NEW SHIPPING ; PACKAGING INSTRUCTIONS FOR REMAN 3500 ENGINE CORES Caterpillar

   December 2001  

NEW SHIPPING & PACKAGING INSTRUCTIONS FOR REMAN 3500 ENGINE CORES

To assure proper core credit for Reman 3500 engine cores, all dealers are requested to follow the new instructions stated below that involves:

? A shipping address change that is effective immediately;
? How to properly mark and tag the cores;
? Provide the core serial number on the Core Credit Request (CCR); and
? That a new "add charge" will be applied to all engine cores that do not have all fluids properly drained. These instructions will be made available in the Reman Products Guide SELD0039 and SELD0040 electronic versions available on the Reman Web Site under a new section called "Special Considerations for 3500 Engines". This specific instruction is not new, but is reemphasized since we will be applying an add charge for noncompliance. This add charge will be administered as a"Labor" add charge that will be set up in the Caterpillar Core Management Information System (CMIS 2). The add charge will be applied to all shipments worldwide.

The add charges will be:
3508 $500.00
3512 $750.00
3516 $1,000.000

Changes should be applied to all new Core Credit Requests (CCR's) entered for shipment and transmitted to the Core Management Information System (CMIS 1 or CMIS 2) starting January 1, 2002.

1. SHIP TO ADDRESS - The new ship to address for 3500 series engines is: Caterpillar Inc. c/o Schilli Distribution 1560 Kepner Drive Lafayette, IN 47905.

2. CORE MARKING PROCEDURES

a. Dealers that do not electronically transmit their CCR documents - Dealers should continue filling out the paper CCR form being sure to include their dealer code, CCR number, part number, inspection results, case number, & core serial number. This form should be securely attached to the engine to avoid loss of documentation during transit of core.

b. Dealers that electronically transmit CCR documents into CMIS system - Dealers no longer have to create an additional paper CCR form. Dealer should tag each
engine with the standard case label required for all cores coming to Corinth. The case label should include the dealer code and case number. The Lafayette case number is 07 and should be in the first two positions of the case number field. The case label should be securely affixed to the engine or engine stand to ensure label does not become separated from the core. Please use a brightly colored label (fluorescent pink for example) similar to the one shown below:

c. We recommend all dealers to mark each core with your CCR number, dealer code and case number using a paint pen or permanent marker. This will ensure this
information is available if case label does become damaged or lost in transit.

3. SERIAL NUMBER - All CCRs (both paper forms and electronic forms) for 3500 engines should include core serial number. The serial number accurately identifies the specific core to correct CCR within CMIS system.

4. DRAIN ALL FLUIDS - Please refer to the Core Acceptance Criteria for 3500 Engines concerning the draining of all fluids from cores. This includes removing all filters and covering the exposed openings. There will be add charges applied for non-compliance of this requirement. Leaks and spills during transportation are very serious. Dealers are liable for clean up cost or damage resulting from in transit leaks or spills. Also, from an environmental protection standpoint, dealers are reminded and requested that 3500 Engine cores be shrink-wrapped to prevent oil washing off, if subjected to rain. Please note, these are not new requirements, but a reminder of the need to assure that oil is not allowed to contaminate while in-transit or in storage.

If you have any questions regarding these changes, call the Reman Customer Satisfaction Hot Line toll free at (888)-88-REMAN, or use our E-mail address Reman_Help@cat.com.