Toll Processing Guidelines
For Customer convenience, RC offers an alternative program of 100% metal cost reimbursement for scrap and reject when generation is attributed to RC fault. This program has a modest cost and must be applicable to all orders submitted to, and processed by, RC. The program cannot be administered on an order-by-order basis. Metal prices are provided by the Customer at the time of quotation (and semi-annually thereafter) and need to be agreed to by RC. RC will reconcile monthly, and provide the Customer with reconciliation, normally within 30 days. Customers who participate in RC’s 100% program will be compensated for scrap based on first issue American Metal Market current month, Chicago market #2 dealer bundles less $25 handling.
The following procedures are in effect for both yield programs:
RC will provide reconciliation to the Customer on an actual weight basis, following the end of the reconciliation period. The detail should be adequate for the Customer to settle any issues or claims with their source related to each coil processed by RC. Allowance is calculated on total materials completed during the reconciliation period, not to individual coils. The accounting will be based upon the combined results at all of RC’s locations. For any RC reconciliation program, the dollar amount related to the weight of the coating was deducted in the algorithm used to initially calculate the base prices provided in the reference pricing pages. Gross weight of metal and coating is the basis of the yield reconciliation. Full coil RC rejects may be reviewed on an individual basis at Customer request.
Debits submitted after receipt of the reconciliation will insure accurate and timely credit to your account. Debits must be submitted within 1 year of the reconciliation to Roll Coater, Inc., Accounts Receivable, 8440 Woodfield Crossing, Indianapolis, IN 46240.
All reject coils less than 2,500 pounds per coil for steel and 800 pounds for aluminum are considered scrap and will be disposed of accordingly. Scrap credit will be allowed for scrap pounds within the allowance, based on first issue American Metal Market current month, Chicago #2 Dealer Bundle less a $25/ton handling fee. Yield allowance is calculated on total material processed at all locations, during the reconciliation period - not to individual coils.
Debits submitted after receipt of the reconciliation will insure accurate and timely credit to your account. Debits will not be accepted on a coil-by-coil basis.
RC reserves the right to rework coils to meet the original Customer’s specifications. Coils that are not suitable for salvage to the original specifications will be referred to, and dispositioned by, the Customer, and administered by the RC Claims Coordinators. If the Customer determines the material to be non-salvageable, RC will status the material as “reject”. For coils that are salvageable to a different size/specification, RC will secure Customer authorization and a new order.
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