NCBFAA Guidelines for Using the Revised Terms & Conditions of Service

6/1/16

       The NCBFAA has amended its Terms and Conditions of Service by changing paragraph 14, "General Lien and Right To Sell Customer's Property". 

 

10/1/15

        The NCBFAA Board of Directors recently voted to revise the Terms and Conditions of Service that is recommended for use by the Association by adding new Subsection 6c under Paragraph 6 Reliance on Information Furnished, adding new Paragraph 17 NO Duty to Provide Licensing Authority and renumbering paragraphs subsequent to new Paragraph 17.

 

02/26/13

        The NCBFAA Board of Directors recently voted to revise the Terms and Conditions of Service that is recommended for use by the Association by replacing Section 2 "Company as agent" with new language. 

 

11/02/2012

         The NCBFAA Board of Directors recently voted to revise the Terms and Conditions of Service that is recommended for use by the Association by adding new paragraph 20 "Force Majeure" and renumbering old paragraph 20 "Severability" to paragraph 21 "Severability" and old paragraph 21 "Governing Law; Consent to Jurisdiction and Venue" to 22 "Governing Law; Consent to Jurisdiction and Venue."

 

07/21/2009

       The NCBFAA Board of Directors recently voted to revise the Terms and Conditions of Service that is recommended for use by the Association. In addition to bringing the document up to date (by reflecting the current name of U.S. Customs and Border Protection and addressing contemporary issues such as the CBP “10 + 2” Regulations), the new document provides an opportunity for each company to make its own decision concerning how to address certain issues.

       This memorandum is intended to provide guidance to parties using this document on the following items that need to be considered:

       1.      Article 3 provides an opportunity for users to reflect time periods by which customers needed to provide notice of any potential claim or to otherwise actually bring an action:

                                      i.      With respect the period for providing notice of any claims, the old form established a period of 90 days. That is not, however, a mandatory time period, so that companies can insert any period they feel is reasonable under the circumstances for customers to initiate claims.

                                    ii.      With respect to filing suit, the old form established a one-year and two-year period, respectively, for bringing suits on matters arising out of ocean or air surface transportation. While those time periods were consistent with the minimum periods established by applicable law, a member could determine to provide for a longer period if it wished to do so. Each member should fill in the time period it deems appropriate. However, since these time bar periods are set by statutes, nothing shorter than the one-year (for ocean) and two-year (for air or surface) would be enforceable.

                                   iii.      The 75-day time period from the date of liquidation of the entry for filing suit on import entries is not mandated by any statute. Accordingly, a member can insert any time period it believes reasonable under the circumstances.

                                  iv.      Members can also establish any time period they believe is reasonable for claims involving other types of damage, rather than the two-year provision that appeared in the old document.

       2.      Article 9 deals with limitations of liability, and members need to establish the extent to which, if any, they may wish to limit their liability. There being no applicable statute mandating any particular figure, members can elect to insert any figure (higher or lower) they believe is reasonable without regard to the $50 limitation that had existed in the old form.

       3.      Article 13, relating to the cost of collection, requires the member to determine the appropriate interest rate to insert in the event it wishes to seek to collect interest when compelled to bring an action to collect outstanding receivables. If members decide to insert any particular percentage, they should consult counsel to ensure that that percentage does not conflict with applicable state law.

 

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