Depot Metals strives to provide material as per the purchase request received from our customers. This document sets forth the policy and procedures for handling defective material claims.

  • Buyer shall inspect material upon receipt and any claim must be filed within 60 days of receipt of material.  

    • External damage of any kind is to be reported promptly upon receipt at Buyer’s facility

  • If there is an occasion that a discrepancy has occurred that may be cause for non-conformity of material, the below will assist in resolution.

    • Please note that Depot Metals will not honor a debit memo on claimed or rejected material until we have had an opportunity to review the rejection/non-conformance and after a formal disposition of the claim has been issued.  

    • Once that process has been completed, a credit memo will be generated by Depot Metals.

    • No debit memo shall be deducted from Depot Metals until a credit memo has been issued.

    • If a buyer processes a debit deduction prior to the approval / issuance of a credit memo it will be rejected and Buyer shall be responsible for immediate payment of the subject invoice in full.

    • We do not reimburse for labor (ie back off charges) and/or freight and/or transfer charges or any subsequent charges associated with claims results from material defects.

    • All products are subject to industry accepted tolerances on weight and dimensions unless specified and agreed to prior to order acceptance of purchase order by Depot Metals.

    • Buyer may not return, repair or dispose of any allegedly defective or nonconforming material without Depot Metals consent.

  • The following must be provided by Buyer to submit a potential claim:

    • Depot Metals Invoice number and specific description, tag #’s, weights that are in question.

    • An accurate description of the defect(s) and the exact location(s) within the coil / skid (head middle ‐tail end ‐edges ‐top or bottom side).

    • Original weight along with the potential rejected weight 

    • Current location of the material in question

    • Current break down of material form (sheets/coil) and piece count/weight of each item

    • Digital Pictures or samples – 

      • Pictures to include but not limited to measurement, clearly show defect, including pictures prior to going into equipment 

    • When the above is received – Depot Metals will begin the process of addressing the concern as provided by the above.

    • This information will expedite a resolution of the potential claim

  • For Material purchased in coil form: 

    • Product minimum yield is 97% based on the net weight of the coil 

    • Unless otherwise agreed upon at the time of contract / order placement, Depot Metals will not guarantee part formation as there are many factors that Depot Metals does not control.  Such as but not limited to die maintenance, lubrication, forming strain rate, chosen alloy etc.  

    • If a defect is visible at the beginning of an individual coil, Depot Metals authorizes Buyer to run up to 10% of the coil weight to evaluate the degree and persistence of the defect.

    • If the defect diminishes at the 10% point, Depot Metals authorizes Buyer to run an additional 5% of the coil weight. If the defect persists, the balance of the coil, along with the metal processed must be set aside for inspection. 

    • If a defect appears towards the end of the coil, Depot Metals authorizes Buyer to process any coil weighing 1,000 pounds or less and to set aside for inspection the defective material in excess of the 97% minimum product yield

    • All rejected material must be properly identified with Buyer’s P.O. Number, invoice number, grade, dimensions, lot number/pack number and the original packaged weight. The preferred method is to attach a copy of the corresponding packing list to the Buyer’s rejection notice


    • No claim will be honored on material that has already been processed when it exceeds the limits specified 

    • Buyer should retain sample of the defective material in each case as the mill may request physical examination of the sample. 

  • Resolution:

    • Following receipt from the Buyer of above requested information – Depot Metals will review and inspect the claim and may consult with the originating mill and review and inspect the production and inspection records. 

    • The completion of such examination by the original mill may be necessary before the claim will be accepted or denied by Depot Metals. 

    • If there is a disagreement between the Buyer's and the mill or Depot Metals regarding the validity and extent of the claim, a thorough on-site inspection shall be promptly performed to resolve the matter. 

    • In the event of Depot Metals acceptance of Buyer’s claim, Depot Metals, at its sole discretion shall either 

      • Return the material for rework to remove any defects, if possible 

        • Material must be returned in the same condition as when received by Buyer

      • Credit or refund the price for agreed upon quantity of defective product upon receipt of the returned product 

        • Material must be returned in the same condition as when received by Buyer

      • Request Buyer to retain the defective product and issue Buyer a credit based upon the Depot Metals invoice price less a scrap value as agreed upon by both parties

    • A claim initiated and presented by a third party will not be considered. Expenses or damage caused by third party processing is at Buyer’s own risk.

  • No claim will be honored if the above procedures are not followed.

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