© Caterpilar: Confidential Green Bulletin No, 02 SERVICE WARRANTY BULLETIN Global Parts Global Warranty Parts Return Handling & Freight Charges Overview This bulletin provides dealers with guidelines for handling failed part return requests in support of failure analysis, CPI projects, Caterpillar Service claims, field follow projects, Service Letter programs, and defective parts stock, Return only those parts which are requested by a specific “Parts Return Request’ (PRR), Information Request through the Send it Back (SIB) system, or as specified by a Service Letter. When using remanufactured products to replace a failed part or component, the failed part or component will become Reman Core, Refer to Caterpillar Remanufacturing Division's website at https:/idealer.cat.com/en/ps/parts/reman,him| for Reman core policies, procedures, management, refund claiming, shipping, retum packaging, etc. This bulletin contains information on Process overview page 1 Export control considerations & other country shipping restrictions page 1 Marking and protecting parts ceeeteee cesses page 2 Retention requirements page 3 Responding to part retum and information requests page 4 Reman Core Management page 6 US EPA with Reman Core page 8 US EPA without Reman Core page 9 Packaging & Handling Guidelines page 11 Shipping guidelines page 12 Freight Claims ......... page 14 Non-allowed or debited claims. page 15 U.S. Export Controls - Embargoed Countries + U.S. Export control laws regulate or prohibit the transfer of certain goods services, information and technology to certain entities, individuals and locations. These laws apply inside and outside the United States. + Caterpillar employees should not request parts from embargoed countries. Caterpillar employees may (04.02-18 (08/22) > Indicates change. hitpssvaranty.cat.comiwtyguide © 2022 Caterpilar Al Rights Reserved CAT, CATERPILLAR, LET'S 00 THE WORK, thir respective lages, “Caterpillar Corporats ‘Yellow’, the Power Edge" and Cat Modem Hex trade dress as well as corporate and product identty used herein, are trademarks of Catarplar and may not be used without permission, Dealer and Dealers are defined as any Cat Authorized Dealer or Cat Authorized Repair RepresentativeBulletin No. 4.02 Caterpitar: Confidential Green contact their Regional Export Compliance Program Manager for additional assistance and guidance on compliance risk or concern areas. The contact list is available on https:/codeofeonduct.cal.com/en/ethics-compliance/export-contvols.html - Under “Guidance Material" click on “Countries of Concern & General Prohibitions’ for the latest information concerning embargos and concerns. NOTICE If your dealership is in a country that has regulatory or governmental restrictions preventing you from shipping a failed part to a final destination, please mark the PRR request as “No Part” and provide a comment in the field, “part cannot be shipped because of regulatory or governmental restrictions”. Mark & Identify Warranty Parts On the warranty parts, highlight defects such as cracks, sand holes, porous castings, defective welds, brazes, and etc, Felt marking pens, metal dye or fluorescent paint from a spray can are excellent ways to mark the material The identifying mark should encircle the defect, rather than cover or fil it, Failure to comply with this request may result in returned parts being scrapped and/or claim credit being denied. Global Warranty Parts Return Handling & Freight Charges Connecting rod bearings must be marked according to cylinder number and taped together in sequential order for shipment. Main crankshaft bearings must be marked and taped together in sequential order from front to rear for shipment. The blue Warranty Tag (Order # 01-003883-14 (4804), found at hitps//catpublications.com, (using 01-003883 to search) is used by dealers to identify removed warranty cjaim parts that are to be held for possible parts retum request by Caterpillar (see Illustration #1). Fill out the tags, using a waterproof ink marker to prevent blurring should the tags got wet. List the Caterpillar Claim Number, Core Credit Request number (CCR), if applicable, to a Reman core transaction, dealer code, dealer name, quantity, part number, work order-claim no, and serial number on the tag, CATERPILLAR INC. ‘UANTTY 'AND SUBSIDIARIES PART NO, WARRANTY TAG W0-CLAIM NO, car CLAM No, WT ceRNo. > » ATTACH A TAG TO EACH PART RETURNED << “DEALER CODE TAME 01-003883-18 (4804) llustration #1 NOTE: For Reman core see ad Reman Core Management jonal Reman information — 2 4.02-18 (08/22)CCaterpita: Confidential Green Bulletin No. 4.02 Protect Held Warranty Parts All removed parts (part causing failure and related parts) that are being held according to the Retention Schedule must be protected against damage during the holding period. Until the claim is paid, the dealer owns these parts. Until the holding period has expired Caterpillar owns the parts. Thus, dealers should protect their and our investment. The following are storage guidelines that Caterpillar expects dealers to follow: + Parts must be cleaned (unless this destroys evidence of the cause of failure) and protected from the elements. All fluids should be drained according to Hazmat Regulations. + Coat machined surfaces with anti-rust compound. This preserves parts so a technical analysis of the cause of failure can be made. + Engine crankshaft main and connecting rod bearings must be marked according to cylinder number & taped together in sequential order. + All. components that are disassembled for determining cause of failure must be reassembled for storage. Bolts and nuts only need to be finger tight. + Protect defective radiator cores and coolers by using adequate crating and proper hoisting equipment. Do not bend the header plates on radiator cores. + After disassembly of turbochargers, inspection and determination of the cause of failure, dealers must reassemble the unit. Itis necessary to tighten the nuts and bolts a litle more than finger tight. Clamps must be properly installed and tightened. + Use protective caps and plugs on fuel injection nozzles and injectors. Hold & Store Warranty Parts In some cases, Caterpillar may request additional information, digital photographs or the return of held warranty claim parts. Removed warranty claim parts that must be retained should be systematically stored in a secured and limited access area. Good control of held warranty claim parts will allow dealers to promptly respond to return or information requests or to promptly dispose of parts not requested for return, thereby minimizing costs. Retention