1. MOL Consolidation Service
Operations Training
- by HQ Operations
2013

2. Agenda Objectives of Training Expectations Standard Shipping Cycle
Vendor Education/Management
Vendor Pre-booking Compliance
Vendor Booking
PO Management
Shipping Approval
Cargo Receiving
Late Come Delivery
Overtime Delivery
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3. Agenda FCR and HBL Basic Knowledge Container Load Planning
Factory Load
Container Drayage
Vessel Schedule and Carrier Allocation
Book with Carrier
Export License/Export Clearance
Carrier B/L
Difference between B/L and SWB
Definition of “Job”
Documentation
FCR & Local Charges
FCR and HBL Basic Knowledge
2/24/ Business Confidential

4. Objectives of Training
Support commitment from MOL Managements to promote MCS business
Support new origins for services expansion
Develop highly capable and professional team
Provide effective training so as to minimize impacts by inexperienced or new employees
Less depends ‘on-the-job’ training especially during peak season
Broaden employees’ understanding
Enhance data integrity
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5. Expectations Understand MCS business
Understand standard services and value-added services required
Understand the standard shipping cycle
Understand basic day-to-day operations work
Understand Starlink function
Understand the reason behind of our daily operations work
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6. Standard Operations Procedure
SOP is one of most important documents in daily operations.
Please ensure SOP compliance to avoid any complaints and
potential claims from customers.
2/24/ Business Confidential

7. MCS Consolidation Operation Flow – CFS/CY7

8. MCS Consolidation Operation Flow – CY/CY8

9. MCS Consolidation Operation Flow – AIR9

10. MCS NOVCC Flow – AIR 10

11. Vendor Education Program
Vendor Invitation
Vendor Workshop
Vendor Manual
Factory Visit
SOP communication
2/24/ Business Confidential

12. Vendor Pre-booking Compliance
Contact vendor (not the factory for triangular trade) at customer specified timeline (e.g. 2 weeks before ship window) of delivery status for ‘no activity’ PO’s)
Communicate with vendor (not the factory if it is a triangular trade orders) by /fax but not ONLY phone call
Michael Stores vendor will get Starlink generated Open PO Report – 21 days prior to PO cancel date and 14 days prior to PO cancel date
Update event into Starlink web for early/late delivery against PO’s ship window System to generate ‘inactivity’ PO report or to customers – Depends on customer’s requirements
2/24/ Business Confidential

13. Vendors Booking
Establish booking closing standard to avoid too many late bookings. Normally it should be 7-10 days prior CFS closing.
Use standard booking form with customers specific requirements if necessary to minimize missing or incorrect data
Well communicate with vendor of mandatory data to avoid delay or miss the vessel for last minute booking
Accept booking from vendors via internet, or fax
Reconcile PO/Item details against PO information as per SOP
Pay attention if ‘No Doc No Ship’ and/or any special license required prior to shipment
2/24/ Business Confidential

14. PO Management
If PO monitoring is required but PO not found for booked PO/Item, follow SOP to handle missing PO
Verify with vendor if missing PO due to typo in booking
Measure frequency of missing PO if necessary
Send missing PO notice (if needed) upon receipt of booking – don’t wait
System team may need to be informed to contact counter part in customer’s office or send ‘PO request’ – follow SOP.
If necessary, manual input PO (if it’s not prohibited) to avoid long delay of EDI transmission according to customer’s approval.
2/24/ Business Confidential

15. Shipping Approval Possible shipment approval on exception: Cost
early/late shipment (with or without grace period)
Over/short ship against ordered quantity with or without allowance %
Partial shipment
CY booking
LCL or 20’ shipment
Light Load
Non-standard consignment as per SOP (e.g. ‘To order..’ etc.)
Different FOB point
Missing PO/Item
Missing specific document (e.g. inspection certificate)
Mix Load
Some customers may want to approve all shipments
Shipment approval may be handled by local or regional office
Cost
2/24/ Business Confidential

16. Vessel Schedule and Carrier Allocation
As per local published schedule
With SI, consolidator’s CFS and carrier’s CY closing
Restricted for nominated carriers/services
Regional or local buying office may ask monthly vessel schedule
Carrier allocation
Nominated by consignee
with specific allocation percentage
2/24/ Business Confidential

