Packing, Marking, Shipping Instruction

1.0 PURPOSE

This document provides minimum packing, marking and shipping requirements for all materials ordered by K+S
and provided by the Supplier and is a guide for acceptable standards of packing, marking and shipping.

2.0 RESPONSIBILITIES

2.1 The Supplier shall be ultimately responsible for the supply, protection, and application of the packing of
materials and equipment from the Supplier's facility to ultimate destination.

2.2 The Supplier shall remain responsible for the adequacy of the preservation, protection, and packing of the
cargo for the shipment. Adherence to the present instructions does not release the Supplier from liability
for damage as a result of faulty packaging, inadequate protection, and/or preservation.

3.0 GENERAL REQUIREMENTS

3.1 Export packing materials shall be selected, and packages constructed to withstand the rigors of multiple
handling by manual and mechanical means via truck, air, and/or ocean transport. Special considerations
must be given to the degree of protection and to the selection of packing materials to ensure:

3.1.1 Safe and easy handling is facilitated.

3.1.2 Packing and transportation are economical in cost.

3.1.3 Damage and theft are prevented.

3.1.4 Rust and corrosion are inhibited.

3.1.5 Intrusion of dust and moisture is prevented.

Supplier must advise if temperature controlled transportation / storage is required.

3.2 Manufacturers' or suppliers’ special packing instructions for specific commodities and recommended
shipping modes shall take precedence to these specifications.

3.3 If specific requirements of this instruction are not practical, the best alternate industry standard packing
methods shall be used to obtain the desired comparable degree of protection. Any/all alternate packing
supplies and/or methods employed by the Supplier shall be brought to the attention of the K+S Logistics
Manager.

3.4 Manufacturer's and Supplier's recommendations, comments, and suggestions regarding protection,
packing and the handling of equipment and materials are solicited and should be referred to the K+S
Logistics Manager.

3.5 Unless otherwise agreed in writing, all packing materials, cases, crates, drums, saddles, and supports
shall be considered part of the purchase of the goods and will not be returned to the Supplier.

3.6 Heavy Lift and oversize Equipment

Heavy lift and oversize equipment requires special handling in accordance with regulations for traffic valid
at origin, transit, and destination areas. Additional requirements include:

3.6.1 Permitting in accordance with relevant transportation authority shall be considered and applied for
in a timely manner.

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3.6.2 Lifting and Sling Points shall be provided in drawings for each item to allow lifting in a stable,
horizontal position.

3.6.3 Lashing Points shall be provided for each item to secure the load during handling and transport.

3.6.4 All surface areas of each item which may come in contact with slings during lifting, must be
protected to prevent scratches, dents, or other damage during loading and transportation.

3.6.5 Marking of lifting points and center of gravity on heavy lift equipment must be marked.

3.6.6 Self-supporting items must provide adequate clearance for handling. Additional timber support
must be provided if self-support item (e.g. cradle, saddle) is not adequate to permit clearance for
lifting or movement.

3.6.7 It is the Supplier’s responsibility to design and provide transportation cradles unless otherwise
specified by the Purchase Order.

3.7 Limits of Stacking, Nesting for Containerization

3.7.1 Unnecessary free space within package must be avoided to reduce risk of damage.

3.7.2 Any single piece, which weight exceeds 35 kilograms (80 pounds), should be palletized for fork lift
handling.

3.7.3 Clearance (height) for fork lift tines should be no less than 8.9 centimeters (3.5 inches).

3.7.4 Materials with different purchase order numbers may only be consolidated if packed separately
and clearly indicated on the associated shipping documents.

3.7.5 Common stacking methods have to be obeyed (not heavy on fragile) unless instructed otherwise
by the manufacturer.

3.7.6 Damaged goods must not be loaded into a container until all contents have been checked and
packages are repaired.

3.7.7 The Cargo’s weight within container should be distributed as evenly as possible. The center of
gravity of the loaded container should be lower than the mid-point of the container whenever
possible.

3.7.8 Cargo must be secured in the container to avoid damage while transporting and unloading.

3.7.9 Cargo stowed in the container must be prevented from shifting and movement by any reasonable
cause during transit and therefore all cargo shall be blocked and braced tightly against adjacent
goods, and/or surfaces.

3.7.10 Plywood "Slip Sheets" shall be used between layers of stacked cargo to prevent damage to and to
distribute the weight of the over-stowed cargo.

3.7.11 Blocking and bracing of the cargo at the container entrance shall be used to prevent cargo from
tumbling when the container is opened.

3.7.12 For cargo integrity and safety purposes, only operational steel shipping containers shall be
accepted for the loading of materials. The containers shall be inspected both inside and outside
before loading. The container's interior floor and roof shall be checked for evidence of leaks and
cleanliness, and the doors shall operate freely. The doors' waterproof gaskets shall be complete
and functional.

