Diamond Fund:
Every SGN Member is required to participate in the SGN Diamond Fund at a
cost of USD 500 per annum which covers all the Members' registered offices
in that country.
SGN demands high integrity when it comes to debt settlement between its
members. Thus, SGN has created its own unique SGN Diamond Fund (SDF)
procedures.
The USD500 contribution to the Diamond Fund is per 12 month paid membership and the fund remains under the control/ownership of SGN and is not the members funds.
If a member leaves SGN there is NO refund on membership fee or SDF contributions.
The other important rule is that any member reported for tardy payments up to 3 times may be terminated under the “3 TIMES ALERTING THEN YOU ARE OUT” rule.
There will be no membership fee refunds if this action is needed.
The USD500 contribution to the Diamond Fund is per 12 month paid membership and the fund remains under the control/ownership of SGN and is not the members funds.
If a member leaves SGN there is NO refund on membership fee or SDF contributions.
The other important rule is that any member reported for tardy payments up to 3 times may be terminated under the “3 TIMES ALERTING THEN YOU ARE OUT” rule.
There will be no membership fee refunds if this action is needed.
The main policies of the SGN Diamond Fund can be summarized as follows:
a)
SGN expects all members to pay their debts by no later than the end of
the month following the invoice date. For example, a May 15th invoice
should be settled by latest June 30th. Exceptions are when members have
previously agreed, in writing, to a different payment schedule or when
the debt involves ocean freight with long transit times. Payment should
NOT be dependent on collection from consignees as this is at the sole
option/discretion of the members themselves.
b)
Any debts in excess of the terms MUST be reported to SGN when they
become 15 days past SGN terms (in the above example, July 15th). SGN
will distribute a mid-month email reminder on the 15th of every month.
If not reported by the 7th day (the 22nd), these debts will NOT be
eligible for recovery from the SGN Diamond Fund. Whenever a delinquent
debt is reported, SGN will intervene to assist in collection including
broadcasting details to other SGN Members, placing that member on Hold
Status and termination in the event of on-going or multiple
delinquencies. If SGN is unable to collect this debt within a reasonable
timeframe, it will be settled by the SGN Diamond Fund to the extent
specified below.
c)
SGN will pay out a maximum of an aggregate of the higher of USD 25,000
per claim (to a maximum of 75% of the fund balance in the unlikely event
that we have a multitude of claims), pro rata to the amounts owed
(Example: If one SGN Member is owed $20,000 and another $15,000 for a
total of USD 35,000, they will be paid $14,290 (20K/35K * 25K) and
$10,714 (15K/35K * 25K) respectively). Payments from the fund that are
USD 500 or below will be paid by way of a credit note that can be used
only against future membership fees, this is to avoid incurring wire
fees on small amounts i.e USD 300 might incur a 15% wire fee at both
ends and does not make for a viable business decision as payment is
eroded by fees.
d)
Should any member have access to any other means of full or partial
recovery via receivable insurance coverage, sale of freight or even
being a participant in another network offering receivable coverage, SGN
will assume a secondary position. Any claim will be subject to endorsing
the relevant debt over to SGN.
e)
All delinquent debts will be (i) announced to SGN Members, (ii) reported
to Freight Deadbeats for their independent collection action and
reporting (with associated collection fees being paid by the SDF). Only
upon Freight Deadbeats reporting back about the status of recovering
this debt, shall payment from the Signature Diamond Fund be approved by
SGN. All significant and disputed issues shall also be referred to the
Member Advisory Council for their input.
f)
It specifically excludes any debts resulting out of operational
disputes/mistakes - for such events every member of SGN is requested to
have forwarders liability insurance!
g)
The SGN Diamond Fund shall ONLY be used for delinquent and bad debts
when SGN is unable to recover monies on behalf of a member. It
specifically excludes operational disputes/mistakes. Those
delinquent/bad debts pertains only to general freight/heavyweight
freight, but excludes any transactions under PROJECT, HEAVYLIFT,
PERISHABLE, HAZARDOUS, DANGEROUS, FIRE-ARMS, COLD CHAIN, LIVE ANIMALS,
BULLION or BANK NOTES and other NICHE COMMODITIES due to the potential
for very large amounts of monies to be exposed and/or potential for
damages due to the need for focused “white glove” handling and detailed
paperwork requirements that very few general freight forwarders can
accommodate. Members should agree on credit terms on a
shipment-by-shipment basis.
h)
In order to facilitate transactions between SGN Members, the SGN Diamond
Fund shall also be used to guarantee initial transactions between
members up to USD 5,000 in order to allow/establish Open Account Credit
status to be granted between members. This ruling allows a seamless 1st
transaction credit agreement on initial activity, BUT any default in
payment must be reported to SGN under the rules of the Diamond Fund.
SGN’s initial $5,000.00 guarantee is to facilitate initial 1st shipment
process between new members.
i)
*Important* Members who claim against the fund for legitimate reasons,
but also include bad debt from dates outside our mandatory Diamond Fund
timelines, will not be considered for payment for either existing or old
debt. Because you are in non-compliance with the older debt, SGN will
not accept any of the debt rendered. Non-compliance with our timelines
means no claim is possible by our members.
j)
Force Majeure: SGN adopts Force Majeure policy that frees us from
liability or obligation when an extraordinary event or circumstance
beyond our control, such as war, sanctions, strikes, riot, crime or an
event described by the legal term “Act of God” (such as hurricanes,
flooding, earthquakes, volcanic eruption). Force Majeure is NOT intended
to excuse negligence – as where non-performance is caused by usual and
natural consequences of external forces.
k)
Claims against the SGN Diamond Fund only includes physical
transportation costs and does not include any debt/claim pertaining to
Import duties or taxes at destination.
l)
SGN is not responsible for any errors involving transfer of funds for
member-to-member payments. For your guidance, SGN takes the stance that
the SENDER is 100% responsible for the funds being received at the
receiving members’ bank. Please be aware of these bank scams and
scammers illegally getting into your email system. If your staff member
has any doubt, pick up the telephone and call the receiving member key
person. DO NOT send emails, always use the telephone.
j)
Offices that were not registered in membership won't be counted as
qualified to the SGN Diamond Fund.
