Warranty Policy and Procedure Manual 2018

CONTENTS
CHAPTER I SERVICE POLICY
SECTION 1：General Provisions....................................................................................	03
SECTION 2：The Distributor/Dealer's responsibilities.............................................	03
SECTION 3：JAC's Assistance.......................................................................................	06
CHAPTER II WARRANTY POLICY
SECTION 1：General Provisions....................................................................................	10
SECTION 2：Classification of Warranty Service Claims..........................................	19
SECTION 3：Instances Not Covered by Warranties..................................................	20
SECTION 4：Parts Warranty............................................................................................	21
SECTION 5：Return of Defective Parts.........................................................................	22
SECTION 6：Warranty Policy on special situation....................................................	22
SECTION 7：Warranty Audit............................................................................................	23
CHAPTER III WARRANTY CLAIM PROCEDURES
SECTION 1：Warranty Service Claim Forms...............................................................	27
SECTION 2：WSC Operation Procedure......................................................................	29

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CHAPTER I SERVICE POLICY

SECTION 1：General Provisions

1-1 Essential

JAC and the Distributor/Dealer both have an important duty to maintain customer satisfaction . Providing after-sales service of high quality will contribute to increase Product sales and customer satisfaction and will also implement the concept of “Customer oriented operation, service-driven performance”.

In order to achieve customer satisfaction, both parties (JAC and the Distributor/Dealer) must recognize their own roles and cooperate to carry them out properly.

The Distributor/Dealer must be prepared to provide after-sales service which suits the particular conditions of the Territory, as well as the Distributor/Dealer's financial standing and sales programs.

1-2 Warranty

A warranty is offered as an integral part of the terms of delivery of the Products to the Distributor/Dealer.

The Distributor/Dealer shall inform customers of the terms of the applicable warranty, and also that no charge will be made for JAC Parts or labor required to make good any material or workmanship found to be defective under the terms of the warranty, and that no charge (except for oil, lubricants and other liquids) will be made for authorized Warranty Service performed on the customer's Vehicle.

1-3 Disclaimer

The terms of this Warranty Policy and Procedure Manual may change, and may apply or not apply, depending on the terms of the agreement between JAC and Distributor/Dealer. Distributor/Dealer should contact JAC as needed for clarification or explanation of the scope of the warranty and warranty procedures. In the event of a conflict between the terms of this manual and the terms of the agreement between JAC and Distributor/Dealer, the terms of the agreement shall prevail.

SECTION 2：The Distributor/Dealer's responsibilities

The Distributor/Dealer's responsibilities for promotion of customer satisfaction and after-sales service are as follows:

2-1 Maintenance/Supervision of the Satisfactory Operation of the Customer's Vehicle

Every Vehicle purchaser is entitled to receive adequate service and parts through the Distributor/Dealer to keep their Vehicle in good running condition.

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2-2 Adequate Facilities

Distributor/Dealer's facilities will include a suitable, well located building with easy access to the service department and having sufficient space to handle the expected volume of business. The facilities shall have an efficient layout which provides for the comfort and convenience of customers, and shall be designed to promote the most efficient handling of customer service requirements. The facilities shall be equipped with essential shop equipment, including special tools to perform work efficiently in a minimum amount of time.

2-3 Competent Personnel

Competent personnel, each experienced in their area of work, and an individual (like service manager, spare parts manager) in charge who is capable of efficiently directing their activities, are required.

2-4 Training for Mechanics/Technicians

The Distributor/Dealer shall endeavor continuously to increase the capabilities of its mechanics/technicians by conducting its own training courses, etc. and also by using those training courses organized by JAC.

This is to ensure that customers receive reliable after-sales service, which results in customer satisfaction.

2-5 Adequate Stock of Genuine JAC Parts

Every customer has the right to expect the availability of JAC Parts of the same type and quality as those originally included when the Vehicle was purchased new. The Distributor/Dealer must meet customer demand by maintaining an adequate stock of genuine JAC Parts.

2-6 Fair Pricing

The Distributor/Dealer should make its own analysis of service prices and facilities of local competitors. The Distributor/Dealer should set up its own pricing structure on a competitive basis, and should constantly market its service facilities to the public in a responsible and profitable manner.

2-7 Inspection Upon Receipt of a New Vehicle

When receiving a new Vehicle, the Distributor/Dealer should promptly, carefully inspect it for cleanliness, faults, damages, missing parts, etc., and perform any necessary cleaning and adjust.

2-8 Pre-Delivery Inspection (including inspection immediately before delivery to the customer)

A new Vehicle must be thoroughly inspected and serviced to make sure that it will be delivered to the customer in a cosmetically perfect and defect-free condition.

This is extremely important in order to achieve customer satisfaction.

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The expense for such a Pre-Delivery Inspection is to be borne by the Distributor/Dealer. Pre-Delivery Inspection must be performed in accordance with the Pre-Delivery Inspection (PDI) standard established by JAC.

2-9 New Vehicle Free Inspection

The Distributor/Dealer should perform a new Vehicle inspection at no charge for the customer.

This inspection is to be performed in accordance with the instructions in the Owner's Handbook or relevant documents.

2-10 Periodic Inspection

The Distributor/Dealer should make every effort to have customers fully understand the necessity of both periodic inspections, and periodic maintenance. The Distributor/Dealer shall offer such services to customers.

Whenever periodic inspections or maintenance service are conducted, the Distributor/Dealer should record them in the Owner's Handbook or relevant documents.