17. Book with Carrier
Select booking carrier as per carrier allocation, plus
spaces/equipment availability
YTD allocation and seasonal cargo volume
If necessary, pre-book spaces/equipment base on volume projection and/or last week shipment to protect spaces/equipment during peak season
Regular meeting or phone call with carriers to collect market or carrier specific update to relay to customer if necessary for anticipated space/equipment disruption
Co-ordinate with shipper/warehouse/carrier for ‘late gate’ request
Pay attention of earlier ETA but later ETD for urgent shipment
2/24/ Business Confidential

18. Cargo Receiving at CFS Warehouse
CFS Warehouse shall only receives cargo with valid MCS booking confirmation(S/O)
Request Packing List attach with S/O if more details on packing list
Tallyman to check:
All carton in good condition (no wet, crushed/torn cartons)
Photos must be taken during unloading if any problems found and report to MCS office at same time
Verify PO/Item on carton marks against PO/Item on Shipping Order (S/O)
Counts number of package, measure L x M x W and weigh per PO/ITEM
If actual CBM, KGS is +/-10% vs. booking, warehouse need to re-confirm measurement is correct,
Marks palletized cargo and records # of pallets received
Issue Mate Receipt to trucker with actual number of packages , total CBM , total weight (vendor must submit Dock Receipt to exchange FCR)
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19. Late Come Delivery Late come delivery request
Due to delay of production, cargo only can be delivered after normal CFS closing
Flexibility v.s. Discipline
Establish ‘Late Come Request’ closing to ensure proper arrangement (with warehouse and/or carrier) in advance
Letter of Indemnity may needed so vendor shall bear all incurred expenses (if any) including dead freight due to ‘no show’ or shortage
Consult with your supervisor and local manager on any exceptional cases handling if you are not sure about it.
2/24/ Business Confidential

20. Overtime Delivery Overtime delivery
Cargo delivers after normal warehouse operating hours
To catch up last day closing or to avoid holding up the truck overnight
Establish local overtime delivery request tariff
To recover incurred expenses with warehouse
Charge per truck (or every certain CBM) with minimum plus waiting hours
Consult with your supervisor and local manager on any exceptional cases handling if you are not sure about it.
2/24/ Business Confidential

21. Container Load Planning - 1
Plan containers as per customer’s SOP (i.e. by DC, by vendor/PO, by Style, by Size etc.)
Plan and load FCL and larger size container whenever possible
Select equipment plan to minimize ocean freight when alternatives exist upon customer’s approval.
Mixed DC to maximize container utilization if mixed DC container is allowed.
Seek approval (if needed) earlier whenever possible for light load and/or 20’
Approval may also needed for CY/CY
2/24/ Business Confidential

22. Container Load Planning - 2
Do not force shipper to deliver cargo as CFS if we have no other CFS cargo to consolidate and CY/CY loading is allowed
Even with overflow cargo, refer to SOP if consolidator can hold overflow PO for next week’s consolidation
Avoid PO split across containers unless the PO volume is too big to fit into one container or the need to maximise container utilisation
Never split PO across vessel for same shipment without separate set of document for customs clearance
Vendor is subject to CFS stuffing charge, prorated THC/drayage (if paid by vendor)
For CFS/CY container, take digital photo (1) inside of empty container (2) half loaded (3) loaded container with container# by closing one door
2/24/ Business Confidential

23. Container Load Planning - 3
Final loading details must be provided by warehouse timely right after loading
Warehouse to follow up if loaded container arrive carrier CY prior to CY closing
Conduct ‘Floor Check’ whenever possible after the last container (for the target vessel) loaded but before leaving the CFS warehouse
operations team to receive final/actual load plan to along with:
Tally record with container#/seal#
Loading check sheet (with date/time stamp and signature)
Dock Receipt of container received by carrier
Report any exception(s):
Cargo for particular PO/Item not found
Late come cargo with shortage or ‘no show’
Overflow cargo cannot fit into container as per CLP plan
Wrong loading etc.
2/24/ Business Confidential