Schedule Warranty Parts without Core Value The following is the time schedule that dealers must retain (hold) removed warranty claim parts for possible shipment to Caterpillar. Product Improvement Program (PIP) and/or Product Support Program (PSP) claim parts that are replaced do not have to be held by dealers, unless the specific Service Letter indicates that they are to be retained. These parts should be rendered useless and scrapped at the completion of the repair. All other warranty claim parts must be held in storage for 30 days from the claim receive date. Ifa Parts Return Request (PRR) is issued in Send It Back (SIB) for a warranty claim part within the 30 day period, the dealer is to process the PRR request and return the warranty claim part. Do not wait 30 days before returning the warranty claim part for failure analysis. Note: Warranty claim parts for JLG products sold prior to January 1, 2014, must be held in storage for 90 days. Refer to Bulletin 2.07. Dealers can generate a weekly “Retention Report’ in SIB, Warranty claim parts Iisted on the report should be checked for registration dates, and once the 30 day hold period has expired the parts should be destroyed. rendered useless, and scrapped by the dealer. Scrapped metal or other material can then be sold by the dealer, Unless another disposition has been authorized by Caterpillar. Such parts may not be used or sold (except for scrap) without the agreement of Caterpillar. Note: Dealers should comply with local laws and regulations for scrapping and disposal of any hazardous material. Warranty Parts with Core Value Reman parts and parts with core value must be held for 15 days after the claim receive date. + Ifa Parts Return Request (PRR) is issued for a warranty claim Reman part in Send It Back (SIB) within a 15 day period, the dealer is to process the PRR request and follow the shipping instructions in the REMAN Core Management section of this bulletin. Do not wait 15 days before returning the warranty claim part for analysis. (94.02-18 (08:22) 3Bulletin No. 4.02 Caterpitar: Confidential Green + Ifno PRR is received by the dealer within 15 days, the part can be returned for Core Value. ‘A core involved in a Goodwill settlement can be retumed as soon as itis verified that the Goodwill Claim has been settled. The 15 day period does not apply to cores involved in Goodwill settlements. (Refer to Warranty Philosophy, Bulletin 1.01, at httosi/warranty.cal.com/wtyquide for additional information.) Parts Return Request Notification: Send It Back (SIB) Caterpillar will scan service claims promptly after receipt for compliance with basic and special requirements, and to determine if Caterpillar will require parts to be returned. When removed warranty claim failed parts are requested for retum, the dealer will be notified through SIB. PRRs will be generated daily and added to the Send It Back website at hitps:/isenditback.cat.com/. Dealers should check SIB regularly for new parts and information return requests. SIB is the required method of communicating parts and information requests. Dealer Responsibilities for Parts Return Requests Americas — North Dealers ‘There are a few steps in the parts return process that each dealer must perform after having been notified of a PRR: + Locate the parts before responding. If partis not available respond in SIB using appropriate reason. + Respond to every Part Return Request or Information Request promptly within 14 calendar days. + Respond individually for each pickup location. + Ifthe part has a Reman core value, create a Core Credit Request (CCR) in OMIS 2 system (Dealer system) and add the PRR number in the appropriate field for core credit. (See Dealer Procedures for Returning Parts, Return Request Cores — page 7/8) + Package parts using the documents obtained through Caterpillar. + Blue Warranty Tag (Order # 01-003883-14 (4804)) (Refer to link on page 2 to order.) + PRR Label + Ensure that each partis individually labeled, + Dealers provide packaged parts to the specified carriers by the Caterpillar schedule. Dealer responsibilities for Parts Return Requests - Bundled Shipments: Individual returns can be consolidated into one large container when multiple failed parts are being called back to the same location and they are utlizing the same carrier. Print two PRR labels, one for the individual shipping package and the other for placement in a see-through envelope and attached to the larger shipping container. PRR sheets on each Individual package | i: 4 ie F pleat em sheets on outide “fons 4 4.0248 (08/22)CCaterpitas Confidential Green Bulletin No. 4.02 Americas — South / Asia Pai ic / EAME Dealers ‘There are a few steps in the parts return process that each dealer must perform after having been notified of a PRR: + Locate the parts before responding. + Respond individually to each request within 14 calendar days. + If part has core value, prepare paper CCR and transmit to or manually enter into CMIS 2. Indicate core is a PRR and create a unique shipment in CMIS 2, + Package parts using the documents obtained through Caterpillar. + Blue Warranty Tag (Order # 01-003883-14 (4804)) (Refer to link on page 2 to order.) + PRR labels (2 outside box, 1 inside box) + Include paper CCR form (when applicable) + Ensure that each part is individually labeled. + Dealers schedule the packaged parts for shipment back to Caterpillar, providing shipping and tracking information in SIB within 14 calendar days. + Refer to “Shipping Instructions" for "Dealers in Americas South/Asia Pacific/EAME — For Parts with No Core Value", pg. 14 + If part is not available respond to SIB request using "Not Available" then provide appropriate reason. Canada Dealers (When Shipping Engines Direct to Peterborough, UK) + There are a few steps in the parts return process that each dealer must perform after having been notified of aPRR. + Locate the parts before responding + Respond individually to each request within 14 calendar days. + Package engine appropriately, provide shipping label, all export and import documentation. + Blue Warranty Tag (Order # 01-003883-14 (4804)) (Refer to link on page 2 to order.) + Tag Engine with PRR number + Dealers schedule the engine for shipment back to Caterpilar, providing shipping and tracking information in SIB within 14 calendar days. + Refer to “Dealers In Americas South/Asia Pacifc/EAME - For Parts with No Core Value” on page 13 for shipping instructions. + Refer to “Dealers in Americas South/Asia PacficlEAME/Canada’ on page 14 for freight reimbursement instructions, + Ifpartis not available, respond