALL WARRANTIES REGARDING THE CONFIDENTIAL INFORMATION, INCLUDING ALL WARRANTIES WITH RESPECT TO INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS AND ALL WARRANTIES AS TO THE ACCURACY OR UTILITY OF SUCH CONFIDENTIAL INFORMATION. The failure of the Company to enforce any provision, right or remedy under this Confidentiality Agreement shall not constitute a waiver of such provision, right or remedy. This Confidentiality Agreement is governed by and construed in accordance with the laws of the State of New York without regard to its conflict of laws provisions. If any provision of this Confidentiality Agreement is invalid or unenforceable, the balance of this Confidentiality Agreement shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.

33. This purchase order shall be construed and enforced in accordance with the laws of the State of New York, without reference to principles of conflicts of law. Seller consents to the exclusive jurisdiction of the courts of the State of New York located in New York County and the Federal Courts located in such state and county with respect to any disputes between the parties concerning this purchase order or performance hereunder.

34. If any part of this purchase order shall be held invalid or void for any reason, the remainder of the purchase order shall have full force and effect.


20

LETTERS OF CREDIT

It is J.Crew’s policy that Letters of Credit will be opened 12 days prior to the scheduled ship date. Fee to be collected by the back on behalf of J.Crew: 2% of the face value of the LC, minimum of USD 250.00 and USD 250.00 fee per LC that is issued. The LC number will be posted to the J.Crew Imports website the day before the LC is sent to the bank. The basic clauses (requirements) that will be in our Letters of Credit are (these requirements vary by country): 1. One photocopy of the signed commercial invoice, which includes manufacturer’s identification code (MID), name and address of actual manufacturer. 2. Packing List from the J.Crew Imports Website (Must show cartons, gross weight, & measurements). This packing list is to be printed from J.Crew’s Website. Link is as the following: http/www.jcrewimports.com/packinglist/dbengine/tblasnprint.asp 3. Forwarder’s Cargo receipt - in absence of J.Crew’s designated freight forwarder, we will accept a freight/airway bill consigned to J.Crew Group, Inc. 4. Inspection certificate issued by J.Crew agent 5. Transferable Letters of Credit 6. Irrevocable Letter of Credit 7. Visa of the country of origin required, if visa is required by US Customs Vendor or agent must send the full name and address of beneficiary and their bank as it is to appear on the Letter of Credit to Becky Alday at J.Crew ([email protected]). Please be sure that you review and understand the above. If you have any questions, please contact your authorized agent or [email protected] for further clarification.


21

QUICK RESPONSE PROGRAM

In an effort to manage inventory levels, track best sellers and ensure that we remain in line with our business model, J.Crew will require that all Agents/Vendors comply with a Quick Response program. As we continue to develop our strategic partnership, it is imperative that we team with vendors who are able to accommodate the needs of our business. J.Crew will place all buys as per our corporate product development calendar and advise which styles are in need of a Quick Response program to back-up the demands of the business. It is crucial that Quick Response is discussed during the development process to ensure we meet all expectations. J.Crew requires that all Quick Response programs meet a turn time of 75-90 days without prior placement to minimize the possibility of any liabilities.


22

+/-20% SHIFT POLICY

In an effort to manage inventory levels, track best sellers and ensure the we remain in with line with our business model, J.Crew will require that all Agents/Vendors comply with the +/- 20% Buy Shift Policy on all initial buys. As we continue to develop our strategic partnership, it is imperative that we team with vendors who are able to accommodate the needs of our business. J.Crew will place all buys as per our corporate product development calendar and reserve the right to revise these initial placements by shifting quantities by +/- 20% without any liability 3 weeks post Final Floor Set Meeting schedules. It is crucial that this policy is discussed during the development processes to ensure we meet all expectations.


23

OVERAGE AND SHORTAGE POLICY

J.Crew (Retail, Direct and Factory) will accept a maximum of +/- 3% overage/shortage per PO with units of 500 and over. Anything under 500 pieces for J.Crew (Retail, Direct, and Factory) we will continue to accept a maximum of +/- 5% overage/shortage per PO. This will be implemented for Spring 2011 and forward. Madewell, Crewcuts and Branded vendors we will continue to accept a maximum of +/-5% overage/shortage per PO. Overages (out of tolerance) for both Retail/Mail-Order POs: -POCNs are required for ALL overages out of tolerance. -Overages will ONLY be accepted upon Production/Planner written approval. -Upon written approval, a POCN request for PO update will be posted to the POCN chart. Shortages (out of tolerance) for Retail POs: -POCNs are ONLY required at the Production/Planners discretion. (FYI: ONLY shortage information advised by the Vendor 30 days before the PO date (exdate) will be considered for a POCN issuance). Shortages (out of tolerance) for Mail-Order POs: -POCNs are required for ALL shortages out of tolerance -Shortages are to be advised by the Vendor at least 10 days* before the PO date (Ex-date) to minimize the POCN chase * in the case of garment wash programs, shortages may be less than 10-days as the finish process timeline is limiting All shortages that exceed the allowed tolerance and not issued as a POCN will be put on an adjustment memo by J.Crew receiving warehouses in Lynchburg/Asheville. Any adjustment memo under $50 will be sent to or collected from our Vendors. On a weekly basis, all adjustment memos, which written by Lynchburg/Asheville, will be sent to the New York Vendor Relations Controller. There is no reason to use L/C numbers. This should be done as follows:

a. All copies sent to New York. b. Each adjustment memo # and vendor should be logged on the master sheet

and sent to New York with sequenced number on the master sheet. c. New York will confirm receipt via email. d. New York issue vendor/agent form letters each week or bimonthly

according to volume with the adjustment memo. New York will send A/P their copies to input into the system.


24

e. A copy of the OS&D report must be sent with each adjustment memo. The adjustment memo will go directly into the system to hold payments on samples or other payments. If there are not enough outstanding invoices owed by J.Crew, we will ask for vendor payment in (30) days by check or wire transfer.

We will send the adjustment memo with a copy of our coverage, shortages, and damage report (OS&D report) showing the shortages. This will show shortages by carton, but based upon “J.CREW AUTOMATIC RECEIVING CARTON NUMBERS.” Any shortage over 5% of order will be detailed with vendor’s carton numbers, receive special handling and be sent to the proper Production person for investigation. The vendor controller will only keep copies of the form letter with adjustment memo numbers on file. All back up will be kept on file in A/P. Any paperwork needed by the Import Department will be copied and sent to imports weekly for duty refunds. Only the Vice President of Manufacturing can override any adjustment memos through the Vendor Relations Controller.


25

LATE POLICY The following is the J.CREW Late Delivery Policy for all J.Crew POs and divisions: The purchase order ship date is acknowledged as the "hand-over" date to the consolidator. (applicable to all types of orders: FOB, LDP and Domestic orders). It is the Agent/Direct Vendor's responsibility to notify the Production Department of any delays as soon as the delivery is in jeopardy (i.e.: late pcgds, quality issues, late fittings, late breakdowns and any other such issues). The delay MUST be communicated when the issue occurs and not at or after the ship date. J.CREW will not accept any late deliveries without exercising (1) of the following options (including purchase orders that may be in-transit): a) Cancellation of purchase order (all or partial) b) Discount of 1% per day past the purchase order ship date

c) Air transportation* at suppliers expense (POCN must be issued to reflect transit mode change and reduction of fob price for air/sea difference costs**). d) Air transportation* and Discount of 1% per day past the purchase order ship date if airing does not meet the requested ETA date.

