Effective 3/10/22
Open Accounts
American Innovative Products, Inc. extends credit to Government agencies, industrial and distributor accounts with a good published credit rating. Companies may apply for an open account by supplying credit information on their company’s letterhead to American Innovative Products, Inc.’s Accounting Department. Credit information supplied by the buyer, or by others on the buyer’s behalf, shall become part of the Credit Application and any false or misleading information shall constitute fraud. Orders are shipped prepaid, COD, cash, wire-transfer, VISA, MasterCard, or American Express, until an open account is established.
Payment Terms for Open Accounts
Terms are Net 30 days. FOB is Anaheim, California, on approval.
Account Management and Remedies
In the event it becomes necessary for American Innovative Products, Inc. to file suit to enforce payment of past due invoices, such a suit will be brought in Orange County, California. American Innovative Products, Inc. shall be entitled to collection of fees, court costs, and interest at 10% per annum or such legal maximum rate as is allowed, on all invoice amounts past due. All purchase agreements are governed by the laws of the State of California.
Shipping
American Innovative Products, Inc. ships UPS Ground as its standard carrier. If the customer prefers another carrier or to use their own account number, or a premium routing method, this information must be clearly stated on the Purchase Order and confirmed, in writing, by American Innovative Products, Inc.. The customer must authorize any additional expenses that will incur. If quoted “factory stock,” and American Innovative Products, Inc. has received a Purchase Order by noon PST, the order will ship the following day. For customers with an urgent request, there exists a possibility to ship later the same day. However, an “expedite fee” is charged, along with any other expenses incurred to fulfill this request. All promises of delivery are approximated as closely as possible by American Innovative Products, Inc., but are subject to delivery estimates made by our suppliers, weather conditions, fires, strikes, disputes, accidents, delays in transportation, material, fuel, or labor shortages, or any other cause beyond reasonable control of American Innovative Products, Inc. In no event will American Innovative Products, Inc., assume any responsibility for any delays in shipments or deliveries.
Expediting Orders
If orders must be expedited, interfering with the normal flow of manufacturing, a minimum of a 15% “expediting fee” will incur. The minimum “expediting” charge is $55.00 per order, or by the weight of the item wherein air freight for sub-assemblies is required.
Blanket Orders
All Blanket Orders must be confirmed with a written Purchase Order, and must include scheduled release dates, within a 12 month period. Any changes to the schedule must be agreed upon by American Innovative Products, Inc., and a written “Change Order” must be in process to confirm such changes. Please note that only two reschedules are allowed per year. NOTE: Blanket Orders are Non-Cancelable and Non-Returnable.
Shortages or Damages
All claims for shortages or shipment errors must be made within 15 days after the receipt of the shipment. American Innovative Products, Inc.’s liability is limited to the value of material value on the invoice. Claims for other loss or damages are filed against the carrier, such as UPS, FedEx, Airborne, etc.
COUNTERFEIT PRODUCT/MATERIAL
Suppliers shall assure that all products provided to Company are genuine and no counterfeit product shall be used or shipped. Seller shall notify Company immediately if seller suspects or is aware they have furnished counterfeit goods and promptly replace the counterfeit parts with genuine parts. Supplying counterfeit goods to Company will hold the seller responsible for all costs associated with the replacement of said counterfeit parts.
Right of Access
AIP, their customers, and regulatory authorities have the right of access to applicable areas of facilities and to applicable documented information, at any level of the supply chain.
Employee Awareness
Supplier is required to ensure that personnel are aware of
Discontinued Items
Items are subject to change or discontinuance without notice. Ask a Customer Service Representative for advice on possible substitution for your application.
Returns (RMA) and Repairs
Anything being returned to American Innovative Products, Inc. must have a RMA (Return Materials Authorization) number assigned by the factory, and it must be referenced on all the paperwork accompanying the return/repair. Items that do not reference the RMA number will not be processed. Do NOT return product using a Debit Memo. Product must be shipped with freight prepaid. No product will be accepted for Credit after 30 days from the date of shipment. Special, custom or modified products are Non-Returnable, and no Credit shall be offered.
Product in need of repair must have previous authorization to return it to the factory. It is critical to do so, as the advice of the factory can offer is invaluable, and can often save the customer money. The factory will determine upon inspection whether the product is covered under warranty. The factory charges a “flat-rate repair charge” based on model number, regardless of the problem found. This is charged for all repairs, including those where no problem is found, as inspection, test and burn-in is time-consuming.
Cancellations and Restocking Charges
Cancellation of any order must be approved by American Innovative Products, Inc. and will be on terms that protect us from any loss. The restocking charge is 15% on all product returned. The minimum restocking charge is $25.00. Returns must be made within 30 days of receipt of product. Shipping expenses are paid by the customer. All products are subject to factory inspection and must be in resalable condition to receive a credit. Special, custom and modified products are Non-Returnable and Non-Cancelable (NCNR Agreement applies).
