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has entered into and potential loss of business, which could be extensive and far more valuable than the extent of your claim. The letter should start with a heading detailing all the particulars


of the items being held, including both goods and/or documents. This information should be cross-referred to the relevant transport document number, such as a bill of lading number plus appropriate shipping dates. The first paragraph should advise that there are outstanding


debts referring to any credit agreement that you have in place or payment terms agreed with the client and clause 21(B) of the 2017 BIFA STC if you intend to rely on that clause as well. The client should be warned that it is in breach of its contractual obligations leading to the accrual of the debt and that these sums are now therefore overdue. Also, it is recommended that you include information regarding outstanding invoice numbers and amounts that are now due. If this is too long it is advisable to attach a schedule of unpaid invoices or an account statement. In the second paragraph, you need to state in wording similar to


the following: “The purpose of this letter is to give you [your client] notification that all sums due must be paid before the release of the goods detailed above. “You are advised that in accordance with the Standard


Trading Conditions of the British International Freight Association clause 8(A) (i), we [your firm] are taking a lien on the above-mentioned shipment(s). You have 21 days’ notice that should the sums due not be paid, then the goods on hold may be sold and the proceeds applied to the outstanding debt. Any legal expenses and interest will be deducted from the


BIFAlink


Particular attention should be paid to the insurance cover provided to the forwarder by the insurer. It is important that the policy covers goods held under a lien against all risks of loss or damage.


proceeds of sale and any remainder remitted to you under clause 8(A) (iii). “We are a member of the British International Freight


Association and all our business is conducted in accordance with the BIFA Standard Trading Conditions (STC) and these terms apply between us [add in here details of notice given to your customer of the application of the terms to the contracts under which the debts claimed was given, such as in a signed credit agreement or accepted quote, or quotes, referring to the conditions]. “We are exercising this lien contractually on the basis that


you are the owner of these goods, or have the authorisation of the owner to contract on its behalf on the basis of the BIFA STC (see clause 3). If you are not the owner, or have not been so authorised by the owner, please advise immediately as we shall need to seek instructions from the owner.”


When you have a right to hold goods It should be noted that Members have no right to hold goods under the BIFA STC unless their customer has title to them, or has the authority to act on behalf of the owner of the goods as specified in Clause 3 of the BIFA STC. This authority does not have to be expressly given and may be implied or provided for in terms of a head contract. Members have to take instructions from the party with the right of


control over the goods; the identity of that party may not be clear when the lien is exercised. You are entitled to clarify who that party is, but this must be done quickly in order to keep any rising charges to a reasonable sum. Any lien exercised against an owner who is not your client nor


bound by the STCs will not be as broad ranging as a BIFA lien. It will be a specific lien covering costs relative to the goods covered by one specific shipment and will not be a general lien for all outstanding monies owed to you. Furthermore, your right of sale will only exist if you have given reasonable written notice of the intention to sell and obtained a court order permitting you to sell. One area that is often overlooked is that as a bailee, a forwarder


should be aware of the insurance aspects of exercising a lien. Particular attention should be paid to the insurance cover provided to the forwarder by the insurer. It is important that the policy covers goods held under a lien against all risks of loss or damage. If this is not the case, the broker should be consulted to arrange suitable cover. Once a lien has been taken out, the party who has exercised it will be held responsible for the loss or damage to the goods. Liens are a very difficult area. Disputes regarding their legality can escalate very quickly and if they do, you are strongly advised


to seek immediate legal assistance to ensure your rights are protected and that you are not infringing anyone else’s rights.


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