*Overnight air may be requested during peak seasons on carriers such as FED-EX and DHL determined by J.CREW. **Air/Sea difference costs are determined by the J.CREW Air/Sea Difference Chart ONLY (Located in the Downloads section on J.Crew Imports website. Login is required to access this page). POCNs are NOT needed for accepted delivery delays of 1 day or less, BUT this information MUST be communicated to Production for approval. Failure to advise this information will result in either a freight forwarder refusal of merchandise AND/OR holding of payment. All delivery extensions GREATER than 2 days MUST have a POCN regardless of vessel schedules. J.CREW will issue a POCN within 2 business days of written confirmation. If a POCN is NOT received within this time frame, it is the responsibility of the Agent/Direct Vendor to notify the planning department heads with a "CC" to the Production contact. If a POCN is not issued, the L/C will not be negotiated until it is issued and received by the bank.


26

POCN (PURCHASE ORDER CHANGE NOTICE) PROCEDURES Effective 9/25/00

The following is the J.Crew POCN Process for Direct, Retail and Factory divisions: -POCN requests MUST be sent on the J.Crew POCN template (standardized form) to the Production department every TUESDAY (NY Time). All POCN requests MUST be submitted on this template or the request will be void. Production will review, confirm or further inquire on the request in advance of passing onto Planning for POCN entries/transmittals. -Upon confirmation of the POCN request by the Production department, all POCNs will then be issued/transmitted by Planning within 48 hours (as in the Late Policy, please contact the Planning department heads and a "cc" to Production if a POCN is not received). -Urgent POCNs should be sent as needed and not held for the next TUESDAY submit. -This is ONLY a communication vehicle and NOT a chart. As POCNs are issued, the information is to be removed, unless it remains outstanding during the negotiations. -All price change POCNs will be issued at the time of fit approval. Ex-dates, FOB point, C/O/O, Transit Mode, Color, Size POCNs MUST be issued at the time of the change. -Department name MUST appear in the header (i.e.: Durable Wovens) and ONLY one division is to be posted per template as combined divisions will void the submit. -POCN Template Instructions (by column #) 1. Date of Sending (to be filled in by Agent/Direct Supplier) 2. Vendor (to be filled in by Agent/Direct Supplier) 3. Style # (to be filled in by Agent/Direct Supplier) 4. Description (to be filled in by Agent/Direct Supplier) 5. PO# (to be filled in by Agent/Direct Supplier) 6. Color Name (to be filled in by Agent/Direct Supplier) 7-8. Cost Change original/revised (to be filled in by Agent/Direct Supplier) 9-10. Ex-date Change original/revised (to be filled in by Agent/Direct Supplier) 11-12. Units Change original/revised (to be filled in by Agent/Direct Supplier) 13-14. C/O/O Change original/revised (to be filled in by Agent/Direct Supplier) 15-16. FOB Point Change original/revised (to be filled in by Agent/Direct Supplier) 17-18. Transit Mode Change original/revised (to be filled in by Agent/Direct Supplier) 19. Agent/Direct Supplier Comments (to be filled in by Agent/Direct Supplier) 20. Production Remarks (to be filled in Production) 21. Planning Remarks (to be filled in by Planning)


27

DEFECTIVES Effective immediately, the following procedures will be in effect. In the event a P.O. fails QC and generates a 100% audit; the following procedures will take place upon completion of the audit: Production with merchandising will initiate all 100% inspections. It is production’s responsibility to negotiate a settlement within the guidelines below. J.Crew will not accept discounts on future orders (see point 14 on Import Vendors). Domestic Vendors:

1. All defective merchandise will be placed in RTV.

2. A charge back will be automatically generated from the respective warehouse including the cost of inspection and any refurbishment, repacking, defective samples, etc. and any other charges.

3. A copy of the full audit will be included with the charge back.

4. Defective samples and a copy of the audit will be forwarded to the agent/vendor

from the warehouse.

5. All chargebacks/audit results will be sent to Vendor Relations-New York Finance for sign-off from production.

6. Vendor Relations-New York Finance will prepare a debit note based upon the

audit result, for refurbishment, repacking charges, and inspection fees only.

7. Vendor Relations-New York Finance will log and forward to A/P New York weekly, all debit notes with supporting documentation.

8. A/P New York will match all debit notes with its supporting defective tracking

form and process charge backs against vendor’s accounts on a timely basis.

9. Vendor Relations-New York Finance will forward a copy of all debit notes, charge backs, and audit results to their respective vendors.

10. There is no minimum of RTV quantity.

11. Only the Vice President of Manufacturing can override any charge backs.


28

Import Vendors:

1. All defective merchandise will be placed in job lot pending to await disposition by Vendor Relations-New York Finance (weekly recap meeting with all players).

2. A charge back will automatically be generated from the respective warehouse

including the unit landed cost, cost of inspection, and any refurbishment, repacking, defective samples, etc. and any other charges.

3. Defective samples and a copy of the audit will be forwarded to the vendor from

the warehouse.

4. The vendor has two choices: a. Return goods from J.Crew to vendor including freight in and freight out. b. We will deduct 100% of the FOB and sell off the goods to recoup duty

and shipping costs. This rate is the normal rate for defectives and is not negotiable.

5. A copy of the full audit will be included with the charge back.

6. All charge backs and audit results will be sent to Vendor Relations-New York

Finance for sign-off from production.

7. Vendor Relations-New York Finance will prepare a debit not for all charges.

8. Vendor Relations-New York will log and forward to A/P New York weekly, all debit notes with supporting documentation.

9. A/P New York will process all charge backs against vendor accounts within 5

working days of receipt.

10. Vendor Relations-New York Finance will forward a copy of all debit notes, charge backs, and audit results to their respective vendors.

11. Job lot pending will be audited every 30 days. No defective receipt can stay in

job lot pending for more than 30 days without a disposition.

12. Any import defective receipts under 2% of an order or $1000 whichever is less, will not be charged back to the vendor and will go directly to tent sale (This means unless goods receive 100% inspection, no debit notes will be released).

13. Only the Vice President of Manufacturing can override these debit notes.

14. Payments by check or wire payment is only acceptable. There is no reduction in

future prices on future orders. We will check aging monthly.


29

LIQUIDATING GOODS PROCEDURES

J.Crew products CANNOT be sold, transferred or disposed of in any way without prior written permission of J.Crew. At such time, we will require the complete removal (the mutilation of the label and/or identification by stamping, cutting or other method is not acceptable) of identification including labels, hangtags, logos, etc. Exceptions to this policy must be authorized in writing by a Senior Vice President of J.Crew. Any violations of these policies by you or your subcontractor will cause J.Crew to pursue any and all possible legal remedies, including, but not limited to, injunctive relief, damages and recovery of costs and expenses, including legal and investigative expenses. If there are any questions please call (212) 209-2656.

DAF (DISPOSITION ACTION FORM) PROCESS Effective 4/01/01 – Updated 3/08/02

Upon a J.Crew request and approval for a PO cancellation with liability, a DAF form (#JCT-01) is completed by the Agent or Vendor for reconciling payment. Within 30 days of receiving written confirmation from J.Crew Production and a POCN from Planning to cancel a PO with liability, the Agent or Vendor submits the following to Production for payment of agreed liability:

1. DAF form (#JCT-01) 2. Invoice (issued to J.Crew for DAF amount) 3. Supporting documents of original purchases of material(s)

DAFs will NOT be processed if incomplete, on incorrect form, submitted without sell-off amounts and/or proof of liability (i.e.: Invoices of purchase, etc.), and/or for cancelled materials being used on subsequent POs or in future seasons. Upon receipt of these documents, J.Crew Production will obtain required signatures and pass onto Production Operations Department for posting and Accounts Payable processing (48hour turn-time). DAFs are payable Net 60 days from Invoice date (document #2 above).