24. Factory Load (CY/CY)
Vendor with enough cargo to build FCL so as to save CFS stuffing charge
For origins with no CFS warehouse available
No or limited vendors with available cargo to consolidate
Consolidator may still need to verify the load plan comply with customer’s loading requirements as per SOP
Vendor is subject to CY Handling Charge (i.e. CY Administration Fee), THC and drayage etc.
2/24/ Business Confidential

25. Container Drayage
Usually handled by CFS warehouse for CFS/CY shipments
Avoid to plan, load and return loaded container on CY cut off day to avoid space/equipment, traffic congestion problem during the peak season
Co-ordinate with carrier and shipper to avoid storage charge
For CY/CY shipment except under ‘Ex-work’ term, drayage is arranged by vendor at their own expense
If origin is ready to provide trucking service for vendors, especially CY shipments, operations team can conduct a telephone sale when talking to vendors.
2/24/ Business Confidential

26. Export License/Export Clearance
This may be a MUST by local law that the shipper should have had export license before shipment
Consolidator and carrier are also responsible to enforce this regulation
Application and issuance may via EDI and/or local web application
Establish control process with operations to enforce and double check if license(s) needed for particular booking
If license required:
For CFS/CY, except for late come cargo, no booking will be included in container load plan unless license has received
For CY/CY shipment, no empty container will be released (if operational possible) without license
Establish control point (if needed) to inform carrier to stop container at port if no license received prior to CY closing
Maintain signed record with license # whoever receives license within the office
2/24/ Business Confidential

27. 24 Hours Advance Manifest (AMS)
Vendors must be informed of SI Closing in advance
AMS is filed by carrier with info provided by consolidator via SI.
If there is Manifest Amendment charge and any incurred expenses or penalty imposed by US Customs, the party who request the amendment shall bear all incurred expenses and penalty
Merchandise description must be specific enough in comply with US Customs regulation
HTS # is optional unless required by customer as per SOP
For CFS/CY container, consolidator is still allowed by US Customs as ‘shipper’ on B/L. Otherwise, it must be the actual shipper
Refer to US Customs publications of required data elements which must be provided by consolidator
2/24/ Business Confidential

28. Carrier B/L
Submit B/L instruction to carrier/NVOCC via internet, or fax
Services contract # usually need to show on B/L
Ocean freight may need to validate or be shown on B/L as per SOP
AMS charge to vendor or to consignee (as collected) as per SOP
Prepare B/L as per SOP which usually per vessel per destination with or without maximum # container per B/L
Separate B/L for quota, non-quota and wild-life cargo
If possible, use ‘MOL Consolidation Service xxx O/B various Shipper’ as shipper name for CFS/CY shipment
Consignment and Notify Party as per SOP and notify customer on exception against vendor’s booking
2/24/ Business Confidential

29. OBL and SWB In which areas are the B/L and the SWB the same?
They both function as a Receipt for cargo and Evidence of contract of carriage
They both contain details about the shipment such as shipper, consigned, vessel, place of delivery, cargo description and date
They must not be issued with a date different than the true issuance date/onboard date
They are issued by the ocean carrier (VOCC)
They obligate the carrier to ensure correct description of the goods
They obligate the carrier to care for the cargo while in his custody
They obligate the carrier to ensure that he releases the goods to the correctly entitled party at destination
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30. Difference between OBL and SWB
In which areas are the B/L and SWB different?
Ocean BL is a document of title. The Seaway Bill is not
A SWB can’t be consigned “to order”, it must always state a consignee
The B/L is printed in sets of originals and copies (often 3 originals). A SWB is only printed as copies
The carrier doesn’t require an original SWB in order to release the goods at destination
2/24/ Business Confidential

31. Same Carrier, Same Vessel, Same Voyage Same Origin, Same Destination
Definition of “Job”
Single Consignee
Same Carrier, Same Vessel, Same Voyage
Same Origin, Same Destination
Same Ship Mode

32. Documentation – Document Upload
Shipment level
Ocean BL level
Container level
FCR level
Booking level
PO level

33. Documentation – Generic

34. 1. Document Transmittal Advise
Documentation – Generic Sorting
1. Document Transmittal Advise
2. Bill of Lading
3. Container Manifest
4. FCR
5. Packing List
6. Commercial Invoice
For example:
Certificate of Origin
Country of Origin Declaration
Fumigation certificate
General Certificate of conformity
7. Other Document

