December 2015
Transcription
December 2015
December 2015 www.bifa.org BIFAlink The magazine of the British International Freight Association Issue: 304 INSIDE 6: News Improved UK-EU rail links next year The implementation of e-AWB – See pages 10-11 Follow us @BIFA 9: Good Practice The importance of incorporating the BIFA STC 12: Legal Eagle Iranian sanctions: what will remain in place? 17: Events Finalists announced www.bifa.org BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 Fax: 020 8890 5546 Web site: www.bifa.org E-mail: bifa@bifa.org A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363 Director General Robert Keen r.keen@bifa.org Manager Policy & Compliance Robert Windsor r.windsor@bifa.org Policy & Compliance Advisor Mike Jones m.jones@bifa.org Member Services Manager Spencer Stevenson s.stevenson@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Administration Controller Jane Robinson j.robinson@bifa.org Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Robert Keen, Robert Windsor, Mike Jones, Spencer Stevenson, Sharon Hammond, Becky Thurtell Regional Consultants to BIFA Scotland Jim McCall j.mccall10@btopenworld.com North West, Midlands & Northern Ireland Paul Young youngyes@aol.com North East (Humber, Yorkshire, Tyne Tees) Geoff Stark grstark@grstark.karoo.co.uk South (London West, Solent, SW England & S Wales) Colin Young young_colin.t21@btinternet.com London East, Anglia, South East Paul Newman – paul@pnauk.com Subscription rates: UK £40 Rest of the World £52 Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional. December 2015 Robert Keen’s Column BIFAlink Many great entries vie for awards Firstly my congratulations to the finalists in the BIFA Freight Service Awards for getting to the last stage of the competition. I look at as many of the entries as I can and I always feel a pang of regret that so many great entries, that have taken a lot of time and effort to put together, do not make the final four places. Of course, in any race you cannot have all of the competitors crossing the line together but it is good to see excellent contributions from a wide range of BIFA Members. In turn, this assists us in promoting the industry when we can talk about the excellent ways that our sector brings innovation and professionalism to the supply chain. It is the same with the Young Freight Forwarder Award where it is an individual rather than a company. We had over 20 entries this year, and again many outstanding candidates, but eventually the judges chose a winner who will be announced next January. Tickets are on sale for the awards lunch on 21 January 2016 at our regular venue, The Brewery in Chiswell Street, London, and I hope to catch up with many of you there. The BIFA Standard Trading Conditions are the main strength of the Association but we cannot emphasise enough the importance of ensuring that you can demonstrate they have been incorporated in your contracts. A BIFA Member ran across a particularly cantankerous judge in the county court recently and before the Member could lay out the facts, the judge demanded evidence of incorporation. Although there had been a course of dealing for many years, the judge would not accept this and judged the case under common law, finding against the BIFA Member. Fortunately such cases are rare but in the county court you have to get it right first time as the cost of an appeal is prohibitive. We have again printed good practice information on the incorporation of the BIFA STC in this edition. I am sure regular readers have seen similar articles in the past but, at the risk of repeating myself, I cannot emphasise enough the importance of incorporation. My apologies for talking yet again about the problems at Calais, but unfortunately the media has moved on to other topics while drivers are still running the gauntlet of would-be stowaways. Earlier this year we congratulated the government on the building of security fences to protect cross-Channel truckers, yet as I write the Freight Transport Association (FTA) has tweeted a short video taken one mile inside the new security fence showing would-be migrants swarming around trucks in the queue. Another video has an interview with a driver threatened with a gun. Rest assured that we continue to press the case for greater action by the government, but this is one of the most frustrating issues we have been involved with for a long time. Finally, as it is December, we hope that you enjoy a few days away from the pressures our industry can throw at you. In the 1970s I did a Customs clearance on Christmas Day that was supposed to be an AOG, but I saw the box unopened at the customer warehouse when I visited a couple of weeks later. I think the buyer just wanted to throw his weight around! Warm wishes for a Happy Christmas and New Year from all of us at the Secretariat. Robert Keen Director General Annual BIFA Membership subscriptions The time of year when BIFA asks for your continued support is fast approaching. Trade Subscriptions for 2016 will be dispatched to you during December. Alongside your Renewal Notice you will receive the Company Declaration, which must be signed and returned to BIFA. Before you sign the Company Declaration we would like to remind you to ensure the information contained is correct or amended accordingly. Once again, after careful consideration, the subscription rates will remain unchanged for 2016. We would appreciate payment as soon as possible after 1 January 2016 when a receipted VAT invoice will be issued. Remember that prompt payment keeps administration charges down and this is to the benefit of every Member. Please contact Jane Robinson – Membership Supervisor (j.robinson@bifa.org 020 8844 3635), or Spencer Stevenson – Member Services Manager (s.stevenson@bifa.org 020 8844 3634), at the Secretariat if you have any questions. 3 BIFAlink www.bifa.org News Desk Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business 21 boxships launched as idle vessel numbers rise Ocean freight A total of 21 containerships were delivered in October with capacities ranging from 936 teu to 19,870 teu, according to Alphaliner, with the largest vessel, the 19,870 teu Al Nefud, being delivered to the United Arab Shipping Line (USAC). The shipping consultancy also reported that for the first time since 2010, the fleet of idle containerships of more than 500 teu has climbed to more than 1 million teu. In a move intended to allow European shipping to stay abreast of developments, European shipowners have widened the scope of the former ECSA Piracy Working Group, which has been renamed ECSA Maritime Security Working Group. Topics under its remit range from piracy and armed robbery at sea to cyber security and the Mediterranean humanitarian crisis The requirement making container weight verification a condition for vessel loading becomes legally binding on July 1, 2016. The UK Maritime and Coastguard Agency has now confirmed the application process to become a Verified Weigher, which must be submitted by e-mail to container.weight @mcga.gov.uk Portside A giant vessel bearing five megamax quayside cranes (pictured) sailed up the River Mersey in early November destined for the new Liverpool2 container terminal, completing the final stage of its voyage from China. The new cranes mark the start of a new era for the Port of Liverpool as the most visible element of Peel Port’s £300 million investment to create the UK’s most centrally located deepwater container terminal. The official opening of a £60 million investment to extend Felixstowe’s deepwater quay by 190 m means it can cope with two megaships of 400 m in length rather than just one. Overland Trade links between the UK and mainland Europe will be strengthened as Network Rail joins the RFC North Sea-Med management board, with plans announced to extend the Rail Freight Corridor North SeaMediterranean to London, Amsterdam, Zeebrugge and Marseille by November 2016. 