WARRANTY POLICY FOR AGRICULTURAL STRUCTURES AND EQUIPMENT

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Jocelyn Osborne
5 years ago
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1 WARRANTY POLICY FOR AGRICULTURAL STRUCTURES AND EQUIPMENT 1.0 PURPOSE This Warranty Policy provides guidance and clarification on the Manufacturer s Limited Warranty for Agricultural Structures and Equipment (Documents ) offered by CST Storage. This policy is intended for use by CST Storage Authorized Dealers (A.D.) to aid in the process for submittal, validation, and resolution of warranty claims. This policy supplements the CST Limited Warranty. All A.D. must comply with this policy. 2.0 EFFECTIVE DATE This policy is effective as of November 1, RESPONSIBILITY The Director of Field Services is responsible for oversight of the warranty program, including the authority to make final determinations on all warranty claims. The Field Services Manager is responsible for execution, enforcement, and interpretation of this policy and the warranty claims process. The Warranty Administrator is responsible for day-to-day management and coordination of the warranty claims process. 4.0 CLAIM SUBMITTAL A. All warranty claims must be submitted to CST Storage using the new Warranty Online system at which will be available on September 14, This new warranty online system will replace the existing D1818 submittal form. a. CST Storage will provide training on the use of the system to all A.D. b. A.D. may submit warranty claims using the existing D1818 form during a transition period through November 30, c. Effective November 30, 2015, all claims must be submitted through the Warranty Online system. Claims submitted using the D1818 form will not be processed. B. CST must be notified of all warrantable conditions within 90 days of discovery Rev. 1 Page 1 of 8

2 C. All warranty claims must be submitted within 45 days of the date the repair was performed by the A.D. Claims not submitted within 45 days will not be accepted by Warranty Online system and will be waived. D. A warranty claim is created by entering the following information into Warranty Online system: a. Authorized Dealer Name, Number, and Address b. Customer or Farm Name and Address c. The date of the repairs d. The type, model number and size of structure or equipment e. The serial number, installation date, and operating hours of the equipment f. The part number and installation date of the equipment or part that is being replaced or repaired under warranty g. A brief, concise explanation of the operational facts that includes why, how and when the part failed. The explanation must articulate the defect in material or workmanship that exists and why it is a warrantable failure covered under CST s Limited Warranty. E. All warranty claims must be accompanied by the required supporting documentation that has been completely, accurately, and legibly filled out in English. This documentation must be scanned into one PDF document for each claim and uploaded into the Warranty Online system database. The following documentation is required: a. Document issued by the A.D., such as a work order, service order, purchase order, invoice, or equivalent that shows the purchase and installation date of all equipment, parts, or chains and scope of the replacement or repair of the part under warranty. b. For all chain warranty claims, a properly completed Chain Warranty Inspection Form. c. For extenuating circumstances, non-standard chain or breather bags claims, and structure claims, pictures of the damage or failure of the structure, equipment, or part to substantiate the warranty claim should be provided. The pictures should document: i. Defective part in place before removing or replacing ii. Close up of defect or failure iii. Part # or date code or Name plate d. For structures, extenuating circumstances, non-standard chain or breather bag claims, all timesheets, receipts, rental invoices, etc. must be submitted to substantiate the claim Rev. 1 Page 2 of 8

3 5.0 VALIDATION A. All equipment must be operated by the Owner in accordance with CST s Operations and Maintenance Recommendations as outlined in the Owner s Manual. Failure to do so will void the warranty and release CST from any liability CST may request service records or a maintenance log to verify minimum required maintenance has been completed. B. Any failure of equipment or part due to inadequate maintenance and upkeep voids the warranty. C. Any unapproved or unauthorized modifications or alterations or any use of non-cst parts which are contributory to the claim voids the Warranty. D. Normal wear of any equipment or part, absent of a defect, is not covered under the warranty. E. All purchased service parts, with the exception of unloader chains and breather bags, are warranted for a period of one year from the date of installation which can be verified by a document issued by the A.D. that substantiates the installation date. F. Unless noted otherwise in this document, parts that are replaced under warranty will only be warranted for the remainder of the original warranty period of the structure, equipment or part. The warranty does not reset with the installation of a replacement part or any other service or warranty work. G. If required by CST for validation of the warranty claim, CST will issue a Return Material Authorization (RMA) for the equipment or parts to be shipped to CST s facility in DeKalb, IL by the A.D. via pre-paid ground transportation. a. If the warranty claim is approved by CST, the shipping charges for the RMA will be reimbursed by CST when the claim is processed and approved by CST. b. If the warranty claim is not approved by CST, the A.D. will be responsible for the shipping charges. c. CST will not validate a warranty claim when an RMA has been issued until the alleged defective equipment or part has been received and inspected by CST or submitted to the OEM for inspection. d. If CST replaces the equipment or part under warranty, CST will own the equipment or part that has been replaced Rev. 1 Page 3 of 8

