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Ukrainian General Forwarding Regulations
Worked out by the Board of the Association “European Union of Ukrainian Transport Companies”
Obstacles at Fulfillment of Forwarding Operations
Forwarder’s Reward, Compensation
Limits and Exclusion of Forwarder’s Liability
Rules of Conduct and Business Etiquette for Forwarders
Resolution of Claims and Corresponding Legislation
§1
1.1. Ukrainian general forwarding terms (UGFT) are applied in relationships between a forwarder and his customer while providing transport-forwarding services.
§2
2.1. The forwarder is the person who on his own behalf or on behalf of a customer and at his expense professionally provides transport-forwarding services, ànod namely: shipment or reception of the customer’s cargo, settlement of accounts with transport companies and transport agencies (agents), railroads, customs brokers, terminals, ports as well as other actions regards transportation of cargoes.
2.2. Among other services, like those mentioned in § 2 p.1, there are also the following: transport consulting, insurance, transloading, warehousing, packing, declaration, acquiring of various permissions (veterinary, quarantine, etc.), monitoring of cargo transportation, distribution, logistics, arrangement of independent examinations and the other.
2.2.1. services provided by the forwarder using his own equipment and employees;
2.2.2. services arranged by the forwarder using some other equipment and employees, if he takes on a responsibility of a direct executor.
2.3 The forwarder, in order to provide transport-forwarding services, should follow general Ukrainian terms of forwarding (UGFT) or terms defined as obligatory. With this purpose the forwarder can any time declare the terms defined by the third parties, with whom the forwarder is in contractual relationships, as obligatory for fulfillment an accepted order.
§3
3.1. The forwarder may perform transportation himself. In such a case the forwarder, at the same time, has the right and liabilities of the forwarder.
3.2. The forwarder acquires the rights and liabilities of a transport agent if:
3.2.1. transports cargoes by his own transport means and issues a transport bill;
3.2.2. he is a sea-forwarder or functions as a provider of multimodal transport services and issues his own bill of lading or the FIATA bill of lading called “Negotiable FIATA Ìultimodal Transport Bill of Lading”;
3.2.3. realizes transportation by others’ transport means or by leased transport means, but issues his own transport bill (a contractual forwarder);
3.2.4. accepts transport orders.
§4
A juridical or a natural person/party may be the Customer who has concluded an agreement with the forwarder and places an order for transportation of a cargo (acquires corresponding rights) ?
§5
Regulations of the given terms shall not apply for services on transportation of money and securities, documents, jewelry and other particularly valuable objects.
§6
An offer proposed by the forwarder predetermines only provision of the services indicated in the offer and is valid for a determined period.
6.1. The forwarder’s offer and agreements on rates and services (of his own or of the third parties) are just connected with transportation of the cargoes indicated in an order and suppose typical terms of their realization.
6.2. In case if there are no other agreements, each offer or all price rates are valid if they have been agreed or confirmed in the written form by the customer.
6.3. In case of a change of a component of the order due to external reasons independent of the forwarder, provided or agreed prices will correspondingly be updated since the moment of the change, with the following information of the customer on this. Updating of the offer because of a change of some component, which is due to reasons dependent on the forwarder, requires an agreement of another party, that is of the customer.
6.4. If the forwarder applies the rates agreed beforehand, it means that if there are no other agreements, these rates include all forwarder’s expenses for fulfillment of a forwarding process.
Agreement on providing of transport-forwarding services
§7
7.1. A forwarding agreement obliges the forwarder either to provide a set or a part of services on transportation of the customer’s cargoes on a remunerative basis and within the scope of the enterprise’s activity, or perform other actions connected with transportation.
7.2. An agreement on forwarding (provision of transport-forwarding services) is considered to be concluded after its signing by the parties.
§8
8.1. The forwarder performs actions on the basis of an order (an application form).
8.2. An order shall be presented in the written or some other similar form (by fax, e-mail). According to an agreement, an order may be made orally as well, although in this case the parties should understand that in case of a misunderstanding or faults during its fulfillment, it will be difficult to define the guilty party.
8.2.1. The forwarder shall not be responsible for consequences caused by a fault and misunderstanding connected with an order made orally or on phone.
8.2.2. The forwarder shall not be responsible for consequences of faults and misunderstandings due to instructions or information made by the customer orally or on phone.
8.2.3. The forwarder shall not be responsible for consequences of additional instructions made by the customer directly to the third parties who participate in transportation of his cargoes.