4 In the air Heathrow airport has unveiled a blueprint to double its cargo capacity and halve cargo processing times through a £180 million investment in facilities and processes. The plans include a specialist pharmaceutical storage area. Heathrow says it will work with businesses, airlines, IATA, HM Revenue & Customs and the Department for Transport to fully implement e-freight at Heathrow and become one of the first airports to become 100% digital. There will also be a new truck parking facility for over 100 vehicles, offering secure parking, access control, toilets/showers and dining facilities. The International Air Transport Association (IATA) has released data for global air freight markets showing very modest growth in September. Measured in freight tonne kilometres, air cargo volumes rose 1% compared with the same month a year ago. This is a slight improvement on the August performance when volumes were broadly stable. Overall, however, air cargo volumes remain 1.2% down from their 2014 year-end peak. The volume of containers transported by the Trans-Siberian railway (TransSib) to and from China rose by 89% between January and October to 66,000 teu, compared with the same period a year earlier, according to Russian Railways. In Business EU and Chinese trusted traders will enjoy lower costs, simplified procedures and greater predictability in their activities, thanks to a landmark mutual recognition agreement that came into force in November 2015. The agreement commits the EU and China to recognising their trusted trader programmes (certified safe traders). The benefits for trade, as outlined by the DG TAXUD and the Chinese Customs, include fewer security and safety related controls and priority treatment at Customs clearance. November saw George Osborne agree to meet Kent MPs to discuss the funding of a long-term alternative to Operation Stack and the issues caused by the traffic jams that build up when there is disruption at the Channel Tunnel. The Transported Asset Protection Association (TAPA) has called on manufacturers to drive more resilient supply chains as incidents rise 10.6% in the third quarter of 2015 in the Europe, Middle East and Africa (EMEA) region. December 2015 simplifying the supply chain FOR YOUR BUSINESS I Multi-modal Job Booking Facility I Customer Relationship Management I Accounts Management & Reporting I Warehousing Management I e-Doc File Management Facility I Microsoft Office Integration FOR YOUR BUSINESS nFOR Multi-modal Job Booking Facility YOUR CUSTOMERS nI Customer Relationship Management Shipment Tracking & Milestones nI Accounts & Reporting Job BookingManagement Facility nI Warehousing Management Purchase Order Creation & Tracking nI e-Doc FileStock Management Facility Warehouse Management nI Microsoft Office Integration KPI Reporting FOR YOUR CUSTOMERS n Shipment Tracking & Milestones boxto p.net BIFAlink www.bifa.org News Desk Within the UK, rail is very much the forgotten mode – it is passenger dominated and capacity is limited and difficult to access. If you talk about rail to Europe it is usually in the context of freight traffic being put on the Eurotunnel services. This may be about to change as trade links between the UK and mainland Europe are improved by the extension of the Rail Freight Corridor (RFC) North SeaMediterranean. By November 2016 the corridor will be extended to London, as well as to Amsterdam, Zeebrugge and Marseille. In preparation for this significant development, Network Rail has joined the RFC North Sea-Mediterranean management. This development will allow more trains to run between the UK and mainland Europe, linking the UK via the Channel Tunnel with France, Belgium, Luxembourg, Holland and Switzerland. The North Sea ports will be linked via rail and water transport with some of the most important markets in Western Europe and the Mediterranean. Not only does the service provide better freight paths for operators, but there will also be better co-ordination and information sharing regarding infrastructure, maintenance and repair work within this corridor. For approximately three years BIFA has highlighted that a globally applicable amendment to the Safety of Life at Sea (SOLAS) regulations has been passed. From 1 July 2016, the shipper of an export container is required to provide a verified gross mass to the ship’s master or his/her terminal representative before it can be loaded on board a vessel. The ultimate sanction is that unless this weight has been provided, the carrier is not legally allowed to load the container onto the vessel. It should be emphasised that the provision of this accurate weight is already required in the UK. The Maritime and Coastguard Agency (MCA) has advised trade that an application to become a ‘verified weigher’ should be submitted by e-mail to container.weight@mcga.gov.uk. This application should be submitted along with the supporting documents and procedures given in section 2 of the checklist that is contained within the guidelines published at www.gov.uk/government/ publications/verification-of-thegross-mass-of-packed-containers -by-sea. The guidelines also provide a copy of the original, surprisingly brief, SOLAS amendment and its supporting annex. Whilst not mentioned within either of these links, BIFA feels that any party considering applying to become a weigher should also read MGN 534, which also provides guidance on the implementation of the SOLAS VI Regulation 2 amendment . The resourcing implications to support applications are under discussion at the MCA and will be in place shortly, well before the entry-into-force date of 1 July 2016, and will ensure that UK exports are not affected. Courtesy of the Port of Felixstowe Improved UK-EU rail links to be operational next year MCA confirms application process for becoming a verified weigher Much of the EU’s transport policies focus on removing lorries from the road network and it is anticipated that this is a step in the right direction. Each freight train carries the equivalent of 60 lorries. A gallon of fuel will move a tonne of goods 246 miles by rail, but only 88 miles by road, thus reducing harmful emissions of greenhouse gases. Network Rail has highlighted that the network is now carrying 30% more freight than it did in 2012. More information is contained within EU-Regulation 913/2010. Update on UCC Implementing and Delegated Acts The European Commission has advised that no objections have been raised by the European Parliament and Council regarding the Union Customs Code (UCC) Delegated Act (DA). Neither of the two institutions have asked for an additional delay of two months as legally permitted. Both the Parliament and Council had until 21 October to reject the proposed DA and the lack of objection means that the DA