Apparel Manual- 2007

Costco Wholesale Non-Foods QA Manual for Apparel - 1 - Revised 6/09/03

Costco Wholesale Non-Foods Quality Assurance

Apparel Manual Revision 4

2/5/07


Note to the vendor Lab Information • Costco Wholesale uses more than one 3rd party testing lab for consumer products testing and

inspections. • Clarification on which lab to use is listed in each test request. You may also contact QA for

clarification.

Costco E-mail Address Costco QA has set up a general e-mail address, [email protected]. This email address is used by the lab to e-mail all reports to Costco. The vendors can use it to contact QA if the project person is unknown.

Contact Information To obtain protocols please contact the QA project person or the appropriate testing lab listed on your test request. To obtain the vendor billing, production schedule and spec forms please contact the buying staff. For any questions feel free to contact Costco QA for direction. Please contact the following individuals with any questions. Jennifer Thompson Becky Berg Aaron Rusnak Non-Foods QA Manager Non-Foods QA Assistant Manager Non Foods QA Phone: 425-313-6580 Phone: 425-313-2977 Phone: 425-427-7669 Fax: 425-313-2083 Fax: 425-313-2056 Fax: 425-313-2056 Email: [email protected] Email: [email protected] Email: [email protected]


COSTCO WHOLESALE....................................1

NOTE TO THE VENDOR....................................................................2

GENERAL MANUAL.....................................................................................6

PART 1 OVERVIEW.................................................................................................................6

1.1 RESPONSIBLITIES...........................................................................................................................6 1.2 BUYING & NON-FOODS QA DIVISION OF LABOR.................................................................8 1.3 WHAT ITEMS GO THROUGH THE QA PROCESS? .................................................................8

PART 2 THE QA PROCESS: A SUMMARY..............................................................................9 2.1 THE PROCESS: START TO FINISH.............................................................................................9 2.2 QA PROCESS FLOW CHART.......................................................................................................10

PART 3 THE QA PROCESS: A DETAILED EXPLANATION..............................................11 3.1 TEST REQUESTS ............................................................................................................................11 3.2 FACTORY EVALUATIONS...........................................................................................................12 3.3 PRODUCT TEST FOR QUALITY AND LABEL ........................................................................13 3.4 SUBMITTING SAMPLES TO THE TESTING LAB...................................................................16 3.5 WAREHOUSE PULL TESTING PROGRAM..............................................................................20 3.6 PRODUCT INSPECTION AT THE FACTORY ..........................................................................21 3.7 RANDOM INSPECTION PULL TESTING..................................................................................24 3.8 RECEIVING REPORTS..................................................................................................................24 3.9 RETESTING AND REINSPECTIONS ..........................................................................................27 3.10 COMPLETION AND AUTHORIZATION .................................................................................28

PART 4 READING REPORTS..............................................................................................29

4.1 REPORTS FORMATS FOR FACTORY EVALUATIONS ........................................................29 4.2 REPORT FORMATS FOR QUALITY AND LABEL..................................................................29 4.3 REPORT FORMATS FOR 9462 EC ..............................................................................................30 4.4 REPORT FORMATS FOR PRODUCT INSPECTION...............................................................30

PART 5 COST AND BILLING..............................................................................................30


5.1 VENDOR RESPONSIBILITY ........................................................................................................30 5.2 TESTING COSTS.............................................................................................................................31 5.3 FREIGHT CHARGES FOR SAMPLE SHIPMENT ....................................................................31 5.4 FACTORY EVALUATION & INSPECTION COSTS ................................................................31 5.5 INVOICING PROCEDURES - VENDOR BILLING...................................................................31 5.6 PRE-PAYMENT FOR NEW VENDORS.......................................................................................32 5.7 OVERDUE/ON-HOLD ACCOUNTS .............................................................................................32

PART 6 COSTCO WHOLESALE VENDOR (CV) PROGRAMS ...................................32

6.1 CV DEVELOPMENT TESTING PROGRAM..............................................................................32 6.2 RECEIVING RESULTS ..................................................................................................................33

PART 7 ADDITIONAL REQUIREMENTS FOR CHILDREN’S SLEEPWEAR- (USA ORDERS ONLY) .......................................................................................................................................33

7.1 EXPLANATION ..................................................................................................................................33 7.2 COSTCO WHOLESALE REQUIREMENTS FOR NON-TIGHT FITTING SLEEPWEAR ....34 7.3 REQUIREMENTS FOR TIGHT FITTING SLEEPWEAR ...........................................................34 7.4 REQUIREMENTS FOR NON-TIGHT FITTING SLEEPWEAR .................................................34 7.5 STAGES OF TESTING.......................................................................................................................35

CASHMERE MANUAL...........................................................................37

PART 8 OVERVIEW..............................................................................................................37

8.1 CASHMERE BUYING GUIDELINES ..........................................................................................37 8.2 LAB QUALIFICATIONS FOR CASHMERE TESTING............................................................37 8.3 RESPONSIBILITIES .......................................................................................................................38

PART 9 THE CASHMERE QA PROCESS: A SUMMARY..............................................38

9.1 HOW TO SUBMIT CASHMERE SAMPLES FOR PRODUCTION TESTING ..................................................40

PART 10 COSTCO VENDOR (CV) CASHMERE DEVELOPMENT PROGRAM....41

10.1 EXPLANATION .............................................................................................................................41 10.2 CV FORM........................................................................................................................................41 10.3 SAMPLE SUBMISSION PROCEDURES ...................................................................................42


10.4 RECEIVING RESULTS UNDER THE CASHMERE CV PROGRAM...................................43 10.5 CASHMERE TESTING TRACKING SPREADSHEET ...........................................................44 10.6 CASHMERE LAB CONTACT INFORMATION.......................................................................44


GENERAL MANUAL Nothing in this manual shall be interpreted to relieve vendors from ascertaining and complying with any and all applicable laws and regulations in their most current form. To the extent that this manual prescribes steps that are not in compliance with applicable law and regulations, the latter shall govern. In addition, the fact that a vendor may carry out procedures prescribed in this manual shall not limit Costco Wholesale in the exercise of its rights to reject or revoke acceptance of merchandise should it determine that the merchandise is not in conformance with applicable laws, regulations, agreements and/or purchase orders.

Navigation Hint To keep track of your place in the manual at all times, and to easily locate all chapter subheadings from any location, create a Table of Contents sidebar on the left hand side.

Part 1 OVERVIEW

Definitions Testing Lab: refers to the many different test and inspections offices that provide factory evaluation, testing and inspection services for the Costco Wholesale Non-Foods Quality Assurance Program. QA: refers specifically to the Costco Wholesale Non-Foods Quality Assurance Department. QA coordinates tests, inspections and factory evaluations for non-foods products for Costco Wholesale buyers worldwide. QA Process: refers to the QA Factory Evaluation, Test & Inspection Program that is coordinated through the Non-Foods QA Department. Test Request: refers specifically to the Testing Lab Apparel Test & Inspection Request Form. RCDS: refers to the Report Coversheet & Defect Summary –Rejection and the Report Coversheet & Defect Summary –Approval forms. CV Test & Inspection Program: refers to a vendor-run program developed by QA for Costco Wholesale vendors who want to complete development testing prior to production of an item. The Costco Wholesale Non-Foods Quality Assurance Manual for Apparel details the procedures and requirements of the QA Factory Evaluation, Test & Inspection Program for apparel. For questions about the Costco Wholesale buying process, please contact the respective buying department.

The QA Program supports the commitment of Costco Wholesale to offer quality products to its members. Costco Wholesale has established a comprehensive factory evaluation, testing and inspection program to monitor and ensure compliance with all applicable government, industry and Costco Wholesale standards for safety, quality and performance.

1.1 RESPONSIBLITIES

QA Responsibilities • Create and distribute the Costco Wholesale Non-Foods QA Manual for Apparel to all vendors,

buyers and testing lab. • Advise vendors and testing lab of any changes in procedures or requirements.


• At the buyer’s request, distribute Testing Lab Apparel Test & Inspection Request Form (hereafter called the Test Request Form) to the vendor and testing lab noting the factory evaluation, and testing & inspection requirements for each item.

• Analyze, interpret and summarize reports for buyers and vendors. • Forward the buyer’s decision on each report to the vendor and the testing lab, and follow up to

ensure that all necessary corrections are made. • Track each item through the QA process to help ensure on-time shipments. • Issue a QA Letter at the completion of the QA Process to indicate to the buyer and vendor that all

QA requirements have been met. If all required factory evaluations, testing and inspections are not completed and/or are not approved by the buyer, the QA Letter will not be issued.

• Respond promptly to all emails and calls from vendors, buyers and the testing lab. • Assist the testing lab in collecting outstanding payments from vendors.

Vendor Responsibilities • Know, understand and comply with all laws in both the country of origin and the destination

country as they relate to the factory and the product. • Read and abide by all of QA’s procedural, performance and quality requirements as laid out in this

manual. • Complete and return each Testing Lab Test & Inspection Request Form Confirmation to QA

within 48 hours. • Test all trim, piece goods, pre-production garments and labeling as needed to ensure that there are

no failures during the production testing and inspection process. • Contact the designated inspector coordinator to arrange factory evaluations and product

inspections 7 days in advance of the specified date on the Test Request to ensure the inspection can be booked for the day requested.

• Submit the correct number of samples, with the proper labeling and the Test Request to the designated testing lab by the specified date.

• Respond promptly to all emails and calls from QA and the buyer regarding needed corrective action for product.

• If re-evaluations, re-tests or re-inspections are needed, the vendor must request and follow through with these in a timely manner per QA’s instructions.

• Vendors are responsible for all costs (see Part 5) associated with the QA Process, including factory evaluation, test and inspection fees and any freight charges incurred in mailing samples to the testing lab and from the testing lab to QA and/or the inspectors.

• Vendors must pay all testing and inspection bills within 30 days of the invoice date. • Vendor shall not ship any product until all evaluations, tests and inspections are completed and

approved and/or the buyer approves shipment.

Testing Lab Responsibilities • Immediately notify QA and/or the vendor with any questions about the Test Request. • Immediately notify QA and vendor if testing is put on-hold for any reason. • Issue clear, accurate reports using the required QA report format including the protocol, charts and

digital photos to explain all defects found. • Send all reports as a single PDF document via email to [email protected] and to the vendor

contact(s) noted on the Vendor Billing & Correspondence Information Form. • Meet all quoted turn-around times for factory evaluation, testing and inspection report issuance

(see Section 3.8). • Issue detailed, accurate invoices in the correct format to vendors and/or QA within 30 days of

report issuance. Invoices will by issued by the testing lab no later than 60 days after the report issuance date.

• Communicate any problems to vendors and QA immediately.


Private Label Apparel/Manufacturing Department Responsibilities Note: Private Label Apparel/Manufacturing is responsible for the following steps when the item is sourced or coordinated through their department.

• Advise vendors in advance that they will be required to go through the QA Process. • Send the Vendor Billing & Correspondence Information Form, Production Schedule Request

Form, and Size Specifications Sheets, Product Specification Sheet to the vendor for completion • Verify the information provided by the vendors after the forms are returned. • Forward the forms with a completed Test and Inspection Request Form -Buyer Use a minimum of

4 weeks prior to the start of production. • To minimize costs to the vendor, complete a single Test and Inspection Request Form-Buyer Use

for all Costco Wholesale buyers in all countries buying the same item (this will allow QA to coordinate the QA Process to minimize fees and minimize duplicate testing).

