Customer Support Policy

and Procedure Manual

LiuGong Authorized Dealer
Asia Pacific Region
Issued on Jan 1, 2012

Liugong Machinery Asia Pacific Pte Ltd

No 7 Tuas Loop, Singapore 7

Tel+65 6686 3566 Fax +65 6686 3522

1.

Customer Support Policy

1.1 Parts Policy
1.2 Service Policy
1.3 Brand Loyalty

2.

Warranty
2.1 Administering Warranty
2.2 Administration of Machine Warranty
2.3 Spare parts warranty coverage
2.4 Rework project Campaigns
2.5 Claim & reimbursement process
2.6 Supporting Machine not sold by the servicing dealer
2.7 Sales & Service territory protection policy
2.8 LiuGong Asia Pacific warranty audit guideline

3.

LiuGong dealer Service Operation procedure

3.1 LiuGong dealer responsibilities
3.2 Receiving & shipping inspection
3.3 Stock Maintenance program Service & inspection
3.4 Pre delivery inspection program
3.5 Machine delivery & registration
3.6 Failed components management system & inspection
3.7 Mandatory servicing program
3.8 Filling up the warranty claim form
3.9 Incidents or accident report form

4.

Engine warranty policy

4.1 Warranty policy Cummins engine
4.2 Warranty policy Weichai Engine
4.3 Warranty policy Yanmar Engine
4.4 Warranty policy Isuzu Engine

General Part Policy

5.1 Parts purchasing management
5.2 Order type classification
5.3 New dealer initial stock order
5.4 Part order entry requirements
5.5 Pricing: Manufacturer suggested list price (MSRP)(MSRP)
5.6 Shipping methods
5.7 Payment terms
5.8 Parts discrepancy report

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Customer Support Policy 20120101

Training policy
6.1 Training request types
6.2 Definition of mechanic certified level.

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Preface
The following policy is written to clarify LiuGongs overseas service, parts, warranty,
training terms and conditions for its dealer network. It is our goal to continuously
improve the level of support for our dealers and end users. The following document
describes the expected performance and operating procedures for both LiuGong and
its dealers. This policy is effective 1st Jan, 2012 and supersedes all previous service
policy announcements

201211.
This Policy is only for internal use within LiuGong CE AP (including independent
dealers within the LiuGong CE AP dealership), and may not be copied or distributed
outside LiuGong CE AP. LiuGong CE AP reserves the right to change the LiuGong
CE Asia Pacific Customer Support Policy at any time and from time to time. The
LiuGong CE Asia Pacific Policy contained in this document is applicable to all
LiuGong CE AP dealers and their approved sub-dealers in Asia Pacific regions.

This policy is intended as a means of communicating the implementation of LiuGong

Customer Support policy and procedure manual.

LiuGong CE Asia Pacific

]x{ jz
Please contact us using the following information.

E-mail: lgap.service@liugong.com (Service support)

E-mail: lgaplogistics@liugong.com (Logistic support)
Phone: +65 6686 3566
Fax:

+65 6686 3522

Time: Available from 8:00 am to 5:00 pm Monday to Friday (UTC+8) except

for LiuGong designated holidays.
8:30-5:30

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1. Customer Support Policy

Customer Support has evolved as a fundamental and on-going shift in emphasis for
the aftermarket in the construction equipment industry. It is one of the key buying
factors for customers. Providing consistent Customer Support, parts, service and
training are of increasing importance for both LiuGong Construction Equipment and
our dealers. It helps to ensure mutual success and profitability of our future business.

To support the dealers' smooth and efficient flow of Customer Support activities, the
Customer Support Policy and Manual was developed. The manual contains an
overview of the current parts and service procedures, support policies and marketing
tools relevant to LiuGong Construction Equipment and its dealers. It is a practical
quick look up guide and should be utilize regularly, as a valuable source of Customer
Support information, available at your fingertips.

Updates and changes will be communicated to you throughout the year as new
programs, standards and policies are developed

1.1 Parts Policy

Parts, remanufactured components and accessories must be manufactured to meet
the quality as embedded in the LiuGong standard and specifications. It is therefore
our common task throughout the LiuGong organization to ensure that only LiuGong
genuine -, parts, remanufactured components and optional equipment are used for
all maintenance and repair work on LiuGong construction equipment.

It is also essential, through active marketing, to create and care for all sales
opportunities and to utilize the centrally developed market support activities, such as
information systems, training activities, advertising and sales promotional activities,
and to support locally produced activities of similar nature. In this way we can
actively meet up to customer requirements and expectations and thus build up a
solid foundation for future LiuGong Construction Equipment sales.

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1.2 Service Policy

The Dealer is responsible for organizing an adequate technical support for the
machine population in the area of his responsibility. This includes the correct number
of well-trained service mechanics as well as a program of ongoing training and
improvement.

LiuGong CE Customer Support will provide technical support (help desk) function as
a backup to Dealers. LGAP

1.3 Brand Loyalty

Sales of parts, remanufactured components and accessories are of great economic
significance to the dealer and LiuGong Construction Equipment. LiuGong CE
distributes all LiuGong genuine parts, remanufactured components and accessories
through authorizedLiuGong Construction Equipment outlets and in return, expects
that authorized outlets are loyal to LiuGong. Dealers shall, subject to mandatory
legislation, only buy LiuGong genuine parts, remanufactured components and
accessories.

2. Warranty
What is a warranty? The LiuGong warranty is LiuGong commitment to protect
customers from defects in either material or workmanship during a specified period
of time or product usage. Through its machine delivery report, which is signed
between the LiuGong authorised dealers representative and the customers
representative at the time of deliver, LiuGong sets out its binding commitments and
limitations with respect to the product.

LiuGong warrants their products 100% free from defects, in material or workmanship.
When a component fails within the stated period due to defective material or

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workmanships, LiuGong or its dealership will repair or supply a new component at no

charge to the customer. A warranty repair returns the product to its correct operating
condition, just prior to the failure, thus restoring its intended value. This involves
either repairing or, if necessary, replacing the defective parts.
100%

100%

A defective part is the LiuGong part that caused the failure.

Incidental and consequential damages are excluded
Incidental damage is best described as any damage to property resulting from the
failure.
Consequential damage is best described as other damage, notably loss of profit or
use, as a consequence of the failure.

2.1 Administering Warranty

The dealers service department is responsible for administering warranty. This will
include:
performing failure analysis;
determining if the failure is covered by warranty, and if so, what expenses are
covered;
determining the most economical method of repair;
settling the repair cost with the customer;
Submitting a warranty reimbursement claim to LiuGong after the customer
settlement and repair completion, with proof that the failure was the result of a
defect in material or workmanship.

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Dealers administer warranty because they have all the relevant facts about the
failure. These include:
the parts involved in the failure;
the products service history;
failure analysis data;
repair documentation;
previous failure information;
the customer and the application;
the product operating conditions;
the customers operating and maintenance practices.

Through administering warranty, the dealer will be viewed by the customer as the
one who makes all decisions associated with the repair.

2.1.1 Technical Assistance with Warranty Decision

When a dealerships service department encounters a difficult technical problem and
suspects a warranty situation exists, they can contact LiuGong and discuss the facts
as they know them in the particular case. The dealer service department should do
this only after ascertained the cause of failure to the best of their ability. LiuGong
personnel will then confirm or question the opinion on the cause of failure based on
the dealership's account of the situation. Reimbursement for a warranty claim will be
made only after LiuGong personnel are satisfied that LiuGong was at fault. Service
department, however, should not delay settlement of the warranty claim because
they are waiting to be reimbursed by LiuGong. Once the service department has
received the technical assistance requested, there should be no reason for further
delay; and the dealer should promptly settle the case with the customer. In special
circumstances, authorized LiuGong personnel will counsel with dealer service
department on warranty decisions and make written commitments prior to the
submission of the warranty claim. A copy of the commitment must be communicated
to LiuGong technical support department in order for the commitment to be honored.

