diff --git a/irs-api/src/main/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegate.java b/irs-api/src/main/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegate.java
index 68c4f32ee4..231b6d5b31 100644
--- a/irs-api/src/main/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegate.java
+++ b/irs-api/src/main/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegate.java
@@ -42,6 +42,7 @@
 import org.eclipse.tractusx.irs.edc.client.EdcSubmodelFacade;
 import org.eclipse.tractusx.irs.edc.client.RelationshipAspect;
 import org.eclipse.tractusx.irs.edc.client.exceptions.EdcClientException;
+import org.eclipse.tractusx.irs.edc.client.exceptions.UsagePolicyException;
 import org.eclipse.tractusx.irs.registryclient.discovery.ConnectorEndpointsService;
 import org.eclipse.tractusx.irs.util.JsonUtil;
 
@@ -112,17 +113,22 @@ private void processEndpoint(final Endpoint endpoint, final RelationshipAspect r
             aasTransferProcess.addIdsToProcess(idsToProcess);
             itemContainerBuilder.relationships(relationships);
             itemContainerBuilder.bpns(getBpnsFrom(relationships));
+        } catch (final UsagePolicyException e) {
+            log.info("Encountered usage policy exception: {}. Creating Tombstone.", e.getMessage());
+            itemContainerBuilder.tombstone(
+                    Tombstone.from(itemId.getGlobalAssetId(), endpoint.getProtocolInformation().getHref(), e,
+                            0, ProcessStep.USAGE_POLICY_VALIDATION, jsonUtil.asMap(e.getPolicy())));
         } catch (final EdcClientException e) {
             log.info("Submodel Endpoint could not be retrieved for Endpoint: {}. Creating Tombstone.",
                     endpoint.getProtocolInformation().getHref());
             itemContainerBuilder.tombstone(
                     Tombstone.from(itemId.getGlobalAssetId(), endpoint.getProtocolInformation().getHref(), e,
-                            retryCount, ProcessStep.SUBMODEL_REQUEST));
+                            0, ProcessStep.SUBMODEL_REQUEST));
         } catch (final JsonParseException e) {
             log.info("Submodel payload did not match the expected AspectType. Creating Tombstone.");
             itemContainerBuilder.tombstone(
                     Tombstone.from(itemId.getGlobalAssetId(), endpoint.getProtocolInformation().getHref(), e,
-                            retryCount, ProcessStep.SUBMODEL_REQUEST));
+                            0, ProcessStep.SUBMODEL_REQUEST));
         }
     }
 
diff --git a/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegateTest.java b/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegateTest.java
index cb49659bb2..3b060bd29e 100644
--- a/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegateTest.java
+++ b/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/RelationshipDelegateTest.java
@@ -25,6 +25,7 @@
 
 import static org.assertj.core.api.Assertions.assertThat;
 import static org.eclipse.tractusx.irs.util.TestMother.jobParameter;
+import static org.eclipse.tractusx.irs.util.TestMother.jobParameterCollectAspects;
 import static org.eclipse.tractusx.irs.util.TestMother.jobParameterUpward;
 import static org.eclipse.tractusx.irs.util.TestMother.shell;
 import static org.eclipse.tractusx.irs.util.TestMother.shellDescriptor;
@@ -47,6 +48,7 @@
 import org.eclipse.tractusx.irs.component.enums.ProcessStep;
 import org.eclipse.tractusx.irs.edc.client.EdcSubmodelFacade;
 import org.eclipse.tractusx.irs.edc.client.exceptions.EdcClientException;
+import org.eclipse.tractusx.irs.edc.client.exceptions.UsagePolicyException;
 import org.eclipse.tractusx.irs.edc.client.model.SubmodelDescriptor;
 import org.eclipse.tractusx.irs.registryclient.discovery.ConnectorEndpointsService;
 import org.eclipse.tractusx.irs.util.JsonUtil;
@@ -63,10 +65,6 @@ class RelationshipDelegateTest {
     final String singleLevelBomAsBuiltAspectName = "urn:bamm:io.catenax.single_level_bom_as_built:2.0.0#SingleLevelBomAsBuilt";
     final String singleLevelUsageAsBuiltAspectName = "urn:bamm:io.catenax.single_level_usage_as_built:2.0.0#SingleLevelUsageAsBuilt";
 
-    private static PartChainIdentificationKey createKey() {
-        return PartChainIdentificationKey.builder().globalAssetId("itemId").bpn("bpn123").build();
-    }
-
     @Test
     void shouldFillItemContainerWithRelationshipAndAddChildIdsToProcess()
             throws EdcClientException, URISyntaxException, IOException {
@@ -190,4 +188,31 @@ void shouldCatchJsonParseExceptionAndPutTombstone() throws EdcClientException {
                 ProcessStep.SUBMODEL_REQUEST);
     }
 
+    @Test
+    void shouldCatchUsagePolicyExceptionAndPutTombstone() throws EdcClientException {
+        // given
+        final ItemContainer.ItemContainerBuilder itemContainerWithShell = ItemContainer.builder()
+                                                                                       .shell(shell("", shellDescriptor(
+                                                                                               List.of(submodelDescriptorWithDspEndpoint(
+                                                                                                       singleLevelBomAsBuiltAspectName,
+                                                                                                       "address")))));
+
+        // when
+        when(submodelFacade.getSubmodelPayload(any(), any(), any())).thenThrow(new UsagePolicyException("itemId", null));
+        when(connectorEndpointsService.fetchConnectorEndpoints(any())).thenReturn(List.of("connector.endpoint.nl"));
+        final ItemContainer result = relationshipDelegate.process(itemContainerWithShell, jobParameter(),
+                new AASTransferProcess(), createKey());
+
+        // then
+        assertThat(result).isNotNull();
+        assertThat(result.getTombstones()).hasSize(1);
+        assertThat(result.getTombstones().get(0).getCatenaXId()).isEqualTo("itemId");
+        assertThat(result.getTombstones().get(0).getProcessingError().getProcessStep()).isEqualTo(
+                ProcessStep.USAGE_POLICY_VALIDATION);
+    }
+
+    private static PartChainIdentificationKey createKey() {
+        return PartChainIdentificationKey.builder().globalAssetId("itemId").bpn("bpn123").build();
+    }
+
 }
diff --git a/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/SubmodelDelegateTest.java b/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/SubmodelDelegateTest.java
index 0578826baa..312113d974 100644
--- a/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/SubmodelDelegateTest.java
+++ b/irs-api/src/test/java/org/eclipse/tractusx/irs/aaswrapper/job/delegate/SubmodelDelegateTest.java
@@ -65,10 +65,6 @@ class SubmodelDelegateTest {
     final SubmodelDelegate submodelDelegate = new SubmodelDelegate(submodelFacade, semanticsHubFacade,
             jsonValidatorService, new JsonUtil(), connectorEndpointsService);
 
-    private static PartChainIdentificationKey createKey() {
-        return PartChainIdentificationKey.builder().globalAssetId("itemId").bpn("bpn123").build();
-    }
-
     @Test
     void shouldFilterSubmodelDescriptorsByAspectTypeFilter() {
         // given
@@ -222,4 +218,8 @@ void shouldCatchRestClientExceptionAndPutTombstone() throws SchemaNotFoundExcept
                 ProcessStep.SCHEMA_REQUEST);
     }
 
+    private static PartChainIdentificationKey createKey() {
+        return PartChainIdentificationKey.builder().globalAssetId("itemId").bpn("bpn123").build();
+    }
+
 }