8.3. An order shall contain all necessary information about a cargo and its properties, markings and numbers of certain units (packages), their load, a shipper and a consignee, an amount, weight, size, cubic content, a place of shipping and a place of assignment, as well as an amount of an ordered service and all the other data and documents necessary for an appropriate fulfillment of an order.
8.4. The customer is liable to supply a complete and correct order. The customer is responsible for consequences caused by inaccurate, incomplete and incorrect data for the forwarder and to the third parties, and this applies to data indicated in documents added to the order, to correspondence etc., even if the inaccuracy, incompleteness or incorrectness have not been his fault.
8.5. The forwarder is not obliged, but has the right, to check if the order is correct and complete.
8.6. The forwarder has the right, but is not obliged, to check the authenticity of signatures and authorities of persons who put their signatures on orders, notification notes, transferring or forwarding documents or some other documents.
8.7. In case cargoes are dangerous; the customer has to indicate an identification number OOH while placing an order according to the “Typical Rules of OOH Dangerous Cargoes” as well as a class of danger. If this is a case of a dangerous cargo from the point of view of rules on transportation of dangerous cargoes requiring following specific rules of treatment at transportation, storage and warehousing, the customer is obliged to indicate all data necessary for corresponding accomplishment of a certain order, especially the classification against the rules on dangerous cargoes (goods).
8.8. The forwarder can pass an accepted order or related works for accomplishment to the third parties or their subcontractors. In such a case all the rules concerning the forwarder’s responsibility indicated in the General Ukrainian Forwarding Terms shall also be forwarded to the mentioned performers (forwarders).
§9
9.1. The forwarder is liable act in correspondence with an approved order. In case of necessity to fulfil actions other than indicated in the order, the forwarder shall follow the customer’s interests, taking into account requirements of the current legislation and with due diligence.
9.2. If there are no definite sufficient instructions possible to follow or no specific agreements, the forwarder has the right for a free choice of time, means of shipment, a type of transportation and tariffs. In any case the forwarder shall act in correspondence with the customer’s interests, but at the risk and expense of the customer.
9.3. In case of a small amount of a cargo and no warnings from the customer, the forwarder may ship the fiduciary goods/cargo as an assorted shipment.
9.4. The forwarder may, on the customer’s request, act as a shipper or a consignee of the customer’s cargoes, for what he shall be authorized by corresponding documents enabling him to perform the actions, às well as has the right for compensation of certain expenses related to such services.
9.5. The forwarder shall inform the customer about the course of accomplishment of an order as well as about all changes and obstructions hampering the fulfillment of the order; he shall inform the customer or defined persons about receipt or delivery and movement of a cargo/goods, issues certain instructions, and also, in case of agreement, completes documents necessary for realization of transportation.
9.6. If the forwarder is liable to send the customer transport documents with a confirmation of a shipment or receipt of a cargo, then the receipt of the approval that the documents have been presented releases him from the responsibility for non-handing or late handing of the documents. The forwarder is not obliged to insure the documents to be sent without the customer’s written instruction.
9.7. On the receipt of a cargo the forwarder or his authorized person shall check if the shipment has been delivered in correspondence with accompanying documents (a way-bill, bill of lading, invoice etc.), as well without any shortage or damage.
9.7.1. If a cargo is to be sorted at a warehouse belonging to the third party, and then inspection of the state and correspondence with transport documents shall be performed by a person liable to breakage/storekeeper.
9.7.2. In case of any damage or shortage of a shipment, of lack of seals or other preventive means, the forwarder shall ensure the customer’s rights in relation to the third party responsible for defects or damages, having informed the customer about them.
9.7.2. A confirmation about receipt of a shipment, issued by the forwarder, is an approval of the fact that the forwarder received the shipment in the state indicated in the confirmation.
9.8. While fulfilling an order for an export shipment, the forwarder shall follow terms predetermined by a commercial contract (validity terms of a trade letter of credit etc.), indicated in an order, with an exclusion of cases when it is impossible due to reasons independent on the forwarder. The forwarder shall inform the customer in advance or on time about the above mentioned.
§10
10.1. The forwarder shall insure a cargo only on the customer’s clear note in the written form, and in this case he shall inform the customer about obligatory insurance of dangerous cargoes transportation according to the legislation of Ukraine. If there is no written agreement, the forwarder is not obliged to insure every shipment.