• Approve or reject reference samples within 24 hours of receipt. • Respond to rejected QA reports within 24 hours of receipt • If Private Label Apparel/Manufacturing disagrees with the QA Rating, both the buyer and the

buyer’s GMM signatures are necessary for a report override. • Keep QA informed of instructions given to the vendor on how/when to correct product failures.

Buyer Responsibilities Note: Following are the buyer’s responsibilities for all products NOT sourced by the Private Label Apparel/Manufacturing Department.

• Advise vendors in advance if they will be required to go through the QA Process. • Send the Vendor Billing & Correspondence Information Form, Production Schedule Request

Form and Size Specifications Sheets, Product Specification Sheet, to the vendor for completion. • Verify the information provided by the vendors when the forms are returned. • Forward the forms with a completed Test and Inspection Request Form -Buyer Use to QA a

minimum of 4 weeks prior to the start of production. • Approve or reject reference samples within 24 hours of receipt. • Respond to rejected QA reports within 24 hours of receipt • If the buyer disagrees with the QA Rating, both the buyer and the buyer’s GMM signatures are

necessary for a report override. • Keep QA informed of instructions given to the vendor on how/when to correct product failures.

1.2 BUYING & NON-FOODS QA DIVISION OF LABOR Non-Foods Quality Assurance is a service department within non-foods merchandising. It is our responsibility to facilitate a quality assurance process that ensures compliance with the quality, safety and specifications of the products sourced by Costco Wholesale buyers worldwide.

While QA reviews and rates reports based on Costco Wholesale’s requirements, the QA Report Rating is only a recommendation to the buyer. The buyer and their GMM ultimately decide whether a report and/or product will be accepted.

Buyers are also responsible for deciding what items will and will not go through the QA process.

1.3 WHAT ITEMS GO THROUGH THE QA PROCESS? When a buyer books an item, they must decide if the QA Process coordinated by QA will be required.

Unless otherwise advised by the buyer, all items will go through the QA Process.

If the buyer exempts an item from the QA Process, the vendor may still be encouraged to do their own factory evaluations, testing and inspections to ensure that their product and factory are in compliance with all regulatory, voluntary and Costco Wholesale standards.


Part 2 THE QA PROCESS: A SUMMARY

2.1 THE PROCESS: START TO FINISH The QA Process should proceed in the following chronological order:

1. Costco Vendor (CV) Development Testing Program (optional) 2. Factory Evaluation 3. Product Test for Quality & Labeling 4. 94/62/EC testing for packaging (UK shipments only) 5. Product inspection(s) in the factory(s) 6. QA process is complete and QA Letter is issued by QA 7. Shipment is authorized by the buyer

Note: The vendor should complete each stage and wait for approval from QA before proceeding to the next stage. However, it is understood that this is not always possible. If the vendor does proceed with production, the vendor should advise QA.

The QA Factory Evaluation Test & Inspection Program is commonly referred to throughout this document as the QA Process.


2.2 QA PROCESS FLOW CHART

2. QA issues Test Request Packet to Vendor and BVCPS.

3. Vendor books Factory Evaluation with BV CPS Inspector.

4. Factory starts production and submits 3 sets of samples to Testing Lab for processing.

4a. Lab sends 1 set to

Inspector.

4b. Lab sends 1 set to QA or

Buyer.

4c. lab keeps 1 set for testing.

5a. Vendor books

Inspection

5b. Buyer reviews against

Buy Sample

5c. Quality & Label Review

issued by BV CPS.

8. QA Letter issued and Buyer authorizes shipment.

6b. Approved, continue with production.

6a1. Rejected: Vendor follows QA instructions on RCDS prior to the re-Inspection, if no re- inspection is required – return

to 5a (re-inspection).

6a2. Rejected: Testing, Inspections and Production are stopped, return to step 4 (QA to advise details).

6a3. Rejected: Vendor follows QA instructions on RCDS and submits retest samples to testing lab. QA to advise details.

3a. Factory Evaluation Rejected, for re-evaluation

return to step 3.

3b. Factory Evaluation Approved.

7. All required QA test and inspections are completed and approved.

1. Buyer sends Product Specification Sheet, Size Specification Sheet, Vendor’s Billing & Correspondence Information Form, and Production Schedule Request Form to vendor.

Vendor completes and returns forms to Buyer.

Buyer Reviews and Approves forms.

Buyer sends completed and approved forms with BV CPS Test & Inspection Request Form – Buyer Use to QA.


Part 3 THE QA PROCESS: A DETAILED EXPLANATION

3.1 TEST REQUESTS

What is a Test Request? The term “Test Request” is commonly used to describe the Testing Lab Apparel Test and Inspection Request Form. This is a 2-page document issued by QA that explains which tests and inspections are required for each product.

The Role of the Buyer • To initiate the QA Process, the buyer forwards the following forms to the vendor for completion.

These forms can be found in the Forms section of this manual. • These forms include:

o Production Schedule Request Form o Product Specification Sheet o Size Specifications Sheets o Vendor Billing & Correspondence Information Form

• The vendor completes the forms and returns them to the buyer. Once the buyer has received and approved all forms, they are submitted with a (internal use) Test and Inspection Request Form -Buyer Use to QA. The Role of QA

• QA completes the Test Request (based on the above documentation from the buyer). • The Test Request and other related QA documents are emailed to both the vendor and the testing

lab. The Role of the Vendor

• The vendor and the testing lab receive the Test Request via email (PDF document). • The vendor signs and returns the Lab Test & Inspection Request Form Confirmation to QA within

24 hours. • The vendor should follow the instructions on the Test Request to arrange factory evaluations and

product inspections, and attach the form when samples are submitted to the testing lab for testing.

Page 1 is detailed information related to product and the factory (Item #, Dept #, Item Description, Colors and or patterns, Factory Name, Production Run, etc.)

Explanation of what is required for item, Factory Evaluation, Testing and / or Inspections

Revision of a Test Request: If a Test Request has to be revised, QA will check this box and write the reason for revision-QA will then re-email the forms to the vendor & the testing

Page 2 is the Vendor Instructions for Lab Testing (Factory Evaluations & Inspections).


3.2 FACTORY EVALUATIONS

What is a Factory Evaluation A factory evaluation occurs when representatives of the testing lab Inspection division travel to the factory to review its ability to make product for Costco Wholesale. The factory evaluation protocol can be obtained by contacting your QA project coordinator. This form lists all questions that will be asked in the factory evaluation.

Factory Evaluation Ratings The Factory Evaluation requirements were updated (June, 2003). As a result the rating structure has also been updated.

Testing Lab’s Factory Evaluation Rating System: GOOD 90% rating with no critical defects CORRECTIVE ACTION REQUIRED (CAR) 89.9%-75% rating with no critical defects UNSATISFACTORY 74.9% or less rating and/or any critical defects

Costco Wholesale’s Factory Evaluation Rating System Approved QA rating Exemption: Factory is approved for 1 year 90% rating with no critical defects plus all 3 metal detection Disapproved QA rating Exemption: Factory is approved for that item only 89.9%-75% rating with no critical failures or 2 of 3 methods for controlling metal in products Rejected QA rating Exemption: Factory must be re-evaluated 74.9% or less with no critical failures or factory with 1 of 3 methods for controlling metal in product Unsafe/ Misleading QA rating Exemption: Factory must be re-evaluated Any percentage rating noting no metal detection equipment or policies

Note: Factories making children’s garments are required to have a metal detector. Based on the production method for adult garments, if the factory does not have a metal detector but they do use needle guards, have a needle replacement policy or some other means of ensuring no metal is left in the garments, Costco may approve the factory despite not having a metal detector.

What is a Code of Conduct Audit (Social Compliance)? The Code of Conduct Audit is different from a factory evaluation. A Code of Conduct Factory Audit, sometimes referred to as a Social Compliance Audit, verifies whether the factory is in compliance with the national and local labor, environmental and health & safety laws of the manufacturing country.

Please note that the Code of Conduct Audit is NOT coordinated by QA. For questions regarding this type of audit, please contact:

Betty Pien Code of Conduct Compliance Costco Wholesale Import Department 999 Lake Drive Issaquah, WA 98027 USA

Email: [email protected] It is possible for a factory to pass a CSCC audit and fail a factory evaluation or vice versa. This occurs because the content and purpose of these two audits are different.


When to Arrange a Factory Evaluation As a general rule, the factory evaluation should always be done as soon as possible after the test request packet is received from QA.

The factory does not need to be in production at the time of the factory evaluation. The factory evaluation can be conducted either before production starts or during production. The factory evaluation cannot be conducted after production is completed.

The test request gives the target date by which the factory evaluation should be completed.

The factory should contact the testing lab to schedule an appointment for the factory evaluation at least 7 days in advance to help ensure the factory receives the date they request.

How to Arrange a Factory Evaluation • When QA issues the Test Request packet, the testing lab logs in the factory evaluation request. • The testing lab then emails the Booking Form to the vendor contact listed on the Vendor Billing &

Correspondence Information Form in the “Who Receives Requests” section. • The Booking Form must be 100% complete and returned to the testing lab inspection coordinator. • Booking Form: The testing lab inspection coordinator will send the Booking Form to the vendor for

completing. The vendor must complete and return it to the testing lab before they will be given an inspection or factory evaluation appointment.

• Once the testing lab receives back the completed Booking Form, they will call or email the vendor to book an inspection/evaluation date. The vendor should contact QA if a response is not received from the testing lab within 48 hours.

• If the testing lab receives the Booking Form from the vendor and it is not complete, they will return it to the vendor for completion.

• Once the testing lab receives the completed form, they will book the factory evaluation with the vendor.

Costco Wholesale does not accept non-communication as a valid reason for a factory

evaluation, testing or inspection delays.

3.3 PRODUCT TEST FOR QUALITY AND LABEL

What is a Product Test for Quality & Label? A product test for quality and label is a comprehensive test for both the product and labeling for safety, quality and durability against regulations, voluntary standards and Costco Wholesale requirements.

Testing lab and QA have created a series of testing protocols. A complete set of protocols exists for every Costco Wholesale region (USA, Canada, Mexico, UK, Japan, Taiwan, Korea). Each protocol is a

The vendor or factory should contact the testing lab 7 days before the target date to schedule their evaluations

The testing lab contact list will be attached to the test request. On this contact list the factory can find the testing lab contact information to schedule their factory evaluation and / or inspection.

If a factory evaluation is required, the test request form will be checked “yes” here.


comprehensive checklist of all Costco Wholesale required tests including, but not limited to: fiber content, care labeling verification, flammability testing, lead in surface coatings and dimensional stability. If more than one Costco Wholesale region is purchasing the SAME item, all countries can be listed on the same test request. If this happens, the testing lab will perform the basic testing once. For apparel and shoes, many countries use the ASTM and AATCC test methods. For this reason, much of the testing for multiple countries is only actually performed once. The testing lab will then review the test protocol for each additional country and will perform ONLY the tests that are unique to that specific country.

This procedure for sharing testing saves the lab time in testing the same item for multiple countries, and it saves the vendors money in testing fees, sample expenses and freight fees as well as improving the turnaround time for the reports. One report will be issued for each country, and a minimum report charge will be invoiced for each “additional” country.

Product Quality & Label Test Ratings Testing Lab’s Product Quality & Label Test Rating System:

GOOD No failures or defects CORRECTIVE ACTION REQUIRED (CAR) Minor product failures/specification non-

conformance UNSATISFACTORY Labeling violations/major product failures

Costco Wholesale’s Product Quality & Label Test Rating System Because the potential failures for a Product Quality & Label Test are many, it is not possible to clearly identify the Costco Wholesale rating for all types of failures. (Reference Section 3.8 for a general description of the different Costco Wholesale Report Ratings.)

