by the resolution of AIFFU General meeting
Protocol№ 9 datedApril 17, 2007
of AIFFU freight forwarding activities
GeneralconditionsofAIFFUfreightforwardingactivities (hereinafterreferredtoasthe Conditions) governtheactivitiesofAIFFUmembersonorganization of goodstransportationandareapplicableincasetheyarereferredtoinacontractoffreightforwarding services, in instructions to a freight forwarder or in FIATA documents. By making such references the Parties agree to accept the provisions of these Conditions as obligatory additional conditions to the contractoffreightforwarding services. In case some contract provisions do not correspond to these Conditions, the provisions of the contract will be valid.
I. Order to the freight forwarder.
1.1 Order to the freight forwarder – a document issued to the freight forwarder by a customer, containing instructions on organization and ensuring of international transportation, being either an integral annex to the contract of freightforwarding services, or another single agreement for rendering freight forwarding services.
1.2 Order to the freight forwarder can contain instructions concerning:
· Goods transportation;
· Route of transportation;
· Subject of transportation, goods quantity (weight), additional requirements for transportation;
· Goods storage;
· Other services related to goods transportation and storage -
- Assistance at goods customs clearance;
- Goods processing and marking;
- Insurance execution;
- Other services not prohibited by current legislation.
· Cost of services (price agreement).
II. Execution of order to the freight forwarder according to the contract of freight forwarding services.
2.1. Customer passes to the freight forwarder the right to manage the cargo within the bounds of the order, provides documentation and instructions necessary for contract performance, and the freight forwarder undertakes obligations on cargo delivery in accordance with the instructions received.
2.2. Freight forwarder does not guarantee the exact date of cargo despatch and delivery, if other hasn’t been separately stipulated before.
2.3. Transfer of instructions necessary for performance of contract conditions to the freight forwarder is сonfirmed in the contract of freight forwarding services or in the order to the freight forwarder .
2.4. If at any time of performance of the work by the freight forwarder any hindrances or risks arise or may really arise, which are not a consequence of any fault or neglect on the part of the freight forwarder and which can not be avoided by exercise of reasonable efforts, the freight forwarder may refuse from further performing the contract and make the cargo available to the customer at a place which the freight forwarder may deem safe and convenient.In this case the customer pays to the freight forwarder for the work actually performed and compensates for any additional expenses incurred.
III. Rights and obligations of freight forwarder
3.1. Freight forwarder has a right to:
· in case it is impossible to coordinate his actions with the customer, should the necessity of carrying out additional works (services) in the interests of the customer arise, which had not been stipulated by the contract of freight forwarding or the order, but aimed to effective execution of conditions and instructions, as well as in case of arising any circumstances which threaten safety of the goods, safety of people and environment or which can bring about an average – to act at his own discretion under the condition of following providing the customer with the proof of his actions legitimacy;
· to choose subcontractors, transport means and route at his own discretion, to enter any contract relations both from his name and from the name of the customer without informing him, in case other is not stipulated in the contract or customer’s instructions;
· to cease performance of his obligations under the contract and get payment for actually performed work if, due to customer’s fault, there arise any circumstances which prevent from proper performance of the contract, and/or if a customer changes the initial terms of the contract or instructions so that their execution becomes impossible;
· to check on his own the information about the goods and documents which are transferred to him according to the contract, and in case of revealing a discrepancy in goods and information provided by the customer, to entrust him with responsibility for related consequences (delay, increase of tariff rates, expenses etc.).
· to store cargo without keeping to necessary conditions at customer’s risk and expense in case the consignee or the customer does not accept the goods or some part of it.
3.2. Freight forwarder is obliged:
· to notify the customer about incompleteness of information or documents received and to demand their presentation;
· in case of arising material damage for the customer - to notify him immediately thereof and to coordinate with him all steps necessary for getting the compensation,
· to issue a claim to a third party by whose fault the damage has occurred , in the order provided for by the legislation of Ukraine,
· to confirm all unexpected expenses connected with execution of the contract of freight forwarding services by appropriate documents.
IV. Freight forwarder’s liability
4.1. Liability of the freight forwarder applies in case of his direct fault in breaking the terms of the contract that can be manifested in non-performance or improper performance of his obligations under the contract, not taking necessary measures that caused a material damage for the customer. In such a case the freight forwarder is obliged to compensate the customer expenses and damages to the goods, as well as direct financial expenses which appeared as a result of breaking by the freight forwarder of his obligations on ensuring goods transportation.
4.2. Freight forwarder bears responsibility as a carrier when he performs transportation by himself with his own transport means (actual carrier) as well as if he had issued his own transport document or in other way assumed the responsibility for transportation and it was included in the contract (contract carrier), and performs transportation with transport means chartered by him for carriage.
4.3. Scope of liability.
4.3.1. It is freight forwarder’s liability to deliver the goods and ensure its safety. The scope of liability, according to the quantity (weight) of lost or damaged goods, is determined by the norms of international law, Ukrainian legislation, contract of freight forwarding services and may not exceed total market value of the goods as at the time when the freight forwarder assumed responsibility.