10.2. Indication of a cargo price in the order is not equal to an order for the cargo insurance to be made by the forwarder.
10.3. When offering for the customer cargo insurance or concluding an insurance agreement on the customer’s behalf and at the customer’s expense, the forwarder shall present the customer all cargo insurance terms.
10.3.1. The customer, like all the other parties engaged or at whose expense the forwarder acts, shall follow all the terms of a concluded insurance agreement as informed by the forwarder.
§11
11.1. The forwarder shall conclude agreements on warehousing on behalf and to the benefit of the customer on the basis of a received order. If the forwarder stores a fiduciary cargo in his warehouse or in the third party’s warehouse, he shall inform the customer about the fact, in case of necessity, having indicated the warehouse name and conditions of warehousing.
11.2. The customer has the right to be acquainted with warehousing conditions. He has to inform urgently specific conditions of a cargo warehousing or selection of a warehouse if any applies. If he has not done this, it means that he renounces every possible accuses as regards a type and way of warehousing, because the selection of a warehouse and warehousing are adequate.
11.3. The customer can not manipulate with goods without having informed the forwarder on that (for example, taking samples); if the customer does not meet the requirement, the forwarder can avoid the responsibility for the expenses revealed later.
11.4. If the consignee has not received a cargo at the place of destination or if the cargo has been detained at transportation due to reasons independent of the forwarder, then the cargo, may be stocked at a warehouse for storage at the expense of and at the risk of the customer. The forwarder shall immediately inform the customer (in any case) and the insurance company (if the cargo has been insured before transportation) about the unpredictable warehousing during the transportation.
11.5. If the forwarder stores temporarily a shipment at a warehouse belonging to the third party, then his relationships with the customer are based on terms of relationships between the forwarder and a defined third party. On the customer’s request the forwarder shall inform him warehousing conditions.
11.6. If a cargo that goes bad very easily is under the threat of going bad, the customer shall instruct the forwarder on future actions as regards the cargo.
11.7. If the forwarder is reasonably doubtful about a price of the cargo stored in relation to his expenses, then the forwarder is enabled to determine a corresponding term for the customer’s payment against his invoices. In case the customer does not agree, verbally or in the written form, with such conditions, the forwarder is enabled to renounce fulfillment of the agreement without any term of rejection.
§12
12.1. In case of a complete or a partial non-fulfillment of the transport-forwarding process the liability shall be imposed on to:
1) the forwarder if an obstacle has arisen due to him or due to a third party engaged by the forwarder;
2) the customer if the obstacle has arisen due to him or due to a third party engaged by the customer;
12.2. In case of arising of some obstacles independent on the forwarder or the others acting on his instructions (the government’s order, natural disasters, military actions, strikes etc., considered as force-majeurs), those that do not enable to fulfil completely or partially the forwarder’s commitments, such circumstances exempt him from a responsibility for timely fulfillment of an order for the period of existence of these obstacles. The forwarder shall immediately inform the customer about such obstacles. If the obstacles last for a very long time, the forwarder is enabled to cancel the agreement, even if it has already partially been fulfilled. However, before the cancellation, the forwarder shall first ensure shipment of the cargo ànd the customer’s interests in correspondence with their agreement. In case of the forwarder’s cancellation of the agreement due to the above-mentioned reasons, he shall return the customer money received having taken into account his own expenses connected with fulfillment of the given order. While references are made to force-majeur circumstances, their interpretation shall be represented in correspondence with the definitions of the International Chamber of Commerce in Paris (βÑÑ 421).
Forwarder’s Reward, Return of Expenses
§13
13.1. The forwarder shall be rewarded for provided transport-forwarding services to the customer in correspondence to an agreement concluded.
13.2. The forwarder shall also be rewarded for the services that has not been stipulated in the preliminary agreement but has been provided on the customer’s agreement, in addition to all expenses according to the agreement.
13.3. In case there is no special agreement, the forwarder’s reward shall be accounted according to the forwarder’s tariffs.
§14
The forwarder's accomplishment of an order may be dependent on the customer’s payment of an advance sum, partial or complete prepayment for expenses connected with its fulfillment (for example, payment for transportation, freight, terminal, railway, port, customs payments etc.).
§15
15.1. The forwarder’s services shall be paid according to an agreement with the customer and can be made after, before or during performance of an order. At alternate shipments the forwarder has the right to be paid a reward and expenses in parts.
15.2. If the customer does not pay a corresponding amount on term of its payment, the forwarder is enabled to impose interests on the customer.