A Product Quality and Label test report will not be complete unless all sewn in labels, hangtags, care labeling and fiber content labeling are included with the samples when submitted to the testing lab. If the final labeling is not yet ready, drafts of all labeling can be submitted.

What is a 94/62/EC Test? All items shipped to the UK will be required to pass 94/62/EC testing. 94/62/EC is part of the European Directive that addresses the excessive use of packaging materials that lead to environmental pollution. The goal of the directive is to address the quantity, quality and labeling of all packaging materials used on an item. As part of the QA Program, all packaging materials and components used on an item will be tested to 94/62/EC. 94/62/EC sets limits for the amount of toxic heavy metals that are present in outer and inner packaging materials and components such as color label, hangtag, master carton, stickers, tape, banding materials, wrapping papers, banding straps and inks.

The legislation calls for the sum of concentration levels of LEAD, CADMIUM, MERCURY and HEXAVALENT CHROMIUM present in packaging or packaging components not to exceed 100 parts per million by weight (0.01%) These tests will normally take 5-7 working days upon receipt of sufficient test samples. Please attach the test request with the samples for identification before sending to the testing lab. Although this test requires that ALL packaging-related materials be tested, the testing lab will choose and test 5 key materials or components.

• If the item being produced is shipping to the United Kingdom the quality testing for this item will include 94/62/EC testing. This will be indicated on the Test Request here.

• Attached to the Test Request will be a 94/62/EC Testing Explanation Form. This explanation page will list out the required amount of samples that will need to be submitted for testing.

• Vendor must indicate on the Test Request that 94/62/EC testing is being requested.


94/62/EC

Attached is a list of the types of packaging components and the number of samples to be sent to the testing lab. To avoid delays, please be sure ALL packaging-related components are submitted, even if they are not on the list. Contact the Testing Lab for the required number of samples if the component is not on the list.

Test Turn Around Time Under normal circumstances, products can be tested against Costco Wholesale’s test protocol within seven working days (not including the day the samples are received at the testing lab).

It is not always possible for the testing lab to complete testing on an item within the established turn-around time due to conditions inherent to specific tests.

Test results will NOT be issued in 7 working days if the Test Request is not included with the samples or if insufficient samples are received. Testing will be either delayed or put on-hold until

more samples are received. It is critical that the vendor/factory submit the number of samples required for full testing. The required number of samples can be found on the Test Request.

Sample Disposal after Testing Product testing is fully destructive. All samples become the property of Costco Wholesale and are retained by the testing lab for three months (two months in Hong Kong) from the date of submission.

Vendors can have samples returned to them provided they accept all costs for re-packaging and shipping. Before the testing lab can return any samples, the vendor must obtain authorization from QA.

Vendors are responsible for all shipping costs associated with the submission and return (by request only) of test samples.

Master Carton 1 pc Ink used for printing of Master Carton – all colors 50 ml per color Polybag 10 pcs Ink used for Printing of Polybag – all colors 50 ml per color Blister (clamshell) 10 pcs Blister card – all designs or styles 5 pcs each Instruction sheet 3 pcs each Printed label for different designs or styles 5 pcs each Adhesive tape for different styles and sizes 1 roll each Insert card for different designs or styles 16 pcs each Tissue paper – all colors 3 pcs per color Logo card for different designs or styles 3 pcs each Window box w/ sheet for different designs or styles 2 pcs each Plastic screw holder for different color 10 pcs each Hang Tag 5 pcs Cable Tie 10 pcs (Approximate 20cm length for one piece) Plastie wire or Metal wire (twist ties) 50 gm Plastic Plastie (Banding Strap) 5 feet Plastic Fastener used to tighten banding straps 12 pcs


3.4 SUBMITTING SAMPLES TO THE TESTING LAB

When to Submit Samples • As soon as the factory starts production, they should pull the first few pieces from the production

line and submit them with the test request to the designated testing lab. • The vendor MUST also provide a UPS or DHL account number that the lab can use for billing

“third party” courier fees, to be used when the samples are forwarded on to the inspector and QA. This information should be provided on the Testing Lab Vendor Courier Billing Information For Costco Wholesale Vendors.

• When possible, all colors/patterns should be submitted at one time to the testing lab to minimize costs and confusion.

• If it is not possible to submit all colors/patterns at the same time (due to production), the additional colors should be submitted as follows:

o Submit the correct number of samples (usually 3 complete sets) of each additional color with the original Test Request and a copy of the Product Quality & Label Report (if it has already been issued).

o Attach a note requesting that the samples be tested as “additional colors”---not full testing. This will ensure that the testing lab only conducts tests according to the Additional Color Test Protocol instead of the full test protocol.

o If “additional color” testing is not requested, the testing lab may conduct a complete test that will result in higher test costs for the vendor.

Where to Submit Samples Samples should be submitted to the testing lab location indicated on the test request. The samples should

not be sent to any other testing company or any testing lab other than the one noted on the test request. When deciding which testing lab to use, QA takes into consideration the equipment, the technical expertise for that category of product, familiarity with QA procedures and proximity to the factory. If the chosen testing lab is not the most convenient, contact QA to discuss for approval; however, QA will advise if a change in the designated testing lab location is possible. The test request will indicate the lab location that samples

should be submitted to. The actual address and contact information for that lab location

If lab testing is required it will be indicated on the Test Request.

Vendor should attach a copy of the Test Request each time samples are submitted to the lab. Failure to include a copy of the Test Request will delay testing. Vendor should indicate on the request what samples are being submitted.

If the vendor already has a complete Product Quality and Label test and is submitting “additional colors” for laundry testing only, the vendor should handwrite “additional color testing only reference report# XXXXXXXXXX”. This will ensure that the lab only conducts tests according to the Additional Color Test Protocol instead of the full test protocol.


Using a lab other than the one listed on the test request will cause testing delays and in such case the vendor may be required to pay additional shipping fees to ship the samples to the correct testing lab location.

How to Submit Samples • The factory should submit 3 complete sets per color/style.

1. One set of samples is for the testing lab’s testing 2. One set is for QA/buyer approval 3. One set is for use by the testing lab inspector when at the factory.

• Each “set” of samples should be packed separately and clearly marked “Test Samples”, “QA

Samples” or “Inspector Samples” • Testing Lab’s Test & Inspection Request Form must be included with the samples when they are

submitted to the testing lab. • Upon receiving the samples, the testing lab reviews them to ensure that there are an adequate

number of samples and that all the proper paperwork is included. • The testing lab will match the test request received from the vendor to the test request received

from QA and if there are any differences the testing will be put on-hold and QA will be notified. • If the testing lab receives the correct number of samples, they will lay them out and compare all

the sets to ensure that they are consistent in style, color, hand-feel, finishing and quality. • If the testing lab approves the samples for consistency, the samples are divided and distributed as

noted below.

Test Samples • The vendor must submit the correct number of samples for full quality and label testing. • The needed number of samples per color/pattern is noted on the test request. Sampling requirements

for testing are detailed later in this section. • It is recommended that vendors submit only the largest available sizes for testing to maximize the

amount of material available for testing. • If submitting additional colors the vendor must follow the below procedures to ensure that the

additional color samples are correctly linked to the original report by the testing lab. 1. Submit the correct number of samples for each additional color with the original test request and a

copy of the Product Quality & Label Report (if it has already been issued). 2. A note should be attached requesting that the samples be tested as “additional colors”---not full

testing. This will ensure that the testing lab only conducts tests according to the Additional Color Test Protocol instead of the full test protocol.

3. If “additional color” testing is not requested, the testing lab may conduct a complete test that will result in higher test fees for the vendor.

• Additional samples of trim components such as zippers, buttons will also be requested on the test request, please disregard if there are no trim components on the garment.

• The required number of samples for testing is explained in detail later in this section. • All samples must have final labeling including all sewn in labels, hang tags, etc. • If 94/62/EC testing has been requested, submit additional samples of all packaging and labeling. • If final labeling (labels, hang-tags, etc.) has not been finalized/printed, drafts can be submitted. Note: 94/62/EC can only be conducted on final production packaging and labeling.


Test results will NOT be issued in 5 working days if the Test Request is not included with the samples or if insufficient samples are received. Testing will be either delayed or put on-hold until

more samples are received. It is critical that the vendor/factory submit the number of samples required for full testing. The required number of samples can be found on the Test Request.

QA Samples • The required number of samples needed per color/pattern is noted on the test request. • The number needed for QA approval for garments is usually 1 sample per color/pattern representing

all sizes. • The number needed for QA approval for footwear is usually one shoe each-men’s size 9 & women’s

size 8. • All samples must have final labeling including all sewn in labels, hang tags, etc. • If final labeling (labels, hang-tags, etc.) has not been finalized/printed, drafts can be submitted.

Testing Lab Inspector Samples • The required number of samples per color pattern is noted on the test request. • The required number of samples needed for use in the inspections is usually 1 sample per color/pattern

plus a 12” x 12” swatch of each additional color/ pattern. • The required number of samples of footwear needed for use in the inspections is usually one shoe-

men’s size 9 & women’s size 8 unless otherwise noted on the test request. • All samples must have final labeling including all sewn in labels, hang tags, etc. • If final labeling (labels, hang-tags, etc.) has not been finalized/printed, drafts can be submitted.

What Happens While the Testing is in Progress? The vendor can proceed with production while waiting for the quality results, but this is done at their own risk. By this time, the buyer should have already received the samples that were sent by the testing lab via QA. If the sample is not what was agreed to, the vendor is alerted, production is stopped, testing & inspections are put on-hold and research needs to be done to determine why there is variation.

If the factory submits insufficient samples, or if the samples are not clearly marked for testing lab, testing will be put on-hold or delayed resulting in testing that may need to be expedited at the vendor’s expense. If shipments are delayed due to these testing delays, the vendor may be responsible for air-shipment, fast vessel charges and/or late shipment penalties at the buyer’s sole discretion.

Sampling Requirements for Fabrics & Garments The required number of samples is noted on the Test Request.

All Product Quality & Label Test samples should be mailed to the testing lab location indicated on your test request. The test request will indicate what samples must be submitted, Testing Samples, QA Samples, Inspector samples

The number of samples required for garment & trim testing, QA approval and inspector reference are clearly noted on the test request.

When submitting samples the test request form must be included with the samples as well as the vendor must mark on the test request which samples are being submitted.


Failure to submit the correct number of samples will result in the testing being put on-hold and/or testing delays. Following is information on sample requirements for various types of testing. This is for reference only (and for CV testing). While we are providing this information here, it is important that the vendor always send the number of samples noted on the test request.

Fabric (CV Development Testing only): Knit or Woven 2 yards first color 1 yard each additional color

Trim Testing* (CV Development and/or Garment Testing): Fabric appliqués 8 per color Bows 8 per color Zippers 30 per color or 15 per color + 15 pull tabs Snaps 50 per color Buttons: 30 per color

Adult Garments (CV Development Testing only): General 3 garments per color (largest size) + additional trim* Shorts 4 garments per color (largest size) + additional trim* Short sleeve shirts 4 garments per color (largest size) + additional trim* Underwear-general 6 pair + 3 pair per each additional color (largest size) Underwear-thong 10 pair + 6 pair per each additional color (largest size) Bras 4 per each style + 2 bras per each additional color (largest size) Socks 3 pair per color representing all sizes Pantyhose 4 pair per size + 4 pairs per style + 1 pair per each additional color *See Trim testing section for additional button, zipper and other trim sample requirements

Additional Sample Requirements: • If garments have trim components, additional pieces of all trim must be submitted with the garments.

