SECTION 9 - PARTS

V.

PARTS ORDER POLICY AND PROCEDURES

(Mexico)

WEEKLY STOCK ORDERS

Stock orders (1 per week) are to be used by the Distributor to replenish and maintain a
parts inventory level which will provide maximum service for the engine population in the
assigned territory.

Order Entry

*Stock orders must be placed via the Internet www.deutzusa.com (as of 4/1/2003)
When placing a Stock order the following information is required:
• Specify that it is a Stock Order
• Include the Distributor ID number
• Include the Distributor purchase order (P.O.) number
• Indicate the quantity and part number required

Stock orders will be shipped within 5-7 working days from the date received at DEUTZ
Corporation.

• Stock orders will be shipped to the DEUTZ Distributor/Branch locations only.

Back Order Expediting

Back orders will be consolidated when parts become available, and shipped with the next
stock order, by prepaid freight.
Billing
• Stock orders qualify for the annual 2% scrap allowance.
• Stock orders placed on the Internet qualify for a 1% marketing fund (as of 1/1/2003).
Freight
• Stock orders will be shipped freight prepaid to a U.S. border location only. DEUTZ
Corporation will designate the method of shipment.
• Any discrepancy with regard to the order or the shipment must be reported within 10
working days of the receipt of the order.

*As of 4/1/2003 prepaid freight, 2% scrap and the 1% marketing fund are only earned on
Internet orders.

Effective: April 1, 2003 Page: 9.1

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 SECTION 9 - PARTS
V.

MONTHLY STOCK ORDERS

Monthly stock orders (2) per month) are to be used by the Distributor to replenish and
maintain a parts inventory level which will provide maximum service for the engine
population in the assigned territory.

Order Entry

Monthly stock orders must be placed via the internet www.deutzusa.com (as of 4/1/2003)
When placing a monthly stock order the following information is required:
• Specify that it is a Monthly Stock Order
• Include the Distributor ID number
• Include the Distributor purchase order (P.O.) number
• Indicate the quantity and part number required
• Monthly stock orders will be shipped within 5-7 working days from the date
received at DEUTZ Corporation.
• Monthly stock orders will be shipped to the DEUTZ Distributor/Branch locations
only.

Back Order Expediting

Back orders will be consolidated when parts become available, and shipped with the next
stock order, by prepaid freight.

Billing

• Monthly stock orders will receive an additional 5% discount.

• Monthly stock orders qualify for annual 2% scrap allowance.
• Monthly stock orders qualify for the 1% marketing fund.

Freight

• Monthly Stock orders will be shipped freight prepaid to a U.S. border location only.
DEUTZ Corporation will designate the method of shipment.
• Any discrepancy with regard to the order or the shipment must be reported within 10
working days of the receipt of the order.

*As of 4/1/2003 stock order discounts, prepaid freight, 2% scrap and the 1% marketing
fund are only earned on Internet orders.

Effective: April 1, 2003 Page: 9.2

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 SECTION 9 - PARTS
V.

REGULAR ORDER
Regular orders are to be used by the Distributor to provide a means to supplement stock
orders and maintain a parts inventory level which will provide maximum service for the
engine population in the assigned territory.

Order Entry
Regular orders can be placed directly via deutzusa.com, or FAX.
When placing a Regular order the following information is required:
• Specify that it is a Regular order
• Include the Distributor ID number
• Include the Distributor purchase order (P.O.) number
• Indicate the quantity and part number required

Regular orders will be shipped within 2-3 working days from the date on which it is
received at DEUTZ Corporation. Regular orders will be shipped to the DEUTZ
Distributor/Branch locations only.

Back Order Expediting

Back orders will be consolidated and shipped as part of the next Regular Order.

Billing

• Regular orders do not qualify for the annual 2% scrap allowance.

Freight

• Any discrepancy with regard to the order or the shipment must be reported within 10
working days of the receipt of the order.
• Regular orders will be shipped freight collect or pre-paid and charged to the
Distributor.

Effective: April 1, 2003 Page: 9.3

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 SECTION 9 - PARTS
V.

EMERGENCY (BREAKDOWN ORDERS)

Emergency orders are top priority and should be used only when an engine has failed
and is out of service. For the fastest delivery service you are requested to order only
those parts required to complete the repair. Emergency orders should not include
service items such as belts, filters, etc.

• Orders that reflect parts quantities that are not representative of a single engine
repair will not be prioritized and therefore will not be processed on the same
day.

Order Entry
Emergency orders can be placed directly via the Internet www.deutzusa.com or by Fax.

When placing an emergency order the following information is required:

• Specify that it is an emergency order
• Include the Distributor ID number
• Include the Distributor purchase order (P.O.) number
• Indicate the quantity and part number required
• Emergency orders must be shipped (minimum two day routing)
• If it is to be a drop shipment please include customer name and address, and special
instructions if necessary.
• Specify freight account number for third party order

Available stock will be shipped the same day that the order is received. To help ensure
same day service, orders must be received according to the following shipping schedule:

• All orders requiring same day service must be received by 4:00 PM Eastern
Time.
• Non Internet orders requiring same day service must be received by 3:00 PM
Eastern time.

