www.bifa.org


Policy & Compliance


of each package shall not exceed 30 kg (or 20 kg for those shipped in shrink-wrapped trays). By way of illustration, the exact same substance, when shipped in 20-litre packages, would not be permitted to ship under the LQ provisions.


Compliance still required It is of importance to stress that shipping goods under the LQ provisions does not mean that adherence to certain regulatory provisions is not required. Training, under Chapter 1.3 of IMDG, for example, is still required for all persons employed, including shippers and packers, whose duties concern the transport of DG, LQ or otherwise. Training shall include the requirements governing the transport of such goods appropriate to the person’s responsibilities and duties. Similarly, the cargo classification provisions


remain applicable, as do requirements concerning appropriate packaging, filling provisions and leak-proofness. Shipments by sea still require a ‘container/vehicle packing certificate’. The certificate shall specify, amongst other requirements, that the packages are correctly segregated where appropriate, that the packages are not damaged or leaking, and that the correct labels and marks are in place. The LQ provisions are not a mechanism by


which DG can simply be declared and placed into the supply chain as though they fall entirely outside the scope of the applicable regulations. Through good fortune, lack of effective


identification and accountability, those who are motivated to mis-declare cargo when placing it into the supply chain may undoubtedly gain. Over time, the foundation of their respective business models and contracts become based on the cost savings derived from mis- declaration, undermining any safety culture. What may at the outset have been viewed as taking a risk becomes normal practice. In recognition of challenges faced by


stakeholders in the supply chain, DG software platforms continue to be developed. One such platform is EXIS Technologies’ Hazcheck Detect, a cargo screening solution that scans all booking details for keywords, validates against rules and highlights suspicious bookings to identify mis- declared and non-declared DG. As software applications become ever more sophisticated, while not themselves intelligent, they become vital tools in the armoury in safeguarding every aspect of the supply chain and deliver certainty of outcome.


BIFA would like to thank TT Club for permission to reproduce this article which originally appeared in TT Talk on 11 August 2020.


October 2020


BIFAlink


Beware of late payment claims arising when a firm is liquidated


There was an article in the July 2019 edition of BIFAlink about possible opportunistic late payment and interest claims, which was written by Pysdens Solicitors. Our friends at the European Freight Trades Association (EFTA) have reminded BIFA that the problem is quite real and one firm that it works with has recently had to pay a four-figure sum to a liquidator.


Some BIFA Members might be of the opinion that “well, we pay our bills on time so we have nothing to worry about”, when there is the possibility that they might actually be paying late without realising it. This is due to the two most common credit


terms, net monthly and invoice date. You will understand the difference between the two and both have their merits. Technically ‘invoice date’ terms (if abided by) should mean quicker payment but, in practical terms, ‘net monthly’ is regarded as easier to police because most customers tend to have a monthly payment run. Any credit controller will tell you that if you try


to get payment for separate invoices several times a month you will encounter “we make payment once a month on the 15th” (or similar) and there is no way of getting the customer to budge. To push the matter can cause aggravation, risk losing the business (from which money/profit was being made) and not achieve anything. Provided payment was being received


relatively close to terms it could be lived with; many of you reading this will agree with the sentiment and will have experienced similar. However, inadvertently the customer is being


allowed to pay late and whilst there is an ongoing trading relationship there is not really a problem if both sides are happy enough with the situation. The difficulty can arise if there is a breakdown


in the relationship or, more likely, the customer falls into insolvency and there is nothing agreed in writing about delayed payment being acceptable (for example, the supplier e-mailing to confirm that payment on the 15th of the month following is OK). Such written/evidential confirmation is rare. In


such circumstances a liquidator, with an eye on a potential asset can quite easily identify and generate a claim for late payment, which could


succeed and possibly be onerous and expensive to defend. This is why there is the need to put in place


whatever reasonable, practical measures you can to hopefully give some protection against such claims. If you are paying suppliers and are paying late without good reason, then it would be advisable to ask for confirmation in writing (possibly by email to a designated email address) that the account and any claims in relation to the account are up to date and no sums are due in respect of any debts, including historic ones, on a regular basis with a view to blocking any claims in the future under the Late Payment of Commercial Debts (Interest) Act 1998 for interest and compensation. You may also consider sending remittance


advices that assert at the bottom that the sum remitted is accepted fully in respect of the invoice(s) referred to above by agreement between the parties. These suggestions are not guaranteed but could offer some protection.


EFTA is a credit forum offering unique and vital up-to-date information that is missing from all other credit reporting options. BIFA Members are offered a 25% discount on subscription, which is less than £1 per day. Contact James Campbell on 01789 490891.


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