See the “trim testing” section for sample requirements. • Small garments may also require additional samples because of the limited amount of material in each

sample. • Garments that have prints and/or trims may need additional samples to complete color testing. • If more than one care instruction is indicated on the sewn-in label, then double the number of samples

sent to the lab for testing. • It is not always possible to know if additional samples will be required to complete testing. If the

testing lab requests additional samples, the vendor MUST submit those additional samples ASAP to avoid testing delays.

• If the vendor has questions about the sample requirement for their item, they can email a digital photo to the testing lab for review.

If the factory submits insufficient samples, or if the samples are not clearly marked for the testing lab, testing will be put on-hold or delayed resulting in testing that may need to be expedited at the vendor’s

expense. If shipments are delayed due to these testing delays, the vendor may be responsible for air-shipment, fast

vessel charges and/or late shipment penalties at the buyer’s sole discretion.

Zipper Testing Costco Wholesale specifies that YKK zippers be used on ALL garments.

Below is a guide showing the most commonly used YKK zippers. The “YKK “Zipper Numbers” are listed under the relevant YKK “Fastener Class” number in the chart below.


When the testing lab receives samples they must identify the appropriate YKK Fastener Class for the zipper as the Fastener Class determines the testing that is to be done on the zipper. In order to do this, BV CPAS will use the following process:

1. The testing lab will look at the back of the zipper slider head for the alphanumeric YKK zipper number.

2. The testing lab will review the Product Specification Sheet to determine the claimed (if any) YKK Zipper Number and / or YKK Fastener Class.

3. If the YKK Fastener Class cannot be determined in Steps 1 or 2, the testing lab will look on the back of the zipper slider for the numeric YKK Fastener Class. This number will be used to determine the appropriate testing for the zipper.

4. If the Fastener Class is the only available information, and the Fastener Class is between 1-4, the testing lab will default to the most stringent testing requirements.

5. If the zipper is not marked with an YKK Zipper Number or YKK Fastener Class, and no information is available on the Product Specification Sheet, the zipper will be measured for closed chain width and tape width. The measurements will be used to determine the YKK Fastener Class.

If the determined Fastener Class is between 1-4, the testing lab will default to the most stringent testing requirements.

YKK Fastener (performance) Class

1-2 3-4 5-7

Closed Chain Width (in.) .125-.180 .125-.180 .180-.310 Tape Width (in.) 7/16-9/16 7/16-9/16 9/16-3/4 YKK Zipper Number(s) 2CC 3CC 3CF 4YG 3A / 3MA 3ER 5CN 3MA 3FR 5CP 3MB 3LF 5DCN 3MG 3VF 5DG 3MN 3VS 5DVF 3YAN 5MG 3YG 5RB 3YM 5RG 3YN 5RM 5RN 5RNP 5VS 5YAN 5YG 5YN Note: The list above includes only the most common YKK Zipper Numbers. The list is not complete. For a complete list of Zipper Numbers, contact YKK directly.

3.5 WAREHOUSE PULL TESTING PROGRAM Costco Wholesale may pull samples from various Costco Wholesale warehouses and submit them to the testing lab for testing. The warehouse Pull Testing Program is usually used for one of two purposes:

1. Random spot check for compliance, quality, specifications and consistency with the buyer approved production sample. This testing is in addition to any testing or inspections conducted prior to shipment to Costco Wholesale.


2. Full testing for product quality and label for items which are sold year-around. This testing is usually set up on a monthly or quarterly basis. The product is pulled from multiple warehouses and submitted to the testing lab for testing. This type of testing is usually used for basic items, as

it is more cost effective than testing and inspecting the product in the country of origin.

• If this testing is required the vendor will receive a copy of a test request advising that Costco

Wholesale will be pulling random samples from its warehouses and submitting them to the testing lab for testing.

• The product is usually keyed out by RTV as a defective. The RA (if required) is usually the

buyer’s name. This is an indication to the vendor that the samples were pulled and sent to RTV by QA.

3.6 PRODUCT INSPECTION AT THE FACTORY

What is a Product Inspection? A product inspection occurs when a representative from the testing lab Inspection Division travels to the factory to inspect a percentage of the product being made for Costco Wholesale. The inspection includes a review of the following:

1. Workmanship Inspection 2. Review for color, hand and appearance 3. Review of product against product specification sheet & approval samples 4. Size Specification Verification 5. Labeling Review 1. Inspections are required at different times during production.

The buyer will decide how many inspections are required and at what point in production they are needed. If inspections are required these will take place for every production run at every factory making the product.

Most items are required to have two inspections. For small orders, buyers may request only one inspection.

The number of inspections required will be noted on the test request.

If warehouse pull testing is required, Costco Wholesale will submit samples for testing from specified warehouse locations. The vendor will not need to mail samples in from production

If warehouse pull testing is requested it will be indicated on the test request form here. The request will state that Costco Wholesale will submit samples for testing. The vendor should NOT submit any samples to the lab. The form is being sent to the vendor as an FYI only.


Product Inspection Ratings Testing Lab’s Product Quality Test Rating System:

CONFORMED The number of non-conforming products found during the inspection and measurement audit are within the AQL and no additional problems are noted

NON-CONFORMED The number of non-conforming products found during the inspection and measurement audit exceed the AQL and/or additional problems are noted

Costco Wholesale’s Product Inspection Rating System

Because the potential failures for a Product Inspection are many, it is not possible to clearly identify the Costco Wholesale rating for all types of failures.

Reference Section 3.8 for a general description of the different Costco Wholesale Report Ratings.

Preliminary Inspection Results • Note that the testing lab will leave a copy of the handwritten Preliminary Inspection Results for

the factory after the inspection. All Preliminary Inspection Results are subject to change by the testing lab Manager that reviews the final inspection reports.

• The purpose of the preliminary results is to give the factory a head start in making necessary product improvements while the final report is written, emailed to the vendor and Costco Wholesale and processed by QA.

• The vendor should remember that not all “Non-Conformed” results are rejected by Costco Wholesale. If the vendor is unsure of what defects will and will not be acceptable, they should wait for the RCDS for QA.

THE VENDOR SHOULD NOT CONTACT THE BUYER UNTIL THE FINAL REPORT IS ISSUED. The buyer will be unable to comment on the failures without the report. If it is an emergency situation, the vendor can contact QA for advice on how to proceed with needed corrective action before the final Inspection Report is issued.

Sampling Method Sample size for inspection is determined by MIL-STD-105E, Single sampling plan for normal inspection level II.

Acceptable Quality Level (AQL) The AQL is the maximum percent of defectives considered acceptable for shipments of apparel and footwear.

Critical (0.0), Major (2.5), Minor (4.0) for Non Private Label items Critical (0.0), Major (1.0), Minor (2.5) for Private Label items

Critical Defect: A critical defect is one that could result in a hazardous or unsafe condition for individuals using the product, a violation of any Federal regulation.

Major Defect: A major defect is one that would result in the return of a product by the member or that could cause decreased consumer satisfaction relating to the appearance and/or functionality of the product.

Minor Defect: A minor defect is one not likely to render the product unserviceable or unsellable yet it does not conform to Costco Wholesale standards.


Reference Samples Required The vendor will not be allowed to schedule an appointment with the testing lab for an inspection if the inspector has not received reference samples from the testing lab. For this reason, it is critical that the factory submit the correct number of samples with all labeling to the testing lab as early in production as possible.

The testing lab inspector will go to the factory and conduct the product inspection using the samples they received from the testing lab. During the inspection, the inspector looks for all defects and compares production to the samples received from the testing lab.

If the inspector sees any significant variation, the inspector will pull 2 samples per color for variation and 1 sample for consistent defects and sends the samples to QA for buyer review. If there is no significant variation between what was tested and what was produced, and no consistent defects are found, the testing lab will not pull any additional samples.

When to Arrange an Inspection The Test Request (sent to both the testing lab & the vendor) will list target dates for the 20% inspection, 50% inspection, and 80% inspection. Since the vendor provides these dates on the Production Schedule Request Form, they are expected to be reasonably accurate.

The factory is required to have the correct percentage of product available

when the testing lab conducts the product inspection. The “Target Date” listed on the Test Request is only a target date. Only the factory will know when it is appropriate to arrange an inspection based on their production schedule.

An inspection appointment should be requested at least 7 days in advance of the preferred date to ensure first choice of inspection dates.

If the test samples/reference samples have not yet been submitted to the testing division, the testing lab will not give the vendor an inspection appointment.

How to Arrange a Product Inspection • The test request issued by QA (sent to both the vendor and the testing lab) lists target dates for the

inspections. When QA issues the test request packet, the testing lab will log the request into their system.

• The testing lab then emails the booking form to the vendor for completion. • The booking form must be 100% completed and then returned to their testing lab inspection

coordinator. • The testing lab will send the booking form to the vendor contact listed on the Vendor Billing &

Correspondence Information Form in the “Who Receives Requests?” section. • Booking Form: The testing lab inspector coordinator sends the booking form to the vendor for

completion. The vendor must complete and return to the testing lab before they will be given an inspection or factory evaluation appointment.

If the buyer has requested that the product be inspected at the factory prior to shipping it will be indicated here on the Test Request as either an inspection at 20%, 50% or 80%. (or a combination of 20%,50% and 80%) The vendor will need to contact BV CPS a minimum of 7 days prior to their estimated 20%, 50% or 80% target date to ensure that an inspector will be available able to travel to their factory on the desired date.


• Once the testing lab receives back the completed booking form, they will call or email the vendor to book an inspection/evaluation date. The vendor should contact QA if a response is not received from the testing lab within 48 hours.

• If the testing lab receives the booking form from the vendor and it is not complete, it will be returned to the vendor for completion.

• Once the testing lab receives the completed form, they will book the factory evaluation with the vendor.

• If the testing lab receives the completed booking form and the vendor wants to schedule an inspection, but the Testing Lab Inspection Division has not received reference samples, the testing lab will put the inspection on-hold and will not contact the vendor to arrange an appointment until they receive the samples.

Costco Wholesale does not accept non-communication as a valid reason for factory evaluation, testing or inspection delays.

Multiple Production Runs and/or Multiple Shipments Every item that goes through the QA Process (coordinated by QA) is required to be tested and inspected (and approved) before it ships.

If an item is produced in multiple production runs, each of the production runs must be tested and inspected. Similarly, if multiple shipments are made, and they ship before the 80% inspection, these goods will need to be inspected separately from the rest of production prior to shipment.

QA will schedule tests and inspections for every production run (at every factory) based on the information provided by the vendor on the Production Schedule Request Form. QA will issue a separate Test Request for every factory and every production run.

When QA reviews the Production Schedule Request Form, if the vendor has noted that they have multiple shipments for a single production run, QA will review the order to determine if each of the multiple shipments needs to be tested and inspected separately. If this is the case, QA will issue a separate Test Request for every multiple shipment for every production run.

3.7 RANDOM INSPECTION PULL TESTING Costco Wholesale may require that the testing lab pull random samples during the product inspection at the factory. The test samples will be pulled sealed in a box and marked by the inspector.

If this testing is required it will be noted on the test request. It will be the factory’s responsibility to ship the test samples to the designated testing lab for testing.

3.8 RECEIVING REPORTS Test Reports:

Test reports are issued on the last day of the quoted turn-time for the report. If the turn-time for the item is unknown, it can be found on the last page of the test protocol.

The turn-time for most apparel items is 5 business days. The report will be emailed out on the fifth day (not including the day the samples are received at the testing lab).

Inspection Reports: The testing lab will email product inspection reports within 24 hours of completion of the inspection. If the factory is in a remote area, it could take up to 48 hours to receive the report, due to travel time.

Factory Evaluation Reports: The testing lab will email factory evaluation reports within 3 days of completion of the evaluation. If the factory is in a remote area, it could take up to 5 days to receive the report, due to travel time.


