AFN Protection System Procedures

AFN Protection System Procedures

1. This program is to protect our member for unpaid funds/invoices arising from commercial shipments that are owed by another AFN member (debtor) which has declared bankruptcy/Insolvency or gone out of business BUT not as a result of a merger and/or acquisition is considered to remain liable for its debt that NOT covered by the AFN Protection System.

1 - AFN Protection System is excluding interest, profit, penalties, VAT and/or other taxes.2 - AFN Protection System is not a cargo or freight liability insurance. Customs penalties, warehouse charges, storage charges, demurrage charges, value of goods, duties/taxes, errors, omissions and bankruptcy of a member are not covered by AFN Protection.

3- AFN Management can’t be held responsible and does not accept any financial liability for commercial or financial obligations that are not met by Member.

4- AFN members will settle all debts within 30 (thirty) days of invoicing one another unless otherwise agreed at time of quoting the rates.- For Africa regions debts shouldn’t exceed USD3000. 5- After 30 Days, AFN Members must immediately notify the AFN Management when a member is late with a payment and a warning light will be shown next to the offending member's agent profile.

6- Any amounts that pass the 60 days overdue mark should be reported to the AFN Coordinator so that AFN can be informed of any members who are having financial difficulty. Otherwise, this report won’t be accepted.

7- For business between members, monthly statements should be provided by the creditor to AFN Management.

8- Quotations from AFN members to AFN members must specifically state exactly which currency invoices will be made in and payments should be received in and whether such quotes are subject to any changes or surcharges.

9- For all ongoing AFN business requiring offsets, unless otherwise agreed, both parties should provide statements for settlement by the first 10 days of each month.

10- In case that AFN member has a Company Policy to not accept a credit application, this must be clearly stated in quotations to all other AFN members. Otherwise this will not be assumed to be a requirement.

11- Awaiting payment from a client, agent, or any other party, is not an excuse for non-payment to another member unless these were the terms prior to the trade.

12-AFN Members eligible will be those whose annual and Protection fees have been paid, and are with a good reputation with AFN and its members.

13- AFN Members will be covered until the last day of their membership

14- AFN Members who are under suspension or are expelled from AFN will lose protection immediately.

15- The Protection System is limited to logistics transactions between AFN members only if they are fully registered protected members.

16- The minimum claim covered is Usd. 500 and the maximum is Usd. 5,000 per claim, subject to availability funds. In case of multiple debts from the debtor, this will be handled on a prorata basis.

17-Cargo Claim is not applicable in this system. Each member can obtain the cargo insurance and third party liability insurance separately

18-AFN Members must follow the stated clauses in here to get benefit from AFN Payment Protection.

19-In order to receive payment from Payment Protection Program, the recipient must agree to sign any future recoveries of the debt over to the Management and to fully cooperate with AFN in instituting collection and/or legal recovery of such debt.

20- AFN Protection System covers only the invoices submitted in Activity Report to AFN Management on time.

21- Both origin and destination agent must be AFN protected member.

22- AFN Members should ensure that they are dealing with an office that is enrolled to AFN and AFN Protection System; Offices that are NOT enrolled are NOT protected under AFN Protection System.

23- Protection Fees are non-refundable and non-transferable.

24- HBL / HAWB must show AFN Logo & also the statement should be shown that both parties are AFN Protected Members.

Other Way: Debt Recovery Services through FDRS

• FDRS will only accept for collection amounts over USD 1000.00

• FDRS only accepts freight industry related accounts for collection. The client must guarantee that any claim against an assigned party is accurate and lawful in all respects and that all supporting documents forward-ed to FDRS are true and accurate and duly authorise FDRS to use those documents in the pursuit of collecting the claims from the debtor.

• FDRS will pursue recourse pursuant to the documents as supplied by the client. Please note - FDRS assumes that your express permission is given for any supporting documentation so supplied to be on-forwarded to the debtor in support of the claim•In the event that legal action is necessary, and upon the express written authority of the client, an attorney versed in transportation law will be selected by FDRS and will be deemed an employee or an agent of FDRS. Please note - FDRS and/or their attorney are not empowered to file a suit or any legal action without the express written authority of the client.

