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Subcontractor Terms and Conditions

If you are acting in the capacity of “Freight Forwarder” for DB Schenker and you are subcontracting the haulage work to a 3rd Party, it is the responsibility of the supplier and persons signing this form (1st Subcontractor) to ensure that all Hauliers or secondary subcontractors working for you on any Schenker business adhere to all of the below requirements.

2.1       LEGAL AND GOVERNMENTAL REQUIREMENTS
Before a subcontractor will be authorised to work for DB Schenker, they must comply with the following:
a.    Either hold, or employ a Transport Manager who possesses, a Certificate of Professional Competence.
b.    Possess a current National and/or International Operators/EU Licence (O Licence);
c.    All vehicles must be registered and road taxed where applicable (this may have different name per country but is the fee due to drive a motor vehicle on a public road)
d.    All Vehicles must always display a current O Licence Disc.
e.    All work carried out on behalf of DB Schenker must be performed by vehicles that comply with all statutory regulations.
f.    That all drivers have the necessary professional skills, hold a valid, current driving licence and, where applicable a Dangerous Goods licence (ADR), Aviation Security training to Level D, a criminal record check (basic) and a Company photographic ID.
g.    When collecting/carrying/storing or delivering air cargo on behalf of DB Schenker, the company will sign and agree to be bound by the External Provider Form as required by the Aviation and Maritime Security Act of 1990.
h.    Satisfactory references must be taken out on all employees prior to working for DB Schenker, which should include a review of the employee’s prior employment, driving and criminal history for a period of five years prior to the hiring date.
i.    Vehicles and equipment must fully comply and be fit for their intended use with all the relevant regulations relating to the carriage of goods in particular the Road Traffic Act.

2.2       INSURANCE REQUIREMENTS
a.    If you are a haulier and you are providing services to destinations outside the UK, the Haulier must hold a current Goods in Transit/Freight Liability/Marine Insurance Policy with the minimum of £250,000 any one vehicle or be CMR & CMR by contract fully covered. If the haulier is only providing Domestic UK services, then we require that haulier’s trade to RHA 2009 conditions at minimum.
b.    Hold Public Liability Insurance with minimum cover of £5 million.
c.    Have an insurance policy with adequate and correct territorial limits for the business you are asked to move. (for example, you cannot move freight for us to Sardinia, if your insurance policy doesn’t cover Sardinia)
d.    No excluded classes of goods other than cash, bullion, livestock, precious metals and such like unless previously agreed

2.3       SANCTIONS
By signing this ‘EPF’ form the supplier confirms that the company and its employees are not listed on any applicable sanction list, especially the EU sanction lists such as EC 2580/2001 and EC 881/2002. The supplier will regularly screen its employees against such sanction lists and will inform DB Schenker immediately in writing in case company or any of its employees are listed.

2.4      AUTHORISED ECONOMIC OPERATOR – SECURITY DECLARATION
DB Schenker operates as an AEO (Authorised Economic Operator) EORI Number 656921313000
HMRC state its good practise even if the Subcontractor holds an AEO accreditation themselves that a security declaration is in place between both companies.   The subcontractor declares that:
a.    goods, which are produced, stored, forwarded or carried by order of Authorised Economic Operators (AEO), which are delivered to AEO or which are taken for delivery from AEO
b.    are produced, stored, prepared and loaded in secure business premises and secure loading and shipping areas
c.    are protected against unauthorised interference during production, storage, preparation, loading and transport
d.    reliable staff is employed for the production, storage, preparation, loading and transport of these goods
e.    Business partners who are acting on my behalf are informed that they also need to ensure the supply chain security as mentioned above.

