Standard Trading Conditions for Freight Forwarders

PAKISTAN INTERNATIONAL FREIGHT FORWARDERS ASSOCIATION

Region: Pakistan

1. In these Conditions: “Person” includes persons or any body or bodies corporate. “Owner” means the Owner of the goods (including any packaging, containers or equipment) to which any business concluded under these Conditions relates and the consignee or any other Person who is or may become interested in or in possession or entitled to possession of them. “Customer” means any Person at whose request or on whose behalf the Freight Forwarder undertakes any business or provides advice, information or services. A “Freight Forwarder” is one who undertakes forwarding of goods on behalf of his customer, including if necessary, Customs clearance, procurement and coordination of one or more modes of transport. He may also undertake to perform one or more modes of transport.

2. (A). Subject to Sub-Paragraph (B) below, all and any activities of the Freight Forwarder in the course of business whether gratuitous or not are undertaken subject to these Conditions. (B). If any legislation is compulsorily applicable to any business undertaken, these Conditions shall, as regards such business, be read as subject to such legislation.

3. The Customer warrants that he is either the Owner or the authorized Agent of the Owner and also that he is accepting these Conditions not only for himself but also as Agent for and on behalf of the Owner and is authorized in this behalf by the Owner.

4. In authorizing the Customer to enter into any contract with the Freight Forwarder and/or in accepting any document issued by the Freight Forwarder in connection with such Contract, the Owner irrevocably accepts these Conditions and on behalf of any parties that the Owner or their agents may act.

5. (A). Subject to Clauses 13 and 14 below, the Freight Forwarder shall be entitled to procure any or all of its services as an Agent or to provide those services as a Principal. (B). The offer and acceptance of an inclusive price for the accomplishment of any service or services shall not itself determine whether any such service is or services are to be arranged by the Freight Forwarder acting as agent or to be provided by the Freight Forwarder acting as a contracting principal.

6. When and to the extent that the Freight Forwarder has contracted as principal for the performance of any of its services, it undertakes to perform and/or in its own name to procure the performance of those services.

7. When and to the extent that the Freight Forwarder in accordance with these Conditions is acting as an agent on behalf of the Customer, it is acting in a customary manner. The Freight Forwarder shall be entitled to enter into contracts on behalf of the Customer and the Owner.

8. The Freight Forwarder reserves to itself a reasonable liberty as to the means, route and procedure to be followed in the handling, storage and transportation of goods.

9. The Freight Forwarder is permitted to perform any of its obligations herein by itself or by a sub-contractor.

10. (A). Subject to Sub-Clause (B) hereof, the Freight Forwarder shall have a general lien on all goods and documents relating to goods in its possession, custody or control for all sums due at any time from the Customer or Owner.

11. The Freight Forwarder shall be entitled to retain and be paid all brokerages, commissions, allowances and other remunerations customarily retained by or paid to freight forwarders.

12. (A). If delivery of the goods or any part thereof is not taken by the Customer, Consignee or Owner, at the time and place when and where the Freight Forwarder is entitled to call upon such person to take delivery thereof, the Freight Forwarder shall be entitled to store the goods or any part thereof at the sole risk of the Customer.

13. (A). No insurance will be effected except upon express instructions given in writing by the Customer and all insurances effected by the Freight Forwarder are subject to the usual exceptions and conditions of the policies of the insurance Freight Forwarder.

14. (A). Except under special arrangements previously made in writing or under the form of a printed document signed by the Freight Forwarder, any instructions relating to the delivery or release of goods in specified circumstances only are accepted by the Freight Forwarder only as agents for the Customer.

15. Advice and information, in whatever form it may be given, is provided by the Freight Forwarder for the Customer only and the Customer shall not pass such advice or information to any Third Party without the Freight Forwarder’s written agreement.

16. (A). Except under special arrangement previously made in writing, as allowed by the law for the time being in force, the Freight Forwarder will not accept or deal with bullion, coin, precious stones, jewellery, valuables, antiques, pictures, human remains, livestock, pets, plants.

17. Except following instructions previously received in writing and accepted by the Freight Forwarder, the Freight Forwarder will not accept or deal with goods of a dangerous or damaging nature, nor with goods likely to harbour or encourage vermin or other pests.

18. Where there is a choice of rates according to the extent or degree of the liability assumed by carriers, warehousemen or others, no declaration of value where optional will be made except under special arrangements previously made in writing.

19. The Customer warrants: a. that the description and particulars of any goods furnished by or on behalf of the Customer are full and accurate.

20. Should the Customer otherwise than under special arrangements previously made in writing deliver to the Freight Forwarder or cause the Freight Forwarder to deal with or handle goods of a dangerous or damaging nature... he shall be liable for all loss or damage arising in connection with such goods.

21. The Customer undertakes that no claim shall be made against any director, servant, or employee of the Freight Forwarder, which imposes, or attempts to impose upon them any liability.

22. The Customer shall save harmless and keep the Freight Forwarder indemnified from and against all liability, loss, damage, costs and expenses whatsoever.

23. (A). The Customer shall pay to the Freight Forwarder in cash or as otherwise agreed all sums immediately when due without reduction or deferment on account of any claim, counterclaim or set -off.

24. Despite the acceptance by the Freight Forwarder of instructions to collect freight, duties, charges or other expenses from the Owner or Consignee or any other Person the Customer shall remain responsible for such freight, duties, charges or expenses.

25. Where liability for General Average arises in connection with the goods, the Customer shall promptly provide security to the Freight Forwarder.

26. The Freight Forwarder shall perform its duties with a reasonable degree of care, diligence, skill and judgment.

27. The Freight Forwarder shall be relieved of liability for any loss or damage if and to the extent that such loss or damage is caused by Strike, lockout, stoppage or restraint of labor.

28. Except under special arrangements previously made in writing the Freight Forwarder accepts no responsibility for departure or arrival dates of goods.

29. (A). The Freight Forwarder ‘s liability howsoever arising and notwithstanding that the cause of loss or damage be unexplained shall not exceed the value of any goods lost or damaged, or a sum at the rate of PKR 50 (fifty) per kilo of gross weight of any goods lost or damaged.

30. If the Freight Forwarder acts as a principal in making an agreement for the carriage of goods by air, the limit of liability shall not exceed as prescribed by/under law.

31. Receipt by the Customer or Owner of visibly damaged goods without complaint shall invalidate any claim against the Freight Forwarder.

32. These Conditions and any act or contract to which they apply shall be governed by Pakistani Law.

33. Claims against the Freight Forwarder shall be time barred within a period of one year commencing from the day of delivery of the goods.

34. This Agreement is governed by the law of Pakistan. Any differences or disputes arising out of this Agreement shall be referred to arbitration in accordance with the prevailing law and under the provisions of the Arbitration Act, 1940.

35. Any provision of this Agreement which is determined to be invalid / unenforceable will be ineffective to the extent of such determination without invalidating the remaining provisions of this Agreement.