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 SECTION 9 - PARTS
V.

Emergency Order Policy Continued:

Back Order Expediting

Back orders will be expedited from DEUTZ Corporation or other sources if necessary.
• You will be notified if an emergency order cannot be filled.
• Back ordered parts will be shipped when available, via (minimum two day routing)
unless otherwise indicated. Charges will be collect or pre-paid and charged to the
Distributor.

Billing

• Invoicing will be at Distributor cost.

• A surcharge of 5% per line will apply.
• Third party (supplier to Distributor) surcharge is an additional fee of $100.00 per order.
• Emergency orders do not qualify for annual 2% scrap allowance.

Freight
• All freight shipments by UPS will be prepaid and charged to the Distributor.
• Distributor must supply freight account number for all other carriers.
• Any discrepancy with regard to the order or the shipment received must be
reported within 10 working days of the receipt of the order.

REMANUFACTURED ENGINE ORDERS

It is the intention of DEUTZ Corporation to stock a selection of the most popular basic
engine models. Basic engines will not be equipped with a Starter, Alternator, Flywheel,
SAE Housing, Mounting Brackets, Exhaust Manifold or Air/oil bath Cleaner assembly.

Order Entry
Remanufactured engines are not to be ordered through the normal parts procurement
process. Place orders by Fax or by contacting the Manager of Exchange Operations
between 8:00 A.M. and 5:00 P.M. Eastern Time.

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 SECTION 9 - PARTS
V.

Remanufactured Engine Policy Continued:

When placing a Remanufactured Engine Order the following information is required.

• Specify that it is a Remanufactured Engine Order.

• Include Distributor I.D. number.
• Include Distributor P.O. Number.
• Indicate the quantity and part number (if known) of the engine.
• List the serial number (if available) of the engine being replaced.
• List the OEM and equipment model for which the engine is being ordered.
• Horsepower and RPM.
• Special freight instructions if any.

Back orders
If the engine is not in stock you will be notified of the expected delivery date.

Shipping
• Orders for stock Remanufactured Engines will be shipped within 1-2 business days
• Non-basic special order engines will require a longer delivery lead-time.
• Expedited service for non-stock engines is approximately 14 days.
• Distributors will be billed airfreight costs when expedited deliveries are requested.

Core Exchange
Please refer to DEUTZ Exchange Parts “Policy and Procedure” guide

Billing
Invoicing will be at Distributor cost.
• Remanufactured engines do not qualify for the annual 2% scrap allowance.
• Remanufactured engines do not qualify for Dealer compensation or program
discounts.

Freight
• Remanufactured engines will be shipped freight collect or prepaid and charged to the
Distributor.
• Any discrepancy with regard to the order or the shipment must be reported within 5
working days of the receipt of the order.

Effective: April 1, 2003 Page: 9.6

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 SECTION 9 - PARTS
V.

2 % ANNUAL PARTS SCRAP ALLOWANCE POLICY

Each February, DEUTZ Corporation will notify each Distributor of the total dollar amount
accrued for scrap allowance. The allowance will be based on 2% of stock order
purchases from the previous calendar year.

Conditions and Procedures

• Distributor needs to establish a scrapping list, showing the part number, description,
quantity plus individual and extended distributor cost per line. In addition, show total
dollar amount of all scrapped parts. This value is not to exceed your allowable dollar
amount.
• All the parts scrapped are to be new and in salable condition, prior to scrapping.
There are no minimum line item values and no restriction on the scrapping of filters,
elements, gaskets, seals, seal kits, v-belts or engine completion kits.
• Tools, paint, sealant, compound or parts not listed in the current price CD are not
eligible for the scrap allowance.
• All scrapped parts must be traceable to a purchase from DEUTZ Corporation.
• Scrapping of the parts must be completed within 45 days from date of authorization.
You will receive an Affidavit, which you must sign and mail to DEUTZ Corporation with
the parts scrapping list. The completed Affidavit must arrive at DEUTZ Corporation
within a few days after the scrapping of the parts.

Scrapping

DEUTZ personnel do not need to be present for the scrapping event to proceed.

Credit

Credit will be issued within 30 days after scrapping is completed and approved.

Effective: April 1, 2003 Page: 9.7

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 SECTION 9 - PARTS
V.

30 DAY PARTS RETURN POLICY

DEUTZ Distributors are given the opportunity to return parts that are:
• Supplied in error
• Ordered in error

Return Request

A DEUTZ “Parts Return Authorization” must be filled out and forwarded to DEUTZ Central
Parts, within 30 days of the invoice date. The request will be processed within five (5)
working days and returned to the Distributor with a RA # (Return Authorization number).