will now pass into law. After discussions within the Customs code committee on 29 and 30 October, some minor textual changes were agreed. At the time of writing, the Commission was expecting the adoption of the Implementing Act by the member states in the coming weeks. A final draft has been circulated among the national administrations for consideration. The Commission believed that the Implementing Acts would be formally adopted by the Customs code committee on 6 November. The IA/DA will then be sent for translation and ready for publication before the end of 2015. FIATA publishes container weighing ‘toolkit’ An initiative to provide all FIATA Members with a comprehensive guide to mandatory changes regarding the verification of container weights, due to be introduced in July 2016, was announced by the Working Group Sea Transport at the FIATA Multimodal Transport Institute 6 held in September 2015. The toolkit is a guidance document covering the background to the changes and an overview of the new legislative requirements. There is a detailed analysis of various contractual scenarios when the forwarder transacts with shipping lines or with other parties, and it concludes with a ‘next steps’ section giving helpful advice to FIATA members on dealing with stakeholders in their own countries. BIFA Members can download the FIATA SOLAS guidance from www.bifa.org/information/container -weighing-solas December 2015 www.bifa.org News Desk Young Regional Freight Forwarder award presentation BIFA Regional Seminar – East Anglia Preparing for the Union Customs Code and Container Weight Verification As reported in the October issue of BIFAlink, the overall winner of the Young International Freight Forwarder 2015 was announced at the FIATA World Congress in September as Daniella Smal of Zambia, representing the Africa/ Middle East region. Europe was represented by the UK winner, Jenifer Taylor of Santova Logistics. Jenifer is pictured above receiving her regional trophy and certificate from Mike Yarwood (right), TT Club, and Sharon Hammond (left), BIFA. Are you ready for challenging consumers? The Consumer Rights Act 2015 came into play on 1 October this year. All businesses selling products or services to consumers are affected. A number of existing laws have been replaced by the Act, which gives both the consumer and businesses clearer rights and responsibilities BIFAlink Most of the significant changes deal with commodities. However, a service issue we have identified is that terms and conditions can be challenged if deemed unfair or if significant parts are hidden in the small print. Members should be aware of the review and examine their contracts to ensure that they meet the Consumer Rights Act 2015. Regular readers will be aware of many articles over the years dealing with the incorporation of the BIFA STC and the need to go the extra mile with private individuals. This topic is explored further in the article in this magazine titled Good Practice: Incorporating the BIFA STC (page 9). BIFA will be holding a conference commencing at 10.00 hours at the Pontlands Park Hotel, West Hanningfield Road, Great Baddow, Chelmsford CM2 8HR, to update its Members and other organisations on significant regulatory changes being introduced during 2016. The Union Customs Code, which comes into force on 1 May 2016, has a significant impact on all Customs regimes and considerably increases the importance of authorised economic operator (AEO) accreditation. The second piece of legislation impacting on trade is the requirement to provide an accurate ‘verified’ weight to the carrier before any container can be loaded onto a vessel. It is anticipated that the event will conclude at approximately 4 pm. To reserve your place at what will be a popular event, please contact your regional representative, Paul Newman, on paul@pnauk.com The Limits of Liability for Carriers By sea – Hague Visby rules (2 SDR): £1.81per kg £604.32 per package In association with By road – CMR (8.33 SDR): £7.55 per kg Proud to be sponsoring the 2015 BIFA Award for Project Forwarding +44 (0) 1628 532 613 December 2015 www.peter-lole.co.uk By air – Montreal Convention (19 SDR): £17.22 per kg By air – Warsaw Convention (17 SDR): £15.41 per kg BIFA STC: (2 SDR): £1.81 per kg (The SDR rate on 17 November 2015, according to the IMF website, was 0.906479) 7 BIFAlink www.bifa.org Legal Eagle Forwarders at risk if distributing for a manufacturer outside of the EU Back in February we carried a warning in BIFAlink from solicitors Pysdens regarding forwarders that act on behalf of third-country manufacturers in the distribution of products. This could also apply to forwarders with ‘pick and pack’ operations If you act on behalf of an entity outside the EU as a fiscal representative and you distribute products on its behalf, a risk arises if an item malfunctions or causes damage. Trading Standards authorities can pursue a UK company acting on behalf of a party outside the UK if an item, or items, handled by the forwarder adversely affects the end user. This could happen if the forwarder was the only party within the EU 8 handling the goods. The legislation has been in place for a number of years but to our knowledge it has only recently been used. Representations to EC Under direction from the BIFA Legal and Insurance Policy Group, we have been working on this all year making representations to the Department of Business, Innovation and Skills (BIS). Our representations are relayed to the European Commission. We have been seeking an amendment to the legislation to remove forwarders from this risk by arguing they are simply performing a transport function. Initially we were encouraged by the responses we received. However, the latest indications from the European Commission are that it considers freight forwarders who engage in activities going beyond mere transportation (such as assembling, picking or packing) do have obligations under EU product safety legislation. We understand that situations would need to be considered on a case-by-case basis to determine exactly how such a forwarder is categorised, bearing in mind the activities it is undertaking and the legislation applying to the products in question. This means that enforcement authorities such as Trading Standards could treat such forwarders as having, at least, the obligations of a distributor. BIFA Members should be sure that if dealing with a supplier from outside the EU, where they are performing a distribution or pickand-pack activity, that their liability insurer is aware of the full scope of the activity being undertaken. December 2015 www.bifa.org Good Practice Incorporating the BIFA STC Many BIFA Members will have heard this advice before and it has been a constant theme in BIFAlink over the years – but it is still vital that staff are aware of the importance of incorporation of the BIFA STC in their contracts Incorporation of the BIFA Standard Trading Conditions (STC) can be likened to the rules of the game of freight forwarding. If you play any game without understanding the rules, you are likely to lose. Playing according to the rules does not guarantee that you will always win but incorporation of the BIFA STC can assist in limiting your exposure should something go wrong, and create contractual obligations upon your customer that can protect you. The purpose