Terms of service

1. ACCEPTANCE OF TERMS

All quotations, acknowledgments, invoices, shipments, and sales by FH Packaging are expressly conditioned upon Buyer’s acceptance of these Terms & Conditions of Sale. Submission of a purchase order, acceptance of goods, or payment of any invoice constitutes Buyer’s full acceptance of these Terms & Conditions.

Any additional, inconsistent, or conflicting terms proposed by Buyer are expressly rejected and shall not apply unless specifically agreed to in writing by an authorized officer of FH Packaging.

 

2. FORECASTS, RELEASES & PURCHASE COMMITMENTS

All forecasts, blanket orders, releases, purchase commitments, and estimated demand schedules provided by Buyer shall constitute material and binding representations upon which FH Packaging relies for production planning, inventory procurement, supplier commitments, labor allocation, warehousing, import scheduling, and capacity reservation.

Buyer acknowledges and agrees that FH Packaging may, in reliance upon Buyer forecasts and purchase commitments:

  • purchase raw materials and packaging components;
  • reserve manufacturing capacity, equipment, and labor;
  • issue non-cancelable supplier commitments;
  • import, manufacture, decorate, label, or warehouse products;
  • schedule factory production;
  • commit warehouse space and logistics resources;
  • and incur financial obligations on Buyer’s behalf prior to Buyer’s release or shipment request.

Unless otherwise expressly agreed in writing by FH Packaging:

  • the first sixty (60) days of all forecasts shall be deemed firm, binding, non-cancelable, and non- reschedulable;
  • forecast quantities beyond sixty (60) days may not be materially reduced without FH Packaging’s written consent;
  • all inventory, materials, and supplier commitments procured or incurred in reliance upon Buyer forecasts or purchase commitments shall remain Buyer’s sole financial responsibility.

Buyer shall be fully liable for and agrees to purchase and pay for all costs, expenses, liabilities, and commitments incurred by FH Packaging in connection with Buyer forecasts, orders, or anticipated demand, including but not limited to:

  • finished goods;
  • work-in-process;
  • raw materials;
  • unused inventory;
  • excess inventory;
  • safety stock;
  • imported inventory;
  • packaging components;
  • custom products;
  • private-label inventory;
  • custom tooling;
  • molds, plates, cylinders, and dies;
  • artwork and setup charges;
  • supplier cancellation fees;
  • warehousing costs;
  • freight commitments;
  • duties and tariffs;
  • inventory carrying costs;
  • storage fees;
  • and all non-cancelable supplier obligations incurred by FH Packaging on Buyer’s behalf.

Buyer may not delay, suspend, push out, cancel, reschedule, or reduce releases for inventory already ordered, imported, manufactured, or committed by FH Packaging without FH Packaging’s prior written consent.

Any forecast reduction, forecast change, cancellation, delayed release, rescheduling request, or shipment postponement may, at FH Packaging’s sole discretion:

  • be rejected;
  • result in immediate invoicing of inventory;
  • trigger storage and carrying charges pursuant to Section 8;
  • require revised pricing;
  • require extended lead times;
  • require prepaid terms;
  • or result in suspension of future production or shipments.

Buyer acknowledges that title to inventory may transfer and invoicing may occur prior to physical shipment where inventory has been purchased, produced, imported, or allocated specifically for Buyer.

The remedies provided in this Section are cumulative and in addition to all rights and remedies available under Section 8 and applicable law.

 

3. PURCHASE ORDERS

All purchase orders submitted by Buyer are irrevocable upon written acceptance by FH Packaging.

Orders for custom, printed, decorated, private-label, made-to-order, or special-order products may not be canceled, modified, returned, or refunded after:

  • artwork approval,
  • order acknowledgment,
  • material procurement,
  • tooling preparation,
  • or commencement of production.

Any requested modifications are subject solely to FH Packaging’s approval and may result in:

  • additional costs,
  • scrap charges,
  • material loss charges,
  • revised lead times,
  • and pricing adjustments.

FH Packaging reserves the right to ship and invoice reasonable overages or underage consistent with industry manufacturing tolerances.

 

4. BUYER RESPONSIBILITY FOR PRODUCT USE & COMPATIBILITY

Buyer acknowledges and agrees that it is solely responsible for evaluating, testing, validating, and determining the suitability, safety, compatibility, and fitness of all products supplied by FH Packaging for Buyer’s intended use, filling process, formulation, storage conditions, transportation, labeling, and end-use application.