30

DAF (DISPOSITION ACTION FORM) TEMPLATE #JCT-0 Effective 4/01/01 – Updated 3/22/02

Issuance Date:

Season: Debit#

Area: Debit # issued by Agent/Vendor

Classification:

Style#(s)

Description:

PO#(s)

Agent Name:

Vendor Name:

DAF Payable to:

Deposition Details: MUST be specificDetails Color Names Color Codes U.O.M Unit Cost Extended Cost

* Sell-Off Agreement Amounts MUST be included for re-imbursement.

DAFs MUST be accompanied by an Invoice to J.Crew and supporting documents that prove original purchase of material(s)

DAFs are payable Net 60days from Invoice date.

Reason for Cancellation: Agent/Vendor Rep Name Date

Agent/Vendor Rep Sign Date Senior Merchant Date

(Signature confirms DAF agreement and cost) Senior Planner Date

For J.Crew AP Use Only Head of Production Date

C.F.O. Approval DateSVP of Production Date(Signatures confirm cancellation w/ liability)

J.Crew Approval:Agent/Vendor Confirmaton:

Total LiabilitySell-off Agreement (by Agent/Vendor/Mill)*

Net Liability


31

BULK SWATCH PROCESS

Bulk Swatch Cards are to be submitted to ensure the correct color references are on-hand for the use of the J.Crew Print Production and Warehouse Quality Control Departments. Please note the following process: 1. Bulk Swatch Cards are required for Mail Order colors (styles) ONLY. 2. (7) Bulk Swatch Card sets MUST be submitted to J.Crew Production for each of the

required styles 75 days before the ETA date. 3. The attached/enclosed template is a J.Crew standardized format to be used by all

Vendors. This template MUST be converted into cardboard material for a more sturdy hand.

4. The template size MUST be 8.5” x 11” (maximum size requirement). 5. All Bulk Swatch Card templates MUST be filled out in entirety by the Vendor. 6. The Bulk Swatch Cards MUST be made from bulk materials. 7. All affixed Bulk Swatch Card materials (fabric/knit downs/hides) MUST be 2” x 2” in size. 8. Each Bulk Swatch Card MUST include any trim detail such as neck tipping, linings, etc. and full repeats of all patterns and prints. If repeats exceed 2” separate cuttings must be submitted for actual size. 9. Extended sizes (big/tall, petite, etc.) and styles sharing the same palette should be noted on the same swatch card as the base style (to minimize duplicated efforts).

Bulk Swatch Cards are important to ensure that bulk colors are accurately represented throughout all J.Crew channels. This requirement is for all Vendors and may result in a non-compliance charge back if Bulk Swatch cards are not received by the specific due dates.


32

BULK SWATCH CARD TEMPLATE

Page _____ of ______ STYLE # ____________________ STYLE # (sharing same palette)___________

STYLE # (B&T/Petite/Missy)_____________

Edition:_______________________________________Part # 1 (To be Filled out by Agent/Direct Vendor)

AGENT:_________________________________________ DESCRIPTION_________________________________________

SEASON_____________________________ ETA DATE of COLOR________________________VENDOR:___________________________________________

DUE DATE of COLOR________________________PRODUCTION CONTACT_______________________________ (75 days before ETA DATE)

Part # 2 (To be Filled out by Agent/Direct Vendor) Color Name__________________ Color Name__________________

Code________________________ Code________________________

Shell ___ Lining ____ Trim ____ Shell ___ Lining ____ Trim ____ (check one) (check one)

Color Name__________________ Color Name__________________

Code________________________ Code________________________

Shell ___ Lining ____ Trim ____ Shell ___ Lining ____ Trim ____ (check one) (check one)

Part # 3 (To be Filled out by J.Crew Production Associates) PRODUCTION INITIALS________________ Extention # _______________________ DATE SUBMITTED_____________________________(Indicates Approval for Submission)


33

J.CREW TESTING PROGRAM As a J.Crew supplier, you are fully responsible for insuring that all products are in compliance with all applicable laws, rules, guidelines and regulations, as well as J.Crew’s quality standards. All products must be tested prior to shipment at a J.Crew approved laboratory. You cannot ship without a passing or upgrade to pass test result. Failure to comply will result in a financial penalty.

Testing Protocols The J.Crew Testing Protocols list testing requirements and test methods for all products. If your product does not fit into one of these categories, please contact the J.Crew Testing & Standards Manager. Test results are valid for one year, however, if there are any changes in construction details or color a retest must be conducted. Testing should take place as early as possible in the development cycle or a minimum of thirty days prior to x-factory. Our lab network is committed to providing you full service within 3 - 4 working days of receipt. The lab will bill you directly for the cost of this testing. Prices have been established worldwide at costs that are substantially lower then the local pricing. For a detailed price list please contact one of the approved lab sources nearest your locale. The cost is minimal compared to the benefits and service it provides you as a J.Crew supplier. If your product does not meet requirements, you will need to correct and re-submit for testing unless it falls within J.Crew’s or commercially agreed upon tolerances. It is not necessary to send J.Crew copies of test reports. All reports are sent to the J.Crew Testing & Standards Manager directly from the lab. Test report status can be found on the J.Crew test log (please allow up to 24 hours from when the report was issued).* Test Request Form It is mandatory that a J.Crew test request form accompanies the samples sent to the lab for testing. Using this form alerts the lab that the submit is for J.Crew and insures that the correct procedure is followed, including entering the information onto the J.Crew Test Log. Using the form also allows the submitter to receive the J.Crew discounted price. J.Crew 5-digit style numbers must be included on the form, as well as the name of the agent (if applicable). Testing will be delayed if this information is not provided.* *Please refer to separate section under packing list/download section for J. Crew Testing Standards and products.


34

Fabric Testing

Fabric testing must take place prior to shipping from the mill. Samples in all colors from the first bulk lot should be submitted to a J.Crew approved laboratory. One color must be tested to the full testing package and all additional colors require colorfastness testing only. The cost of fabric testing is the responsibility of the mill/fabric supplier. Fabrics that are part of a garment washed program must also be submitted for fabric testing after wash. This testing is the responsibility of the vendor/factory.

Garment Testing Garment testing must take place prior to shipment from the factory. Samples in one color must be tested to the J.Crew full garment test package and must reflect bulk quality fabric, trim, components and finishing (i.e. garment wash). If there are color combinations that contain contrast (dark & light) color combinations then samples should be sent to the lab for additional colorfastness to laundering testing. Full garment samples are not needed for this additional testing (mockups are acceptable). The cost of garment testing is the responsibility of the vendor/factory.

Accessories Testing Testing must take place prior to shipment from the factory. Samples in one color must be tested to the full test package. Additional colors should be submitted for colorfastness testing and additional testing as necessary. All testing costs are the responsibility of the vendor. Approved Laboratories All testing must be conducted by a J.Crew approved independent testing laboratory. Only the locations listed have been approved to perform J.Crew fabric, garment & accessory testing.


