Dear Friends,

REMINDER: PROHIBITION OF THE ISSUANCE OF THE FIATA FORWARDERS CERTIFICATE OF RECEIPT (FCR) FOR STEEL SHIPMENTS

In 2001, FIATA issued a prohibition on the issuance of the FIATA Forwarders Certificate of Receipt (FCR) for steel shipments. This took place in the context of numerous incidents in relation to steel shipments whereby a freight forwarder had issued the FIATA FCR without actually disposing of the goods. A considerable percentage of these occurrences were found to be based on fraudulent activities, mainly by the seller of the goods, or on forgery of the FIATA FCR. In all cases, the buyers of the goods had relied on the FIATA FCR that was also partly stipulated in a letter of credit, and were not able to obtain the goods despite having paid the purchase price in most instances.  

FIATA reminds its members that this prohibition of the FIATA FCR for steel shipments continues to be effective, to uphold the reputation and integrity of FIATA documents. FIATA Association Members are requested to ensure their members, together with the banking community in their national contexts, are made aware of this restriction. 

FIATA also welcomes the decision of the CASS Consultative Council (CCC) Netherlands at its special meeting to withdraw the discussion point regarding the proposal to change the remittance frequency to fortnightly payments, following reference to FIATA’s statement of objection which raised substantial competition law issues.

Best regards

Fracht Ltd. Basle

R. Reisdorf