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2.1.2 Pre-Delivery inspection and Warranty Repairs

It is LiuGongs intention to supply dealers new equipment with a quality standard

that should permit, after minor check-ups, direct delivery to customers. Experience
has shown that this objective could not always be attained for various reasons
(transport, storage, final quality control, etc.).

It is also LiuGongs commitment that customers are entitled to receive new

equipment complete and free from defects. Therefore, LiuGong requests dealers to
provide a final check-up and complete the pre-delivery inspection form as well as to
make any minor adjustments required prior to delivery of the equipment to the
customer. Normally these check-ups and adjustments, which include checks for
proper equipment operation, completeness, fluid levels, tire pressure, literature, etc.,
are considered as standard dealer new machine preparations and are therefore not
under warranty.

PDI

If incidents are encountered that cannot be classified as a portion of normal Predelivery activity, but rather correspond to a REPAIR, dealers are requested to
proceed with such repairs, before the machine is handed over to the customer. In
such cases, and considering the fact that the equipment has not yet been delivered,
LiuGong will accept Pre-delivery claims, including the labor required to correct the
incident, if the following conditions are met:

Machine hours are lower to 150.

Labor should be claim as per Time Guide
Work Order opening date is before the Delivery date - please specify the
Work Order (W/O) opening date in the claims comments.
150

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2.1.3 Warranty Start Date / Delivery Date

/

Warranty becomes effective on the date the machine is delivered to the first user, or
starts initial substantial use, whichever occurs first. The delivery date is considered
the date, new equipment is physically transported from the dealers place of
business to the users place of business or job site, for the purpose of putting it into
production service. This date also applies to equipment in dealer rental or lease
programs.

When equipment is unloaded at the users business or job site, the warranty period
begins and the dealer must complete a warranty registration form. The date entered
on the form is the warranty start date and must be used on all subsequent service
claims. Once a delivery date (warranty start date) has been established, warranty will
continue without interruption for the duration of the warranty period.

2.2 Administration of Machine Warranty

Machine Warranty Period

Standard Warranty: LiuGong provides limited warranty machine coverage for 1 year
or 2000 hours, or 18 months from the date of shipment from the originating factory,
whichever occurs first.
1200018

Coverage Details: Please refer to the limited warranty certificate terms and
conditions. A copy of the standard warranty certificate can be found at the back of
this manual.

Coverage beyond the Standard Warranty: Other terms beyond the standard warranty
period may be in accordance with the regional sales policy or region. However, all
alterations to the standard limited warranty must be reported and pre-approved by
the LiuGong Overseas Sales & Marketing Division. Please contact
professional@LiuGong.com.

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professional@liugong.com

2.2.1 Warranty Guidelines

IMPORTANT: The Dealer must repair the machine, order any needed parts not in
the dealers stock and then submit a claim for reimbursement after the repair is
completed to LiuGong.

LiuGong provides a limited warranty for all machines against defects in material and
workmanship under the following guidelines.

One related failure per claim - Only one (1) related failure per warranty claim
application is allowed. This provides the means for accurate failure analysis.

Submit within 30 Days from Repair Date - The warranty claim application must be
submitted and received at LiuGong within thirty (30) days of the repair date. Any
claims submitted outside of this 30-day limit may be non-allowed as untimely. The
ability for LiuGong and its suppliers to make timely product improvements is
dependent upon receiving timely information from the field. 30
3030

Recording Major Component Serial Numbers - All failures regarding major

component failures should contain the model and the serial number of the failed
component. Examples of Major component items are Transmissions, Axles,
hydraulic pump, swing motor and swing reduction unit, control valve, cylinders, travel
motor, reduction unit and engine assembly.

Recording Exchanged Component Serial Numbers - If any major component item is

exchanged, the old component serial number and the new component serial number
must be included on the warranty claim application.

Resubmitting Warranty Claims Any rejected claim application may be re-submitted

to the LiuGong Warranty Department within thirty (30) days after the claim settled
date. Any re-submittal, submitted after thirty (30) days, will be rejected as an
untimely re-submittal unless a satisfactory explanation is supplied.
3030

Sales Demo Units - Any service hours accumulated during a demonstration will
apply toward the total warranty hours of the machine warranty. Thus, a machine that
had 150 hours of demonstration time would have 1,850 hours remaining, though it
would have 12 months from the delivery date.
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15012
1850
2.2.2 Non-Warrantable Repairs
The application for LiuGong products must be strictly in accordance with the specific
provisions of the operation and maintenance manual. The following matters are not
covered under LiuGong warranty terms and conditions.

The cost of repairing, loss like debt, profits, credit, financial caused by
machines downtime or other loss arising.

Lack of maintenance, including, without limitation: failure to inspect and

maintain in accordance with LiuGongs published schedules, improper repair,
and the use of non-LiuGong parts not approved by LiuGong.

Abuse, including, without limitation: neglect, improper operation,

misapplication, overloading, accident or alterations not approved by LiuGong.

Force of nature such as earthquake, flood or any other man-made damage or

failure.

LiuGong reserves the right to make changes in the design of its machines
without being obligated to make corresponding changes in previously
manufactured machines.

The unauthorized alteration of machine differing from original factory setting,

whatever for any reason.

Failing to submit the PDI Form and Warranty Registration Form within 30
days from delivery to the customer.

30PDI

Warranty claim form does not meet the minimum requirements.

LiuGong does not compensate for no LiuGong genuine replacement parts or

parts replaced unnecessary due to misjudgment of the Dealers service
technician.
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Customer Support Policy 20120101

Damage caused in transit. When taking delivery of the machine and

determining damage is caused by the quality of packaging or transit. Dealer
must seek assistance according to the Equipment Arrival and Takeover Flow
(includes inspection and damage claim process) Policy

Damage caused by or attributed to storage, transit, or rust and corrosion.

Failure to properly follow storage procedures, keep machine clean and free of
damage caused by improper operation, application, maintenance, or repairs.

2.2.3 Non Warrantable Conditions or Parts

LiuGong warranty does not cover any type of (i) ordinary service and maintenance,
(ii) normal use of consumables parts and (iii) normal wear and tear.
This warranty does not cover equipment/ parts, superstructure or other installation
work not assembled/installed by LiuGong.
(i)ii
iii
Furthermore, this warranty does not cover additional costs due to equipment/ parts,
superstructure or other installation work being assembled/installed by someone else
than LiuGong, which renders the warranty work more difficult or prevents the
warranty from being performed.

LiuGong Standard Limited Warranty also excludes the following:

1. Batteries, lamp bulbs, fuses, gaskets and packing, belts, bucket teeth, filter
elements, grease fittings, rubber tracks, wire rope, brake linings, wiper blades, orings, fuel injectors/nozzles, and other consumables.
2. Engines when warranted by the other manufacturer.
3. Replenishing oils and/or lubricants unless due to warranty repair.
4. Transportation, loaner or rental costs.
5. Attachments and motive battery chargers not manufactured by either LiuGong or
any of its subsidiaries, provided however, LiuGong extends to the customer the
benefits of any warranties (if any) of the manufacturers or suppliers of any of the
excluded items.
1.

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2.
3.
4.
5.

Component Suppliers that handle and honor their own warranty separately from
LiuGongs machine warranty in some regions i.e; Cummins, Weichai, Yanmar, Isuzu
Engines, Cascade attachments, etc. The foregoing warranty is exclusive and in lieu
of all other warranties whether written, oral, or implied. This includes any warranty of
merchantability or fitness for purpose

Operation of the equipment beyond its rated capacity or designed application will
void all warranty terms.

The use of non-genuine LiuGong branded replacement parts.

No employee or representative is authorized to change this warranty in any way or

grant any other warranty without written authorization from a member of LiuGong
executive management

LiuGong makes no representations or warranties other than those expressly set forth
above and LiuGong disclaims any implied warranties of any kind, including without
limitation quality, performance, merchantability or fitness for a particular purpose.
Consequently, except for as specific provided in this warranty, LiuGong disclaims
any liability for direct and indirect losses, costs or damage which may result from
defects in material or faulty workmanship.