35

CREWCUTS CHILDREN’S SLEEPWEAR GUIDELINES

Sleepwear is defined by the Consumer Product Safety Commission as any item that is either intended to be worn primarily for sleeping or activities related to sleeping. This includes pajamas, nightgowns, robes and similar items including loungewear. The CPSC is a U.S. government agency that protects the public from unreasonable safety hazards, including setting guidelines for children’s sleepwear. All children’s sleepwear must be either snug fitting or flame resistant. Sleepwear intended for ages 9 months or younger is exempt from the regulation. All testing must be performed at a J. Crew approved laboratory. It is the vendor’s responsibility to maintain all necessary records. Snug Fitting Sleepwear

• Does not have to be flame resistant • Must pass 16 CFR 1610 flammability for general wearing apparel • Must meet CPSC measurement specifications at the chest, waist, upper arm, wrist,

seat, thigh and ankle • No tolerance allowed for these measurements • Trims must not extend more than ¼” from point of attachment • No drawstrings or ties are allowed • Fabrics must maintain snug fit (1x1 rib, spandex blends)

Flame Resistant Sleepwear

• Must pass flammability standards under 16 CFR 1615/1616 • Must use flame retardant thread • Must be tested at 4 stages:

o Development stage To determine if fabric can be used for sleepwear items

o Fabric Production stage

Fabric Production Unit (FPU) up to 5,000 linear yards FPUs accepted or rejected based on test reports

o Prototype seam and trim test Prototype seams and trims must be prepared at actual factory Must be tested prior to starting production Functional trims are exempt (zippers, snaps, buttons, etc)

o Garment production stage Garment production unit (GPU) up to 6000 garments GPUs accepted or rejected based on test reports


36

Textile mills and garment manufacturers must maintain written and physical records (samples) of sleepwear garments, trims and textiles in accordance with CFR 1615/1616. These must be retained for a minimum of 7 years. LABELING Children’s sleepwear labeling requirements are as follows:

• Garment Production Unit (GPU) Number: o Sleepwear items must be permanently labeled with a FPU and a GPU

number. This number must correlate to the fabric lot from which each garment is assembled. It is the vendor’s responsibility to assign this number and maintain necessary records.

• Garments must contain a precautionary label if a laundry or care agent is known to deteriorate the flame resistance of the fabric.

• All labels must be conspicuous to the customer. Packaging must contain pertinent information if it obscures the garment label.

• All children’s sleepwear garments, whether flame resistant or snug fitting, must be labeled using numeric sizing by law. Alpha sizing is allowed only when accompanied by a corresponding numeric size.

• All snug fitting children’s garments must carry a permanent garment label that contains the phrase below by law:

“Wear Snug Fitting. Not Flame Resistant”

• For consistency, the following text should be included on the permanent garment label for flame resistant items as shown below: “This Garment is Flame Resistant”

• By law, the snug fitting statement must meet specific formatting requirements. It is also recommended that flame resistant labeling also follow these requirements. The warning phrase should:

o Be located on front side of the label in the center back of garment o Be located immediately below the size indication o Include a font size with a minimum of 5 point Sans Serif font in all capital

letters o Be set apart from other label text by a line border o Contain text that must contrast with the background color of the label o Not be covered by another label or tag


37

Packaging/Hangtags By law, all children’s snug fitting sleepwear garments must be accompanied by either packaging or a hangtag outlining why the customer should choose a snug size. For consistency, J. Crew recommends that similar hangtags/packaging be utilized for flame resistant sleepwear; however this is not required by law. Each hangtag or package must follow the formatting requirements outlined below.

Hangtag Formatting Requirements Snug Fitting

• Hangtag measurements of 1 ½” x 6 ¼” • Text box that measures 1” x 5 ¾” • Text must be 18 point Arial font • Hangtag must have yellow background (front & back) and black lettering • The color yellow must meet the specifications for Standard Safety

Yellow in ANSI Z535.1- 1998, Safety Color Code • Message should be on one side of hangtag only • The other side may have sizing information, but should otherwise be

blank • Text must not be obscured by the hole provided for attaching the hangtag

to the garment • Hangtag must be prominently displayed on the garment

Snug Fitting

Flame Resistant

• Same requirements as above • Background should be white instead of yellow

Flame Resistant

For child’s safety, garment should fit snugly. This garment is not flame resistant.

Loose fitting garment is more likely to catch fire.

For child’s safety, garment should be flame resistant or snug fitting. This garment is flame resistant.


38

Packaging Requirements

• Package must have a label (adhesive or printed) which has the same language that would appear on the hangtag

• Label must be prominently, conspicuously and legibly labeled with the required message

• Text box that measures ¾” x 3 ¾” • Text must be 11 point Arial font • Text must be black against a yellow background • Snug fitting: The color yellow must meet the specifications for Standard

Safety Yellow in ANSI Z535.1- 1998, Safety Color Code • Flame resistant: The background color should be white instead of yellow.


39

PERFORMACE TESTING - HIDE APPAREL

1. Initial Skin Selection -Testing standards and potential end use details will be provided by the Production team to suppliers for evaluation. 2. Grade of Skin and Initial Testing -Upon selection of skin, the supplier must identify the grade of skins to be used and proceed with testing. 3. Fit Sample Make -Upon receipt of test results and approval from J.Crew Testing department (Attn: Karen Ljucovic), the supplier MUST make a fit sample in the correct quality for approval of shading, thickness, etc. in garment form. -Upon approval, bulk skins may be ordered. 4. Bulk Skin Approval -Supplier must send a complete set of shade bands from bulk and a half hide for approval. -Production will review all submits and advise usage such as sections acceptable for underarm, etc. -Upon approval, pre-pro samples are to be made. 5. Pre-Production Samples (Pre-pro) for Approval - (2) Pre-pro samples must be submitted to Production for skin placement review. -Production will review and indicate panels/areas as “acceptable” or “unacceptable” for bulk cutting and send a marked sample back to the Agent/Vendor for reference. -Additional Pre-pro samples MUST be resubmitted for approval, if the returned sample is marked “unacceptable.” 6. Top of Production Samples (T.O.P.) for Approval -Upon approval of the Pre-pro samples, (3) Top of Production samples must be submitted to Production for the following allocations: 1) J.Crew New York office for keep reference 7. Shipping Methods -All styles must be shipped G.O.H. flatpack (or in hanging containers where applicable by skin/style type). -All mail-order orders must be shipped in paper bags (due to added cost, retail should be a case by case decision).


40

Merchandise Inspection J.Crew requires that its vendors and agents have sufficient procedures in place to insure the quality of the merchandise exiting the factories meets all J.Crew requirements. The J. Crew field inspection team conducts audits in select locations throughout the United States and Europe in accordance with MIL 105E Level II Standards AQL 2.5, as well as internal J.Crew standards. For all other locations vendors/ agents are required to conduct audits in similar accordance. In special circumstances, J.Crew may also require that a vendor certify his shipment, at his own expense, utilizing an independent inspection service. Effective January 1, 1999 all direct placed production will be required to utilize this independent inspection service. The vendor will be billed directly for this by the respective agency. For a list of current agencies worldwide please contact [email protected]

Warehouse Inspection In addition, to supplement the factory audits, J. Crew conducts inspections in our Asheville NC and Lynchburg VA distribution centers. Our objective to in-house auditing: • Assure merchandise shipped by the factory is identical to what was ordered by the merchant. • Identify and eliminate unsatisfactory merchandise from the assortment • Confirm that measurements are within specifications and acceptable tolerances. • Confirm that shades are acceptable and within standard. • To insure compliance with all Federal Labeling regulations. Merchandise is inspected using an AQL of 2.5 - Level II - Single Sampling Plan. The audit is random as garments are pulled according to lot size as well as the number of cartons in the shipment. For example: A 3000 piece shipment is received in 200 cartons. Using an AQL of 2.5 we are required to inspect 125 garments across all sizes and colors from 13 cartons. Of these 125 garments, we would accept 10 defectives but reject the shipment on 11. Merchandise is inspected against the purchase order in these general areas. For a detailed description of defects, please refer to J.Crew Workmanship Standards.



