Supplies and Food Aid - Field Handbook (UNHCR, 1989, 296 p.) CHAPTER 4 - RECEIPT OF SHIPMENTS 4.1 Local Facilities, Capabilities and Requirements 4.2 Notification of Shipment and Shipping Documents (introduction...) Chart 4.A: Shipping Advice - Telex Information Chart 4.B: International Shipping Documents for UNHCR Consignments Chart 4.C: Importance of International Shipping Documents 4.3 Customs Exemption and Clearance (introduction...) Chart 4.D: Checklist of Requirements - Customs Exemption and Clearance 4.4 Bills of Lading and Letters of Guarantee 4.5 Contracts with Forwarding Agents (introduction...) Chart 4.E: Selecting a Forwarding Agent Chart 4.F: Assign Port Clearance Responsibilities to an Implementing Partner* 4.6 Port Activities (introduction...) Local Requirements and Conditions Chart 4.G: Summary of Port Activities Port Handling, Storage and Dispatch Port Handling and Dispatch Records 4.7 Shipments in Transit 4.8 Shipping and Receiving Reports 4.9 Receipt of Local or Regional Consignments 4.10 Shipping Insurance (introduction...) Chart 4.H: Illustrative Examples of UNHCR Insurance Coverage Chart 4.I: Information Necessary for UNHCR Insurance Coverage 4.11 Insurance Claims (introduction...) Chart 4.J: Inspection of Shipments for Damage or Loss Chart 4.K: Summary of UNHCR Consignee Action in the Event of a Shipping Loss or Damages Chart 4.L: Documentation to Support Insurance Claims

Supplies and Food Aid - Field Handbook (UNHCR, 1989, 296 p.)

CHAPTER 4 - RECEIPT OF SHIPMENTS

4.1 Local Facilities, Capabilities and Requirements

4.1.1 In many refugee programmes, large quantities of supplies and food aid are donated or purchased internationally. They arrive from outside the host country, transported by ships, airplanes or overland by trucks or trains. Receiving and handling these shipments in a timely manner needs good coordination and careful attention to documentation requirements and port clearance procedures:

(a) to meet government import regulations;
(b) to take delivery from the transporter; and
(c) to notify Headquarters that the goods have been received, and their condition on receipt.

4.1.2 UNHCR international purchases and donations are normally made C&F (cost and freight), and shipped by sea to a named seaport in the host country. UNHCR arranges shipping insurance. If shipping insurance is provided by a donor or supplier, the shipment terms are CIF (cost, insurance and freight). For landlocked countries and regions, the named destination may be inland, in which case a Notify Party may be requested to provide assistance at the initial port of entry for in-transit shipments.

4.1.3 Air shipments are usually delivered to the international airport nearest the UNHCR consignee field office, while international shipments by rail or road arrive at a customs depot or bonded warehouse, from which the consignee can take delivery.

4.1.4 For all shipments, the consignee requires certain information and documentation promptly, to take action to expedite the receipt, clearance and final distribution of the shipment. For international shipments, SFAS at Headquarters has instituted procedures to ensure that this information is forthcoming for international purchases. For local or regional purchases, the UNHCR field office must ensure that similar arrangements are made with designated Purchasing Officers or suppliers.

4.1.5 Requirements for receiving locally supplied goods are usually less complex, as suppliers fulfil their contractual obligations by delivering the consignment to the location stated in the purchasing agreement, and there are no importation complications.

4.1.6 Monitor receiving arrangements and handling facilities regularly to identify any potential problems as soon as they are evident. Once an international shipment is on its way, it is usually difficult (and costly) to change the delivery instructions or to discover that receiving and handling facilities are inadequate or inoperative. Common problems in the ports of developing countries include:

(a) port congestion, which can be aggravated by the simultaneous arrival of large shipments or by delays resulting from improper shipping documentation;

(b) a shortage of equipment, labour, transport or storage in the port;

(c) unsuitable packaging of the shipment for available handling facilities; or

(d) a lack of extra sacks, drums or cartons to repack spilled or damaged goods.

4.1.7 Maintain contacts with government and port authorities who can give UNHCR shipments priority for discharging, handling and clearance. Know the capabilities of local receiving and forwarding agents and implementing partners to assist in consignment receiving and distribution operations. Assign responsibilities and define procedures for receipt, clearance, transport, storage and reporting of consignments in the context of local UNHCR field operating conditions.

4.1.8 Form SFAS/FH-1 (see Forms Annex) is a suggested checklist for the receipt and clearance of international shipments. Use this checklist, or an appropriately modified version, to ensure that action to receive, clear and distribute each consignment is timely and adequate. Maintain a Shipment Expected/Arrivals Board, to track shipments in the delivery period.

4.1.9 Keep SFAS at Headquarters informed on the arrival of each shipment. Notify them, by telex, on:

(a) receipt of the shipping documents from the supplier;
(b) receipt of the shipping documents from SFAS;
(c) arrival of the vessel/carrier;
(d) completion of discharge; and
(e) completion of customs clearance and removal from the port.

4.2 Notification of Shipment and Shipping Documents

4.2.1 International suppliers must notify SFAS at Headquarters in advance of a shipment and within three days of the actual date of departure. For shipments by sea, on departure from the port of loading, the supplier immediately sends one complete set of original shipping documents to the consignee by the fastest possible means. If a Notify Party has been identified, SFAS also instructs the supplier to send another complete set of documents to the Notify Party, to facilitate the delivery of in-transit shipments.

4.2.2 SFAS relays shipping information promptly by telex to the UNHCR consignee field office, and any Notify Party. See Annex XII for an example of a shipping advice telex. On receipt, check with the carrier's agent or the receiving agent to confirm the time of arrival and initiate local arrangements to receive and deliver the consignment to its final destination.