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3.8 Air Cargo Packing

3.8.1 All air cargo material must be packaged in accordance with IATA (International Air Transportation
Authority) specifications.

3.8.2 Whenever possible standard airline containers shall be utilized.

3.8.3 Packing for over dimensional items shall be performed in accordance with airline requirements.

4.0 DANGEROUS GOODS

Dangerous goods must be identified, packed, marked, stored, and transported with the appropriate
documentation for dangerous good in accordance with all applicable laws and regulations; e.g. Material Safety
Data Sheets (MSDS).

5.0 PRESERVATION

5.1 Preparation of Material

Prior to packing, all equipment and material shall be checked to ensure that they are free from foreign
matter e.g. all weld spatter, scale, rust, cuttings, and filings. Critical wearing surfaces shall be cleaned by
dipping into or brushing with a suitable solvent, such as petroleum, naphtha, or alkaline cleaning
compound. After hydro-testing, operation or performance testing, all fluids shall be completely drained
from all tanks, vessels, jacketing, piping, etc.

5.2 Painting and Rust Prevention

Unless specified by the Purchase Order any required paint and/or rust preventive coatings shall be
approved by the K+S QA/QC Coordinator(s).

5.3 Protection of Openings

Flanged openings shall be protected with suitable plywood or gasketed metal covers. The use of wire to
attach the cover is not acceptable. An appropriate gasket shall be used between the metal cover and the
flange. Plywood covers shall be sealed with a waterproof adhesive tape e.g. gum tape.

Bagged desiccants shall be placed to avoid moisture, and identified with warning tags for removal before
installation (see 5.5).

Unconnected pipe threads shall be protected with threaded metal plugs or caps, as noted in the technical
specification and/or drawing.

5.4 Shaft Couplings

Flexible couplings shall be removed and protected to prevent damage. Rigid couplings shall be protected
in accordance with the Manufacturer's recommendations for shipment and storage.

5.5 Use of Desiccants

The use of desiccants enclosed in equipment, with sensitive materials and instrumentation is of extreme
importance in environments with high humidity and condensation caused by wide variances in
temperature. Sufficient desiccant (bagged) shall be applied.

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Desiccant with an easily read humidity indication shall be required in all types of protection, where
condensation or vapour diffusion across vapour barriers would create a condition in the interior of the
package harmful to the contents. Desiccant shall not be used to protect rubber products.

All equipment to be shipped with enclosed dehydrating materials shall be conspicuously marked, e.g.
"CAUTION: Desiccant materials are enclosed in this equipment. Do not operate before removing.
Should the integrity of the enclosure be broken before operation, the desiccant must be replaced
and the enclosure resealed for continued storage".

5.6 Protection

All threaded, beveled, and machined surfaces shall be protected from corrosion and damage caused by
use of powered equipment and rough handling.

Items shall be thoroughly cleaned inside and outside and must be free of any dirt or foreign matter prior to
the application of any anti-corrosive material. Machined and uncoated carbon steel and low-alloy steel
surfaces shall be coated with an anti-corrosive petroleum soluble rust inhibitor.

Items with exposed natural or synthetic rubber parts or linings shall be wrapped with an opaque, airtight
plastic cover. Desiccant shall not be used to protect rubber products.

Materials which will deteriorate in the presence of water or moisture, shall be protected from the elements
with appropriate packing and must be notified on shipping documents accordingly.

Instruments and electrical items shall be protected to prevent damage due to condensation, weather, and
corrosion according manufacturer instructions.

Shock sensitive material shall be notified and shock indicating equipment must be applied if required by
the manufacturer or supplier and/or K+S QA/QC Coordinator.

5.7 Rust Prevention

All equipment and material shall be properly protected against possible rust damage and deterioration
which may occur during transportation, handling, and/or storage.

The rust prevention shall be specified in the technical specification and/or manufacturer's or supplier’s
recommendations.

Rust preventives shall be compatible with the material and the atmosphere where they are applied.

An appropriate type of rust preventive shall be chosen in consultation with the rust preventives Supplier.

5.8 Small Loose Parts

Small, and/or loose component parts shall be tagged and packaged separately with a packing list copy
identifying the items with the appropriate Purchase Order Line Item. Such items shall be shipped with the
main equipment item, if they can be attached securely to the piece of equipment.

5.9 Special Tools

Special tools shall be packed in individual, heavy duty boxes with a packing list copy identifying each
item.

Large special tools, such as disassembly cradles, shall be prepared for shipment in the same manner as
the main equipment item including a separate packing list identifying the items.

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5.10 Equipment for Ocean Freight

The Supplier shall provide equipment with seaworthy packaging that considers suitability to be handled
by port and/or vessel's lifting gear.