30 DAY PARTS RETURN POLICY CONTINUED:

• Parts with invoices exceeding 30 days will not be accepted.

• SA kits are not returnable.
• Parts authorized for return to DEUTZ Central Parts must be new, unused, in salable
condition and properly labeled with DEUTZ part numbers.
• Unidentifiable or unacceptable parts will be scrapped and no credit issued.

Shipping

• Parts returned under this policy must be shipped to DEUTZ, freight pre-paid.
• Parts damaged or otherwise deemed non-saleable due to shipment will be scrapped
and no credit issued.

Credit
Credit will be issued within 30 days, once the inspection and processing of the return is
complete. The credit will be issued at current Distributor cost.

• A 20% restocking charge will be applied to any return of parts ordered in error.

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 SECTION 9 - PARTS
V.
BUY BACK PARTS RETURN POLICY
This policy is designed to enable the Distributor to convert “idle inventory” into active
parts inventory. These Special Parts Return requests will be handled on a case-by-case
basis. There is no pre-commitment by DEUTZ Corporation with regard to any
purchase of Distributor inventory nor is there a set timeframe for the processing of
a special buy back request.

Return Request

The Parts Request Return must be submitted to DEUTZ Corporation by using Microsoft
Excel spreadsheet with a heading “Special Parts Return Request”. No other means of
submitting a request will be accepted.

The following parts are considered as non-returnable under this policy:

• Parts no longer listed in the current price list
• Parts with a minimum net value of less than $2.50 each and less than $10.00 total per
line.
• filters and elements
• gaskets / seals / seal kits / compounds
• Paints / sealant
• V-belts
• SA, Engine completion kits

Parts authorized are to be returned to DEUTZ Central Parts, and must be in new,
unused, clean, saleable condition and labeled with the DEUTZ part number. Parts
damaged during shipment will be scrapped and no credit issued.

Shipping
Parts authorized for return under this policy must be shipped freight pre-paid.

Credit
Once inspection and processing is completed, credit will be issued at Distributor cost less
a minimum 25% restocking charge. Unacceptable parts will be scrapped and no credit
issued.

Effective: April 1, 2003 Page: 9.9

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 SECTION 9 - PARTS
V.

DEALER COMPENSATION
This policy is designed to encourage the Distributor to provide the necessary technical
service, warranty administration, training and parts inventory to support his Dealer
network.

Definition of a Dealer

A Dealer, as defined by DEUTZ, has met the criteria of the QUESST program as an
establishment offering a parts inventory as well as service to a user of DEUTZ engines.
Only Dealers listed as having complied with the QUESST program are eligible for a
Dealer Rebate.

• DEUTZ Corporation reserves the right to disallow the Dealer compensation for any
Dealer that does not maintain the standards of a QUESST certified Dealer.

Parts Included
Genuine DEUTZ parts purchased from DEUTZ Corporation and sold by a Distributor to a
DEUTZ authorized Dealer in his contractual territory will qualify.

Parts Excluded
Items not qualifying for compensation are tools, manuals, SA kits, exchange engines,
MWM parts, or DEUTZ Mannheim parts.

Selling Price
To be eligible for compensation, the Distributor must sell all parts to the Dealer, at
DEUTZ Corporation Dealer price only.

Compensation Amount
Unless otherwise specified in writing, the compensation is 12% of the DEUTZ published
Distributor price in effect at the time of the sale.

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 SECTION 9 - PARTS
V.

DEALER COMPENSATION CONTINUED:

Dealer Listing

Only Dealers listed as having complied with the QUESST program are eligible for
compensation. DEUTZ Corporation reserves the right to disallow the Dealer
compensation (at any time to any Dealer) that does not maintain the standards of a
QUESST certified Dealer.

Compensation Submittal

• The Dealer compensation must be submitted monthly if the request is $300.00 or

more, otherwise quarterly on form DC 8111.
• Requests need to be received by DEUTZ Corporation within 30 days after the
preceding month or quarter, which ever applies. Requests received after this period
will not be considered.

Audits
DEUTZ Corporation reserves the right to periodically audit Distributor compensation
requests at any time. Auditing will be conducted at random and will include a request for
Distributor invoices.
• Invoices must be complete and include dates, part numbers, quantities, and the
amount paid. Should it become necessary, additional invoices will be requested.
Parts Included
Genuine DEUTZ parts purchased from DEUTZ Corporation and sold by a Distributor to a
DEUTZ authorized Dealer in his contractual territory will qualify.

Parts Excluded
Items not qualifying for compensation are tools, manuals, SA kits, exchange engines,
MWM parts, or DEUTZ Mannheim parts.

PARTS WARRANTY
All new and remanufactured “Genuine DEUTZ Parts” including Remanufactured
exchange engines and components purchased from DEUTZ Corporation will be covered
under warranty for a period of one year from the date of installation. All other terms and
conditions of the existing engine/parts warranty remain intact.

Effective: April 1, 2003 Page: 9.11

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