4.2.3 SFAS receives two sets of shipping documents which are verified to be in order. They are also used to arrange shipping insurance. SFAS then forwards a Shipping/Insurance Advice and Receiving Report (see Annex XIII for an example), with one complete set of shipping documents attached, to the UNHCR consignee field office. Instructions for distribution reporting for donations are included, if appropriate.

4.2.4 In certain instances, some or all of the shipping documents may travel with the consignment because of timing considerations or standard industry practices. UNHCR consignees must track these shipments themselves, based on the information provided in the SFAS shipping notification telex:

(a) air shipments, where a complete set of shipping documents is attached to Package Number One of the consignment, including the air waybills;

(b) land shipments by road (truck) or rail, where the carrier presents the waybill on delivery of the consignment. Other shipping documents for customs clearance are forwarded to the consignee directly from the supplier; or

(c) shipments by sea of short duration, where the shipping documents accompany the cargo in the captain's bag.

4.2.5 Verify local requirements for international shipping documents and advise SFAS accordingly. SPAS must know your needs well in advance, particularly when special certificates or conditions apply, in order to advise the supplier to provide correct documentation.

4.2.6 SFAS makes every effort to supply shipping documents without delay to the UNHCR consignee field office and any Notify Party. These documents are important. They require the same care as other valuable documents, such as cheque books or refugee registration forms. They identify the shipment, its contents, and, in the case of a Bill of Lading, represent title to the goods. Never file shipping documents on receipt, unless they are copies and action on an original set has been taken:

- Process the documents to exempt the shipment from duty and taxes.

- Route them to the designated receiving agent who will present them to the captain or carrier's agent to take possession of the consignment.

- Verify the availability of port facilities, handling equipment and labourers.

- Schedule transport, storage and turnover of the consignment to the implementing partner at the final destination.

4.2.7 Once duty-free entry of the consignment is authorized, for shipments by sea the UNHCR consignee field office must endorse the Bill of Lading in favour of the designated receiving agent «... for clearance», or as appropriate. Rush all documents to the receiving agent who will handle arrangements in the port to release the shipment, with specific instructions on related port activities and reporting requirements. Annex XIV illustrates a covering memorandum which may be used for this purpose. The contents of the memorandum will vary according to local document routing and port clearance practices.

Chart 4.A: Shipping Advice - Telex Information

· Project and Purchase Order reference numbers.

· Bill of Lading, truck, rail or air waybill number.

· Exact quantity and description of the goods.

· Name of the vessel/carrier, trucking company or airline/flight number.

· Actual time of departure (ATD).

· Expected time of arrival (ETA) at the named port of discharge, and at final destination if contracted.

· Insurance details (from supplier if CIF, or SFAS if C&F).

Chart 4.B: International Shipping Documents for UNHCR Consignments

* Original Bill of Lading, Air Waybill, Truck or Rail Waybill

* Commercial Invoice

* Packing List

Certificate of Origin

Phytosanitary Certificate (for food)

Inspection Certificate or Certificate of Analysis (if applicable)

Insurance Certificate (if CIF)

Gift Certificate (if applicable)

Any other documents requested by UNHCR consignee or Headquarters, e.g., Radiation Certificate, Veterinary Certificate.

* Essential documents for all international shipments.

Chart 4.C: Importance of International Shipping Documents

1. To identify the shipment and its contents.

2. To obtain customs exemption certificate.

3. To plan requirements for handling, transport, storage and delivery of the consignment to the final destination.

4. To receive the goods from the carrier or its agent.

5. To confirm goods received against goods shipped and goods ordered.

6. To report receipt to SFAS at Headquarters.

7. To make insurance claims should loss or damage occur.

8. To exchange for a Letter of Guarantee, if this was issued before the shipping documents were received.

4.3 Customs Exemption and Clearance

4.3.1 International purchases or donations enter the host country through a seaport, an international airport or a land customs depot. Countries control the flow of their imports and generate revenue through customs inspections, duties and taxes. Government customs agents will not release imported goods until all duties are paid or a customs exemption certificate is provided. If clearance action is not taken promptly, goods may be held in the port or placed in a «bonded» warehouse, accruing storage charges. Bonded warehouses located outside of the immediate port area are often used to alleviate port congestion and to protect consignments from pilferage.

4.3.2 UNHCR-supplied programme materials and food aid for the refugees are normally exempt from customs duties. UNHCR can also facilitate the duty-free clearance of supplies arriving on behalf of our implementing partners, but must exercise caution by agreeing to clear only appropriate shipments suitable for direct use in refugee programme operations. Goods imported by implementing agencies, such as office equipment, vehicles or personal effects, should not be handled by UNHCR for duty-free clearance.

4.3.3 Local requirements for customs exemption vary from country to country, and may also depend upon the nature or intended use of the goods in a consignment. In some countries, general agreements have been established for «exempt» organizations, simplifying the formalities of free entry. In other countries, each consignment must be certified separately, sometimes via a government ministry. Getting the necessary documents approved can take considerable time. Know what these requirements are for sea, air or land shipments, and who has authority to grant duty-free entry. Establish standard document lists and routing procedures to get customs exemption expeditiously.

4.3.4 Obtain an exemption certificate for each consignment as soon as possible, in advance of the arrival of the shipment. Forward the exemption certificate with the shipping documents and appropriate receiving instructions to the designated UNHCR agent, who will deal with the port authorities, customs officials, shipping agents and others to release the consignment from the port. A sample covering memorandum to use when transmitting shipping documents is attached as Annex XIV. It illustrates the type of information which should be provided to the receiving agent. Especially when the port (on the seacoast?) is some distance from the place where the exemption certificate is issued (in the capital city?), the documents must be rushed to the UNHCR agent using the fastest, most reliable means available.