Limited Warranty
All American Innovative Products, Inc. products are warranted against defects in workmanship and materials, when used under normal operating conditions and when used in accordance with the factory’s specifications. This warranty is in effect for a period of 12 months from the date of manufacture, whichever comes first. American Innovative Products, Inc. will repair or replace at its’ option, any of its products found to be defective and are within the warranty period. American Innovative Products, Inc. is not responsible for removal, installation, or incidental expenses incurred in shipping to and from the factory. American Innovative Products, Inc. is not liable, under any circumstances, for any consequential, incidental or indirect damages or expenses that are associated with the warranted product. Product that is damaged due to misuse, abuse, negligence, exposure, accident, improper installation or hook-up, or has been modified or dismantled, is NOT covered under this warranty.
Record Retention
Supplier shall provide a Certificate of Conformance and as applicable, any other supporting documentation with each shipment. Supplier shall maintain on file all quality records/data such as; material certifications, process or acceptance test results, inspection records, and any other applicable quality control data, for a minimum of (7) years from completion of this purchase order.
Engineering or Technical Assistance
Technical assistance is available at no charge to help the customer in choosing American Innovative Products, Inc. products for a specific application. However, any selection, quotation, or application suggestion offered from American Innovative Products, Inc., its’ representatives or distributors, are only to assist the customer, and in all cases, determination of fitness for purpose or use are solely the customers’ responsibility. While every effort is made to offer solid advice and to produce technical data and illustrations accurately, such advice and documents are for reference only, and subject to change without notice. Programming of product is the customer’s responsibility.
Supplier Point of Contact
The supplier’s primary point of contact at American Innovative Products is always the Buyer. All questions, problems, or requests for information should always be directed initially to the Buyer. Do not accept any changes to the technical requirements, quantity, due dates, revision levels and/or quality requirements unless authorized in writing by the American Innovative Products Buyer.
RESPONSIBILITY
As a supplier of aerospace products, American Innovative Products bears the responsibility of ensuring the quality of all products supplied to its customers. These products are subject to inspection by American Innovative Products commercial and military aerospace customers to verify compliance to all contractually identified quality requirements. American Innovative Products quality program is based on AS9100, Quality Systems as well as ISO-9001 and other industry standards, all of which require the establishment of procedures for the selection of suppliers and for the periodic review and assessment of the control of purchased materials and services furnished by suppliers. Based on this assessment, emphasis will be placed on using suppliers who deliver products or services that meet the American Innovative Products requirements outlined and described in this manual, which is directed at assisting American Innovative Products suppliers in meeting these performance goals. The supplier has the primary responsibility to develop and maintain a quality system that meets American Innovative Products requirements. The supplier is responsible for notifying American Innovative Products when the requirements of these terms and conditions or the purchase order cannot be met. Should a conflict exist between this manual and the purchase order, the purchase order shall take precedence.
Supplier Performance Monitoring
American Innovative Products maintains a rating system to track supplier performance to the requirements of the purchase order. Any nonconformance with the purchase order requirements will affect your rating and possibly your approval status. In addition, a nonconformance may result in a Corrective Action Request (CAR) being issued to you from American Innovative Products. You are responsible to issue corrective action requests to your suppliers as applicable.
Your response to a CAR must be complete, acceptable, and within the allotted time frame. Failure to meet any of these conditions may result in your being placed in a temporarily disqualified status. Suppliers placed on this status will be permitted to complete their existing purchase orders with no increase in quantities, but will not be issued any new purchase orders pending resolution of the issues which caused the disqualification.
Periodic Surveys and Audits
The American Innovative Products quality program requires American Innovative Products use and control of “approved suppliers”. To meet this requirement a list of suppliers and their status is prepared, used and updated regularly. New suppliers are added to the list based on reviews with acceptable results, while existing suppliers are subjected to periodic reviews to determine the need for any status changes. Surveys and audits are performed by American Innovative Products personnel or their authorized agents. The guidelines for review include (but are not limited to) the following:
Upon completion of the review, the auditor will summarize the results noting Approved, Disapproved, Limited, etc. with any additional comments. The auditor and supplier will then review and agree on any noted deficiencies and agree on the corrective action to be taken. A method of response (letter, resurvey, etc.) will also be discussed and agreed upon.
Reporting of Nonconformances
Any departures from drawings, specifications, or other procurement requirements shall be submitted to American Innovative Products Purchasing department for review and consideration. Disposition must be approved by American Innovative Products before shipment of the product, unless otherwise directed by American Innovative Products Purchasing.
