Approved Pallet Types (Standard Use)
Suppliers must use block-style pallets from one of the three approved providers:
- CHEP
- PECO
- iGPS
These are mandatory for all shipments to:
- USA
- Canada
- Mexico
This applies to all deliveries, including Business Centers, e-commerce, and packaging or production sites.
Do not use:
- GMA #1 or Grade A stringer pallets
- CHEP Europe or CHEP stringer pallets
- Corrugated or paperboard pallets
Cross-Border and International Shipping
USA – Canada
- Use CHEP, PECO, or iGPS pallets
- Heat treatment (HT) not required
USA – Mexico
- Use CHEP-HT, PECO-HT, or iGPS pallets
- HT required for CHEP and PECO in both directions
Exporting Overseas
- Use CHEP US-HT pallets or approved Purpose-Built HT pallets
- Pallets must be heat-treated, marked on both long sides, and have moisture content below 19%
Importing from Overseas
- If Costco does not unload: pallets must already be CHEP US-HT, or transferred to CHEP/PECO/iGPS pallets before delivery
- If Costco unloads: containers can be floor-loaded, or use CHEP US-HT or approved Purpose-Built HT pallets
- Moisture content must be below 19%, and ISPM 15 compliance is required
Purpose-Built (Custom) Pallets
Only allowed if:
- Items are oversized
- Fixtures or displays are bolted to the pallet
- Pallet is part of the sale
- CHEP/PECO/iGPS cannot supply pallets
- Overseas factory cannot source CHEP export pallets
Must be pre-approved. Each item and pallet must go through a quality assurance process. Approvals expire seasonally or annually.
Design requirements include:
- Built using PDS (Pallet Design System) software
- Must meet rack strength and deflection limits
- Use new solid wood only – no engineered or recycled wood
- Custom pallets must be stringer-style if made overseas
For approval, send to both [email protected] and [email protected]:
- Justification for using a custom pallet
- Full PDS report showing load specs, deflection, durability
- Contact and vendor details
- Where and by whom the pallet will be made
- Costco item numbers and load weights
Whitewood 48"x40" Block Pallet Requirements
If not using CHEP, PECO, or iGPS, whitewood block pallets must meet strict build specs:
- Machine-built only (no nail guns)
- No paint or markings other than regulatory stamps
- Double-face, perimeter base, full 4-way entry
- Must meet or exceed CHEP/PECO in strength and durability
- New wood only, kiln-dried if softwood
- Moisture content below 19% for international use
Top Deck Requirements
- 11/16" thick boards
- Lead-edge boards must be butted, 5.5" wide minimum
- Minimum 78% deck coverage
- Gaps between deck boards no more than 1.75"
Load Performance
- Must hold at least 3,250 lbs with 0.65" deflection max
- Expected service life of 24+ cycles
- Must pass visual and structural inspection on delivery
Visual Inspection and Rejection Policy
Every pallet is visually inspected at delivery. Costco looks for:
- Clean, dry, uncontaminated wood
- Solid structure and safety
- Compliance with required specs
Pallets are rejected if:
- Damaged, weak, or dirty
- Custom-built and not pre-approved
- Missing required heat treatment or markings
Suppliers are responsible for:
- Delivery refusals
- Transfer to compliant pallets
- Border denials or fees
- Any rework, detention, fumigation, or shipping back to origin
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