Document No.

:
Page 1 of 4
SMD-P-001
BAD ORDER POLICY Effective Date: Revision No.
TROPICAL AGRICULTURE
COOPERATIVE
July 25, 2024 00

HISTORY OF REVISION
REVISION PAGE REASON FOR
EFFECTIVE DATE AUTHOR
NO. NO. REVISION

July 25, 2024 00 01-04 First Issue Roseann R. Alfonso

Prepared by: Approved by:

Roseann R. Alfonso Alfredo T. Briones, Jr.

Quality Assurance Chairperson
Signature over Printed Name/Date Signature over Printed Name/Date

1. Objective
DISTRIBUTION: DCC(ORIGINAL), DDC (PHOTOCOPY)
IMPORTANT:
Any proposed change in this document must be coursed through the author of the document and approved by the
appropriate signatories with the use of a Document Change Notice (DCN).
This information is CONFIDENTIAL and disclosure is prohibited without written authorization from Tropical Agriculture
Cooperative.
The Document Control Custodian is solely authorized to reproduce and distribute copies of this document.
 Document No.:
Page 2 of 4
SMD-P-001
BAD ORDER POLICY Effective Date: Revision No.
TROPICAL AGRICULTURE
COOPERATIVE
July 25, 2024 00

1.1 To establish a policy regarding the process of return of rejected Finished Goods.
1.2 To demonstrate efficient handling of product return request.

2. Field of Application
2.1 This policy details the product concern/issue, type of product rejection and
it’s corresponding policy.

3. Definition of Terms
3.1 Bad Order (BO) - product or goods with product quality concern or issue; rejected
by the customers or consumers.
3.2 Finished Goods/Finished Products - goods that have completed the
manufacturing process but have not yet been sold or distributed to the end user.
3.3 Soon To Expire (SOTEX) - product with nearly expired condition or soon to reach
its consume before date.
3.4 Outright Rejection - direct or immediate rejected; rejected by customer upon
delivery.
3.5 Pull Out Rejection - withdrawal of specific product or goods with defect

4. Policy and Purpose

Tropical Agriculture Cooperative ensure that serving safe food to consumers is the
responsibility of the food and beverages industry. It helps to protect consumers from
the risk of food-borne illnesses and allergic reactions. It is financially important for the
food and beverage business as it reduces the product recalls which result in financial
losses.

It also helps to avoid losses due to rejected products, possible lawsuits, and business
closure by the authorities for non-compliance with rules. And, it is needless to say
that food handling is the essential part of all these processes which also builds a
reputation for the business among customers.

Tropical Agriculture Cooperative Bad Order Policy outlines our rules for handling,
receiving and pull out bad orders from our customers and consumers up to our plant
premises. Items sold/delivered shall be accepted for return or replacement within a
period of thirty (90) days reckoned from the date of receipt of the item/s, subject to
the following conditions:

Table 1. Policy on Product Issue or Concern

Product Issue/Concern Type of Rejection Policy
1. Physical Appearance Outright Full Refund or
Defect Replacement of the item*
DISTRIBUTION: DCC(ORIGINAL), DDC (PHOTOCOPY)
IMPORTANT:
Any proposed change in this document must be coursed through the author of the document and approved by the
appropriate signatories with the use of a Document Change Notice (DCN).
This information is CONFIDENTIAL and disclosure is prohibited without written authorization from Tropical Agriculture
Cooperative.
The Document Control Custodian is solely authorized to reproduce and distribute copies of this document.
 Document No.:
Page 3 of 4
SMD-P-001
BAD ORDER POLICY Effective Date: Revision No.
TROPICAL AGRICULTURE
COOPERATIVE
July 25, 2024 00

2. Physical Appearance Pull Out Full Refund or

Defect Replacement of the item*
and will depend on the set
monthly BO allowance.**
3. With lacking number of Outright Full Refund or
bottles per case Replacement of the item*
4. With lacking number of Pull Out Full Refund or
bottles per case Replacement of the item*
and will depend on the set
monthly BO allowance.**
5. Product Quality Issue Outright Full Refund or
Replacement of the item*
6. Product Quality Issue Pull Out Full Refund or
Replacement of the item*
and will depend on the set
monthly BO allowance if
there will be lapses in
product handling and
storage by the customer or
consumer.
7. Product with Soon to Outright Full Refund or
Expire (SOTEX)/nearly Replacement of the item*
expired Condition
8. Product with Soon to Pull Out Replacement of the item*
Expire (SOTEX)/nearly and will depend on the set
expired Condition monthly BO allowance**

*Dependent upon product return assessment/evaluation.

** Set Bad Order (BO) allowance is 5% of the monthly total booked orders.

5. Policy Guidelines

Tropical Agriculture Cooperative Bad Order Policy guidelines are as follows:

1. Established Bad Order (BO) allowance for our customers and distributors is
5% of the total monthly booked order.
2. Set BO allowance shall be the basis of the company in the replacement of the
products or goods considering the product issue/defect is valid or invalid.
3. Proper product handling and storage shall be discussed with the distributor,
customer and consumer prior the implementation of policy.
4. Valid reason for the specific product defect will have the full replacement or
full refund which ever the agreement of the Salesman and the customer.
5. Invalid reason for the product issue/defect shall have a replacement however
quantity to be replaced will be based on the 5% of the total monthly BO
allowance.
6. Outright rejected goods or products with any possible product defect or issue
shall have full refund or replacement of the item.

DISTRIBUTION: DCC(ORIGINAL), DDC (PHOTOCOPY)

IMPORTANT:
Any proposed change in this document must be coursed through the author of the document and approved by the
appropriate signatories with the use of a Document Change Notice (DCN).
This information is CONFIDENTIAL and disclosure is prohibited without written authorization from Tropical Agriculture
Cooperative.
The Document Control Custodian is solely authorized to reproduce and distribute copies of this document.
 Document No.:
Page 4 of 4
SMD-P-001
BAD ORDER POLICY Effective Date: Revision No.
TROPICAL AGRICULTURE
COOPERATIVE
July 25, 2024 00

7. Pull out goods or products with product issue or defect that is considered valid
shall be shall have full refund or replacement of the item.
8. Pull Out goods with product issue or defect caused by the negligence of the
customer or distributor will be replaced based on the computed 5% bad order
allowance of the total monthly booked orders.
9. Product/goods with issue or defect shall be monitored and reported to
Salesman.
10. Salesman is responsible for the product pull out while for the product outright
rejection is care of the logistics or delivery team.

DISTRIBUTION: DCC(ORIGINAL), DDC (PHOTOCOPY)

IMPORTANT:
Any proposed change in this document must be coursed through the author of the document and approved by the
appropriate signatories with the use of a Document Change Notice (DCN).
This information is CONFIDENTIAL and disclosure is prohibited without written authorization from Tropical Agriculture
Cooperative.
The Document Control Custodian is solely authorized to reproduce and distribute copies of this document.