2-11 Necessity of Warranty Service

The Distributor/Dealer is requested to carry out adequate Warranty Service on behalf of JAC, in accordance with the provisions of Chapter II, Warranty Policy of this manual.

The expense involved will be reimbursed by JAC as described in Chapter II, Warranty Policy of this manual.

2-12 Field Quality Information

(1)The Distributor/Dealer should advise JAC quickly and accurately of information about Product quality and service on Products by using the Service Report Form (SRF) shown on the following page, quality feedback model in DMS or by any other clear and effective method. (SRF--ATTACHMENT 1-1)

It is recommended that a clear photo, video or other supporting information be included to help JAC understand the situation/problem better. The Distributor/Dealer is also requested to make SRFs about the Local Parts that are used in the KD Vehicles. (Local Parts are not warranted by JAC, but should be warranted by their manufacturer, supplier, etc.)

(2)If, after the Dealer/Distributor has issued the original SRF, several more cases of the problem occur, the Distributor/Dealer should report this information to JAC by using the Quality Report Supplement (QRS), which is shown in the following pages, or by using any other clear and effective method. (QRS--ATTACHMENT 1-2)

The principal purpose of the QRS is to follow and supplement a SRF. However, a QRS can be attached to the original SRF if many failed units are recorded from the beginning.

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2-13 Vehicle Information

When delivering a new Vehicle to a customer, the Distributor/Dealer must provide the customer with all information necessary for proper operation and maintenance of the Vehicle. The Distributor/Dealer should also take every opportunity to improve the customer's knowledge of Vehicle characteristics, proper handling, required maintenance, etc.

2-14 Vehicle Storage and the Maintenance of Vehicles in Stock

The Distributor/Dealer should store new Vehicles in the proper storage area, and should periodically check and maintain stored Vehicles in accordance with the JAC NEW VEHICLE STORAGE GUIDE established by JAC. The purpose of this is to prevent any Vehicle damage and/or deterioration such as rust, tire flat spots, battery discharge, etc., and to maintain the Vehicle in good condition to promote customer satisfaction.

2-15 Cooperation With Research

JAC requires the cooperation of the Distributor/Dealer with market research or other surveys conducted by JAC regarding the acceptance, performance, servicing, etc. of Products in the Territory.

SECTION 3：JAC's Assistance

JAC offers the following essential items to assist and support the Distributor/Dealer's service.

3-1 Service Publications (1)For JAC Built-Up Vehicles:

JAC will provide EPC, maintenance manual, workshop manual and operating manual for the Distributor/Dealer.

(2)For KD Vehicles:

The assistance JAC provides depends upon the details of the Technical Assistance Agreement or other relevant agreement between JAC and the Distributor/Dealer.

3-2 Field Service Assistance

JAC will dispatch/maintain an adequate staff of field service representatives, as necessary, to assist the Distributor/Dealer in the development and maintenance of a proper service system.

3-3 Product Quality Improvement

Based on the field technical information reported by the Distributor/Dealer and JAC service representatives via SRF and QRS, JAC product quality standards will be maintained and improved.

3-4 Recommendations/Assistance in Setting-up Dealership Facilities

JAC will provide support in service facilities and service procedure for the

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ATTACHMENT 1-1：SERVICE REPORT TEMPLATE

JAC INTERNATIONAL SERVICE REPORT FORM

Country：	Date:		(Y/M/D)	Record No.：

Vehicle Information

Vehicle Model		Engine Model

VIN No.		Engine No.

Driving Distance (km)		Date of Sales

Date of Malfunction

Please describe the malfunctions in detail and attach the photos showing the part's defects

Causes Analysis:								Handling Measures& Actions Taken:
Analysis:
								Signature:			Date:

Replaced Part Name:			Part No.:				Qty’:			Source of Replaced Parts:




Use of Vehicle(Personal Use (		)		Business Use (					)
(Note: This is an requirement only for passenger cars.
Road conditions City Center ( )			Suburban (			)			Mountainous Road ( )
Bumpy Road( )	Common Road(			)				Highway(			)
Speed On Malfunction Still at idle speed(				)			0～30KM/h(				)
30KM～60KM/h( )	60KM～90KM/h(			)	Over 90KM/h( )

JAC REPLY:
						Signature:					Date: .

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ATTACHMENT 1-2 QRS：

QUALITY REPORT SUPPLEMENT (QRS)

SUBJECT			Any change or supplemental	DATE OF ISSUE
			explanation to original PQR:

NAME OF				DISTRIBUTOR NAME
VEHICLE

ORIGINAL PQR	No.:	DATE:		REPORTER’S NAME

No.

VIN/CHASSIS No.

ENGINE No.

DATE SOLD

DATE/MILEAGE TROUBLE OCCURRED

KD LOT No.

NOTE

Purpose: This form should be used for reporting in case that same	ORIGINAL-1 (to JAC)
failure occurred on more than one vehicle
This can be attached to PQR or can be issued independently
to follow field situation after issuing of the front PQR

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CHAPTER II WARRANTY POLICY

SECTION 1:General Provisions

1-1 Application

The Distributor/Dealer shall claim from JAC reimbursement of warranty costs for Warranty Service on the Products in accordance with this JAC Warranty Policy. Execution of Warranty Service work and all warranty claims shall be conducted in accordance with this manual. Distributor/Dealer is requested to contact JAC as needed for clarification or explanation of the scope of the applicable warranty and/or its various conditions and procedures.