of this article is to highlight the importance of incorporation of the BIFA STC into contracts and to guide BIFA Members in good practice so that the STC are not undermined by a lack of understanding. Incorporation Your first task is always to make sure that the BIFA STC are incorporated into contracts with your customer. This means that before the contract is concluded, the other party needs to have accepted and agreed to be bound by the STC. It is very easy to conclude a contract either orally and/or in writing – all you need is an offer that is accepted for which value passes, such as an agreed price. Therefore, be sure to refer to the application of the STC as early as possible, and preferably in the body of any quote offered. On first contact with a customer or prospective customer, be sure to confirm on all letterheads, quotations, invoices, faxes and e-mails that: “All business of the company is transacted under the current edition of the Standard Trading Conditions of the British December 2015 International Freight Association.” If you have a credit application form, ensure that there is a clear reference to the BIFA STC so that you have your customer’s signature accepting that they are incorporated at the earliest stage of trading. Make sure that the reference to the STC states that the credit is offered subject to the customer’s acceptance of the BIFA STC applying to all business to be conducted by you for it. If you simply refer in a credit application to the application of STC, this may be taken to apply only to the credit agreement and not to all business conducted between the two of you. It is also prudent to send, without delay, a copy of the BIFA STC by postal recorded delivery, or e-mail, requesting a receipt of sending, to the company secretary or managing director of your customer drawing attention to the fact that the conditions can limit your liability. Any verbal quotations or bookings that are made or received should have a clear reference to the fact that they are subject to the application of the BIFA STC and should always be confirmed in BIFAlink writing. This must be done (preferably by fax or e-mail) before any work is undertaken, and confirmation of receipt by your customer (preferably in writing) is essential to ensure it is clear that the BIFA STC are incorporated in the contract. You should not rely on the BIFA STC being printed on the reverse of invoices as evidence of incorporation, as an invoice is usually submitted after the event. It is important to note that the Unfair Contract Terms Act 1977 has a test of reasonableness that includes a number of guiding points including whether the parties have equal bargaining power, which is decided by reference to a number of indicators such as whether each party was free to contract elsewhere, and is not necessarily based only on difference in size of the parties. However, be sure when dealing with a private individual acting as a consumer that you make greater efforts to explain the BIFA STC in detail and ensure the customer understands and agrees to them, as the Unfair Terms in Consumer Contracts Regulations 1999 prevent reliance on terms if they are not individually negotiated beforehand. The regulations do not apply to individuals not acting as consumers. The BIFA Good Practice Guide ‘A Guide to Dealing with Personal Effects’ should be read in conjunction with this aspect of incorporation of the BIFA STC. This was published in the May 2015 edition of BIFAlink or can be downloaded from www.bifa.org > Information > Good Practice Guides Advice and Information The Association is here to help you in any way it can. Whilst BIFA members of staff do not have legal training, they can often assist with commercial questions and source appropriate advice for you. However, any such assistance given and flowing from this guide will be subject to the disclaimer appearing in this magazine. 9 BIFAlink Policy & Compliance The implementation of e-AWB Take-up of electronic air waybills is improving but it is still not meeting IATA targets. Now IATA is introducing measures to simplify the process for low-volume forwarders The IATA figures for September showed that global electronic air waybill (e-AWB) penetration has gained momentum in reaching 34.1%, an increase of 2.4% on the previous month and the second 10 consecutive month of encouraging growth. However, even if this trend continues it is still likely to be short of IATA’s goal of 45% by the end of 2015. To address one of the identified issues, IATA has recently announced that it will launch a new, simple form-fill e-AWB portal for low-volume freight forwarders. This entry-level tool is designed to offer basic e-AWB and e-CSD services www.bifa.org and is expected to be launched by the end of March 2016. Mixed reactions This announcement has been greeted with mixed reactions and some IT suppliers have spoken out against the decision, arguing that the answer should be more awareness of current systems rather than additional products on the market. Some small and medium-sized freight forwarders have acknowledged that e-AWB is simply not a priority for them currently, but the problem is less about the lack of systems available than it is about process complexity and the perceived value of participation. Freight forwarders and freight software providers are also concerned about the lack of any December 2015 www.bifa.org joined up approach to implementing XML messaging and feel that IATA should publish more information about the airlines who can receive (or are in the process of developing) XML, and how they can receive it (which interfaces, etc). Currently there is no standardised platform for communicating with the airlines and some airlines and transit sheds are still unable to accept XML format messages. Others are using CargoIMP rather than XML, but different versions of software can lead to extended data being stripped away during the translation process. Mixed reactions To address some of the inconsistencies, IATA is encouraging the use of an e-AWB Service Level Agreement (SLA) that December 2015 Policy & Compliance will allow parties to adopt a set of conditions for implementing the Multilateral e-AWB agreement. Service and quality levels can be agreed between the airline and the freight forwarder who wish to use electronic exchange of data to document and execute agreements for the carriage of cargo. The SLA can be used to specify the exact message types and versions to be used and the nature of the messages required. The Multilateral e-AWB agreement provides a single standard agreement that airlines and freight forwarders can sign once with IATA, removing the need to sign multiple, individual agreements, and allowing them to start using e-AWBs with other parties to the agreement. IATA has also recently announced the roll-out “single process” which permits freight forwarders to follow the same process regardless of any regulatory or operational requirements. The airline determines when a paper AWB needs to be produced to comply with destination requirements. This can accelerate the rate of e-AWB adoption. Benefits of e-AWB and e-freight Although there are still differing opinions as to why e-AWB penetration is slower than expected, there is general agreement that the potential benefits of e-AWB and e-freight should not be overlooked. Organisations already transmitting e-AWBs find that the risk of lost documents or data entry errors are eliminated and they report that the benefits can include; BIFAlink increased productivity, reduced costs, improved customer service, increased levels of security, reduction of cycle times, improved data quality and environmental responsibility through reduction of their carbon footprint. IATA views the adoption of e-AWB as a critical stepping stone to the industry’s ultimate vision for supply chain optimisation via e-freight, which will see the complete removal of physical documentation from air cargo. The development of e-freight will also encourage forwarders and airlines to change their processes, allowing a smoother transit of cargo and reduced dwell times. This may well be the critical development that enables air freight to advance and prevent further erosion of business by other transportation modes. 