Clearing and Forwarding Contracts Clause Samples
A Clearing and Forwarding Contracts clause defines the terms under which goods are handled, transported, and processed through customs by a third-party service provider. It typically outlines the responsibilities of the clearing and forwarding agent, such as arranging shipment, managing documentation, and ensuring compliance with import/export regulations. This clause ensures that both parties understand their obligations and liabilities, thereby reducing the risk of delays, fines, or disputes related to the movement of goods across borders.
Clearing and Forwarding Contracts. In most field offices SC or its counterparts contract with a clearing and forwarding agent to clear food through customs and to forward food from the port to SC or counterpart warehouses or, in some cases, directly to distribution sites. The quality of clearing and forwarding services varies from country to country and among organizations offering these services within a single country. In some countries there may be considerable competition, while in others only one or two companies offer services. Name of clearing and forwarding company Duration of the contract, terms of renewal and termination Amendments, in writing, to the contract Cancellation of contract for material breaches including failure to pay Insurance to cover losses, and/or, as necessary, posting of performance bonds Name and title of person authorized to sign contract for clearing and forwarding agent Force Majeure clause Right to sub-contract with SC approval Lines of authority--name(s) and title(s) of person at SC or a counterpart to whom agent reports Type of currency--US $, other currency Payment terms: Minimize large advances to the extent possible Require the company to finalize the account within a limited number of days after shipment is discharged Supporting documents submitted with invoices: Copies of all port invoices for landing fees, port warehouse, storage, and labor charges Copies of signed registers for payments to laborers for reconstitution of damaged food and moving food from warehouses to tracks or railcars for onward transport Services to be performed: Clearing-- payment of port fees, import licenses, obtaining customs clearances, stamps, and phyto-sanitary certificates Forwarding-- arrangements for food transport directly from vessel or from port transit sheds to SC or counterpart warehouses or direct distribution sites Documents to be used and routing of documents: SC dispatch waybills SC Loss and Adjustment Reports Responsibilities for damaged food: Reconstitution of damaged food Analysis and disposition of food suspected to be unfit for human consumption Liability for indemnification or damages, including payment of penalties for failure to perform as per contract Provisions for settlement of disputes, enforcement of the contract, and payment of damages