to SIB request using “Not Available” and then provide appropriate reason. All Dealers Caterpillar will dispose of all retumed parts immediately after inspection and claim decision, unless a dealer has requested a part be returned to them. If a dealer wants the part returned to them, they must check the *relurn to dealer” box in SIB when processing the Parts Return Request. The PPR label will show a "Yes" indicator that the dealer has requested the part back. The dealer is responsible for the returned shipping charges. Parts are not available for return to the dealer under the following conditions, even if the SIB “retumn to dealer” box is checked: + Parts are involved in an open warranty claim, and Reman core value is involved + Part is involved in a paid warranty claim + Part is involved in a warranty claim that was 100% non-allowed, and Reman core value is involved + Part is NOT involved in a warranty claim, but Reman core value is involved Parts Return Request Response Return of removed warranty claim parts to Caterpillar should only be made when specifically requested by Caterpillar via a request in SIB system. Parts received without adequate identification will be scrapped or returned at the dealer's expense. (04.02-18 (08:22) 5Bulletin No. 4.02 Caterpilar: Confidential Green Dealers should respond to each PRR or Information Request promplly in the SIB system within 14 calendar days. There are two types of responses: a part ‘Not Available’ response and a ‘Process’ response. When using Part “Not Available’, the dealer will record the reason the part is not available for return in SIB, The dealer will then close the request and end the return process. No further action is necessary. More than one part may be processed at the same time, but only if the parts are at the same location, and will be shipped to the same final destination. In Americas South, EAME, and APD; the PRR shipping preference should be marked as ocean, air, or ground. Dealers should coordinate shipments based on the preference indicated on the PRR. Information Request Response Dealers may receive Information Requests PRRs. If an Information Requests received, it means more information must be provided to Caterpillar. The information to be provided could include one or any combination of the following: providing a digital photo, the component serial number, a date code, contact the engineer or include additional details. Information Requests must also be responded to within the 14 day time line requirement. The parts used to full the request are required to be held until the 30 day retention period has expired, or the part can be returned for core credit after the 15 day retention period, Urgent Requests Dealers may see a red flag icon to the left of their part return or information request. The red flag indicates an Urgent Request. When a request is marked as Urgent, it takes priority over all other requests, and needs to be responded to immediately. in Americas North, some requests may get special handling for shipment scheduling and are shipped using an expedited method, If special handling is required, requestor should notify LPC_FPRP_ ‘Support@cat.com, to discuss shipping details when PRR request is created. Parts Return Requests From Service Engineers In some cases, a Caterpillar Service Engineer may request the return of failed parts, without any knowledge of a pending service claim. Such parts should be returned according to the Service Engineer's instructions via SIB. In these cases the request must include a dealer work order number or a dealer claim number. For parts being returned in response to a Service Engineer's request, dealers should include a copy of the PRR Label and indicate if a service claim is to be submitted. The opportunity for a duplicate request wheniif a warranty claim is submitted will be minimized when the Service Engineer uses the SIB system. NOTICE If a SIB request has been made on any part that is known to have been contaminated with a health or transportation hazardous material: (e.g. parts exposed to high levels of battery acid, or radioactive material, or other hazardous waste): + Notify the SIB Support Line (senditback support@cat.com) prior to returning failed part + Contact the Requestor to provide details, and determine if the failed part is needed even though it is contaminated. + If contaminated part is needed, do not ship the part via standard SIB process + Collaborate with SIB requestor to determine and comply with appropriate special shipping precautions/requirements for the specific hazard, Reman Core Management Warranty Parts Return Request Procedure for Cores Dealers are requested to ship cores to Caterpillar on a request basis for warranty claim verification and quality analysis using the Parts Return Request (PRR) process enabled by Send It Back (SIB) system. The movement of a “core” represents both a physical and financial transaction flow. Therefore, Parts Return Request must flow from the dealer to their responsible financial organization and then to the final requesting destination in order to assure that appropriate financial transactions will take place: 6 4.0248 (08/22)CCaterpita: Confidential Green Bulletin No. 4.02 1. Dealers are properly paid for the core. Contact your local Reman representative for additional assistance regarding core credits 2. Entitlements for the dealer and the responsible financial organization are properly recorded, 3. Account for Inter-company invoicing between the legal entities making the shipment of core to the final destination. U.S. and Canadian dealers, as well as Americas South Dealers (excluding Brazil), and Mexican dealers not sourcing parts from Monterrey Distribution Center, can return core directly to the SIB requestor's address when shipment is not via ocean freight, For all other dealers, PRR cores should be returned to the dealer's normal Reman/core processing facility. Reference SELD0039 Shipping Instructions; SELD0122 Reman Policy and Core Management; SELD0040 Core Management Systems and Operations Procedures; and SELD0300 Reman Core Return Packaging Instructions and Guidelines and Best Practices for all core return or warranty core return transactions located on the Reman website: https:/dealer.cal,com/en/psiparts/reman/core.htm! Dealer Procedures for Returning Part Return Request (PRR) Cores This procedure applies to dealers that have as their assigned stocking facility as Grimbergen (GDC), Russian Federation Distribution Center (RFDC), Johannesburg Distribution Center (JDC), Asia Distribution Center (ADC), China Distribution Center (CDC), Melbourne Distribution Center (MeDC), Piracicaba istribution Center (PDC), Caterpillar Japan LTD or San Luis Distribution Center (SLP). Caterpillar Engineer issues PRR to dealer via SIB. 2. Dealer to issue CCR in their dealer business system, indicates that the core is a PRR, and transmits to CMIS. 2 or directly enters the CCR in CMIS 2 as appropriate. 