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Export Forwarding

Export Forwarding. “Compliance, Risk Control and Business Opportunities” Presented by Cameron Roberts, Roberts & Kehagiaras LLP. Did the forwarder offer cargo insurance?. Training & Business Opportunities For Export Forwarders. Exporters Have High Expectations:

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Export Forwarding

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  1. Export Forwarding “Compliance, Risk Control and Business Opportunities” Presented by Cameron Roberts, Roberts & Kehagiaras LLP

  2. Did the forwarder offer cargo insurance? Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  3. Training & Business Opportunities For Export Forwarders • Exporters Have High Expectations: • Provide an exporter with SLI or questionnaire in order to obtain compliance information; • Review the flow and accuracy of the exporter’s documents and make recommendations for improvement; • Where appropriate, invite exporter’s staff to attend seminars and training on AES, etc., and • Ensure compliance and create a shared procedure between the forwarder and exporter. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  4. KEYS to compliance: • Continually document compliance efforts and requests for information in writing. • Remind and refer the exporter, in writing, to sources of compliance materials and provide written reminder to exporter of its duty to be in compliance at all times. • Require the exporter to appoint a key person to receive all compliance information and require the exporter to inform you if that individual leaves the company. • Notify the exporter of any changes to account staff, your Terms and Conditions of Service. • Your company contact should read all hand-outs provided, as well as be prepared to read and save all notices. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  5. Forwarder, Consultant, Expert? • Is the forwarder simply booking the transportation or acting as an expert or consultant? • What services does the exporter, principal party of interest, believe are being provided? • How have you defined the scope of work and services provided? Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  6. KEYS to risk management: • Forwarder must get the exporter to sign an agreement to the forwarder’s “Terms and Conditions of Service.” • Make certain that your customers have notice of and accept Terms and Conditions of Service. Notice of Terms and Conditions of Service can be given to the exporter in many ways, including, but not limited to, the following: Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  7. Notice of Terms and Conditions = Risk Management • FORWARDER SERVICES AGREEMENT: • Require the exporter to execute a forwarder services agreement that includes a forwarder POA, not the other way around. • FORWARDER POWER OF ATTORNEY: • Do not accept an authorization letter or SLI in lieu of the forwarder power of attorney. • SHIPPER’S LETTER OF INSTRUCTION: • Agreement to your Terms and Conditions of Service should be included above the signature line. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  8. Notice of Terms and Conditions = Risk Management • INVOICES: • Make certain that the front of the invoice clearly states your limit on liability and directs the recipient to refer to the reverse Terms and Conditions of Service. This is best done in at least 10 point font and preferably in bold lettering. • OTHER DOCUMENTS: • Into footers of credit applications, fax cover sheets, quotations and proposals sent to your customers. A discrete footer should not interfere with your sales efforts. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  9. Case Example: African Apocalypse • Ocean shipment from Sacramento to Uganda and Senegal; • Cargo delayed, possible deviation; • NVOCC fails to issue a bill of lading, no FF with FMC; • NVOCC fails to get a POA or credit application; • NVOCC collects a higher freight rate; • NVOCC fails to spot currency issue ($) on export invoice or medical supplies with expiration date; and • NVOCC instructs co-loader to hold cargo, no carrier lien. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  10. Case Example: Demurrage Disaster • Forest products in the Sierra Nevada shipped from Oakland to China; • Mismanaged container and chassis pool create per diem, FIFO; • 249 containers arrive in China and consignee refuses to pick them up; • Liability for freight charges, per diem, demurrage. • Liens for non-carriers. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  11. Case Example: Packing & Insurance? • Forwarder offers to pack the used machinery, shipper declines offer; • Forwarder offers cargo insurance, shipper accepts; • An exception is noted after devanning of cargo, but before its delivery. Was the cargo properly blocked and braced for ocean, but improperly handled or packaged for inland carriage? • Will the cargo insurance cover the damage? Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  12. Common forwarder concerns: • Liens; • Per diem; • Demurrage; • Indemnity and • Liability assumed in contract. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  13. The Business Opportunity • Forwarders should offer, in writing, the services of an Export Consultation Team. • Compliance manuals; • Export training; • Post-export audits to spot other compliance opportunities; • Cargo insurance; and • Compliance insurance. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  14. Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

  15. For information contact: Roberts & Kehagiaras LLP Cameron W. Roberts Tel. (310) 642-9800 Fax (310) 868-2923 cwr@tradeandcargo.com www.tradeandcargo.com Presented by Cameron W. Roberts Roberts & Kehagiaras LLP www.tradeandcargo.com

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