Chart 4.D: Checklist of Requirements - Customs Exemption and Clearance

1. What restrictions may apply to the import of goods?

Check import restrictions before issuing a purchase request. Some commodities may not be permitted or may require special documentation: e.g., processed foods such as cheese, jam; radioactivity certificates for agricultural products. Customs often encounter difficulties when assessing the essential nature or intended use of the goods being imported: e.g., cigarettes for refugees or goods for use in income-generating projects. Be sure that the shipment is essential and can be justified under the terms of the government's exemption provided to UNHCR and its implementing partners.

2. Who is authorized to issue an exemption certificate?

Identify the senior official responsible, who may be in a government ministry or in the "exempt" organizations that are UNHCR implementing partners. Blanket exemption is preferable, which may involve various government ministries and publication in the official government gazette.

3. What documents and information are required to issue and obtain an exemption certificate?

Determine standard requirements, usually a copy of the shipping documents (Bill of Lading, commercial invoice, etc.). If the receipt of the shipping documents is not timely, a Letter of Guarantee providing a detailed description of the goods, their value, name of the vessel, number of the cargo manifest and other information may be acceptable.

4. Who handles customs clearance for UNHCR shipments?

Identify the responsible implementing partner or forwarding agent. Responsibility for customs clearance may vary according to the type of shipment, e.g., shipments arriving by sea or air, food and non-food shipments.

5. How can delays in customs clearance be avoided?

Ensure that the description of the goods in the exemption certificate accurately defines the actual goods in the consignment, and that necessary customs documentation (additional to the exemption certificate) are provided. Determine and fulfil other customs requirements, as necessary.

6. What procedures should be followed to route documents and expedite customs exemption and clearance?

Outline standard procedures explaining what documents are sent to whom to obtain the customs exemption and the subsequent routing, requirements and responsibilities to clear shipments. Clarify the action necessary to deal with potential anomalies in the standard procedures, or define separate procedures for different types of shipments/situations.

4.4 Bills of Lading and Letters of Guarantee

4.4.1 The Bill of Lading is usually prepared and issued by the shipping agent of the vessel on which the consignment is transported. See Annex XV for an example of a Bill of Lading. All the «originals» are negotiable by endorsement, and any one of these can be used to collect the goods at the port of discharge. Normally, the captain carries only a copy of the Bill of Lading on board the vessel, which is not transferable. Standard practice is to issue three originals, or four if a Notify Party is indicated:

(a) one original is sent by the supplier to the consignee (and one to the Notify Party) with the other shipping documents; and

(b) two originals are sent by the supplier to SPAS at Headquarters, who retain one original and forward the other original to the consignee field office, in case the Bill of Lading sent directly from the supplier fails to arrive.

4.4.2 A shipowner, by virtue of the Bill of Lading, is obligated to see that the goods listed are delivered to the named consignee, the person to whom the shipping company has contracted to deliver them. The Bill of Lading represents title, or ownership, of the cargo. To receive the shipment, maritime convention requires The consignee or his agent to present, to the ship's master or the ship's agent, a duly endorsed original Bill of Lading and proof of entitlement to the goods. By turning over a shipment without an original Bill of Lading or where there is any doubt as to the identity of the holder, the shipowner runs the risk of being liable for the whole market value of the goods delivered, in the event that a third party presents an original Bill of Lading and claims the goods.

4.4.3 Unless the named consignee can present himself to take delivery with an original Bill of Lading, the Bill of Lading must be endorsed on the back to transfer entitlement to an assigned agent, rather like endorsing a bank cheque. UNHCR consignees should endorse Bills of Lading only to authorized receiving agents who can then obtain the goods on proof of identity. Never endorse a Bill of Lading «To order»; this gives title of the goods to anyone in possession of the document.

4.4.4 To avoid delays in discharging and receiving the shipment, when the consignee has not received an original Bill of Lading in time to take delivery of the cargo from the vessel, a Letter of Guarantee signed by the UNHCR consignee may be acceptable. Most ports or ships' agents have a standard form Letter of Guarantee. An illustrative example is attached as Annex XVI. A bank guarantee, obtained from the local bank where UNHCR operates its account, may also, be needed to certify the consignee's creditworthiness. UNHCR does not normally require this additional certification because shipowners are familiar with our organization and its credibility. The Letter of Guarantee certifies that:

(a) the Bill of Lading is not yet in the consignee's possession;

(b) the consignee relieves the shipowner of any liability, will pay any costs or damages sought by another party in relation to the delivery of the goods without the Bill of Lading, and will make available the goods themselves on demand, if possible; and

(c) the Bill of Lading will be surrendered, duly signed and endorsed, upon receipt.

4.4.5 In situations involving short sea voyages, where an original Bill of Lading cannot reach the consignee before the vessel itself arrives, an original Bill of Lading may be carried in the captain's bag on board the ship. The captain or the ship's agent must be confident that the receiving agent requesting delivery of the consignment is properly entitled to do so. In this instance, the UNHCR consignee field office must provide an official letter of authorization to the designated receiving agent, who can present this to obtain the original Bill of Lading that travelled with the consignment, and to take delivery of the cargo.

4.5 Contracts with Forwarding Agents

4.5.1 Because of the complexities involved in the receipt, clearance and inland distribution of international consignments, particularly those arriving by sea, the UNHCR field office or the implementing partner responsible may choose to contract with a forwarding agent to handle these matters. Receiving shipments by air or by land directly may be more convenient. Provide proper documentation and send someone from the office to the airport to meet the flight or carrier's agent, and pick up the consignment. Consider appropriate arrangements for meeting, receiving and transporting shipments arriving at a land customs depot.