11 BIFAlink www.bifa.org Legal Eagle Iranian financial sanctions Financial sanctions made it tough for companies wanting to trade in Iran, export to Iran, or transfer funds to Iran. Now sanctions are set to be relaxed, but forwarders should be aware that some restrictions will remain in place BIFA is grateful to solicitors Andrew Jackson for permission to reproduce this article that first appeared in their legal update. The E3+3 (UK, France, Germany, Russia, China and US), the EU and Iran reached a comprehensive agreement on 14 July 2015 about Iran’s nuclear programme. This agreement is called the Joint Comprehensive Plan of Action (JCPOA). The JCPOA marks the end of over a decade of negotiations. It allows for the lifting of all UN Security Council sanctions. It also allows multilateral and national sanctions related to Iran’s nuclear programme to be relaxed. This is a huge milestone for companies that wish to trade in or with Iran. 12 However, the JCPOA has not affected some areas. Sanctions remain in force relating to the sale, supply, transfer or export of the following items: • Military goods of all kinds, • Dual-use items as listed in Annexes I and II of the regulation, • Key equipment and technology for the oil and gas industry as listed in Annexes VI and VIA of the regulation, • Key naval equipment as listed in Annex VIB of the regulation, • Software for integrating industrial processes as listed in Annex VIIA, • Graphite and raw and semifinished metals as listed in Annex VIIB, • Newly minted banknotes and coins, • Technical assistance, brokering services and financial assistance related to the above, • The import, purchase or transport from Iran of military goods of all kinds, and of dual-use items (as listed in Annexes I and II of the regulation), • The import or purchase of crude oil or petroleum products which are located in or which originated in Iran, and provision of related financial assistance including insurance and re-insurance, • The purchase, transport or import of natural gas that is located in Iran or which has been exported from Iran, and provision of related financial assistance or brokering services, • The granting of any loan or financial credit to, the acquisition or extension of a participation in, or the creation of a joint venture with, any Iranian entity or person engaged in: – the manufacture of military goods or dual-use items (as listed in Annex I or II of the regulation), – the exploration or production of crude oil and natural gas, the refining of fuels or the liquefaction of natural gas, – the petrochemical industry, – uranium mining, uranium enrichment and reprocessing of uranium. Despite these remaining sanctions, the JCPOA has made a dent into an area of commerce that had been highly restricted. It is a positive step for businesses keen to trade in countries suffering political unrest. It is worth noting that it is not only Iran that has sanctions in force. For example, Russia has similar sanctions in effect. Always seek advice before trading in such countries. You can obtain general information from the Department of Business, Innovation and Skills, or by contacting a solicitor experienced in this field. December 2015 BIFAlink www.bifa.org Legal Eagle The migrant crisis and its effects on forwarders and customers Adrian Marsh looks at how the migrant crisis is affecting the supply chain and the legal position of those with goods delayed or deemed contaminated With daily news coverage on the European migrant crisis and its humanitarian and economic impact, the issue of illegal immigration and clandestine entry is firmly in the public conscience. There has been an unprecedented increase in migrants attempting to cross the Channel this year with thousands camped in Calais and Coquelles waiting for an opportunity to reach the UK, whether via the ports or the Channel Tunnel. With most cargo carried into the UK via these French ports, it is relevant to look at the impact this has had on freight forwarders, retailers, wholesalers and manufacturers and the supply chains. The extent of the problem To tackle clandestine entry, extra measures such as security checks at border crossings and improved physical security at the Eurotunnel terminal are being employed. UK Border Force and the French authorities have prevented more than 39,000 attempts to cross the Channel illegally in 2014/2015, and the Eurotunnel alone has blocked 27,000 attempts since January. The potential for physical damage and contamination to goods by clandestine entry into a 14 Miles of lorries in England queue for the Eurostar crossing to France during Operation Stack. trailer is clear and the extra measures in place may reduce the risk. However, with these extra measures come extra delays in transportation time which is impacting upon cargo interests’ supply chains and in some cases resulting in the loss of goods. The problem has recently been further exacerbated by the temporary closure of the Eurotunnel and the actions of the striking French dockworkers. was unreasonable in all of the circumstances or that the haulier failed to comply with an agreed delivery date and, further, that the delay caused financial loss. Given the situation faced by hauliers at the French border crossing, it is perhaps unlikely that liability will attach if the delays were unavoidable. However, even if cargo interests can establish a claim against the haulier on the face of it, that claim will be limited under Article 23(5) of the Convention on Legal position Deliveries can be affected in one of three ways: delay to the supply chain, reduced quality of goods or contamination. Cargo interests (and their insurers) who suffer may wish to consider recourse against their hauliers. However, any such recourse is not clear cut and cargo owners should be aware that they may not be able to recover their full losses in any event. the Contract for the International Carriage of Goods by Road 1956, to the haulier’s carriage charges. Delay in delivery Cargo interests must establish either that the duration of the transit Quality of goods Delay in delivery of perishable goods, such as fresh produce, could lead to a shortened shelf-life or a significant reduction in the quality of the goods. This may be treated as damage and the limitation for delay under Article 23(5) may not apply. Rather, damages will be calculated based on the market value of the goods at the time of collection, subject to a