The client expressly authorises FDRS and/or their attorney to appropriately endorse, for deposit and collection, any remittances received from debtor, and to deduct therefrom its lawful fee(s).• If the claim against the debtor shall be settled in a form that is different from a standard financial settlement (e.g. balancing of accounts, offset payment against other work(s) performed by the debtor, etc.) then the Client shall pay the collection service fee to FDRS in money.• Should a client have any special requests, the client must advise FDRS in writing at the time of account assignment

1 - AFN Protection System is excluding interest, profit, penalties, VAT and/or other taxes.2 - AFN Protection System is not a cargo or freight liability insurance. Customs penalties, warehouse charges, storage charges, demurrage charges, value of goods, duties/taxes, errors, omissions and bankruptcy of a member are not covered by AFN Protection.

3- AFN Management can’t be held responsible and does not accept any financial liability for commercial or financial obligations that are not met by Member.

4- AFN members will settle all debts within 30 (thirty) days of invoicing one another unless otherwise agreed at time of quoting the rates.- For Africa regions debts shouldn’t exceed USD3000. 5- After 30 Days, AFN Members must immediately notify the AFN Management when a member is late with a payment and a warning light will be shown next to the offending member's agent profile.

6- Any amounts that pass the 60 days overdue mark should be reported to the AFN Coordinator so that AFN can be informed of any members who are having financial difficulty. Otherwise, this report won’t be accepted.

7- For business between members, monthly statements should be provided by the creditor to AFN Management.

8- Quotations from AFN members to AFN members must specifically state exactly which currency invoices will be made in and payments should be received in and whether such quotes are subject to any changes or surcharges.

9- For all ongoing AFN business requiring offsets, unless otherwise agreed, both parties should provide statements for settlement by the first 10 days of each month.

10- In case that AFN member has a Company Policy to not accept a credit application, this must be clearly stated in quotations to all other AFN members. Otherwise this will not be assumed to be a requirement.

11- Awaiting payment from a client, agent, or any other party, is not an excuse for non-payment to another member unless these were the terms prior to the trade.

12-AFN Members eligible will be those whose annual and Protection fees have been paid, and are with a good reputation with AFN and its members.

13- AFN Members will be covered until the last day of their membership

14- AFN Members who are under suspension or are expelled from AFN will lose protection immediately.

15- The Protection System is limited to logistics transactions between AFN members only if they are fully registered protected members.

16- The minimum claim covered is Usd. 500 and the maximum is Usd. 5,000 per claim, subject to availability funds. In case of multiple debts from the debtor, this will be handled on a prorata basis.

17-Cargo Claim is not applicable in this system. Each member can obtain the cargo insurance and third party liability insurance separately

18-AFN Members must follow the stated clauses in here to get benefit from AFN Payment Protection.

19-In order to receive payment from Payment Protection Program, the recipient must agree to sign any future recoveries of the debt over to the Management and to fully cooperate with AFN in instituting collection and/or legal recovery of such debt.

20- AFN Protection System covers only the invoices submitted in Activity Report to AFN Management on time.

21- Both origin and destination agent must be AFN protected member.

22- AFN Members should ensure that they are dealing with an office that is enrolled to AFN and AFN Protection System; Offices that are NOT enrolled are NOT protected under AFN Protection System.

23- Protection Fees are non-refundable and non-transferable.

24- HBL / HAWB must show AFN Logo & also the statement should be shown that both parties are AFN Protected Members.

Other Way: Debt Recovery Services through FDRS

• FDRS will only accept for collection amounts over USD 1000.00

• FDRS only accepts freight industry related accounts for collection. The client must guarantee that any claim against an assigned party is accurate and lawful in all respects and that all supporting documents forward-ed to FDRS are true and accurate and duly authorise FDRS to use those documents in the pursuit of collecting the claims from the debtor.

• FDRS will pursue recourse pursuant to the documents as supplied by the client. Please note - FDRS assumes that your express permission is given for any supporting documentation so supplied to be on-forwarded to the debtor in support of the claim•In the event that legal action is necessary, and upon the express written authority of the client, an attorney versed in transportation law will be selected by FDRS and will be deemed an employee or an agent of FDRS. Please note - FDRS and/or their attorney are not empowered to file a suit or any legal action without the express written authority of the client.

