US Domestic Routing Guide

Effective November 10, 2009

Enclosed are important instructions for processing US Domestic origin shipments that are shipping to KeyTronicEMSUS locations. Please review this guide thoroughly and begin following this guide for all shipments shipping on or after the above effective date.

KeyTronicEMSmaterial SUPPLIERS should use GROUNDas the standard method of shipping for all shipments. You should only ship via air using KeyTronicEMS accounts if you have received an Air Authorization number from your KeyTronicEMS Purchasing Representative prior to shipping. This Air Authorization number must be noted on the waybill and all commercial documents. KeyTronicEMS will deduct any additional freight charges from your invoice if you ship via AIR and do not have an Air Authorization number issued from a KeyTronicEMS representative.

LEXMARK SUPPLIERS: You must use the Lexmark routing guide as freight is paid by Lexmark. Do not “3rd party bill” these shipments to KeyTronicEMS account or we will refuse the charges.

IMPORTANT NOTES:

  1. Do not Declare for Value on the waybill, please be careful that you do not claim insurance or we will deduct these charges from your invoice. KeyTronicEMS is self-insured and does not require additional insurance on our shipments.
  2. Be sure to choose the correct service for the carrier, KeyTronicEMS only uses “STANDARD GROUND” with our small package and Less than Truckload carriers; any deviation from this without an air authorization will result in KeyTronicEMS deducting the air charges from your invoice.
  3. Consolidate packages each day as applicable before applying routing method, be careful with the maximum weight limitations for each method.
  4. Your packaging must comply with ISPM15 REGULATIONS if you use solid wood packaging:
  5. Reference KeyTronicEMS Purchase Order Number (and Air Authorization when required) on packing list, and identify this same information on the waybill under the “Recipient” or “Shipper” reference fields.

Deviation from our routing instructions that result in increased freight costs to KeyTronicEMS will result in a deduction from your invoice for the shipment. Repeated violations will result in handling penalties of $100.00 per waybill that will be deducted from your invoice to reimburse KeyTronicEMS for administrative costs that result from incorrect routings.

Please refer to each carrier’s service guide for all standard restrictions on shipping, including oversize and special handling such as hazardous materials. Do not hesitate to contact KeyTronicEMS Logistics Department if you have any questions regarding this routing guide, or the carrier’s guides.

Thank you for your cooperation and support of these routing instructions.

US Domestic Routing Guide

Effective November 10, 2009

GROUND SHIPPING GUIDE

Small Package Routing: 1 – 300# combinedweight of packages,based on the LARGER of either the actual or dimensional weight. Only non-palletized,non-wood,durable corrugated packaging materialsshould be used as specified in the FedEx Service guide under “FEDEX GROUND PACKAGING REQUIREMENTS”. Ifa single piece exceeds75 pounds per package, actual or dimensional weight,they must be shipped as Less than Truckload freight - refer tothe following section. To calculate dimensional weight: LxWxH/166 = dimensional weight in pounds.

NOTE on oversize dimensional restrictions: Oversize Dimensional Size (ODS) calculated asL + (2xW) + (2xH) by FedEx. Any package that is over 130” ODS is considered oversize. Do not ship ODS packages via FedEx - this must ship as Less than Truckload freight, see next section.Example: 24”x 24”x 24” boxwould be dimensionally calculated as:24 + (24x2) + (24x2) =120”.

Small package Routing: Ship via FedExGround–3rdParty BillingUse Account Number

CHOOSE “STANDARD GROUND” SERVICE ONLY

Shipping to:

KeyTronicEMS, 3808 N. Sullivan Road, Bldg 17, Spokane Valley, WA99216…….CONTACT KTC

KeyTronicEMS SW, 14B Butterfield Trail, El Paso, TX79906……………...... CONTACT KTC

Less than Truckload (LTL) routing:10 or less pallets/crates, 301 – 19,999# combined weight,loaded in crates or on wood pallets that are properly shrink wrapped, banded and labeled on all visible 5 visible sides with stickers that state “DO NOT DOUBLE STACK – DO NOT BREAKDOWN PALLET”, unless the freight can be double stacked without damage. Be sure to use adequate packaging to protect during transit.