This warranty superseding all prior issued warranty terms and conditions.

LiuGong CE AP reimburses Dealers for all warrantable repair jobs at an agreed

labour cost and parts at dealer net plus markup. All others are considered as market
related costs. Dealers are responsible for such costs.

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Example of factors with respect to market related costs:

Improper operation
Sold equipment not meant for intended application
Poor maintenance
Travel cost
Travel accommodation
Overtime
Transport costs
Policy and goodwill
Local sales tax
Local administration cost
Non-genuine LiuGong parts uses on machines
Rental of equipment and
Rental of lifting equipment












2.2.4 Repair versus Replacement Warranty Coverage:

LiuGong will reimburse the Dealer on a warranty claim application to repair a failed
component rather than to replace the component assembly if the cost of the repair is
less than 70% of the assembly replacement cost.

70%
The dealer must always make the most economical repair. LiuGong reserves the
right to only warranty the most economical repair or replacement part.

If the most economical repair cannot be made or if no sub-level replacement part is

available, LiuGong Headquarters or Regional office representative must provide
authorization in writing prior to repair.

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2.3 Spare Parts Warranty Coverage:

LiuGong warrants genuine LiuGong new parts and componentssold through the
LiuGong Dealer service network or regional PDC to be free of defect in material or
workmanship for a period of 6 months from installation on the machine with unlimited
hours or from the point of purchase from the authorized LiuGong dealerships with
purchase invoice as supporting document.
Filing a Warranty Claim form: Please submit a warranty claim request with adequate
justification to LiuGong through the standard warranty process.

Limitations of Liability
LiuGong shall not be liable for:
1. Any costs or expenses connected with repairs made by other than a LiuGong
authorized Dealer.

2. Any damages caused by the use of other than genuine Liugong replacement
parts sold through the LiuGong service network.

3. Any loss or damage sustained or caused by the improper use of the machine.

4. Any loss or damage sustained or caused by accidents resulting from human

error or nature.

5. Any loss or damage sustained as a result of sabotage, vandalism, or theft.

6. Any loss or damage sustained or caused by failure to maintain the machine,

part or component in accordance with established maintenance procedures.

7. Any part or component installed on a machine not sold by LiuGong. This

includes machines not manufactured by LiuGong.

8. Any modification of parts and design not authorized by LiuGong

Items not covered by warranty

1. Electrical parts, batteries, lamp bulbs, fuses, gaskets and packing, belts,
bucket teeth, filter elements, grease fittings, rubber tracks, wire rope, brake
linings, wiper blades, o-rings, fuel injectors/nozzles, and other consumables.

O
2. Engines when warranted by the manufacturer.
3. Replenishing oils and/or lubricants.

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4. Transportation, onloan or rental costs.

5. Attachments not manufactured by either LiuGong or any of its subsidiaries,
provided however, LiuGong extends to the customer the benefits of any
warranties (if any) of the manufacturers or suppliers of any of the excluded
items.

6. Component Suppliers that handle and honour their own warranty separately
from LiuGongs machine warranty in some regions i.e; Cummins, Weichai,
Yanmar, Isuzu Engines, perkins,Cascade attachments, etc. The foregoing
warranty is exclusive and in lieu of all other warranties whether written, oral,
or implied. This includes any warranty of merchantability or fitness for
purpose.

7. Operation of the equipment beyond its rated capacity or designed application

will void all warranty terms.

8. The use of non-genuine Liugong branded replacement parts.

9. No employee or representative is authorized to change this warranty in any

way or grant any other warranty without written authorization from a member
of Liugong executive management.

10. Travel time and Freight charges from dealer to customer are not warrantable
under this policy and procedure.

2.4 Re-Work Project Campaigns:

It may be necessary from time to time for LiuGong to advise by letter or Service Alert
that a specific part or parts of LiuGong Equipment require modification. The request
for a campaign may be made regardless of whether the need for taking such action
has become evident in such equipment.

Guidelines: Campaigns should be performed within the limitations set on the Service
Alert letter (i.e., dates and labor limitations). And some related cost who should
afford also performed according to the service bulletin. Should difficulties be
encountered that prevent the campaign from being performed within the set
limitations the Dealer should contact LiuGong immediately for further instructions.

Compliance: Failure to perform announced campaigns may result in a partial or

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complete void of warranty. Failure under warranty for items may have been
prevented if the campaign had been performed. Failure to perform the campaign in a
timely manner contributed to the failure will not be honored if the failure occurred
after the announced completion date. Additionally, no Goodwill Policy Adjustment will
be considered under such circumstances. LiuGong reserves the right to deny a
warranty adjustment on any machine involved in a campaign whereby the campaign
has not been performed and that could have been performed at the time of the
service repair.

2.5 Claim and Reimbursement Process

IMPORTANT: The Dealer must repair the machine, order any needed parts not in
the dealers stock and then submit a claim for reimbursement after the repair is
completed to LiuGong into the LiuGong LCS warranty system.

LCS
The standard warranty coverage includes providing reimbursement for replacement
parts at no charge. LiuGong will reimburse the Dealer for the cost of genuine parts,
approved labor hour rates, & approved travel mileage considered to be covered in
accordance with the LiuGong warranty terms and conditions. The parts
reimbursement rate is established based on the dealer net at the time of order and
multiplied by markup rate to cover any inbound freight or duty costs by the dealer.

All approved warranty claims will be reimbursed through LiuGong AP region office.
LiuGong AP will provide a monthly credit summary report to the dealer.Dealer must
sign the monthly credit summary report and service contract then return them to
LiuGong AP lgapservice@LiuGong.com along with an invoice from the dealer. The
cutoff date for every month warranty reimbursement computation will be 25th of every
month. Issue of credit information will be 30th of every month except if it is fall on
non-business day.

lgapservice@LiuGong.com
2530

All replacement parts claimed for warranty reimbursement to LiuGong must be

purchased from LiuGong Asia Pacific (PDC). Should a dealer have a need to
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purchase non-LiuGong O.E.M parts for warranty repairs, the dealer must obtain preapproval in writing.

2.6 Supporting Machines not sold by the Servicing Dealer

From time to time machines may be transferred by the customer outside of the
Dealers assigned LiuGong territory. It is the responsibility of all LiuGong Dealers to
provide service support to all LiuGong brands regardless rather the machine was
sold by the servicing Dealer.

In some cases, LiuGong has developed relationships directly with large Key
Accounts that may have equipment working in more than one Dealers territory.
Dealers must participate in the sales process for Key Accounts in their territory.
Dealers will develop local relationships with the divisions of the key customers in
their territory as well as Key Account leadership as appropriate. The following
guidelines apply:

LiuGong Dealers will perform the pre-delivery work on machines in their area, deliver
the machine, register the warranty of the machine as well as perform warranty
repairs.

Dealers incentives for supporting such Key Accounts will vary by Dealer, region, and
account. Please refer to LiuGong Sales Policy Manual for additional information.

Warranty Repairs: (Non-Dealer Sale)

1. When filing a warranty claim, the claim form must be marked as Non-Dealer Sale.

2. Warranty claims for units not sold by the servicing dealer will be reimbursed to
include labor, and mileage at the dealers current customer charge out rate and
replacement parts at an increased reimbursement rate. All other standard guidelines
defined in this manual apply.

Labor Hours: Paid at Dealers Customer Charge out Rate

Mileage: Paid at Dealers Customer Charge out Rate (Max. 200Km)*
Parts: At Dealers net Price

200

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*Mileage is to be calculated from the Dealers closest shop facility to the repair not to exceed 200
KM.

200km

2.7 Sales & Service Territory Protection Policy

1. Dealers are granted an authorized sales territory in their dealer contract with
LiuGong. The dealer contract takes precedence over other documents and
conversations in defining a dealers territory.