4.5.2 Contracts with forwarding agents must be established with due regard for standard UNHCR purchasing practices. Assess the required services, in consultation with government and port authorities, implementing partners and prospective agents who are knowledgeable about local practices and port facilities. Evaluate local firms providing the necessary services, in consideration of their capabilities, suitability, reliability and efficiency. Contract awards must be authorized by the geographic desk at Headquarters, and should not exceed prescribed US-dollar limitations without competitive tendering and approval of the UNHCR Committee on Contracts, as appropriate.

4.5.3 A variety of services are available from companies which may be referred to as clearing agents, superintendence companies, or forwarding agents, inspection services or surveyors may also be necessary to examine food shipments, technical equipment or damaged goods. Forwarding agents usually provide the most comprehensive service, including customs clearance (if they are customs brokers) and transportation services, to carry the goods from the port to their final destination.

4.5.4 Consider the need to hire independent superintendents or inspectors to oversee port handling operations. If reliable and experienced forwarding agents can take responsibility for these operations, third party inspection should not be necessary. In some circumstances, however, the forwarding agent may not be able to control the quality or quantity of goods arriving and held in the port. Retain another agent independently to:

(a) observe the discharge, storage and loading operations;
(b) check weights and inspect individual packages or bags for conformity of packaging;
(c) sample and test goods according to recognized standards for quality assurance; and/or
(d) issue weight and quality inspection certificates.

4.5.5 Forwarding agents, superintendence and inspection companies usually have established fee scales for each of the services they perform. Try to negotiate discounts in these fees for UNHCR. In any event, make local provisions to pay for their services.

4.5.6 Promote open competition when selecting an agent. Try to identify individual companies which can provide all the services needed, to avoid situations where the services of several different agents must be coordinated, and to simplify the settlement of resulting claims. Do not use one agent exclusively over an extended period. Select several suitable companies and use them on a rotational basis, as long as their services are satisfactory and costs are competitive.

4.5.7 In smaller ports in some developing countries, however, there may not be a number of competing local agents. Where choice is limited, check the services provided and the fees charged carefully. Monitor actual port activities and clearance reporting requirements closely. If performance is not satisfactory, consider alternatives, such as delegating port clearance and handling to a competent international expert working directly for an implementing partner responsible for logistics and commodity management in the host country.

Chart 4.E: Selecting a Forwarding Agent

CRITERIA:

· Proper facilities to meet UNHCR's needs, such as a bonded warehouse to protect and control shipments in transit or a trucking fleet for inland transportation.

· Trained, competent and trustworthy staff who know what to do, when, and how to do it.

· Good service at a reasonable cost, based on a proven record of reliability and cost control when compared to the other companies providing similar services.

SMALL COMPANY:

Advantages	Disadvantages
Representatives are flexible and often immediately available, even outside office hours and on public holidays.	May not have an established reputation, and could overcharge. Small size probably means less influence in the market, with port authorities, carriers, etc. May not be able to meet their contractual liabilities should damages be incurred.

LARGE COMPANY:

Advantages

Disadvantages

Corporate image and reputation may result in preferential fee scale to UNHCR. Have specialized staff in each field of expertise, and resource personnel to meet most requirements. May have contacts, correspondents and affiliated agents abroad. May be able to negotiate discounts with carriers, handling agents, etc. Often have their own warehouse. Should be able to meet their contractual liabilities, should damages be incurred.

Bureaucratic structures provide less flexibility in meeting client needs. May have to deal with various departments, each handling a specific task.

Chart 4.F: Assign Port Clearance Responsibilities to an Implementing Partner*

* These tasks illustrate the responsibilities actually undertaken by an implementing partner in one African country. Similar duties could be assigned to the receiving department of implementing partners responsible for field logistics or commodity management in other countries.

1. Clear all refugee food and non-food shipments from the seaport into a nearby national refugee supply warehouse or by truck directly to regional warehouses or refugee sites, as instructed.

2. Handle customs exemption arrangements and, deal with customs agents in the port to clear consignments.

3. Liaise with UNHCR, WFP and the government food department on planned food shipments, receipt and reporting on final port clearance.

4. For all food and non-food shipments, liaise with UNHCR, the port authority and shipping agents.

5. Hire and pay port porters and stevedores for cargo handling and commercial vehicles when needed to move consignments from the port to warehouses.

6. Report amounts dispatched daily from the port, and the destinations. Provide supporting documents (truck way-bills, etc.) to the commodity control unit and the transport unit. Indicate details of shipments remaining in the port, ready to transport or awaiting clearance.

4.6 Port Activities

4.6.1 On arrival of the vessel or carrier, the shipment should be discharged and cleared promptly. Ideally, the UNHCR consignee field office, the responsible implementing partner, or a designated receiving agent should have made the necessary arrangements prior to arrival, to supervise the unloading directly onto vehicles or wagons and dispatch the goods immediately from the port to their final destination. This expeditious procedure is, however, rarely possible.

Local Requirements and Conditions

4.6.2 Port transit time must be minimized. Shipments are usually discharged and held in port warehouses, transit sheds, an exposed storage area or simply on the quay. Storage space in the port is assigned by the port authority or, in some instances, by the local agent of the carrier, pending completion of inspection and clearance procedures. UNHCR or its designated agents cannot control in-port storage. Yet, it is during this time that goods are exposed to possible pilferage, diversion and damage from the elements or poor handling and storage practices. Cargo containers do add some measure of security to their contents.

4.6.3 Port clearance procedures are complex and time-consuming. The use of reliable forwarding agents is recommended, particularly for shipments arriving by sea at ports which may be some distance from the UNHCR consignee field office. These responsibilities may also be delegated to an implementing partner who may handle the arrangements themselves when staff have relevant expertise, or they may retain their own forwarding agents.