4.3.2. Freight forwarder is liable for acts and omissions of third parties, hired by him for performance of the contract of transportation or rendering other services, in the same way as for his own improper acts.
4.3.3. Freight forwarder is not liable for:
· any delay in delivery during performance of the contract, if other is not agreed separately;
· acts of state control bodies (border, customs, veterinary, phyto-quarantine, ecological, sanitary) if freight forwarder asked for and customer has submitted all documents necessary and sufficient for these bodies to perform their duties;
· any fault or neglect of the customer concerning instructions on a specific transportation, as per the provision in paragraph 1 of Article 5.2. of General Conditions;
· handling, loading-discharge of the goods or stevedoring done by the customer himself or by anyone acting on his behalf and in his interests;
· lack or non-correspondence of the packing to the standards unless it is the obligation of the freight forwarder according to the contract of freight forwarding services;
· valuables or dangerous goods if freight forwarder hadn’t been informed thereof at the time of conclusion of the contract of freight forwarding or the order to the freight forwarder;
· increased vulnerability of the goods and its susceptibility to deterioration, namely rotting, evaporation, high sensitivity to cold, heat, moisture, etc., unless the freight forwarder had been informed by the customer about these properties of the goods in the instructions according to the contract of freight forwarding services;
· circumstances which freight forwarder could not avoid and consequences of which he could not foresee (force majeure circumstances);
· indirect losses such as lost profit, loss of market, etc.
4.4. Freight forwarder shall be discharged of any liability under the contract of freight forwarding services and these Conditions unless a claim is asserted to him within 6 months after delivery of the goods or after the date when the goods should have been delivered.
V. Rights and obligations of the Customer
5.1. Customer has all the rights provided for by legislation and by norms of international law regulating freight forwarding activities as well as specified in the contract of freight forwarding services.
5.2. Customer is obliged:
· to guarantee and secure receipt by the freight forwarder, at the time of goods transfer, of all transport and shipping documentation for the goods and detailed information about goods characteristics, brands, weight, volume and quantity, dangerous nature, special transportation conditions, etc., in accordance with the list agreed-upon with the freight forwarder;
· to ensure proper packing, marking, completeness and separation of the goods unless otherwise is stipulated in the contract of freight forwarding services;
· to pay to the freight forwarder in corpore all amounts provided for by the contract without any deductions or delays on account of any possible claim or set-off;
· to pay to the freight forwarder for any works (services) actually performed in accordance with the payment documents presented, regardless of existence of any other payment obligations of the customer to third parties;
· to indemnify a freight forwarder for any proved additional expenses related to performance of the contract, as per paragraph 1 of the Article 3.1 of General Conditions;
· to pay to the freight forwarder for actually performed work and compensate all additional expenses borne by the freight forwarder if the performance of the contract is ceased by freight forwarder owing to circumstances beyond his control, and for which there is documentary evidence.
5.3. Customer shall transfer any information or instructions to the freight forwarder in written only.
5.4. At freight forwarder’s request, customer pays him for freight forwarding services if the freight forwarder is able to prove that not his fault entailed goods delay, damage to or loss of the goods.
5.5. Customer has no right to require from the freight forwarder to perform actions not provided for in the contract of freight forwarding services and instructions attached thereto.
5.6. In case of any change in the nomenclature of goods, destination or dispatch country or other terms and conditions, customer shall promptly notify the freight forwarder thereof. Otherwise, all losses related to absence of such information are chargeable to customer’s account.
VI. Customer’s liability
6.1. Customer shall be liable towards freight forwarder for any loss or additional expenses resulting from inaccurate or incomplete information or instructions given by the customer, as well as for transfer to freight forwarder or any other person for whom the freight forwarder may be liable, of dangerous goods that caused death or physical injury, property damages, caused a harm to the environment or any other loss.
6.2. Customer is obliged to prevent any losses for the freight forwarder due to consequences that may be caused by:
· inaccurate, unclear or insufficient data concerning goods characteristics, packing and marking defects unless this is the responsibility of freight forwarder as per the contract;
· non-fulfilment of requirements of quarantine, sanitary or customs procedures, etc.;
· inaccurate carrying out of technical conditions and rules of loading, stowage, strapping the goods on the certain transport means unless this is responsibility of freight forwarder;
· untimely payments for services provided by the freight forwarder;
· the fact that the freight forwarder is forced, without the proof of his fault, to pay customs or official duties, pay in a deposit, or if any third party claims connected with the execution of obligations of contract with the customer are laid towards the freight forwarder;
· other reasons which entailed losses that the freight forwarder hadn’t been able to foresee.
6.3. If the customer revokes his instructions after the freight forwarder has started their performance, then losses and expenses, caused for the freight forwarder hereupon, shall be covered by the customer.