Plasticard-Locktech International, LLC (“PLI”) prides itself on providing excellent customer service when creating well-made products and ensuring that our customers’ expectations are exceeded. For select customers, PLI will design and make custom card products and related items (“Products”) and we will, upon our customer’s special request, hold those Products at our facilities as their inventory until we are instructed to ship them to the customer’s designated locations.
While we are “holding” those Products pending your further instructions for shipping, we would like to recognize the revenue from the sale of those Products to help our cash flow and to cover costs such as the labor and materials we’ve devoted to making your orders. These business practices are often called “bill and hold” arrangements. Section 15 of the International Financial Reporting Standards (IFRS) outlines conditions that must be met for sellers to recognize revenue under a “bill and hold” arrangement and this Policy is provided to you as part of our accounting compliance program.
Policy and Acknowledgment
In order to accommodate your request for PLI to make your Products and hold them in our facilities, and to allow PLI to recognize the revenue from such orders, we would like your company to acknowledge our Bill and Hold Policy. By signing below, your company acknowledges the following:
-Customer has a written commitment to buy the Products from PLI, either through a written contract, Purchase Order, or a signed Quote;
-Customer has requested the bill and hold arrangement with PLI and acknowledges it has a substantive reason for PLI to hold the Products;
-Ownership and ownership risks will be passed on to Customer upon payment of the orders; however, to insure against loss to our Customer, PLI has the appropriate and necessary property and liability insurance in place to cover the value of the Products while they are being stored and held by PLI, and PLI will provide Customer with a Certificate of Insurance as written proof of such insurance. PLI shall, upon Customer’s request, and annually thereafter, provide Customer with certificates of insurance evidencing such coverage and naming Customer as additional insureds.
-PLI will segregate Customer’s Products and will not use them to fill other customers’ orders; and
-The Products are ready to ship at Customer’s instructions and the Customer has a fixed and reasonable schedule or shipping process for the delivery of the Products to Customer or its designated Ship-To locations at a later date or dates.
If you have any questions regarding this Policy or would like to request a Certificate of Insurance, please contact our Customer Service/ Sales Department and they will be happy to assist you. Thank you for your cooperation.
On behalf of Customer, I have read and understand the above Policy and request PLI to handle certain designated orders under a Bill and Hold arrangement as described above.