4.6.4 Most port authorities stipulate that the shipping documents must be received a number of working days before the vessel berths. Heavy expenses can result if ships cannot discharge their cargo and are detained pending arrival of the shipping documents. Shipowners may also levy demurrage or detention charges for delays caused by slow rates of discharge, or when rented cargo containers are held in the port beyond a prescribed period. Port authorities also charge a fee for goods stored or remaining in the port beyond a prescribed grace period, usually one week to ten days. Seek information from your forwarding agent. Present the shipping documents as soon as possible; never wait until the ship arrives.

4.6.5 Some ports impose discharging and port storage restrictions to control pests and to maintain cleanliness. Known as Direct Delivery, vessels may be permitted to discharge certain goods, such as cereals or cement, only by direct transfer to trucks or rail wagons, which must leave the port immediately. If such is the case, arrange port and customs clearance, handling equipment, sufficient labourers and transport units to receive and handle the cargo before the vessel is due. Otherwise, port authorities may detain the vessel at anchor.

4.6.6 The responsible Field Programme Officer in the UNHCR consignee field office must determine the initial distribution (or dispatch destination on release) for each shipment arriving in the port. Provide specific instructions to the designated agent, ensure that transportation arrangements are made, and request confirmation on completion of port clearance and dispatch to inland locations.

Chart 4.G: Summary of Port Activities

1. Tally clerks keep track of the number of individual items or amounts being discharged from the vessel or carrier, to confirm delivery quantities. Individual tally clerks may be appointed for the shipping company, the consignee or the shipping insurance company.

2. Insurance company representatives, UNHCR-designated receiving agents or inspectors may also oversee the discharge of the cargo and port handling, to note any shortlanding or excess quantities, or damages and their apparent cause.

3. A qualified surveyor must inspect all food shipments and other UNHCR consignments where damages or losses will exceed US $1,000.

4. UNHCR or the designated agent takes delivery of the shipment from the local shipping company agent against an endorsed Bill of Lading, Letter of Guarantee, or other shipping waybill, and supporting documentation which may include a packing list, tally sheets, statement of facts, or inspection report. Any evidence of shortage or damage must be specified at this time.

5. UNHCR or the designated agent arranges customs inspection and clearance, providing a customs exemption certificate for the shipment and any other documentation (for example, a commercial invoice, certificate of origin, phytosanitary certificate or radiation certificate) required by the government customs officials.

6. UNHCR or the designated agent obtains a release order from the port authority on presentation of the shipping agent's release and the customs clearance certificate. Port fees may be payable for handling operations or storage before a port release order is issued.

7. UNHCR or the designated agent arranges removal of the shipment from the port, including provision of the transport units, labour, necessary supervision and documentation controls.

Port Handling, Storage and Dispatch

4.6.7 Confirm responsibility in advance for the payment of handling charges between the shipping company and the consignee. Avoid paying for the same service twice. Normal UNHCR shipping terms are C&F (cost and freight) liner out, in which case the consignee is liable for all related costs once the shipment «leaves the ship's tackle» at the destination port. If the Bill of Lading stipulates «landed» or «ex quay», the shipping company must place the goods on the quay alongside the vessel, while the consignee is responsible for any handling costs to move the goods from the quay. Inspection services during discharge may be stipulated by SFAS or in a donor agreement, in which case SFAS or the donor will appoint and pay for the inspector.

4.6.8 Check the terms for each shipment carefully, and consult with the designated agent to establish requirements and to stipulate who pays for what. Never agree to pay demurrage, detention or other exceptional charges without first consulting with the SFAS Shipping and Insurance Officer at Headquarters, by telex or telephone.

4.6.9 Before the vessel arrives, verify that the port authority will berth a vessel without delay and that adequate discharging equipment and labour are available. Handling, transporting and storing each shipment are labour-intensive operations. Unless provided in the contract of carriage on the Bill of Lading, the receiving agent must arrange stevedoring contracts for equipment and labour to discharge, handle and move the cargo to the assigned in-port storage area or to dispatch the cargo out of the port. The port authority or companies licensed to operate within the port may offer these services. Hold the handling contractor responsible for any loss or damage caused by negligence or failure to meet his contractual obligations.

4.6.10 During discharge. UNHCR's receiving agent, or other appointed official, should be present continuously, to minimize discrepancies regarding quantities received and to supervise careful handling:

- Tally the cargo as it is discharged from the ship.

- Discourage the use of hooks because resulting holes in commodity bags and packages cause losses or damage the contents.

- Separate damaged goods from undamaged goods immediately. Provide extra bags or packaging materials to repair or repack spilled or damaged goods promptly.

- Keep cargo containers locked and sealed until ready to de-stuff them and remove the contents from the port. Record the seal number and indicate if the seal was broken on receipt or prior to de-stuffing.

- Try to ensure that consignments stored in the port are properly stacked on dunnage in a clean transit shed or storage area.

- Provide a transport voucher for each vehicle load or, if less than a full load, for each consignment leaving the port, to be signed at destination to confirm that the type, quantity and condition of the goods dispatched have been received.

4.6.11 When a large number of consignments are expected or have arrived within a short period of time, establish priorities for clearing the shipments from the port. Some port authorities prefer to deal with current shipments first, allowing earlier shipments to remain in storage until the present rush is over. Regardless of when they arrived, queue consignments in the correct sequence for clearance, as follows:

- Clear damaged, but recoverable, goods held in open areas.

- Clear perishable goods or goods with limited shelf-life as soon as possible.

- Clear other goods stored in the open.

- Clear containerized shipments before expiry of the container free-time period (usually 10 to 14 days after discharge).

- Clear consignments held in transit sheds or port warehouses.

4.6.12 Locating a supply warehouse adjacent to the port can have several advantages, particularly if the warehouse has a secure section which the government will authorize for holding «bonded» shipments. Consignments may be moved to this warehouse immediately on arrival, and held «in bond» pending customs clearance. This eliminates port storage fees, reduces damages or losses which may occur in the port, and alleviates port congestion. The warehouse also provides a staging area for dividing shipments intended for several inland destinations and for dispatching goods in a timely manner to meet supply demands.

