FFSI Manual - Standard Procedures

  1. PROCEDURE ON PRE-ALERTS
  2. ROUTING ORDER
  3. PROCEDURE ON DELIVERIES OF IMPORT SHIPMENTS (AIR & SEA)
  4. ACCOUNTS RECEIVABLE REPORT
  5. CO-OPERATION CHECK LIST BETWEEN NETWORK OFFICES AND NEWLY APPOINTED MEMBERS
  6. STANDARD APPLICATION FORM FOR MEMBERSHIP

1. PROCEDURE ON PRE-ALERTS

1.1 Scope
  The process covers the time a consolidation is completed for uplift followed by a "Pre-alert" to destination member to the time consolidation arrives at destination.
1.2 Objectives
 

To ensure that each time a Pre-alert when sent is monitored closely by the destination (break-bulk) member and follow up corrective action when the consolidation does not arrive as advised or that discrepancies occur.

To enable destination member to inform consignee prior to flight arrival and to secure clearance and delivery services.
1.3 Definition
  1.3.1 Pre-Alert
   

Pre-alert is advance information of a consolidation provided by consolidator member at origin of the consolidation.
  1.3.2 Consolidator
   

The originator of a consolidation.
  1.3.3 Break-Bulk Agent
   

The destination agent receiving the consolidation.
1.4 Responsibilities/Procedures
  1.4.1 Consolidator
   

The consolidator is responsible to inform in advance by way of sending a Pre-alert to the destination member (break-bulk agent). The minimum information required of a Pre-alert is as follows:

  • The Master-Airwaybill number;
  • The House-Airwaybill number; 
  • Flight number/Departure date; 
  • Pieces/Weight; 
  • Contents; 
  • Details of exporter; 
  • Details of importer. 

OR

By faxing the consolidation manifest to break-bulk agent. See APPENDIX I - PAGE 5 - "CONSOLIDATION MANIFEST".
  1.4.2 By Destination Member (Break-Bulk Agent)
   

On receipt of a Pre-alert the destination member is to record and check for arrival of consolidation per information made available.

Should the consolidation is not manifested per designated flight or that there are irregularities, the destination member is to:

  • Counter check with the airlines; 
  • Inform consolidator for their follow up; 
  • Follow up action till matter gets resolved. 

2. ROUTING ORDER

  2.1 Scope
   

This section covers the procedure for the process of handling Routing Orders from the time a Routing Order is signed by the importer to the time an exporter acknowledges and accept the instructions given to them by an importer.
  2.2 Objective
   

The purpose for this procedure is to ensure that all Routing Orders have clear instructions and handled effectively for positive results.
  2.3 Definitions
    2.3.1 "Originator"
      Means the member at importing Country responsible in securing the Routing Order.
    2.3.2 "Recipient"
     

Means the member at exporting country.
  2.4 Interpretation of the INCO Terms (Terms of Trade)
    "INCO" means International Commercial Terms of Trade. Network Offices are encouraged to refer to the table of terms as per APPENDIX III - PAGE 7, in order to apply the correct terms at all times.
  2.5 Responsibilities
    2.5.1 Originator
     

The originator of a Routing Order is to ensure that all instructions on the Routing Order Form are clear for all parties to comply with instructions such as but not limited to, the followings:

  1. Carriers nominated;
  2. Rates sold;
  3. Terms of charges;
  4. Special arrangements, such as :
    • Free house delivery; 
    • Other special instructions. 

The originator of a Routing Order is to fax and mail, with minimum delay, to the respective member for prompt follow up once the Routing Order is signed.
    2.5.2 Recipient
     

The respective member receiving the Routing Order is to promptly present (hand over or via fax) the document to exporter.

The recipient member is to inform originator, within 7 days as to whether the exporter has agreed to accept the instructions.
  2.6 Routing Order Form
   

See APPENDIX II - PAGE 6 - ROUTING ORDER FORM

Another alternative that is also commonly acceptable is for the importer to prepare the Routing Order Form on their own letterhead.
       
    2.6.1 Distribution
     

There should be a set of three copies for each Routing Order:

1ST. Copy - For exporter;
2ND. Copy - For recipient member;
3RD. Copy - To be retained by originator.

3. PROCEDURE ON DELIVERIES OF IMPORT SHIPMENTS (AIR & SEA)

  3.1 Scope
   

The process covers the time a shipment arrives at its destination until the time the shipment is delivered.
  3.2 Objectives
   

To ensure that shipments are correctly delivered with all necessary requirements and to avoid dispute between Origin Agents (Consolidators) and Destination Agents (Break-bulk Agents).
  3.3 Definitions
    3.3.1.