3. Dealer creates a unique shipment for the PRR item in CMIS 2 shipment processing application (required for all dealer shipments). 4, Dealer physically tags the PRR core with a blue Warranty Tag (Order #f 01-003883-14 (4804) - refer to link on page 2 to order) and includes a completed paper CCR for the item (dealer retains yellow CCR copy) 5. Dealer sends an email to the core processing contact indicating that PRR item(s) have been shipped to their facility for expediting. Dealer will ship the core with a blue Warranty Tag attached to the component, and one PRR Label inside the shipping box. Two PRR Labels on the outside of the box in a waterproof envelope or bag with the bar codes showing, 6. Dealer will ship the core to the designated inspection facility 7. Cat® inspection facility upon receipt will recognize that itis a PRR since itis tagged properly with a blue Warranty Tag, the paper CCR, and the PRR Labels. The inspection facility will perform inspection and payment functions, (when applicable) and other entries in CMIS 2 and ship failed par((s) to the designated requestor facility, OR to another Reman facity/Caterpillar facility for cross-docking to the designated requestor facili, complying with normal export and import customs procedures. Inspection facility will retain pink copy of CCR. Note: If this request is within CHINA, the Reman Shanghai inspector will complete the CCR as being received. ‘Then inspection facilty will process a manual Bill of Lading and ship the core to the China requesting engineer or requestor. 8. When the component arrives in the US or China, the engineer must complete the paper CCR as received and disposition it. Engineer will keep the green copy of CCR and return the white copy of CCR to the attention of Core Services Supervisor in (US) Corinth, MS or (China) Reman Shanghai. The physical core is then returned to the Reman Core processing facility (Corinth or Shanghai) for final disposition to scrap, salvage, ‘r forward for outbound export shipment to Corinth or local Reman Shanghai plant for use, as appropriate. 8A When the component arrives at the regional destination, the engineer performs the failure analysis. After the analysis is completo, the part will be returned with the paper CCR to the regional inspection facility. If the part is destroyed during testing, the engineer must return the paper CCR with the word "scrap" marked on the Paper CCR to the Attention of the regional inspection facility handling the failed part. (04.02-18 (08:22) 7Bulletin No. 4.02 Caterpilar: Confidential Green This procedure applies to dealers that are assigned a stocking facility located in the United States and assures for proper core payment to dealer. Caterpillar Engineer issues PRR to dealer via Send It Back at httos://senditback cat.comy. 2. Dealer to issue CCR in their dealer business system, indicates that the core is a PRR, and transmits to CMIS 2 or directly enters the CCR in CMIS 2 as appropriate. 3. Any dealer outside of continental USA returning engine long or short block cores directly to the United States, (via Canada) to US Caterpillar facility must complete EPA form. 4. Dealer physically tags the PRR core with a blue Warranty Tag (Order # 01-003883-14 (4804) - refer to link ‘on page 2 to order) and ships failed core with blue Warranty Tag to final destination shown on PRR request. 5. After analysis, the physical core is then retuned to the Corinth Core processing faeilty for final disposition to scrap or salvage as appropriate. If the PRR involves the return of an Engine Core, Short Block, or Long Block, use the following procedure (also refer to Reman website for policy SELD0039 Shipping Instructions regarding ENGINE CORE RETURN PROCESSING AND SHIPPING INSTRUCTIONS EPA FORM 3520-21 AND EMISSION CONTROL INFORMATION LABEL.) Dealer Instructions for Shipping Engine Cores, Short Block, or Long Block These instructions are for all dealers shipping engine cores to any Caterpillar facility. 1. All dealers to perform normal CCR instructions assign case and create a shipment in (Core Management Information System) CMIS 2, The returning engine core serial number must be on the CCR for all engines. This applies to all dealers worldwide. If the serial number for the returning engine core is not on the block, use the original engine serial number in the machine. 2. US. dealers within the 48 contiguous states are excluded from the Emission Control Information Label and the EPA form 3520-21 requirement and, at this time, creating a shipment within CMIS 2. However, the returning engine core serial number must be on the CCR. 3. For all engine, long and short block returns, dealers/subsidiaries must complete the following; + Engines will require an Emission Control Information Label which will contain the failed engine serial number and CCR number, this label MUST be affixed to the engine prior to shipping. Caterpillar will supply the labels to the dealers/subsidiaries for all engine cores that are imported directly into the U.S. Contact the Corinth Core Services Group mentioned below for labels. + Engine, long and short blocks will also require an EPA Form 3520-21, Dealers/subsidiaries must not shio nngine, 1ong_or short block until an email is received from the Corinth vi with a completed EPA Form 3520-21. This form must accompany all other documents which go to the forwarders for shipment. We expect each dealerisubsidiary to submit a request for the EPA Form 3520-21 to Caitlin Moon (Moon_Caitlin@cat.com) for Canada, and all international subsidiary locations. Contact Andrew Turcu (Turcu_Andrew@cat.com) for all EPA forms for Mexico, South America and the Caribbean. The email requests must include the CCR number, case number, part number being returned, and failed Serial number for engines or repaired serial number for long and short blocks. 