35. 1. Document Transmittal Advise
Documentation – Generic Sorting
One Job, Multiple B/L, Multiple Container, Multiple FCR
1. Document Transmittal Advise
2. Bill of Lading
2. Bill of Lading
2. Bill of Lading
3. Container Manifest
3. Container Manifest
3. Container Manifest
3. Container Manifest
4. FCR
4. FCR
4. FCR
4. FCR
4. FCR
4. FCR
5. Packing List
5. Packing List
5. Packing List
5. Packing List
5. Packing List
5. Packing List
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
7. Other Document
7. Other Document
7. Other Document
7. Other Document
7. Other Document
7. Other Document

36. Documentation - Michaels Stores

37. Documentation – MS Document Sorting Type of Document Broker Original
Copy
Bill of Lading (Seaway bill) 1
Commercial Invoice
Packing & Weight List
Container Manifest
Insurance Certificate
Certificate of Origin
Country of Origin Declaration (textile declaration)
Beneficiary Statement
FCR
Fumigation certificate
General Certificate of conformity

38. Documentation – Document Checking Document Transmittal Advise
Receiver Name
Pouch Details
Send Date
Courier Number
Consignee Name
Shipment Details
B/L#, Container#
Document Details

39. Documentation – Document Checking
Bill of Lading
Receiver Name
Consignee Name
Notify Party & Also Notify Party
Vessel, Voyage and Sailing Schedule
Container#, Seal#, Shipping Marks, Description should match with SI
Sailing Date

40. Documentation – Document Checking
FCR
Shipper
Must show real shipper's name
Consignee
1) Consignee name
2) To order (to order of xxx ),for Telex Release, must not show "to order"
Notify Party
1)Same as consignee (as long as consignee is not "to order" ) 2)Destination broker's name per client request
For FCR, the most important date is cargo receive date not on board date. When we normally say a “back-dating FCR”, it means back-date the cargo receive date, but neither backdating receipt date nor the sailing date is acceptable.
Vessel or Voyage
vessel and voyage
"A vessel" is shown
Date of receipt of cargo
Must show the date cargo delivered to warehouse AND the cargo are really to ship, back-dated is prohibited
Authorized signature date
The date of printing the document

41. Documentation – Document Checking
Terms of Sale
Correct terms of sale as shown on the PO.
MSP – Commercial Invoice
Shipper Name and Address
Complete name/address of the shipper/seller of the merchandise. If the seller is a US company, the invoice must also contain the manufacturer's name/address
Shipper Name
Manufacturer Name and address
Buyer and Sold to Party
Buyer and Sold to address should always read:
Michaels Stores Procurement Co., Inc.
8000 Bent Branch Drive
Irving, Texas 75063
Ship to address
Ship to address should be the actual address of the destination
Country of Origin
Manufacturer Name and Address
Complete name/address of the foreign manufacturer. If the manufacturer's name/address is not to be disclosed, a foreign shipper's name/address must be shown.
In the case of shipments requiring US Food and Drug (Ceramicware for lead content ex China) Clearance, a foreign manufacturer's name must be shown on the commercial invoice.
Goods Description
Full, complete, detailed description of the goods for proper classification, line-by-line
Price of Goods
Pricing must reflect the total value of the shipment - Correct price of the goods as shown on the PO.

42. Case Study 1. What is the carrier B/L# in starlink?
Answer: MAEU

43. Case Study 2. Can origin cancel the booking in starlink?
Answer: YES, origin can cancel booking in starlink.
3. Can origin cancel the Job in starlink?
Answer: Job CANNOT be cancelled in starlink.
4. Can origin cancel the FCR in starlink?
Answer: Origin cannot cancel FCR, please send to MCS IT team.
5. Some CFS cargo delivered to warehouse on Mar 02, but the cartons are serious damage and need to change the cartons. Vendor changed the cartons on Mar 04. What is the cargo receiving date in starlink?
Answer: The cargo receiving date in starlink is Mar 04. The cargo receiving date should be the cargo delivered to warehouse AND ready to ship. We will use Mar 02 as Temporary Cargo Receiving Date (TCR Date).