41

Labels • All care labels must be permanently attached, legible, and appropriate for the garment. • Country of origin and fiber identification must be permanently attached, readily visible, and

in full compliance with all Federal Trade Regulations. • Size labels must be accurate and accessible to the consumer at the point of sale. GARMENT INSPECTION Garments will be checked for: • General Appearance • Color • Hand • Construction • Fabric Flaws • Hardware, Trim • Measurements If an order passes the audit, it goes on to full processing in the distribution centers. If it fails samples are sent to Production and or the Merchant for review. A determination will be made as to 100 % sort of the goods or non-acceptance of the shipment. All decisions on failed audits must be communicated back to Quality Control within 24 Hours. The inspection and release of product by J. Crew or its designated inspection services does not release the supplier or its representative from any claims due to defective products not quantified through inspection.

SORT / REFURBISHMENT CHARGES In the event that shipments must be sorted, the following charges will be incurred to the vendor. Certain refurbishments and sorts are at times sent to outside services to be completed. All relevant shipping charges would also be included in the charge back.


42

Procedure to send out Products for Outside Rework

(for washing or distressing)

To send out product for rework, whether it is for distressing or washing; merchants must determine if style number of proposed rework item will be changed. If so,

• Style changes must be created (updated) in SAP. • New POs should not be created in SAP for these existing items. • Merchants must provide vendor with the old/existing PO number as a “reference’

number – to be included on the vendor’s invoice. If a PO gets created, it will duplicate the inventory on-hand.

• Merchants will need to create (update) the new price in SAP. • Once it has been determined what vendor will be assigned the rework project;

production must alert the warehouse of the following: complete vendor address, contact information, phone and e-mail address. Along with any shipping instructions and shipping account information.

• Vendor should be copied on all correspondence for project. • Vendor must submit an invoice to J. Crew with the old PO # (reference) and

pricing. • Invoice must be submitted to PO Box 1027. • Upon receipt of invoice, A/P will park in the A/P system and submit the invoice

for coding & approval. New price tickets will need to be created. The warehouse can help to facilitate this. You will need to determine if the warehouse will be putting on new price tickets or if the vendor is to do this directly (for a small fee). Also, for direct business, if the style number changes, this change will need to be reflected on the polybag sticker. Vendors will have to invoice J.Crew for any rework projects. There is specific coding that must be adhered to for these types of projects. Please contact your A/P representative for details and further instructions.


43

*Rate Change effective as on Spring 2008 Refurbishing / Sort Cost / Unit USD $ Visual Inspection 2.00 Measurement to single point 1.50 Measurement to full spec 5.00 Remove / Attach label 1.25 minimum Remove / Attach button 1.00 minimum Hand Trim Threads 1.50 minimum Dry Clean 6.00 minimum Steam Tunnel Press 2.50 minimum Hand Press 3.50 minimum Tumbling 1.25 minimum Attach Hang Tags 0.75 minimum Change Hanger / Auto Bag 0.50 Remove / Add Paper Bands 0.50 Re-label Color Codes / SKU/ Barcodes/Bags 0.50 Spot Clean Shoes 2.00 Repair Shoes 2.00 minimum Open Seams 5.00 Minimum Note that the above charges are quality control costs and have no relation to non-compliance chargebacks imposed by warehouse receiving.


44

WORKMANSHIP STANDARDS The following defect classification guide outlines general workmanship, construction, fabric, finishing, and labeling defects that would render a garment unsaleable at J.Crew. J.Crew will inspect garments utilizing zoning as well as major and minor ratings. In general, zone A refers to the top 2/3 of an item front and back. Zone B refers to the bottom third of the garment. Please refer to the enclosed illustrations. Fabric Zone A Zone B Substituted, not matching approved swatch Major Major Hand, not matching approved swatch Major Major Color, not matching approved swatch Major Major Holes Major Major Slubs out of agreed range Major Major Knots up to 0.25” Major Minor Knots greater than 0.25” Major Major Snags Major Minor Runners Major Major Barre Major Major Needle Streaks Major Major Bald spots in brushed, peached, or napped goods Major Major Poor print registration Major Major Crack marks Major Major Rope marks Major Major Bleach spots Major Major Dye streaks, uneven dye, smears Major Major Construction Seam substitution Major Major Seam grin Major Major Stitch count +/- 2 then specified Major Major Stitch margin greater then 0.125” from edge lines Major ***** Broken stitches Major Major Needle cuts Major Minor Open seams Major Major Poor repair Major Minor Run off stitches up to 0.25” Major Minor Run off stitches greater than 0.25” Major Major Seam pucker Major Minor Raw edges > 1/8” Major Major Threads > 1/4” maximum of 2 Major Minor Uneven pleating, shirring Major Major Poor fusing Major Major


45

Garment Appearance Burn, scorch, pressing marks Major Major Poor pressing, wrinkling Major Minor Soilage, Stains up to 0.125” Major Minor Soilage, Stains greater than 0.125” Major Major Shaded components Major Major Unbalanced patterns Major Major Uneven collar points Major ***** Uneven sleeve, leg lengths Major ***** Uneven, roped hems Major ***** Bowed/ Skewed fabrics, stripes 1/4” max. Major ***** Side seam skew 3% of body length max. Major ***** Uncut buttonhole(s) Major ***** Untrimmed buttonhole(s) Major Minor Misplaced buttonhole(s) Major ***** Missing button(s) Major ***** Broken, chipped button(s) Major ***** Non-functional closures Major ***** Exposed zipper tape Major ***** Uneven pockets Major ***** Uneven darts Major Major Crooked, missing belt loops Major Major Missing, incorrect, illegible labels. Major ***** Odors emanating from garment Major ***** Packaging Zone A Zone B Crushed, broken boxes Major Incorrect information on package Major Torn, stained packaging Major Fold not as prescribed Major Incorrect, missing hanger Major


46

FABRIC INSPECTION

Fabric Inspection Standards The following fabric grading and inspection standards are to be used for all J.Crew fabric deliveries. The standards are reasonably defined for apparel products in accordance with current industry standards. In the event that these standards can not be achieved, the mill or its appointed representative should promptly notify [email protected] as to a special qualification standard. All fabric inspections conducted for and by J.Crew are guided by the 4 Point System as endorsed by the American Apparel Manufacturers Association. It is derived from the basic grading rule that a maximum of four penalty points can be assessed for any single defect and that no linear yard can be assessed more than four points regardless of the number of defects within that yard. It is important to remember that the fabric is graded without relation to the finished product. It is expected to meet the acceptable point count limits as pre-determined by J.Crew, any deviation to these limits must be evidenced in writing to [email protected]

Inspection Conditions • All fabrics are to be graded from a distance of three (3) feet while running face up over an

inspection frame. The frame should be illuminated by a minimum of two; forty watt fluorescent lights as well as have back lighting capabilities.

• Maximum inspection speeds should be compatible with the inspector’s ability but not to

exceed twenty (20) yards per minute.

Penalty Point Evaluation Defects in both the warp / fill and course / wale direction are assigned points as follows: 1 Point - Defects up to 3” 2 Points - Defects greater than 3” but less than 6” 3 Points - Defects greater than 6” but less than 9” 4 Points - Defects greater than 9” All severe defects are assigned the maximum penalty of 4 points. (i.e.: A hole regardless of size is always 4 points.) Continuing conditions such as barre, uneven finishing, or side to side shading is assigned 4 points per linear yard.




