Hiring a competent freight forwarder is really a grave necessity for the companies that are aware of the risk involved in negotiating or transacting a business with it. It's not only about the possible delay in business or damage in the logistics subject for delivery, but also because of the major role of the forwarder to ensure the security of the global supply chain and prevent the possible manipulation of the terrorists of the weapons for mass destruction. This role is recognized by the authorities who regulate the international exportation of goods.
However, it is seldom taken into account by some companies which prime consideration is only the safe and on-time delivery of their orders. That should not suppose to be the case because it is a general concern which involves not only the business profit, but also the security of the society. And thus, if you care both for your company and the people around you, here are some important facts that you should know about the responsibilities of the freight forwarder, the rules which they have to observe, and other matters relative to it:
- Forwarding agents are responsible in filing export data – this simply means that whatever things are included by the agent in the said data entails a liability on his part if any error is committed or rule violated. Yet, none of them from the company can continue the transaction in the instance that there is a possible violation in the rule or regulation if the action is pursued. Thus, always bear in mind that it is your agent's responsibility to understand all of what is required of him.
- Agents should comply the requirements of Export Administration Regulations – before the agent can proceed with the transaction, he has to meet first the requirements set by the Export Administration Regulations (EAR) notwithstanding the case in which their decisions or actions are totally dependent on the instructions provided by the company that hired the service. Nevertheless, being the employer of the freight forwarder, you also have responsibilities in the any task you have required him to perform.
- Familiarity of the general prohibitions is compulsory on the part of the agent – these prohibitions should serve as guide for the agent to avoid committing the possible violations in the process of carrying out the transaction. And it is worth of mentioning that a violation in any of the rule stipulated in the prohibitions denotes a corresponding penalty such as fine and imprisonment.
- Agents should be guided with the rules with regards to their customers' rights – in any kind of business, it is always the welfare or interest of the customers that matters. Perhaps, this is also the reason why the same principle holds true in the guidelines set by the authorities for the protection of the customers whose businesses can't simply be taken for granted. Thus, one crucial role of the forwarding agents and exporters to perform is to ensure that the suspicious circumstances are not ignored; otherwise, failure to do so would constitute a violation.
These are certainly the things which you should bear in mind in making a transaction with a freight forwarder so as to avoid carrying the burden which is ultimately not yours.