2. No dealer is entitled to any commission on sales to customers in territories not

specifically listed in their dealer contracts.

3. To determine the geographic address of a customer for the purpose of this

document, the following decision logic will be used:

a. Physical address of the customers place of business is the first consideration.

b. If a customer has many locations, the physical address where the machines will
be delivered to and used is the second determination. This means that even if a
customer buys all the machines in a central office and has them delivered to various
locations; the location where the machine is delivered and used is considered the
location for purpose of determining whether a commission is due to a dealer.

c. For customers with multiple locations the dealer who is responsible for the territory
of each location is responsible to deliver, provide parts and service support for the
machine. If a dealer sells a machine out of their territory the dealer is not authorized
to sell parts for or do service work on the machine sold out of territory.

4. When a customer buys a machine from a LiuGong Dealer and the customer takes
delivery in one territory and moves it to another territory, no commission is due to the
dealer in the second territory.

5. There are no territory limitations for selling or owning used machines. For the
purpose of this document, a machine is considered used if it is more than 1 year old
(from the time of warranty registration) and has more than 2000 hours when owned
by the original purchaser.
2000

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For key account sales by LiuGong directly to customers, the price provided to the
customer and the commission paid to the dealer(s) involved will be reviewed
between LiuGong and the affected dealers prior to submission of the pricing to the
customer. Discounts provided to the customer will be shared by LiuGong and the
dealer(s) as required to get business. It is expected that LiuGong and LiuGong
dealers will work together to maximize returns to both parties as we collaborate on
Key Account sales.

It is expected that dealers will collaborate on sales across their territories in order to
minimize conflict. When dealer A is working with a customer who wants to purchase
a machine out of territory, dealer A should expect to pay the commission to dealer B
and inform dealer B of the situation prior to concluding the sale.
A
AB

When a dealer suspects that a machine in his territory has been sold into his area
improperly, the dealer should get a photograph of the machine, number of hours on
the machine, and the serial number and send it to their LiuGong Regional Sales
Manager with a summary of his concerns about the machine. The dealer receiving
the complaint will explain the background of the machine to the first dealer and
LiuGong. Once the applicability of commission is determined according to the rules
above, the dealer whose territory has been violated may invoice the invading dealer
for the appropriate commission.

2.8 LiuGong Asia Pacific warranty audit guideline

Warranty audits are carried out to ensure warranty processes and policies are
observed during operations at both the dealer and LiuGong AP. The basic objective
is to ensure that the Dealers warranty claims are made in accordance to LiuGong
CE AP guidelines. LiuGong CE reserves the right to debit Dealers for approved
claims with incorrect or incomplete information and violation of LiuGong CEs
warranty policy.

LGAP

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Definition: An examination of both dealers and LiuGong warrantys operations, to

ensure effectiveness and compliance with LiuGong HQ Audit requirements.
Warranty audit is conducted in the following formats: Onsite warranty audit and
remote warranty audit.

Objectives: Further to the defined mission of warranty audit as outlined in the

definition, objectives of warranty audit become manifold. What we want to achieve
are:

To ensure that LiuGong warranty requirements are met and standards are
maintained.

To ensure LiuGong Warranty dollars are paid correctly

To monitor the accuracy of claim information furnished by dealers.

To gain knowledge of dealers warranty practices and philosophy.

To get acquainted with dealers service and warranty operations.

To help dealers introduce better management on warranty expenses.

To help dealers with warranty administration and system problems.

To ensure the failed components management system are complete

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3.0 LiuGong dealer service operation procedure

3.1 LiuGong Dealer Responsibilities

Establish a service system capable of responding promptly to the customers request.
Offer quality repair service, preventative maintenance, and other product support
programs to the LiuGong customer.

Service Engineers and Technicians should attend LiuGong training courses to

become an authorized LiuGong Service provider.

According to LiuGong recommend parts list, The Dealer must stock the
recommended spare parts for the LiuGong products in their given market.

Dealer must promote OEM replacement parts through the sale of genuine LiuGong
branded parts. The Dealer should make every effort to keep LiuGong aware of
significant market influence with competitor activities, newly introduced technology,
and or customer needs.

Advise the customer of proper equipment operation, maintenance and repair

procedures.
Provide prompt service, repair to any LiuGong branded product. Regardless if sold
by the servicing dealer.

Make investments to develop and continuously improve the dealers field and shop
service capability. LiuGong will in turn reward those dealers through various
promotions and pre-approved good will policy assistance.

3.2 Receiving and Shipping Inspection (Arrival inspection form)

In order to improve the feedback as well as to maintain a high standard of machine

receiving quality, the dealer is required to inspect the machine upon receipt from the
LiuGong factory. The receiving inspection must be conducted by the Dealer
immediately. Arrival inspection form is required to be complete for each of the
receiving machine. A shipping report document can be found on the machine which
will identify all equipment, attachments and accessories ordered. If something is
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found to be missing or damaged please contact the LiuGong AP service mail box.

LGAP

3.3 Stock Maintenance Program - Service & Inspection (Stock

maintenance form)
Dealers have the responsibility to properly store and maintain all machines. Dealer
needs to inspect all storage machines every 30 days as per the instructions below.
Failures resulting from improper storage, inspection procedures or problems caused
by long storage periods resulting in normal deterioration from aging will not be
covered by warranty.
30

Instructions:

Machines must be placed and stored on level and solid ground. Machine
should be either covered or periodically cleaned/lubricated and rustpreventive measures taken to prevent deterioration from environmental
exposure.

Prior to operations, it will be necessary to inspect fluids then start and run the
machine to circulate the fluids through the systems and verify correct machine
functions.

As indicated in the operation and maintenance manual, all work equipment

and attachments of machines must be rested on the ground. Please refer to
the operation and maintenance manual for instructions.

Inspect all oil levels to ensure the correct amount of fluid. Additionally, lube oil
should be checked for pollutants with water or other contaminants.

The engine must be checked for starting condition. The engine should be
operated at least 15 minutes or until normal operating temperature is reached.
15

Inspect the electrical system, display and indicator lights.

Check every function of machines, such as lift arm, bucket, steering, brake,
etc.

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System must be checked for leaks. Carefully inspect all hydraulic hoses, drive
belts and other soft parts for signs of deterioration and replace as necessary.

Completely fill fuel tank with fresh clean fuel to aid in preventing condensation
of moisture inside the fuel tank. The use of an anti-algae additive in the fuel
tank is required.

For machines to be stored over 90 days. Rust-preventative action must be

taken on main exposed parts or components if a possibility exist of rusting
during long term storage, i.e., hydraulic piston rod, etc. 90

3.4 Pre-delivery Inspection (PDI form)

PDI is an important process and ensure the machines are in good condition before
delivery to the customer. Upon the final stage of storage, the following procedure
shall be performed by the Dealer, at the Dealers expense on machines to be
delivered in order to confirm their quality and to eliminate any failures during the
initial operation period after delivery. PDI

Procedure: Dealer should check the machines following the instructions as per the
Pre-Delivery form before the machines are delivered to the customer. Please print a
blank form to be filled out by the service technician in advance.

Timeframe: Pre-delivery Inspections should be completed prior to delivery to the end

user or delivery into the Distributers rental fleet. Dealer must complete the form and
filed within the machine record file for future LiuGong inspection.
PDI

3.5 Machine Delivery and Registration (Warranty registration form &

warranty statement)
At the time of delivery to the end user, the owner and operator are to be instructed
by the Dealer personnel on the proper operation, maintenance, lubrication, safety
precautions, and actions to be taken in the event of a failure. The Dealer must
ensure the customer fully understands every feature of the machine, including safety,
as well as what is covered by the warranty. This service inspection will be at the
Dealers expense.

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Filing Registration: Dealer must fill a Warranty Registration Form together with the
machine warranty statement in which both form must be signed by the end user to
be valid and these forms are require to be filed in the Machine record file within the
dealers service department for future inspection from the day the unit was put into
service as well as to upload into LCS as supporting documents.