4 e. By returning the equipment or part under the RMA, the A.D. relinquishes all claim of ownership of the equipment or part. No equipment or parts returned by an RMA will be returned to the A.D. f. CST will issue an RMA for all gearboxes, motors, and variable frequency drives which must be returned to CST on all claims related to these parts. g. CST reserves the right to issue an RMA for any equipment or part. The A.D. must keep all equipment and parts for which a claim is filed for no less than 60 days from the date the claim is filed should CST later issue an RMA. h. Equipment and parts returned without an RMA attached will not be accepted nor unloaded and the claim will not be processed. H. If a chain section or other portion of a chain is required to be returned to CST, CST will issue an RMA for the return of a full or partial chain, at its sole discretion. I. If a breather bag is replaced under warranty, the serial number and part number section of the yoke of the failed bag should be returned along with the section(s) of the bag including an 18 radius surrounding the failed area. a. An RMA will be issued by CST for any breather bag claim. The bag components should not be submitted until an RMA is issued. b. Do not return the entire bag to CST unless requested. J. If the hour meter of an unloader no longer functions, or provides accurate data, or substantiating documentation (photo) is not provided with the claim for an unloader or chain, at its sole discretion, CST may elect to use the date of installation, as substantiated by documentation from the A.D., to pro-rate the claim based on the number of months in operation since installation. K. All new chains purchased individually or on new unloaders must be registered by submittal of the Chain Warranty Registration Certificate within 30 days after installation. 6.0 PROCESSING AND REMEDY OF A VALID CLAIM A. CST Storage may, at its sole discretion, issue credit memos for the replacement of equipment or parts, or provide replacement equipment or parts, FOB DeKalb, IL at CST s manufacturing facility. Replacement equipment and parts must be ordered using the Warranty Online system. After review and validation by CST, a no-charge sales order will be issued by CST Storage and the replacement equipment or parts will be available for pickup by the A.D. at the dock at CST s manufacturing facility in DeKalb, Illinois Rev. 1 Page 4 of 8

5 a. Alternatively as directed by the A.D. CST may ship warranty replacement equipment or parts with another scheduled order to the A.D. b. If special expedited shipping is required, the A.D. will be required to reimburse CST for the shipping costs. B. The chain warranty for new and replacement chain is shown in the matrix below. a. Each chain product has a pro-rated warranty which is governed by the earlier of the number of operating hours or months of service. b. If a covered chain fails in the first half of the respective warranted period of the chain (hours or months) as shown below, CST will provide a new replacement chain at no cost and reimburse for labor per this policy. The original warranty term of the replaced chain will remain in effect and unchanged. c. If a covered chain fails in the second half of the respective warranted period of the chain (hours or months), the A.D. must pay the pro-rated amount of a new chain as shown below. The new replacement chain will be provided with a full warranty term consistent with a new chain purchase as shown below, effective from the date of the installation of the new replacement chain. i. When a new replacement chain is only partially covered, CST will issue a sales order for a new chain. The dollar amount of the sales order will be reduced by the prorated dollar amount that is covered under warranty. The A.D. will need to acknowledge the prorated sales order amount and issue a purchase order before the sales order is approved by CST for fulfillment. ii. For example, for a chain with 25% replacement coverage by CST, CST will issue a sales order for a replacement chain at list price less the pro-rated percentage of 25% and will process the sales order once a purchase order for 75% of the list price is received from the A.D. d. The standard labor reimbursement in paragraph C below is not-pro-rated; the pro-ration only applies to the purchase of the chain. e. If a functional hour meter does not exist, or the existing hour meter is not operational, the operating hours cannot be used as a basis for the warranty claim and the effective start of the warranty defaults to the months of service from the installation date as validated from documentation provided by the A.D Rev. 1 Page 5 of 8

