FAQS:
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1: Where is your warehouse address ?
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A1: Our HKG warehouse address is: Flat 5A, 3/F, Join In Hang Sing Centre, No. 2-16 Kwai Fung Crescent, Kwai Chung, NT, HK.
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2: As a shipper, what documents we need to ship out the documents?
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A2: Instruction Form, Commercial Invoice, Packing List. If you ship out goods in HKG and using we HFL for the first time, you also need to fill in our RA Form.
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3. What is the Regulated Agent Regime?
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A3: In line with a security standard of the International Civil Aviation Organization, the Hong Kong Aviation Security Programme which is enforceable under the Aviation Security Ordinance, has implemented a requirement for strengthening the security of air cargo since 6 March 2000. Under this requirement airlines can carry only consignments of cargo, courier and express parcels or mail on passenger flights from a Regulated Agent, a Known Consignor or consignments which have been subjected to security controls. The Regulated Agent Regime is a system under which a cargo handling age nt, freight forwarder or any other entity of air cargo can be qualified as a Regulated Agent.
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4. What is a Regulated Agent? |
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A4: Regulated Agent (“RA”) is an agent, freight forwarder or any other entity which conducts business with an airline operator, meets the requirements of the Hong Kong Aviation Security Programme and has registered with the Civil Aviation Department. To be an RA, the agency had to develop and implement a security programme which includes details of the agent's cargo operating procedures for meeting the requirements of the Regime and security training to be provided to operating staff to familiarize with the operations of the Regime. Also the Regulated Agent has to ensure that all their staff are familiarized with the Handling Procedures for Regulated Agent Regime (RAR). And we HFL is certainly a Regulated Agent.
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5. How does the Regulated Agent Regime affect a consignor?
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A5: Under the regime, a Regulated Agent or an airline operator is required to apply security control measures on consignments of air cargo received from shipper who is not a Known Consignor unless the goods are exempted cargo.
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6. If I am a shipper, how can I become a Known Consignor?
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A6: Under the regime, a Regulated Agent or an airline operator can recognise a consignor whom it has established business as Known Consignor by:
• Establishing and registering the identity and address of the consignor and the agent authorized to carry out deliveries on his behalf; and
• Requiring the consignor to sign or enter into the business contract a declaration declaring that
• i. the cargo consigned by him will not contain any explosive or incendiary device; and
• ii. he has made his best endeavour to protect the consignments against unauthorised interference during preparation, storage, and transportation
• iii. he agree that the packaging and contents of his consignments may be examined for security reasons.
• iv. he employs reliable staff to prepare the consignments
If you have a business account with we HFL, you can request us to recognise you as a Known Consignor. We recognize you thereafter and assign you a Known Consignor code. You should apply this code for identification of your status in the shipping documents when you tender your cargo for shipment.
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7. If I become a Known Consignor, what should I do when I tender my cargo to the Regulated Agent or airlines?
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A7: You should ensure the security integrity of your cargo during preparation, storage and transportation until they are received by HFL. Your cargo should also be accompanied with shipping documents containing description of the contents and quantity of your cargo sufficient for customs clearance as well as your Known Consignor code for identification.
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8. What is Exempted Cargo ?
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A8: Certain cargo is exempted from security controls. They include cargo designated to be carried on board cargo only aircraft, transfer air cargo (cargo making connections with different flights), human remains, live animals, bona fide life-saving materials and items less than 6.3mm thick. For details, please check with your Regulated Agent or airline.
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9. What is DG (Dangerous Goods) ? How to classify the cargo not a DG?
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A9: Dangerous Goods are articles or substances which are capable of posing a significant risk to health, safety or property when transported by air. For details and definition according to HK Government, pls see http://www.cad.gov.hk/english/faq.html#dg
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10. What is Letter of Credit ?
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A10: Letter of Credit is what we usually call “LC”. It is essentially a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. It is o ften used in international transactions to ensure that payment will be received. To know more, please click here: http://www.sitpro.org.uk/trade/lettcred.html
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11: What is a Bill of Lading?
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A11: It is a document of title, without which, delivery of the goods cannot normally be obtained. People always use “B/L” as the abbreviations of this document.
In the early days of trading, merchants actually accompanied their cargo onboard the ship. Thus, contract was not really necessary entered between shipper and shipmaster who as also shipowner in most of the case. It was until the middle of 11th century, a practice of registering cargo onboard ship using a book of lading was adopted.