All equipment pieces shall be skidded, pre-slung, fitted with lifting lugs, or with other adequate means of
lifting, and shall be accurately and clearly marked with the center of gravity.

Lifting points must be marked to ensure safe handling during loading, off-loading, and truck transport
operations.

In the event lifting devices (e.g. lifting beams, spreader bars, cable slings and lugs) are provided by the
Supplier, they shall be certified by an officially recognized authority and shipped together with major
equipment items.

Shipping cradles and supports for equipment items shall be suitable for ocean transportation in design,
strength, and number to safely support the equipment item in transit. Equipment items shall be fitted with
sufficient tie-down lugs for lashing/securing the pieces for shipment.

5.11 Equipment Preparation for Overland Transportation

Transportation support equipment (e.g. saddles) shall be designed and constructed to protect the material
until its final destination. Support equipment must be designed and constructed of sufficient strength to
withstand the stresses occurring during complete shipment.

6.0 MATERIAL AND WORKMANSHIP

6.1 Materials used for wrapping, packaging, taping, sealers, moisture barriers and retardants, and corrosion
prevention shall be in accordance with the best standards in packing industry.

The nature of the commodity and degree of protection required shall determine the quality of the packing
materials used.

6.2 All wooden packaging material (including dunnage) shall be in accordance with ISPM 15 (International
Standards for Phytosanitary Measures Publication No. 15, 2009). These requirements include certifying
that either heat treatment or chemical (methyl bromide) treatment has been performed and marking the
wood with the IPPC accepted symbol. Markings shall be in conformance with the following IPPC
(International Plant Protection Convention) standards:

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6.2.1 Dimensional Lumber

Dimensional lumber shall be new, well-seasoned, and shall be free from defects that cause weakness.
Knots or knot clusters shall not be in excess of 1/3 width of the board and shall not cause interference
when nailing or stapling. Lumber with bad cross grains shall be avoided.

6.2.1 Plywood

Only new, clean C-D exterior grades of plywood shall be used for the construction of shipping boxes.
No OSB (Oriented Strand Board) is acceptable.

6.3 Workmanship

All workmanship shall be in accordance with the best commercial practices and in accordance to the
applicable specification.

7.0 PACKING

7.1 Packing materials and shipping container types shall be selected to ensure the best protection to items
shipped by the rigors of rough handling on international transport. It is mandatory that the selection of
packing materials to be used is suitable for the item to be shipped.

7.2 Containers shall be packed in an efficient way. Equipment that does not completely fill the selected
container must be cushioned, braced, fastened, or blocked to prevent damage to itself or to the container.

7.3 Materials requiring special jigs, fixtures, tooling or re-calibration for re-assembly must not be dismantled.
Parts, attachments, or fixtures of the commodity packed shall be boxed, or blocked and braced within the
shipping container.

7.4 Break-bulk items shall be equipped with lifting lugs.

7.5 The weight capacity of the shipping container, as declared by the manufacturer or supplier, shall not be
exceeded.

7.6 Bundles and Pallets

7.6.1 Cargo shall be unitized, palletized, or assembled to the largest practical unit in accordance with
handling, weight and dimension limitations at transshipment points and destination. Palletized
materials should be capped and strapped, or shrink-wrapped. Material must fit the pallet without
voids.

7.6.2 Materials shipped in bundles shall be segregated by length and size, shall be secured with steel
strapping, and skidded to permit stacking without damaging the product.

7.7 Fiberboard Boxes

7.7.1 Fiberboard boxes shall be resistant to compression, puncture and moisture etc. Flaps should be
stapled or may be glued with a water-resistant adhesive applied to the entire area of contact
between the flaps. All seams shall be sealed with a water-resistant packing tape.

7.7.2 Unitizing, palletizing, or by over-packing several fiberboard boxes in consolidation containers is

preferred.

7.7.3 The fiberboard box must bear the weight of the load without compression or collapse.

7.8 Fragile or sensitive materials shall be packaged and cushioned in crates or boxes.

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7.9 Water sensitive Materials

7.9.1 Water sensitive materials shall be packed in:

7.9.1.1 Suitable waterproof lined boxes or sheathed crates, or

7.9.1.2 Another waterproof package e.g. waterproof shrink wrap.

8.0 INNER PACKAGING

8.1 All items shall be braced and/or cushioned within the container to prevent damage from shock, vibration,
and rough handling. Water absorbent cushioning material shall be avoided. Under no circumstances
will newspaper or a similar material be considered an acceptable packing material.

8.2 Identical small items shall be packaged in cartons, bags, or boxes prior to packing in the actual shipping
containers. Do not pack small items loose!