§16
Inflammation, a loss of a cargo due to the force-majeur circumstances, confiscation or other authorities’ actions regards a shipment shall not effect the forwarder’s requirement about payment by the customer, because all the above mentioned has not been a result of the forwarders’ negligence.
§17
If an order has been made by a third party the customer shall not be exempted from his payment duty regards the order fulfilled.
§18
The forwarder is obliged to check the amount to be paid for subcontractors engaged by him for service provision and if it does not exceed defined or agreed tariffs and fees. If any violation is revealed the forwarder shall immediately claim for it. The subcontractor shall return the forwarder all his expenses related to the claim.
§19
19.1. In correspondence with the concluded agreement the customer shall compensate the forwarder all expenses connected with fulfillment of the order, including payment for storage of a cargo due to the customer, payment for a hold-up of a transport vehicle during loading/unloading and transportation, as well as other fees paid by the forwarder due to indications made by the customer or his contractor, shipper/consignee of a cargo in transport documents for the railway, sea, automobile or aviation communication.
19.2. If the forwarder, according to the customer’s instructions, acts as a shipper or a consignee of a cargo at the sea or railway transportation and he is asserted claims on an accident with the transport vehicle or due to some other reasons for which, according to the legislation of Ukraine, the shipper or the consignee shall be responsible and which has not occurred due to the forwarder, the customer is obliged to compensate the forwarder all expenses incurred.
19.3. The liability defined in § 19 point 2 shall also be applied if on the customer’s request the forwarder shall act as a shipper or a consignee during the aviation transportation and he shall be required to pay for certain services on aviation transportation.
§20
20.1. Payment for the forwarder’s services in correspondence with the agreement on transportation as well as related payments to the third parties, not included into the agreement, may be mutually compensated (set-off) according to the parties’ agreement.
20.2. If in the process of performance of an order the forwarder shall transfer his own money, then he has the right for special interests form a deposited sum. An amount of the interests shall be determined by a tariff or by an agreement with the customer.
§21
The forwarder’s liability shall be defined in the concluded agreement.
§22
22.1. The forwarder shall be liable for losses caused by non-fulfillment or inadequate fulfillment of the forwarding activity against the agreement on transportation, with an exclusion of cases when he is able to prove imminence of the losses notwithstanding his thorough efforts.
22.2. The forwarder shall be liable for transport agents and other forwarders and subcontractors engaged by him for fulfillment an order, excluding the case if he is not guilty of the choice of a third party.
22.3. In case if a third party becomes liable in the course of fulfilemnt of an order, for whose activity or inadequate fulfillment the forwarder shall not be reliable, on the customer’s request and on the basis of passing the rights, the forwarder shall be able to present claims to the third party, but exclusively at the customer’s risk and costs.
§23
23.1. The forwarder with a status of a transport agent has rights and obligations defined by the legislative rules related to a certain kind of transport vehicles or a service, às well as by those defined in additional terms of an agreement; in case if there are no such agreed terms – by those defined in general terms applied for a certain kind of transportation or a service.
23.2. Acting as an operator of intermodal transportation, the forwarder shall be held liable in correspondence with terms of the bill of lading (transportation bill) applied for a certain kind of transportation.
Limits and Exclusions of Forwarder’s Liability
§24
24.1. The forwarder shall not be liable for:
24.1.1. valuable shipments and hazardous goods if they have not been declared and approved for transportation in an agreement;
24.1.2. losses caused by a delay of a delivery, if the forwarder is not obliged to make a delivery in a definite term;
24.1.3. intermediary losses and their consequences, as for example, a loss in a profit, a loss of a market, etc.;
24.1.4. a decrease in weight of mass products occurring due to their properties, but within the limits defined by rules for a certain product, ànod in case if there are no such rules – in correspondence with general norms.
§25
25.1. In case of a loss or a damage of a part or of the whole cargo due to the forwarder’s fault, or the fault of the third party engaged by the forwarder for fulfillment of an agreement on transportation, the compensation to paid by the forwarder shall be restricted to a general cost of goods indicated in an invoice, ànod if there is no invoice, it shall be defined on the basis of a stock-exchange, market price or on the basis of a usual cost of the goods of the same kind and quality. (In any case, the compensation paid by the forwarder shall not exceed the amount of 2 conventional units per kilogram of the gross weight of a lost or damaged shipment, and 50.000 conventional units in total for each case, with an exclusion of cases when the party responsible to the forwarder pays a compensation of a larger amount).
