6


Issue 1 2012


TT Club launches online service for forwarders


The TT Club has fully launched its new online product aimed at freight forwarders and logistics service providers. TTClubForwarders.com is a web-based system that aims to automate pricing, booking and administration of cargo insurance as far as possible for a wide range of cargoes and on most of the world’s major trade lanes. Traditionally, some but not all


freight forwarders had offered to arrange cargo insurance for their clients until the Financial Services Act intervened. This led to a sharp downturn in such activity as forwarders were no longer allowed to act


were on UN sanctions lists. But with the new website, we can monitor what the forwarder is doing much more effectively and we can check the information provided.” Information is checked by TT Club specialists before issuing the insurance certificate. The new product has been


as


intermediaries, forcing shippers to arrange insurance direct with their brokers. The legislation has since been changed to once again allow forwarders to sell insurance, but the freight industry is still playing catch-up and many no longer do so, says TT Club senior cargo underwriter, Graham Hooper. However, the new website should once again allow the industry to play its full part, he told FBJ. The web-based approach


should allow a much greater degree of control of the process, he explained. “In the past, there could be problems if the forwarder issued cover for things that were not actually covered, exceeded the available cover or perhaps issued cover for shipments to countries that


operating on a pilot basis with selected TT Club members for about six months but is now being offered to a wider audience following the recruitment of a dedicated team including cargo underwriters in the UK and US, plus technical and accounting staff. While Hooper expects most users of the service to be forwarder members of the Club, the site could in theory be used by any forwarder or logistics service provider. Shippers could also use the service, he added. The web service is based on


a standard policy shown on the website, but it is possible for forwarders to sign a special agreement to extend the cover. The standard cover is ‘all risks’, based on standard globally recognised Institute cargo clauses and also includes ‘general average’ cover – that is it covers shippers for the situation in which some cargo has to be jettisoned in order to save the ship, with all shippers then being called on to bear a portion of the cost of the lost cargo. The cover includes theft, pilferage or damage caused by


‘Temporary halt’ for Jade Cargo


Far East all-cargo carrier Jade Cargo services said it had “temporarily suspended” its 31 December.


operations on It blamed overall


weak demand. However, the suspension would “also provide the shareholders with an opportunity to coordinate with stakeholders to continue with the restructuring of the company’s financial structure”, it added in a press statement. Jade Cargo started operations in 2006 as a joint venture between Shenzhen Airlines (51%), Luſthansa


Cargo AG (25%) and the German development finance institute DEG (24%). Its fleet of six B747- 400ERFs is based at Shenzhen and operated services to a range of worldwide destinations including Amsterdam, Frankfurt and Luxembourg. IATA said that on 2 January


it had suspended the airline with immediate effect and that CASS Agents should stop issuing transactions through CASSlink with immediate effect.


///NEWS


Call for tighter VAT controls


The EU Court of Auditors (ECA) has called for tighter controls on goods imported into the Union under Customs Procedure 42. The concession allows VAT exemption for goods imported from a third country by an EU state for subsequent delivery to another member state. The regulatory framework “absolutely needs to be improved” as the system is vulnerable to tax evasion, notes the report, published on 13 December. The court conducted a


stowaways – human or animal. It covers all modes of transport – road, rail, sea or air. It does not


include


consequential loss (for example the costs of shutting down a factory because a spare part wasn’t delivered) damage due to faulty or insufficient packaging or losses due to the cargo’s ‘inherent vice’ – for example, sticks of dynamite exploding or disease discovered in plants or produce. But it is possible to add on war risk cover, damage by strikers or losses due to terrorist acts. Cover is generally on a


warehouse to warehouse basis – though it will be time limited and does not include time spent by the cargo in long-term storage. Some types of cargo are


excluded, at least from the standard cover, such as mobile phones,


cigarettes, gold bullion, cash, laptop computers,


yachts, classic cars or expensive wine. Hazardous cargoes are also covered though it should be noted that the insurance is cargo cover only – it would not cover liability to third parties caused by the cargo concerned. Bulk cargoes are also excluded unless specifically arranged. TT


Club via is encouraging


forwarders to use the new product


their insurance


brokers; for those that do not have one, it will provide a list. Brokers may have to be involved for compliance reasons, he points out. The


online be especially service attractive


will to


companies arranging insurance for specific shipments, Hooper believes. (Frequent shippers oſten arrange annual policies.) But he says, “there is a lot of cargo currently being shipped uninsured, which causes all sorts of problems.”