4. Dealers making shipments directly to a non U.S. Core Inspection Facility are not required to affix the label on the returning engine core. This will be done at their assigned Core Inspection Facility since they will prepare the appropriate documents for importation into the U.S. (See illustration #2, for the Emission Control Information label). These labels will be tracked by engine serial number and CCR processed by each dealer and inspection facility. These labels must not be used for any other purpose or affixed to any other Reman core. 8 4.0248 (08/22)CCaterpilar Confidential Green Bulletin No. 4.02 Mlustration #2 WN ° Emission Control Information Caterpillar, Inc. ‘THIS ENGINE IS EXEMPT FROMTHE PROHIBITIONS OF 40 CFR 89.1003: 40 CFR 94.1103; and SECTIONS 209(a)(1), (3), and (4) OF THE CLEAN AIR ACT ENGINE SERIAL NUMBER (ESN): ‘CORE CREDIT REQUEST (CCR) NUMBER: EXEMPTION: MANUFACTURER-OWNED .ase contact Roman Cote Services at Phone 1-662-286-7287 or Phone 1-062-286-7227 or Fax 1-662-284-7637; Caterpilay, Ine, 501 Cardinal Drive, Corinth Mississippi 38838 land provide the ESN and CCR Number for further information about this engine. Advanced Core Credit for Part Return Requests Involving Core Returns Only Americas North and South dealers (excluding Brazil) and Mexican dealers not facing San Luis Distribution Center qualify to receive an advance core credit for all PRRs when they follow the prescribed PRR procedures as stated above. Other dealers do not qualify for this program since there are special core buyback programs for local regulations that restrict using this practice Flow of Failed Parts Returns with Core Value Please refer to SELD0122-13 (httosi//dealer.cat.com/en/osiparts/remanicore.himl - Under PARTS - Search Policies for media documents) “Flow of Failed Parts Returns with Core Value" table to understand the flow of a failed part requested back for failure analysis that has Reman core value. The table shows the Distribution Services Division, Caterpillar legal entity, the dealer locations, the location of designated inspection facilities, and the possible destinations for failed parts with core value, Requestors must follow these procedures for all Failed Part Return Requests that involve parts with a core value. Dealers are expected to adhere to these instructions. and cannot be overridden by the Requestor, Establish Cause of Failure on Failed Cores ‘When using remanufactured products to replace a failed part or component, the failed part or component will be returned to Caterpillar as a core return for remanufacturing. Prior to return of the failed core, the dealer must establish the cause of failure to determine if warranty applies. The failed core should be disassembled enough to determine the cause of failure and the extent of damage to the Parts. The core must then be completely reassembled for retum to Caterpillar. Return Engine/Machine to US no Core Value RETURN OF FIELD ENGINES/MACHINES FOR EVALUATION AND TESTING - SHIPPING INSTRUCTIONS. INCLUDING EPA DECLARATION FORM 3520-21 AND APPROPRIATE EMISSIONS CONTROL LABELING U.S. Environmental Protection Agency (EPA) and U.S. Customs Border Protection (Customs) regulations require EPA Declaration Form 3520-21 (Declaration Form) to be completed at the time of entry into the United States for all imported bare engines and engines installed in equipment, including non-road, marine, on-highway, and generator set applications. The importer of record must provide the Declaration Form promptly upon request by EPA andor Customs. 04.02-18 (08/22) 8Bulletin No. 4.02 Caterpilar: Confidential Green Failure to comply with EPA and Customs requirements for importing engines may result in engines being detained at the border, denied entry, seized, exported, or destroyed. Penalties may also be assessed, up to $44,539 per engine or $270,000 per incident. General rule: for an engine or piece of equipment to gain entry, it must either be: (1) EPA certified and labeled accordingly; (2) EPA exempted and labeled accordingly; or (3) excluded from EPA emission standards. Step-by-Step Instructions for Returning an Engine to the U.S. These instructions are for all Service Engineers/Requestor and Dealers that will be returning engines to any U.S. based Caterpillar facility for evaluation, testing and/or eventual disposal. 1. Ifa Caterpillar Service Engineer/Requestor is (1) requesting an engine to be retumed for failure analysis, or (2) has agreed, upon dealer's request, to allow a dealer to retum an engine (and not the requested failed engine parts) to the U.S., then Caterpillar Service Engineer/Requestor will create an Information’ Parts Retum Request (PRR) in Send It Back (SIB). The Service Engineer/Requestor shall request from the dealer a photograph of all Of the engine's labels. If the photographs reveal that the engine does not have an EPA Emissions Controlled Label, the Service Engineer/Requestor must request an EPA Exemption label, and must instruct the dealer not to ship the engine until the engine has been labeled/retabeled with the proper Exemption Label. For questions concerning interpretation of labels, contact “Engine Certification/0A/Caterpillar” (See below for instructions for obtaining an EPA Exemption Label.) To request an exemption please visit: https//laraepower.cat.com/en/erc/compliance/exemptions. html 2. Upon confirming, through photographs provided by the dealer, that the engine has an EPA Exemption label affixed to it, the Service Engineer/Requester must complete the Declaration Form. (See below for instructions for completing the Declaration Form), 3. When the Declaration Form has been completed, the Service Engineer/Requestor shall create a “Parts Return Request" and attach a .PDF file of the Declaration Form in the Send It Back (SIB) Parts Return Request (PRR) for the Dealer responsible for shipping the engine to the U.S. The Service Engineer/Requestor must retain the completed Declaration Form for five years and must be able to promptly provide a copy upon request. It is recommended that a copy of the photograph of the applied EPA engine labels be kept with the copy of the declaration form. Upon receipt of the completed Declaration Form, the dealer will print one copy of the Declaration Form and include it in the shipping paperwork that the dealer provides to the freight forwarder. It is recommended that a copy of the photograph of the applied EPA engine labels be sent with the copy of the declaration form to the freight forwarder. The dealer will also retain a copy of the Declaration Form to keep on file. It is recommended that a copy of the photograph of the applied EPA engine labels be kept with the copy of the declaration form. 4. All shipments destined for the U.S. must include certain shipping documents to be allowed entry into the U.S. Refer to “Dealers In Americas South/Asia PacificlEAME - For Parts with No Core Value" on page 13 for shipping instructions, Instructions for Completing the Declaration Form + The Declaration Form can be found at: