Rules governing the Freight Payment Protection (FPP program) among participating Members.
1. Payment Protection has become an industry standard and a network not offering financial protection is not a serious network. We are confident in our members and their financial stability and good character.
2. The CFN Freight Payment Protection (Hereinafter referred to as “FPP”) program is self-funded by CFN Networks Members. The money held under FPP programs are limited to what is available for members to use in case of insolvency/bankruptcy.
3. The Freight Payment Protection Program works only for credits claimed with other CFN Members.
4. CFN standard credit policy is to offer 30 days settlement from the date of bill.
5. The adhesion to the Payment Protection program will become effective with payment of the Membership Fees and with FPP program Fees invoice and the acceptance of the rules and ethical code.
6. The CFN FPP program contribution is non-refundable.
7. The CFN FPP program is governed, managed and supervised by the CFN HQ’s Management Head.
8. The CFN FPP program covers only invoices within a maximum of 60 days before the claim date.
9. The CFN FPP program only covers claims against non-payment of freight invoice by CFN members in the event of when debtor Member Company declares that, bankruptcy or insolvency during the year provided both parties in the transaction have contributed to the FPP program.
10. The Freight Payment Protection program shall only be appealed in case of unpaid invoices related to Freight forwarding or transportation cost and bad debts as a result of insolvency and/or bankruptcy.
11. The CFN FPP program is designated to allow financial support toward loss of freight payments incurred due to an insolvent or bankrupt member. Member companies who have changed ownership thru merger or acquisition remain responsible for its debt and are not covered by this plan.
12. CARGO CLAIM is NOT APPLICABLE under this program.
13. The CFN FPP program will NOT COVER CARGO CLAIMS, as a result of force majeure, vessel or carrier fault, cargo abandonment, misroute shipments, and/or misrepresented shipments due to government and location restrictions.
14. The CFN FPP program will NOT COVER any claims caused by computer fraud, computer hackings, scams or other fraudulent acts.
15. For any other debts resulted from different situations CFN Management will revise and decide accordingly. Anyhow, for such events, members must have their own forwarders liability Insurance;
16. CFN FPP program does not provide coverage for misroute shipments i,e shipment route from/to other than registered office address and/or country.
17. The CFN FPP program does not provide coverage for shipments with payment terms of more than 30 days.
18. The CFN FPP program does not provide coverage for shipments if bill of lading address is different from CFN website member registered address.
19. The CFN FPP program will cover only when invoice have been updated@ CFN website within 2 days of invoice rose date.
20. The CFN FPP program is limited to general cargo shipments only. Any other type of cargo is not covered.
21. Any single transaction with an invoiced amount over USD 4000 is not covered under this plan/program.
22. A simple payment dispute claim is here not covered, but CFN team will assist all its members during any payment pending case. However the compensation is allowed only for companies participating in the Payment Protection FPP program.
23. As per the CFN Freight Payment Protection program, the recommend credit limit is USD 4,000. Anything beyond that should be part of your credit/payment history with a particular agent/member.
24. The amount of compensation would be limited to USD 4000 per participating company per year up to maximum aggregate claim of 80% fund balance be divided proportionately among the claimants.
25. The CFN FPP program first year contribution of 350.00 USD per Member Company, per participating office must be paid within 15 days of invoice date.
26. Members cannot hold the payment during the damage or delay of a shipment. This can be handled by your third party insurance company.
27. The confirmation of the Freight Payment Protection program affiliation is understood once the Acceptance Form is signed and returned.
28. The Freight Payment Protection Program is applicable for one year.
29. The Freight Payment protection program has to be renewed every year.
30. There will be no refund in the case of a member company departing the combined freight networks for any reason, nor does any departing member have any claim to any funds they may have contributed to the fund.
31. CFN team will circulate an ALERT message to the group – if any particular company member has violated the payment procedures or received multiple & frequent complaint by fellow members against a company.
32. In the event of non-payment, CFN will proceed to inform all members, while suspending the member involved, maintaining opened the possibility of a cancellation membership.
33. Members will not be entertained to do business or claim for the protection program even after the notification of any suspended and/or terminated member of the network admin is announced. We request the member to carefully read each announcement, alert email and circulation message from CFN network admin and forward the same to your respective department in your office.
34. CFN Management reserves the right to update the above terms at its discretion and at any time.
35. CFN FPP program is managed by the company Combined Freight Networks OPC PVT LTD and is registered in the Government of India. Any dispute arising against the company will be under the Chennai jurisdiction therein.