EAST AFRICAN CUSTOMS AND FREIGHT

FORWARDING PRACTICING CERTIFICATE

COURSE (EACFFPC) EXAMINATIONS

FREIGHT FORWARDING OPERATIONS

DATE: 2ND OCTOBER, 2013

TIME ALLOWED: 3 HOURS

INSTRUCTIONS:
1) Please use the answer sheet provided
2) Section A is compulsory.
3) Answer any other (3) questions in Section B
4) Each Question carries 25 marks

PLEASE DO NOT OPEN UNTIL YOU ARE TOLD TO DO SO

Section A- Compulsory:
Question 1:

A Case Study: The Environment of the Freight Forwarder.

Ashok Computers (U) Ltd., imported a 20ft container of computers and

accessories from Dubai from his long time supplier, Emirates Computers Ltd.

He contracted Maersk to ship the container from Jebel Ali (Dubai) to Mombasa
on Cost and Freight (C&F) terms. The importer chose and handed over
documents to Haraka Freighters to handle the port clearance and transport to
Kampala. On arrival at the ICD in Kampala, Haraka Freighters performed the
local clearance. All the shipping and customs seals on the container were
intact.

On preparation of the entry, the importer paid all the self-assessed taxes then
proceeded for verification. The Proper Officer verifying, having had an
exhausting day, signed the verification account without physical counting. The
Customs agent also signed the verification account. The ICD operator provided
manual labor and the container was opened for the importer to sight the goods
before they proceeded to his store for offloading.

On arrival at the consignee’s store, 5 cartons containing 10 computers were

found missing on opening of the container.

Required:

i. In the above case study, identify the possible areas where negligence
could have occurred. (10 Marks)

ii. In your assessment, who should be held liable for the loss of goods?
(5 Marks)

iii. As an experienced freight forwarder, how would a repeat of this be

avoided in the future? (10 Marks)
Section B:
Question 1:

You are a professional freight forwarder after attaining the EACFFPCC from the
training school. You have been appointed by a consignee to handle a shipment
of machinery and spares. Upon arrival of the cargo at ICD and after customs
verification, it was confirmed that an integral part of the machine was left
behind at origin port. The taxes and duties for the whole consignment had
already been paid by consignee to customs covering the whole consignment as
declared. The consignee would require the short shipped part of the machinery
urgently shipped.

You have been entrusted to liaise with the shipper to ensure the shipment and
clearance of the missing piece is delivered without additional taxes and freight
being paid by the consignee as it was shipper’s oversight.

Required

As an experienced freight forwarder explain the following:

a. The type of bill of lading you require to have the cargo moved from origin
port to destination(5 Marks)
b. The action you would take to effectively handle the above situation(10
Marks)
c. What you would advise your client to ensure there is no repeat of a
similar situation on future shipment(10 Marks)

Question 2:

A survey carried out worldwide indicated that 80% of the practicing freight
forwarders handle dangerous goods but less than 30% feel competent in
understanding the regulations related to the carriage and transportation of
these goods.
(a) Define dangerous goods listing two (2) examples of such goods. (5 marks)

(b) Using relevant examples in the Ugandan freight forwarding industry,

describe the challenges faced by local Freight forwarders during handling
of dangerous goods. (10 marks)

(c) What solutions would you put forward to solve the challenges laid out in
(b) above? (10 marks)
Question 3:

With examples, describe the roles, duties and responsibilities of seller and the
buyer in any four (4) terms of trade commonly used for international contracts
(INCOTERMS 2010).Your description should reveal the stage at which risk is
transferred, the division of costs and obligations of both parties.(25 Marks)

Question 4:

You are a multimodal freight forwarder.Your client has phoned you and is
asking you for all-inclusive freight rate for his cargo. It is a consignment of
3,000 kgs to be collected from Mbarara in western Uganda via an ICD in for
consolidation and transportation to final destination Central London in the
United Kingdom. From Kampala the consignment will be transported by rail to
Mombasa to catch a scheduled vessel/ship up to Dubai. From Dubai the
shipment will be airlifted on Emirates Airlines to London Heathrow Airport
(LHR).It is also your responsibility to ensure customs clearance and delivery to
central London where the consignee’s warehouse is located.

Required

With examples, explain the following:

a) The constituents of your all-in selling freight rate for the combined
freight operation(10 Marks)

b) Information you will require or need to know from your client/the

shipper before you make your freight rate quotation(15 Marks)

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