Having viewed the Territories and Fees section of the website to determine whether the CQR territory corresponding to his city is available, the freight forwarder wishing to join CQR will complete and return the Membership Application form, and will supply all the data and additional documents that may be specified. If selected as a potential member, the applicant will complete and return 1) the Membership Agreement (signed and stamped), and the Local Charges form.
4.1. Screening of Applicants
4.1.1. Verification: The CQR Organization may use DUN & BRADSTREET or other independent credit risk assessor to supply a financial report for the purpose of corroborating the financial data supplied as part of the membership application procedure, and confirming that the applicant firm is stable and solvent. The risk assessor will be asked to propose a reasonable credit risk limit for each applicant. In the event that the applicant is admitted as a member, this credit risk limit will be published on the CQR Intranet where it may be viewed solely by other members and the CQR Organization. Credit risk may exceed the displayed limit only when the two parties agree in writing, and under their own exclusive responsibility.
4.1.2. Financial Ratios: Applicants' liquidity and solvency positions should meet the following standards:
Liquidity ratio = (A/B + C/D) / 2 = the result should be equal or superior to 1.
(A = Current Assets YEAR-2 (includes cash, equivalents, accounts receivable, inventories, prepaid expenses). B = Current Liabilities YEAR-2 (includes bank loans and notes payable, long term debt due;1 year, accounts payable, taxes payable, wages, salaries, bonuses payable). C = Current Assets YEAR-1 (includes cash, equivalents, accounts receivable, inventories, prepaid expenses). D = Current Liabilities YEAR-1 (includes bank loans and notes payable, long term debt due 1 year, accounts payable, taxes payable, wages, salaries, bonuses payable)).
Gearing ratio = (A/B + C/D) / 2 = the result should be equal to or less than 2.
(A = Medium and Long Term Debt YEAR-2 (Due 1 Year). B = Owners Equity YEAR-2 (Include shares/stock value, additional contributed capital, retained earnings and reserves). C = Medium and Long Term Debt YEAR-1 (Due; 1 Year). D = Owners Equity YEAR-1 (Include shares/stock value, additional contributed capital, retained earnings and reserves).
4.1.3 Insurance: Coverage by Errors and Omissions and Freight Service Liability insurance, as detailed below, is optional but highly recommended:
18.104.22.168. Insured Services:
- Freight Forwarder acting as Agent (Road, Sea and Air)
- Freight Forwarder acting as Principal (Road, Sea and Air)
- Non Vessel Operating Cargo Carrier (NVOCC)
22.214.171.124. Trading Areas: Worldwide
126.96.36.199. Limit of Liability:
- Errors and Omissions minimum coverage limit: 50,000 USD per incident or occurrence
- Freight Service Liability minimum coverage limit: 200,000 USD per incident or occurrence
4.2. Notification and Admission:
4.2.1. Notification: The CQR Organization will decide on new applications and notify the applicant of its decision in writing within approximately 15 days.
4.2.2. Membership Agreement: In the event that an application is approved, this notification will be accompanied by a Membership Agreement which the applicant will sign, stamp, and return to the CQR Organization.
4.2.3. Payment Protection Plan (PPP): A space is provided on the membership application form for the applicant to indicate whether or not he/she chooses to participate in the PPP.
4.2.4. Admission: Upon receipt of the duly signed and stamped Membership Agreement, the CQR Organization will admit the new member which will thenceforth hold exclusive rights to operate as a CQR member in the city and/or territory assigned by CQR as long as it meets its obligations as set forth in the Membership Agreement and Rules and Procedures. All existing members will be notified of the admission of the new member.
4.2.5. Listing: An Agent Profile of each member will be published in the Agent Finder section of the password-protected CQR Intranet, and will be accessible to other members. This listing will include the member's trading name, location, contact details, bank details, local charges, and recommended credit risk limit, along with other pertinent information, such as any special capabilities or services offered.