1-2 Reimbursement of Expenses

JAC will bear the expenses incurred in repairing defective Vehicles on the basis of the warranty established by the relevant agreement between JAC and Distributor/Dealer. When Warranty Services are carried out, either at the customer's request or by instruction of JAC, the Distributor/Dealer is requested to claim from JAC reimbursement of the expenses involved by following the procedures described in this manual under Chapter III, Warranty Claim Procedures.

In this way, expenses will be reimbursed in a currency agreed upon by both parties. Reimbursement to the Distributor will be calculated, as a rule, on a "cost" basis, not including the Distributor's profit.

1-3 Which Parts May Be Replaced

For Warranty Services, only faulty "Individual Parts" may be repaired or replaced. ("Individual Parts" refers to the Minimum Part Unit listed in JAC's parts catalogues) Also, only genuine JAC Parts may be used.

However, when the replacement of an entire assembly is preferable because of some trouble which involves almost the entire assembly; or, when the cost of replacing an entire assembly is less than the cost of replacing the assembly's Individual Parts, the Distributor/Dealer may replace the entire assembly and provide to JAC a detailed, written explanation. Otherwise, replacement of the entire assembly is not covered by warranty.

1-4 Retention of Parts Replaced Under Warranty

(1)The Distributor shall collect the JAC Parts replaced under the warranty ("claimed parts"), shall confirm the appropriateness of the Warranty Service performed, and shall verify that the information given in the Warranty Service Claim ("WSC") is correct, accurate and complete.

Subsequently, the Distributor shall retain such claimed parts for at least a six-month period after its receipt of JAC's processing decision by attaching to them a "Warranty Replaced Parts Card" (explained in (5), below).

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If the Distributor accepts the responsibility of having its field staff carry out these procedures on their regular visits to the Distributors, the Distributors themselves (instead of the Distributor) may keep the claimed parts in storage.

(2)It is the Distributor's responsibility to ensure that all claimed parts are destroyed or disposed of after the aforementioned retention period expires, in order to avoid the accidental re-use of claimed parts. And it should comply with local environmental regulations to destroy claimed parts.

(3)The cost of sending claimed parts from the Distributors to the Distributor, as well as the cost of retaining such claimed parts, shall be borne by the Distributor or the Dealer, as separately agreed among them.

(4)Upon JAC's request by letter or other means, the Distributor shall return such claimed parts to JAC without delay. If the claimed parts requested by JAC are not returned, the WSCs concerned will not be covered by the warranty.

The purpose of JAC's requests for return of claimed parts is to verify the appropriateness of the Warranty Service which was performed, and also to check the claimed parts for technical data in order to improve their quality. How to deal with the cost of returning claimed parts that are requested by JAC will be explained in the correspondence from JAC to the Distributor.

(5)A "Warranty Replaced Parts Card" (an example is shown below) or an equivalent thereof should be attached to each claimed part. The Distributor itself should arrange for the printing and supply of Warranty Replaced Parts Cards, JAC will provide the template.

JAC International Replaced Parts Card

Owner's Name

Claim Report No.

Vehicle Model		Mileage (km)

VIN No.		Date of Sales

Engine No.		Date of Repair

Replaced Part Name:		Replaced Part No.:

Causes Analysis:

Claim Officer

Service Manager

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1-5 Warranty Conditions

(1)The warranty period and other related conditions shall be mutually established based on the service agreement of JAC and the Distributor/Dealer.

(2)If the Vehicle is sold by the original purchaser within the warranty period, the remaining portion of the warranty period will be taken over by the new purchaser.

(3)Vehicles are sometimes exported to the Territory directly or indirectly by JAC, and not through the Distributor, in response to an order placed by a customer such as a United Nations Agency, a local Government, etc. In the case of such Vehicles, JAC will notify the Distributor of the applicable warranty conditions and will require the Distributor to undertake after-sales services, including Pre-Delivery Inspection, of the new Vehicles involved.

(4)Vehicles are sometimes exported from a given Territory by the Distributor/Dealer without JAC's approval. In the case of such Vehicles, the selling Distributor/Dealer, not JAC, shall be fully responsible for the cost and expense of all warranty and after-sales service of those Vehicles.

1-6 Scope of Warranty Repair Cost

(1)The scope of the warranty claim on any products is limited to the cost (JAC Parts and/or labour) as set forth below.

(2)The Distributor shall endeavour to perform Warranty Service at the minimum cost (JAC Parts and/or labour).

1-7 Parts Cost for Warranty Services

JAC reimburses the Distributor's costs set forth below. The JAC Parts cost for Warranty Services shall be based on the "FOB Price" multiplied by the Parts Compensation Factor established or determined in《service management manual》.

(1)Parts F.O.B. Price: shown in DMS (2)Parts Compensation Factor

The Parts Compensation Factor is determined by JAC considering the following factors:

(a)F.O.B. price

(b)Various expenses actually paid for importation: Insurance

Ocean freight Import tax Customs duties

Cost of JAC Parts for Warranty Service = (a) + (b) Parts Compensation Factor = {(a) + (b)} / (a) (3)Establishment or Revision of Parts Compensation Factor

When the Distributor or JAC wishes to review the Parts Compensation Factor, because one of the cost elements in(b) above changes, or for other reasons, the Parts

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Compensation Factor may be revised, subject to review. The Distributor may apply for an initial establishment or revision of the Parts Compensation Factor by preparing detailed data regarding the expenses required for importing JAC Parts by ship, and covering the past six months or more. Preparation of the data will be as per the following example chart or relevant chart. If the Distributor cannot present such data to JAC, JAC itself will determine the Parts Compensation Factor, taking into consideration those of competitors, and/or those applied to neighboring countries and/or equivalent countries.