44. Case Study
6. For manual PO#, I would like to add the HTS# in starlink, but starlink pop up an alert message: GEN Please enter valid HTS NO.
Answer: Start from February 3, 2012, World Customs Organization has released the updated Harmonized Tariff Schedule. However, starlink team need time to update the HTS#. For this issue, please check the HTS# in below link. If the number exist as below website, please send to MCS IT team for help.

45. Documentation - Collect Documents 1
Documents to be collected as per SOP
Standard documents
Origin specific document(s)
Commodity specific document(s)
PO specific document(s) if information available
Triangular trade document(s) substitution. Suggest to let factory to send original Visa to vendor to avoid loss of Visa between MOL offices
Original or Copy?
License and Visa needs special controls over original copy to avoid missing document
2/24/ Business Confidential

46. Documentation - Collect Documents 2
Vendors must submit COMPLETE set of documents before consolidator releasing FCR or other B/L to vendor.
Vendor to provide enough Original and Copy document set
‘No Doc No Ship’ may required as per SOP
Vendor will advise either to split or to combine particular PO/Item in FCR as per L/C requirement
A document dispatch advice is required to summarize what document(s) included if document(s) are sent via domestic/international courier. Besides, ORIGINAL Visa # must be marked on the notice so the recipient can check all original Visa is receipt
2/24/ Business Confidential

47. Documentation - DDN
Send Document Delay Notice (DDN) to the vendor, with copy to customer’s control office (consignee or local office), to remind the vendor to submit missing documents as per SOP.
Usually, send 1st DDN 5-7 days after vessel sailing from origin then to-resend every 3-4 days afterward until complete set of documents are received
As per local market practice, vendor may subject to Delay Doc Charge to recover incurred efforts and cost
If there is any late documents, send any complete documents on hand. Keep customer informed of BL & container with incomplete documents
2/24/ Business Confidential

48. Documentation - Verification
Requirement as per SOP
Standard document checking:
PO/Item#
Signature required for original document
Visa valid date and quantity
Reconcile total quantity to assure no missing PO or document set
Specific required document(s) (e.g. Inspection Report or Sample Approval Letter)
Total quantity, weight checking in Carrier BL, vendor documents and MCS documents to ensure no discrepancies.
Customer specific verification may required with or without additional compensation
Customer specific document check list may required on specific document(s) and data element(s)
Avoid accept complicated document by fax for verification whenever possible to avoid duplicate work upon receipt of actual document
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49. Documentation - Dispatch
Documents in the pouch
Pouch dispatch copy (if any)
Document transmittal
Cover page of Original Visa#
Bill of Lading and Container X-Ref
Container manifest
FCR & Commercial Documents
Management Fee invoice
For partial document pouch, it must be marked as ‘partial’. All subsequent document pouches must be marked as ‘1st, 2nd, 3rd … etc. with reference to the first pouch reference#
Document sorting sequence – according to SOP
Case 1 - One B/L covers multiple containers
Case 2 - One container covers multiple B/L
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50. Documentation – Upload/Email
Documents should be split per carrier B/L.
Each file should be named as carrier B/L no.
Each file size should not exceed 2M.
If the file size of whole set of documents for one carrier B/L exceeds 2M, the documents should be
split with complete set of documents.
split with name as :B/L#MOLU Part A, B/L#MOLU Part B
For starlink upload, documents should be uploaded per shipment.
2/24/ Business Confidential

51. Documentation – Generic

52. Documentation – Generic Sorting
1. Document Transmittal Advise
2. Bill of Lading
3. Container Manifest
4. FCR
5. Packing List
6. Commercial Invoice
For example:
Certificate of Origin
Country of Origin Declaration
Fumigation certificate
General Certificate of conformity
7. Other Document

53. Documentation – Generic Sorting
One Job, Multiple B/L, Multiple Container, Multiple FCR
1. Document Transmittal Advise
2. Bill of Lading
2. Bill of Lading
2. Bill of Lading
3. Container Manifest
3. Container Manifest
3. Container Manifest
3. Container Manifest
4. FCR
4. FCR
4. FCR
4. FCR
4. FCR
4. FCR
5. Packing List
5. Packing List
5. Packing List
5. Packing List
5. Packing List
5. Packing List
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
6. Commercial Invoice
7. Other Document
7. Other Document
7. Other Document
7. Other Document
7. Other Document
7. Other Document

