Pakistan International Freight Forwarders Association (PIFFA)
Registered with the Ministry of Commerce, Government of Pakistan, License No. 04
STC (Standard Trading Conditions for Freight Forwarders). January 2005
DEFINITIONS AND APPLICATION
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. He may
also undertake to perform other functions
connected with the main contract such as
warehousing (including storage in transit) groupage
or consolidation, packing, documentation, weighing
and measurement of cargo container leasing,
insurance, foreign exchange transaction etc and
includes any parent subsidiary or affiliated
company, firm, person or entity of the Freight
Forwarder.
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.
2 (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 and nothing in these Conditions
shall be construed as a surrender by the Freight
Forwarder of any of its rights or immunities or as an
increase of any of its responsibilities or liabilities
under such legislation and if any part of these
Conditions be repugnant to such legislation to any
extent such part shall as regards such business be
overridden to that extent and no further.
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, and in particular but without prejudice to
the generality of this clause, the Owner accepts (for
himself and on behalf of any parties that the Owner
or their agents may act) that the Freight Forwarder
shall have the right to enforce the rights herein,
jointly and severally against the Owner, the
Owner’s agents or any parties on behalf of whom
the Owner or his agents may act in connection with
any liability of the Customer under these Conditions
or to recover any sums to be paid to the Freight
Forwarder by the Customer which when duly
demanded have not been paid.
THE FREIGHT FORWARDER
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.
(C). When acting as an agent the Freight
Forwarder does not make or purport to make any
contract with the Customer for the carriage,
storage, packing or handling of any goods nor for
any other physical service in relation to them and
acts solely on behalf of the Customer in securing
services by establishing Contracts with third parties
so that direct contractual relationships are
established between the Customer and such third
parties.
(D). The Freight Forwarder shall on demand by the
Customer provide evidence of any Contract
entered into as Agent for the Customer. Insofar as
the Freight Forwarder may be in default of this
obligation, it shall be deemed to have contracted
with the Customer as a Principal for the
performance of the Customer’s instructions.
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, and subject always
to the totality of these Conditions and in particular
to Clauses – 26 - 29 hereof accepts liability for loss
of or damage to goods taken into its charge
occurring between the time when it takes the goods
into its charge and the time when the Freight
Forwarder is entitled to call upon the Customer or
Owner to take delivery of the goods. When the
Company contracts as a Principal for any services,
it shall have full liberty
a) to perform such services itself or
b) to subcontract the whole or any part of such
services to third parties (including the Company’s
own parent, subsidiary, or associated companies).
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, and the Customer
hereby expressly authorizes the Freight Forwarder
such entitlement, to enter into contracts on behalf
of the Customer and the Owner:
a. for the carriage of goods by any route or means
or Person,
b. for the storage, packing, transshipment, loading,
unloading or handling of the goods by any Person
at any place and for any length of time,
c. for the carriage or storage of goods in or on
transport units as defined in clause 18 c. and with
other goods of whatever nature, and
d. to do such acts as may in the opinion of the
Freight Forwarder be reasonably necessary or
desirable in the performance of its obligations to
the Customer and in the interests 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 subcontractor. Any such sub-contractor shall also
hereby be deemed to have and to take all the
benefits, privileges and immunities of these
Conditions in relation to the Customer and Owner.
For the purpose of allowing the sub-contractor to
take the benefits under these Conditions, the subcontractor shall follow these Conditions.
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, and shall be
entitled to retain, sell or dispose of such goods or
documents as Agent for and at the expense of the
Customer and apply the proceeds in or towards the
payment of such sums on 21 days notice in writing
to the Customer. Upon accounting to the Customer
for any balance remaining after payment of any
sum due to the Freight Forwarder and the costs of
sale or disposal the Freight Forwarder shall be
discharged of any liability whatsoever in respect of
the goods or documents.
(B). When the goods are liable to perish or
deteriorate, the Freight Forwarder's right to sell or
dispose of the goods shall arise immediately upon
any sum becoming due to the Freight Forwarder
subject only to the Freight Forwarder taking
reasonable steps to bring to the Customer's
attention its intention of selling or disposing of the
goods before doing so.
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, whereupon the
liability of the Freight Forwarder in respect of the
goods or that part thereof stored as aforesaid shall
wholly cease and the cost of such storage if paid
for or payable by the Freight Forwarder or any
Agent or Sub-Contractor of the Freight Forwarder
shall forthwith upon demand be paid by the
Customer to the Freight Forwarder.
(B). The Freight Forwarder shall be entitled at the
expense of the Customer to dispose of (by sale or
otherwise as may be reasonable in all the
circumstances):-
(i) on 21 days notice in writing to the Customer, or
(where the Customer cannot be traced and
reasonable efforts have been made to contact any
parties who may reasonably be supposed by the
Freight Forwarder to have any interest in the
goods) without notice, any goods which have been
held by the Freight Forwarder for 30 days and
which cannot be delivered as instructed; and
(ii) without prior notice, goods which have perished,
deteriorated or altered or are in immediate prospect
of doing so in a manner which has caused or may
reasonably be expected to cause loss or damage
to the or Third Parties or to contravene any
applicable laws or regulations.