Unhappy new year for Italian carrier


All-cargo operator CargoItalia


has ceased operations and the company has been wound up, the airline said in a statement. The Milan Malpensa-based operator was established in 2005 and flew scheduled and charter services from Italy mainly to the Middle East, Far East and North America using a fleet of three MD-11 freighters although it had signed orders for five A330- 200Fs. CargoItalia blamed difficulties


with a four-times-a-week Milan-Hong Kong joint venture with Cargolux for its financial difficulties. Togo-based AfricaWest Cargo said it had added a


Airlines


B767F-300 freighter to its fleet to replace the Cargoitalia MD- 11s which it


had previously


leased. The plane covers direct operations from Liege and Lome, with onward flights to Central and West African destinations on a twice-weekly schedule.


performance audit in seven member states of import – Belgium, Denmark, Spain, France, Austria, Slovenia and Sweden – and in 21 countries of destination. Procedure 42 resulted in significant losses, it said. The ECA said that losses in 2009


are estimated at around €2.2 billion, or 29% of the VAT due on all imports under the procedure in the seven


states. Losses in the states of import and destination are estimated at €1.8 billion and €400 million, respectively. The court acknowledged that


the mechanism is a useful trade simplification but was not effective enough to ensure that the correct VAT was charged. It added that the Commission has proposed improvements


to the regulatory


framework but the European Council has so far failed to put them into practice. Although the survey and report


did not specifically mention the UK, it was also an issue here, confirmed ASM chairman Peter MacSwiney. “HM Revenue & customs did send a reminder to the trade last year (2011) warning forwarders that they could be liable for the VAT if shipments did go astray. You need to ensure that you can trust your importer.”


Forwarder loses extradition battle


Retired freight forwarder Christopher Tappin has failed in his High Court bid not to be extradited to the US on charges of conspiring to sell batteries for Iranian missiles. However, his lawyers said they would continue to fight on and appealed to the Government to stop extraditions under the “one- sided” UK-US extradition treaty. They said they would try to block his removal in the Supreme Court. Campaigners had been calling


for a moratorium on the transfer of suspects following a number of


other high-profile extradition cases. Mr Tappin, 64, a former director


of Orpington-based Brooklands Freight Services, is accused of attempting to export batteries for Hawk air defence missiles, saying he was the victim of entrapment by US government agents. In December 2005, he arranged a shipment of batteries from the US to the Netherlands but a US company appointed to handle import formalities, suggested by a business contact, turned out to be a front for customs agents.


Heathrow agent fined


Heathrow fruit and vegetable importer Apex Freight Services has been fined £5,500 for making inaccurate and misleading import notifications. It followed an investigation by the Rural Payments Agency’s (RPA) Horticultural Marketing Inspectorate. Apex director Mr Ranbir Ubhi, was found guilty of three separate breaches of EC marketing standards for fresh horticultural produce on 6 December at


Uxbridge Magistrates’ Court. The Crown Prosecution Service,


as acting Prosecutor for Defra and RPA, brought the separate charges against Mr Ubhi and his company for repeatedly making inaccurate import notifications to the Defra and HM Customs electronic import entry systems, with the intention of avoiding potential Defra inspection charges and Customs import duties.


Davies boosts freight


Gary Phillips, commercial manager of Cardiff based Rhys Davies Freight Logistics has taken on responsibility for the company’s Freight Forwarding Division, with a brief to significantly expand its operations


during the next two years. The


division, which has existed for over 20 years, offers a range of import and export freight services as well as services for hazardous materials and outsize loads.


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