If there are any questions about the status of a report, please contact the testing lab or the appropriate QA Contact (noted on the test request) for assistance. QA and the testing lab prefer email for communications regarding the status of testing and inspections

How the Testing Lab distributes Reports? Reports (protocols, photos, etc) are sent as a single PDF document via email. The report number will appear in the title of the email.

Only one report is sent per email. The average size of a report is 2 megabytes. The maximum size of each report cannot exceed 7 megabytes. If a single report is larger than 7 MB, the testing lab will either zip the file or divide the report into 2 documents and email them separately.

The testing lab has been instructed NOT to give verbal results for quality testing before they actually issue the report. This is QA’s request and is not the testing lab policy.

Who Receives the Reports? The reports will be sent via email to QA ([email protected]) and copied to the designated vendor recipients. The vendor determines the vendor recipients when they complete the Vendor Billing & Correspondence Information Form.

Report Processing Procedures • QA completes one of two RCDS. • There is a RCDS for Approved/Disapproved reports and a RCDS for Rejected or Unsafe/Misleading

reports.

Approved and Disapproved QA Reports • RCDS are emailed to the buyer, Private Label Apparel/Manufacturing, International (as applicable)

and the vendor. • The title of the emailed coversheet will be as follows: “QA, Vendor Name, Item #, Destination

country, Report #”. • Reports that are Approved or Disapproved will not require a Retest or Re-inspection by Costco

Wholesale.

When determining who should receive copies of the reports, it is recommended to include the names of the factory, manufacturer’s representative, and any other party involved in the order. Delays can result if the correct people in a company do not receive the reports.

List the complete factory address and contact information. The vendor’s address cannot be substituted for the actual factory address. Vendor should provide a separate Vendor Billing and Correspondence Information Form for each factory producing an item.

The information on the Vendor Billing & Correspondence Information Form will be used by BV CPS and Costco Wholesale.


• Incomplete reports are reports that for a variety of reasons are incomplete. The most common reason for an Incomplete report is that not all color / patterns were submitted for testing or available at an inspection. The results in an incomplete report will only reflect the product available at the time of testing or inspection. The QA Process will not be finished and approved by QA until all reports are complete.

Rejected QA Reports

• RCDS are emailed to the buyer, Private Label Apparel/Manufacturing and International only (as applicable)—not the vendor.

• The title of the emailed RCDS will be as follows: “QA, REJ, Vendor Name, Item # Destination country, Report #”.

• The vendor will not be notified by QA with the RCDS report rating until the buyer replies. • After the buyer has reviewed the RCDS it will be forwarded to the vendor with instructions for the

needed corrective action. • Reports that are Rejected or Unsafe / Misleading will require the Vendor to Retest or complete a Re-

inspection. • Prior to the retest or re-inspection the Vendor will need to correct failures indicated on the Defect

Summary & QA Corrective Action Plan.

Unsafe Misleading QA Reports • RCDS are emailed to the buyer, Private Label Apparel/Manufacturing, International (as applicable)

and the vendor. • The title of the emailed coversheet will be as follows: “QA, Unsafe, Vendor Name, Item #,

Destination country, Report #”.

Vendor Notification - Interpreting QA’s decision (RCDS) Once the vendor receives the RCDS from QA they will be able to see the overall rating on the report.

The vendor should follow the corrective action plan on the second page of the RCDS. This page explains QA’s corrective action plan and requirements for products.

Approved Rating An Approved rating means the product/factory is approved. QA will advise if any improvements are needed.

Disapproved Rating A Disapproved rating means the product/factory does not meet all of QA’s requirements, but the problems are minor enough that we can accept the problems for the current production. In this case a re-test/re-inspection is not needed but improvements should be made for future production (if possible) and/or for future items quoted.

Rejected Rating A Rejected rating means that QA feels the product/factory is not acceptable until improvements are made. These required improvements are noted on page 2 of the RCDS. All defects/problems requiring a re-test/re-inspection or evaluation should be corrected and retested/re-inspected. If a Rejected report is received, production should be stopped until all products are corrected.

Buyer Override for Rejected Reports • QA is a service department to Costco Wholesale’s worldwide buyers. It is our job to facilitate the

QA Process and to assist the buyers in ensuring the compliance, quality and specifications of their products.

• While QA makes recommendations to the buyers on the acceptability of reports and product, it is ultimately the buyer’s decision as to whether the report and the product will be accepted.


• Therefore, it is possible that QA could reject a report/product/factory, but the buyer/GMM could disagree (for various reasons) and accept the report/product/factory.

• If the buyer disagrees with a rejected report (this will be noted on the bottom on the RCDS) it means that a re-test/re-inspection is NOT needed.

• However, the vendor should still make every effort to follow QA’s recommendations on the second page of the RCDS and to improve the quality of the product or factory for future production and for future items quoted to Costco Wholesale. Unsafe/Misleading Rating

An Unsafe/Misleading rating means that the product/factory has serious defects or problems which violate the laws of the destination country or which could result in a hazardous product. The product/factory must be corrected and a re-test/re-inspection or evaluation conducted as soon as possible.

Only a Senior Vice President or higher can override an Unsafe/Misleading report.

Corrective Action Process The required corrective action is explained on the second page of the RCDS. It is important that the vendor begin making the needed improvements as soon as the RCDS is received.

Within 24 hours of receipt, the vendor should confirm receipt and understanding of the document to QA and advise the timeline for implementing their corrective action plan.

Even if a report is not rejected, if there are defects noted on page 2 of the RCDS, the vendor is required to proceed according to the above instructions.

In addition to the instructions received from QA, the vendor may also receive phone calls and emails from the buyer regarding the required corrective action. If the vendor is corresponding with the buyer regarding their corrective action plan, this correspondence should be copied to the QA contact.

The testing lab is copied on all Rejected or Unsafe/Misleading RCDS so they are informed of QA’s decision and the required corrective action plan for the vendor.

3.9 RETESTING AND REINSPECTIONS Costco Wholesale reserves the right to require re-testing and or re-inspections when deemed necessary due to product nonconformities found during the QA Process, or during the distribution or sale of the merchandise. All costs associated with re-testing and/or re-inspecting will be the vendor’s responsibility.

If re-tests or re-inspections are required, the vendor is also responsible for all charges incurred as a result of the original failure(s). This includes but is not limited to the costs associated with removing any non-conforming product from the selling floor and any freight charges to return the product to the vendor.

When are Re-Tests/Re-Inspections Needed? • A re-test/re-inspection or evaluation is only required if specified by QA on the RCDS. • QA has established very stringent, detailed testing and inspection criteria to ensure that all defects,

no matter how small, are reported to QA in the testing & inspection reports. • At QA’s request, the testing lab is very detailed and conservative in their evaluation of product

and factories and as a result, many of the testing lab’s reports for Costco Wholesale are rated as “Unsatisfactory or Non-Conformed.”

• A failed report from the testing lab does not necessarily mean that QA or Costco Wholesale will reject the report.

• If the report is received from the testing lab with clearly unacceptable failures, the vendor should immediately begin corrective action process without waiting for QA to issue the RCDS. The vendor should email QA and the buyer to advise on the procedures being taken.

• If the vendor is unsure as to whether the defects in the report will be acceptable, they should wait for QA’s RCDS before beginning a corrective action plan.


Interpreting an RCDS-Rejected Report that has been overridden by the buyer

• Because the Costco Wholesale buyer & GMM can override a QA rejected report, it is important to read the RCDS carefully.

• If a report is rejected, but the buyer has overridden the QA rejected rating, this means that a re-test or re-inspection is NOT required and that the report has been approved.

• If a buyer has chosen to override a QA rejected report, and a retest/re-inspection is not needed, the vendor should still make every effort to improve the product/factory for future production or at a minimum for future items quoted.

How to Arrange a Re-Test When a report is rated as Rejected or Unsafe/Misleading, a copy of the RCDS is sent to the vendor and to the testing lab. This document tells both the testing lab and the vendor what needs to be retested/re-inspected or evaluated.

If a vendor needs to retest a product, they should make the needed corrections to the product, attach the RCDS or original failing report and submit samples to the testing lab for retest. If the vendor is unsure of how many samples to submit, they should contact the testing lab for clarification

If the vendor has additional questions, or wants additional testing done (in addition to the testing required by QA), they should include these additional instructions with the sample to the testing lab.

Upon receiving the samples and RCDS, or other testing documents the testing lab will reference the RCDS they received from QA, verify the two are the same, then proceed with retesting the failures noted on the RCDS.

How to Arrange a Re-Inspection/Evaluation When a report is rated as Rejected or Unsafe/Misleading, a copy of the RCDS goes to the vendor and to the testing lab. This document tells both the testing lab and the vendor what needs to be re-inspected/re-evaluated.

If a vendor needs to arrange a re-inspection or re-evaluation, all the required changes should be made to the product and/or factory, then the testing lab should be contacted for an appointment.

When the testing lab receives the vendor’s request for an appointment, they will reference the RCDS sent by QA. When doing the re-inspection or re-evaluation, the testing lab will verify that the specified problems have been corrected.

When the re-inspection report is received, it will be processed according to procedures listed in Section 3.8.

3.10 COMPLETION AND AUTHORIZATION

Non-Foods Quality Assurance Approval Letter – Letter of Credit The Non-Foods Quality Assurance Approval Letter – Letter of Credit (QA Letter) is a document generated by QA at the end of the QA Process. The issuance of this letter indicates to the buyer that all requested evaluations, testing and inspections have been completed and approved.

This document is required to negotiate all Letters of Credit issued by Costco Wholesale.

When all the required testing and inspections are completed and approved, the QA Letter will be signed by QA and given to the buyer. The buyer will sign the QA letter and fax it to the vendor.

• This letter must be submitted to the bank with all of the other L/C documents in order to negotiate the Letter of Credit.


• QA will issue a QA Letter at the completion of the QA process to indicate to the buyer and vendor that all QA requirements have been met (If all required factory evaluations, testing and inspections are not completed and / or are not approved by the buyer, the QA Letter will not be issued).

• Once all requested factory evaluations testing and inspections are completed and approved, the QA Letter will be signed by QA and given to the buyer.

• The buyer will sign the QA letter and fax it to the vendor. If the vendor submits to the bank for payment without the L/C letter there will be an automatic discrepancy. When Costco Wholesale receives this discrepancy, VP approval will be required to waive the discrepancy (the buyer cannot waive this).

Non-Foods Quality Assurance Approval Letter – Open Account The Non-Foods Quality Assurance Approval Letter – Open Account (QA Letter) is a document generated by QA at the end of the QA Process. The issuance of this letter indicates to the buyer that all requested factory evaluations, testing and inspections have been completed and approved.

• QA will issue a QA Letter at the completion of the QA process to indicate to the buyer and vendor that all QA requirements have been met (If all required factory evaluations, testing and inspections are not completed and / or are not approved by the buyer, the QA Letter will not be issued).

• Once all requested factory evaluations testing and inspections are completed and approved, the QA Open Account Letter will be signed by QA and given to the buyer.

• The buyer will sign the QA letter and fax it to the vendor.

Shipping Authorization All requested factory evaluations, testing and inspections should be completed and the vendor should receive the QA Letter before any product is shipped.

No documentation is needed from the testing lab in order to ship the product.- Only the buyer can authorize shipment.

Part 4 READING REPORTS

4.1 REPORTS FORMATS FOR FACTORY EVALUATIONS

Factory Evaluation Report Cover The Factory Evaluation Protocol is a list of questions the inspector answers related to the factory. Each question is worth one point toward the factories overall rating score.

