A.

TP’s Roles, Responsibilities and Specific Understandings:

TP Shall:

1.

Verify that the primary manufacturer’s artificial heat source is capable of producing HT and/or KD/HT MWP in accordance to the requirement as defined by the International Plant Protection Convention (IPPC) Guidelines for Regulating Non-Manufactured Wood Packing In Use For Transport of Commodities.  

2.

Verify that the Licensee stores and/or separates HT and/or KD/HT products from other products, material or components not intended for MWP.

3.

Verify that incoming product, material and/or components used in the process of producing HT and/or KD/HT components or MWP material is grademarked HT by an agency that is accredited by the ALSC’s Board of Review to produce the HT and/or KD/HT products.

4.

Verify that materials, components and products in the TP HT and/or KD/HT MWP program are properly and legibly identified and marked.

5.

Review incoming and outgoing volumes of HT and/or KD/HT product of licensee to verify the total production used in HT and/or KD/HT process.  These volumes must be reported as “Board Feet”.

6.

Verify that the applicable HT and/or KD/HT marking contains the necessary information.  

7.

Recover all TP HT and/or KD/HT marking material within a reasonable time of notice of change in status, once the Licensee enters an inactive or suspended status or if the Licensee’s contract with TP is terminated.

8.

Report audit summaries and all such data to Board of Review of the ALSC upon request.

9.

Audit each authorized HT and/or KD/HT Licensee a minimum of 12 times a year (Generally once per month).

10.

Remove or cause to be removed any HT and/or KD/HT marks placed on each piece that are determined not to conform to the HT and/or KD/HT specifications noted in Sub-Sections 1-6 of Section A.

11.

Address any circumstances or conditions that result in a non-conforming HT or KD/HT product in a reasonable period of time.

B.

Licensee’s Roles, Responsibilities and Specific Understandings:

The Licensee Shall:

1.

Meet the requirements of the ALSC MWP Enforcement Regulations, the ALSC MWP Policy and the TP Quality Auditing Program as to produce material that conforms to the International Plant Protection Convention Guidelines for MWP.

2.

Make available shipment records for TP review, indicating the volumes of HT and/or KD/HT material shipped per month.  Volumes must be reported as board feet.

3.

Upon request, allow TP to review receiving records at Licensee which indicate volume of HT and/or KD/HT material shipped.  (This requirement is not applicable to primary manufacturers).

4.

Allow TP to review HT and/or KD/HT materials to verify legibility and conformance for HT and/or KD/HT marking.  The various Licensees shall:

1. Primary manufacturer:  Mark each piece.

2. Secondary manufacturer: Mark each piece.

3. MWP manufacturer:  Mark, stencil, or brand each manufactured product.

5.

Include the following information on HT and/or KD/HT products.

1. The term “Heat Treated” abbreviated “HT” and if applicable, the moisture content designated “Kiln Dried” abbreviated “KD” as provided for in Board of Review Certified Grading Rules.  

2. The unique number assigned to the manufacturer Licensee that produces the HT and/or KD/HT material.

3. The identifying symbol, logo or name of the accredited agency.

4. The internationally accepted symbol for HT materials and country of origin abbreviations proceeding manufacturing identification number.  (This is only applicable for MWP manufacturers).  

6.

Allow TP access to Licensee’s records and facilities a minimum of once per month during regular business hours.

7.

Allow TP to obliterate any TP HT and/or KD/HT marks placed on the product that is determined not to conform to the HT and/or KD/HT specifications suggested in Subsection 1-6 of  Section A.

8.

The Subscriber hereby agrees to indemnify and hold harmless Service and each of its officers, employees and agents (each of which is herein referred to as an "Indemnitee") from and against any and all claims, losses, damages, liabilities, suits, cost and expenses (including attorneys' and experts' fees and expenses) (herein referred to as a "claim") incurred by or asserted against any Indemnitee as a result of or in connection with the operation or condition of any facility or Subscriber; the production of any product by Subscriber; the condition, quality or conformance or non-conformance of any product of Subscriber to the appropriate quality standards; or the failure of any such product to perform properly in service. The indemnity provided herein shall be deemed to be activated if a claim is made, even if such claim shall ultimately be deemed to be unfounded. If any claim is asserted against Service, Subscriber shall, upon request by Service in writing, assume the defense of such claim or reimburse Service (upon the presentation of  bills and invoices) for all expenses incurred by Service to the defense of such claim. The obligation of Subscriber to indemnify any Indemnitee hereunder shall survive the cancellation or termination, for any reason whatsoever, of this Agreement.

9.

Allow TP to recover all such HT and/or KD/HT trademarked or trademarking material within a reasonable time of notice of the change of status once the Licensee enters an inactive or suspended status or if the Licensees contract with TP is terminated.

10.

Give the Board of Review the continuing right to have a representative examine any accredited agency grade stamped or quality marked wood or non-manufactured packing at the point where the Agency official quality mark is being used.

11.

Give the Board of Review the right to spot check at destination points any products bearing its quality mark, and shall incorporate a similar provision in its contract with the non-manufactured wood packing facility giving the Board of Review representatives the right to make such examinations wherever such products are encountered.

C.

Fees and Payments:

1.

The Licensee agrees to pay TP:

1. Primary manufacturer:  For routine quality services, the sum of $320.00 (US) per month or .36/thousand board feet per plant, whichever is greatest.  (Lumber accounts presently in TP’s ALSC grademarking program are exempt)

2. Secondary manufacturers:  For routine services, the sum of $320.00 (US) per month or .36/ thousand board feet per plant, whichever is greatest for HT and/or KD/HT material shipped.

3. Non-manufactured wood packing manufacturer:  For routine services, the sum of $320.00 (US) per month or .36/thousand board feet per plant, whichever is greatest for HT and/or KD/HT material shipped.

2.

For HT and/or KD/HT producers in Alaska, Hawaii or areas outside routine travel areas, fee structures will be developed on a case by case basis.

3.

For qualification, re-qualification, follow-up and reinspection services the sum $60.00 (US) per hour, plus reasonable related expenses for Licensees located in the United States.

D.

Contract Terminations

1.

It is agreed by Licensee that TP shall have the right to suspend or revoke this license if the Licensee fails to maintain the aforementioned standards, or the Licensee should be found to have mislabeled any of its products, or if the Licensee should be found to have used the HT and/or KD/HT in an unauthorized manner.

2.

Failure on the part of the Licensee to fulfill any of the agreements contained herein, or any reasonable rules and regulations in relation to official industry standards, shall be grounds for immediate termination of this agreement on notice to the Licensee. 

3.

If said Subscriber goes in an inactive, terminated or suspended status before six months of service has been rendered by Timber Products Inspection, Inc. the Licensee agrees to pay Timber Products Inspection, Inc. six months minimum payments.  (Licensee’s minimum payment amount is noted on the contract).  If a Licensee is “inactive for”30 days or more, the fee to reactivate service is $320.00 which is to be paid before re-qualification begins.