limitation of liability under Article 23(3) of CMR, calculated at the rate of 8.33 SDRs per kilo. Contamination Problems also arise where migrants manage to enter the freight vehicle. The breaking of a security seal or TIR cord and clandestine entry into a vehicle carrying cargo intended for clinical use or human consumption, such as medical devices, pharmaceuticals or foodstuffs, often leads to the immediate rejection of the entire load. Cargo interests, mindful of brand issues and the strict regulatory framework, are not usually prepared to take any risk, given the potential for contamination. However, the rejection of cargo in the absence of evidence of contamination or physical damage often leads to disputes between cargo interests and their logistics providers, who are only liable for the diminution in value of the cargo caused by damage (in other words adverse physical change) during the December 2015 www.bifa.org transit. Claims arising out of cargo destroyed as a result of a risk of contamination are likely to be rejected by hauliers and their insurers on the basis that the cargo was destroyed as a result of a fear of loss/damage and not as a result of actual loss or damage. Where does this leave importers? To successfully claim against the haulier, cargo interests must first establish that the cargo has actually suffered damage or contamination. In a claim for delay only, losses will be limited to the carriage charges. Cargo owners (and their insurers) would be well advised to appoint a surveyor at the earliest opportunity to inspect the cargo and identify any evidence of damage or contamination. A joint inspection with the haulier’s appointed surveyor is preferable as it may avoid arguments at a later date over the condition of the cargo. However, whilst an inspection of the cargo may help cargo interests to mitigate any loss and identify evidence of any damage or contamination, it is unavoidable that some cargo owners will feel that their commercial interests and duty to their customers remains best served by rejecting the entire load. An inspection may not completely discount the risk of contamination and consumers would not wish to consume food or pharmaceuticals that have been carried in a vehicle for several days with numerous stowaways. Clandestine migration attempts have been a very real issue for hauliers, insurers and importers for many years, and will continue in the future. While there are avenues of recourse to help cargo interests limit the impact of the financial losses, these are unlikely to place them in a neutral position. Early consideration must be given to the best way of mitigating this situation taking into account both the legal and practical realities. We thank Adrian Marsh of Hill Dickinson for allowing the reproduction of this article. December 2015 Legal Eagle BIFAlink Failure to present bill of lading: the carrier’s right to discharge The London Commercial Court heard a dispute between an Iranian shipper and a shipowner over the delivery of an iron ore cargo, which had resulted in the vessel being arrested BIFA is grateful to solicitors Hill Dickinson for permission to reproduce this article which first appeared in the October edition of their magazine In Transit Sang Stone Hamoon Jonoub Co Ltd v Baoyue Shipping Co Ltd (The ‘Bao Yue’) [2015] A cargo of iron ore was shipped from Iran to China under a bill of lading which was issued ‘to order’, with no named consignee or notify party. An Iranian company, which had contracted to sell the cargo to a Chinese company, was the shipper of the cargo and was named as shipper on the bill of lading. The vessel arrived at the Chinese discharge port but nobody presented the bill of lading to take delivery. The reason was that there was a dispute between the Iranian shipper and the Chinese buyer as to what sum (if any) remained to be paid in respect of the cargo. The shipper kept possession of the full set of original bills of lading. The shipowner arranged for the cargo to be discharged into a warehouse fairly near to the discharge port. The warehousekeeper was entitled under its contract to exercise a lien (with a power of sale) in respect of unpaid storage charges. The shipper never tried to present the bill of lading to the warehousekeeper nor to pay the storage charges. Instead, the shipper arrested the shipowner’s vessel (in India) on the basis of an alleged claim for damages for delivery of the cargo without production of an original bill of lading. By the time the claim came to be heard in the Commercial Court in London, the shipper’s claim was no longer based on an allegation of delivery without production of the bill of lading, but instead proceeded on the basis that the shipowner was liable in conversion because it had, without the authority of the owner of the cargo (the shipper), allowed a lien over the cargo to be created in favour of a third party (the warehousekeeper). Alternatively, it was argued that various things said or written amounted to a denial of the shipper’s right of access to the cargo. Both aspects of the claim failed. On the facts, there had been no denial of access – the cargo remained available on presentation of the bill of lading and payment of the accrued storage charges. So far as the creation of the lien was concerned, the bill of lading expressly permitted the discharge and storage of the cargo. In any event, even if there was no express provision in the bill of lading, there was under the wellestablished general law of bailment an implied right to discharge and store the cargo if the bill of lading holder failed to take delivery. The creation of a lien was a reasonable and foreseeable incident of the storage contract which the shipowner was impliedly authorised to conclude. The shipper must therefore have been taken to have authorised the creation of the lien. The shipowner successfully counter-claimed for storage charges, which amounted to in excess of $2 million, and the London Commercial Court ordered that the shipper deliver the original bill of lading to the shipowner to enable the cargo to be sold. 15 BIFAlink www.bifa.org News from Members That’s my livery! Every month we get advised by BIFA Members of scams or other underhand activities that they want their industry colleagues to be aware of. Here are a couple that have come to our attention recently A BIFA Member was surprised recently when a staff member spotted one of its sign-written delivery vans that had been returned to the leasing company some time ago. The Member had an agreement with the van leasing company that, upon reaching the end of the agreement, he would get new vans and the signwriting on the returned vehicles would be removed. In this case it was not and the van was being used by an owner/driver who had purchased it still in the old livery. If you lease vehicles in this way, remember to ensure your livery is completely removed at the end of the agreement. “Pay us to ensure you are compliant” The other item is the old ruse in which a fraudulent supplier misrepresents legislation and offers a remedial solution that the buyer does not need, but falls for thinking it is official. Solicitors Pysdens recently assisted a BIFA Member Support your local Member group BIFA holds Regional Member meetings around the UK and listed right are those due to occur soon. If you would like to