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Migration to the 2017 BIFA Standard Trading Conditions


Why you need to switch to the 2017 version of the STC and how to go about organising the changeover


One of the main benefits of BIFA Membership is the ability to use the BIFA Standard Trading Conditions. The conditions are central to the forwarder’s business relationship with its clients, and when incorporated will cover all forwarding and related contracts. The BIFA STC give the company adopting them indemnities and


defences, whilst retaining the test of reasonableness under the Unfair Contract Terms Act 1977. From the customer’s viewpoint, its forwarder’s responsibilities and liabilities are clearly defined. Without being able to rely on the BIFA Conditions, the Member must rely on common law, unless an international convention or statute applies. In 2017, after careful consultation with Members, insurance


brokers and solicitors, BIFA issued the 2017 version of its STC. These were a tidying up of the 2005A edition, incorporating significant changes such as the implementation of the Verified Gross Mass requirements and other legal changes. Information regarding the changes can be found at www.bifa.org/media/4082918/stc-changes-2017.pdf.


General comments In order to ensure consistency between our Members, BIFA would encourage all to adopt the new edition by 30 September 2018. This will need Members to consider several issues such as when and how to ensure that the transition goes smoothly. It is important to remember that the 2017


Conditions will only be correctly incorporated into contracts if the company gives suitable notice to customers before commencing contracting with them under the new terms. Also, it is important to decide on how clients will be advised of the new conditions. Whilst there is no legal requirement to do so, some suggest sending a hard copy to the customer addressed to the company secretary or similar. However, current guidance indicates that an e-mail with a PDF of the STC attached, or a link to Conditions on the Member’s or BIFA’s website, is sufficient.


The timetable As a first step it is important for Members to decide on a specific ‘launch date’ from which they will solely trade under the 2017 STC. As part of this plan, it is important to consider which documents/messages etc show a reference to the Conditions. Where a specific date is mentioned, it is important to ensure that the correct date is shown; from calls received at the Secretariat, it is important to remember that many waybills show conditions on the reverse. It is important to ensure that the migration plan aligns the launch


date with using documents with the correct reference to the 2017 STC. It is essential to send out documents referring only to the 2017 conditions in order to prevent confusion. Therefore, a process has to be put in place to withdraw all out-of-date documents.


www.bifa.org


10


May 2018


Courtesy of the Port of Felixstowe


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