AIDC USA LLC.
Supplementary Procurement Requirements
1. Quality Requirements
1.1. Quality Management System
The supplier shall comply with the requirements or applicable principles of AS9100 or ISO 9001 international quality management systems to ensure the capability of continual improvement, defect prevention, and process optimization, and shall agree to effectively implement and maintain such systems. The supplier shall use only external suppliers designated or approved by our company, including process service providers (e.g., special process providers), when subcontracting is authorized.
1.2. Product Safety / Quality Assurance
The supplier agrees and guarantees that all procured or subcontracted products are manufactured strictly in accordance with drawings and specifications, free from defects, and compliant with critical characteristics and quality requirements. In the event of any damage caused to our company (including our customers) to the extent resulting from the supplier’s nonconformance or negligence, the supplier agrees to assume corresponding compensation responsibility. The supplier shall ensure that applicable technical requirements and our company’s requirements are properly communicated to external suppliers. Personnel behavior and professional ethics shall contribute to product or service conformity and product safety.
1.3. Quality Responsibility
Our company reserves the right to inspect all procured or processed materials and parts, and payment shall be made only after acceptance. In the event of nonconforming products, our company has the right to reject, return, rework, or scrap such products. Such inspection shall not relieve the supplier of its responsibility for quality, nor shall it be deemed as final customer acceptance.
1.4. Counterfeit Parts Prevention
The supplier shall ensure that all provided or processed materials are sourced from legitimate and authorized channels and are supported by relevant certifications.
The supplier shall promote awareness among all personnel regarding the prevention of counterfeit or fraudulent parts and the consequences thereof, and shall implement appropriate controls to prevent the use of suspect or counterfeit parts.
2. Intellectual Property Rights
2.1. Drawings and Technical Data
The supplier shall keep confidential all drawings and technical data provided by our company and shall not disclose such information to any unauthorized third party without prior written consent from our company.
2.2. Patent Infringement
The supplier warrants that the procured or subcontracted products do not infringe upon any third-party patent rights and shall indemnify our company against any related claims. All costs arising therefrom shall be borne by the supplier.
3. Production Requirements
3.1. Engineering Changes
Prior to implementing any engineering changes (including but not limited to specifications, tooling, methods, process conditions, or manufacturing locations), the supplier shall notify and obtain written approval from our company. Unauthorized changes are strictly prohibited.
3.2. Production Planning
The supplier shall follow the First-In, First-Out (FIFO) principle and avoid excessive work-in-process holding. If prolonged holding results in mixed lot numbers, corrosion, or other quality risks, the supplier shall be responsible for rust removal or related corrective actions, to ensure lot traceability and product conformity.
3.3. Delivery
Delivery quantities and schedules shall be jointly agreed upon by both parties. The supplier shall not make unilateral changes without prior coordination. If severe delays require full air shipment to the customer, the supplier shall bear the cost difference unless otherwise agreed in writing.
3.4. Subcontracting Prohibition
If the supplier is unable to meet delivery schedules due to capacity constraints and intends to subcontract to a third party, prior written approval from our company is required. Unauthorized subcontracting, including special processes or critical processes, is strictly prohibited.
3.5. Work Instructions
The supplier shall establish work instructions for manufacturing our products and provide training to operators to ensure all products are manufactured in accordance with defined standards.
3.6. Handling and Protection
The supplier shall handle products with due care and appropriate protective measures to prevent impact damage, tipping, or exposure to rain. Products affected in a manner that impacts quality shall not be eligible for invoicing.
3.7. Audit and Inspection
During the manufacturing period, our company reserves the right to audit and inspect the supplier’s facilities or process locations. The supplier shall not refuse such visits, provided prior written notice is given.
4. Inspection and Quality Control
4.1. Inspection Standards
The supplier shall establish inspection standards or inspection forms and record first article inspection (FAI) and in-process inspection measurement results to ensure traceability.
4.2. Measurement Equipment Calibration
All measurement equipment shall be calibrated periodically and clearly marked with validity status. Nonconforming equipment shall not be used to ensure measurement reliability.
4.3. Records Management
For aerospace or special projects, the supplier shall follow the process conditions used during First Article Inspection (FAI). Any changes (equipment, process conditions, treatment methods, etc.) shall be reported to our company with supporting documentation. All relevant production and quality records shall be retained for a minimum of 30 years, or as otherwise specified by customer or regulatory requirements. Customers and regulatory authorities may be granted access to facilities and applicable documented information throughout the supply chain as required.
5. Control of Nonconforming Products
5.1. Nonconforming Products
In the event of nonconforming materials or products due to material specification mismatch, drawing nonconformance, process deviation, or handling and packaging damage, the supplier shall immediately notify our company. Nonconforming products shall be segregated, identified, and shall not be mixed with conforming products. If full inspection is required due to mixing, the supplier shall bear the associated costs.
5.2. Incoming Process Nonconformance
When performing processing on incoming materials, the supplier shall verify the conformity of prior processes (e.g., datum surface accuracy, surface damage, burrs). Any nonconformance shall be immediately reported to our company and shall not proceed to the next process. Nonconforming items processed further shall not be eligible for processing charges.
5.3. Recurrence Prevention
Our company will issue corrective and preventive action requests for nonconforming products. The supplier shall identify root causes, verify effectiveness, implement corrective actions, and apply actions to similar products as necessary to prevent recurrence. The supplier shall notify our company of the nonconforming process, product, or service and obtain approval for disposition.
6. Supplier Evaluation and Disposition
Our company conducts annual supplier evaluations with the following rating levels and dispositions:
The total score is 100, with 70% allocated to quality and 30% to delivery performance.
6.1. Class A (≥80): Purchasing may continue awarding orders.
6.2. Class B (60–79): Purchasing may decide whether to continue awarding orders. The supplier may submit a written
corrective action plan within a specified timeframe; on-site support may be provided if necessary.
6.3. Class C(≤59): Disqualification from the approved supplier list is recommended.
7. Invoicing, Payment, and Other Matters
Invoicing, payment terms, and other matters not specified herein may be stipulated in the purchase order.