Based on the number of points achieved Costco Wholesale will determine if the Factory meets Costco Wholesale requirements and the length of the time the evaluation is valid for.

If the Inspector finds any critical failures, the testing lab will rate the report as “Unsatisfactory”. A re-evaluation will more than likely be required regardless of the number of points achieved.

4.2 REPORT FORMATS FOR QUALITY AND LABEL

Quality and Label Report Cover The report cover page provides a summary of the item being tested and results. If there are failures, the report describes each one in detail and includes any comments and/or recommendations for improvement. Based on the failures found on the quality testing Costco Wholesale will determine if the product meets Costco


Wholesale requirements. QA will issue an RCDS summarizing the failures and providing the corrective action required.

Quality and Label Protocol Page(s) The protocols are a line-by-line list of the Costco Wholesale requirements for a type of garment. In the case of a re-test report where only one or two test property lines from the protocol were used you will see N/A in all areas not retested.

4.3 REPORT FORMATS FOR 9462 EC

94/62/EC Report Cover The report cover page provides a summary of the item being tested and results. If there are failures, the report describes each one in detail and includes any comments and/or recommendations for improvement. If failures are found for heavy metal requirements for the United Kingdom, Costco Wholesale may require the vendor to correct failures and retest.

4.4 REPORT FORMATS FOR PRODUCT INSPECTION

Inspection Report Cover The report cover page provides a summary of the item being tested and the results. If there are failures, the report describes each one in detail and includes any comments and/or recommendations for improvement.

Based on the number of defects found during the inspection, Costco Wholesale will determine if the product meets Costco Wholesale requirements. QA will issue an RCDS summarizing the failures and list the corrective action required.

Inspection Protocol Page The protocol is a line-by-line list of the Costco Wholesale requirements for a type of garment. Multiple protocols will be included for comparison reports, for example, if two items are being tested as a comparison, a single report will be generated but will contain two protocols, one protocol each for the results of both samples.

Defects found at the inspection are classified as Critical, Major or Minor. The protocol pre determines the severity of each possible defect.

Inspection Exhibit Page(s) Exhibit pages are most often included with a report to show a failure. Exhibit pictures are taken as a means of documentation such as to show the exact wording and format of a product label.

Part 5 COST AND BILLING

5.1 VENDOR RESPONSIBILITY Unless otherwise negotiated with the buyer, the vendor is responsible for all fees associated with the QA process. The fees include test fees and any freight charges associated with mailing test/reference samples, as well as factory evaluation and inspection fees.

Costco Wholesale makes every effort to keep the fees as low as possible. The rates for testing, inspections and factory evaluations are extremely competitive against the rates charged by other independent, global third party labs.


5.2 TESTING COSTS Contact the testing lab for the cost of testing.

Additional charges (i.e. analytical work) are noted with an asterisk next to the test name in the test property column and on the bottom of the Basic Test Package in the Pricing Information box under additional charges.

In addition the testing labs give Costco Wholesale a discount, which will be taken at the time of invoicing.

Note: **When the Test Request covers more than one Costco Wholesale region (destination country), the Testing Lab will perform the basic testing once and will then issue a separate report for every country. The Testing Lab will charge a processing fee for each report that is generated per country, plus any additional tests required for that specific country.

5.3 FREIGHT CHARGES FOR SAMPLE SHIPMENT • Per the Costco Wholesale Non-Foods Quality Assurance Apparel QA Program, Costco Wholesale

vendors are responsible for shipping and / or courier fees associated with sending samples to inspectors and Costco Wholesale offices.

• The vendor must provide a UPS or DHL account number that the testing lab can use for billing courier fees.

• If an account cannot be set up with UPS or DHL, please provide an alternative billing account number with a service that operates in the country where the garments will be tested.

• Flammability samples or Original Reports: Unless specified by Costco Wholesale All flammability and/or Original Reports will be sent Fed Ex Ground or the lowest cost courier. Please charge the vendor when sending flammability samples back to Costco.

5.4 FACTORY EVALUATION & INSPECTION COSTS For factory evaluation and inspection costs please contact the testing lab noted on your Test Request.

Notes: • A “man-day” is defined as one person working and/or traveling one normal working day. • The “per man-day” rates do not include travel, meals, or accommodation expenses. • Overtime rates apply to all work done outside of regularly stated work hours for each particular

region. • Inspections and audits performed on Sundays and public holidays are charged at 1.5 times the

standard rate. • There will be a charge of one full man-day for any inspection or factory evaluation canceled with

less than 48 hours prior notice.

5.5 INVOICING PROCEDURES - VENDOR BILLING

Vendor Billing The testing lab will generate an invoice within 30 days of completing the test or inspection. This invoice will be mailed along with a copy of the report to the vendor. The invoice is mailed to the vendor contact and address listed on the Vendor Billing & Correspondence Information Form which is completed by the vendor.

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5.6 PRE-PAYMENT FOR NEW VENDORS The QA program is a vendor bill program. As such, pre-payment will be required of all vendors testing with the testing lab for the first time. Once credit has been established through the first test, the testing lab will invoice, due upon presentation, each vendor upon completion of testing. Each invoice will be sent by mail along with a copy of the final test report.

5.7 OVERDUE/ON-HOLD ACCOUNTS The testing lab will not test or inspect product for vendors with past due invoices. This includes past due invoices through the QA program as well as invoices owed through the program of any other testing lab client.

If samples are received from a vendor with outstanding invoices, then the new samples will be placed on-hold until both the outstanding invoices are paid in full and pre-payment is received for the new samples.

As soon as the testing lab receives the test request packet from QA, they should immediately notify both QA and the vendor that testing will go on-hold when samples are received. The goal is to resolve all outstanding bills before the samples arrive at the testing lab.

Part 6 COSTCO WHOLESALE VENDOR (CV) PROGRAMS

6.1 CV DEVELOPMENT TESTING PROGRAM The Costco QA program does not currently require pre-production testing for most items, but Costco Wholesale expects all product to comply with all Costco Wholesale standards. The CV Development Testing Program is intended for vendors to use on their own to ensure that their products will not fail testing during production

It is the vendor’s responsibility to test piece goods, trim components and label claims as needed in advance of production to ensure that all materials conform to Costco Wholesale requirements. The vendor must comply with all Costco Wholesale standards for any product they offer the buyer for sale.

Failures found during production quality testing (coordinated by QA) may jeopardize the program with the buyer and may result in delays or PO cancellation. This Costco Wholesale Vendor (CV) Testing & Inspection program will allow the vendor to identify and resolve failures prior to production.

This is a vendor run program created for the purpose of making it easier and more cost effective for the vendor to test piece goods, trim components, fiber content, care labeling, etc. in the development stages to avoid failures in production. Development testing under the CV Program is not required by or monitored by QA. If the vendor chooses to use the CV Program, they must complete the CV Test Request Form indicating what tests and evaluations they want completed. This can be found from the third party testing labs.

The CV Program is available to all vendors selling product to Costco Wholesale (regardless of whether they are required to go through the QA Process coordinated by QA). The testing lab will offer a pre-negotiated discount on all testing to the Costco Wholesale vendors that use the testing portion of the program. The man-day rates charged by the testing lab Inspectors will be at the Costco Wholesale rate.

How to Submit Samples Note that there is a difference between the sample submission procedures for the QA Process coordinated by QA and the CV Development Testing Program.


The CV Development Testing Program is for pre-production or development samples only. Therefore additional sets of samples do not need to be submitted to the testing lab for Costco Wholesale or for the testing lab inspectors.

If the vendor requests “piece-goods testing”, the testing lab will mark which tests were completed on the test protocol.

If the vendor does not want all of these tests conducted they should advise the testing lab of this when filling out the CV Program Request Form.

6.2 RECEIVING RESULTS The CV reports are for the vendor’s reference only. The vendor can choose to have the testing lab copy QA on the results. The vendor can ask the lab to email a copy of the report to [email protected]. QA will forward the report to the buyer but will not process the report.

Any CV report will not take the place of full production testing through QA.

Part 7 ADDITIONAL REQUIREMENTS FOR CHILDREN’S SLEEPWEAR- (USA ORDERS ONLY) Part 6 of the Costco Wholesale Non-Foods Quality Assurance Manual for Apparel is intended for informational purposes only. The vendor is responsible both legally and for all Costco Wholesale agreements for ensuring compliance with all applicable laws including those relating to sleepwear.

7.1 EXPLANATION Per the Consumer Product Safety Commission (CPSC): “Children’s sleepwear is any article of clothing, such as a nightgown, pajama, robe or loungewear, sized from above 9 months and up to size 14, that is intended to be worn primarily for sleeping or activities related to sleeping”.

There are very stringent requirements for testing children’s sleepwear for sale in the United States (see test protocols for other country requirements). The regulations can be obtained from the CPSC website (www.cpsc.gov).

The regulations are published in the Code of Federal Regulations in Title 16, Part 1615 for children’s sleepwear sized above 9 months and up to 6X, and in Title 16 Part 1616 for children’s sleepwear sized 7 through 14.

The purpose of the regulations is to protect children from burns. According to CPSC guidelines in the United States, children’s sleepwear must be either tight fitting or flame resistant. If they are “tight fitting”, they must match strict criteria for measurements at multiple points within the garment, to ensure the fit is snug at every size. This is to eliminate airflow between the skin and fabric, so as not to allow a flame to catch on the fabric. If sleepwear isn’t tight fitting, it must be flame resistant and able to meet strict flammability test requirements. In addition to the standard QA process (factory evaluation, product test for quality & label and inspections) all sleepwear must also be thoroughly tested (in accordance with the CPSC) during the production process to ensure that it is in compliance with all requirements.

Following is an explanation of all requirements that manufacturers must follow when producing children’s sleepwear. It is the manufacturer’s responsibility to perform all required testing at each stage of production, and keep the required samples and documentation to verify the testing was done.

If the manufacturer does not already have an established quality assurance program for testing children’s sleepwear during the various stages of production, QA suggests that the manufacturer use the CV Development Testing Program (see Part 7 for details).


For additional information on Children’s sleepwear requirements and size specifications, the vendor can contact the CPSC, Office of Compliance, Washington, D.C. 20207, telephone: 301-504-0608.

7.2 COSTCO WHOLESALE REQUIREMENTS FOR NON-TIGHT FITTING SLEEPWEAR When QA receives the Test Request from the buyer, QA will submit a test request to both the lab and the vendor. The lab will contact the vendor for copies of all flammability testing documentation. Documentation from the fabric stage (FPU), prototype seams and trim stage, and from the garment stage (GPU) will be required. Failure to promptly mail all requested information will result in delays in the QA Process.

If the vendor is unable to provide this documentation, the purchase orders will be subject to cancellation by the buyer.

While it is the manufacturer’s responsibility to test their product at various stages of production (following CPSC requirements), QA will also coordinate the process on the final garment and labeling to ensure the product and labeling meet all Costco Wholesale requirements. (See Part 3 for details).

Provided the vendor can produce copies of all testing documents from all stages, QA will not require garment (GPU) flammability testing to be done during the Product Quality & Label testing. QA will advise the testing lab (see Test Request) to test ONLY one (1) random color/pattern for flammability.

If the vendor uses the testing lab for their in-house flammability testing, no additional flammability testing will be required during the Product Quality & Label testing.

It is best to use the same lab that will be performing the production testing. Thus, the lab will have all reference documents. For questions of which lab to use, please contact the proper QA project person.

Costco Wholesale reserves the right to require flammability testing on all colors/patterns.