Port Handling and Dispatch Records

4.6.13 For each shipment, maintain a record of port handling, clearance, dispatch and receipt details, including descriptions and quantities of the supplies and related handling costs. Cost data is useful to analyze expenditures in comparison with local market rates quoted competitively, and to recommend changes to improve efficiency. The information may also be needed by SFAS at Headquarters to recover ITSH subsidies from WFP and other programme donors.

4.6.14 UNHCR receiving agents should submit a report, with supporting documentation, for each consignment cleared. See Form SFAS/FH-2 in the Forms Annex for an example, or agents may have their own forms which meet UNHCR requirements.

4.6.15 To identify loss or damage, and where it occurred, compare:

(a) the Bill of Lading and packing list with the discharge report for loss or damage during transport and discharge;

(b) the discharge report with the port release order and customs certification, for loss or damage in the port;

(c) the port release order with the dispatch report and the transport waybill or port gate ticket, for loss or damage on loading; and

(d) the transport waybill with the signed copy from the inland destination, for any loss or damage during inland transport.

4.7 Shipments in Transit

4.7.1 For inland destinations and land-locked countries, UNHCR shipments may have to transit a seaport or travel overland «in bond» through another country. UNHCR logistics personnel or a designated UNHCR forwarding agent in the sea port or the country where the goods are in transit may be asked to act on behalf of the consignee field office at destination, to expedite the shipment of these goods.

4.7.2 «Bonded» shipments are subject to a guarantee, or bond, given to the government of the country where the goods are in transit, that the goods are intended for another country and are not being imported into the transit country. On presentation of proof that the bonded goods have left the transit country, the bond is released. If the goods remain in the country of transit beyond a stated period of time, the bond is forfeited. Bonded shipments are usually arranged and transported by forwarding agents who charge special fees for these services.

4.7.3 Signify that transit assistance is required by designating the UNHCR office or agent at the transshipment location as the «Notify Party» when issuing a purchase request or instructing Headquarters concerning shipments. For example, in East Africa, the SFAS Purchasing Liaison Officer in Nairobi is the Notify Party for all international shipments passing through Mombasa, and the Regional Logistics Officer in Djibouti is the Notify Party for all goods shipped via Djibouti and destined for Sudan, Ethiopia or Somalia. SFAS then arranges for the supplier to provide a complete set of shipping documents to the Notify Party.

4.7.4 As requested or required, these officials can facilitate the transit of international shipments by:

(a) locating and securing the shipment on arrival at the transit port;

(b) arranging any government documentation necessary to move the shipment to its final destination;

(c) providing inspection, superintendence or port handling and clearance services; and

(d) confirming transshipment arrangements, onward dispatch and final delivery of the consignment.

4.7.5 The Notify Party requires a complete set of shipping documents to attend to local requirements and arrangements. To release goods in transit for transshipment, UNHCR or its designated agent may have to post a bond to guarantee that the goods will not stay in the transit country. Shipping insurance information is necessary to confirm or extend coverage to the final inland destination. UNHCR consignee field offices should arrange for payment of related shipping and handling services in the transit port or country with the Notify Party before expenses are incurred.

4.7.6 On receipt at the final inland destination, the UNHCR consignee field office is responsible for acknowledging delivery to both the Notify Party and SPAS at Headquarters.

4.8 Shipping and Receiving Reports

4.8.1 In compliance with UN rules and regulations, the UNHCR consignee field office must submit a Receiving Report to SFAS for each international shipment within one month of its arrival at the named destination. The Receiving Report confirms the fulfillment of the supplier's and carrier's obligations to UNHCR and, in the event of loss or damage, initiates action for an insurance claim. For each consignment, the Receiving Report to be completed is attached to the shipping documents forwarded to the consignee by SFAS (see Annex XIII for an example).

4.8.2 Send the completed and signed Receiving Report to SFAS without delay. Do not wait to attach insurance claims documentation, which can be dispatched separately when available. Before completing the Receiving Report, the responsible UNHCR official should verify that:

(a) the shipment has been received and the date;

(b) the quantities and description of the goods is (or is not) in accordance with the shipping documents; and

(c) any damage or loss is noted and local action to initiate an insurance claim has begun.

4.8.3 At the end of each month, SFAS issues a Shipping Status Report listing all international consignments shipped during the month. Copies are sent to each UNHCR consignee field office. Monitor these reports to verify the receipt of shipping documents and consignments, and to ensure that the relevant Receiving Reports have been forwarded to SFAS at Headquarters.

4.9 Receipt of Local or Regional Consignments

4.9.1 Receiving local or regional consignments demands the same care and attention as receiving international shipments, although the shipping documentation and procedures will usually be less complex.

4.9.2 On receipt, the storekeeper or designated official must confirm that the nature of the goods and the quantities correspond to the information shown on the waybill, and that their condition is satisfactory. Note any apparent shortage or damage on the waybill before signing for receipt of the shipment. One copy of the signed waybill is returned to the person who delivered the goods. Retain one signed copy as a receipt voucher, for recording and reporting purposes.

4.9.3 In the event that the consignment was locally or regionally purchased, the person making delivery should present the following documents to the consignee:

(a) original waybill;
(b) copy of the Purchase Order;
(c) copy of the invoice;
(d) packing list, showing the contents of each package in the consignment; and
(e) Inspection Certificate, if any.

4.9.4 On receipt of a shipment from a local or regional supplier, the UNHCR receiving agent must acknowledge receipt to the Purchasing Officer who placed the order. Payments to suppliers can be made only when the terms of the purchasing agreement are fulfilled, including specified delivery arrangements.