Origin Agents are the Consolidators at the origin of the shipments;
    3.3.2. Destination Agents are the Break-Bulk Agents at the destination of the shipments;
  3.4 Responsibilities/Procedures
       
    3.4.1 Charges collect shipments
     

Origin Agents must indicate clearly and correctly, on the airwaybill, the amount,  and its currency, to be collected by the Destination Agents;
      When freight/handling charges are not to be revealed and therefore not to be shown on the airwaybill, the Origin Agents, under such circumstances, will have to only state "as per arranged instead of the charges. When such is the case, the Origin Agents must indicate the amount to be collected on the Cargo Manifest and at the same time clearly stated on their pre-alerts. The Origin Agents must insist that the Destination Agents acknowledges the instructions;
      The Origin Agents must invoice the Destination Agents per the currency shown on the airwaybills;
      In the event, the Destination Agents wish to settle the amount by other currencies, the Destination Agents must first seek the acceptance from the Origin Agents and agreement on the currency exchange rates;
      Destination Agents are fully responsible to the Origin Agents for all monies due for collection from the consignee and to settle such amounts collected per "FFSI Account Settlement Policy"
       
    3.4.2 Ocean Freight Shipments - Bill of Lading
     

The Destination Agents may only deliver the shipments to the consignee on presentation of the original bill of lading;
      Alternatively, the Destination Agents are allowed to deliver the shipments to the consignee only when the bill of ladings are surrendered;
      The Destination Agents are fully responsible and accountable to the bank or the Origin Agents when delivery is not in accordance to the above requirements;
       
    3.4.3. Airfreight Shipments - Airwaybills Consigned to the Banks
      Under no circumstances, are the Destination Agents to deliver the shipments consigned to the banks unless the bank gives an endorsement or an indemnity from the bank;
      The Destination Agents are fully responsible and accountable to the bank or the Origin Agents when delivery is not in accordance to the above requirements.

4. PROCEDURE ON "ACCOUNTS RECEIVABLE REPORT"

  4.1 Objective
    To achieve the objectives of "FFSI ACCOUNTS SETTLEMENT POLICY" for the interests of Network Offices.
  4.2 Responsibilities
       
    4.2.1 Network Offices
     

Network Offices are responsible to submit their "Accounts Receivable Report" through our Online Monthly Accounts Receivable System (OMARS) with a deadline on the 15th of each month.

Creditor Network Offices are first requested to remind Debtor Network Offices for settlements for account receivables, which are overdue. In the event Creditor Network Offices are not satisfied with the results of their actions they then may request the assistance of the Network Services Office.
    4.2.2 Network Services Office
     

Each month the Network Services Office shall timely remind Network Offices to submit the "Accounts Receivable Report" by way of e-mail.

Network Services Office will only act upon the request of a member when receivables become 60 days and over.

Network Services Office shall collate submissions and inform Network Offices on a monthly basis.

5. CO-OPERATION CHECK LIST BETWEEN NETWORK OFFICES AND NEWLY APPOINTED MEMBERS

  5.1 Objective
   

To conduct a survey to find out from existing Network Offices in respect of the possible co-operation status with newly appointed members.
  5.2 Responsibilities
       
    5.2.1 Network Services Office
     

Network Services Office  is to send out the survey per form as in APPENDIX VI - PAGE 10 to all network offices once the Board of Executive Committee accepts a newly appointed member.

Network Services Office will then inform the results of the survey to newly appointed members.
    5.2.2 Newly Appointed Members
     

On receipt of the survey results from Network Services Office, the newly appointed members are to immediately get into contact with network offices who had indicated possible co-operation for business development.

Newly appointed members are also to write to those network offices who had indicated no possibility to co-operate to offer services whenever required.

6. STANDARD APPLICATION FORM FOR MEMBERSHIP

 

Network Offices are encouraged to recommend any prospective international freight forwarder for membership per FFSI CONSTITUTION clause 6.2.
  6.1 Objective
   

The STANDARD APPLICATION FORM FOR MEMBERSHIP as per APPENDIX VII - PAGES 11 to 16 are easily made available for the purpose.
  6.2 Responsibilities
    6.2.1 Network Offices
      Network Offices are to update membership list when handing out forms to potential members.


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