7.3 REQUIREMENTS FOR TIGHT FITTING SLEEPWEAR Tight fitting sleepwear (usually cotton knit) must be manufactured to very tight size specifications, which generally run small compared to other clothing in the same size range. These garments must not exceed the maximum dimensions specified in the CFR regulations for the chest, waist, seat, upper arm, thigh, wrist or ankle.

The vendor is responsible for conducting all necessary tests and inspections during to product to ensure that all garments meet the size requirements for tight fitting sleepwear.

7.4 REQUIREMENTS FOR NON-TIGHT FITTING SLEEPWEAR The manufacturer is responsible for maintaining all test reports, burned specimens and samples from each production stage (fabric, prototype and production garment) for a minimum of three (3) years.

A centralized location for filing and storage is suggested, and should be available within 72 hours to the CPSC. The manufacturer must be fully capable of interpreting test results issued by the lab. Any questions about flammability requirements can be answered by checking the CPSC’s website.

The link to the 16 CFR 1615 requirements (for sizes 0-6X) is: http://www.access.gpo.gov/nara/cfr/waisidx_03/16cfr1615_03.html

The link to the 16 CFR 1615 requirements (for sizes 7-14) is:

http://www.access.gpo.gov/nara/cfr/waisidx_03/16cfr1616_03.html


7.5 STAGES OF TESTING There are three separate stages of flammability testing for children’s sleepwear.

Fabric Stage Assign an FPU number (Fabric Production Unit) for no more than 5,000 linear yards (or less) of fabric produced. Cut a 2 yard sample from the beginning of each FPU and from the end of each FPU. Cut the 2 yard samples in equal 1 yard segments. A 1yd piece from the beginning and end of each FPU must be tested for flammability. The other 1 yard pieces from the beginning and end of each FPU must be kept in sample retention for 3 years.

All samples must be marked with the FPU number and location from the roll (beginning or end.)

Flammability testing is done as the fabric is received in its “original state” and then again after 50 washings, to make sure the surface isn’t altered, or that any flame retardant chemicals have not been removed during washing in a way that would promote flammability.

Fabrics that do not have any flame-retardant finish (such as 100% nylon or polyester fabric) must also be tested after 50 washes on the initial FPU only. Subsequent FPU’s within the same style do not require the 50 wash tests, provided that the initial FPU provided acceptable test results after 50 washes.

Fabrics that have a flame-retardant finish must be tested in original state and after 50 washes for each FPU number in that style. Launder the samples in accordance with AATCC 124, with a water temperature of 140o F and drying temperature of 150o F (exhaust temperature). Use an 8 lb. ballast (maximum), when laundering.

The actual burned specimens from each test must be kept by the vendor and/or manufacturer for a sample retention period of 3 years. The specimens shall be placed in a plastic bag, and the bag must be marked clearly with the FPU number, location of roll and lab report number.

The CPSC website has additional information on sample retention procedures and requirements.

If any FPU’s fail, the manufacturer must reference the tightened sampling plan requirements of the CPSC.

Prototype Seams and Trim Stage The garment manufacturer must test all seam designs and trim designs prior to garment production.

Trim is defined as a decorative material such as ribbon, lace, embroidery or ornaments. Trim present in less than 2 square inches of total garment surface area is exempt from this trim classification. Trim does not include functional items such as zippers, elastic, interlinings or buttons.

It is suggested that if a garment has decorative trim, a sample of that sleepwear style should be submitted to the lab for evaluation, so it can be determined exactly what should be submitted for the seam/trim prototype phase.

Prototype testing includes all seam constructions (excluding findings) and trim designs. Actual production fabric, trims and threads must be used to construct the specimens.

Prototype seams and trim samples must be identical to the production samples. If any changes are made during the manufacturing process, prototype testing must be conducted on those changes.

For seam testing, prepare fifteen (15) specimens (3.5” wide x 10.0” long) with the seam centered in the 3.5” width. A duplicate set of seams must be kept for sample retention for 3 years. All seams that are used in the construction of the garment must be submitted.

For trim testing, prepare fifteen (15) specimens with the trim attached as it is constructed in the garment. A duplicate set of seams must be kept for sample retention for 3 years. If the trim is used in the vertical position in the garment, including sleeve and neckline trim, it should be placed in the center of the fabric specimen. If the trim is used in the horizontal position, such as chest piping, it should be attached to the bottom edge of the fabric.


It is recommended that the vendor submit one sample garment to the testing lab for instruction on what components need to be tested.

The actual burned specimens from each test must be kept for sample retention for 3 years. The specimens shall be placed in a plastic bag, and the bag must be marked clearly with the trim or seam design and lab number.

The CPSC website has additional information on sample retention procedures and requirements.

50 home launderings is NOT required for prototype seam and trim design.

The manufacturer must be capable of interpreting the test reports to ensure that no rejected prototype seams or trim designs are used in final production.

If a prototype seam or trim design is rejected, the seams or trim can be reworked to find an alternative seam construction that passes the flammability test.

Production Garments The garment manufacturer must assign a GPU number (Garment Production Unit) for up to 500 dozen (6,000) garments produced.

The GPU number must be clearly marked on each garment label. The label must be permanently attached and the number must be legible for the life of the garment. Putting the FPU number on the garment is optional.

Vendor must submit enough samples to complete GPU testing per all CPSC regulations. The vendor must also retain six (6) duplicate samples of each GPU for sample retention for 3 years.

It is suggested that a sample of the sleepwear (largest size) and/or size specs be submitted to the testing lab so they can determine the sampling requirements for the garment flammability testing phase.

Note: In cases where smaller infant and toddler sizes are produced (i.e., 12, 18, 24 months), additional samples may be needed for testing.

The actual burned specimens from each test must be kept for sample retention for 3 years. The specimens shall be placed in a plastic bag, and the specimens must be marked clearly with the FPU number, GPU number and lab number.

QA recommends developing a tracking system that illustrates how many garments are being produced from each FPU number.

For example: Total Yardage

Purchased Style FPU No. Color GPU No. Garments

Produced 20,000 yards 73645 1000 Red 001 Small: 2,000

Red 002 Medium: 2,000 Red 003 Large: 2,000 1001 Green 101 Small: 2,000 Green 102 Medium: 2,000 Green 103 Large: 2,000 1002 Blue 201 Small: 2,000 Blue 202 Medium: 2,000 Blue 203 Large: 2,000 1003 Yellow 301 Small: 2,000 Yellow 302 Medium: 2,000 Yellow 303 Large: 2,000


The manufacturer must be capable of interpreting the test reports. Rejected garments cannot be retested, used or promoted for use in children’s sleepwear in the USA.

The manufacturer is responsible for maintaining all test reports, burned specimens and samples from each production stage (fabric, prototype and production garment) for a minimum of three (3) years. A centralized location for filing and storage is suggested.

In conjunction with the tracking system, the manufacturer is also responsible for the disposition of any rejected units along with specifications and details of all components used in the construction of the garment such as thread type, trim, garment specifications, fabric specifications, fabric mill location, garment manufacturer location, purchase orders and date of shipment.

CASHMERE MANUAL

Part 8 OVERVIEW

8.1 CASHMERE BUYING GUIDELINES The following guidelines were established with and for the buyers to help ensure the quality and specifications of all cashmere product purchased. These guidelines are specifically for all 100% Cashmere or the 50/50 cashmere program.

If the vendor has any questions about these buying guidelines, they should contact the Costco Wholesale buyer for additional information and clarification.

• Goods to be purchased FOB Costco Depots (USA orders only). • As Costco Wholesale will not be doing the importing, we will require a copy of all shipping

documents, including the Bill of Lading and the following documents (USA orders only): Commercial invoice for raw cashmere (white out pricing) Packing List.

• Goods should be purchased on Open Account with enough dating to ensure that product is received and put on the floor long enough to detect any problems before payment is made.

• All specs, agreements, purchase orders will state “100% cashmere”, or 50% Cashmere/ 50% other fiber required by the specific buyer.

• Vendor must have a USA office from whom an FTC Continuing Guaranty is issued (USA orders only).

• Costco Wholesale must have a copy of the vendor’s Continuing Guaranty on file. (copies to QA & buyer)

• QA will verify the CG with the FTC. • List of all factories involved in Costco Wholesale production & their background and relationship

to the vendor from whom Costco Wholesale purchased the goods. • Vendor must advise if the factory will be running any other fibers at the same time (i.e., cotton,

wool, silk) as this could pose a potential risk of contamination. • Vendor to provide detailed cashmere specs (see forms section for the Cashmere Specification

Sheet) • Vendor acceptance of purchase orders is acceptance of all terms, conditions, and requirements of

the Costco Wholesale Cashmere Purchasing and QA Program.

8.2 LAB QUALIFICATIONS FOR CASHMERE TESTING o If shipments for multiple countries are being produced, QA will make every attempt to

coordinate the inspections for each country to take place at the same time.


o All colors / styles will still need to be tested for quality and labeling, fiber ID and specification verification.

• All testing should be done under the CV Cashmere Development Testing Program or under the QA Cashmere Garment Testing Program ONLY!

• Any testing or inspections done outside these two Costco Wholesale programs will NOT be accepted.

• Select testing labs perform all fiber content testing for the Costco Wholesale Cashmere Testing Program.

• In the event there is a failure in the fiber content testing, Costco Wholesale may chose to do correlation testing with a different testing lab who is approved by the Cashmere & Camel Hair Manufacturers Institute (CCMI) to identify and test cashmere fibers.

8.3 RESPONSIBILITIES

QA Responsibilities • Track all CV and QA coordinated testing and inspections using the Cashmere Production Tracking

Spreadsheet to ensure that all lots of cashmere are tested and approved at each stage of production. • Submit the Test Request to the vendor and the designated testing labs by the specified dates.

Part 9 THE CASHMERE QA PROCESS: A SUMMARY 50/50 Cashmere Program (KS and Hathaway) • Buyer initiates testing with the proper QA contact • QA keeps all results on a separate spreadsheet on the Costco internal P drive, plus all records, hard

and soft for reference. • The testing lab performs all quality and label tests per Costco protocols except for fiber ID. • The Brachi Cashmere lab performs all fiber ID testing for Costco. • The vendor sends in pre-production samples to the Brachi lab for Raw Fiber

o Raw Fiber tests include: color, fiber content, micron thickness, and fiber length Raw fiber color must be white.. Fiber length must be a min of 27 mm. Micron thickness must be below a desired min of 15.5 microns, but an actual

minimum of 15.9. • Once the buyer requests testing and all pre-production testing is approved, the vendor submits 3 sets

of samples to the lab listed on their test request form from Costco QA for all testing. o 1) QA samples / Brachi fiber ID samples. o 2) Quality and Label samples. o 3) Inspector samples.

• For quality and label testing. (Vendor sends in 4 samples of one color plus 2 samples of each additional color for this test)

• Inspections are completed per buyers request. Usually 1 inspection per item is done. (Vendor sends in one sample of any color plus a 12” x 12” swatch of each additional color)

• Once all testing (including pre-production tests) requested by the buyer is complete and approved or overridden, QA will issue a QA approval letter to the buyer.

Buyer Sourced 100% Cashmere Testing Process (Non KS and Hathaway garments)


• Buyer initiates testing with the proper QA contact • QA keeps all results on a separate spreadsheet on the Costco internal P drive, plus all records, hard

and soft for reference. • The testing lab performs all quality and label tests per Costco protocols except for fiber ID. • The Brachi Cashmere lab performs all fiber ID testing for Costco. • The vendor sends in pre-production samples to the Brachi lab for Raw Fiber.

o Raw Fiber tests include: color, fiber content, micron thickness, and fiber length Raw fiber color may be white or brown. Fiber length must be a min of 35 mm. Micron thickness must be below a desired min of 15.5 microns, but an actual

minimum of 15.9. • Once the buyer requests testing and all pre-production testing is approved, the vendor submits 3 sets

of samples to the lab listed on their test request form from Costco QA for all testing. o 1) QA samples / Brachi fiber ID samples. o 2) Quality and Label samples. o 3) Inspector samples.


