Complete Membership Product Introduction

In international logistics, freight forwarders, acting

as agents for factories/traders, must meticulously verify cargo information and

ensure compliant and legal declarations. Today, we share a typical case of

"non-compliant declaration" and how the JCtrans platform clarified

the truth, providing fair and reasonable rights protection and penalties for

the involved freight forwarders

Case Details

In a collaboration between

a freight forwarding company from Pakistan (hereinafter referred to as

"Pakistani Party") and a freight forwarding company from Slovakia

(hereinafter referred to as "Slovakian Party"), the JCtrans risk

control team received a complaint from the Pakistani Party regarding one

particular shipment. The Pakistani Party claimed that due to an

error by the Slovakian Party, the goods were inspected by customs, resulting in

a "fine," and the goods were held by customs for nearly two months,

leading to the consignee filing a claim against them.

△Pakistani Party claimed that the inspection and costs is because

the mistakes of Slovakian Party. And it

has not been released for more than 45 days

After verification and complaints from the Slovakian Party, it was found

that they had not received the payment for their cooperation with the Pakistani

Party. Additionally, the Slovakian Party claimed that the "fine"

amount exceeded the total outstanding payment. Consequently, the platform began

a direct investigation into both parties.

Investigation revealed that the previous collaborations between the two

parties had been normal. However, in the final shipment where the dispute

arose, there was an issue regarding the "fine" as stated by the

Slovakian Party, with both sides holding different views.

The Pakistani Party insisted that the invoice accompanying the shipment had

an incorrect value, leading customs at the destination port to discover a

discrepancy in the declared value, resulting in a "fine" which they

demanded the Slovakian Party to pay.

The Slovakian Party maintained that the invoice included with the shipment

was confirmed and provided by the shipping factory, and the value involved was

agreed upon by both parties, asserting that there was no discrepancy in the declared value.

Regarding the dispute, the

platform requested both parties to provide evidence and related documents.

After review, several issues were discovered:

• Why did the same shipment have different declared values?
• Why did the consignee, knowing the original value, opt for under-reporting?
• Why did the destination port agent proceed with the shipment despite knowing the under-reporting and the risk of fines?

After nearly a month of review and

verification, the platform ultimately determined that the Pakistani Party was

fully responsible. The reason for this conclusion was that the Pakistani Party

proceeded with the non-compliant operation despite knowing that the consignee

intentionally concealed the value of the goods and conducted an under-priced

declaration.

△Show Cause Notice - Proof of Discrepancy

in Declared Value by the Pakistani Party

△The Pakistani Party Received Instructions from the Consignee to Conceal the

Actual Value

Risk Control Team's Handling Plan

and Results

1. The platform does not support the Pakistani Party's claim that the Slovakian Party should bear the fine and the refusal to pay the outstanding amount based on this reason.
2. The platform determined that the Pakistani Party must pay the confirmed outstanding amount in full. If the Pakistani Party fails to comply within the stipulated period, the platform will hold them accountable and publicly list them on the blacklist.
3. If the Pakistani Party does not pay the confirmed outstanding amount within the specified period, JCtrans will fulfill its "advance compensation" responsibility to the Slovakian Party in accordance with the platform's "Cooperation Risk Guarantee Service" terms.

△Platform Compensation

Receipt

Platform

Recommendations

1. Under any circumstances, freight forwarding companies must conduct their agency business and cooperation within the legal framework.
2. It is not advisable to carry out instructions from clients that clearly violate national laws, and reasons for non-compliance should be explained to them.
3. Prevent illegal and high-risk business operations during the course of business activities.