8.3 Finished and painted surfaces shall be protected from abrasion.

8.4 Commodities shall be nested or packed to reduce volume as much as possible. If necessary construct
containers to the content's dimensions.

8.5 Moisture sensitive commodities shall be protected by sealed packaging and utilization of desiccants.

Note: It will be the responsibility of the Manufacturer or Supplier to warrant that the commodity is free and
dry of all moisture.

The amount of desiccant to be used shall be efficient referred to the total volume of the shipping
container. Suitable cushioning shall be used on all corners, edges and protrusions. Silica gel or desiccant
shall not come in contact with critical working surfaces or finished surfaces.

9.0 MARKING

9.1 Permanent inks, paint, and waterproof labels, or stencilled marking shall be used to prevent obliteration of
shipping labels, instructions, and handling symbols. Symbols shall comply to international standard ISO
R/780 (International Organization for Standardization).

9.2 Markings must be on (4) four adjacent sides.

9.3 Shipping labels and instructions should be sufficient in size; the size of the shipping container shall
indicate the acceptable size of the shipping labels and markings.

9.4 Only those shipping instructions and markings required in the Purchase Order, plus any cautionary
markings, and/or special handling symbols shall appear. Manufacturer or Supplier shall not advertise or
apply symbols, which indicate the contents or other extraneous information.

9.5 Packages requiring special handling must be clearly marked and labeled i.e. “This Side Up”, “Fragile”,
“Flammable”, etc.

9.6 Should a shipping unit require lift by mechanical means other than pallet jack or forklift, the center of
gravity and sling points must be clearly indicated on the outermost packaging.

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10.0 MARKING REQUIREMENTS

10.1 Content

Mark packages as detailed below in accordance with following marking instructions.

PO Number in Full _________________________
SUPPLIER NAME _________________________
TAG NUMBER _________________________
PO Item Number _________________________
Box Number _________________________
Destination:
K+S Potash Canada General Partnership
Legacy Mine Site
Attention: Materials Management
RM of Dufferin #190
SE34-19-25-W2
Near Bethune, SK S0G 0H0 and Findlater, SK
CANADA
Gross Weight in KG
Net Weight in KG
Dimensions (L)______(W)______(H)___________in Meters
Country of Origin
Type of Storage Required

For non-crated shipments a section of strong plywood or other suitable material shall be securely
fastened to large items of equipment, bundles, or other items which are not boxed to be used as a
support for marking.

10.2 Packing Lists

Place one (1) copy of packing list inside each crate, attach one (1) copy in waterproof envelope to outside
of each crate or equipment, and attach one (1) copy to the shipping documents.

11.0 SHIPPING REQUIREMENTS

11.1 Release Procedure

Prior to shipment release, the Supplier shall provide K+S Potash Canada GP the following documents:
• Final Master Packing List prepared by grouping based on delivery date and truck/container load;
• Requirements for Transportation, Storage and Preservation;
• Transportation drawings, if applicable;
• Hazardous Material Declaration, if applicable;
• Material Safety Data Sheets (MSDS), if applicable;
• Final Commercial Invoices prepared by grouping based on delivery date and truck/container for
review;
• Certificate of Origin (if applicable);

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• Photographs of the cargo before packing; and
• Photographs of the cargo after packing.

K+S Potash Canada GP will approve the shipment by issuing a Signed Shipping Release

11.2 Transportation

During transportation any modification of the equipment is strictly prohibited (e.g. welding). Approval from
K+S Potash Canada GP is required if modification is mandatory.

K+S Potash Canada GP’s Materials Management shall be contacted for delivery instructions,
appointments etc..
Contact:
Name: Legacy Warehouse
Function: Materials Management
Number: 306-638-2099 or 306-552-3727
Email: [email protected]

11.3 Customs Clearance Instructions

If K+S Potash Canada GP is responsible for the customs clearance, the required documentation shall be
sent to the applicable Buyer.

The commercial invoice shall be conform to the Purchase Contract in all respects and must contain the
following information:

• Purchase Contract number including revision number, incoterm, quantities and tag numbers (if
applicable);
• Detailed description of equipment and/or materials;
• Unit price;
• Quantity shipped per line item;
• Correctly extended price (by line item) and total invoice price including currency; and
• issued to:

K+S Potash Canada General Partnership

220 Wall Street
Saskatoon, SK S7K 3Y3
Importer Number: 835477712RM0001

Depending on Incoterm the Supplier must ensure that all commercial and customs documents are
submitted on own letterhead. K+S Potash Canada GP will not accept any form of documentation from
Sub-Suppliers. Should a Sub-Supplier submit the required commercial and customs documents to the
Supplier, the Supplier will transfer the data onto its own forms and submit to K+S Potash Canada GP.

Once the carrier has picked up the goods a set of complete final shipping documents shall be sent to the
relevant Buyer.

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