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 or underwriters taking
the risk. Unless otherwise agreed in writing the
Freight Forwarder shall not be under any obligation
to effect a separate insurance on each
consignment but may declare it on any open or
general policy held by the Freight Forwarder.
(B). Insofar as the Freight Forwarder agrees with
the Customer to arrange insurance, the Freight
Forwarder acts solely as agent for the Customer, at
his costs, using its best endeavors to arrange such
insurance and does so subject to the limits of
liability contained in Clause 29 hereof.
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, such as (but
without prejudice to the generality of this Clause)
against payment or against surrender of a
particular document, are accepted by the Freight
Forwarder only as agents for the Customer where
third parties are engaged to effect compliance with
the instructions.
(B). The Freight Forwarder shall not be under any
liability in respect of such arrangements as are
referred to under Clause a. hereof save where such
arrangements are made in writing.
(C). In any event, the Freight Forwarder's liability in
respect of the performance or arranging the
performance of such instructions shall not exceed
that provided for in these Conditions in respect of
loss of or damage to goods,
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. The Customer shall
indemnify the Freight Forwarder against all loss
and damage suffered as a consequence of any
breach of this Condition by the Customer.
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 or any other
special items not covered under any other clause of
this Conditions. Should any Customer nevertheless
deliver any such goods to the Freight Forwarder or
cause the Freight Forwarder to handle or deal with
any such goods otherwise than under special
arrangements previously made in writing the
Freight Forwarder shall be under no liability
whatsoever for or in connection with such goods
howsoever arising.
(B). The Freight Forwarder may at any time waive
its rights and exemptions from liability under SubClause (A) above in respect of any one or more of
the categories of goods mentioned herein or of any
part of any category. If such waiver is not in writing,
the onus of proving such waiver shall be on the
Customer.
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, nor with goods
liable to taint or affect other goods. If such goods
are accepted pursuant to a special arrangement
and then in the opinion of the Freight Forwarder
they constitute a risk to other goods, property, life
or health, the Freight Forwarder shall where
reasonably practicable contact the Customer, but
reserves the right at the expense of the Customer
to remove or otherwise deal with the goods.
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
THE CUSTOMER
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 and he will be liable for
consequences of any penalties levied by Port,
Customs or other authorities arising from any
incorrect information supplied.
b. that all goods have been properly and sufficiently
prepared, packed, stowed, labeled and/or marked,
and that the preparation, packing, stowage,
labeling and marking are appropriate to any
operations or transactions affecting the goods and
the characteristics of the goods.
c. that where the Freight Forwarder receives the
goods from the Customer already stowed in or on a
container, trailer, tanker, or any other device
specifically constructed for the carriage of goods by
land, sea or air (each hereafter individually referred
to as the "transport unit"), the transport unit is in
good condition, and is suitable for the carriage to
the intended destination of the goods loaded
therein or thereon.
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, or goods likely to
harbor or encourage vermin or other pests, or
goods liable to taint or affect other goods, he shall
be liable for all loss or damage arising in
connection with such goods and shall indemnify the
Freight Forwarder against all penalties, claims,
damages, costs and expenses whatsoever arising
in connection therewith, and the goods may be
dealt with in such a manner as the Freight
Forwarder or any other Person in whose custody
they may be at any relevant time shall think fit.
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 in
connection with any services, which are the subject
of these Conditions, and if any such claim should
nevertheless be made, to indemnify the Freight
Forwarder against all consequences thereof.
22. The Customer shall save harmless and keep
the Freight Forwarder indemnified from and
against:
a. all liability, loss, damage, costs and expenses
whatsoever (including without prejudice to the
generality of the foregoing, all duties, taxes,
imposts, levies, deposits and outlays of whatsoever
nature levied by any authority in relation to the
goods) arising out of the Freight Forwarder acting
in accordance with the Customer's instructions or
arising from any breach by the Customer of any
warranty contained in these Conditions of from the
negligence of the Customer, and
b. without derogation from Clause a. above, any
liability assumed or incurred by the Freight
Forwarder when by reason of carrying out the
Customer's instructions the Freight Forwarder has
reasonably become liable or may become liable to
any other party, and -
c. all claims, costs and demands whatsoever and
by whomsoever made or preferred in excess of the
liability of the Freight Forwarder under the terms of
these Conditions regardless of whether such
claims, costs and demands arise from or in
connection with the negligence or breach of duty of
the Freight Forwarder its servants, sub-contractors
or agents, and -
d. any claims of a General Average nature which
may be made on the Freight Forwarder.
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.
(B). In respect of all sums, which are overdue, the
Customer shall be liable to pay to the Freight
Forwarder financial charges calculated at 2%
above the KIBOR (Karachi inter-bank official rate)
for the time being.
