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Untitled Document
Regulations on forwarding agency in the Rason economic and trade zone

Adopted by Decision No. 27 of the Cabinet on March 21, 1999

Article 1. These regulations are formulated to offer convenience to the shippers who carry the cargoes of a foreign country to a third country via the Rason economic and trade zone, and ensure proper transportation of transit cargoes.
Article 2. Forwarding agent’s activities for foreign shippers (hereinafter called the agent’s activities) shall include acceptance, dispatch, arrangements for handling and storage, customs clearance, inspection and quarantine, settlement of costs, dealing with mishaps, arrangement of transport and the like, for transit cargoes on the foreign shipper’s consignment.
Article 3. An external transportation organ in the Rason economic and trade zone (hereinafter called the Zone) may open forwarding agencies for foreign shippers (hereinafter called the forwarding agencies) at cross-border transit points in the Zone, sea ports and airports, and engage in agent’s activities.
Article 4. A uniform control and guidance over agent’s activities shall be undertaken by the City People’s Committee in the Zone (hereinafter called the Zone Administration).
Article 5. These regulation shall be applied to forwarding agencies and foreign shippers.
Article 6. An organ intending to open a forwarding agency shall file an application for that purpose to the body that screens the establishment of an enterprise (hereinafter called the screening body).
The application for the opening of the forwarding agency shall specify such particulars as name of the applicant and forwarding agency, domicile, motive of establishment and details of agent's activities, and shall be accompanied by a letter of intent from a foreign shipper for the said activities.
Article 7. Screening body shall review and approve or reject the application for the opening of the forwarding agency within 30 days from receipt of the application.
Upon approval, a document of approval shall be issued of the establishment of the forwarding agency.
Article 8. A forwarding agency shall be registered with the Zone Administration.
For registration of the forwarding agency, an application shall be tendered for that purpose.
The application shall specify such details as name and domicile of the forwarding agency, name of the chief and the number of staff, etc., and shall be accompanied by a copy of the letter of approval of the opening of the forwarding agency.
Article 9. The Zone Administration shall examine the application for such registration within 10 days from its receipt and issue a certificate of registration of the forwarding agency or reject its registration.
When the registration of the forwarding agency has been completed, a fixed commission shall be allowed on its service.
Article 10. A forwarding agency shall conclude an agent’s contract with the foreign shipper.
The agent’s contract shall provide for names of the contracting parties, date of the contract, the details of agent’s activities, obligations of the foreign shipper, obligations of the forwarding agency, ways of transshipment of cargoes, costs and ways of their settlement, delivery of documents and ways of communication, ways of dealing with mishaps, sanctions, settlement of dispute, term of contract and other relevant particulars.
Article 11. Where a forwarding agency intends to transship cargoes by any appropriate means of transportation, it shall be notified by the shipper of such details as are necessary for filling in the bill of lading or the invoice 5 days before transshipment.
Article 12. A forwarding agency shall enter into relevant contracts with the cargo handler, the storekeeper and the carrier.
The said contract shall provide for the following:
1. A contract with the cargo handler shall include description and quantity of cargo, types of cargo-handling jobs, types of packing, unit weight, name of transportation means, estimated date of arrival, dates and hours for commencement and completion of work, cargo-handling costs, handling precautions and other necessary provisions,
2. A contract with the storekeeper shall include a description and quantity of the cargo, types of packing, unit weight, date of arrival, period of storage, cost for storage, precautions and other necessary provisions, and
3. A contract with the carrier shall include a description and quantity of the cargo types of packing, unit weight, unit capacity (volume), places of origin and destination, pass-through points, the consignor and the consignee, the types and the required number for each type of the transportation means, the period of transport, cost, precautions and other necessary provisions.
Article 13. A written request or declaration relating to cargo-handling jobs, storage and transportation submitted by the forwarding agency may substitute the contract, subject to consultation with the cargo handler, storekeeper and the carrier.
Article 14. Where a forwarding agency intends to forward any transit cargo by rail or by air, it shall submit a monthly document of request for carriage to the railway carrier and a declaration of the transit cargo to the airport, in each case by the 20th day of the month preceding the one in which transport is to be started.
Article 15. Where a foreign shipper intends to send transit cargo by his own vehicles, he shall obtain a Zone-crossing card and vehicle pass either directly or through the forwarding agency 5 days prior to the crossing of the border.
Article 16. Such cargoes as are inadmissible to the territory of the DPRK or prohibited internationally shall not be transshipped.
Article 17. Upon arrival of the cargo at a given transit point, a forwarding agency shall receive a way-bill from the carrier, confirm the state of the load, place the cargo under custody of the storekeeper, and have a certificate of storage.
Article 18. Where a forwarding agency intends to forward a cargo, which has been placed under custody, to any foreign shipper, it shall take over the cargo by submitting to the storekeeper the certificate of storage and the delivery request cleared by the customs.
Article 19. A forwarding agency shall receive such necessary documents as the bill of lading or the invoice from the carrier as soon as the loading work is over, and deliver them to the foreign shipper.
Article 20. The quantity of transit cargo loaded or unloaded shall be as tallied by the relevant organ of the DPRK.
Article 21. In the event that any mishap occurs in relation to the transit cargo, the forwarding agency shall send a prompt notice to the foreign shipper.
The foreign shipper shall, as soon as possible, notify the forwarding agency of his instructions as to the appropriate measures for mishap handling.
Article 22. A forwarding agency shall prepare the statement about the mishap of transit cargo and send it to the foreign shipper together with the support document issued by a relevant organ.
Article 23. Any transit cargo in excess of the quantity stated in the document shall be disposed of by the forwarding agency, subject to consultation with the foreign shipper and the approval of the customs.
Article 24. A forwarding agency may get the transit cargo inspected and quarantined by the relevant organ at the request of the foreign shipper.
The inspection and quarantine shall be done at the place of loading or unloading.
Upon quarantine inspection of the transit cargo, the organ concerned shall issue the relevant document.
Article 25. A forwarding agency shall promptly notify the foreign shipper of any issue arisen in the course of inspection and quarantine.
Article 26. Settlement of the cost of cargo handling shall be made between the organ concerned and the forwarding agency.
Upon settlement of such cost with the organ concerned, the forwarding agency shall prepare and send a bill to the foreign shipper.
Article 27. The rate of fee and the norm of labour concerning the handling of transit cargo shall be determined by the relevant organ.
Article 28. Fees concerning the handling of transit cargo shall be calculated in Korean won.
Foreign currency shall be converted into Korean won, subject to the exchange rate quoted by the foreign exchange bank of the DPRK in the Zone based on the international price of the said currency prevailing at the given period of time.
Article 29. The foreign shipper shall pay to the forwarding agency such fees for transport and handling of transit cargo as are prescribed in the agent’s contract.
Article 30. Any dispute arising in connection with the agent’s activities shall be settled between the parties concerned through consultation.
Any disagreement in consultation shall be referred to a court or an arbitration body of the DPRK for settlement.
Article 31. In case of violation of these regulations, administrative penalties including fine shall be imposed to the extent of breach, and criminal punishment in case of severe breach.

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