25.2. The actual price of a conventional unit shall be defined on the basis of the exchange rate determined and declared by the NBU for the day of arising of losses.
25.3. Limits of liabilities and amounts of compensation to be paid by the forwarder with a status of a transport agent shall be determined by corresponding rules regulating a certain kind of transportation.
§26
The customer is enabled to present the forwarder reclamations regards forwarding services.
§27
27.1. The customer’s claim to the forwarder shall be represented in the written form within 6 days since the date when the customer has become aware or had to become aware about the inflicted losses. The forwarder shall give a reply for the claim within 14 days at latest since the day of its receipt. In certain cases this term may be prolonged, but the forwarder shall confirm the receipt of the claim and explain means and terms of its consideration within 14 days since its receipt.
27.2. The claim shall be represented together with documents confirming the state of a shipment and causes of damages/losses.
27.3. A damage of a shipment during transportation by corresponding transport means shall be proved by the claiming party. If it is unknown where the damage has taken place, the forwarder, according to the customer’s or the consignee’s request, shall prove with documents the process of transportation, having listed points of replacement from one to another transport means.
The Right of Mortgage and Detain
§28
28.1. In order to ensure recovery of the customer’s debt (current and indebted) the forwarder is enabled to detain the customer’s cargo or documents until clearance of the debt.
28.2. The forwarder has also the right of mortgage for the cargo, documentation and payment means remaining or being at his disposition due to any reason or for any purpose if there are or can be claims from the forwarder regards the customer or the owner, or another person, requiring their return.
28.2.1. The forwarder may also make use of the rights according to § 28 point 2 concerning money owed him by the customer for the previous orders.
28.3. If according to the customer’s order a cargo shall be forwarded to the third party at their disposition, then the forwarder may also make use of the right for mortgage on shipment.
28.4. All expenses due to the mortgage on a cargo or documents shall be added to the cost of provided transport-forwarding services.
§29
29.1. The customer shall represent claims against the agreement on transport-forwarding services within the period of 9 months.
29.2. The limitation term shall be counted off:
29.2.1. In case of claims on a damage, shortage, delay of shipment or delivery – since the day of giving out the cargo to the consignee;
29.2.2. In case of a complete lost of a shipment – 30 days later since the date of expiry of the delivery term;
29.2.3. In all the other cases – since the day of accomplishment of the order.
§30
If the forwarder acquires the status of a transportation agent in correspondence with § 3, claims on transportation are considered to be liable to application on them of a limitation term, according to the internal state and international rules regulating this matter.
Forwarders’ Rules of Conduct and Business Ethics
§31
31.1. In correspondence with a concluded agreement and a given word forwarders shall ensure a dutiful performance of contractual obligations, resulting in a high professional reputation, in establishment of strong business relationships, esteem and trust from customers.
31.2. The forwarders shall perform their activity at the transport-forwarding service market on the basis of a faithful competition, exclusively based on qualitative and professional provision of services, on mutual respect between competing parties; all participants of a transport process shall follow the same rules of conduct.
31.3. Rejection of illegal business methods and acquiring various preferences and advantages promotes stabilization of the service market, equalizes all the market participants in conditions of the business activity, does not allow bribery, corruption and illegal enrichment.
31.4. The market economy presupposes a free access to information, confidential information exchange between all participants of the transport market.
31.5. Every forwarder shall follow the high norms of the professional activity, as well as the given rules, tend to making the rules a part of their business culture and to using them steadily in their everyday practice.
31.6. Any disputes shall be settled in a legal way only. It is inadmissible to settle conflicts by means of violence or a psychological pressure.
Resolution of Disputes and Corresponding Legislation
§31
Parties may come to an agreement that disputes arising during realization of an agreement on forwarding, with application of the given forwarding terms, will be judged by the Permanent Court of Arbitration.
§32
In case there is no such agreement between the parties, disputes arising out of agreements on forwarding, with application of the given forwarding terms, shall be considered:
32.1. In case when both the parties have been registered as subjects of economic activity of Ukraine – in corresponding courts of Ukraine according to current general rules applied in the given sphere;
32.2. In case when one of the parties is a non-resident of Ukraine – a corresponding court is defined by the parties’ agreement, and if there is no such agreement – corresponding norms of the legislation of Ukraine.
§33
If there is no other agreement between the parties, the legislation of Ukraine shall be applied.