LCS
Completing Registration: The Dealers servicemen must prepare the Warranty
Registration Report & Machine Warranty statement recording the exact delivery date,
which must be signed by the customer and or his representative

A copy of warranty Registration& the machine warranty statement must be given to

the customer.

Warranty Requirement: The completion of the Pre-Delivery Inspection and Warranty

Registration will be a requirement for fulfilling any limited warranty obligations.
Warranty coverage will not be honored for any incomplete form and all warranty
claims in related to the said machine will be penalized.

3.6Failed Component management system and inspection

A complete system should be in place to cover each aspect of the process from book
keeping, failed components storage and location, to retrieval and disposal. A
warranty claim register (log book) should be kept inside the failed components
storage room.

All parts should be adequately identified with warranty claim number, product serial
number, product model number, claim repair date, work order number, customer
name, location and parts causing failure.

Light & small failed components should be well protected (keep out of moisture) &
stored inside a carton box. Light & small failed components should be systematically
stored at multi-level storage racks in a dry and clean room.

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Dealer must retain the failure parts for a minimum of six months and must be
properly tag on each of the failed components from the date of replacement or until
LiuGong advises of an alternate disposition. Once either occurs, the Dealer may
dispose of them. 6

The dealer must keep all applicable records regarding the disposition each failed
part. LiuGong reserves the right to audit the failed parts records and inspect failed
parts at its discretion. Additionally, LiuGong will require the dealer to return some
parts back to LGAP if necessary for quality improvement or components audit
inspection. All parts return request freight charges will be borne by LGAP.
In cases that the return failed parts are found to be in good order with no possible
failure or due to external impact that cause the damage, warranty claim for the said
failed parts will be debited from the dealership.

LGAP

Types of forms to be use (Scrapped failed parts form, failed components tag)

3.7 Mandatory servicing program (Product Mandatory servicing form)

Customer support has evolved as a fundamental and ongoing shift in emphasis for
the aftermarket in the construction equipment industry. It is one of the key buying
factors for the customers. Providing consistent Customer support, parts, service and
training are of increasing importance for LiuGong and its dealerships. And with the
focus to increase the after sales commitment to the end-user in term of after sales
care, quality improvement as well as real time support.

Mandatory servicing program are introduced. As after sales support is very important
for us in order to develop our branding and improve our machine quality and support.
This mandatory preventive maintenance will also improve the machine uptime for the
customer and reduce warranty cost. LiuGong will support the dealers in providing the
mandatory servicing to the end-users. A package of reimbursement support will be
provided for the dealers during their mandatory servicing for the end-users machine.

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With the completion of each of the servicing period, the dealers may submit the
servicing claims into the LCS warranty system as per normal submission and these
claims amount will be credited into each of the dealers spare parts credits within the
LiuGong CE AP account book. Dealers will be able to use this credits freely to
purchase additional spare parts from LiuGong AP PDC.
LCS
PDC

The condition for this mandatory program is that customers must purchase the
genuine LiuGong filters and parts from the authorized LiuGong dealerships and
where LiuGong authorized dealerships to purchase from LiuGong Asia Pacific PDC.
All other parts and logistic conditions applied for the above program.

3.8 Filling out the Warranty Claim Form

IMPORTANT: The Dealer must repair the machine, order any needed parts not in
the dealers stock and then submit a claim for reimbursement after the repair is
completed to LiuGong.

General information Definition of Warranty Form Fields

Dealer code: Fill the full Dealer code which is assigned by LiuGong.
Claim date: Fill the current date that claim is being created.
Claim No: Created by Dealer.
Dealer information: Write down Dealers name, address, contact number and country
information.
Customer & owner information: Write down customer or owners name, address,
contact number and country number.
Machine status: Select the machine status that would be stock unit, sold unit,
demonstration rental unit or other.
Model: Fill the machine model.
Serial No: Fill the machines serial number.
Working hour: Fill in the working hour when machine failed.
Warranty inception date: Fill the warranty start date of the machine.
Failure date: Fill the date when machine failed.
Repair date: Fill the date when machine finished repair.
Symptom/Customer Concern: What the customer described with machine.
Problem/Failure: Repair Technicians findings.
Repairs/Correction: Repair Technicians action for repairing.
Probable Cause: Repair Technicians suspected cause of problem.
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Machine current status: Select the current status of the machine.

Primary Part Causing Failure: Main part that caused problem.
Part List: List the parts used for replacement.
Attached Related Picture: Very important to attach photos to justify warranty. Note:
Please compress the pictures before attaching.

3.9 Incident or Accident Report Form:

If a machine is damaged in any way that may result in major personal injury or
involved in propertydamage, LiuGong Asia Pacific must be notified by email to
lgapservice@LiuGong.com and the LiuGong Incident/Accident Form must be filled
out.

Process: Immediate action is required to ensure correct and timely information is

obtained from all involved parties. As a result, LiuGong requires the following from its
authorized Dealers.

1. In the event of bodily injury, the LiuGong Field Service Manager must be
immediately notified that an injury or accident has taken place.

2. A properly completed Incident Report Form must be submitted to LiuGong

immediately after the incident/accident investigation. This report must be completed
in English.
Items to be noted during the course of the investigation are as follows:

1. A camera is mandatory. Take clear photographs of the area around the

incident/accident so others can accurately evaluate the scene. Photograph
everything that is defective, suspected cause, and damaged or effected in the
incident/accident.

2. Talk to as many people as possible who witnessed the incident/accident or

familiar with operation and maintenance of the machine. Take statements get names,
address, and phone numbers where all involved parties may be reached at later
dates. .

3. Attempt to obtain all parts that are alleged to have contributed to the failure. Try to
determine exactly what happened from all known facts. Avoid jumping to conclusions,
refrain from stating your opinion as to what happened.

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4.0 Engine warranty policy

General Warranty Policy for Engines

LiuGong will extend the warranty policy of the engine manufacturer for the engine
which is installed on LiuGong products. The standard machine warranty does not
automatically apply to engines installed as original equipment in LiuGong
Construction Equipment machines. By contractual arrangement, the warranty terms
and conditions differ with engine each manufacturer as indicated in the following
details.Please contact LiuGong if you may require support for any engine not
specified below.

4.1 Warranty Policy Cummins Engine-

Cummins Base Engine Warranty
Please contact your local Cummins dealer to confirm coverage. Cummins covers
any failures of the Engine, under normal use and service, which result from a defect
in material or factory workmanship (Warrantable Failure). Coverage begins with the
sale of the Engine by Cummins. Coverage continues for two years or 2,000 hours of
operation, whichever occurs first, from the date of delivery of the Engine to the first
user, or from the date the unit is first leased, rented or loaned, or when the Engine
has been operated for 50 hours, whichever occurs first. If the 2,000 hour limit is
exceeded during the first year, coverage continues until the end of the first year.

50
22000
2000
Extended Major Component Warranty:
The Extended Major Components Warranty covers Warrantable Failures of the
Engine cylinder block, camshaft, crankshaft and connecting rods (Covered Parts).
Bushing and bearing failures are not covered. This coverage begins with the
expiration of the Base
Engine Warranty and ends three years or 10,000* hours of operation, from the date
of delivery of the Engine to the first user, or from the date the unit is first leased,
rented or loaned, or when the Engine has been operated for 50 hours, whichever
occurs first.
*3,000 hours for A series engines. These warranties are made to all Owners in the
chain of distribution, and Coverage continues to all subsequent Owners until the end
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of the periods of Coverage.

310000*
50
*A3000
Owners Responsibilities:
1. During the Base Engine Warranty: Owner is responsible for the cost of
lubricating oil, antifreeze, filter elements and other maintenance items
replaced during warranty repairs unless such items are not reusable due to
the Warrantable Failure.