This declaration was issued to: Name (Company) 

Schenker Ltd 

Street Address 

Schenker House, Unit 3, LHR Portal, Scylla Road 

City 

London Heathrow Airport, Hounslow, Middlesex 

Country 

Great Britain 

Postal Code 

TW6 3FE


2.5       OPERATIONAL REQUIREMENTS
Reporting for Work
a.    Prior to undertaking any work for DB Schenker, the subcontractor should ensure you have confirmation in writing of the work you have been asked to undertake, this can be in the form of an approved consignment note.
b.    Passengers are not allowed unless required by the contract/assignment.
c.    When reporting to the relevant DB Schenker office, the driver must identify himself and/or his employer and, if requested, provide a security pass which will incorporate a photograph of the authorised holder and be valid for a specified period of time.
d.    All vehicles must be parked without causing an obstruction.
Collection and Delivery of Goods
e.    When making a collection or delivery of goods, the subcontractor’s driver should ensure that the condition of the goods and their number are correctly noted and signed for accordingly. Where appropriate, seal numbers on transport units should also be recorded. The subcontractor is required to notify the controlling DB Schenker office of any discrepancies without delay.
f.    The subcontractor must notify the controlling DB Schenker office immediately following completion of the job.
Telephone Contact
g.    All subcontract vehicles are expected to be supplied with a cab/mobile phone at the owner’s expense and use of aforementioned cab/mobile phone must comply with all current legislation.
h.    Subcontractors must telephone the relevant DB Schenker office whenever they experience deviations in their days work (i.e. delay, refusal, extra goods, accidents, complaints, damage, short delivery etc.).
Stowing and Securing of Load
i.    Subcontractors must ensure that all loads are correctly stowed and secured for transit by road and that the correct securing devices have been used for the type of load being carried.
Receipt of POD’s/CMR’s
j.    Should any damage/shortage be endorsed on delivery notes a copy should be handed immediately to the DB Schenker Office (if not available for download from the carrier’s website) on return to base and a copy returned to the haulier.  If a clean receipt is obtained the P.O.D. should be returned to the haulier who will forward it to the carrier’s office at time of invoice unless otherwise agreed.
k.    Failure to meet this requirement may subsequently result in the subcontractor being held liable for the claims arising subject to Standard Conventions.
Overloading
l.    Subcontractors are reminded that they, and not DB Schenker, are responsible for ensuring that trailers, unit/trailer combinations or vehicles are not overloaded either on axle or gross weights.  Drivers must exercise proper care and diligence during loading to avoid this problem.
Drivers Hours Regulations
m.    At all times subcontractors are expected to comply with the law relating to Drivers Hours etc. and must also ensure that they comply with all their legal obligations relating to the operation of commercial vehicles.  Failure to do so will result in the defaulting Subcontractor being barred from working on DB Schenker’s behalf.
Breakdown Procedure
n.    The relevant DB Schenker office must be advised of any breakdown as soon as it is practical.  This enables them to advise the customer of the delay and make alternative arrangements if necessary.
DB Schenker Equipment
o.    It is essential to follow the working practices of DB Schenker’s Equipment for owned equipment, when appropriate.
p.    The Subcontractor may never use DB Schenker’s equipment for his own use.
Insurance Claims
q.    The subcontractor agrees that it will process resolve any claims without undue delay and that insurance claims are dealt with under the provisions of insurance requirements aforementioned.

2.6      CUSTOMS CLEARANCE
a.    Where the subcontractor is providing customs clearance services for DB Schenker the subcontractor should: -
b.    Only act upon information received in writing from DB Schenker or our agreed agents overseas
c.    The subcontractor should advise of any irregularities or discrepancies in the information and documentation received relevant to our business.
d.    The subcontractor should indemnify DB Schenker against all fines that HMRC may levied against the principal who are found to be the fault of the subcontractor.
e.    If named persons are authorised by the subcontractor to make declarations on DB Schenker's behalf, the subcontractor will indemnify DB Schenker against any financial loss incurred by the subcontractor following any wrongful act of the named person. Furthermore, the subcontractor is required to immediately notify DB Schenker if the named person leaves the employment of the company.
f.    Unless otherwise agreed in writing, the subcontractor will only act in the capacity of a direct representative when declaring goods to HMRC.

