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LITHUANIAN NATIONAL ASSOCIATION

OF FORWARDERS AND LOGISTICS

Fiata

1.GENERAL

1.1. Lithuanian General Freight Forwarding provisions regulate relations between the Freight Forwarder and the Customer in freight forwarding.

1.2. Definitions:

- "Freight Forwarder" - a company that has concluded a contract with freight dispatcher or recipient (seller or buyer) and has undertaken at the Customer's expense, in the Customer's or his own name to dispatch or accept the Customer's freight and perform all other related to freight actions (e.i to escort freights, execute shipping documents, acceptance-transfer of goods, payment for shipping, etc.);

- "Freight forwarding" - execution of freight shipping documents, explanation of shipment rules, calculation of shipment taxes, conclusion of shipment contracts with authorities of different types of transport companies, dispatch of freights, control of freight shipment, settlement of accounts with freight dispatchers, recipients, owners, authorities of transport companies for rendered services, representation of other countries' freight companies;

- "Carrier" - a company that is allowed to carry freights according to the order established by the laws and other legal acts of the Republic of Lithuania and other states;

"Customer" - a person that has concluded a freight forwarding contract with the Freight Forwarder and has instructed in his or Freight Forwarder's name to dispatch or accept the freight, perform other to it related actions (e.i. to escort freights, execute shipping documents, acceptance-transfer of goods, payment for shipment, etc.).

1.3. It is recommended to follow the present provisions upon concluding contracts with Lithuanian and foreign states' customers.

1.4. By a freight forwarding contract the Freight Forwarder undertakes for payment perform or organize freight shipment or forwarding in the Customer's name and at the Customer's expense.

1.5. A contract is the principal legal document regulating interrelations between the Customer and the Freight Forwarder, procedure and types of payment, establishing property responsibility for failure to perform contractual obligations or improper performance of contractual obligations in accordance with laws, other legal acts, and the present provisions.

2. ORDERS, NOTICES AND INSTRUCTIONS

2.1. Freight forwarding contract is considered to be concluded since the moment of receiving the order by the Freight Forwarder, except the cases when the Freight Forwarder immediately refuses to perform the order.

2.2. The orders transmitted by facsimile, telex, telephone or orally shall be immediately confirmed in written.

2.3. The order made to Freight Forwarder shall contain the following data:

- names of freight dispatcher and recipient; addresses of freight dispatch and destination points; freight name; weight or amount; time of presenting the means of transport; terms of loading or unloading and shipping; special conditions of freight shipment and other data and documents necessary for fulfillment of order. The Customer shall be responsible for consequences that might appear due to incorrectly or incompletely submitted data.

'The Freight Forwarder shall have a right to check the aforementioned data.

2.4. lnstruction received by the Freight Forwarder reganding the freight shall be valid until the Customer revokes it.

2.5. The order to transfer the freight to the recipient may be revoked afterwards the freight is submitted to the Freight Forwarder but the Customer must compensate the expenditures held by the Freight Forwarder for the fulfillment of order.

2.6. The Custormer's notice that the services will be paid by a third party shall not affect the Customer's obligations to the Freight Forwarder.

2.7. In the event of lack of exhaustive instructions the Freight Forwarder taking into account the Customer's interests can use his own discretion, especially upon selecting the type of freight forwarding, the raute, and means.

3. MAIN OBLIGATIONS OF THE FREIGHT FORWARDER

3.1. According to the order to organize freight shipment and forwarding.

3.2. To inform the Customer about the received and dispatched freights.

3.3. To consult the Customer in respect to the issues of increasing the eff'ectiveness of shipment by all means of transport, selecting rational routes and forms of shipping, reducing expenditures on packing, loading-unloading and other freight forwarding services.

3.4. To help for payment to fill in freight shipping documents.

3.5. According to the Customer's order and at the Customer's expense to organize in ports and stations freight packing, marking, repair of packing, freight weighting, inspect the quality of goods, organize sample taking, submitting freight to shipment, and other services.

3.6. To advise the Customer the international shipment rates, duties collected in ports and border stations, as well as prices of reloading, packing, quantity and quality control, sample taking, marking and other services.