Chart for Application for Parts Compensation Factor Establishment or Revision:

Application for Parts Compensation Factor Establish/Revision

Distributor's name:		Date:
Requested Parts Compensation Factor:

voice No.&Date			Total
Cost			Total

FOB China
Exchange Rate
Sea Freight
Insurance
Import Tax
Custom Duties
Total expenses
Total cost
Applicant Name:	Title :	Signature:

Note: The distributor is requested to attach all materials necessary to support the chart above.If the attached materials are in languages other than English, they should be translated into English.

1-8 Labour Charges for Warranty Services

The charge for labour shall be based on the Warranty Hourly Labour Rate established by JAC, multiplied by the Labour time standard

(1)Labour time standard: determined by JAC in consideration of the proficiency of serviceman

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(2)Warranty Hourly Labour Rate:

The Warranty Hourly Labour Rate is determined by JAC in consideration of the following factors in the Territory:

A)If legal regulations govern the labour rates of mechanics in the Territory, Distributor must give to JAC reference materials with a full English translation attached.

B)Economic circumstances and trends;

Consumer price index trends over the past 12 months

Wage trends over the past 12 months for mechanics and workers in manufacturing industries.

C)Warranty hourly labour rate offered by a competitive manufacturer to its distributor. (3)Establishment or Revision of Warranty Hourly Labour Rate

In order to support the factors above, Distributor shall submit to JAC an application letter together with information on competitors, such as is shown in the Examples below:

Example 1 : Competitor's information

Distributor's name:					Date:
Survey Place:
	Sold quantity	Market		Hourly labor rate
Brand	in last 12	Market
Brand	in last 12	share	Warranty	Start date	Retail	Start date
	months	share	Warranty	Start date	Retail	Start date
	months
Toyota
Honda
VW
GM

Applicant Name:	Title :	Signature:
Example 2 : Mechanic’s Average Wage Chart

Distributor's name:		Date:

Dealer Name

Deal

code

Locati

Technicia

quantity

Average

Payment

Rate(US$/

Retail labor Rate(US$/ H)

Gross last 12 months(US$)

	Wage	Earnin
	Wage	gs
		gs

Warranty payment last 12 months

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Applicant Name:

Title :

Signature:

1-9 Timing of Warranty Service

The Distributor shall perform Warranty Service promptly when so requested by the customer and within the warranty period.

1-10 Place of Warranty Service

Warranty Services shall be performed in the Distributor's service department or that of a Dealer authorized by the Distributor. However, in the case of special services (of which examples are indicated below) the Warranty Services may be undertaken outside of the Distributor's or Dealer's service department, by a competent outside service shop.

Examples of special services:

a. Cylinder Block	Boring, Honing, Refacing
b.Cylinder Head	Refacing
c.Flywheel Refacing
d.Crankshaft	Grinding of journals

1-11 Transient Owners Service

The Distributor and Dealer shall perform prompt and courteous service for any Vehicle owner regardless of where the Vehicle was sold. This is to develop good customer relations and maintain JAC's service reputation.

1-12 Distributor's Own Warranty Policy

If the Distributor wishes to establish any policy deviating from, or extending beyond (but not opposed to) this Warranty Policy, the Distributor must take responsibility at their own expense. The Distributor shall contact JAC and obtain JAC's prior agreement.

1-13 Special Services

When JAC foresees the possibility of a serious defect, JAC may request the inspection, repair or replacement of a given JAC Part. The Distributor shall promptly undertake these repairs in accordance with JAC's service bulletin.

1-14 Pre-Delivery Inspection

As mentioned in the Service Policy, the Distributor shall, prior to delivery to the original purchaser, make a complete inspection and adjustment of the components in accordance with the Pre-Delivery Inspection Form of JAC.

Labour, indirect cost and all other costs incurred in the foregoing Pre-Delivery Inspection work shall be subjected to < After-sales Service Agreement> signed by JAC and distributor.

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PDI Inspection Form—commercial vehicle


Date：	Vehicle Model：				Chassis No.：

Owner Name：		Engine No.：		\

To the Inspection Items Marked as：√= Eligible			×= Abnormal	□=No Items

A Carefully check special requirement of sales contract.

B Appearance checking

1. □cabin（color difference、 scratch、crack）

2.□cargo body（color difference、scratch、crack）

3.□assembly tolerance of cargo body and cabin

4.□front windshield and rear window glass checking

5.□ check rear-view mirror

6.□check left/right head lamp

7.□check front bumper

8.□check front veil

9.□check JAC logo

C tilt the cabin

10.□check cabin lock mechanism

11.□check cabin tilt and support mechanism

12.□check engine appearance （leakage,rust）

13.□check oil level

14.□check muffler rear open(if there is oil)

15.□check power steering oil （oil level,leakage）

16.□check engine belt（fan belt、A/C belt、air compressor belt、power steering belt）

17.□check clearance between fan and radiator

18.□check water level of radiator

19.□check if there is any interface of radiator hose

20.□check steering column(interface, bolt tightened)

21.□check power steering oil pipe(oil leakage,interface)

22.□check brake pipeline（air leakage,oil leakage,interface）

23.□check gear select and shift cable（interface）

24.□check drag rod(interface, joint tightened mark)

25.□check front suspension

bolt

26.□front U bolt pre-tightened mark

27.□check front shock absorber(assemble, oil leakage, interface)

28.□check alternator,starter bolt

29.□check air inlet pipeline (assembly, interface)

30.□check exhaust pipeline (assembly, interface)

31.□check injection pump and pipeline(fuel leakage)

32.□check if radiator touch cabin

D put down the cabin and check inside

33.□check cabin inner and outer decoration rubber.