54. Documentation – Michaels Stores

55. Documentation – MS Document Sorting
Type of Document
Broker
Original
Copy
Bill of Lading (Seaway bill) 1
Commercial Invoice
Packing & Weight List
Container Manifest
Insurance Certificate
Certificate of Origin
Country of Origin Declaration (textile declaration)
Beneficiary Statement
FCR
Fumigation certificate
General Certificate of conformity

56. Documentation – Document Checking
Document Transmittal Advise
Receiver Name
Pouch Details
Send Date
Courier Number
Consignee Name
Shipment Details
B/L#, Container#
Document Details

57. Documentation – Document Checking
Bill of Lading
Receiver Name
Consignee Name
Notify Party & Also Notify Party
Vessel, Voyage and Sailing Schedule
Container#, Seal#, Shipping Marks, Description should match with SI
Sailing Date

58. Documentation – Document Checking
FCR
Shipper
Must show real shipper's name
Consignee
1) Consignee name
2) To order (to order of xxx ),for Telex Release, must not show "to order"
Notify Party
1)Same as consignee (as long as consignee is not "to order" ) 2)Destination broker's name per client request
For FCR, the most important date is cargo receive date not on board date. When we normally say a “back-dating FCR”, it means back-date the cargo receive date, but neither backdating receipt date nor the sailing date is acceptable.
Vessel or Voyage
vessel and voyage
"A vessel" is shown
Date of receipt of cargo
Must show the date cargo delivered to warehouse AND the cargo are really to ship, back-dated is prohibited
Authorized signature date
The date of printing the document

59. Documentation – Document Checking
MSP – Commercial Invoice
Terms of Sale
Correct terms of sale as shown on the PO.
Shipper Name and Address
Complete name/address of the shipper/seller of the merchandise. If the seller is a US company, the invoice must also contain the manufacturer's name/address
Shipper Name
Manufacturer Name and address
Buyer and Sold to Party
Buyer and Sold to address should always read:
Michaels Stores Procurement Co., Inc.
8000 Bent Branch Drive
Irving, Texas 75063
Ship to address
Ship to address should be the actual address of the destination
Country of Origin
Manufacturer Name and Address
Complete name/address of the foreign manufacturer. If the manufacturer's name/address is not to be disclosed, a foreign shipper's name/address must be shown.
In the case of shipments requiring US Food and Drug (Ceramicware for lead content ex China) Clearance, a foreign manufacturer's name must be shown on the commercial invoice.
Goods Description
Full, complete, detailed description of the goods for proper classification, line-by-line
Price of Goods
Pricing must reflect the total value of the shipment - Correct price of the goods as shown on the PO.

60. Documentation – Document Checking
MSP – Packing List
Origin,
Discharge Port
Destination
Shipper Name and Address
Consignee / Sold To Party
PO No., Item No., Description, Number of cartons, Number of pieces, Gross weight, Measurement
Company Chop and Signature

61. Case Study 1. What is the carrier B/L# in starlink?
Answer: MAEU

62. Case Study 2. Can origin cancel the booking in starlink?
Answer: YES, origin can cancel booking in starlink.
3. Can origin cancel the Job in starlink?
Answer: Job CANNOT be cancelled in starlink.
4. Can origin cancel the FCR in starlink?
Answer: Origin cannot cancel FCR, please send to MCS IT team.
5. Some CFS cargo delivered to warehouse on Mar 02, but the cartons are serious damage and need to change the cartons. Vendor changed the cartons on Mar 04. What is the cargo receiving date in starlink?
Answer: The cargo receiving date in starlink is Mar 04. The cargo receiving date should be the cargo delivered to warehouse AND ready to ship. We will use Mar 02 as Temporary Cargo Receiving Date (TCR Date).

