Merchandise delivery may be refused for the following reasons:
- Merchandise received after purchase order Cancel Date or prior to the Ship Date
- Merchandise received 5% under or more than Purchase Order quantity for orders over 1000 units – rule is applied at the Sku level – Out of Tolerance
- Merchandise received 10% under or more than the Purchase Order quantity for orders under 1000 units – rule is applied at the Sku level – Out of Tolerance
- Insufficient Purchase Order information on Bill of Lading
- Missing Packing List or improperly marked cartons
- Split or incomplete shipments without prior approval from the buyer
- Delivery without an appointment
- Delivered to incorrect DC address
Note: The vendor is required to notify the Buyer in advance of shipping an order that varies from the quantity ordered. Shipping variances will only be accepted with a Buyer’s approval.
Any additional freight costs incurred due to a refusal will be the responsibility of the vendor.
OVERAGES / SHORT SHIPMENTS –Out of Tolerance packing list
The acceptable unit variance rate for PO’s that are more than 1000 units is +/- 5%. The tolerance check is applied to the total order and by size/color.
The acceptable unit variance rate for PO’s that are under 1000 units is +/- 10%. The tolerance check is applied to the total order and by size/color.
Additionally, you are required to notify your buyer for approval before shipping an order that is Out of Tolerance.
Shortages that exceed 5% on an order quantity that is over 1000 units, or 10% for an order quantity that is under 1000 units, may result in a chargeback being issued, and or the refusal of the over.
Overages that exceed 5% on an order quantity that is over 1000 units, or 10% for an order quantity that is under 1000 units, may result in a chargeback being issued, and or the refusal of the over.
NOTE: For overages we reserve the right to return merchandise to vendor with a chargeback for processing & handling or accept overage at a discounted price of 50% off of LDP.
- Merchandise must be prepared and shipped in accordance with the instructions in the Vendor Guidelines. Shipments not in conformance with these guidelines may be refused and returned at Vendor cost, or will be assessed a chargeback according to the schedule below.
- Vendor debit memos will be generated by the Vendor Relations & Compliance Manager at the Distribution Center for all violations of packaging and marking requirements. Chargebacks will also be issued for internal damage related to insufficient packaging and Vendor-related quality problems. Urban Outfitters, Inc. (UOI) will provide photographs or documentation whenever possible.
- Chargebacks will be approved by the Buyer prior to being issued. Upon approval, all copies will be sent to the Accounting Department for processing. All negotiations regarding Chargebacks must be addressed with the Buyer.
- Approved chargebacks will be deducted from the next invoice payment for Vendors shipping under Net Terms. Chargebacks issued against orders shipped under the terms Letter of Credit will require the Vendor to wire the amount of the chargeback directly to the UOI Accounts Payable Department.
- The Statute of Limitations for contesting chargebacks and shortages is 6 months. UOI will not address questions on chargebacks or research disputes on shortages that exceed 6 months from the date that the order was delivered. It is our policy to issue chargebacks within a few days of the order being delivered. All shortage claims and chargebacks are presented to the Vendor within 30 days of the time that the order has been received. We expect that our Vendors will respond in a timely basis with any questions or concerns. We will not be held responsible for shortages or chargeback claims that are over 6 months old.
- Direct Orders Only – Backorders: All orders are to be delivered to the Gap Direct DC or the Reno Direct DC by the Cancel Date on the Purchase Order. Deliveries that arrive after the Cancel Date, without specific authorization from the Buyer, will be subject to a penalty of 2% per day charge (10% per week) or cancellation of the order. In addition, any backorders that are incurred due to receiving the merchandise after the date required, may result in a chargeback of $8.00 per/unit on each backorder taken.
- Anthro Direct Orders Only – Defective Allowance: A 1% defective allowance will be deducted from all Apparel and Accessory invoices. Defective merchandise returned by our customers will not be returned to our Vendors unless the units returned on a specific item substantially exceed the 1% allowance. If this should occur, the Vendor will be contacted and informed of the problem and a Return to Vendor (RTV) will be negotiated.