httns:/wunw.epa govisites/production/files/2017-08/documents/ + Step-by-Step Instructions for completing the Declaration Form can be found at: htips//codeofconduct.cat, + Service Engineer/Requestor is responsible for ensuring that the Declaration Form is filled out correctly. The Service Engineer/Requestor may ask Justin P. Hartzell, (Hartzell_Justin P@cat.com) of LPSD Emissions Regulations & Conformance to review the completed Declaration Form Instructions for Obtaining an EPA Exemption Label The Caterpillar Service Engineer/Requestor is responsible for providing the shipping dealer with a manufacture- owned exemption label, if an appropriate EPA emissions label is not available on the engine, and completing the Declaration Form before the engine/ vehicle is packaged for shipping 10 .02-18 (08/22)CCaterpitas Confidential Green Bulletin No. 4.02 + To obtain an exemption label, the Service Engineer/Requester needs to submit an exemption request through the online Exempt Engine Management System (EEM). There is a registration process to be followed to obtain access to the EEM system, + Please refer to the following weblink in the process to register for EM, and subsequently request an exemption, + https:/largepower,cat.com/en/erc/compliance/exemptions, htm! + For assistance in the exemption process, you may contact Chris Rajkumar (309) 636-5507 or Dayletta Chaney (309) 578-7793, or email emissions_compliance@cat.com Below is an example of what the label would look like. r Emission Control Information car CATERPILLAR INC. ‘This engine is exempt under 40 CFR 1068.215 from emission standards and related requirements. Engine Serial Number: RSxo3401 Engine Family Identification: on Engine Displacement: Wak Model Year of Engine: 2006 Effective Date of Exemption 01/01/2011 Exempt No: VEH263._ — 10 MANUFACTURER OWNED 2.8855 full 70-1449) formation and assistane: Ifyou have questions, please call Chris Rajkumar with LPSD Emissions Regulations & Conformance (309-636- 5507); or email Jeremy J. Ott with Logistics Compliance at Trade_Compliance_Help@cat.com or Legal Services Division at EPA_Legal_Support@cat.com. Packaging & Handling Guidelines ‘There are packaging requirements that dealers must follow for shipping parts that have been requested for failure analysis via Send It Back. For Americas South/Asia PacificEAME dealers, each Parts Return Request (PRR) will state the Requestor's preference for the method of shipment, air, ocean or ground. For Americas North and Canadian dealers, the shipping is scheduled by Caterpillar. (Exception - when Canadian dealer ships engine directly to Perkins, UK) + Correctly packaged parts are less likely to be damaged during shipment, The following are general guidelines for correct packaging of all Caterpillar requested parts returns: + When possible, use the crate or box from which the new part or component was removed for returning the damaged or defective part + Pack containers properly, Use containers that have adequate strength and attach them to a pallet, For loose parts use dividers between items in cartons, or bag individually to preserve the physical evidence of the failure. Always pack heavier items at the bottom. Packing foam, Styrofoam pieces, paper or other packing material should be used generously to protect and stabilize the part + Electrical circuit boards should be placed in electrostatic bag. + Palletize large, heavy items. Items not suitable for containers should be banded to pallets. + Cover all part openings and protect exposed part surfaces. When possible, package larger material so it can be handled with a lift truck. This greatly reduces handling time and minimizes potential damage. When loading the truck, do not stack heavy items on crushable items. + All Muids should be drained according to Hazmat Regulations. + Radiator core assemblies and other easily damaged parts should be loaded carefully. They can easily be damaged by load shift. + Assign one specific individual to be responsible for the packing of all parts returns for shipment. (04.02-18 (08:22) "Bulletin No. 4.02 Caterpilar: Confidential Green Identification & Consolidation for Shipment Keep all requested parts for a PRR together. Each box must be identified by its PRR Labels containing the PRR for that specific PRR Request. Each part must be individually labeled with a PRR Label and country of manufacture (country of origin) regardless of the mode of shipment, Each PRR Label should be in a waterproof envelope or bag on the outside of the box with the bar codes showing. Make sure to capture the actual weight for each part. For Dealer scheduled shipments: When parts are to be shipped to the same location, dealers are requested to consolidate parts from several parts retum requests into a single container or pallet. Do not delay part returns for consolidation, When returned parts are consolidated in the same container or pallet, its imperative that parts associated with the same service claim or work order be individually packaged and identified with the corresponding PRR Labels, tags, and are packaged or boxed together. In addition, copies of Caterpillar’s PRR Label and other associated documentation, such as CCRs, must be inserted in a waterproof envelope or bag with the requestor’s name showing. The waterproof envelope or bag must be affixed to the related package or container. Retumed parts that are received without corresponding PRR Label will be scrapped or retumed collect to the dealer at Caterpilar’s discretion, Dealers located in Asia Pacific, EAME, & Americas South should include an additional copy of the PRR Label within the shipping box. ‘When more than one container is needed for all the returned parts associated with a specific service claim or work order, all of the containers must be individually labeled and tagged with one of the containers identified as having the documentation included. Note Dealers: In situations where the Comments field indicates a different address than shown on the PRR label, dealers should contact Senditback support email address for additional assistance, Dealers in Americas North All requested parts must be shipped to the destination indicated on the request, Caterpillar will group all parts into loads based on the location, destination and weight of the parts. Cat Logistics will then schedule all shipments with the carriers. The shipping documents, known as the Dealer Pak, will be created by Caterpillar and delivered to dealers via email and SIB. Each Dealer Pak will contain one part label per part in the shipment and, depending on the mode of shipment, additional