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 on receipt of evidence of proper
demand and in the absence of evidence of
payment (for whatever reason) by the Owner or
Consignee or such other Person when due.
25. Where liability for General Average arises in
connection with the goods, the Customer shall
promptly provide security to the Freight Forwarder
or to any other party designated by the Freight
Forwarder in a form acceptable to the Freight
Forwarder.
LIABILITY AND LIMITATION
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:
a. Strike, lockout, stoppage or restraint of labor, the
consequences of which the Freight Forwarder is
unable to avoid by the exercise of reasonable
diligence.
b. any cause or event which the Freight Forwarder
is unable to avoid and the consequences whereof
the Freight Forwarder is unable to prevent by the
exercise of reasonable diligence.
28. Except under special arrangements previously
made in writing the Freight Forwarder accepts no
responsibility for departure or arrival dates of
goods.
29 (A). Subject to clause 2(B) and 13(b). above and
Clause 30D below the Freight Forwarder 's liability
howsoever arising and notwithstanding that the
cause of loss or damage be unexplained shall not
exceed.
(i) In the case of claims for loss or damage to
goods:
a) the value of any goods lost or damaged, or
b) a sum at the rate of PKR 50 (fifty) per kilo of
gross weight of any goods lost or damaged, subject
to a limit of PKR 5,000 (five thousand) per package
or unit, whichever shall be the least.
(ii) In case of all other claims:
a) the value of the goods the subject of the relevant
transaction between the Freight Forwarder and its
Customer, or
b) a sum at the rate of PKR 50 (fifty) per kilo of the
gross weight of the goods the subject of the said
transaction, subject to a limit of PKR 5,000 (five
thousand) per package or unit, whichever shall be
the least.
For the purposes of clause 29 A. the value of the
goods shall be their value when they were or
should have been shipped.
(B). Subject to clause 2(b) above, and sub clause
(d). below, the Freight Forwarder’s liability for loss
or damage as a result of failure to deliver or
arrange delivery of goods in a reasonable time or
(where there is a special arrangement under clause
28 to adhere to agreed departure or arrival dates
shall not in any circumstances whatever exceed a
sum equal to twice the amount of the Freight
Forwarder's charges in respect of the relevant
transaction.
(C). Save in respect of such loss or damage as is
referred to at sub clause 30b and subject to clause
2(b) above and sub clause 29D. below, the Freight
Forwarder shall not in any circumstances
whatsoever be liable for indirect or consequential
loss such as (but not limited to) loss of profits, loss
of market or the consequences of delay or
deviation however caused,
(D). By special arrangement agreed in writing, the
Freight Forwarder may accept liability in excess of
the limits set out in clauses 29 A. to 29 C. above
upon the Customer agreeing to pay the Freight
Forwarder 's additional charges for accepting such
increased liability. Details of the Freight Forwarder's
additional charges will be provided upon request.
30. If the Freight Forwarder acts as a principal in
making an agreement for the carriage of goods by
air, the following notice is hereby given:
If the carriages involves an ultimate destination to
or stopping place in a country other than the
country of departure and limits the liability of
carriers in respect of loss of or damage to cargo,
the limit of liability shall not exceed as prescribed
by/under law.
Agreed stopping places are those places (other
than the places of departure and destination)
shown under requested routing and/or those places
shown in the carriers' timetables as scheduled
stopping places for the route. The address of the
first carrier is the airport of departure.
31. Receipt by the Customer or Owner of visibly
damaged goods without complaint shall invalidate
any claim against the Freight Forwarder. Any claim
against the Freight Forwarder arising from loss of
or damage to the goods not visible at the time of
receipt by the Customer or Owner must be made in
accordance with the provisions of the applicable
law.
LAW, JURISDICTION AND CONCILIATION
32. These Conditions and any act or contract to
which they apply shall be governed by Pakistani
Law.
Time Limit
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
to the consignee named in the contract or, if no
delivery has taken place, from the date of the
conclusion, which is the date of shipment of the
Forwarding contracts.
Arbitration
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 or any
amendments thereof. The Forwarder and each
party shall nominate one arbitrator each, and in
case of difference of opinion between the
arbitrators, the two nominated arbitrators shall
mutually appoint an umpire whose decision shall be
final and binding on the Parties. The Arbitrators and
Umpires to be appointed under this clause shall
only be from the panel of arbitrators duly approved
by the Pakistan International Freight Forwarders
Association (PIFFA). The arbitration shall be held at
the Forwarders principal place of business, in the
English language.
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/affecting the validity/enforceability of
such remaining provisions. In the event of a conflict
between any provision of this Agreement and any
law regulation or decree affecting this Agreement,
the provision of this Agreement so affected shall be
regarded as null and void or shall, where
practicable, be limited to the extent necessary to
bring it within the requirements of such law
regulation or decree but otherwise it shall not effect
or render null and void other provisions of this
Agreement.