For new vendor/factory, all compliance requirement, upon boarding and evaluation process will be retained unchanged. The only change will be the Li & Fung to social security & audit used to be conducted by Li & Fung auditor, from July 1-2016, will assign to 3rd party-BV or ITS. FE reports, comments on CAP and final FE approval will still handle by LF VCS. For Kohl's account, the same as current practice, no audit fee at vendor's end-users will be incurred unless due to circumstances, such as the late notice of cancellation or rescheduling, audit and/or repeatedly failure in audits due to poor/no corrective action taken where we may consider to charge back. After completion of LF audit and Kohl's final approval of vendor/factory onboarding, Kohl's Social Compliance team will assign 3rd party for another round of audit directly. This type of audit, vendor/factory will be responsible for all the audit fee incurred.
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