63. Case Study
6. For manual PO#, I would like to add the HTS# in starlink, but starlink pop up an alert message: GEN Please enter valid HTS NO.
Answer: Start from February 3, 2012, World Customs Organization has released the updated Harmonized Tariff Schedule. However, starlink team need time to update the HTS#. For this issue, please check the HTS# in below link. If the number exist as below website, please send to MCS IT team for help.

64. FCR & Local Charges - 1 FCR has only one original
FCR is stipulated in L/C as negotiation document or demanded by customer prior to release payment to vendor
FCR is to avoid shipper to ship direct with carrier without booking to the consolidator
FCR is to enforce vendor to pay consolidator applicable local charge
FCR is not a TITLE document
FCR is a document to prove:
for CFS, cargo has been received at consolidator’s warehouse
for CY, container has been on-board
2/24/ Business Confidential

65. FCR & Local Charges - 2
Do not release FCR before ship sailed if the consolidator cannot 100% sure containers has been on board and only vendor (or their designated broker) can re-declare to export Customs authority for container re-schedule to next vessel.
Do not release FCR before all local charges have been settle by vendor.
No credit to vendor unless agreed by local office
Each FCR with a unique FCR#, list of documents and date of complete set of documents received
If re-issue FCR, the original FCR must be stated on FCR
2/24/ Business Confidential

66. FCR & Local Charges - 3
Triangular trade document charge applicable if FCR release to or specific documents received from local vendor for shipment physically ex other origin
Issue ONE original copy FCR within one working day upon
all applicable local charges has been received
COMPLETE set of required documents have been received
Physical cargo has been received or shipped on board
For on-board FCR or container#/BL# required on FCR, FCR shall only issue to vendor after container confirmed on board
2/24/ Business Confidential

67. FCR & HBL Basic Knowledge
When a consignee has negotiated freight rates directly with the ocean carrier but has nominated MCS as consolidator at origin, we are acting as agent for the consignee. When we have reserved the goods from shipper, we issue a Forwarder Cargo Receipt. The seller will use the FCR to confirm the buyer that he has delivered the goods for shipment. MCS will co-ordinate that the ocean carrier issues a Bill of Lading or Sea Waybill.
HBL:
When a seller ships goods via a NVOCC, the NVOCC will confirm that the goods have been shipped by issuing a House Bill of Lading (HBL) to the shipper. The consignee must submit the original HBL to the NVOCC at destination to obtain release of the goods.
2/24/ Business Confidential

68. FCR Key Points For FCR Key points Shipper
must show real shipper's name
Consignee
must show real consignee's name, it is not allowed to show "to order"
same as consignee on B/L
Notify party
same as consignee or 2) destination broker's name per client request
Same as Notify Party on B/L
Vessel and voyage
1) vessel and voyage or 2) "A vessel" is shown if FCR release before ATD
Sailing date
1) ETD date or 2) keep it blank when sailing date is unknown.***
Date of receipt of cargo
must show the date cargo physically delivered to MCS
back-dated is prohibited
Authorized signature date
the date of printing the document
Document received
must show the name of document received with no. of quantity
Full set of document
Only one original
2/24/ Business Confidential

69. HBL Key Points 2/24/2019 Business Confidential For HBL Key points
Shipper
must show real shipper's name
Consignee
1)consignee name 2) to order (to order of xxx ),for Telex Release, must not show "to order"
Notify party
1)same as consignee (as long as consignee is not "to order" ) 2)destination broker's name per client request
Forwarder Agent
MCS destination
Vessel and voyage
Must show and match with what shows on the CBL/CSWB/HBL received from carrier and another NVOCC
Sailing date
Must show and match with what shows on the CBL/CSWB/HBL received from carrier and another NVOCC, back-dated is prohibited
issuance date
Must show on HBL and must be same with sailing date
Full set of document
normally default as 3 original plus 3 copy, can be changed per client's L/C request, however customer can request more
Discharge port
Must be last sea port and match with what shows on the CBL/CSWB/HLB received from carriers and another NVOCC
service term
must show, cy/cy, cfs/cy, cfs/cfs
Clean on board
must not show “clean on board” in HBL
2/24/ Business Confidential

70. Thank you very much for your kind attention.
MOL Consolidation Service
Thank you very much for your kind attention.
2/24/ Business Confidential