Toll Processing Guidelines
RC discourages transfer of ownership. However, if a Customer wishes to transfer ownership of its material to a Customer or Ship-to prior to the material being shipped from the RC facility, RC can administer these requests subject to the following SEC guidelines:
1) Material must be in prime status – the coil(s) cannot be on HFI or in reject status.
2) The metal owner prior to transfer must agree to pay accrued warehouse storage charges.
3) An order must be received from the new owner that includes an acknowledgement to pay subsequent warehouse storage charges and a firm ship date must be provided.
For input metal, Customer guarantees RC 100% prime coatable material.
For output metal, RC guarantees Customer yield as follows:
| .027 and Under | .0271 thru .036 | .0361 thru .050 | .0501 and Over | |
|
STEEL |
98% |
97% |
96% |
95% |
|
ALUMINUM |
99% |
98% |
97% |
96% |
Note: For widths over 60” internal yield guarantees will be decreased by 2%.
Special notes for yield guarantees related to slit and/or embossed items: Slitting and/or embossing increases the allowable loss by 1/2% per process (a total of 1% if slit and embossed). Customer offal for slitting (engineered side trim) or embossing is not included in the guaranteed yield, and is the Customer’s responsibility.
RC will reimburse the Customer quarterly for material cost on the portion of RC responsibility rejects and scrap exceeding the allowance, based upon actual bare metal cost. In order to facilitate the removal of RC reject material, RC will take ownership and dispose of all RC responsibility scrap and rejects on a monthly basis. RC responsibility reject coils 5,000 lbs or less are too small to sell as secondary coils and subsequently will be considered scrap. Debits will be honored based on first issue American Metal Market current month, Chicago #2 Dealer Bundle less $25/ton handling. RC responsibility reject coils in excess of 5,000 lbs will be considered secondary. Debits for secondary will be honored based on 30% of first issue American Metal Market current month, Steel Products market base price per substrate less $2.00/cwt handling.
Reconciliation for RC responsibility rejects/scrap will be calculated quarterly. The reject/scrap weight, which exceeds the allowance, will be reimbursed for material costs (less scrap or secondary value as applicable) on a quarterly basis. Material costs will provided by the Customer. RC may request purchase documentation to verify metal costs and freight charges.
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