6 Chain Warranty Replacement Coverage by CST Re-investment by Dealer Terms of Coverage on Replacement Chain Earlier of: XL 200/400 SS bushing cutter chain hours 0-24 months 100% 0% Original Term hours months 50% 50% Earlier of 48-mo or 1000-hrs hours months 25% 75% Earlier of 48-mo or 1000-hrs alloy steel bushing conv chain hours 0-12 months 100% 0% Original Term hours months 50% 50% Earlier of 24-mo or 500-hrs ALLIANCE SS bushing cutter chain hours 0-24 months 100% 0% Original Term hours months 50% 50% Earlier of 48-mo or 1000-hrs hours months 25% 75% Earlier of 48-mo or 1000-hrs alloy steel bushing conv/cutter chain hours 0-12 months 100% 0% Original Term hours months 50% 50% Earlier of 24-mo or 500-hrs C. In accordance with CST s Limited Warranty, CST will not reimburse for labor except as noted below. When the claim is submitted on Warranty Online, labor costs may be added as a line item and if the warranty claim is approved, a credit memo will be issued to the A.D. for any approved labor charges. a. If a valid warranty replacement claim for an unloader chain is approved, CST will reimburse the A.D. the not-to-exceed amount of $250 to cover all labor, per diem, travel and other related costs. b. If (i) a valid warranty replacement claim for an unloader chain is approved, (ii) a digout is required to remove the unloader for chain replacement, and (iii) the claim is documented by a time-stamped photo of the dig-out, CST will reimburse the A.D. the not-to-exceed amount of $500 to cover additional labor and related costs for the digout. c. If a valid warranty replacement claim for a breather bag is approved, CST will reimburse the A.D. the not-to-exceed amount of $150 to cover all labor, per diem, travel and related costs. d. The A.D. may submit a request for additional payment for unique and extenuating conditions or occurrences at a site which justify reimbursement of additional labor costs for repair or replacement of agricultural equipment and parts. Such conditions must be submitted in writing with supporting documentation and pictures and justification why they should be considered for reimbursement. Any additional labor, if approved by CST, will be reimbursed at the rate of $50/hour for work at a site, and to include all labor, per diem and travel costs (motel, etc.). e. If any labor costs in excess of $2,000 are anticipated on an ag-related claim, CST must be notified in writing before the A.D. commences the repair or replacement. Claims over $2,000 without pre-notification may be denied or reimbursement capped at $2,000. f. Mileage will not be reimbursed Rev. 1 Page 6 of 8

7 g. For structures, any claim that may result in a potential reimbursement request of more than $5,000, CST must be notified before the work commences. The A.D. must provide to CST a written estimate of the expected charges and a written statement of the extenuating circumstances why CST should consider additional compensation. D. CST reserves the right to replace the warranted equipment or part with an identical or substantially similar new part or re-manufactured part at its discretion. a. Any part, remanufactured or not, that is sent as a replacement under the warranty will be warranted for the balance of the original equipment or part warranty only. E. CST will review and resolve all warranty claims and update the A.D. in a timely manner. a. When the claim is submitted through Warranty Online, an acknowledgement will be sent within one (1) business day confirming CST has received the claim in the online system. b. Within five (5) business days of the claim submittal date, CST will send notification that: i. the claim is valid and all information has been received and documentation is complete, or ii. the claim is incomplete and additional information is required, which must be submitted to CST within 10 days or the claim will be closed, or iii. if an RMA is required, the RMA will be sent and the claim will be put on hold until review and inspection of the returned equipment or parts, or iv. the claim is denied c. Within thirty (30) business days after the claim submittal date, the claim will be resolved and the A.D. notified of the final resolution unless the claim cannot be resolved for one of the reasons below, at which time CST will advise the claim is onhold and the timeline for resolution: i. An RMA has been issued and the claim is on-hold awaiting review and inspection of the returned equipment or parts; or ii. CST has determined that there are extenuating circumstances that require additional investigation (site visit, etc.) and time to resolve. d. If the A.D. does not dispute the resolution of the claim within ten (10) business days of receiving final resolution notice from CST, the claim is considered accepted and closed. i. An A.D. may request explanation or clarification of the disposition of a claim by sending a request to warranty@cstindustries.com. ii. If the A.D. wishes to dispute the claim, written notice to CST must be made by to warranty@cstindustries.com and received within ten (10) Rev. 1 Page 7 of 8

8 business days after notice from CST. The correspondence must clearly state why the claim should be reconsidered and clarify existing information or provide new relevant facts for consideration. iii. CST will review and respond to any disputed claims within ten (10) business days after receipt of written dispute from the A.D. e. The A.D will be able to see the status of all approved Sales Orders for replacement parts on their daily Open Orders Report once they have been approved by CST. 7.0 CLARIFICATION OF THE POLICY A. Any questions pertaining to this policy must be submitted in writing to Questions will be answered in writing Rev. 1 Page 8 of 8

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