STEEL MARKETING

CLAIMS PROCEDURE

1.  GUIDELINES

Important guidelines to consider when registering claims:

1.1  Customers may not withhold payment on any invoices, regardless of the claim category, unless:

·  written approval has been granted for the amount withheld; and/or

·  notification of a claim was forwarded to Evraz Highveld in writing before the 20th of the month in which payment was due, and such a claim was confirmed by Evraz Highveld in writing;

·  Please note that Evraz Highveld will quote a reference number in return and that no claim will be seen as a valid claim without this claim reference number.

1.2  Under no circumstances may material or trucks be returned to Evraz Highveld without written approval from the Domestic Steel Sales office or Order Services Management. If material is found to be out of specification, material must be offloaded and isolated and an official complaint has to be lodged.

If the material was returned to Evraz Highveld without lodging a complaint and was within specification, the customer will be held responsible for the transport cost.

1.3  All claims should be identified with a customer claim number otherwise a DA number will be used where a customer claim number is not provided, and all claims must be supported with corresponding Highveld invoice or DA numbers.

1.4  Evraz Highveld reserves the right to utilize the services of our Internal Auditors and/or outside agencies to examine any documentation pertaining to specific claims and/or rebates.

1.5 In no event shall Evraz Highveld be liable for any consequential or direct loss or damage and any decision of Evraz Highveld to make good any such loss or damage or part thereof shall not be interpreted as an admission of liability.

1.6 Claims can be classified into the following categories:

A.  Documentary Claims

B.  Quality Claims

C.  Price Claims

D.  Contract/Project claims, submitted via the Domestic Sales office

E.  General

1.7 Please see below contact details. Please note that the Forms are available at www.evrazhighveld.co.za

Documentary & Quality Complaints:

Lynette Scholtz

013 690 9016

POD Requests:

Pinky Mashiga

013 690 9093

1.8 Claims that can not be e-mailed may be faxed to:

Documentary/Quality Complaints or POD Requests / 086 679 5240
Price/Contract/Project/Export rebate/value added Claims / 086 679 4578

A. DOCUMENTARY CLAIMS (D-CLAIMS)

Documentary claims are raised when:

a.  Incorrect material dispatched

b.  Incorrect order processing

c.  DA details differ from actual material received

d.  Incorrect delivery address

e.  Material short received

f.  Material over supplied

g.  Material supplied outside specified order quantity tolerance

h.  Any other despatch related claims

NOTE1: All POD-requests should be lodged within 1 Month after despatch from the steelworks, no POD request older than 1month will be entertained.

NOTE2: Documentary complaints need to be registered within 4 months from date of receipt of material. No Documentary complaints will be entertained that is older than 4 months.

NOTE3: Documentary Claims on the LAPSED status for longer than 1 WEEK will be withdrawn / rejected and closed on the system if no response received from the customer. Also note that the claim will not be re-instated at a later stage.

Due to the number of erroneous POD-claims registered, the following will apply:

·  Payment withheld, but steel delivered – Customer will be invoiced for lost interest at prime interest rate and will forfeit the customary settlement discount, due to late payment.

·  Payment made, but steel not delivered – Highveld will credit the customer for lost interest at prime interest rate.

Due to the number of disputes on the short and/or over receipt of material the following procedure has been implemented:

·  Claims in respect of shortages / over supply shall be made in writing immediately upon receipt of goods and no claim for any shortage will be recognized unless made within forty eight (48) hours of receipt of the consignment in respect of which a shortage is alleged.

·  Short and/or over receipt of material on both road and rail has to be reported within 2 days to the Domestic Steel Sales office. Once notified, a Highveld representative will visit to check the load and to verify the shortage/overage. Customers need to state this verification when registering the claim.

Note: Failing to comply with the above procedure may result in a claim being rejected by the mill.

·  All documentary claims should be addressed to the Order Services Department, where it will be handled by designation.

B. QUALITY CLAIMS (Q-CLAIMS)

Quality claims are raised when:

a.  Problems in quality/appearance/dimensional tolerance of material arise.

b.  The allowable claim mass is as follows:

·  Above 250kgs (Structural Products);

·  500kgs (Semi Finished Products)

c.  All quality claims should be addressed to designation.

NOTE1: Quality Claims on the LAPSED status for longer than 1 WEEK will be withdrawn / rejected and closed on the system if no response received from the customer. Also note that the claim will not be re-instated at a later stage.

NOTE2: Quality complaints for rusted material need to be registered within 6 months from date of receipt of material. Claims for rusted material will not be entertained that is older than 6 months.

Handling of UT Complaints

·  UT claims will only be investigated if the ultrasonic requirements were indicated at the time of ordering.

·  Where the claim is on UT failed/Laminated material, the customer to forward a UT report inclusive of what spec the material was tested to, what spec the material is suitable for and a detailed defect map of the defects found.

Sample Requests

·  Evraz Highveld shall at its sole discretion requests samples of the defective material to be cut and submitted for analyzing. The purpose of this is to:

§  determine the origin of material/ defect;

§  Identify the root cause of the problems in order for the relevant division to put the necessary corrective and preventive actions in place.

·  Evraz Highveld reserves the right to reject claims in cases where samples are not received from purchasers.

Returned Material

On return of damaged / non compliant material from the customer relating to a claim, the customer is to advise the relevant Team Leader / Member if they want replacement material so that they can liaise with the mills to plan accordingly.

Evraz Highveld will not collect claimed material from a 3rd party address unless the 3rd party was the initial delivery location stipulated on the customer purchase order.

C. PRICE CLAIMS (P-CLAIMS)

Price claims are raised when:

a.  Prices are confirmed, or invoiced incorrectly.

b.  Customers are requested to check all Sales Order Confirmations in order to avoid post-despatch price adjustments.

c.  It is essential to check if the correct SPA number was quoted on the order(s) where applicable, as claims resulting from this non conformance will not be entertained.

d.  All Price claims should be addressed to the Domestic Sales Office. Contact details of the Domestic Sales team are tabled below.

Please note that price claims can also now be submitted electronically on our website (www.evrazhighveld.co.za) in order to improve processing time.

D. CONTRACT/PROJECT CLAIMS, SUBMITTED TO THE DOMESTIC

STEEL SALES OFFICE

All claims must be supported by:

a.  A valid PPA (Project Price Agreement) number

b.  A schedule of material supplied

c.  Documents substantiating delivery to the specific project, including

d.  The corresponding Highveld invoice number(s)

e.  This type of claims should be addressed to the Domestic Sales Office. Contact details of the Domestic Sales team are tabled below.

Note: Settlement & Trade Discount is not applicable on any SPA (Special Price Agreement) invoice or credit note raised by Evraz Highveld Steel.

PRICE / CONTRACT / PROJECT CLAIMS
Account Managers / Ryan Davies

011 – 663 0287 / Tony Khumalo

011 – 663 0294
Yugan Naidoo

011 – 663 0283
Sales Assistant / Bianza Wilson

011 – 663 0282
Unit Manager / Michael Perimal

011 – 663 0281

E. GENERAL

Customers may not withhold payment on any invoices, regardless of the claim category. It is important to register all claims to ensure that an Evraz Highveld claim reference number is obtained. If the complaint cannot be categorized as per above, please contact the Sales office who will assist in registering the claim.

2015-05-19: Supersedes issue dated 2015-02-23 Page 2 of 4