4.9.5 After careful inspection, submit a Receiving Report to the responsible Purchasing Officer. Any loss or damage, and its apparent cause, must be reported promptly, to permit recovery or replacement of the goods or their value from the supplier or the insurance company.

4.9.6 Goods received are entered in the warehouse stock records for control purposes, carefully stored and protected pending their release to the intended users or distribution to the refugees.

4.10 Shipping Insurance

4.10.1 SFAS at Headquarters insures all international purchases exceeding US $ 1,000 under UNHCR's Worldwide Open Cover Marine Cargo insurance policy. Beginning in 1988, a separately administered project has been established to which SFAS charges insurance costs for goods purchased by them under General Programmes. Insurance premiums for purchases from Trust Funds or Special Programmes continue to be charged against their own project budget, where an amount of one per cent of the total C&F value of the goods must be allocated to cover this expense.

4.10.2 SFAS also prefers to insure donations under the UNHCR policy. The geographic desk at Headquarters must provide a Purchase Authorization for the related premiums which may later be recovered from the donor. Donors sometimes provide their own insurance coverage, but this is usually not as comprehensive or as economical as the UNHCR coverage. It is also less efficient when UNHCR must deal with the numerous other companies and agents selected, in the event of a claim.

4.10.3 The UNHCR policy provides the most comprehensive coverage for shipments moving on any form of transport (ship, truck, rail wagon, airplane) against all risks, including war and strike risks. Coverage extends from the point where liability for the goods passes to UNHCR (usually at the port of loading) until the goods reach their final warehouse in the port of discharge or other destination named in the insurance certificate. This includes arbitrary storage up to 60 days in transit ports and port warehouses, awaiting on-transportation or port clearance, provided such delays are beyond the control of UNHCR. If necessary, this coverage can be extended for an additional period, provided SFAS is notified to this effect. The insurers must also be informed, through SFAS, of any deviation from the normal course of transit, such as may occur if the goods are discharged in a port other than the one specified in the insurance certificate.

4.10.4 The singular advantage of UNHCR's policy is that goods are insured throughout their voyage, including 22 days in the port at their destination, when shipments are most vulnerable. If goods remain longer than 22 days in the port of discharge, notify SFAS by telex to extend the insurance coverage, such extension being required for each additional 15-day period.

4.10.5 UNHCR insurance covers all types of goods and expenses related to their transport, including assessments for compensation to the shipowner, using the principles of general average in the event of loss or damage to the vessel or its cargo during the voyage. Arbitrary storage or damages caused by UNHCR's negligence, however, are not insured.

4.10.6 All transportation of cargo where UNHCR is at risk should be insured through SFAS. The UNHCR policy is an open cover policy, which means that insurance declarations can be made at any time during the term of the policy. It is not necessary for coverage to be in place before a shipment begins its voyage, provided coverage is requested as soon as the necessary information is available. A Purchase Authorization issued by the geographic desk may be necessary to cover the insurance premium.

4.10.7 UNHCR officials should forward information on insurance requirements to the SFAS Shipping and Insurance Officer in writing through the geographic desk as soon as details of the consignment's contents, value, point of loading and destination are known. See Annex XVII for the Shipping Insurance Request which may be used for this purpose.

4.10.8 For an additional premium, goods requiring inland transportation from the port of entry to a warehouse at another final destination can also be covered, provided the originally insured consignment is not divided for distribution to several destinations. Details of these requirements must be forwarded to the SFAS Shipping and Insurance Officer at Headquarters, who will arrange the extended coverage.

4.10.9 Whenever possible, local purchases should be contracted Free at Destination, in other words, UNHCR only pays for the goods and quantities actually delivered at the named destination. Any shipping liability rests with the supplier, as UNHCR takes title to the goods only at the time of delivery.

4.10.10 For each shipment insured under the UNHCR policy, SFAS sends confirmation of coverage by telex and forwards a Shipping/Insurance Advice form (see Annex XIII for an example) to the consignee. For shipments not covered by UNHCR where the value of the goods exceeds US $1,000, a copy of the Insurance Certificate, stating coverage arranged by the donor or the supplier, should accompany the shipping documents received from the supplier. If an original Insurance Certificate is received, retain a copy and forward the original to SFAS immediately (as it will be needed at Headquarters in the event of a claim).

4.10.11 Insurance coverage ceases when the consignee, receiving agent or implementing partner takes delivery of the goods at the destination named in the Insurance Certificate. Goods are usually turned over to an implementing partner in the host country for storage and transport to inland warehouses and distribution sites. These agencies should provide suitable insurance coverage so that any loss or damage to UNHCR-supplied goods during this phase of their transport can be claimed, and the goods repaired or replaced, or compensation received.

Chart 4.H: Illustrative Examples of UNHCR Insurance Coverage

Example 1:	200 Mt of sugar Destination: Mogadishu The sugar is insured up to the time it leaves the port for refugee sites inland, or until it is dispatched and unloaded into the ELU/CARE warehouse in Mogadishu.
Example 2:	2,000 tents Destination: Gambella, Ethiopia (via Djibouti) The tents are insured until they arrive in Gambella, including their transit in Djibouti and during inland transport and unloading in Gambella.

Chart 4.I: Information Necessary for UNHCR Insurance Coverage

· Project symbol, Purchase Order/CAF number, or other reference.
· Names and addresses of the consignor and the consignee.
· Description of the goods.
· Number and description of the packages, and shipping marks.
· Gross weight.
· Value of the goods, and cost of freight.
· Means of transport/name of the carrier.
· Point of departure.
· Date of departure.
· Destination.
· Shipping marks.

4.11 Insurance Claims

4.11.1 Insurance gives an added measure of protection to the material assistance that UNHCR provides to its beneficiaries. The effort and costs to insure a consignment are wasted, however, unless claims are submitted for insured damages or losses.

