Protection Plan

Protection Plan activation terms and conditions

The protection of members’ receivables is one of the foundations of a well-functioning network. Since the Protection Plan is included in the membership fee, below are its key terms:

1. Applies only to transactions between BAM members.

2. Becomes effective upon payment of the membership fee and acceptance of BAM’s rules and Code of Ethics.

3. (Partially) covers unpaid invoices and bad debts only

4. For other types of debts, BAM Management will evaluate case by case; members must also hold their own Forwarder’s Liability Insurance.

5. BAM Management decisions are final.

6. Recommended payment terms: 30 days from invoice date with or without amount limit (up to 60 days if agreed by both parties). In any case BAM does not interfere in private agreements about credit terms.

7. Members must inform BAM Management within 60 days of the expected payment date (max. 120 days from invoice). This is mandatory for protection plan activation.

8. Before doing business, always check with BAM that the partner’s membership is valid.

9. Claims must be supported by documentation (invoices and correspondence). BAM will review and attempt recovery before activating the plan.

Activation:

• Applies per statement of account between two members.

• BAM will attempt recovery before recognition.

• Up to a maximum of 60% of the unpaid amount may be covered and with a second limit of 6 times the annual membership fee paid.

• The loss coverage (in case of non-payment by another member) does not apply if the creditor is not a member in the country involved in the export or import, and/or is not acting as the coordinating and invoicing center for the shipment (cross trade);

• Adjustments may apply if shared responsibility exists. Only BAM managemente decides about it.

• If recovery occurs later, the reimbursed amount must be returned proportionally.

• In case of confirmed non-payment, BAM will suspend the debtor and notify all members. Legal recovery may follow through FDRS, FR&AC, or similar.

Examples with value of rules:

• Claim: €12,000 → BAM covers max €1,500 × 6 = €9,000.

• Claim: €8,000 → 60% coverage = €4,800.

Affiliation:

• Valid upon signing and returning the Acceptance Form and paying the invoice.

• Applies from renewal or new membership date.

• Exceptions possible in favor of the creditor.

• Recognitions paid at year-end.