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JEWELLERY DISTRIBUTION CENTRE REQUIREMENTS

for

AMERICAN SWISS / MATRIX / STERNS / FOSCHINI

(IMPORT JEWELLERY AND WATCHES)

Dear Supplier,

As we are processing enormous volumes of merchandise through our Distribution

Centre, it is of utmost importance that the following requirements are met for the

smooth and speedy flow of the merchandise.

Any deliveries / shipments that do not comply with these instructions, will be returned

FREIGHT COLLECT for the cost of the Supplier / Manufacturer

JEWELLERY

1. TICKETING INSTRUCTIONS

a) Four weeks prior to delivery window, you should receive the price

labels/tickets for each style.

b) If not received within 4 weeks prior to delivery date, please contact

the relevant buyer or contact the DC at: 27 21 938 1025 or 27 21

9381519

c) All tickets / labels are white with black print. (Moda tickets will be printed on

blue coloured labels).

d) You will receive 10% additional price tickets with each order.

e) Position / Location of tickets:

RINGS - on shank (Sets)

STUDS - through butterfly/or post HOOPS - through butterfly/or post

- on hinge through jumpring of

shepherd's hook

CHAIN - through boltring

PENDANTS/CHARMS - through bale (for pendants without

chain)

f) Each ticketed item or set to be placed into individual mini grip bag. All bar-

codes must be visible for scanning purposes.

a. See appendix 5

g) Please refer to your Purchase Order for ticketing instructions.

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2. INVOICING

a) The following should correspond with the details on the Purchase Order and

listed on the invoice:

- Order Number

- Description

- Product no

- Supplier reference no. (Your style reference)

- Cost Price (FOB price)

- Quantity (units)

b) Foschini Group Jewellery complies with the diamond guarantee known as the

KIMBERLEY PROCESS. This warrants that all diamonds supplied have been

purchased from legitimate sources not involved in funding of conflict, in

compliance with the United Nations Resolutions.

� Please ensure that Point "b" is stated on all invoices relating to diamond

merchandise. This includes diamond merchandise sent in as Samples and

Specials.

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3. PACKAGING

a) Each ticketed item or set to be placed in a clear plastic mini grip bag. The

tickets and bar-code must be visible for scanning and auditing purposes.

Please do not wrap items in tissue.

b) The full quantity of each order to be packed in a plastic bag with the

Purchase Order printout attached to the bag. Where quantity ordered

cannot fit into 1 plastic bag, ensure that a photocopy of the Purchase Order

printout is placed in all plastic bags used. All jewellery on plastic stands to

be covered with bubble wrap. The ticket must be placed on the outside of

the bubble wrap and on the stand itself.

Please indicate the quantity of unit per stand on the bubble wrap

c) All plastic bags/orders to be packed into a new cardboard carton/box or

plastic container.

d) Ensure that the carton/box or plastic container is completely filled. Where

possible, try to pack orders for all 3 Trading Companies into the same

carton/box or plastic container.

e) Each cardboard carton/box to be securely with supplier tape and sealed with

metal plates inside all 6 sides of carton, strapped and metal sealed on the

outside. Plastic containers to be securely sealed with a metal seal on the

outside.

This is an insurance requirement and cannot be changed without the

Insurer's consent.

f) Each cardboard carton/box or plastic container to be weighed, and weight

recorded on documentation handed over to Forwarding Agent.

g) Each carton / box or plastic container to include a copy of the packing list

(i.e. the list of all orders included) – see APPENDIX 2.

h) Address / Mark all cartons/boxes or plastic containers as TFG RETAIL.

Please do not mark cartons/boxes or plastic containers for Foschini Group,

American Swiss, Matrix, Sterns or Foschini.

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SHIPPING REQUIREMENTS

1. DELIVERY TERMS:

Foschini Group Jewellery operates of FCA basis, i.e. we cover the cost of goods

from the Aircraft to the destination. It is imperative that you, the supplier, ensure

that your merchandise is ready for collection by the Forwarding Agent on the

despatch/pick-up date.

In order to reduce exorbitant Shipping costs, the following applies:

1.1 Merchandise for TFG RETAIL (American Swiss, Matrix, Sterns and Foschini)

must be shipped together, unless requested differently by the Buyer or

Imports Administrator.

1.2 The Forwarding Agents listed in par 2 (b), are the only conduits used by the

Foschini Retail Group Jewellery. No other conduit or carrier is authorised to

ship our goods.

1.3 Samples and Specials that accompany bulk delivery/shipment, must be

invoiced, packed and marked separately.

1.4 Any late deliveries will be subject to cancellation and if accepted later, the

supplier will be liable for the shipping costs.

Any queries can be directed to the Buyer or Buyer's Assistant.

2. RETURN TO VENDOR (RTV)

a) Exports are arranged on a FREIGHT COLLECT BASIS. This means that the

Supplier/Manufacturer is responsible for the full cost of the export including

insurance.

b) All exports for TFG RETAIL are forwarded via FEDEX or RAM

INTERNATIONAL. No other carrier is authorised to transport jewellery items

out of RSA.

c) This will be arranged for the following reasons:

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� Defective product – where merchandise does not comply with our quality

and diamond specifications and/or different to original approved sample.