2. During the extended Major component warranty: Owner is responsible for the
cost of all labor needed to repair the Engine, including the labor to remove
and reinstall the Engine. When Cummins elects to repair a part instead of
replacing it, Owner is not responsible for the labor needed to repair the part.
Owner is responsible for the cost of all parts required for the repair except for
the defective Covered Part and any Covered Part damaged by a Warrantable
Failure of the defective Covered Part. Owner is responsible for the cost of
lubricating oil, antifreeze, filter elements and other maintenance items
replaced during repair of a Warrantable Failure.

Cummins Engine Warranty Support:

Cummins provides direct warranty support for their engines through a large global
Dealer network. If you require Warranty support please contact Cummins directly at
www.Cummins.com.

www.Cummins.com.
If Cummins does not have direct service support in the region requiring the repair,
please submit a warranty claim request with adequate justification to LiuGong
through the standard warranty process. Additionally, you must also fill in the
Cummins Engine Service Request Form number 2010CE (see attachment forms
following this policy manual). Once approval has been received, please follow the
warranty claim and reimbursement policy described in this manual.

Notice: Without approval from Cummins or LiuGong, Engine coverage will be

rejected.

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Warranty Registration Directly with Cummins:

The Cummins engine warranty MUST be registered by the Dealer of end user at the
time of receipt of directly with Cummins.
Cummins Registration Process: Register the engine at through Cummins website
www.Cummins.com, Please refer to the steps for registration in following section.
CUMMINS
CUMMINS
http://www.cummins.com/
A. Click Product registration Product registration
B. Click I Accept after you read this introduction carefully.
I Accept
C. Fill these blanks.
D. Click Submit your registration after filling in the required fields.
Submit your registration
E. Registration process completed.

Cummins Exception Warranty Request Form

4.2 Warranty Policy - Weichai Engine

Weichai Warranty Coverage Period: The Weichai limited warranty coverage is for a
period of 1 year or 2000 hours, or 18 months from the shipment of the originating
factory, whichever comes first. Weichai supports warranty directly through their
Dealer network. Neglect or abuse is not covered under warranty. Weichai warrants
against defects in material or workmanship occurring during the warranty period.
12000
18

Warranty Registration: The Weichai engine warranty will be registered by LiuGong at

the time of receipt of the LiuGong machine warranty registration. The LiuGong
Warranty Registration Form must be received to begin warranty coverage for any
machine over 150 hours. Please refer to the machine warranty registration filing
guidelines section of this manual for further instructions.

150
Beyond Weichai Warranty Coverage: Weichai is not responsible for failures or
damage resulting from what Weichai determines to be abuse or neglect, including,
but not limited to: operation without adequate coolants or lubricants; over-fueling;
over-speeding; lack of maintenance of lubricating, cooling or intake systems;
improper storage, starting, warm-up, run-in or shutdown practices; unauthorized
modifications of the Engine. Weichai is also not responsible for failures caused by
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incorrect oil or fuel or by water, dirt or other contaminants in the fuel or oil. Weichai
does not warrant accessories which bear the name of another company. Such nonwarranted accessories include, but are not limited to: alternators, starters, fans
compressors, clutches, filters, transmissions, torque converters, steering pumps,
non-Weichai fan drives, and air cleaners. The use of non-Weichai or LiuGong
branded replacement parts, Coverage for engines that have not been registered for
warranty through the LiuGong warranty registration process and have over 150
hours of operation. Damage caused by force of nature such as war or nature
disaster.

150

Weichai Engine Warranty Support:

Weichai provides direct warranty support for their engines through a large global
Dealer network. If you require Warranty support please contact directly at
www.weichai.com or by phone at Weichai Engine - Service/Warranty Support 1800.860.3066 or 400.618.3066.

www.weichai.com - 1-800.860.3066 or
400.618.3066.
If Weichai does not have direct service support in the region requiring the repair,
please submit a warranty claim request with adequate justification to LiuGong
through the standard warranty process.

4.3 Warranty Policy - Yanmar Engine

Yanmar Warranty Coverage Period: The Yanmar limited warranty coverage is for a
period of 1 year or 2000 hours, or 18 months from the shipment of the originating
factory, whichever comes first. The crankshaft, engine block, connecting rod and
camshaft is warranted for 3 years or 3,000 hours, whichever comes first. Yanmar
supports warranty directly through their Dealer network. Yanmar warrants against
defects in material or workmanship occurring during the warranty period.
12000
1833000

Warranty Registration: The Yanmar engine warranty will be registered by LiuGong at

the time of receipt of the LiuGong machine warranty registration. The LiuGong
Warranty Registration Form must be received to begin warranty coverage for any
machine over 150 hours. Please refer to the machine warranty registration filing
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guidelines section of this manual for further instructions

150
Yanmar Engine Warranty Support: Yanmar provides direct warranty support for their
engines through a large global Dealer network. If you require Warranty support
please contact Yanmar directly at www.yanmar.com. If Yanmar does not have direct
service support in the region requiring the repair, please submit a warranty claim
request with adequate justification to LiuGong through the standard warranty
process.

www.yanmar.com

Beyond Yanmar Warranty Coverage: Yanmar is not responsible for failures or

damage resulting from what Yanmar determines to be abuse or neglect, including,
but not limited to: operation without adequate coolants or lubricants; over-fueling,
over-speeding; lack of maintenance of lubricating, cooling or intake systems;
improper storage, starting, warm-up, run-in or shutdown practices; unauthorized
modifications of the Engine. Yanmar is also not responsible for failures caused by
incorrect oil or fuel or by water, dirt or other contaminants in the fuel or oil. Yanmar
does not warrant accessories which bear the name of another company. Such nonwarranted accessories include, but are not limited to: alternators, starters, fans
compressors, clutches, filters, transmissions, torque converters, steering pumps,
non-Yanmar fan drives, and air cleaners. The use of non-Yanmar or LiuGong
branded replacement parts, Coverage for engines that have not been registered for
warranty through the LiuGong warranty registration process and have over 150
hours of operation. Damage caused by force of nature such as war or nature
disaster.

150

4.4 Warranty Policy - Isuzu Engine

Isuzu Warranty Coverage Period: The Isuzu limited warranty coverage is for a period
of 1 year or 2000 hours, or 18 months from the shipment of the originating factory,
whichever comes first. Some coverage is expanded by engine type and region so
please contact your local Isuzu authorized dealer for coverage confirmation.
12000
18

Warranty Registration: Registering your engine allows prompt and accurate reporting
before warranty service is required and will quickly enable an authorized Isuzu
dealer to determine the warranty status of the engine. This registration will be used
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in warranty claim processing and to contact you in the unlikely event that a safety
notification is required.

To register your engine, please the Isuzu web site www.Isuzuengines.com. and click
on the warranty registration link, then enter your engine serial number and model
code.
Please refer to the machine warranty registration filing guidelines section of this
manual for further instructions
www.Isuzuengines.com

Isuzu Engine Warranty Support:

Isuzu provides direct warranty support for their engines through a large global Dealer
network. If you require Warranty support please contact Isuzu directly at
www.Isuzuengines.com. If Isuzu does not have direct service support in the region
requiring the repair, please submit a warranty claim request with adequate
justification to LiuGong through the standard warranty process.

www.Isuzuengines.com.

Beyond Isuzu Warranty Coverage:

Isuzu is not responsible for failures or damage resulting from what Isuzu determines
to be abuse or neglect, including, but not limited to: operation without adequate
coolants or lubricants; over-fueling, over-speeding; lack of maintenance of lubricating,
cooling or intake systems; improper storage, starting, warm-up, run-in or shutdown
practices; unauthorized modifications of the Engine. Isuzu is also not responsible for
failures caused by incorrect oil or fuel or by water, dirt or other contaminants in the
fuel or oil. Isuzu does not warrant accessories which bear the name of another
company. Such non-warranted accessories include, but are not limited to: alternators,
starters, fans compressors, clutches, filters, transmissions, torque converters,
steering pumps, non-Isuzu fan drives, and air cleaners. The use of non-Isuzu or
LiuGong branded replacement parts, Coverage for engines that have not been
registered for warranty through the LiuGong warranty registration process and have
over 150 hours of operation. Damage caused by force of nature such as war or
nature disaster.