documents may be required. Each common carrier shipment will contain two copies of the Bill of Lading with a detailed packing list of each part, a container label and the individual part labels. Parts will be returned to final delivery location indicated on the Parts Return Request (PRR) label. Documentation for Surface and Air Shipments from Canada The following documents are required and will be provided to dealers for surface and air shipments from Canada: + Two (2) copies of the Invoice for Customs. + Two (2) copies of the Bill of Lading: one copy should be placed with the shipment; the other copy should be given to the driver. + Include one (1) original copy of EPA form 3520-21 for all engines shipped into the USA. (Includes those engines in machines, gen-sets or stand alone.) + For Engines with Reman Core value refer to “Dealer Instructions for Shipping Engine Cores” on page 8. + For Engines/Machines without Reman Core value refer to “Return Engine/Machine to US no Core Value" for detailed instructions on page 10. On the Invoice, for Customs purposes, dealers are required to complete the unit value and extended value for each part included in the shipment. Dealers must also complete the country of origin, which can be obtained by inspecting the parts. If no country of erigin is specified on the part, dealers should specify their current location as the country of harvest. Dealers should specify the currency units used to determine the part value. For Surfé ments from Fax the Bill of Lading with the carrier Pro Number and Commercial Invoice to: 2 4.0248 (08/22)CCaterpla Confidential Green Bulletin No, 4.02 Danielle Matschiner National Account Manager Licensed Custom House Broker NCBFAA Certified Customs Specialist Fax: 1-309-673-4133, For Air Shipments from Canada DHL Global Forwarding is Caterpillar's U.S. broker for air shipments. Copies of all shipping documents (including commercial invoices) should be sent to Caterpillar ord@DHL.com. Dealers in Americas South/Asia PacificlEAME - For Parts with No Core Value Dealers will group all parts into loads based on the location, destination and weight of the parts. Dealers in Americas South, Asia Pacific, and EAME will schedule all shipments with the carrier. Dealers should refer to the following links for shipping instructions: + For final destinations going to the US — follow instructions found: https:/icat app box comis/ivwwywo2b0e 1d12m74stadcairde5ed2/file/76921567409 https://cat app box comis/cliningoi3t04mSsrwhffxjeco48yy 1wifile/42493082309 (FPRP shipping instructions located on page 19) + For final destinations to non-US destinations: https’/cat app box. com/s jywwywo2b0e1dt2m74stq4cairdeScd2 Dealers should refer to Requestor comment field for additional instructions given at the time the request was created in SIB. Dealers are responsible for entering shipping and tracking information in SIB. Dealers will add the PRR number in the Shipping Document (Proforma Invoice). If the PRR number is not associated with the customs (Proforma) invoice, then the freight forwarder will not accept the shipment, Use the PRR number as the Customs Invoice Number in the shipping document, ‘An example of a Proforma Invoice may be found below, Example of Proforma Invoice CATERPILLAR’ Proforma Invoice SELLER SHIPPER WANE ADDRESS COUNTRY TORE RONEN PRR NONE [Sense] When returning a failed part, Country of Origin (COO) must be identified. The COO should be indelibly marked on the part. Depending on the condition of the failed part, it may be necessary to use a bright light to locate COO. If the COO for the partis not stamped on the part, or designated on the outer most container (box) then use Country of Harvest. Example: When a dealer removes a failed part from a machine or higher assembly and the COO cannot be identified then, the Country of Origin becomes the Country where the part was removed from said machine or higher assembly For instance, if a piston fails in an engine located in Japan, and is requested back for failure analysis, and the failed piston does not have the Country of Origin (COO) indelibly marked on the piston then the Country of Harvest would be Japan. In the case of unused parts on the shelf in Caterpillar packaging, the COO would be the COO noted on the carton. (04,02-18 (08122) 13Bulletin No. 4.02 Caterpilar: Confidential Green Shipping Instructions Instructions for arranging part return shipments are available on https://dealer.cat, com/en/bi/itsoftware/eiforp,htm! > FPRP Shipping Instructions, Refer to these instructions to provide the shipping instructions, Incoterms, and contact, information for each destination, Freight Claims Dealers in Americas North Parts shipments are scheduled by Caterpillar and prepaid so dealers will not be reimbursed for the cost of freight to relum parts. Internal dealer parts handling costs will not be reimbursed. Claims related to PRR incidents can be subject to reprocessing at any time. Caterpillar retains the option of debiting the dealer for credit previously extended, if the analysis of the retured parts justifies it, or if parts regarding a specific Warranty Claim were not retumied, Dealers In Americas South/Asia Pacific/EAME/Canada Caterpillar will reimburse the dealer for the shipping charges to retum a failed part according to the PRR instructions. Americas South, Asia Pacific and EAME dealers should submit a Freight Charge Claim to receive reimbursement for usual and customary shipping charges. Usual and customary shipping charges include: + Freight, custom duties and taxes (if applicable) + Caterpillar will not reimburse cost for fines, demurrage fees, or cost associated with incorrect shipping documents. + Intemal dealer parts handling costs will not be reimbursed, When submitting a Freight Charge Claim, indicate in the “Claim Comments Field’ + The characters “PRR” followed by the request number (e.g. PRR SIB1070059) In the "Claim Story” include the following information: + Shipping Invoice, Issuer Name, Date, and Number, and Date of PRR + Submit the Freight Charge Claim as Miscellaneous Code: “PRRFRT” Note: Dealer is required to keep the shipping invoice on file for Warranty review if asked, 1. The PRR freight charges are known prior to the submission of related incident claim. Include all claimable freight charges on the related Incident Claim under Miscellaneous expenses with the usual required explanation and documentation in the claim story. 