Australia, Canada and Great Britain
Submit the original and three copies of the survey report to the Headquarters Office of the CI member who procured the food within 45 days of discharge. The CI member should forward the survey report to the donor.
European Union through Euronaid
Euronaid insures all goods from the moment they are taken over by Euronaid, up to the moment of delivery of the goods to CARE's main warehouse facility. The purpose of Euronaid insurance is to protect NGOs against financial consequences of shortages, damages or other misfortunes during the transport of goods. CARE will receive an insurance certificate which states the conditions of the insurance. The CARE country office should review the insurance certificate in order to understand the coverage terms. Country offices are expected to cooperate with underwriters when taking custody of the food.
Country offices must:
Upon receipt of the survey report and the claim lodged by CARE, the insurance company will assess the amount of the damages and/or losses sustained. Euronaid double checks the calculations and a small recovery fee is deducted for the insurer.
Following acceptance of the assessment by Euronaid, the settlement amount will be credited to the Euronaid Finance Division. Euronaid will then transfer any amounts due CARE to the country office. Claims are usually settled quarterly, however, approval of the claims by insurers can more than a year.
It is a requirement of the CEC that the funds obtained from claims collection are utilized for the purchase of food for the same program. Deviation from this must be authorized by the CEC.
When Euronaid transfers the amount received in settlement of the claim to the CARE country office, the following documents are provided: a payment slip, a claim advice and a report on “Use of Refunds from Underwriters for Losses/Short weights/Damages of Food Aid Supplied by the CEC.”
Country offices are also required to submit to the CEC a report specifying the use of claim amounts, to be received no later than six months after the amount has been credited to the account.
Title to U.S. government food passes to CARE, unless agreed otherwise, as follows:
Claims against shipping companies may be initiated for Title II, Section 416 and Food for Progress food once title passes to CARE and the shipping company is issued the Bill of Lading.
Claims must be filed against a shipping company for every marine loss EXCEPT:
The CARE country office submits the original plus two copies of the Independent Survey Report to the HQ Procurement office within 30 days of discharge.
Once a discharge survey report is submitted to a country office that establishes there are marine losses, country offices must begin the process of filing, pursuing and collecting claims against shipping companies.
As CARE may be reimbursed for administrative expenses for claims filed against shipping companies, CARE Finance has established procedures which country offices must follow as claims are being pursued.
The Procurement Office and CARE USA's shipping agent are primarily responsible for pursing marine claims against shipping companies and filing all reports and documents related to marine claims with AID and USDA.
They are also responsible for all communications with country offices regarding additional documentation required for the handling, processing and settlement of marine claims.
One claim should be filed for each voyage of the same vessel to the same port of discharge. If different types of food are shipped on the same ship and there is more than one Bill of Lading, still file only one claim against the shipping company. The claim will take into account the entire shipment.
Unless otherwise required by the donor, the monetary value of ocean claims can be computed using the following calculation:
The following are additional costs to CARE which may be included in the claim:
As specified in the CARE Overseas Finance Manual, CARE must assign all marine losses relating to food a claim number in order to track them. Claim numbers are to be assigned as follows: MA - two digit country number - four digit sequential number starting with 0001 for each claim. For example, the 41st claim for CARE-Haiti would be MA - 46 - 0041.
For losses in excess of US$300, a Notice of Protest must be filed with the shipping company within 72 hours after completion of discharge of short or damaged shipments indicating that a loss has been determined and that the company is being held responsible.
The notice should include:
Country offices must submit the original and three copies of the discharge survey report by numbered, transmittal letter to the Procurement Office at CARE USA Headquarters within 45 days of discharge. The Procurement Office and CARE’s shipping agent will forward the report along with other documentation to AID and USDA.
Along with the Discharge Survey Report, country offices must also submit a Loss Advice in quadruplicate to the Procurement Office.
The report must contain :
Loss Advice Information
The Claims Progress Memo is a report of progress being made in the settlement of marine claims. It must be submitted to the Procurement Office, in quadruplicate, by numbered letter, after any event which relates to a previously reported loss. Upon receipt of the Claims Progress Memo the amount of food previously reported in the Loss Advice will be adjusted based on the new information.
Claims Progress Memos are to be numbered consecutively, by country, in serial number sequence.
The following Table summarizes the documents that must be submitted to the Procurement Office. There should be an original and three copies, and any documents not in English must be accompanied by English translations.
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