Cylinder Rental Policy
Cylinder Rental Policy
1. Overview
Kovco (Pty) Ltd operates a cylinder rental system to enhance tracking and accountability of refrigerant cylinders. Each cylinder has a unique serial number, allowing full tracking and verification of rental periods. This system is managed by an independent IT development house, which maintains the rental records and applies a percentage charge on all rentals.
2. Rental Process for Account Customers
a. Customers are invoiced only for the refrigerant.
b. A separate Rental Note is issued, listing the cylinder numbers and the date taken.
c. Rental is charged monthly, invoiced in arrears on or near the first day of the month.
d. A monthly report is provided by the independent IT company, detailing rental charges for each cylinder.
3. Grace Period & Rental Charges.
a. The month in which the cylinder is taken is rental-free (e.g., if taken in January, no rental is charged for January).
b. The following month is also rental-free (e.g., if the cylinder is not returned in February, no rental is charged for February).
c. If the cylinder is still not returned by the end of February, a full month's rental will be charged in March for the entire month.
d. Rental will continue to be charged monthly until the cylinder is returned or reaches the maximum rental period of 44 months.
e. After 44 months, the cylinder is considered written off, and no further rental charges will apply.
4. Cylinder Condition & Refurbishment.
Cylinders supplied by Kovco (Pty) Ltd form part of a managed cylinder pool and must be returned in a serviceable condition suitable for reuse. If cylinders are returned damaged, excessively rusted, modified, contaminated, or otherwise requiring refurbishment, Kovco (Pty) Ltd reserves the right to charge the customer for the costs associated with restoring the cylinder to serviceable condition.
Such costs may include cleaning, internal flushing, valve replacement, sandblasting, pressure testing, certification, or other required servicing as required by the cylinder owner or appointed service provider.
5. Non-Return Valves.
Cylinders are supplied with non-return valves fitted for safety and contamination control. If a cylinder is returned with the non-return valve removed, damaged, or tampered with, Kovco (Pty) Ltd reserves the right to charge the customer for cleaning, flushing, valve replacement, and any associated labour required to restore the cylinder to safe operating condition, including any servicing required by the cylinder owner or appointed service provider.
6. Use of Cylinders
Cylinders supplied by Kovco (Pty) Ltd are intended solely for the storage and transport of the refrigerant originally supplied in that cylinder. Cylinders must not be used for refrigerant recovery, mixing of refrigerants, or storage of any other substances.
If a cylinder is returned containing incorrect refrigerant, mixed refrigerants, recovered refrigerant, oil, moisture, or any other contaminants, Kovco (Pty) Ltd reserves the right to charge the customer for all costs associated with testing, evacuation, cleaning, disposal of contaminated refrigerant, cylinder servicing, and any related losses incurred.
7. Lost Cylinders or Termination of Rental.
a. Customers remain responsible for cylinders while in their possession. If a cylinder is lost, not returned, or the customer wishes to terminate the rental before returning the cylinder, Kovco (Pty) Ltd reserves the right to charge the applicable cylinder replacement value (equivalent to the cylinder replacement or deposit value), together with any outstanding rental charges accrued up to that date.
b. Cylinders are considered returned only once they have been physically received and recorded in the Kovco cylinder tracking system.
8. Cylinder Rental for Cash Sales.
a. A cylinder prepayment rental charge is applied to all cash sales.
b. Upon return of the cylinder, a credit will be issued against the cylinder prepayment rental charge, and the incurred rental will be billed separately.
9. Customer System Access.
The suppliers of the system can provide you with access to the system so that you can on-charge rentals to your customers. There may be a small setup fee, and thereafter, charges will be a percentage of the rental value. You will no longer have cash flow tied up in deposits, with the added benefit of being able to track each and every cylinder that has moved into and out of your warehouse.
10. Refund Policy for Deposits.
a. Existing cylinder deposits are refundable within 12 months of system implementation (1 June 2016).
b. Cylinders returned after 12 months receive a refund minus accrued monthly rental fees beyond the changeover date.