34.□check interior（surface scratch、assembly tolerance）

35.□check dashboard（surface scratch）

36.□check seat（seat adjust function）

37.□check safety belt

38.□check cluster assembly tolerance

39.□check combination switch assembly tolerance

40.□check A/C,radio, ash tray assembly tolerance

41.□check passenger side fuse box(English instruction)

42.□check roof window

43.□check all doors open function（noise、interface、 assembly）

44.□check all door glass regulator（stag、 low-response）

45.□check cabin carpet,ash tray(any soil, rubbish)

E start engine(make sure gear box at neutral position)

46.□engine start performance

47.□turn on all lights(front,rear and alarm)

48.□check cluster all indicators and reading

49.□turn on A/C and check wind of each switch.

50.□turn on radio

51.□check wiper performance

52.□engine idle speed condition(noise)

53.□hand accelerator performance

54.□check clutch performance(oil leakage, release and engage)

55.□check exhaust pipe and muffler(air leakage, noise)

56.□check air drier and

discharge valve

57.□check exhaust brake

58.□check horn

59.□check accelerator pedal(return response,interface)

60.□check brake master cylinder(air or oil leakage)

61.□check gear box and clutch(noise)

62.□check air filter(leakage)

63.□check air inlet pipe joint with air filter(wrong position)

64.□check brake

pipeline(leakage,interface

)

F turn off engine, check chassis

65.□check steering gearbox(oil leakage,tightened)

66.□check gear box(rust,oil leakage)

67.□check clutch cylinder(leakage)

68.□check drive shaft(rust, balance block, key direction)

69.□drive shaft connecting bolt(tightened mark)

70.□check odometer cable

71.□check battery(connecting wire, leakage)

72.□check fuel tank and lock(open,leakage,rust0

73.□check air tank(rust, leakage)

74.□check rear shock absorber (assembly, leakage,interface)

75.□check rear axle (differential,axle shaft, rust, oil leakage)

76.□check rear suspension bolts.

77.□check rear U bolt (tightened mark)

78.□check front and rear tire bolt(tighten mark)

79.□check tire (scratch, pressure)

80.□check spare tire and rear bumper(interface)

81.□check side guard (assembly,interface,rust)

82.□check cargo body(scratch,rust)

83.□check cargo body U bolt, connecting board(interface,tightened)

84.□check cargo body support wood

85.□check wiring harness(direction, layout)

86.□check wheel rim(rust)

Gmodified section

87. □check PTO (leakage,noise)

88. □check hydraulic cylinder (oil level,leakage)

89. □check hydraulic pipeline(leakage)

90. □check hydraulic control mechanism(easy control)

91. □check cargo body(surface color difference、seal、 rust,assembly）

92. □check cargo body interior(color difference,assembly）

93. □cargo body interior and exterior lights（water）

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PDI Inspection Form—passenger car


Date：	Vehicle Model：				Chassis No.：

Owner Name：		Engine No.：		\

To the Inspection Items Marked as：√= Eligible			×= Abnormal	□=No Items

Appearance and interior

Inspection：

1.□Interior and Appearance defects

2.□Painting, Plating parts and interior decoration

3.□Goods, instruments, spare tire, jack, Operating manual, Maintenance manual and keys with the vehicle

Assemble the protecting parts, disassemble the wheel dust proof and body protective film.

Engine

Inspection：

4.□Engine cover lock and hinges

5.□Battery electrodes

6.□Electrolyte level

7.□Main earth line

8.□Main fuse and spare fuses

9.□Brake liquid and oil-short alarm lamp( including ABS)

10.□The liquid level of the hydraulic clutch

11.□The oil level of the engine

12.□Coolant level and quality

13.□Assisted steering liquid level

14.□A/T oil level．

15.□Window washer liquid level

16.□The degree of tightness of the drive belts(Assisted steering, alternator, compressor )

17.□Accelerator control cable( A/T control cable)

Close the Engine Cover

Operation and Control

Inspection：

18.□The highness and free clearance of the clutch pedal

19.□The highness and free clearance of the brake pedal

20.□Acceleration pedal

21.□Check to the cab fuse and spare fuse.

Turn the ignition switch to the location Ⅰ

22.□Radio adjustment

23.□Radio/Video/CD player and electric antenna

Turn the ignition switch to the location Ⅱ

24.□The check of all the alarm light, ABS, parking brake, oil pressure/ liquid level, alternator, brake fault, SRS, AT gears shifting display, chock blade

25.□AT start protector

Start Engine

Inspection：

26.□Work conditions and the corresponding alarm light of the Battery and starter

27.□Idle speed

28.□Work conditions of front and rear washers

29.□Work conditions of the front and rear wipers

30.□Indicator and automatic release

31.□Danger alarm light

32.□Sidelight and license light

33.□Headlight and distance lamp

34.□Fog light switch

35.□Brake light and reversing light

36.□ Instrument light and dimmer

37.□Ashtray and glove box spotlight

38.□Horn

39.□Cigarette lighter

40.□Operation of the sunroof

41.□Rear defogger and indicator light

42.□Performances of the A/C system in gears (refrigeration, blower)

43.□Circulate switch

44.□Electric windows, master console, doors switches, dividable control switches and automatic switches.