� Late deliveries – where merchandise is sent later than specified delivery

date on confirmation fax and/or Purchase Order.

� Manufacturing related defects – where merchandise is returned into our

Customer Complaints Department.

3. PAYMENT:

All payments are processed as Telegraphic Transfer (TT).

Please provide quarterly statements.

For all payment queries please contact Taufeeq Najaar email:

taufeeqn@foschini.co.za / Tel: 27-21-9374346 / Fax: 27-21-935-2125) or

BERENICE SMART BereniceS@foschini.co.za Tel: 27-21-9374184 / Fax: 27-21-

9352125).

Ensure that the following is stated on the CREDIT NOTE:

- Order No.

- Product no

- Supplier Reference No. (your style reference)

- Cost Price (FOB price)

- Quantity (units)

For all CREDIT queries please contact TAUFEEQ NAJAAR Tel: 27-21-9374346/

Fax: 27-21-9352125).

Best Regards,

TIEKIE VAN HUYSSTEEN

JEWELLERY DC MANAGER

TEL NO 27-21- 938-1156

Email: evelynvh@tfg.co.za

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WATCHES

1. TICKETING INSTRUCTIONS

a) Four weeks prior to the despatch/pick-up date, you should receive the price labels/tickets for each style.

b) If not received within 4 weeks prior to the despatch/pick-up date, please contact:

The controller at tel no (021) 938-1025 or (021) 938-1519 or email

jeneans@tfg.co.za

c) All tickets / labels are white with black print (Moda tickets blue with black print- Tempo Watches only)

d) Watch suppliers will receive 2 price tickets per item with all orders

WATCH SUPPLIERS

Watch suppliers will receive 2 price tickets per item with all orders.

- One ticket must be placed on the case back of the watch.

- Instruction Manuals/Guarantees/c-clip must be placed inside the tin/ pouch

- The watch must be placed in a bubble bag on the outside of the tin/pouch.

- The bag/bubble wrap should be sealed by means of tape

- Ensure that the ticket on the outside corresponds with the ticket on the case

back.

- The second ticket must be placed on the outside of the bubble bags, tins, or

package.

- All tickets on the packaging must be visible for scanning.

e) Each ticketed item to be placed into individual bubble bags.

2. INVOICING

a) The following should correspond to the details on the order and listed on the invoice:

o Order No

o Style No (9 /10 digit computer no)

o Supplier Reference No (your style reference)

o Cost Price (FOB price)

o Quantity (units)

3. PACKAGING

a) Watches to be packed in individual bubble bags. Each individual bag to be

securely sealed/stapled.

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b) The full qty of each order to be packed in a plastic bag with the physical printed order.

Where the quantity ordered cannot fit into 1 plastic bag, ensure that a

photocopy of the order printout is placed in every additional plastic bag.

c) All plastic bags/orders to be packed into a cardboard carton/box

d) Each order must be individually packed and not mixed together.

e) Ensure that carton/box is completely filled.

f) Each cardboard carton/box to be securely closed.

g) Each cardboard box to be of a weight manageable by one person 18kg-

20kg see Appendix 5

h) All individual cardboard cartons/boxes to be packed in the following manner:

• Metal plates inserted on all 6 sides of the carton.

• Carton to be secured with canvas straps and metal seal.

• Carton to be sealed with branded or security tape

Note: This is an insurance requirement and cannot be changed without

the insurer’s consent.

i) Each carton to include a copy of the packing list (ie: the list of all orders included) see APPENDIX 2

j) Address / Mark all cartons as TFG . Please do not mark cartons for

Foschini Group, American Swiss, Sterns, Foschini or Matrix.

k) When large orders are placed in multiple cartons, please ensure that the

carton number and the packing slip are correctly documented and

correspond.

SHIPPING REQUIREMENTS

1. DELIVERY TERMS:

Foschini Group Jewellery operates on FOB/FCA basis, ie. We cover the cost of goods

from the Shipping Vessel to the destination. It is imperative that you, the supplier,

ensure that your merchandise is ready for handover to the forwarding agent on the

given despatch/pick-up date. (BERRY AND DONALDSON – CARGO PARTNERS)

In order to reduce Shipping cost, the following applies:

a) See delivery schedule APPENDIX 3

b) Samples and Specials that accompany bulk delivery/shipment, must be

invoiced, packed and marked separately

c) Any late deliveries will be subject to cancellation and if accepted later, the

supplier will be liable for the shipping costs. Any queries can be directed to the

Buyer or Buyer's Assistant.