3.7. To conclude freight shipment contracts with transport companies in the name and at the expense of the Customer.

3.8. Perform acceptance, consolidation, warehousing, reloading, further dispatch and freight forwarding of freights received by the Customer.

3.9. Upon agreement of the parties for the agreed payment perform other orders of the Customer.

4. OBLIGATIONS OF THE CUSTOMER

4.1. To submit to the Freight Forwarder all information necessary for freight forwarding and all documents necessary for fulfillment of order.

4.2. To inform the Freight Forwarder of special freight shipmen: conditions if the forwarded freight due its properties can bring carriage to other freights, people or environment.

4.3. To compensate to the Freight Forwarder expenditures that were necessary to fulfill the order, and to make the agreed payment to the Freight Forwarder.

4.4. If in the event of unforeseen circumstances the Freight Forwarder makes all what is possible to satisfy the Customer's needs, the latter shall compensate additional expenditures.

5.INSURANCE

5.1. The Freight Forwarder must insure the freight only if required by the Customer in his order. lf the instruction to insure the goods is inaccurate or unrealizable, it shall be deemed that the type and volume of insurance is left to the discretion of the Freight Forwarder.

5.2. The Freight Forwarder shall have no right to consider the indication of value of goods in documents as the instruction to insure the goods.

5.3. In the event of insurance event the Customer shall have a right only to such compensation that was provided by insurance provisions agreed by the Freight Forwarder and the insurer.

5.4. In the event of insurance event the Freight Forwarder shall pass to the Customer the right to submit claims to the insurer in written.

5.5. The Freight Forwarder shall be separately compensated for execution of insurance and other actions related to insurance events.

5.6. The Freight Forwarder must at the Customer's expense insure against the losses that might be held by the Customer in respect to fulfillment of freight forwarding contract. The Freight Forwarder shalI notify the Customer about the insurer with who, the freight forwarding insurance agreement is made.

5.7. The Freight Forwarder shall select the carriers that have the civil responsibility insurance against losses that can be made to the freight during shipment.

6. SERVICE

6.1. The Freight Forwarder upon transfening the entrusted to him freights to be stored in his or third parties' warehouses shall advise to the Customer the address of the warehouse and conditions of storing.

7. SETTLEMENT OF PAYMENTS FOR FREIGHT FORWARDING SERVICES

7.1. The Customer shall compensate to the Freight Forwarder the expenditures of fulfillment of the order and the agreed payment within 5 days after receipt of invoices if otherwise not foreseen in the contract.

7.2. If a freight forwarding contract terminates before complete fulfillment of the order, the Customer must compensate the expenditures held by the Freight Forwarder for fulfillment of instruction (order), as well as make the payment proportional to the fulfilled part of order.

8. LlABILITIES OF THE PARTIES

8.1 The Freight Forwarder shall compensate the losses held by the Customer due to failure to fulfill or improper fulfillment of freight forwarding contract because of the Freight Forwarder's fault.

8.2. Upon performance of international freight forwarding, the liability of the Freight Forwarder is restricted by international conventions and agreements. Upon perfomance of freight forwarding in Lithuania the Iiability of the Freight Forwarder is restricted by the Transport Code, other codes, and legal acts of the Republic of Lithuania,

8.3. The Customer shall compensate to the Freight Forwarder the losses incurred due to inaccuracy or incompleteness of indicated in orders data.

8.4. In the case of delayed payment against the invoice submitted by the Freight Forwarder, the customer shall pay a fine of 0.2 percent for every delayed day of the due amount.

8.5. The Freight Forwarder shall not be considered liable as the carrier if the issued shipping documents are not marked by the Freight Forwarder.

9. PLACE OF FULFILLMENT AND ARBITRATION

9.l. The place of fulfillment of contract shall be considered the location in which the Freight Forwarder's office is established.

9.2. If not otherwise foreseen, all disputes arising from the fulfillment of freight forwarding contracts or orders shall be settled by the Economic Court of Law of the Republic of Lithuania or by the Arbitration of the Lithuanian Chamber of Commerce.

9.3. Legal relations between the Freight Forwarder and the Customer shall be based on the Lithuanian law.