47

Point Calculation Calculations are based upon a square yard computation using the following formula: Points / 100 Square Yards = Total Points x 3600 Inspected Yards x Ticketed Fabric Width Acceptable Point Count Levels Any individual roll with point count levels that exceed J.Crew requirements shall be graded as second quality and removed from the shipment. A shipment will fail if the shipment point count exceeds the specified level. Due to the continuous complexity of fabric and finishing we have classified fabrics into levels by construction. If construction is not listed, acceptable point counts should be negotiated at the time of purchase. Level Roll Shipment Level 1 Tailored Suiting 15 Pts. /100 Sq.Yds 10 Pts. /100 Sq.Yds Fancy Shirting Worsteds Level 2 Denims 20 Pts. /100 Sq.Yds 12 Pts. /100 Sq.Yds Twills Canvas Oxford Shirting Level 3 All Silks 25 Pts. /100 Sq.Yds 15 Pts. /100 Sq.Yds Stretch Fabrics Plain Weave Fabrics Level 4 Linens 40 Pts. /100 Sq.Yds 32 Pts. /100 Sq.Yds Circular Knits Level 5 Madras 60 Pts. /100 Sq.Yds 50 Pts. /100 Sq.Yds Hand Weaves

Inspection Quantities The minimum quantity of material inspected for each color / pattern is as follows.

LOT SIZE INSPECTION QUANTITY Up to 2500 Yds. 100% 2501 - 5000 Yds. 20% 5001 - 20,000 Yds. 10% Rolls will be randomly selected by the inspector.


48

Fabric Width Cuttable fabric width will be checked a minimum of three times during the inspection of any roll. Rolls less than the contracted cuttable width will not be accepted. Shade Lot Matching Each mill is required to sort and group all shipments by shade lot. Maximum shade lots generally should not exceed three groups. Tolerances for each shade group should be measured against the approved standard and shall not exceed an AATCC gray scale rating of Class 4 - 5. If utilizing color spectrophotometer readings the following guidelines must be adhered to: Hardware: Close tolerance spectrophotometer Color Difference Formula: Results given in LCH (Lightness, Chroma, Hue) Light Source Evaluation: Primary: D65, Secondary: Inca-Store Light Option Settings: UV included, Specular included, 10 degree standard observer Sample Presentation: Small aperture Color Tolerance: delta E 1.0

Visual Assessment Please refer to the Lab Dip department manuals for complete details of proper light box settings for review and assessment. They are located in the download area of the Packing List Section in jcrewimports.com (same area as the vendor manual) Documents to reference are Color Process Vendor Manual and LabDip Services Manual. The inspector must take full width shade swatches (max. 12”) from each roll / shade group inspected. Rolls that exhibit side to side or end to end shading exceeding Class 4 - 5 will not be accepted.

Roll Length Rolls that deviate more than 2% from stated length on roll ticket will be rejected.

Splices Maximum splices per roll: 3, with a minimum of 20 yards in length.


49

Bow / Bias Fabric Width Solids Stripes 45” 1.0” 0.75” 60” 2.0” 1.50” 90” 3.0” 2.00”

Fabric Weight Fabric weight will be checked a minimum of two times per inspection using ASTM / AATCC approved punches and scales.

Fabric Odors No rolls will be accepted that exhibit objectionable odors. Audit Format The enclosed format must be utilized for all J.Crew inspection audits. Results should be communicated upon completion of the audit. If the audit meets all criteria, the order can be released upon signature of the factory and Crew’s representative. Hard copy results including shade swatches should be sent to J.Crew Production in New York within three working days.

Failed Audits If the fabric fails the inspection, the shipment will be held at the mill, pending notification to J.Crew. Hard copy and swatches must be sent to J.Crew Production in New York. At the discretion of J.Crew, the mill will be required to 100% re-inspect and provide full documentation or a cut map as to the extent of damages in the lot. Once corrective actions have been taken the lot would be subjected to re-inspection by J.Crew or its designated inspector at the mill’s expense. The inspection and release of fabric by J.Crew or its designated inspection services does not release the fabric supplier or its representative from any claims due to defective fabric not quantified through inspection. For further information please contact [email protected]



50

TECHNICAL PACKAGE A Technical Package (tech pack) is developed for each style, which contains the following information; flat sketches of the front and back view of the garment, specifications for each point of measure, construction details with diagrams and/or descriptions, trim information, label placement information with sketches, and color information pertaining to trim/component colors. A vendor will be given a tech pack to develop the J.Crew product. Upon approval for production, a tech pack will give the vendor a full set of graded measurements, and in most cases, tolerances. (If tolerances are not provided, please contact the Technical Designer responsible for the product). Uses of Technical Packages

1. There is a clause on each purchase order stating that actual garments must meet all requirements of the Technical Package. Any variances with the tech pack and finished garments including differences in specs, piece good weight, construction, finish, and trims could result in all garments being returned to the vendor. The vendor will be given a tech pack to develop a J.Crew product.

2. The tech pack will be used by Crew’s Q.C. for final inspections. Garments not meeting spec, construction requirements, and /or trim requirements including labeling, are considered poor quality and will be returned to the vendor.

IT IS THE VENDOR’S PERSONALITY TO CHECK THE TECH PACKAGE WHEN IT IS FIRST RELEASED. IF THEREA ARE ANY QUESTIONS OR DISAGREEMENTS, THE VENDOR IS EXPECTED TO CONTACT THE AGENT OR THE MANUFACTURING DEPARTMENT IMMEDIATELY. Technical Designers Are responsible for creating a Technical Package (tech pack) for each style that is sent to a factory for pricing and sampling. This tech pack should be followed in order to meet Crew’s requirements. An initial tech pack is called a Development report, and subsequent tech packs are referred to as Counter Sample Reports or Production Reports. Development Report: Included in this report is a sketch of the front and back view of the garment. Construction details, trim details, fabric information. An initial specification denoting points of measure and their corresponding measurements. This initial Development Report should be used for pricing and sampling. Counter Sample Report: Included in this report is all of the above, plus measurements of what the sample measured along with requested specs of what the next fit sample should measure and written or sketched pattern corrections of what needs to be adjusted on the pattern in order to make the garment fit properly.


51

A Photo Grade is often included for photo samples to be made from. (Photo grades are NOT for Productions approval and are issued in order to meet our photo shoot schedule). Label placement sketches highlighting specific attachment methods. A Production Report is issued once all of our requirements have been met and the garment fits to our specifications. This report is an approval to into production. A Production Report should contain complete garment specifications including construction details, trim details, fabric information, label placement information, color reference sheet for component parts, and graded specifications for all sizes as well as tolerances for each point of measure. (For woven garments tolerances are based on flat measurements. Please note: where tolerances do not exist on a technical packages please contact the TD).


53

TECHPACK SAMPLE


54


55


56


57


58


59


60


61


62


63


64


65


66


67


68


69


70


71


72


73


74


75


76


77


78


79


80


81


82


83


84


85

PHOTO / RETAIL SAMPLES

Updated 3/15/02 Effective Ch’02, Photo and Retail Samples will be “separately” ordered via the J.Crew Connectrix System. There are (2) types of Samples: Photo Samples – used for Editorial purposes Retail Samples – used for Visual/Publicity purposes The procedure will be as follows:

1. Mail-order Merchants will issue Photo Sample POs 2. Retail Merchants will issue Retail Sample POs.

3. Both will send directly via email attachment (PDF file) to Agents/Direct Vendors

(with a Cc to Production). 4. Any issues with the PO(s) should be directly to your Production contact. 5. The Agent/Direct Vendor is responsible for meeting the agreed upon ship date.

6. Any changes to the Sample requirements will be issued as a “revised” PO. 7. A “one-time” update to all PO prices should be issued BEFORE Samples ship.

Please advise your Production team a list for follow-up.

8. All Photo and Retail samples are to be shipped to:

J.Crew 770 Broadway New York, NY 10003 Attn: Vendor Relations

9. A copy of the Sample PO, Sample Invoice and Sample Packing List MUST be included

with the samples sent to J.Crew.

10. If any of the above documents are not included, the Agent/Direct Vendor will not be reimbursed for Sample payment. (separately faxed or mailed documents will NOT be processed).