150

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5.0 General parts policy

LiuGong strives to provide adequate and efficient support to our overseas global
dealers in the promotion of LiuGong products; this policy is created for all authorized
LiuGong Dealers and supersedes all previous versions of this policy manual. The
LiuGong parts policy manual will be reviewed twice per year and LiuGong reserves
the right to make changes as required. Where a Liugong Subsidiary exists, the
Subsidiarys policy will take precedence.

Liugong reserves the right to change prices, modify parts, and/or make
interchangeable substitutions to a Dealers parts order without prior notice. Every
effort will be made to notify the distributor of a price change and/or parts substitution
when time allows.

5.1 Parts purchasing management

For more efficient process in providing all Liugong dealers with genuine parts,
Liugong set up 8subsidiaries, each dealer must purchase the part according to the
designated area. Order purchasing process: dealer
LGAP
Liugong HQ.
Shipment procedure: Liugong HQ
LGAP
Dealer.
8

Whether the parts are shipped from LGAP or from LGHQ, dealers are required to
submit purchase request to its assigned distribution centre, each distribution centre
will do their utmost in fulfilling the request parts for the dealerships within the said
period requirements.Dealers may apply for the direct delivery of parts from LGHQ to
dealers if the parts are for Unit down machines, or if LGAP has no stock, or other
special situation. All requests are needed to be submitted to LGAP for
considerations.

LGAP

Liugong obligation

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The distribution parts Centre will provide dealer with services such as purchase,
dispatch, management of billings, parts cost settlement parts technique
supporting

Will not sell any parts directly to end user / customers, except for the LiuGong
key customers
LiuGong will provide parts for all LiuGong manufactured machineries carrying the
LiuGong brand name which the Dealer is authorized to sell and/or service in the
Dealers assigned territory, subject to the following exceptions:
/

Parts become obsolete.

Equipment is not equipped to meet regional governmental regulation
and was not authorized to be shipped into the area,

Should a LiuGong manufactures part no longer be produced, LiuGong will

endeavor to provide an interchangeable replacement and advise the Dealer on
the delivery schedule.

Dealer obligation:
In order to protect the interest of the customer, dealers provide customer service
with genuine parts that are purchased from LiuGong.

Each dealer should make effort to reach monthly purchase target that not only
includes parts amounts but also to stock up for the support of warranty and
maintenance needs of the LiuGong products in dealers assigned territory.
Multiplying by the factor of the dealer machineries population, it will result to each
dealer monthly quota.

At all times dealers need to maintain spare parts level in order to support Unit
down incidents, as well as warranty repair status in order to reduce the customer
machine down time, should the spare parts are not available for the requirement
from the dealer, the dealer should immediately inform the assigned distribution
center for support. In the event that the customer complains the dealer on parts
unavailability and unable to solve the problem in time. If serious consequences
are caused, the dealer should be penalized.
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Parts SupportContact Information

LiuGong understands that assisting its Dealer Network and Subsidiaries for parts
support is essential for Customer satisfaction in the overseas market. Our team is
dedicated to continuously improving our support and relationship globally.

Please contact us using the following information.

E-mail: lgaplogistics@liugong.com
Phone: +65 6686 3566
Fax: +65 6686 3522
Time:
1. Available from 8:30 am to 5:30 pm Monday to Friday (UTC+8) except for
LiuGong designated holidays. 8:30- 5:30

2. The last 2 days in every month is scheduled for stock counting, as such
LiuGong will not process any orders except for Unit down orders. (Stock
counting starts from 28th every month)
28

5.2 Order Type Classifications

Orders placed to LiuGong will be classified according to the conditions of each order.
The order classifications herewith defined are very important with respect to the
methods of handling and shipping. There are three (3) order classifications:

1. Unit down Order ---------------------- (C) - First priority * (by courier or air freight)
2. Emergency Order ---------------------(B) - Second priority
3. Stock Order -----------------------------(A) - Third priority
1. --------------- C*
2. --------------- B
3. --------------- A
* These types of orders require providing with machine model, serial number and
hour meter reading, if its for pending repairs.*

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5.2.1 Stock Order Requirements:

It is required that all authorized LiuGong Dealers stock parts to support warranty and
customer needs. The dealer must stock the recommended minimum spare parts as
provided for the first model sold in their territory.

1. All stock orders can be entered either e-mail or fax.

2. In the regions where a LiuGong Regional Subsidiary or Parts Distribution
Center (PDC) is established, the orders must be placed directly with the
Subsidiary or PDC.
3. LiuGong will only accept 2 orders per month per dealer location.
4. Stock order should be shipped to the ordering dealer. Partial shipment is
allowed for this type of order and Liugong will fulfill the order within 60 days
1.
2.
3.
4.

60

5.2.2 Stock Order Incentives

Stock order value: 10% discount off of the current published dealer net price if
order value is over USD15, 000.

USD15,000. 10%

A maximum of 2 requests of stock order per month for each of the dealership

LiuGong will pay for the sea freight to dealers nearest sea port. All other
shipping and handling costs will be the responsibilities of the dealer.

5.2.3 Unit down Order (Unit down C) (first priority):

C
Indicating an urgent requirement by the Dealer to replace stock or parts for pending
repairs situation. Where machine are down and work production for the end-user are
stop, which require immediate support from LGAP due to no stock available in dealer
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warehouse. Therefore any request for Unit down support which will mean LGAP or
LGHQ will stop all other processing to support this unit down request. Which mean
the type of shipment back to the requester must be a.s.a.p. by courier or air freight
unless indicate otherwise.

LGAP LGAP
LGHQ

1. Unit down orders may be either throughe-mailor by fax.

2. Items for unit down should be specific related to the unit down machine only.

3. The regions where LiuGong Regional Subsidiary or Parts Distribution Center

(PDC) is established, the orders must be placed directly with the Subsidiary or
PDC. PDC PDC
4. There is no limit on the number of orders that can be placed daily;

5. Orders may be shipped directly to the dealers from Liugong HQ.

6. LiuGong will update the dealer with the process and try its best abilities to
send the parts within2 working days(based on the LGAP PDC outbound
procedure)

7. Will require dealers to submit the request as per standard process based on
PO form with the correct indication as indicate C for unit down which will be
handle as first priority request in the form. PO C

Pricing:
Current Dealer Net price
Order Freight:
Dealers responsible for the freight charges incurred.

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Order Minimums:

There is no limitation to minimum order in term of the quantity or value

Requirements:

All unit down Orders are to provide with the equipment model, serial number and
hour meter reading at the time of placing the order.

5.2.4 Emergency Order (B)(second priority):

B

Indicates an urgent need by the Dealer to replace stock or parts for emergency
requestWhere dealer have yet to keep the require parts under the stock order. And
in order to fulfill the request, once a request is activated, LiuGong AP Parts
Distribution center will immediately do its best to fulfill it. As such due to the
emergency and urgent situation where Parts distribution center personnel are require
to fully support the request. A surcharge of 3% of the urgent requests amount
will be implemented and invoice together with parts amounts.

LGAP PDC PDC

3%

1. Emergency orders may be entered by e-mail or fax.

2. In the regions where a LiuGong Regional Subsidiary or Parts Distribution

Center (PDC) is established, the orders must be placed directly with the
Subsidiary or PDC. PDC
PDC
3. There is a recommended of no more than 10% of the total number of orders
yearly. 10%
4. Orders may be shipped directly to the dealers customer or wherever so
designated by the Dealer as long as the shipment is within the Dealers
assigned territory. LiuGong AP will seek to make the first shipment within
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2business day after the receipt of the order and complete the order within two
(2) weeks unless extenuating back orders applies.
LGAP

Pricing:

Current Dealer Net price plus 3% surcharges per PO

3%
Emergency Order Freight:
Emergency orders will be shipped freight collect. Dealers select the best
methods and means of shipment.

