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Code of Federal Regulations Title 46. Shipping § 46.515.41 Forwarder and principal;  fees

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) Compensation or fee sharing. No licensed freight forwarder shall share, directly or indirectly, any compensation or freight forwarding fee with a shipper, consignee, seller, or purchaser, or an agent, affiliate, or employee thereof;  nor with any person advancing the purchase price of the property or guaranteeing payment therefor;  nor with any person having a beneficial interest in the shipment.

(b) Receipt for cargo. Each receipt for cargo issued by a licensed freight forwarder shall be clearly identified as “Receipt for Cargo” and be readily distinguishable from a bill of lading.

(c) Reduced forwarding fees. No licensed freight forwarder shall render, or offer to render, any freight forwarding service free of charge or at a reduced fee in consideration of receiving compensation from a common carrier or for any other reason. Exception:  A licensed freight forwarder may perform freight forwarding services for recognized relief agencies or charitable organizations, which are designated as such in the tariff of the common carrier, free of charge or at reduced fees.

(d) In-plant arrangements. A licensed freight forwarder may place an employee or employees on the premises of its principal as part of the services rendered to such principal, provided:

(1) The in-plant forwarder arrangement is reduced to writing and identifies all services provided by either party (whether or not constituting a freight forwarding service);  states the amount of compensation to be received by either party for such services;  sets forth all details concerning the procurement, maintenance or sharing of office facilities, personnel, furnishings, equipment and supplies;  describes all powers of supervision or oversight of the licensee's employee(s) to be exercised by the principal;  and details all procedures for the administration or management of in-plant arrangements between the parties;  and

(2) The arrangement is not an artifice for a payment or other unlawful benefit to the principal.

(e) [Redesignated as subsection (d) by 80 FR 68737]

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Cite this article: FindLaw.com - Code of Federal Regulations Title 46. Shipping § 46.515.41 Forwarder and principal;  fees - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-46-shipping/cfr-sect-46-515-41/

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