4.11.2 Report promptly, by telex to SFAS, all shipping and transit losses estimated to exceed US $1,000, regardless of the international coverage provided. SFAS handles all matters related to these insurance claims and undertakes recovery action with the insurance companies involved. Timely cooperation from the UNHCR consignee field office and its forwarding agents is essential to follow up with complete claims documentation, and to provide requested, relevant information. Headquarters needs to know if the consignee intends to repair or replace the goods. Such action requires the approval of the geographic desk, and funds must be made available.

4.11.3 Inspect every shipment carefully on receipt. Evidence of loss or damage should be noted on the Bill of Lading, waybill or other delivery receipt. If there is the possibility of hidden damage which can only be ascertained after detailed examination of the contents of the shipment, endorse the delivery receipt conditionally for non-apparent loss or damage.

4.11.4 If goods are missing, hold the carrier responsible to trace the missing goods and report the results of the search to the consignee. Obtain a Shortlanding Certificate.

4.11.5 To protect the insurance company's right of recourse against carriers and other incriminated parties, submit a Protest Letter holding them responsible for any irregularities or any apparent loss or damage to the shipment. See Annex XVIII for an example. The Protest Letter to a shipping company must be presented within the time stipulated on the Bill of Lading, truck or air waybill, which is normally within three days of taking delivery of the consignment.

4.11.6 For C&F shipments insured by UNHCR, arrange an official survey by an approved surveyor, of all damages and losses where the amount of the claim is estimated to exceed US $1,000. See Annex XIX for an example. The insurance company covers the cost of the survey if damage or loss is established. The surveyor should examine the damaged shipment within one week after discharge, in the presence of representatives of UNHCR, the carrier and any other concerned parties. Survey reports, submitted to SFAS at Headquarters, preferably in English, must elaborate on the apparent cause, nature and extent of the damage or loss. For damages or loss under US $1,000, a similar written report from the UNHCR field office or its designated agent will suffice, avoiding the cost of a survey.

4.11.7 Insurance claims for CIF shipments, which have been insured by the supplier or donor, are governed by the conditions of the insurance certificate. Adhere to these conditions carefully, and route all documents to SFAS for claim settlement. Use the surveyor named in the insurance certificate. Unless the certificate stipulates that no survey is required for loss or damage below a stated value, a survey is required in every case. Some insurance policies contain the condition, «No risks after discharge». For claims against these policies, the surveyor must certify that the loss or damage occurred prior to completion of the discharge of the cargo, because any loss or damage afterwards is not insured.

4.11.8 Make claims against local shipping insurance companies with the same attention and diligence, in accordance with the conditions specified in the Insurance Certificate.

Chart 4.J: Inspection of Shipments for Damage or Loss

Inspect all goods on receipt by the consignee from the carrier and report all damage, loss or missing items by telex, noting the apparent cause:

· Is the packaging damaged: opened, crushed, broken or dented?

This is normally caused during transport or by rough handling. Inspect goods at each transit point - discharge, onward dispatch, delivery at the warehouse - and note observations. This helps to identify who is responsible, when successive receiving reports or transport waybills are examined.

· Are the contents damaged or missing?

Damages result from rough handling, when packages are dropped, on rough roads or in high seas, or from exposure to adverse conditions such as rain, high humidity, extreme temperatures or infestation. Packages or their contents may also have fallen into the sea during discharge, dropped off a truck in transit or been stolen.

· Are the number of packing units in the shipment the same as those stated on the Bill of Lading or waybill?

This can be confirmed by counting the units. Missing packages must be explained by the shipping company, the vehicle driver, or any other person responsible for transporting the shipment.

· When the contents of the shipment are checked against the packing list, is part of the consignment missing?

If there is no evidence of tampering or missing packages, then it is possible that the supplier neglected to ship the complete order, or the consignment has been split somehow while in transit.

Chart 4.K: Summary of UNHCR Consignee Action in the Event of a Shipping Loss or Damages

1. Note details of loss or damage on the carrier's delivery receipt.

2. Notify SFAS immediately by telex.

3. Send a Protest Letter to the carrier.

4. For losses, obtain a Shortlanding Certificate from the carrier.

5. For loss or damage exceeding US $1,000, arrange for a survey report.

6. Obtain other documentary evidence, such as the port authority's release order or signed delivery receipts, including tally sheets.

7. Take photographs if possible.

8. Document all related action, including estimates and invoices for repair, public health orders to condemn or destroy foodstuffs, etc.

9. Forward copies of all documentation and invoiced charges resulting from the loss or damage to SFAS at Headquarters.

10. Maintain a complete file of information on the claims action.

Chart 4.L: Documentation to Support Insurance Claims

1. Copy of the Protest Letter to the carrier, holding him liable for the loss and/or damage.

2. Carrier's reply to the Protest Letter (original).

3. Shortlanding Certificate or Certificate of Definite Loss issued by the carrier (original).

4. Receipt to the carrier with endorsement on the condition of goods received (original or signed copy).

5. Delivery/consignment notes (originals or signed copies).

6. Survey Report (original) by an approved surveyor.

7. Invoice for survey fees and any other charges related to the damaged goods.

8. Details of costs for repacking/handling to minimize loss/damage.

9. Unloading records (Tally Sheets) and any other documentary evidence related to the outturn of the goods at the place of transshipment and the final destination.

10. Port authorities release order (original or signed copy).

11. Photographs of damaged goods (negatives should also be sent).

12. Condemnation Certificates for damaged goods destroyed by order of health authorities or other official bodies (original or signed copy).

13. Accounts of the sale of damaged goods.

14. Invoice or estimated costs for local repairs to damaged goods.

15. Extract from the Master's log book if the carrying vessel has sustained a casualty and/or heavy weather.

16. A copy of the Master's extended Sea Protest either at the Embassy or Consulate representing the country of the ship's flag or at a notary public.