Policy & Compliance
I ndustry guidance is that the BIFA Standard Trading Conditions (STC) should always be referenced on the back of your bill of lading (BL) and provided to your customers. They can be sent via email, or listed on your website and referred to on your company documentation, which will include quotes, credit applications and invoices, etc. There is a move towards positive incorporation of terms and the Association strongly emphasises that Members should always ensure that their customers agree to them in writing. It is common for an insurance company to have an expectation that you have properly limited your liability. It will often want to see and approve terms and conditions under which you are trading. Some types of insurance are underwritten based on how you are limiting your liability. The digital environment Electronic Bills of Lading (eBL) are becoming more and more common. There are several benefits, such as reduced costs, increased efficiency and improved security. However, such digital documents bring with them some additional insurance questions. For example, how are your terms and conditions provided to all parties involved and how do they accept those terms and conditions in an electronic environment? Has your insurance company approved of your eBL? Considering that the shipping industry is one of the most targeted by cyber criminals, do you have a cyber insurance policy in place to help you recover in the event of a cyberattack? It is important to work with your insurance company as you move from paper BL to eBL, in order to make sure that you remain in compliance with any requirements the insurer has regarding BL under your policies. For example, there is a possibility that the insurer may have to add eBL to its policy wording. As we work towards a new and more streamlined environment, it is important to remember to include your insurance provider in the conversation. It could make a difficult situation a little easier if everyone is working together from the start. BIFA would like to thank FIATA for providing the information on which this article is based. Insurance considerations when issuing a bill of lading When a BIFA Member issues a Bill of Lading, it is taking on a liability as de fi ned in Clause 26(A) of the BIFA STC
hours before arrival • Short-haul fl ights — less than four hours’ duration: at least at the time of actual take-off • Long-haul fl ights: at least four hours before arrival • Rail and inland waterways : at least two hours before arrival • Channel Tunnel: at least one hour before arrival at the Eurotunnel terminal by the haulier • Road traf fi c: at least one hour before arrival. Source: www.gov.uk/ guidance/making-an-entry- summary-declaration As pragmatic as the time limits are, it is still very important to ensure that operational procedures take them into account as otherwise traders may experience delays and potential financial consequences. When discussing the practicalities of lodging ENS, it is also worth noting that at the time of writing this article it is still unclear whether an ENS reference will need to be declared in the Goods Vehicle Movement System (GVMS). This again may have an operational impact on moving
goods across the border; the Secretariat will monitor this and advise Members accordingly. With just over a month to go, it is important that Members who want to lodge safety and security declarations familiarise themselves with data requirements and start putting operational arrangements in place. For those interested, more information can be found by scanning the QR codes or following the links below:
www.gov.uk/gui dance/safety- and-security-re quirements-on- imports-and-ex ports www.gov.uk/gui dance/making- an-entry-summ ary-declaration www.gov.uk/gov ernment/public ations/the- border-target-o perating- model-august- 2023
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www.bifa.org
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