attend and find out more about BIFA and what we do, then contact the appropriate Regional Consultant to BIFA. All BIFA Members are entitled and encouraged to attend their regional meetings however pre-booking with the named contact is essential. Full contact details are shown on page 3 of this issue. Region Date Time Venue London East Tue 1 Dec 1015 Orsett Hall, Orsett Regional Members’ meeting Yorkshire Tue 1 Dec 1830 Torque Logistics Regional Members’ meeting Southampton Tue 8 Dec 0800 Duke of Wellington Regional Members’ meeting Regional Seminar Teesside Tue 8 Dec 1000 Middlesbrough Hotel, Preparing for the UCC and Container Weighing Middlesbrough Regional Seminar Yorkshire Wed 9 Dec 1000 Best Western Preparing for the UCC and Container Weighing Cedar Court Hotel, Bradford Heathrow Wed 16 Dec 1400 Redfern House, Feltham Regional Members’ meeting Heathrow Thu 28 Jan 1400 Redfern House, Feltham Regional Members’ meeting Regional Seminar Anglia Thu 28 Jan 1000 Pontelands Park Hotel, Preparing for the UCC and Container Weighing Chelmsford BIFA Regional Seminars – North East England – Preparing for the Union Customs Code and Container Weight Verification The following events have been scheduled in the North East of England: • Humber Region - Thursday 19 November, 1000 hrs and 1400 hrs 16 with such a case and BIFA is grateful for their comments. A letter looks like it comes from HM Revenue & Customs (HMRC) but actually it does not. In the body of the letter it says that “as our company is not affiliated with a public authority or any official entity this entry is subject to a charge”. This is a misrepresentation Some letters seen by Pysdens have law firm details on and the associated website says the firm is licensed to trade – all the references are to ‘lawyers’ ‘law firm’ and ‘counsel’ but none of the people concerned are registered solicitors or barristers and because they are not held out as solicitors or barristers there is nothing wrong with what is being done – but everything is designed to make the recipient think they are dealing with qualified and licensed legal practitioners. In one case, the tell-tale pointers were that the website showed an incomplete trading address and the same phone number for all listed personnel, which was a mobile. The easiest way to check whether someone is qualified is to run a check on the Bar Council’s website and the Law Society’s website. This type of scam is as old as the hills but it is worth reminding staff as new people are continually joining the industry who may be unaware of such practices. Pysdens Solicitors are a BIFA Associate Member BIFA Contact Paul Newman Geoff Stark Colin Young Geoff Stark Geoff Stark Colin Young Colin Young Paul Newman • Middlesborough – Tuesday 8 December, 1000 hrs • Bradford – Wednesday 9 December, 1000 hrs Booking is essential. Contact Regional Consultant Geoff Stark (grstark@ grstark.karoo.co.uk) to secure your place. December 2015 www.bifa.org Events The BIFA Awards 2015 Winner Judging Panel BIFA Awards 2015 finalists BIFA is delighted to announce the 44 finalists, representing 31 BIFA Member companies, who made the shortlist of four finalists for each of the 11 categories of this year’s BIFA Freight Service Awards competition. Well done also to all other Members that took the time to enter submissions of the utmost quality, but were unfortunate not to ‘make the cut’. The finalists of the 2015 competition are as follows: General categories Project Forwarding Award, sponsored by Peter Lole & Co: CEVA Freight (UK); Expeditors International (UK); Greenshields Cowie & Co; Worldwide Energy Logistics. Specialist Services Award, sponsored by Forward Computers: Customs Clearance; Dynamic International Freight Services; Priority Freight; World Transport Agency. Staff Development Award, sponsored by Albacore Systems: 512 (Sheffield); Espace Europe; Uniserve Group; Unsworth Global Logistics. December 2015 Supply Chain Management Award, sponsored by BoxTop Technologies: Ligentia UK; MIQ Logistics; Uniserve Group; Woodland Group. Sustainable Logistics Award, sponsored by Red Recruit: Atlantic Pacific Global Logistics; Estuary Logistics; Priority Freight; Unsworth Global Logistics. Individual category: Young Freight Forwarder Award, sponsored by Virgin Atlantic Cargo: Daria Banks – Banks & Lloyd (Shipping); Nicolas Barrois – World Transport Agency; Liam Byrne – ACC Freight Management; James Mears – Ital Logistics. Modal categories: Air Cargo Services Award, sponsored by IAG Cargo: 512 (Sheffield); Brunel Air Cargo; Greenshields Cowie & Co; Trans Global Freight Management. European Logistics Award, sponsored by TT Club: ACC Freight Management; Eurogate Logistics; Ital Logistics; PSL Freight. Ocean Services Award, sponsored by Cargoguide International: 512 (Sheffield); Brunel Shipping; Ideal International; Panalpina World Transport. Specialist Categories: Cool Award, sponsored by American Airlines Cargo: IJS Global (UK); James Cargo Services; Kuehne + Nagel; Panalpina World Transport. Extra Mile Award, sponsored by Descartes: DSV Road; Ital Logistics; Moto Freight; PSL Freight. BIFA is very pleased to have received an excellent response once again this year, especially for the Specialist Services and the new Extra Mile Award categories, which proved the hardest to judge. The former award demonstrates the ever-growing importance of ancillary/add-on services to our industry, which are BIFAlink not necessarily modal-specific, whereas the latter award proves our long-held conviction that freight forwarding is often all about going the extra mile for both existing and new customers. BIFA is also pleased to announce the winner of the Young Freight Forwarder category prize draw. The prize, supplied by the category sponsor, Virgin Atlantic Cargo, is two return flights to New York. All candidates that registered in this category and submitted all the required documentation by the deadline date were entered into the draw. The winner is Hugo Cabos Larroya of Damco UK. BIFA wishes to thank all the category sponsor representatives, and independent judges that gave up a morning of their time in midNovember to contribute to the selection of the 11 category winners (see photo, left). The victors will be revealed at the BIFA Awards Ceremony Luncheon to be held on Thursday 21 January 2016 at The Brewery, Chiswell Street, London, EC1. BIFA is delighted that the country’s premier traffic and travel reporter, Sally Boazman, will be hosting the ceremony. Renowned throughout the UK as BBC Radio 2’s ‘Sally Traffic’, after working with the likes of Steve Wright, Johnnie Walker, Ken Bruce, Jeremy Vine and Chris Evans, she has become known as the woman who changed the face of traffic news. Millions now tune into her informative and witty bulletins, and she has been voted “one of the most attractive female voices on UK radio” in a Radio Times poll. As BIFA’s flagship event, the Awards ceremony is selling out fast, so do not delay in booking as the venue has a limited seating capacity. The cost is £97.50 + VAT per ticket for a three-course lunch, wines and coffee, with a discount of 10% offered for bookings of 10+ tickets. Please make your reservation by completing the booking form in this issue of BIFAlink, or online at bifa.org/awards > Book now 17 BIFA Freight Service Awards 2015 Ceremony When: Thursday 21st January 2016 NOT TO