Violation Codes and Fees
|Expense Code||Definition||Violation Cost|
|AHQA||ADDED HANDLING / QUALITY ASSURANCE REQUIRED||$ 20.00|
|BACK||BACK ORDERS INCURRED AS RESULT OF DELIVERY AFTER CANCEL DATE||$ 8.00|
|DIAD||DELIVERY TO INCORRECT ADDRESS- UPS/FED EX||$ 100.00|
|DTIA||DELIVERY TO THE INCORRECT ADDRESS- LTL OR CC||$ 250.00|
|DWAP||DELIVERY WITHOUT APPT OR AFTER DC HOURS||$ 200.00|
|FCPM||FAILURE TO COMPLY WITH PRODUCT MARKING REQUIREMENTS||$ 0.25|
|FCPME||FAILURE TO COMPLY WITH PRODUCT MARKING REQUIREMENTS||$ 0.25|
|FPSP||FAILURE TO PROVIDE SUFFICIENT PROTECTION (FRAGILE)||$ 200.00|
|FRVB||FAILURE TO REMOVE VENDOR BARCODE OR MSRP||$ 100.00|
|FRVBE||FAILURE TO REMOVE VENDOR BARCODE OR MSRP||$ 0.25|
|FSCD||FAILURE TO SHIP IN CORRECT CARTON & DIMENSIONS||$ 200.00|
|HAZ||HAZ-MAT NON-COMPLIANCE||$ 200.00|
|IBOP||IMPROPER BOL PREPARATION||$ 100.00|
|IFRT||INCORRECT FREIGHT TERMS||$ 200.00|
|INCA||INCORRECT CARRIER USED||$ 200.00|
|INCD||INCORRECT CUSTOMS DESCRIPTION IN TRADESTONE||$ 100.00|
|INPL||INSUFFICIENT / INCORRECT INFORMATION ON PL||$ 100.00|
|IPC||INCORRECT PREPACK CONFIGURATION||$ 100.00|
|IPCE||INCORRECT PREPACK CONFIGURATION||$ 0.20|
|IPOF||IMPROPER PLACEMENT OF LABEL/ TICKET||$ 100.00|
|IPOFE||IMPROPER PLACEMENT OF LABEL/ TICKET||$ 0.20|
|LATE||FAILURE TO DELIVERY IN THE SHIP WINDOW||$ 100.00|
|MIXD||MIXED PO’S OR SKU’S IN MASTER CARTON- SKU QTY OVER 25 UNITS||$ 100.00|
|MIXDE||MIXED PO’S OR SKU’S IN MASTER CARTON- SKU QTY OVER 25 UNITS||$ 0.20|
|MNBS||MERCHANDISE NOT BAGGED/BAGS NOT SEALED||$ 100.00|
|MNSBE||MERCHANDISE NOT BAGGED/BAGS NOT SEALED||$ 0.25|
|NOPH||NO PHOTO SAMPLE SENT||$ 100.00|
|NOPL||NO PACKING LIST WITH SHIPMENT||$ 200.00|
|PLI||PRODUCT LABELED WITH INCORRECT LABELS/ TICKETS||$ 100.00|
|PLIE||PRODUCT LABELED WITH INCORRECT LABELS/ TICKETS||$ 0.25|
|PLPP||PACKED LOOSE ON PP ORDER OR PP ON LOOSE ORDER||$ 100.00|
|PLPPE||PACKED LOOSE ON PP ORDER OR PP ON LOOSE ORDER||$ 0.20|
|PNL||PRODUCT NOT LABELED/TICKETED||$ 100.00|
|PNLE||PRODUCT NOT LABELED/TICKETED||$ 0.25|
|PSOH||PRODUCT SHIPPED ON HANGERS||$ 100.00|
|PSOHE||PRODUCT SHIPPED ON HANGERS||$ 0.20|
|QTYD||QTY DIFFERENCE + OR – 5% PER SKU||$ 200.00|
|SSBA||SPLIT OR PARTIAL SHIPMENT WITHOUT BUYER APPROVAL||$ 100.00|
|SWOL||FAILURE TO COMPLY WITH REGULATORY REQUIREMENTS||$ 100.00|
|TRDS||TRADESTONE NON-COMPLIANCE||$ 100.00|
|UMAC||UNMARKED OR IMPROPERLY MARKED CARTONS||$ 100.00|
|UMAE||UNMARKED OR IMPROPERLY MARKED CARTONS||$ 0.20|
|WPSH||WRONG PRODUCT SHIPPED||$ 200.00|