Note: Your packaging must comply with ISPM15 REGULATIONS if you use solid wood packaging:

Ship viaFedEx Freight - Mark waybill collect to KeyTronic Use Account Number

CHOOSE “STANDARD GROUND” SERVICE ONLY

Shipping to:

KeyTronicEMS, 3808 N. Sullivan Road, Bldg 17, Spokane Valley, WA99216……CONTACT KTC

KeyTronicEMS SW, 14B Butterfield Trail, El Paso, TX79906……………….….....CONTACT KTC

Full Truckload Routing (FTL): 11 or more pallets (palletized or crated), 20,000# and greater combined weight:

Contact KeyTronicEMS Logistics Department – SEE CONTACTS PAGE.

US Domestic Routing Guide

Effective November 10, 2009

AIR SHIPPING GUIDE*

*Air Shipmentsrequirean air authorization number from KeyTronicEMS.

The Air authorization number must be referenced on the waybill and packing list.

Small Package Routing:1 – 300# consolidated packages, based on the LARGER of either the actual or dimensional weight. Only non-palletized, non-wood, durable corrugated packaging materials should be used as specified in the FedEx Service guide under “FEDEX GROUND PACKAGING REQUIREMENTS”. If a single piece exceeds 75 pounds per package, actual or dimensional weight, they must be shipped as Large Air Shipment freight - refer to the following section. To calculate dimensional weight: LxWxH/166 = dimensional weight in pounds.

NOTE on oversize dimensional restrictions: Oversize Dimensional Size (ODS) calculated as L + (2xW) + (2xH) by FedEx. Any package that is over 130” ODS is considered oversize. Do not ship ODS packages via FedEx Express - this must ship as a Large Air Shipment, see next section.

Example: 24”x 24” x 24” box would be dimensionally calculated as: 24 + (24x2) + (24x2) =120”.

Small package Routing: Ship via FedEx Express – 3rd Party BillingUse Account Number

CHOOSE “STANDARD OVERNIGHT” SERVICE ONLY

Shipping to:

KeyTronicEMS, 3808 N. Sullivan Road, Bldg 17, Spokane Valley, WA99216…….CONTACT KTC

KeyTronicEMS SW, 14B Butterfield Trail, El Paso, TX79906……………...... CONTACT KTC

Large Air Shipment:Over 300# consolidated weight (palletized, crated, or otherwise).

Contact KeyTronicEMS Logistics Department – SEE CONTACTS PAGE.

Note: Your packaging must comply with ISPM15 REGULATIONS if you use solid wood packaging:

US Domestic Routing Guide

Effective November 10, 2009

CONTACTS PAGE AND GENERAL INFORMATION

KeyTronicEMS Logistics Contacts:

Jeff Rhodes, Logistics Specialist509-927-5285

Cory Zwolinski, Customs Analyst509-927-5529

Brian Johnson, Logistics Manager509-927-5575

Carrier Contacts:

FedEx 800-463-3339

FedEx Freight 866-393-4685(CA)

Documentation Requirements for Domestic Shipments:

Shipment must include the following:

  • PACKING LIST identifying contents of each package
  • WAYBILL

REQUIRED PACKING LIST INFORMATION:

Packing list must include the following:

  • KeyTronicEMS Part Number
  • Supplier Part Number
  • KeyTronicEMS Purchase Order Number
  • Sold to and Ship to Address
  • Country of Manufacture
  • RMA Number if applicable
  • Air Authorization Number if provided by KeyTronicEMS

REQUIRED WAYBILL/BILL OF LADING INFORMATION:

The following reference information is required in the waybill or BOL “reference” fields:

  1. Air Authorization Number if shipped via air
  2. KeyTronicEMS Purchase Order Number

US Domestic Routing Guide

Effective November 10, 2009

PACKING LIST INFO

All shipments are required to include the following packing list and container information.