Order Minimums:

There are no minimum line or dollar qualifications.

5.3 New Dealer Initial Stock Order

An initial Stock Order must be placed within 30 days from the first equipment order.
The Stock Order must maintain at a minimum level of the items listed on the
LiuGong Recommended Spare Parts List (RSPL) per applicable Model.
30

5.4 Parts Order Entry Requirements:

The following information must be stipulated on parts order:

1. Dealer information (Dealers name, Dealer Code, Company and Country)Fax

or E-mail number must be provided for receipt of order acknowledgement
and confirmation./

2. Shipping details information.

3. Shipping method selection
Dealer to selects the shipping method for emergency, equipment
breakdown and equipment breakdown warranty orders
Liugong to selects the shipping method for stock order

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4. Order classification: stock, emergency, equipment breakdownwarranty
order
5. Submit parts information in the following sequence:

Item number
Part number
Description use the description as shown in the parts price list or parts
manual
Model
Quantity
Equipment price
Total Amount
6. Additional information requirement for equipment breakdownwarranty
orders:
Equipment type & model
Serial number
Equipment running hours reading
Either through Online uploads e-mail or by fax for your order to LiuGong parts
department./
Tel: +65 6686 3566
Fax: +65 6686 3522
E-mail: lgaplogistic@liugong.com
LiuGong Parts Purchase Order form

PO

5.4.1 Order acknowledgement

All types of order will receive an order acknowledgement in confirmation.
For the Stock Order, Liugong will provide with the information of lead time and stock
availability together with the order acknowledgement.

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5.4.2 Order processing

Order processing time refers to the time required to enter, pick and ship an order.
Order processing time is based on LiuGong standard order processing procedures
and the availability of parts. Orders will be analyzed to confirm clarification and
accuracy, and orders of non-stock parts, will be delayed by the time required to
complete the analysisof the order.

5.4.3 Cancellations / Revised /

Stock order and non-stock parts are subject to the following cancellation conditions
once the Dealers order has been entered and processed:

All cancellations or revised are subject to a 15% handling charge based on dealer
net price list once the purchase order issued. 15%

Non-stock parts, which have been manufactured or received from vendor,

cancellation is not allow and will be shipped and invoiced to the Dealer accordingly. If
the Dealer still requests to cancel such parts, the parts will be scrapped and 100% of
parts price will also be invoiced to the Dealer.

No cancellation or revised are allow for unit down and emergency order due to the
urgency.

5.5 Pricing: Manufacturer Suggested List Price (MSRP)

(MSRP)
LiuGong will furnish each Dealer with a Manufacturer recommended retail price
(MSRP) on a CD ROM at no charge. Additional copies of CD ROM may be
purchased by contacting the parts department. The MSRP and Dealer Net pricing
are determined by a variable pricing matrix and are subject to change with advance
notification from LiuGong or one of its subsidiaries. In additional to the CD ROM,
LiuGong AP will also send the price list in excel format every half yearly for any price
changes of the parts pricing.

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 CDROM
excel
LiuGong reserves the right to modify parts, and/or make interchangeable
substitutions to a Dealers parts order without prior notice; Liugong also reserves the
right to adjust price, however, written notice as well as the excel format list will be
posted tothe Dealers 30days prior to any parts price adjustment.
/
30

To prevent any unwanted strain to the dealerships on the frequent price change,
LiuGong AP will initialize the price changes half yearly and will absorb the different
during the time.
LGAP

All list prices shown are Ex-work.

Prices listed in LiuGong special price quotation are valid for thirty days from
the date of quotation.
30

5.5.1 Competitive Parts Pricing

It is important for Liugong to ensure our replacement parts are priced competitively
by comparison to our competitors market value. Therefore, Liugong requires our
distributors to provide any information of current market pricing for a similar part
provided by our competitors, disregard whether is high or low by comparisons with
Liugong
A special form is designed for the parts pricing comparison.
Parts Pricing ComparisonForm

5.6 Shipping Methods

Parts shipments are made based on order classification.

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The Dealerselect method of shipment before theorder is placed, conditions applied.

Orders without a method of shipment will be routed by LiuGong

5.7 Payment Terms

1. The payment is net 90days from invoice date.
2. If the payments are not made within the agreed due date, the parts account
will be placed on credit hold until the account becomes current.
1. 90
2.

5.8 Parts Discrepancy Report

Items shown as shipped on LiuGong packing list and on subsequent invoice, but not
received or received in short, incorrect or damaged must be claimed with Parts
Discrepancy Report within seven (7) calendar days after receipt of shipment for
stock order request. For Emergency and unit down order request discrepancy must
be within three (3) calendar days.

7 ,
3

In case of such discrepancy happens, the below information should be provided:

1. Date: Date claim is submitted

2. Company name: dealers complete name
3. Address: complete mailing and/or shipping address with zip code
/
4. Dealer order number: dealers purchase order number

5. Date parts received: date on which dealer received the parts

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6. Filed by: name of person submitted claim
7. Part number: complete part number in question
8. Description: description as identified on packing list

9. Invoice quantity: quantity shown on respective invoice

10. Received quantity: actual quantity received by dealer

11. Photos
12. Feedback report from the transporter.
Damaged during Shipment:
It will be the responsibility of LiuGong to claim to the carrier if LiuGong selected the
shipping method. It will be the responsibility of dealers to claim to the carrier if
dealers selected the shipping method. Dealer may e-mail or fax the claim form to
LiuGong for disposition. After seven days (7) days, all orders are presumed
satisfactory.

7
LiuGong Parts DiscrepancyClaim Form

6.0 Training
LiuGong CE AP will conduct multiple types of products and components training
within Singapore Office or in LiuGong HQ with the support from the LiuGong HQ
training department. LGAP

6.1 Training request types

Quarterly or half yearly LiuGong AP will send out the request to all Asia Pacific
dealerships in term of their training request on different mechanic competence level
as well as the types of training require by the dealerships. Request from the dealers
will be on first come first serve basis. Currently LiuGong AP has 4 types of training
methods that can be schedule and support the dealerships

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4
1. 1 year one time technical product training and familiarisation course that will
be conducted in LiuGong HQ. This is to be catered for all Dealers personnel
that are interested in a quick familiarisation of the full technical products
ranges of LiuGong. No limit in the number of applicants. Normally held at the
month of June or July

6 7
2. Dealers to LiuGong HQ training program request. This will be the schedule
training request types that are catered for Dealers personnel on full complete
product training specific on the components, diagnostic, functions, electrical &
hydraulic training. Each product types training period is about 5 working days
to complete within the LiuGong HQ training facilities. Max 10 trainees for
schedule. Target group for the training will be for MCL 3 and MCL 4 Level
personnel from the dealerships

5
MCL3
MCL4.
3. LiuGong HQ trainer / LiuGong AP trainer to dealerships program. This will be
the schedule training request types that are catered for dealers personnel on
basic and intermediate training on each product ranges. Dealers are require
to provide the machine for training as well as a training room with the
necessary training equipment. Training period is about 4 working days. Target
group for the training will be for MCL 1 & MCL 2 level personnel from the
dealerships

4
MCL1 MCL2
4. Dealers to LiuGong AP major components training program request. This
training will be conducted within the Singapore training facilities for most of
the major components overhaul and repair by product ranges. Training period
is about 5 working days. Target group for the training will be for MCL 2 and
MCL 3 level personnel from the dealerships.

5 MCL2 MCL3.

6.2 Definition of Mechanic certification level (MCL)

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Below are the definition of the MCL level or mechanic competence level within the
dealerships in term of classification in skills and experience to conduct or to service
and support LiuGong after sales function effectively and efficiently. LiuGong AP will
use the below standard to measure the competence of the mechanic within the
dealerships in order to determine the kind of support and additional training
requirement necessary for the dealerships to improve the dealers mechanic
competence level to enhance the after sales support within the dealers territories.

More information of the MCL will be provided from the LiuGong training policy and
manual.

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