Surveillance at Source and Right of Entry
All items specified by the purchase order are subject to surveillance by American Innovative Products, the government, or American Innovative Products customer representatives. This includes review, verification, examination, test, and/or analysis of the supplier’s manufacturing and associated systems, procedures and processes. If necessary, such activity shall be coordinated by American Innovative Products personnel in advance of arrival.
Change Approval
For those items produced against a supplier-generated set of requirements (proprietary products and the like), the supplier shall obtain American Innovative Products approval, in writing, before making any changes in design, material, or production processes that may affect form, fit, function, interchangeability, or reliability. The baseline configuration is considered to be the configuration originally specified by American Innovative Products Engineering for procurement.
Notification to American Innovative Products of Supplier Internal Changes
The supplier shall notify American Innovative Products of significant changes within the supplier organizational system within 30 days of the change. Reorganization of the management or key personnel structure, change to previously existing certification, change of location or expansion of existing facility, reduction in production capacity or other significant changes shall be communicated to the Director of Quality and the Director of Materiel. Written media (i.e., e-mail, fax or regular mail) shall be used to relay changes.
Special Process Requirements
Special processes performed on products for American Innovative Products purchase orders must be performed by sources holding a current Nadcap certification for the process. This includes not only processing performed in-house by the holder of the American Innovative Products purchase order, but also any processing sub-contracted by them to others.
Special processes are defined as:
Certifications (Statements of Quality)
When certifications of compliance (“certs”, certificates of conformance, etc.) are
required by American Innovative Products purchase order, they must display, as a minimum, the
following elements:
Special Process Suppliers Instructions
Anodize Callouts—where the American Innovative Products engineering drawings does not specify type or class of coating, the defaults of Type II, Class 1 shall be used. For drawings other than American Innovative Products, call your American Innovative Products Buyer.
Post-NDT Treatment of Steels—after any NDT processing (ultrasonic, penetrant, magnetic particle, etc.) which may have removed protective oil films, supplier must reapply a preventive corrosion prevention (preferred mineral or light machine oil, not WD-40).
Supplier Flow-Down
If the supplier subcontracts any portion of the American Innovative Products purchase order, the requirements of this document, in addition to any other American Innovative Products requirements shown on the purchase order, must in turn be flowed-down to the performing subcontractor. The supplier shown on the American Innovative Products purchase order always retains the responsibility for supplying conforming product.
Supplier Foreign Object Debris / Foreign Object Damage Prevention
The supplier shall have established methods, cautions, and practices to prevent foreign object damage (FOD) to products being designed, developed, manufactured, assembled, operated, repaired, refurbished and maintained. There shall be documented evidence of internal audits conducted by the supplier for their FOD preventions activities.
Calibrated Equipment Documentation
Calibration sources must provide documentation on all items that have been calibrated with before and after data required. Non-calibration sources are only required to keep a record which is available upon request. The documentation for calibration and non-calibration sources must show numerical data to demonstrate equipment was calibrated over the range of usage for the equipment.
Training and Competence
The supplier shall have established methods in place to ensure all personnel performing work affecting product conformity have been provided the appropriate level of training to maintain the necessary skills and experience for the work being performed. The training performed shall ensure that personnel are aware of their contribution to product conformity, safety, and the importance of ethical behavior.
Purchase Order
The purchase order is a documented agreement (contract) between the buyer and seller that conveys what is to be supplied and the administrative, technical, and quality requirements to be met. Suppliers are advised to carefully read the
Terms and Conditions imposed by the purchase order since they are responsible for complying with those requirements.
Statistical Process Control — When Mandatory
Though American Innovative Products encourages all suppliers to use statistical process control (SPC) to better understand their processes, it is not normally a mandatory requirement. On those occasions when it becomes a mandatory requirement, such will be identified on the purchase order, along with the identification of the particular product characteristics to be so controlled. If such is the case, suitable control charts shall be forwarded by the supplier with each shipment to American Innovative Products for approval prior to the start of production. Also required with each shipment is evidence of process capability, if not achieved then the supplier shall show documented evidence of their current investigation to achieve this or rationale acceptable to American Innovative Products that justifies the continued use of an incapable process. Evidence shall be required for each lot produced, and for each shipment made (in those cases where a lot is split among more than one shipment). Production of part features which are identified as special requirements, critical items, and key characteristics by the applicable purchase order documentation shall be controlled by SPC and shall not be subcontracted without the express written permission of American Innovative Products and then only when this requirement is also flowed down to the manufacturing organization.
All Sales are made pursuant to the Terms and Conditions herein, and are in lieu of any other expressed or implied terms, including but not limited to any implied warranties
1525 N. Endeavour Place, Ste. H ▪ Anaheim, CA 92801
(714) 991-8608 P ▪ (714) 991-8604 F ▪ www.aipincorporated.com
FORM# 018AIP REV A