Buyer further acknowledges that FH Packaging:

  • does not design Buyer’s products or formulations,
  • does not warrant compatibility with Buyer’s contents or processes,
  • and does not assume responsibility for regulatory compliance unless expressly agreed to in writing.

Buyer shall independently conduct all necessary testing, including but not limited to:

  • compatibility testing,
  • shelf-life testing,
  • transportation testing,
  • environmental testing,
  • filling line testing,
  • torque testing,
  • leakage testing,
  • and regulatory compliance verification.

Buyer assumes all risk and liability arising from:

  • improper product selection,
  • misuse,
  • incompatibility,
  • filling processes,
  • chemical reactions,
  • storage conditions,
  • transportation conditions,
  • or failure to adequately test products prior to commercial use.

FH Packaging specifically disclaims liability for damage or injury resulting from the use of products with:

  • chemicals,
  • solvents,
  • oils,
  • acids,
  • caustic substances,
  • alcohol-based products,
  • abrasive materials,
  • reactive compounds,
  • pressurized contents,
  • or any materials incompatible with the supplied packaging.

Buyer agrees to indemnify, defend, and hold harmless FH Packaging against any claims, damages, losses, liabilities, costs, or expenses arising from Buyer’s use, distribution, or resale of products supplied by FH Packaging.

 

5. ARTWORK, SPECIFICATIONS & APPROVALS

Buyer is solely responsible for:

  • confirming all dimensions,
  • specifications,
  • colors,
  • materials,
  • print accuracy,
  • regulatory labeling,
  • barcode functionality,
  • and final artwork approvals.

Approval of proofs, drawings, renderings, or production samples by Buyer constitutes full acceptance of product specifications.

FH Packaging shall not be liable for:

  • customer-approved errors,
  • artwork inaccuracies,
  • typographical mistakes,
  • color variations within industry tolerances,
  • or specification errors supplied by Buyer.

 

6. PRICING & MATERIAL VOLATILITY

Quoted pricing is subject to change due to increases in:

  • resin costs,
  • raw material pricing,
  • freight charges,
  • tariffs,
  • labor costs,
  • energy costs,
  • or supplier-imposed surcharges.

FH Packaging reserves the right to adjust pricing on open orders, blanket orders, or future releases upon written notice to Buyer.

 

7. LEAD TIMES & DELIVERY

All quoted lead times are estimates only and are dependent upon:

  • material availability,
  • supplier performance,
  • production capacity,
  • labor availability,
  • and transportation conditions.

FH Packaging shall not be liable for delays caused by:

  • freight carriers,
  • supplier failures,
  • raw material shortages,
  • labor disputes,
  • weather events,
  • acts of God,
  • government actions,
  • customs delays,
  • pandemics,
  • utility interruptions,
  • or events beyond FH Packaging’s reasonable control.

Delivery dates are estimates only and are not guaranteed unless expressly agreed to in writing.

 

8. INVENTORY LIABILITY, STORAGE, AGED INVENTORY & FAILURE TO RELEASE

Buyer agrees to timely release all inventory, finished goods, and products according to agreed forecasts, release schedules, shipment windows, and purchase commitments.

FH Packaging may procure, import, receive, manufacture, decorate, warehouse, or hold inventory based upon Buyer forecasts, blanket orders, purchase orders, projected demand, or release schedules. All such inventory shall remain Buyer’s sole financial responsibility once procurement, production scheduling, importation, or manufacturing activity has commenced.

Unless otherwise agreed in writing, FH Packaging may hold finished goods inventory for up to thirty (14) days following production completion or receipt into FH Packaging inventory.

Any inventory forecasted, ordered, allocated, imported, produced, or received on Buyer’s behalf that remains in FH Packaging’s warehouse for more than fourteen (14) calendar days following receipt from FH Packaging’s factory, supplier, or production facility shall be subject to inventory carrying charges.

Beginning on the fifteenth (15th) calendar day following receipt of inventory into FH Packaging’s warehouse, FH Packaging reserves the right to assess a carrying charge equal to $25.00 dollars per pallet per month of the invoiced, committed, or allocated inventory value, accruing monthly until inventory is released, shipped, transferred, disposed of, or otherwise removed from FH Packaging’s possession.

Such charges are intended to compensate FH Packaging for:

  • warehousing and storage costs;
  • inventory handling and management;
  • insurance expenses;
  • capital carrying costs;
  • reduced warehouse capacity;
  • operational disruption;
  • inventory financing exposure;
  • and administrative overhead associated with aged inventory.