  • Hard copy packing list must be attached to side of carton #1; include a duplicate copy inside carton #1.
  • INCLUDE ON PACKING LIST AND INVOICE: KeyTronicEMS purchase order number and part number, country of origin, part quantity and carton quantity.
  • KeyTronicEMS purchase order number and part number, country of origin, quantity per carton and carton numbering (1 of X) must be permanently marked on every shipping carton (SEE CHART BELOW).
  • Return product shipments must have RMA# listed on all documents.
  • Air shipments must have Air Authorization Number noted on all documents.

Labeling Requirements
Shipping variables / One Part Number / Multiple Part Numbers / Multiple Part Numbers
One Purchase Order / One Purchase Order / Multiple Purchase Orders
Master Carton / Part Number / Part Number Field reads "Mixed" / Part Number Field reads "Mixed"
Quantity / Quantity Field reads "Various" / Quantity Field reads "Various"
Country of Origin / Country of Origin Field reads "Various" / Country of Origin Field reads "Various"
Purchase Order / Purchase Order Number / Purchase Order Number Field reads "Multiple"
Individual Carton / N/A / Part Number / Part Number
Quantity / Quantity
Country of Origin / Country of Origin
Purchase Order Number / Purchase Order Number
Packing List / Part Number / Part Number / Part Number
Quantity / Quantity / Quantity
Country of Origin / Country of Origin / Country of Origin
Purchase Order Number / Purchase Order Number / Purchase Order Number

US Domestic Routing Guide

Effective November 10, 2009

Penalties (handling fees) associated with Routing Guide violations.

Failure to follow these guidelines will result in additional handling by KeyTronicEMS. To recover these costs KeyTronic may assess a feeof $100.00 for repeat offenses, at our discretion. In all cases KeyTronicEMSwill deduct any additional expenses that result from deviations from our routing guide. These amounts will be deducted from supplier’s invoice.

  1. Wrong or unauthorized carrier used: Difference of freight charges.Second violation: Freight bill will be refused by KeyTronic and the carrier will be instructed to rebill charges to your account.
  2. Freight prepaid and added to the invoice: Freight amount will be deducted from the invoice.
  3. Unauthorized air shipment: Rebill of excess freight charges.
  4. No packing list, packing list and/or carton requirements missing: $100.00 handling fee.
  5. Daily shipments not consolidated per ship to location, per ship mode: Difference of freight charges and $100.00 handling fee.If determined to have been done to avoid Air Authorization procedure the freight bill will be refused and the carrier will rebill the shipper.
  6. Value declared on bill of lading resulting in fees for cargo insurance: rebill of insurance cost.
  1. Shipments received with damaged cartons due to transit damage, which result in loss of product, will be paid short if packaging does not comply with BMC marking. It will be the responsibility of shipper to file the claim with the carrier.
  1. Lexmark Suppliers must ship according to Lexmark Routing Guide, ask your KeyTronic Representative.
  1. All corrugated packaging used in shipment must be stamped with the appropriate BMC (Box Manufacturer Certificate) stamp, or similar box certification, based on the commodity shipping and weight per box. Example:

**IMPORTANT**: Any shipment which includes wood pallets, or shipped in other form of wood packaging materials, must comply with the Solid Wood Packaging requirements. Please refer to US APHIS regulations to ensure you comply before shipping to KeyTronicEMS. To avoid these APHIS requirements you should consider switching to particle board, plywood, or other manufactured wood pallets and/or dunnage for your shipments.

Note: Your packaging must comply with ISPM15 REGULATIONS if you use solid wood packaging:

This document contains information that is CONFIDENTIAL and PROPRIETARY. By accessing and/or using this information, user agrees that information contained on this routing guide is to be used solely for the purpose of manufacturing for, and making shipments on behalf of KeyTronic Corporation. Any other use, retention, dissemination, forwarding, printing, or copying is strictly prohibited.