2. The PRR freight charges are only known after the related Incident Claim has already been submitted, Submit ‘an Additional Information Claim (PD 20) to the one related to the actual incident. Indicate in the Claim Comments Field the characters “PRR’ followed by the request number. List under Miscellaneous expenses all claimable freight ccharges with the usual required explanation and documentation. Do not include any previously listed item, Submit the Additional Information Claim only after the receipt of the related Incident Claim Settlement Notice. 3. The PRRs not related to any claimable incident, but probably linked to a SIMS report. Submit a standard Claim with the standard heading including all information as if it was the related Incident Claim, but use a Part Description (PD) code of 56. Indicate in the Claim Comments Field the characters "PRR’ followed by the request number. List under Miscellaneous expenses, all claimable freight charges with the usual required explanation and documentation 4, The PRR concerns Parts Stock items for which a Parts Stock Claim has not yet been submitted. Include the claimable Freight charges on the related Parts Stock Incident. Claim under Miscellaneous expenses with the usual required explanation and documentation 5, The PRR freight charges are only known after the related Parts Stock Claim has already been submitted. Submit a Supplemental, Additional Information, Claim (PD 20) to the one related to the actual Parts Stock incident. Indicate in the Claim Comments Field the characters “PRR” followed by the request number if applicable. List under Miscellaneous expenses all claimable freight charges with the usual required explanation and documentation. Do not include any previously listed item. Submit the Additional Information Claim only after the receipt of the related Parts Stock Incident Claim Settlement Notice. 6. Several PRRs related to several different incidents, claims, etc. are SHIPPED TOGETHER to the SAME DESTINATION and result in ONE SINGLE PRR one single PRR freight charge/invoice. 4 4.0248 (08/22),CCaterplar Confidential Green Bulletin No, 4.02 ‘All PRRs included in such a shipment can be consolidated in one single PRR Freight Charge Claim. Select the Incident Claim which produces the major part of the shipping costs (consider Weight, Volume and possible Invoice details) and list all PRR claimable freight charges on this claim under Miscellaneous expenses. List in the Claim Story all other PRR Numbers and related incident Claims. A consolidated PRR Freight Charge Claim must be an Additional Information Claim (PD 20). Indicate in the Claim Comments Field the characters “PRR’ followed by the request number of the part with the most freight. Claims related to PRR incidents can be subject to reprocessing at any time. Caterpillar retains the option of debiting the dealer for credit previously extended, ifthe analysis of the retumed parts justifies it or if parts regarding a specific Warranty Claim were not returned, Claim Timeliness All PRR Freight Claims must be submitted within 60 days from shipmentiretum of the part(s). Denied or Non-Allowed Debited Claims I responses are not recorded in SIB within 14 calendar days after issuance of the PRR or Information Request, any associated service claims may be denied or non-allowed, depending on the specifics of the service claim. Caterpillar retains the option of debiting dealers for service claim credit previously paid. The following are examples, of when debits may be issued as a result of warranty parts returns, but this is not a complete list: + PRRs without a response within 14 calendar days. + PRR response part "Not Available” without a valid reason why it could not be returned, + Parts damaged due to incorrect handling or packaging by dealer. + Parts that should have been repaired. Policy Requirements Non-Compliance If requested photos or information are not provided in 414 calendar days, associated Service Claim may be denied Ail dealers: Information Requests: 14 calendar days to respond in SIB with photos and information Dealers may submit extenuating business circumstances through SIB (in the SIB “No Part” Dealer Comments field) for debit exception consideration ‘Americas North dealers: Parts Request: 14 calendar | if No Part’ or if requested tracking information is not days to respond in SIB to part request provided in 14 calendar days, associated Service Allnon Americas North dealers: Parts Request: 14 | Claim may be denied calendar days to respond in SIB to part request Dealers may submit extenuating business When Dealers have shipping responsibiites, Dealers | circumstances through SIB (in the SIB “No Part” are required to provide shipment tracking information | Dealer Comments field) for debit exception for failed part in SIB consideration If Requestor does not respond to Dealers reply with in 14 calendar days, dealer is to save email and close request Requestors: Required to provide alternative contact information when not available + Assemblies that should have been rebuilt. Parts inspection indicates failure not Caterpillar’s responsibilty. + Parts replacement not justified. Part replaced was not a Cat part The debit process policy requirements and non-compliance actions are specified in the chart below. Any subsequent claims for partially or totally non-allowed claims due to requested parts not being returned will not, be considered for warranty. (04.02-18 (08122) 8 > Indicates change.Bulletin No. 4.02 Caterpilar: Confidential Green Contesting Debited Claims of “Parts Not Received as Requested” A contact name (debit requestor) and phone number is provided in many debit claim stories. When this contact, information is provided, the process to contest begins with contacting that person directly by phone or email. Do not submit anew claim, Dealer must initiate contest action for the debited claim within the Contested Claims time limit set forth in Bulletin 1.13, For debits that result from not returning parts requested via Send-It-Back, proof of the shipment on a date prior to debit action may be provided to the Cat debit requestor for consideration. Additional information regarding the claim may be required to contest debit issued for other reasons. If the debit requestor agrees that debit was incorrect they will initiate a debit reversal (credit claim), Second Level Dealer Warranty Part Returns Second Level Dealers will conduct warranty part returns through their Cat dealer. Its the Cat dealer's responsibilty to ensure timely part return to Caterpillar. Second Level Dealers will receive PRRs through the Send it Back (SIB) system. Please refer to Bulletin No. 4,02T for complete Global Warranty Parts Return Handling guidelines for ‘Second Level Dealers. 16 04.0248 (08/22),