45.□Electric rear mirror

46.□The enactment and inspection of clock

Turn off Engine

Inspection：

47.□Alarm light of “ not off”, turn it off to check

48.□Self-lock of steering wheel

49.□Adjustment of parking brake

50.□Adjustment of the steering wheel angle

51.□Sun visor

52.□Rear mirror

53.□Center lock and remote control equipment

54.□Inner spotlight( 3 position)

55.□License light

56.□Front and rear seat belts

57.□Seat handles

58.□seat backrest angle, adjustment of seat and headrest

59.□Open of the trunk Cover( rear door)

60.□Trunk light

61.□Open of the filler cover and fuel trademark

62.□Adjustment of rear sets

63.□Open and lock of the trunk Cover( rear door)

Open all the doors

Inspection：

64.□Door light

65.□Manual window

66.□Rear child safety door lock

67.□Lubricating the lock/hinge

68.□The assemble inspection

arrangement of the dashboard and door

69.□Close the door to check the assemble

70.□One-shot close down system

Raise the vehicle

Inspection：

71.□Bottom, engine and brake the leakage or damage of the fuel hoses

72.□Amounting of the suspension and bolts

73.□M/T oil level

74.□Oil level of the difference

75.□Oil level of the rear

difference,4WD

Stop the vehicle

Inspection：

76.□Confirm the torque of all wheel nuts

77.□Label of the tire pressure

78.□Tires pressure (including spare tire)

79.□Instrument and jack

Driving test

Inspection：

80.□Driving performance

81.□Noise from inner, suspension and brake

82.□Brake and parking brake

83.□Steering wheel automatic aligning

84.□Liberation and position of the steering wheel

85.□LA/T gears shifting( up, down shifting)

86.□Reading of the odometer and cancel 87.□Navigation system

Final inspection

Inspection：

88.□Automatic failure displayer

89.□Cooling fan

90.□Idle speed/ exhaust

91.□Leakage of fuel, engine oil, coolant and exhaust gas

92.□ Performance of heat start

93.□Check the ABS by ABS inspector

94.□Watch window of coolant

Final Preparation

95.□Clean the inner and outer

96.□Check if there is water in the inner including trunk

*Note: The items listed in the “PDI Inspection Form” may be not included in the vehicles you inspect, so please inspect according to the actual models.

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1-15 Periodic Inspection Service

As mentioned in the Service Policy, the Distributor shall thoroughly inspect and adjust the components during the Periodic Inspection Service mentioned in the Owner's Handbook or in relevant documents.

All costs incurred in performing periodic inspections shall be at the expense of the Distributor.

1-16 Warranty Application

(1)Warranty Service Claim

Application for warranty claim shall be made to JAC by means of the WSC, duly entered in accordance with the Warranty Claim Procedure and signed by a person duly authorized by the Distributor.

(2)Preparation of the WSC

Only one problem per individual Vehicle shall be claimed on each WSC. (3)Period of Submission

Application for warranty claim shall be made to JAC within 30 days after the completion of Warranty Service work.

1-17 Record Retention

As proof of the Warranty Services performed, the Distributor/Dealer must keep on file the following records for the respective period of time indicated below, and when JAC asks to review or be sent such records, the Distributor shall comply without delay. In case local law requires retention of these records for more than the respective period of time stipulated below, they shall be retained accordingly.

(1)Memorandum of Registration Sheet (customer archives) 5 years

The Memorandum of Registration Sheet is an important means of verifying the propriety of Warranty Service, and can be used effectively, for example, in encouraging customers to bring in their Vehicles for periodic inspections, seasonal service campaigns, etc.

(2)Pre-Delivery Inspection Sheet 1 year

The Pre-Delivery Inspection Sheet is a certification that the Vehicle concerned underwent the regular Pre-Delivery Service prior to its delivery to the original purchaser, and was accordingly delivered under certified quality and performance conditions.

(3)Warranty Service Order Sheet, Repair Invoice, and WSC Form 5 years

These are the original documents on which claims for Warranty Service work are based. They are also important in verifying the propriety of claims for Warranty Service work. These documents shall be numbered for easy reference. The numbering index should make reference easy, because JAC will refer to the WSC number when communicating with Distributor regarding warranty claim matters.

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1-18 Decision

JAC shall, upon receipt of an application for a WSC, examine and make a decision as to the reasonableness of said claim, and will notify the Distributor of its decision. JAC reserves the right to make the final decision on the WSC.

1-19 Settlement

The Warranty Service cost shall be settled in U.S. dollars or Chinese yuan, After confirmation and signature in <JAC International Warranty Cost Settlement Request> every month, each month total claim amount will be put directly into the deposit account in DMS. And the distributor can use it according to the service agreement.

1-20 Suspension of Payment

If the Distributor fails to meet its obligations as prescribed in this manual or agreement established with JAC, JAC reserves the right to suspend the payment of claims in the following instances

SECTION 2: Classification of Warranty Service Claims

2-1 Vehicles Warranty

The warranty period and policy for vehicles shall be in accordance with the terms of 《After-sales Service Agreement》or memorandum signed by JAC and the Distributor. Claims for the Vehicles are divided to prior warranty claim and general warranty claim.

