News
Japan International Freight Forwarders Association Inc. （JIFFA） recently held a briefing session on its new Forwarder’s Cargo Receipt （FCR） Form and its new publication titled ''Guide to Understanding JIFFA FCR'' in Tokyo and Osaka, giving advice on how to manage potential risks resulting from issuing FCRs.
In 2010, JIFFA formulated the Freight Forwarders Standard Trading Conditions 2010 to help member companies perform business activities and to keep them from troubles. In producing the new form, JIFFA made a sweeping review on the design as well as the terms and conditions on the face side of its previous Forwarder's Cargo Receipt （FCR） Form. On the reverse side of the new form, the Freight Forwarders Standard Trading Conditions 2010 was contained to clarify customers’ duty and responsibility as well as forwarders' principle of responsibility and limitation of liability. To help JIFFA members well understand the new form, JIFFA published the Guide to Understanding JIFFA FCR, which became available on July 30, 2012.
During the first half of the briefing session, Hiroki Okabe, a corporate lawyer for the JIFFA and Chairman of the association's Judicial Affairs Committee, explained main points of the new FCR Form.
''FCR forms are not valuable securities, but are used for making payments for buyers' consolidation services and other international business transactions,'' he said. As such, he focuses on important points for customers to understand before issuing FCR forms and things to remember to keep themselves from troubles between buyers and sellers.
In the second half, Mr. Ian Hyslop, a legal consultant of TT Club from who JIFFA received specialist advice when producing the new FCR Form and the Guide to Understanding JIFFA FCR, told attendees how to manage risks when issuing FCR forms.
He clarified four features of the FCR, developed by FIATA in the mid 1950s, under the generic title of Forwarders Certificate of Receipt:
1. It cannot be used unless a specific recipient （or consignee） is named.
2. It is not negotiable.
3. It is not a transport document.
4. The forwarder acts as agent.
Citing specific disputes brought to courts in Hong Kong, Ukraine, Bulgaria, Iran, and the United Arab Emirates （UAE）, Mr. Hyslop indicated that, when issuing an FCR, it is a prerequisite for a forwarder to ensure that the parties involved understand the FCR system thoroughly. He also warned to stay vigilant against signs of fraud and never respond to incorrect pressure to release goods.
''The FCR is a sophisticated tool, the use of which has been developed and refined to meet changing trading conditions. But it needs to be handled with care. The TT Club commends the valuable and painstaking work which JIFFA has done to establish an effective and safe FCR system,'' he concluded.