If Buyer fails to timely release inventory, FH Packaging reserves the right, without limitation, to:

  • immediately invoice inventory in full prior to shipment;
  • transfer title and risk of loss to Buyer;
  • require immediate shipment or removal;
  • relocate inventory to third-party storage at Buyer’s expense;
  • suspend future production, imports, or shipments;
  • revoke credit terms;
  • require advance payment;
  • liquidate, recycle, scrap, or dispose of inventory;
  • and recover all associated costs, damages, and expenses from Buyer.

Storage fees, carrying costs, and all related charges shall continue to accrue, whether invoiced or not regardless of whether Buyer has taken physical possession of the inventory.

Inventory remaining unreleased, unpaid, or unshipped for more than ninety (90) days following written notice to Buyer may be deemed abandoned by FH Packaging. FH Packaging may thereafter dispose of, liquidate, recycle, or destroy such inventory without liability and without relieving Buyer of any payment obligations.

Buyer expressly acknowledges and agrees that Sections 2 and 8 are material terms of sale and are intended to allocate all forecast, inventory, storage, obsolescence, and carrying risk to Buyer once FH Packaging has relied upon Buyer forecasts, purchase orders, or release commitments.

 

9. PAYMENT TERMS

All invoices are due according to approved credit terms.

Late payments may result in:

  • suspension of production,
  • delayed shipments,
  • revocation of credit terms,
  • finance charges,
  • collection proceedings,
  • or cancellation of pending orders.

Past due balances shall accrue interest at the lesser of one and one-half percent (1.5%) per month or the maximum rate permitted by applicable law

No Setoff or Chargebacks

Buyer shall not withhold, offset, deduct, charge back, recoup, or otherwise reduce any amounts owed to FH Packaging without FH Packaging’s prior written consent. Any disputed amounts shall not relieve Buyer of its obligation to timely pay all undisputed invoices in full.

 

Buyer shall be responsible for all costs of collection, including:

  • attorney fees,
  • court costs,
  • collection agency fees,
  • and related expenses.

FH Packaging retains a security interest in all goods sold until paid in full.

 

10. RETURNS, CLAIMS & SHORTAGES

No returns shall be accepted without prior written authorization and issuance of a Return Merchandise Authorization (RMA).

Claims for shortages, defects, or nonconforming goods must be submitted in writing:

  • within fourteen (14) days of receipt for shortages or defects,
  • and immediately upon delivery for visible freight damage.

Failure to provide timely notice constitutes irrevocable acceptance of goods.

No returns shall be accepted for:

  • custom products,
  • printed items,
  • special-order goods,
  • clearance items,
  • used products,
  • obsolete inventory,
  • or products not in original condition.

Approved returns may be subject to inspection, 25% restocking fee, and freight charges.

 

11. FREIGHT, TITLE & RISK OF LOSS

All shipments are F.O.B. FH Packaging’s shipping point unless otherwise agreed in writing.

Title and risk of loss transfer to Buyer upon delivery to carrier.

Buyer is solely responsible for:

  • inspecting shipments upon receipt,
  • documenting visible damage,
  • filing freight claims,
  • and pursuing claims directly with the carrier.

FH Packaging shall not be liable for carrier-related loss, delay, theft, or damage occurring after shipment.

 

12. WARRANTY DISCLAIMER & LIMITATION OF LIABILITY

FH Packaging DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING:

  • MERCHANTABILITY,
  • FITNESS FOR A PARTICULAR PURPOSE,
  • NON-INFRINGEMENT,
  • AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR TRADE USAGE.

FH Packaging’s total cumulative liability arising from any claim shall not exceed the purchase price of the affected goods.

Under no circumstances shall FH Packaging be liable for:

  • lost profits,
  • business interruption,
  • recall costs,
  • production downtime,
  • loss of goodwill,
  • incidental damages,
  • indirect damages,
  • consequential damages,
  • punitive damages,
  • or third-party claims.

 

13. FORCE MAJEURE

FH Packaging shall not be liable for any delay or failure in performance resulting from causes beyond its reasonable control, including but not limited to:

  • natural disasters,
  • fires,
  • floods,
  • labor shortages,
  • transportation interruptions,
  • supplier failures,
  • pandemics,
  • utility outages,
  • government regulations,
  • war,
  • terrorism,
  • or acts of God.

 

14. GOVERNING LAW

These Terms & Conditions shall be governed by and construed in accordance with the laws of the State of California, without regard to conflict of law principles.

Any legal action arising from transactions with FH Packaging shall be brought exclusively in the state or federal courts located in California, and Buyer consents to such jurisdiction and venue.