《After-sales Service Agreement 》 shall offer certain claim process permission to Distributors. For the claim within distributors’ duty, distributors should provide warranty service to end user then submit claim to JAC. For the claim out of distributors’ duty, distributors should submit pre-authorized claim to JAC for approval then provide warranty service to end user.JAC provides five kinds of Warranty Service Claim (WSC)：

(1) Normal Claim: Claim for the Vehicle in warranty period

(2) Spare Parts: Claim for the spare Part (purchased by customer ) in warranty period .

(3) PDI: Claim for the vehicle fault found in PDI.

(4) Good Will: Claim for the vehicle in special situation.

(5) Service Campaign: Claim for the vehicle with JAC service campaign and no need pre-authorized.

2-2 Parts Warranty

JAC provides warranty coverage on claims relating to genuine JAC Parts installed in Vehicles only to those Distributors who have concluded the 《 After-sales Service Agreement》with JAC. Such warranty shall apply only to genuine JAC Parts, and shall apply only until the earliest warranty period expiration date stipulated in 《 After-sales Service Agreement》

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SECTION 3:Instances Not Covered by Warranties

3-1 General

Non-warranty Scope:

1.Within the warranty period, customer goes to the service stations which are not authorized by both Parties for maintenance; damage caused by using non-genuine parts;

2.Failure in using, maintaining, repairing the vehicles based on the requirements in the Warranty and Maintenance Manual and Owner's Manual, e.g. operating conditions go beyond the specified range, over-speed and overload;

3.Damaged vehicles arising from the use of fuel or oil failing in meeting the requirement or of bad quality;

4.Damage caused by the traffic accidents due to reasons other than quality problem;

5.Damage due to technical specification change, modification, removal of parts and components on the original vehicle by Party B or customer;

6.JAC vehicle Locally manufactured：Damage due to the localized parts arising from design, manufacturing and raw material defects at KD factory or Party B; Components and parts defects or damages caused by improper assembly at KD factory or Party B;

7.No effective invoice and warranty voucher, and failure in proving the vehicle is within the warranty term;

8.Without the consent of both Parties, enlarged damage due to discretionary disposal after the problem occurs;

9.Damages or losses of parts caused by incorrect operation or misuse during transportation, storage and hand-over;

10.Damage due to operation under special conditions, such as for racing, testing and military use;

11.Expenses caused by normal maintenance (regular maintenance), inspection and adjustment (idle speed, oil consumption, CO value, ECU, lights, four-wheel alignment, tire dynamic balance…etc.);

12.Parts which are required compulsively to be replaced in regular maintenance;

13.Lubricating oils, brake fluid, coolant, cleaning fluid and refrigerants in normal wear;

14.Indirect loss (parking fee, travel expense, room and board fee, and work delay reimbursement).

15.Damage due to force majeure（earthquakes, floods, cyclones, hail, etc.）or resulting from fires and other disasters caused by human fault or negligence ;

3-2 KD Parts

Even though the Vehicle is within the warranty period, the KD Parts shall not be warranted, not only for the items set forth in 3-1 above, but also for the following items: (1)Defects in KD Parts caused by Local Parts.

Local Parts are warranted by the Distributor or supplier of the parts, according to the KD agreement or relevant document.

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(2)Defects caused by improper assembly, maintenance, inspection, handling, and so on at a Distributor.

(3)Defects due to negligence in following the instructions provided by JAC, as the occasion demands.

(4)Defects due to negligence in basic JAC Parts handling or operational procedures as mentioned in the technical materials supplied by JAC, based on the Technical Assistance Agreement, or other mutual agreement.

(5)Defects due to modifications or changes in specifications not authorized by JAC.

3-3 Items Not Covered by Warranties (1)Normal Aging or Deterioration

The following cases are not covered by the warranty even if they result from normal Vehicle use or environmental pollution:

a. Rusting or deterioration of the luster of plated parts

b. Discoloration, fading, flawing, rusting, etc., of paint coat c. Aging of rubber parts

d. Discoloration, fading and deformation of leatherette and other trim (2)Expendable Items (Lubricants, Refrigerant, etc.)

The following items, being expendable in normal use, are not covered by the warranty:

a.Fuel

b.Grease

c.Engine oil, manual transmission gear oil, differential gear oil, steering gear oil

d.Antifreeze, coolant, anti-rust and refrigerant

e.Battery electrolyte

f.Brake and clutch fluid

g.Automatic transmission fluid, power steering fluid, transfer gear oil and/or fluid

h.Window washer fluid.

SECTION 4:Parts Warranty

4-1 Parts Warranty Conditions

Genuine JAC Parts installed by the Distributor/Dealer will be warranted according to 《After-sales Service Agreement》 concerning the parts warranty for JAC Parts, such as the Parts Warranty Agreement between JAC and Distributor ("the Parts Warranty"). If the Vehicle warranty is still in force, the genuine JAC Parts thus replaced will be covered for the remaining period of the vehicle warranty. Defects occurring as the result of improper storage of JAC Parts in the Distributor's establishment will not be covered by such Parts Warranty. A Parts Warranty claim must be supported by a copy of the document evidencing replacement by the Distributor/Dealer.

4-2 Processing

The Parts Warranty will be treated in accordance with the general provisions and exceptions of the Vehicle Warranties.

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The processing for such Parts Warranty is the same with normal warranty.

