Common use of LDB Shrinkage Allowance Calculation Clause in Contracts

LDB Shrinkage Allowance Calculation. The shrinkage allowance takes into account an acceptable volume of Product that may be consumed or written-off in BC due to normal manufacturing and warehousing activities. By allowing this, a manufacturer does not have to fully document each instance of breakage/destruction which may occur. The rate depends on the annual production volume of the manufacturer. The current rate of the LDB shrinkage allowance is 0.5% of Total Calculated Packaged Product Moved in BC for the annual production of packaged spirit and refreshment beverage products' annual production.

LDB Shrinkage Allowance Calculation. The shrinkage allowance takes into account an acceptable volume of Product that may be consumed or written-off in BC due to normal manufacturing and warehousing activities. By allowing this, a manufacturer does not have to fully document each instance of breakage/destruction which may occur. The rate depends on the annual production volume of the manufacturer. The current rate of the LDB shrinkage allowance is 0.51.75% of ‘Total Calculated Packaged Product Moved in BC BC’ for the annual production of packaged spirit wine-other products, and 0.50% for packaged cider and refreshment beverage products' annual production.