• Inspections are completed per buyers request. Usually 1 inspection per item is done. (Vendor sends in one sample of any color plus a 12” x 12” swatch of each additional color)

• Once all testing (including pre-production tests) requested by the buyer is complete and approved or overridden, QA will issue a QA approval letter to the buyer.

KS and Hathaway 100% Cashmere Testing Process

• The buyer sends a copy of the cashmere tracking spreadsheet to the vendor to be filled out in every

stage of testing. o Every time a test is complete, the vendor should add the results to the spreadsheet. o At the end of the month an updated spreadsheet should be sent to QA and the buyer from

the vendor. • QA keeps all results on a separate spreadsheet on the Costco internal P drive, plus all records, hard

and soft for reference. • The designated testing lab performs all production testing except fiber ID. • The Brachi Cashmere lab performs all fiber ID testing for Costco. • The vendor sends in pre-production samples to the Brachi lab for

1) Raw Fiber o Raw Fiber tests include: color, fiber content, micron thickness, and fiber length (KS and

Hathaway tests needed) Color must be white. Fiber length must be a min. 35 mm. Micron thickness must be a desired max 15.5, but an actual max. 15.9

2) Dyed Fiber

o Dyed fiber tests include: raw fiber color, fiber content, and micron thickness (KS and Hathaway tests needed) Raw fiber color must be white. Fiber length must be a desired min. 35 mm, but an actual min. 30.0 mm Micron thickness must be a desired max 15.5, but an actual max. 15.9

3) Spun Fibers (knitted panels are for production testing)


o Spun Fiber tests include: raw fiber color, fiber content and micron thickness (KS and Hathaway tests needed) Raw fiber color must be white Fiber length must be a desired min. 35 mm, but an actual min. 30.0 mm Micron thickness must be a desired max 15.5, but an actual max. 15.9

• Once the buyer requests testing and all pre-production testing is approved, the vendor submits 3 sets of samples to the lab listed on their test request form from Costco QA for all testing.

o 1) QA samples / Brachi fiber ID samples. o 2) Quality and Label samples. o 3) Inspector samples.


o Results are combined for all countries except regulatory tests and labeling. A separate report fee is applied for each additional country.

• Inspections are completed per buyers request. Usually 1-2 inspections per item are done. (Vendor sends in one sample of any color plus a 12” x 12” swatch of each additional color)

o Most vendors combine multiple countries into one inspection to save cost. • Once all testing (including pre-production tests) requested by the buyer is complete and approved

or overridden, QA will issue a QA approval letter to the buyer.

9.1 How to Submit Cashmere Samples for Production Testing • The factory should submit 4 complete sets per color/style.

1. One set of samples is for the testing lab (no fiber ID testing) 2. One set is for QA/buyer approval and Brachi fiber content testing. 3. One set is for use by the testing lab inspector when at the factory.

Each “set” of samples should be packed separately and clearly marked “Test Samples”, “QA/ Brachi Samples”, and “Inspector Samples”.

• The Testing Lab Request Form must be included with the samples when they are submitted to the testing lab.

• The Brachi Test Request Form must be included with the samples when they are submitted to the testing lab.

Test Samples

• The vendor must submit the correct number of samples for full quality and label testing. • The needed number of samples per color/pattern is noted on the test request. Sampling requirements

for testing are detailed later in this section. • It is recommended that vendors submit only the largest available sizes for testing to maximize the

amount of material available for testing. • Additional samples of trim components such as zippers, buttons will also be requested on the test

request, please disregard if there are no trim components on the garment. • The required number of samples for testing is explained in detail later in this section. • All samples must have final labeling including all sewn in labels, hang tags, etc. • If 94/62/EC testing has been requested, submit additional samples of all packaging and labeling. • If final labeling (labels, hang-tags, etc.) has not been finalized/printed, drafts can be submitted. Note: 94/62/EC can only be conducted on final production packaging and labeling.

QA and Brachi Fiber Content Samples • The vendor must submit the correct number of samples for QA/ buyer approval and Brachi Cashmere

testing samples.


• The required number of samples needed per color/pattern is noted on the test request. • The number needed for QA approval and Brachi testing for garments is usually 1 sample per

color/pattern representing all sizes. (The garment will be cut in half. Half for Brachi testing and half for Costco QA reference.)

• All samples must have final labeling including all sewn in labels, hang tags, etc. • If final labeling (labels, hang-tags, etc.) has not been finalized/printed, drafts can be submitted.

Inspector Samples • The vendor must submit the correct number of samples for use by the inspector during inspections, the

required number of samples per color pattern is noted on the test request. • The required number of samples needed for use in the inspections is usually 1 sample representing all

styles and a 12” x 12” swatch of each additional color/ style unless otherwise noted on the Test Request.

• All samples must have final labeling including all sewn in labels, hang tags, etc. • If final labeling (labels, hang-tags, etc.) has not been finalized/printed, drafts can be submitted.

Part 10 COSTCO VENDOR (CV) CASHMERE DEVELOPMENT PROGRAM

The CV Cashmere Program is MANDATORY for 100% Cashmere Garments.

10.1 EXPLANATION This is a vendor initiated and coordinated program for testing cashmere at each stage of production prior to the assembly of the final garment. This program is NOT to be used for the testing of garments.

All development testing will be conducted by the Brachi Testing Lab. The Brachi Testing Lab is the only lab approved to test cashmere for the Costco Wholesale program.

At each stage of production the vendor must pull samples of the cashmere and submit them with the Brachi Costco Vendor (CV) Cashmere Development Test Request Form directly to the Brachi Testing Lab.

The cashmere testing lab will test the samples primarily for fiber content, micron thickness of the fibers, length of the fibers, and the raw fiber color. The specific testing required at each stage will be noted below.

Note this is a mandatory testing program (if claimed 100% cashmere). If any testing required under the CV Cashmere Testing Program is not completed, the purchase orders are subject to cancellation by the buyer.

10.2 CV FORM • The vendor must complete the Brachi Costco Vendor (CV) Cashmere Development Test Request

Form. • The vendor must submit this form each time samples are submitted for testing. • Vendor must indicate from what stage of production the samples were pulled – Raw Fiber After

Spinning, After Dyeing, After Knitting • The vendor must provide the required specification for the fibers being submitted.


10.3 SAMPLE SUBMISSION PROCEDURES • At each of the below noted stages of production, the vendor must pull samples of cashmere and

submit them to the Brachi Testing Lab. • The samples should be accompanied by a completed copy of the Brachi Costco Vendor (CV)

Cashmere Development Test Request Form (hereafter referred to as the CV Test Request Form) for each submission to the Cashmere Testing Lab.

• The form must include all requested information. If all the required information is not provided to the Brachi Testing Lab, Costco Wholesale may be unable to link your CV reports to your production.

Raw Fiber Stage

Costco Wholesale will require the vendor to pull 15 grams of raw fibers from each lot of cashmere fibers and send them directly to the Brachi Cashmere Testing Lab for fiber ID and spec verification for:

• Fiber content • Fiber length • Average micron thickness • Raw fiber color

Results & Corrective Action • Failures (less than 100%) will be rejected---additional retests will not be accepted. • The failing lot of raw fibers must NOT be used for Costco Wholesale production. • The vendor must confirm in writing to the buyer and QA that they are sourcing a new lot of

raw fibers. The new lot# must be provided to QA for tracking purposes.

Dyed Fiber Stage Costco Wholesale will require the vendor to pull 15 grams of dyed fibers in every color from each lot and send them directly to the Brachi Cashmere Testing Lab for fiber ID and spec verification for:

• Fiber content • Average micron thickness • Raw fiber color

Results & Corrective Action • Failures (less than 100%) will be rejected---additional retests will not be accepted. • The failing lot of dyed fibers (failing color only) must NOT be used for Costco Wholesale

production. • The vendor must confirm in writing to the buyer and QA their corrective plan. • If a new lot of raw materials is sourced, the new lot# must be provided to QA for tracking

purposes. • The new lot will need to be tested starting at the raw fiber stage.

QA Suggestion (not required)

• If the dyed fibers are not going to be spun in the same facility that dyed them, we suggest that the vendor test the fibers in the dyeing facility before shipment to the spinning facility

• The dyed fibers should then be tested again as soon as they are received at the spinning factory to confirm that there has been no contamination before moving on to the spinning phase of production

Spun & Dyed Fiber Stage

Costco Wholesale will require the vendor to pull 15 grams of spun & dyed yarn in every color from every lot and submit them directly to the Brachi Testing Lab for fiber ID & spec verification for:

• Average micron thickness


• Fiber content • Raw fiber color

Results & Corrective Action

• Failures (less than 100%) will be rejected---additional retests will not be accepted. • The failing lot of spun & dyed fibers (failing color only) must NOT be used for Costco Wholesale




• If the spun fibers are not knitted in the same facility that spun them, we suggest that you test in the spinning facility before shipment to the knitting facility.

• The spun fibers should then be tested again as soon as they are received at the knitting factory to confirm that there has been no contamination before moving on to the knitting phase of production. Knitting Stage

This section only applies if the vendor is using separate facilities to knit the panels and assemble the garments. If the same facility is responsible for both the knitting of the panels and final garment assembly then the production garment is used for the knitted panel test. The CV Testing is complete, no additional testing is needed under the CV Program, see Part 3 for Cashmere QA Process details. Costco Wholesale will require the vendor to pull 1 knitted panel in each color from each lot of knitted panels and submit them directly to the Brachi Testing Lab for fiber ID & spec verification for:

• Average micron thickness • Fiber content • Raw fiber color

Results & Corrective Action • Failures (less than 100%) will be rejected---additional retests will not be accepted. • The failing lot of knitted panels (failing color only) must NOT be used for Costco Wholesale




• If the knitting is not done in the same facility as the final garment assembly, we suggest that you test in the knitting facility before shipment to the assembly facility.

• The panels should then be tested again as soon as they are received at the assembly factory to confirm that there has been no contamination before moving to the garment assembly phase of production.

10.4 RECEIVING RESULTS UNDER THE CASHMERE CV PROGRAM • When a report is issued at each of the above stages, the report must be signed off and approved by

the buyer.


• While the factory may proceed from one step of production to the next without approval from Costco Wholesale, we strongly caution you to stop production until each set of reports are approved.

• If a failure is found in the dyeing process for example, but you have already begun spinning the fibers, Costco Wholesale cannot be held responsible for any financial losses that may result if the orders are cancelled.

• Responsibility for sourcing and producing product that is 100% cashmere is solely the vendor’s responsibility.

10.5 CASHMERE TESTING TRACKING SPREADSHEET This is a document created by QA that is used to track the testing of cashmere through each stage of production.

The buyer and QA will email the form template to the vendor. Each test result and all information needs to be filled out by the vendor at each stage.

The vendor should email the form back to the buyer or Private Label Apparel / Manufacturing and the QA contact for review and approval at the end of each month during testing.

10.6 CASHMERE LAB CONTACT INFORMATION

Brachi Laboratorio di Analisi

Via Fonda Di Mezzana, 61/L 59100 Prato, Italy

Contacts: Mr. Primo Brachi and Mr. Giancarlo De Blasi

Phone: 0113-905-7459-1343 Fax: 0113-905-7459-3975 E-Mail: Mr. Primo Brachi: [email protected]

Mr. Giancarlo De Blasi: [email protected]


Documents

Apparel Manual- 2007