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Incorporating BIFA Standard Trading
Conditions
The BIFA STC are a cornerstone of the trading relationship between Members and their customers. By ensuring their correct incorporation at an early stage, the Member can rely on their protection
One of the key reasons why freight forwarders join the British International Freight Association is to benefit from the protection offered by its well-established and respected Standard Trading Conditions (STC). Effectively, these are regarded as the rules of the game for the freight forwarding sector. At this point it must be emphasised that correctly incorporating the STC fulfils two vital functions. They establish the contractual relationship between the freight forwarder and the customer, and act as an empowerment to act as a direct representative on the customer’s behalf when dealing with HM Revenue & Customs (HMRC). At BIFA, we receive many enquiries regarding the STC and
the protection offered by them. The first question that we always ask is: “Have you incorporated them in your contract?” In many cases there is a positive affirmation of correct incorporation. However, in too many instances there is a worrying uncertainty as to whether or not the STC were adequately incorporated. Some Members have sophisticated electronic methods,
including tick boxes on websites and quotation systems where the customer ticks a box or similar to acknowledge that it accepts that business will be undertaken under the BIFA STC. It is important to emphasise that, wherever possible, the incorporation should include a positive acceptance of the terms in writing. If the freight forwarder is acting as a Customs agent and
relies on the protection offered by Clause 7, in order to comply with the Union Customs Code and HMRC requirements, the empowerment to act as a direct representative must be in writing. We would suggest that this guidance is made available to all employees, including sales personnel who have direct contact with the customer. BIFA’s guidance is that no work should be undertaken for the customer until it has accepted the STC in writing. Therefore, the logical first step is to ensure that the BIFA STC
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are incorporated into the contract with your customer. There are a variety of means by which this can be achieved, but the crucial point is to ensure that there is evidence that the Customer has accepted and agreed to be bound by the STC. In theory, to conclude a contract either verbally or in writing,
all that is required is an offer that is accepted for which value passes, such as an agreed price. It is essential to refer to the application of the STC as early as possible in the business process, whether it be orally or in writing.
STC references It is prudent to ensure that all letterheads, quote forms, invoices and e-mails contain a reference to the fact that “all business is transacted under the current edition of the Standard Trading Conditions of the British International Freight Association”. For paper-based incorporation, a copy of the STC should be included with the correspondence; for electronic methods, a link included to the relevant www. address for them to be viewed is sufficient. On quotes etc, reference should be made to the fact that by
accepting the quotation the customer agrees that all business will be transacted under the previously mentioned STC with a reference to where the STC may be viewed. Where a credit application form is used, it is essential to
ensure that it includes a declaration to the effect that in making the application for credit the customer has had the BIFA STC drawn to its attention, that it has had the opportunity to read and understand the BIFA STC, and agree that they apply to all and any business carried out for the customer. It is important to ensure that the reference to the STC
January 2019
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