Policy & Compliance
business should be undertaken until the terms have been accepted in writing or an acceptable electronic format. It is essential that all staff who have direct client liaison are advised of this policy. This becomes especially important where Members rely on Clause 7 appointing them as the Direct Customs Agent of a UK established entity. At this point we must emphasise that the STC must be brought to the attention of the client and incorporated into the forwarding contract at the earliest opportunity. The other point which we have already touched on is that agreement must be in some form of hard copy, whether it be a written acceptance or a client’s positive indicator of acceptance on its freight forwarder’s website. BIFA recommends, as previously indicated, that reference to the fact that the Member trades under the BIFA STC is included in all documentation and electronic mediums. The suggested wording is: “All business is transacted under the current edition of the BIFA STC, a copy can be viewed at https://bifa.org/information-guidance/trading- conditions/bifa-standard-trading-conditions-2021/ .” On certain documents, such as credit application forms where it is strongly recommended that the STC are printed in full, there must be a declaration to the effect that the customer has seen, read, understands and agrees that they apply to all aspects of the business relationship between it and the BIFA Member. BIFA also recommends that credit is only offered subject to the customer accepting the BIFA STC as applying to all business transactions. If reference is only made in a credit application document or online form to the application of the STC, they may be taken to apply only to the credit application/agreement between the two parties. The credit application should be signed by a suitably authorised person within the customer’s organisation. The other point to consider is whether or not Members are willing to accept electronic signatures? The assistance of a suitably qualified legal professional may be required to provide guidance on this matter. There is more information on this subject in the BIFA publication Guide to Due Diligence Regarding Credit Application Procedures, which can be found in the Good Practice Toolbox on the BIFA website. Scan the QR code on page 12 to access. At this point it is appropriate to recap on the previous points and highlight additional points. We are going to refer to the Six Golden Rules of Incorporation and we urge Members to adopt them – it could save you a lot of money one day. 1. Always highlight important terms – many Members, for instance, emphasise that goods are not insured and that liability for loss or damage is limited. 2. Incorporation statement - clearly state that the STC incorporated into the contract with the client are an integral part of the commercial agreement. 3. Request acceptance – seek documented and explicit acceptance of the STC from the contracting party. 4.Provide prior notice – Give the customer reasonable notice of the relevant terms.
you incorporated the BIFA STC?” Too often the response is worryingly vague and fails to convince us that the terms have been correctly incorporated. The purpose of this article is to highlight the importance of correctly incorporating the STC and suggest points at which the Member can do so with its customer during routine business activities. Incorporation of the BIFA STC The first point to make is the times that the client has the opportunity to have the terms and conditions brought to its attention, thereby decreasing its ability to claim that it had not seen and agreed them. Some Members have sophisticated electronic systems including tick boxes where the customer has to indicate that it has seen, read, understood and agrees that business will be undertaken under the BIFA STC. The Association’s clear guidance is that no
“ Our first statement and/or question regarding a dispute is: “Have you incorporated the BIFA STC?”
January 2024 | 11 Continued on page 12
www.bifa.org
Made with FlippingBook Annual report maker