By the middle of the 15th century, it was less common for a merchant to accompany cargo at sea, and so the appropriate page was torn from the book of lading and given to the merchant as receipt for the cargo. The merchant or any person who had bought this receipt from the merchant then came onboard at the end of the voyage for cargo delivery. If this receipt matched with that of the other half on the book of lading, the cargo would be released. From this, it evolved the idea of Bill of Lading which represents the title of goods, and this title can even be transferred to other parties but signing it over to that person.
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12. If we decide a survey has to be done when there are some remarks on reception of the cargo, is there a list of survey organization that are recognized internationally? Would it be any appointed survey by any side of the client, forwarder or carrier is agreed? And the process would be based on the survey report?
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A12: The first thing is: the surveyor must have the expertise to carry out the survey as requested. The other thing is to consider whether it is likely the case will be litigated in a particular court. If yes, you have to find out if that court will only recognize survey reports of some designated surveyors. If yes, you have to instruct those particular surveyors. From our experience, most courts in the world do not have a system of only recognizing certain surveyors' reports. Theoretically, the report of any surveyors who are good at the things in question should be reliable no matter the surveyor is instructed by the cargo?? owner, forwarder or carrier because the surveyor is supposed to be an impartial third party expert.?? However, from our experience, it is common that a surveyor would look at the issues from the perspectives of the party instructing that surveyor.? Moreover, if you instruct a surveyor, you naturally can ask him a lot of questions relating to the case. This may help your case. Therefore, it is advisable that each party e.g. cargo?? owner, forwarder and carrier should appoint its own surveyor to do the inspection and investigation in order to protect its own interests for processing the claim case later on.
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13. ex Xiamen FCL consignments under routing / nomination from forwarder in Denmark under freight collect and shipping line nominated from Denmark under their service contract arrived destination and officially received advise after 3 months good non-delivery with accumulated demurrage / storage and unpaid freight collect. Consignee now bankrupt and Denmark agent claim shipper should be responsible for outstanding payment. MBL consigned to Denmark against and HBL consigned to actual consignee. Is forwarder issued FIATA B/L need to take up responsibility to chase payment from shipper in Xiamen or is forwarder in Denmark giving routing / nomination of consignment responsible to hold consignee in Denmark for outstanding payment.
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A13: On the assumption the Xiamen forwarder as the NVOC issued its FIATA B/L to the shipper, it should be the shipper under the HB/L to pay al the outstanding chargers including freight plus the extra costs e.g. demurrage & storage charges resulting from the uncollected cargoes. The consignee has bankrupted and not taken cargo delivery. The shipper under the B/L contract should assume liability for all the consequences arising from the cargoes being uncollected by the consignee as agreed per B/L terms. The Xiamen NVOC should press the shipper for immediate cargo delivery instruction and settlement of all outstanding charges. In case the shipper also disappears, the Xiamen NVOC as the carrier under it B/L will be the one to bear the losses resulting from this uncollected cargo case. The Xiamen NVOC should settle the demurrage and storage charges with the shipping company based on the OB/L terms, and should sell or dispose of the uncollected cargoes according to its HB/L terms.
The fact that this was a nomination cargo or routing order from Denmark forwarder does not change the fact that the final conclusion of the contract was evidenced by the issue of the Xiamen NVOC’S B/L. The Xiamen forwarder is the NVOC whereas the Denmark forwarder under its service contract should also not change the position as such could be viewed as some kinds of introduction and arrangement that the Xiamen principal asked its Denmark agent to perform. The Denmark forwarder being the agent for the Xiamen NVOC has not done anything in this uncollected cargo matter and therefore should have no liability. The Xiamen NVOC should also have no right against the consignee because there is no contractual relationship between the Xiamen NVOC and the consignee as it is assumed the bankrupted consignee has never presented the HB/L for the cargo delivery.
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14. If the shipping company makes a fault and lose the cargo, how should it be handled? What would the handling differences be between if the cargo had bought insurance and not?
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14A: If you have bought cargo insurance, the cargo insurer should compensate you 100% or 110% (depending on the insured value as agreed between you and the insurer in the policy) of the cargo value. Thereafter, the cargo insurer will subrogate your rights and sue the shipping company for recovery. However, if you do not have any cargo insurance, you have to instruct your lawyer to sue the shipping company for the cargo losses. If you take action in the Shanghai Maritime Court, the PRC Maritime Code will apply to your claim. The court will order the shipping company to compensate the cargo value to you subject to the carrier’s liability limitation (666.67SDR / package or 2SDR / kg whichever is the higher) if it is proved the cargo losses was caused by the shipping company’s negligence. In general, legal proceedings against shipping companies are very time consuming and costly, it is most advisable that cargo owners should buy cargo insurance to protect their interests for fuller and quicker compensation in case of cargo losses or damage.
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