1. When a factory receives a total of 3 Orange assessments within 2 years from the last audit date, the factory is placed into Disapproved Status. These assessments could be consecutive and/or combination of 3 Orange assessments. The following condition(s) will put a factory at Disapproved status with
• NO shipment allowed
• All orders cancelled
• The factory is not allowed to receive new orders for at least one year from last audit date