2.7      SECONDARY SUBCONTRACTING
Secondary subcontracting is permitted subject to the following conditions:
a.    That the permission of DB Schenker is obtained prior to any secondary subcontracting.
b.    That the contract remains always between DB Schenker and the first subcontractor in accordance with our insurance requirements.
c.    That the subcontractor is responsible for ensuring the secondary subcontractor complies with the salient points of the original contract and that the supply chain security is maintained as required by the Authorised Economic Operator (AEO) security standards.

2.8      PAYMENT
UK Payment is 45 Days date of invoice and IE is 30 Days date of invoice, unless otherwise contractually agreed between DB Schenker and the carrier - Payment will not be made unless our reference(s) is/are stated on the invoices, and collection/P.O.D’s attached or returned by any other agreement (including site of the Collection/POD on the carrier’s website).  Payment may be delayed if any of the conditions are not fulfilled. Acceptance of an invoice for transport indicates the contract of delivery is complete regarding details on the delivery note.

2.9      INVOICING
We will require all invoices to be sent to one location per paying entity; our finance department will be in touch once the account setup/approval is complete with regarding the address for invoices as this is specific to the services provided.
At a minimum, all invoices must show a breakdown of costs clearly depicting amounts per ‘cost centre’. The ‘Purchase order reference’ as shown on the Purchase order raised via our e-Procurement Tool should also be included, if provided. If the supplier has room for a further reference on the invoice the ‘Contact Name’ that ordered the goods/services is also desirable on the invoice raised to Schenker Ltd.

2.10    HEALTH AND SAFETY AT WORK ACT 1974
a.    Under Section 7 of this Act it is the duty of a driver whilst at work, to take reasonable care of the health and safety of himself, and other persons who may be affected by his acts or omissions, at work.
b.    The driver has a further duty to cooperate with his employer, so far as is necessary, to enable his employer to comply with the relevant statutory provisions.
c.    Subcontractors have a duty to comply with the provisions of the Act and abide by it when working on DB Schenker’s behalf.

2.11     DATA PROTECTION
Where any Confidential Information comprises personal data (as defined in Data Protection Legislation), the parties shall comply with all applicable requirements of Data Protection Legislation. “Data Protection Legislation” means any data protection laws from time to time in force in the UK including the General Data Protection Regulation ((EU) 2016/679) and the Data Protection Act 1998, 2018 or any successor legislation.

2.12     VEHICLE SECURITY PROCEDURES
The following instructions are to be applied to all drivers/vehicles when carrying Schenker cargo or operating on behalf of DB Schenker.
1.    Vehicles must never be left unattended with the keys in position or cab unlocked.
2.    Both doors (driver and passenger) must be locked whilst in transit.
3.    When arriving at premises for loading/unloading do not unlock the cargo compartment and leave the vehicle unattended at any time.
4.    Ensure the load compartment is locked/secured always.
5.    Never leave keys hidden in the vehicle for collection by relief driver.
6.    Never park the vehicle in secluded or unlit areas. Vehicles/Trailers should not be left unattended for long periods of time unless at an authorised secured parking area.
7.    Do not pick up hitchhikers.
8.    Do not reveal the details of load/contents or parking intentions in discussions with third parties.
9.    Be wary of being followed on foot when returning to vehicle or by another vehicle on the road.
10.    If vehicle breaks down, be wary of assistance from third parties.
11.    If possible, when parking, back up to an obstacle to deny access to the load compartment doors.
12.    When delivering a load:
a.    do not agree to last minute changes of delivery address unless authorised
b.    do not terminate custody of the load until in possession of a signed POD from the correct consignee
c.    always get a proper, clear signature including time and date for goods delivered
13.    When collecting a consignment
a.    ensure the cargo compartment is intact
b.    inspect the cargo for signs of interference or damage
c.    time and date of collection to be recorded
d.    cargo compartment to be locked/secured immediately after loading
14.    In the event of an incident e.g. attempted robbery, hi-jacking, theft of cargo, discrepancy in cargo quantities or driver finds during a journey that his load has been compromised in any way the DB Schenker office must be informed immediately.
15.    For airfreight:
a.    Immediately prior to loading, the cargo compartment will be searched. After completion of the search the integrity of this compartment will be maintained until loading is completed.
b.    Each driver will carry a security pass that will incorporate a photograph of the authorised holder and be valid for a specific period of time

