Leonard Neill
FREIGHT FORWARDERS beware! Signing certificate of origin documents on behalf of a client can place the agent in jeopardy, with a number of instances now on record where forwarders have been held responsible for irregularities, some even having to face legal action.
The warning comes from Tish Schutte, Johannesburg Metropolitan Chamber of Commerce and Industry (JMCCI) head of international trade, who authored a manual on the subject.
ÒSouth AfricaÕs re-entry into the global trade arena and the complex situations this produced necessitated the introduction of the new expanded manual on rules and regulations about certificates of origin,Ó she says. ÒBut even though forwarders were warned some years ago and again at the time of the issue of these regulations in print that there were serious pitfalls, many have preferred to ignore the situation, and go about their business as though these forms are a mere extension of their duties.Ó
A certificate of origin takes the form of an affidavit covering the goods to be conveyed, and the person signing it makes himself or his company liable for any action. It should therefore be the exporter who signs the document, with the forwarder merely acting as the courier, says Schutte.
International norms
ÒThe manual took eight months to complete. We are justifiably proud of it and what it portrays. In fact we are one of the few countries to have adopted international norms and encapsulated them in a manual of this nature.
ÒIt is therefore with some amount of incredulity that I read the headline in the March 1 issue of FTW which stated ÔChambers are abusing their power in certificates of origin tariffs.Õ
ÒThe greatest tragedy is that many people, particularly among forwarders, still appear to be in the dark regarding the responsibilities taken by chambers in the issuing procedures. SAAFF members were given a warning a few years ago which strongly discouraged them from undertaking the responsibilities placed on them as applicants signing affidavits on their clientsÕ behalf. In this way they are, in fact, accepting legal responsibility for the contents and value of goods shipped by their clients. They therefore become liable for any abnormalities found by foreign customs authorities who do examine containers and weigh them up against documents provided.
ÒAt our offices we find forwarders accusing us of being obstructive and bureaucratic when we try to point out to them that a certificate of origin is not Ôjust a piece of paperÕ as they so often claim, but is in effect a powerful legal document which not only should they not be completing but which is dangerous in the extreme if incorrectly completed. And remember it is done under oath.Ó
Referring to the claim by a reader in the FTW article that chambers levied a R100 charge for non-members having the certificate issued and completed while members were being charged far less, Schutte says that the R100 fee is the charge recommended as a normal levy by the chambers, but members are offered a discount which varies from one branch to another.