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2. EXPORTS

a) Exports are arranged on a FREIGHT COLLECT BASIS. This means that the

Supplier/Manufacturer is responsible for the full cost of the export.

b) All exports for TFG RETAIL is forwarded via BERRY AND DONALDSON

HONG KONG

Air:

CARGO-PARTNER LOGISTICS LIMITED Contact: Edward Yiu

Unit 1105 11/F, Cheung Sha Wan Plaza Tower Tel: +852 2110 6670

833 Cheung Sha Wan Road Fax: +852 8161 0910

Kowloon, Hong Kong, China Email: Edward.yiu@cargopartner.com

HONG KONG

Manager Customer Service Air Cargo

Contact: Ripple Lam

Tel: +852 2110 6600

Fax: +852 8100 5656

Email: ripple.lam@cargo-partner.com

c) This will be arranged for the following reasons:

• Defective product – where watches do not comply to our quality

specifications

• Late deliveries – where watches are sent later than specified delivery

date

3. PAYMENT

All payments are processed as Telegraphic Transfer ( TT )

Please provide quarterly statements

For all payment/credit queries please contact TAUFEEQ NAJAAR email

taufeeqn@foschini.co.za Tel: 27-21-937-4346 Fax: 27-21-9352125 or BERENICE

SMART email berenices@foschini.co.za tel 27-21-9374148 fax 27-21-9352125

Ensure that the following is stated on the CREDIT NOTE:

Order No

Style No ( 9 /10 digit computer no )

Supplier Reference No ( your style reference )

Cost Price ( FOB price )

Quantity ( units )

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TEMPLATE FOR CASE BACK

APPENDIX 1

NO. 1 ANALOGUE WATCHES NO. 2 SPORTS, ANADIGI,

CHRONOGRAPH &

MULTIFUNCTION

WATCHES

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APPENDIX 2

FOSCHINI GROUP JEWELLERY PACKING LIST Exporter/Shipper (Name & physical address)

Tel: Fax: Email:

Date:

Importer/Consignee (Name & physical address)

Tel: Fax: Email:

Invoice Number:

Shipment Type:

Country of origin:

Country of destination:

Carton

Number:

Style Number: Order Number: Quantity (PCS): Weight (KG):

Signature Date Remarks

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APPENDIX 3

CARTON MARKING

Supplier Name

P/I _______________ P/O ________________

Model ________________

Customer Ref : _________

Qty ___________________ Pcs

C/No. ___________ Weight __________Kgs

P/I = Proforma Invoice number

P/O = Purchase Order that you receive with the tickets/stickers/labels Model = Supplier Model number

Customer Ref = Our style number on Purchase Order.

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APPENDIX 4

BATTERY CERTIFICATE

We have been advised by our new agents (Cargo Partner) that the airlines are looking

at enforcing a new procedure where they will require certain documentation and a

stoppers for watches incorporating a battery, as batteries are been classified as

hazardous cargo.

Below and attached, please find for your reference the necessary documentation

requirements.

If goods with battery

a) Contain Dry battery - The shipper need to provide original Guarantee Letter to

ensure that this cargo can be fulfilled the requirement on IATA A123 regulation and

identified it as general cargo.

b) Contain lithium battery - The shipper need to provide original Guarantee Letter to

ensure that this cargo can be fulfilled the requirement on IATA A45, 2008 regulation

and identified it as general cargo, for sure that MSDS report with UN38.3 report

attach must be required in this case.”

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PACKAGING INSTRUCTIONS APPENDIX 5

5.1 Carton Specification

The following carton specifications have been established to maximise the product flow through our automated facilities:

Please note ECT requirements apply.

5.1.1 ECT requirements for Jewellery, Watches, Jewellery Cleaning material or

accessories: CARTON WEIGHT (max gross mass) MIN EDGE CRUSH TEST

VALUE (ECT)

Kg LBS kN/m Lbs per inch

Up to 10 Up to 22 4.9 28

10.1 to 15 22.1 to 33 5.5 31

15.1 to 20 33.1 to 44 7.4 42

ECT TEST METHOD: FEFCO No.8 (European Federation of Corrugated Board Manufacturers)

or ASTM – D 2808 -69 (American Standards) or ISO 3037 (International Standards Organisation)

Please note the following

• Cartons cannot be over / under packed as they may collapse during transit.

• Each supplier is responsible for the quality of packaging and therefore will be held responsible for damages, concealed shortages and claims resulting from inferior packaging.

• Taping should create an “H” pattern on both the top and bottom of the carton by sealing

across all of the major and minor flaps.

- Minimum tape width needs to be 5 cm. No clear or brown sealing tape may

be used. For security reasons only branded or security sealing tape must be

used.

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5.2 Packaging instructions

Packaging products

OR

Bubble wrap stand

Bubble wrap stand

Ticket stand

Ticket stand

Ticketing & tagging

If the ring is a set, do not put individual bands in separate bags

Correct way of ticketing a set & inserting the ring in a bag

Ticket barcode must be visible for scanning

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Jewellery packaging

Do not separate earring sets, put a pair in a bag

Correct way of bagging earrings, a pair in a bagStaple Jewellery packets into bundles of 5 or 10

Do not put Jewellery in tissue paper

5.3 Incorrect or inadequate carton closure

Carton closure is to be pressure-sensitive sealing tape or water-activated reinforced tape, branded with

company name/logo with a security message “This carton has been sealed with security tape. If the

seal is broken or damaged, do not issue clean receipt before checking contents.”

Carton Sealing Tape

Taping should create an “H” pattern on both the top and bottom of the carton by sealing across all of the major and minor flaps. All cartons should have a minimum tape width of 5cm.