4-3 Battery warranty

1.The warranty period of battery is determined by 《After-sales Service Agreement》, except those without long-term maintenance.

2.Battery cable terminals should be disconnected during prolonged vehicle storage. For more detailed information of battery maintenance please refer to 《 New vehicle storage management guidance》

SECTION 5:Return of Defective Parts

For quality problems analysis, the replaced parts which JAC requires must be returned to JAC in the following ways:

(1)Due to difficult transportation of replaced parts and high cost, in principle we don’t ask for returning replaced parts, only check and destroy them.

(2)For those parts we need to return, we usually ask service staff to carry around or distributor to export (need to confirm who cover the cost). There are two ways of export. 1. Express parcel: Total weight should be less than 5KG, no need for custom clearance.

2. KJ3 declare: Total weight of defective parts should be more than 5KG and should be packed with carton. Shipment packing weight each time should not be more than 100KG (packing in excess of 100KG should be repackaged separately). For the parts more than 70KG, a tray must be used. (tray must be processed and qualified), declared value must be less than 5000 RMB (value of parts should not be too low and tripe total weight could be referenced for value)

(3)The export cost could be paid by distributor, then JAC will pay distributor by service cost settlement. At last the cost will be paid according to agreement confirmed before returning the parts.

SECTION 6:Warranty Policy on special situation

6-1 Transient customers

The Distributor and Dealer shall give prompt and courteous service to any JAC Vehicle owner regardless of where the Vehicle was sold. This is to develop good customer relations and maintain JAC's service reputation as a comprehensive combination of Distributor, Dealer and Manufacturer.

Confirmation of warranty status for transient customers(travel warranty and immigration warranty):

When the Distributor/Dealer is requested to proceed with Warranty Service, he must confirm the Vehicle's warranty status with a valid maintenance manual or a certificate clearly indicating the start date of the warranty from a JAC Distributor or Dealer as well as the periodic and/or mileage-based inspection record stipulated therein.

If the customer can not show the proper certificate or evidence of the warranty, the Distributor/Dealer could not proceed with Warranty Service but should instead offer courteous service on a normal charge basis.

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6-2 Additional Warranty and General Service Outside the Warranty (1)Additional Warranty

Any additional warranty extended by the Distributor, which is not covered by the JAC (manufacturer's) warranty mentioned in the JAC warranty certificate, is the responsibility of the Distributor concerned.

Any expense incurred should be paid by the transient owner in cash who may then request reimbursement from his Selling Distributor/Dealer.

(2)General Service Outside the Warranty

An authorized Dealer shall perform, at the customer's expense, general services which are outside the warranty for any JAC Vehicle transient owner, regardless of where the Vehicle was sold.

SECTION 7:Warranty Audit

7-1 Warranty replaced parts label

1.If some parts has been replaced after providing maintenance service, distributor should fill in replaced parts card after submit warranty claim, the content should be the same with warranty claim and intact, accurate and clear;

2.Fix the replaced parts card to the parts firmly;

3.Use red pen to mark failure position on the parts if could mark.

7-2 Replaced parts Retention

1.The service provider shall set up replaced parts warehouse in the authorized countries or regions and centrally store the replaced parts in the warehouse. The warehouse should have good ventilation and fire conditions;

2.Replaced parts should be divided by months, sorted and stored in an orderly manner for easy inspection or search;

3.The ownership of replaced parts belongs to JAC, the service provider should retain

replaced parts for half a year in principle (if the service agreement conflicts with this, the service provider should report it in advance), and the service provider is responsible for the damage and loss within six months;

4.The starting date for storing replaced parts is the date of warranty claim review.

7-3 Replace parts Inspection

1.JAC releases the list of replaced parts of each market every month;

2.In principle, all the markets are required to carry out inspection of replaced parts within the validity. There are two ways to check

On-site inspection: The service staffs conduct the inspection of replaced parts together with the distributors in field. The replaced parts are checked one by one according to the list. After the inspection, the inspectors and service providers should sign the replaced parts list to confirm;

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2.Submitted: Claim application is submitted and wait for audit by JAC.

3.Checking: Claim application is being checked automatic by DMS.

4.Approved: Claim application has been audited by JAC firstly and waits for auditing old fault part or free maintenance evidence.

5.Refused: Claim application has been refused by JAC, And distributors can not be modified later.

6.Returned: Claim application has been returned by JAC, And distributors can modify and resubmit it

7.Settlement: Claim application has been balanced.

8.Audit Passed: JAC audited the old part or the free maintenance evidence of the claim application and approved.

9.Audit Returned: JAC audited the old part or the free maintenance evidence of the claim application and returned, Distribute can modify and resubmit the claim application later.

10. Audit Refused: JAC audited the old part or the free maintenance evidence of the claim application and refused, Distribute can not modify the claim application later.

1-3 Warranty Claim Tracking Report

The Warranty Claim can be tracked in DMS system. And the distributor can be download the list from DMS system.

1-4 Warranty Claim photo requirement

The attachment of warranty claim should be uploaded by WORD,EXCEL,PDF,JPG, and the following requirements of photo should be met:

Showing the problem clearly and minimum resolution should be 640*480

Photo quantity and description is as below:

Warranty type	Mileage	Failure parts or	Supplier code, part	Voucher photo
Warranty type	Mileage	position	number	Voucher photo
		position	number
Normal claim	√	√	√

First maintenance	√

Spare parts		√		√

Service campaign

PDI claim		√	√

Good Will	√	√	√

Regular maintenance	√

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