The client expressly authorises FDRS and/or their attorney to appropriately endorse, for deposit and collection, any remittances received from debtor, and to deduct therefrom its lawful fee(s).• If the claim against the debtor shall be settled in a form that is different from a standard financial settlement (e.g. balancing of accounts, offset payment against other work(s) performed by the debtor, etc.) then the Client shall pay the collection service fee to FDRS in money.• Should a client have any special requests, the client must advise FDRS in writing at the time of account assignment

1 - AFN Protection System is excluding interest, profit, penalties, VAT and/or other taxes.2 - AFN Protection System is not a cargo or freight liability insurance. Customs penalties, warehouse charges, storage charges, demurrage charges, value of goods, duties/taxes, errors, omissions and bankruptcy of a member are not covered by AFN Protection.

3- AFN Management can’t be held responsible and does not accept any financial liability for commercial or financial obligations that are not met by Member.

4- AFN members will settle all debts within 30 (thirty) days of invoicing one another unless otherwise agreed at time of quoting the rates.- For Africa regions debts shouldn’t exceed USD3000. 5- After 30 Days, AFN Members must immediately notify the AFN Management when a member is late with a payment and a warning light will be shown next to the offending member's agent profile.

6- Any amounts that pass the 60 days overdue mark should be reported to the AFN Coordinator so that AFN can be informed of any members who are having financial difficulty. Otherwise, this report won’t be accepted.

7- For business between members, monthly statements should be provided by the creditor to AFN Management.

8- Quotations from AFN members to AFN members must specifically state exactly which currency invoices will be made in and payments should be received in and whether such quotes are subject to any changes or surcharges.

9- For all ongoing AFN business requiring offsets, unless otherwise agreed, both parties should provide statements for settlement by the first 10 days of each month.

10- In case that AFN member has a Company Policy to not accept a credit application, this must be clearly stated in quotations to all other AFN members. Otherwise this will not be assumed to be a requirement.

11- Awaiting payment from a client, agent, or any other party, is not an excuse for non-payment to another member unless these were the terms prior to the trade.

12-AFN Members eligible will be those whose annual and Protection fees have been paid, and are with a good reputation with AFN and its members.

13- AFN Members will be covered until the last day of their membership

14- AFN Members who are under suspension or are expelled from AFN will lose protection immediately.

15- The Protection System is limited to logistics transactions between AFN members only if they are fully registered protected members.

16- The minimum claim covered is Usd. 500 and the maximum is Usd. 5,000 per claim, subject to availability funds. In case of multiple debts from the debtor, this will be handled on a prorata basis.

17-Cargo Claim is not applicable in this system. Each member can obtain the cargo insurance and third party liability insurance separately

18-AFN Members must follow the stated clauses in here to get benefit from AFN Payment Protection.

19-In order to receive payment from Payment Protection Program, the recipient must agree to sign any future recoveries of the debt over to the Management and to fully cooperate with AFN in instituting collection and/or legal recovery of such debt.

20- AFN Protection System covers only the invoices submitted in Activity Report to AFN Management on time.

21- Both origin and destination agent must be AFN protected member.

22- AFN Members should ensure that they are dealing with an office that is enrolled to AFN and AFN Protection System; Offices that are NOT enrolled are NOT protected under AFN Protection System.

23- Protection Fees are non-refundable and non-transferable.

24- HBL / HAWB must show AFN Logo & also the statement should be shown that both parties are AFN Protected Members.

Other Way: Debt Recovery Services through FDRS

• FDRS will only accept for collection amounts over USD 1000.00

• FDRS only accepts freight industry related accounts for collection. The client must guarantee that any claim against an assigned party is accurate and lawful in all respects and that all supporting documents forward-ed to FDRS are true and accurate and duly authorise FDRS to use those documents in the pursuit of collecting the claims from the debtor.

• FDRS will pursue recourse pursuant to the documents as supplied by the client. Please note - FDRS assumes that your express permission is given for any supporting documentation so supplied to be on-forwarded to the debtor in support of the claim•In the event that legal action is necessary, and upon the express written authority of the client, an attorney versed in transportation law will be selected by FDRS and will be deemed an employee or an agent of FDRS. Please note - FDRS and/or their attorney are not empowered to file a suit or any legal action without the express written authority of the client.

The client expressly authorises FDRS and/or their attorney to appropriately endorse, for deposit and collection, any remittances received from debtor, and to deduct therefrom its lawful fee(s).• If the claim against the debtor shall be settled in a form that is different from a standard financial settlement (e.g. balancing of accounts, offset payment against other work(s) performed by the debtor, etc.) then the Client shall pay the collection service fee to FDRS in money.• Should a client have any special requests, the client must advise FDRS in writing at the time of account assignment