86

PHOTO SAMPLE PO ORDER FORM (Issued By Direct Merchants)


87

RETAIL SAMPLE PO ORDER FORM (Issued By Retail Merchants)

J.Crew Retail Sample PO Form

Revised: Season: Fa'02 PO Number: RC00012 Ship to: J.Crew770 Broadway

Created: 3/19/2002 Style#: s/12345 Status: ACTIVE New York, NY 10003Description: Product Name Exfty: 5/16/2002

Agent: Name of Agent ETA Date: 5/24/2002 Attn: Vendor RelationsVendor: Name of Vendor Cost: $12.00

Attn: Agent or Vendor RepFrom: J.Crew Merchant

Sample Purchase Order Conditions:The following documents MUST be enclosed with all Samples:

1. Invoice2. Packing List3. Sample PO

Part#1Color Name Code S M L OrderOlive GR-105 2 2 2 4Red RD-104 2 2 2 4

Comments: Receiving Division Comments Signatures Changes:Merchants

Production

Design

Editorial

Visual


88

PHOTO / RETAIL SAMPLE LABEL OR STICKER

Effective 2/15/02

Season/Del: Season/Del: CH 02 / Nov II

Division/Class: Division/Class: Women's / Durables

Style# Style# s/12345

Description: Description: Roll Neck Sweater

Size: Size: M

Color Code: Color Code: RD - 104

Color Name: Color Name: Red

Ranking: Ranking: *

Channel: Channel: *

*field remains blank!

2. The Size Requirements of this Label or Sticker MUST be as below: Maximum: 3" L x 2" W Minimum: 2" L x 1" W


89

3. Garment Tag Placement SKIRTS / PANTS / SHORTS: • MEN’S—INSIDE FRONT RIGHTHAND SIDE OF PANT (NOT ON SIDE SEAM) o Tags should be placed on inside front waistband of pants/shorts to the right of the closure and about 2 inches from right side seam • WOMEN’S—INSIDE FRONT RIGHTHAND SIDE OF PANTS/SHORTS/SKIRTS (NOT ON SIDE SEAM)—SAME AS FOR MEN’S o Tags should be placed on inside front waistband of pants/shorts/skirts to the right of the closure and about 2 inches from right side seam DRESSES: INSIDE BACK OF NECK OFF CENTERED TO EITHER LEFT OR RIGHT OF J CREW TAG TEES / SHIRTS / BUTTON DOWNS / SWEATERS: INSIDE BACK OF GARMENT BOTTOM OF BACK HEM OFF CENTERED (NOTE: WE WILL BE ALTERING CENTER OF SHIRT SO CAN NOT BE PLACED IN CENTER OR SIDE SEAM) • MEN’S SHIRTS o Tags should be placed on side seam (either left or right side—no preference) JACKETS / COATS / BLAZERS / VESTS: TAGS FOR JACKETS/COATS/BLAZERS/VESTS CAN BE PLACED AT SIDE SEAM MEN’S SWIM: (SAME AS MEN’S PANTS) • Tags should be placed on inside front waistband of pant to the right of the closure and about 2 inches from right side seam WOMEN’S SWIM: • SWIM BOTTOMS: INSIDE BACK OFF-CENTERED • SWIM TOPS: INSIDE LEFT OR RIGHT SIDE IN CUP(SAME AS EXISTING) ACCESSORIES • BAGS/CLUTCHES o INSIDE FRONT BOTTOM OF BAG (LOCATED ON OPPOSITE SIDE OF JCREW LABEL) • WALLETS/PASSPORTS o INSIDE FRONT ON OPPOSITE SIDE OF JCREW LABEL • HATS o INSIDE CENTER BACK • GLOVES o INSIDE FRONT (OPPOSITE SIDE OF JCREW LABEL)—NOT ON SEAM • SOCKS o INSIDE BACK CENTER (MIDDLE BACK IF POSSIBLE) • SCARVES o BOTTOM OF HEM • TIES o BACK SIDE OF THIN END OF TIE • BELTS o ON SEAM CLOSEST TO BUCKLE • SHOES o STICKER AFFIXED TO BOTH BOTTOM SOLES (CLOSEST TO THE HEEL) • HEADBAND/EARMUFFS o INTERIOR OF BAND • SMALL ACCESSORIES (NOT LISTED ABOVE) o STICKER AFFIXED TO OUTSIDE OF POLYBAG


90

INVOICE COVER SHEET

To be completed by Agent/Vendor/Supplier (all support documents MUST be attached for processing)

Invoice Date:

Invoice # :

Season (circle one): Fall/Holiday Spring/Summer(# 2000107) (# 2000106)

Invoice Type (check one): Photo Sample Assortment # 2 Sample(# 521320) (# 548170)

Other (be specific):

Division (circle one): Men's Women's(photo: # 51720) (photo: # 51710)(assort# 2: # 35110) (assort# 2: # 35210)

Area (circle one): Wovens Sweaters Knits(use men's or (# 51730) (# 51740) women's # )

Footwear Accessories Kids(# 51760) (# 51750) (photo: # 51610)

(assort# 2: # 35310)

To be completed by J.Crew Receiving (Mailroom/Production)Date:Received by:Quantity Received:Discrepancy:

To be completed by J.Crew AccountingGL Account# Amount Bus/Area Cost/Ctr Profit/Ctr

Parked Posted Date Audited by

Document #

to be attached to ALL "non-bulk" invoices submitted to J.Crew


91

INVOICE PROCEDURES

In order to reduce processing delays, only one J.Crew purchase order is allowed per invoice. The following information is required on all invoices:

• Vendor name as it appears on the J.Crew Purchase order

• J.Crew purchase order number

• J.Crew style number

• Number of pieces billed on invoice and total

• Payment due date

• Terms as agreed to on J.Crew purchase order

• Unit cost

• Vendor invoice number

• Size and color breakdown per master packing slip

• Number of cartons shipped and total gross weight

• Name and address to remit payment

• Factor (if applicable) Packing slip reference number

• Vendor certification must be on file or accompany invoice.

Failure to clearly provide the above information on all invoices will delay payment. Invoices and payment correspondence should be sent to:

J.Crew

Attn: Accounts Payable PO Box 1027 New York, NY 10276-1027


92

INVOICE SUBMISSION ENVELOPE

• All invoices must be mailed and addressed as below


93

SECTION 3

Packing/Non-Compliance


94

GARMENT LABELING

Every J.Crew garment must have J.Crew labels sewn into the garment. This includes the logo, size, country of origin, fiber content and care instructions. Label type, size and placement are specified in the technical package. Failure to use the correct J.Crew label, and or placement will result in the garments being rejected. If there are any questions concerning the correct label, please contact you J.Crew Production team.

All J.Crew labels must be purchased through the authorized J.Crew supplier. Only labels approved and authorized by the J.Crew Trim Department may be supplied by a label vendor. To obtain the name and contact of your authorized supplier, please contact your J.Crew representative. The label / Hangtag order form must be completed in its entirety and faxed to the appropriate trim vendor. Please note that most woven content/origin labels require three weeks to manufacture. Most other trims and labels are kept in stock and will ship within 48 hours. Please contact the authorized J.Crew supplier for shipping details. Please ensure that you have allowed enough time for this and the method of freight you have chosen to receive by. If this poses any problem to a delivery, please contact your J.Crew manufacturing representative immediately.


95

J.Crew Canada Health Law Label

It applies to all down garments exported to Canada.

Please sew underneath care label.