2.13     DANGEROUS GOODS LOADS
General
a.    When engaged in moving dangerous goods in packages or bulk, subcontractors /drivers must ensure that they comply with the full legal ADR (& CDGR) regulations currently in force always.  
b.    Vehicles/trailers loaded with dangerous goods can only be parked overnight at authorised security parking locations as per above regulations.
Training
c.    Drivers must be in possession of a valid ADR-licence. A DGSA with valid certificate must be appointed
d.    Where applicable, office staff must have received training as per current ADR regulations
Responsibilities
e.    DB Schenker will give drivers prior notification of their intention to move dangerous goods as well as advising if cargo segregation is necessary
Drivers Obligations
Apart from a general inspection of the goods collected the driver should ensure that: -
f.    The packaging is marked with UN type approval marking, the packaging is labelled and marked with a UN number in compliance with the details in the goods declaration
g.    He obtains a dangerous goods declaration per shipment containing the information stipulated in the ADR and IMDG regulations (normally included in the Dangerous Goods Note but can be given in a separate document)
h.    He obtains the shipper’s declarations for ADR & IMDG per shipment (normally included in the Dangerous Goods Note but can be given in a separate document)
i.    The driver must possess a transport emergency card in the official language of the countries of transit and destination
j.    The goods have not been damaged and that the type and number of packages correspond with the information in the dangerous goods declaration
k.    A signed CPC (Container Packing Certificate) is obtained when the goods have been loaded on the international vehicle
l.    The driver’s ADR certificate is valid, and the ADR certificate is valid for class/es in question
m.    Dangerous goods that do not meet the demands in the transport rules for dangerous goods should be rejected by the driver prior to loading.  The reason for rejection should be reported to the responsible transport planner at Schenker before leaving the loading site.

In addition to the above, the driver should also
n.    Comply with the local rules at a loading site or terminal
o.    Check that necessary safety equipment and any other extra equipment is available on the truck before transport commences
p.    The goods are handled responsibly with the aim of minimising the risk of an accident
q.    Comply with the mixed loading provisions, possible segregation provisions and the quantity limits per vehicle
r.    Place orange plates on the vehicle and label the vehicles/transport unit where applicable
s.    Keep documentation on dangerous goods separate from other transport documents
t.    Follow other rules applicable to the transport of the substances in the load, e.g. routing provisions and supervision of the vehicle always
u.    Follow the instruction on the Transport emergency card in the event of damage or an accident
v.    Report an accident or incident as soon as possible to the transport responsible planner at DB Schenker

12.14   GENERAL
a.    DB Schenker reserves the right to audit the supplier at their premises(s) whilst the supplier is providing goods/services to DB Schenker to enable the verification of the supplier’s responses enclosed. The supplier will be given a notice period of one week “minimum” of the scheduled audit date.
b.    The supplier shall notify DB Schenker of nonconforming processes, products, or services and obtain approval for their disposition that may affect our business together.
c.    The supplier shall notify DB Schenker of changes to processes, products, or services, including changes of their external providers or location of manufacture which may affect our business together.
d.    The supplier shall provide a certificate of conformity, test reports, or authorised release certificate, as applicable
e.    The supplier shall grant the right of access to DB Schenker, their customer(s), and regulatory authorities to the applicable areas of facilities and to applicable documented information, at any level of the supply chain
f.    The supplier is responsible for ensuring that staff/persons are aware of:
1.    their contribution to product or service conformity;
2.    their contribution to product safety.