BE MISSED! Where: The Brewery, Chiswell Street, London EC1 • Chat over pre-lunch drinks • Congratulate the finalists • Enjoy fine food and wines • Be entertained by the celebrity host • Be among the first to find out the winners • Watch the category sponsors present the trophies • Network with industry colleagues over a glass or two Times: 12.00pm 12.45pm 1.00pm 3.00pm 3.15pm 4.00pm Drinks Reception Presentation of Finalists’ Certificates Seated luncheon Guest speech by Sally (Traffic) Boazman Travel Reporter, BBC Radio 2 Awards Ceremony presentation Networking (bar open until 5.00pm) The 2014 BIFA Award winners BIFA’s flagship event – the annual Awards Luncheon Ceremony attended by over 500 professionals from the logistics industry Event Host: Sally (Traffic) Boazman Travel Reporter, BBC Radio 2 Tickets: Further information: Individual tickets are available at £97.50 + VAT for a three course luncheon, including wines and coffee Please contact the BIFA Events Office E: eventsoffice@bifa.org T: 020 8844 3641 A 10% discount is offered for full table bookings: ie. £877.50 + VAT for 10 tickets; £1,053 + VAT for 12 tickets Tickets can be purchased online at: bifa.org/awards > Ceremony > Book Tickets Payment accepted by BACS, cheque or credit card (excluding Amex) @BIFA_Awards #BIFAFSA2015 BIFA Freight Service Awards 2015-16 11 Award Categories Ticket Booking Form BIFA Freight Service Awards Ceremony Luncheon. Thursday 21st January 2016 The Brewery, Chiswell Street, London EC1Y 4SD 12.00pm – 4.00pm (Bar open until 5.00pm) Your Details Surname Forename Title (Mr/Mrs/Miss/Ms/Other) Membership number Company Address Telephone Postcode E-mail (Direct) Your Booking Requirements Ticket /Table Price includes: 3 course luncheon, wine and coffee Total number of tickets or tables Cost (All prices exclude VAT) Per ticket £97.50 Per table for 10 people £877.50 inc. 10% discount Per table for 12 people £1,053.00 inc. 10% discount Total Your Payment Details Cheque payment (made payable to BIFA) Credit card payment (Note. we regret Amex cards are not accepted) £ + VAT If you wish to pay by credit card, please call BIFA with your card details: Sharon Hammond on 020 8844 3629 or Selina Doyle on 020 8844 3628 Booking Terms & Conditions BACS payment Bank Sort Code: 60-08-46 Account No: 8122 5970 (Note. You will receive your VAT invoice in the next few days.) Account Name: British International Freight Association Reference: FSA15 The full ticket cost will be chargeable for cancellations made less than 10 working days before the Ceremony luncheon. I have read the ‘Terms & Conditions’ as stated above and accept the policy regarding ticket cancellations. Signature Date Please return your completed form and payment to: Events Office, BIFA, Redfern House, Browells Lane, Feltham, Middlesex TW13 7EP T: +44 (0)20 8844 2266 F: +44 (0)20 8890 5546 E: eventsoffice@bifa.org www.bifa.org Training BIFAlink Training courses: December 2015-February 2016 AIR CARGO (REGULATED AGENTS) SECURITY TRAINING NEW level OLD Level CASP A/B CO D COS E CS F CM G Air Cargo Security – CASP (Cargo Aviation Security Principles) Air Cargo Security – CO (Cargo Operative) 2 December Feltham, West London 14 December Feltham, West London 13 January Feltham, West London 27 January Feltham, West London 17 February Feltham, West London 23 February Feltham, West London Air Cargo Security – COS (Cargo Operative Screening) Air Cargo Security – CS (Cargo Supervisor) Air Cargo Security – CM (Cargo Manager) 15-16 December Feltham, West London 13-14 January Feltham, West London 17-18 February Feltham, West London Air Cargo Security – Refresher CASP (am only) 8 December Feltham, West London Air Cargo Security – Refresher CO (am session) and Refresher COS (pm session) 1 December Feltham, West London Air Cargo Security – Refresher COS (am session) 28 January Feltham, West London 24 February Feltham, West London Air Cargo Security – Refresher CS (am session) and Refresher CM (pm session) 10 December Feltham, West London Air Cargo Security – Refresher CS & CM (pm session) 28 January Feltham, West London 24 February Feltham, West London Aviation Security Cargo X-Ray Operator Available as an in-house course, contact BIFA to schedule a date Aviation Security NXCT NB – test session only – no training takes place 14 December Feltham, West London 26 January Feltham, West London 29 February Feltham, West London Known Consignor Air Cargo Security (pm only) 8 December Feltham, West London CUSTOMS PROCEDURES Customs Procedures for Export Cargo (CM1) 1 December Feltham, West London Customs Procedures for Import Cargo (CM2) 2 December Feltham, West London BTEC Intermediate Award in Customs Export & Import Procedures (CM3) – NB: attendance required on all five dates 1, 8, 15, 22 Feb & 7 Mar Feltham, West London Radioactive Goods by Air – Revalidation (DGA4) See www.bifa.org/training for future presentations Infectious Substances by Air (DGA5) See www.bifa.org/training for future presentations Carriage of Lithium Batteries by Air, Road & Sea (modules available individually) 28-29 January Feltham, West London FREIGHT FORWARDING AND INTERNATIONAL TRADE Customs Import Entry & Procedures (CM6) See www.bifa.org for future presenations Exports for Beginners (EXP1) 25 January Feltham, West London 3 February Midlands DANGEROUS GOODS Imports for Beginners (IMP1) 4 February 11 February Dangerous Goods by Air (DGA1) 7-9 December Feltham, West London 4-6 January Feltham, West London 11-13 January Manchester 11-13 January Midlands 1-3 February Glasgow 1-3 February Leeds Bradford 8-10 February Feltham, West London 22-24 February Manchester Dangerous Goods by Air – Revalidation (DGA2) 10-11 December Feltham, West London 7-8 January Feltham, West London 14-15 January Manchester 14-15 January Midlands 4-5 February Glasgow 4-5 February Leeds Bradford 11-12 February Feltham, West London 25-26 February Manchester Midlands Feltham, West London Introduction to Air Cargo (AC1) See www.bifa.org for future presentations BTEC Intermediate Award in Multimodal International Freight Procedures (MFT1) - NB: attendance required on all five dates 12, 19, 26 January, 2 + 16 FebruaryFeltham, West London Sea Freight: The Basics (SF1) 10 February Feltham, West London Introduction to Letters of Credit See www.bifa.org for future presentations ONLINE COURSES Dangerous Goods by Road – Revalidation (DGR2) Days 2 and 3 of the above Dangerous Goods by Road course (DGR1) The following Air Cargo Security courses are available online to Regulated Agents at initial and refresher levels: •Cargo Aviation Security Principles (CASP) •Cargo Aviation Security Principles – Driver (CASP-D) •Cargo Operative (CO) See bifa.org/training to register Dangerous Goods by Sea (DGS1) 21-22 January Feltham, West London 25-26 February Midlands Known Consignors – courses covering the modules required by Known Consignors are also available online. Dangerous Goods by Road (DGR1) 18-20 January Feltham, West London 22-24 February Midlands Dangerous Goods Safety Adviser (DGSA) 29 February – 4 March Feltham, West London 29 February – 4 March Manchester Radioactive Goods by Air (DGA3) See www.bifa.org/training for future presentations To view course content or to make a booking, go to www.bifa.org and click on training BIFA is a member of: #BIFATraining 20 December 2015
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