Canadian law requires the existence of a Canada Health Label on all garments incorporating down or any stuffing used for warmth. As such, all vendors of down or any stuffed garments must register with the TSSA (Technical Standards & Safety Authority ) in Canada. You must renew your registration yearly. Failure to comply will result in fines by the Canadian Government. Please follow the instructions on the TSSA website which is: www.tssa.org. Click on the tab for “Upholstered and stuffed articles. Then follow the instructions accordingly.

http://www.tssa.org/


96

NON-COMPLIANCE CHARGEBACKS

1. All non-compliance charge backs will be put onto non-compliance forms (non-compliance for accounts payable). There will be no minimum dollars for these non-compliances.

2. A form letter will go out to each vendor and/or agent with the non-compliance charge back. This will be sent weekly or bi-monthly according to volume.

3. The non-compliance will go into the A/P system immediately to hold payments on samples or invoices. If there are not enough outstanding invoices owed by J.Crew, we will ask for vendor payment in thirty (30) days by check or wire transfer.

4. It is the vendor/agent’s responsibility to comply with J.Crew’s shipping and packaging procedures as detailed in the Vendor Manual.

5. For a non-compliance to be reversed, the vendor needs to show approval in writing from J.Crew that the packaging procedures were waived. Only the Executive Vice President of Sourcing can override these non-compliance charge backs.

6. Once a chargeback is processed, the vendor will have 30 days from chargeback date to correct the infraction(s). If the same infraction is repeated after 30 days, the chargeback rate will escalate to the next level.

7. See the Rate List below:

# Reason VNC Rate List Basis A Incorrect ASN labels-Striated Barcodes $5.00 per ctn B Incorrect ASN labels-smudged/smeared barcodes $5.00 per ctn C More than 1 mixed SKU carton per color $5.00 per ctn D Incorrect carton suppler $5.00 per ctn E Failure to use Carton Markings $5.00 per ctn F Incorrect Carton Markings $5.00 per ctn G Incorrect ASN labels-other $5.00 per ctn H Incorrect ASN labels-ASN on both sides of the carton $5.00 per ctn I Failure to meet carton construction $5.00 per ctn J Failure to limit carton weight to 45 lbs $5.00 per ctn K Incorrect/Missing Preticket/Worn ticket $1.00 per unit L Improper Ticket placement $1.00 per unit M Incorrect/Missing polybag/barcode $1.00 per unit N Failure to seal polybag $1.00 per unit O Failure to prepack cartons correctly $5.00 per ctn P Detail count due to pack slip carton variance $200.00 per hour Q No pack slip $200.00 per rcpt R Incorrect pack slip $200.00 per rcpt


97

1. RTV. Goods that are returned to vendor (RTV) as a result of a quality issue that is commercially unacceptable will incur a chargeback based on the following rates

a. 1st RTV: Up to 110% of landed cost of goods. b. 2nd RTV: Up to 150% of landed cost of goods. c. 3rd RTV: Up to 200% of landed cost of goods and/or cessation of business

. 2. Inspection and Rework . (Measurement /visual/packing ).

a. Distribution Centre inspection i. Minimum charge of $600 per inspection up to 200 units .

ii. Additional inspection @ $3 per unit . b. In store Inspection @ $5 per unit . c. 3rd party inspection at costs plus administrative charges. d. Rework charges dependent upon labor , supplies and administrative

charges. 3. Restricted Substance Failure ( POST shipment) :

a. 1st Offense : Up to $25000 chargeback b. 2nd Offence : Up to $50,000 chargeback and 3 months mandatory RSL

testing for future deliveries at vendor cost. c. 3rd Offence: Up to $250,000 chargeback and/or Cessation of business.

Any additional costs involved to correct packaging non-compliance will be charged back to compensate for labor, materials, and administrative charges.

All points except for Letter D, will be implemented on any shipments received into the DC on May 1, 2017 and forward. Letter D, Incorrect Carton Supplier, if BK is in your region and you fail to use them, any shipments received into the DC, August1. 2017 and forward you will be chargedback for non-compliance.


98

NON-COMPLIANCE –EXAMPLES In an effort to clarify chargeable offenses, the following are examples of common infractions: Non Compliance Examples:

placed item in bag/created and applied upc labels

rcvd without polybag coverage

had to bag/tape, able to utilize original upc


99

rcvd items in without polybags sealed

rcvd with only 1 language warning logo


100

rcvd items in without warning logos on polybags had to apply warning logo sticker

smeared polybag barcode


101

rcvd cartons without ASN (carton labels)

created and applied ASNs (carton labels)

ASN placement on long side of carton (unable to utilize conveyor due to placement)


102

original ASN missing digit, created and applied new ASN with all 12 digits original ASN on carton had wrong shipment number, created and applied correct ASN shipment label Unscannable and unreadable ASN’s:


103

carton dimensions exceeding carton guidelines

**current dimensions standards a) Flat Pack Cartons

Maximum carton size is mandatory for all shipments. 1) 22 5/8"L x 13"W x 15 1/2"H


104

different angles of partially filled carton


105

VC# 42 shows mixed carton (according to packing slip) however when carton received all units were same size.

A. Incorrect ASN Labels- Striated Barcode Labels Label striations are often caused by faulty or dated printers. The striations appear as white lines on the barcode and are unable to be read by scanners. Note the white lines visible through the last zero (0) and two (2).


106

B. Incorrect ASN Labels- Smeared or Smudged Barcode Labels Smearing and smudging can be caused by poor quality ink or paper. These labels are unable to be read by scanners.

C. More than 1 mixed SKU carton per color J.Crew cannot accept more than 1 mixed carton per shipment. Example A – Unacceptable - more than one mixed carton per color per shipment

Carton Color XS S M L 10 BR6305 2 2 0 0 10 11 11

WV8930 BR6305 WV8930

2 0 1

2 0 0

0 2 0

0 1 1


107

Example B – Acceptable - Only one mixed carton per shipment

Carton Color XS S M L 10

BR6305

2

2

2

1

D. Incorrect Carton Supplier-Vendors must use carton supplier BK in regions where BK has service offices. Standard carton dimensions can be found in the Carton Dimensions/Packing Procedures. These carton sizes were chosen to fit on warehouse shelves. E. Failure to use Carton markings-Failure to comply with the standard ASN for carton identification. F. Incorrect Carton Markings Carton labels must match contents of carton. Information on the outside label must match the contents inside the carton. G. Incorrect ASN Labels (Other) ASN labels should be uniformly positioned, completely intact, not covered by another label, and readable as explained in the Carton Dimension/Packaging section. H. Incorrect ASN Labels (ASNs on both sides of carton) ASN Labels should be placed only on one side of the carton as explained in the Carton Dimension/Packaging section. I. Failure to Meet Carton Construction Cartons must meet minimum burst strength as explained in the Carton Dimension/Packaging section. J. Failure to Limit Carton Weight to 45 lbs Cartons must not weigh more than 45 lbs K. Incorrect/Missing/Pre-ticket/Worn Ticket Garments must be ticketed with clear, new tickets as explained in the Technical Package L. Improper Ticket Placement Tickets must be placed per the Technical Package M. Incorrect/Missing polybag/barcode Polybags should be used as explained in the Packing Guide section


108

N. Failure to Seal Polybag Polybags must be sealed as explained in the Packing Guide O. Failure to Pre-pack Cartons Correctly Cartons should be packed as explained in the Prepack Instructions section P. Detail Count due to Pack-slip Carton Variance Pack-slip must match carton markings – variance will result in a 100% audit of each carton Q. No Pack-slip All cartons must be accompanied by a pack-slip as explained in the Carton Information section R. Incorrect Pack-slip Pack-slip must match carton markings as explained in the Carton Information section Chargeback Example:

J · As we begin our partnership, we furnish the information in this manual as a guideline to...

Documents

Transcript of J · As we begin our partnership, we furnish the information in this manual as a guideline to...