Freight Forwarding Agreement (India)
FREIGHT FORWARDING AGREEMENT
Indian Contract Act 1872 | Multimodal Transportation of Goods Act 1993
This Freight Forwarding Agreement ('Agreement') is entered into on [Agreement Date] between:
(1) [Client Name] (GSTIN: [Client GSTIN], IEC: [Client IEC Code]), having its address at [Client Address] ('the Client'); and
(2) [Forwarder Name] (GSTIN: [Forwarder GSTIN], CB Licence: [CB Licence No]), having its address at [Forwarder Address] ('the Forwarder').
1. APPOINTMENT AND SCOPE
1.1 The Client hereby appoints the Forwarder as its freight forwarding agent for a period of [Agreement Period] from the date of this Agreement.
1.2 Scope of Services: [Service Scope], including but not limited to: booking cargo space with carriers; issuing House Bills of Lading (HBL) or House Airway Bills (HAWB); arranging inland transport; coordinating customs clearance through the Forwarder's Licensed Customs Broker (CB Licence: [CB Licence No]) in accordance with the Customs Brokers Licensing Regulations 2018; filing Shipping Bills (exports) and Bills of Entry (imports) on ICEGATE; arranging Export General Manifest (EGM) and Import General Manifest (IGM) filing under the Customs Act 1962; and managing cargo insurance procurement (if instructed).
2. CLIENT OBLIGATIONS
2.1 The Client shall provide accurate and complete shipping instructions for each consignment, including: cargo description with HS code; gross weight and measurement; invoice value; export/import benefit schemes applicable; and any special handling or dangerous goods declaration (per IMDG Code for sea shipments or IATA DGR for air shipments).
2.2 The Client is responsible for the accuracy of all cargo declarations. The Client shall indemnify the Forwarder and its Customs Broker from all penalties, fines, or customs demands arising from incorrect, incomplete, or misleading shipping instructions provided by the Client under the Customs Act 1962.
3. CHARGES AND PAYMENT
3.1 The Forwarder shall invoice the Client for all forwarding charges (freight, THC, documentation fees, customs brokerage fees, inland transport) plus applicable GST at 18% under SAC 9965. Export forwarding services are zero-rated under Section 16 of the IGST Act 2017 if conditions are satisfied.
3.2 Payment Terms: [Payment Terms]. Overdue invoices shall carry interest at 18% per annum from the due date.
3.3 The Forwarder shall maintain a Port Disbursement Account (PDA) for each shipment, advance port charges on behalf of the Client, and provide a Final Disbursement Account with supporting vouchers within 15 days of shipment.
4. LIABILITY AND INDEMNITY
4.1 The Forwarder's liability for any loss or damage arising from its own negligence is limited to: [Liability Limit] (FIATA model rules). The Forwarder is not liable for: acts of carriers, port delays, force majeure, or any event outside the Forwarder's direct control.
4.2 The Forwarder is not liable for the acts of sub-agents, carriers, stevedores, or other third parties engaged in performing the services, unless the Forwarder is an MTO issuing a combined transport document under the Multimodal Transportation of Goods Act 1993.
4.3 The Client is advised to arrange adequate cargo insurance under the Marine Insurance Act 1963 for all shipments. The carrier's liability under the Hague Rules (COGSA India 1925) is limited to ₹100 per package.
5. TERMINATION AND GOVERNING LAW
5.1 Either party may terminate this Agreement by giving [Notice Period] written notice. Termination does not affect outstanding shipments in progress.
5.2 This Agreement is governed by the laws of India, including the Indian Contract Act 1872 and the Multimodal Transportation of Goods Act 1993. Disputes shall be resolved by arbitration under the Arbitration and Conciliation Act 1996.
Client Authorised Signatory
________________
Signature
Forwarder Authorised Signatory
________________
Signature
What Is a Freight Forwarding Agreement (India)?
A Freight Forwarding Agreement in India records the bargain between the parties, fixing their respective rights, duties and remedies.
The legal framework governing the Freight Forwarding Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Freight Forwarding Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Indian Contract Act, 1872 sets the foundational requirements.
When Do You Need a Freight Forwarding Agreement (India)?
A Freight Forwarding Agreement is needed by any exporter or importer in India who engages a freight forwarder on a regular basis for multiple shipments, and wishes to document the terms of the ongoing relationship — rates, service standards, liability, payment terms, and dispute resolution. It is particularly important for high-volume shippers and large importers who have negotiated specific rate agreements with the forwarder. It is also needed when the forwarder is acting as a Multimodal Transport Operator (MTO) under the Multimodal Transportation of Goods Act 1993 and issuing a combined transport document. Without a written Agreement, the forwarder's standard trading conditions (typically the FIATA model conditions or their own published tariff terms) apply by default, which may not adequately protect the cargo owner's interests.
Parties in India should prepare a Freight Forwarding Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Freight Forwarding Agreement (India)
A Freight Forwarding Agreement must include: parties (cargo owner and freight forwarding company, with GST registration and customs broker licence number); scope of services (booking, documentation, customs clearance, inland transport, insurance, warehousing); routing instructions and carrier selection authority; freight charges, surcharges, and disbursements — including BAS, CAF, THC, AMS, B/L issuance fees; invoicing and payment terms; credit facility (if any); GST treatment (18% on domestic forwarding; zero-rated for export forwarding); instructions for shipping — accuracy of cargo description, weight, dimensions, HS code; responsibility for misdeclaration and customs penalties; cargo insurance — whose obligation to arrange, coverage, insured value; liability of forwarder — cap per FIATA model rules or Multimodal Transportation of Goods Act 1993 (8.33 SDR per kg); force majeure; data protection (for shipment data shared with carriers, port authorities, customs); termination; dispute resolution (Arbitration and Conciliation Act 1996); governing law (Indian law, seat of arbitration specified).
Additional compliance elements for a Freight Forwarding Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Freight Forwarding Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/business/shipping/freight-forwarding-agreement-india
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year = {2026},
howpublished = {\url{https://forms-legal.com/india/business/shipping/freight-forwarding-agreement-india}},
note = {Free legal document template. Based on Indian Contract Act, 1872}
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Frequently Asked Questions
A freight forwarder in India acts as an intermediary between the cargo owner (shipper or consignee) and the various carriers and service providers (shipping lines, airlines, truckers, customs brokers, warehouses) involved in moving goods from origin to destination. The freight forwarder does not physically carry goods — they arrange the logistics chain on behalf of the cargo owner. The freight forwarder's role typically encompasses: booking cargo space with ocean carriers (shipping lines) or air carriers, issuing House Bills of Lading (HBL) or House Airway Bills (HAWB) to the cargo owner while back-to-back booking on the carrier's Master Bill of Lading (MBL) or Master Airway Bill (MAWB), arranging inland transport (road or rail) from factory to port or from port to consignee, handling customs clearance documentation (Shipping Bill for exports, Bill of Entry for imports), arranging cargo insurance, managing warehousing, and consolidating LCL (Less than Container Load) cargo. Legal framework: India does not have a standalone freight forwarding statute. The Multimodal Transportation of Goods Act 1993 governs Multimodal Transport Operators (MTOs) — entities that issue a combined transport document (Multimodal Transport Document or MTD) covering at least two modes of transport (e.g., road + sea). An MTO is registered with the DGFT under Section 3 of the Multimodal Transportation of Goods Act 1993. A freight forwarder acting as an MTO assumes carrier liability for the entire multimodal journey under the MTD.
Customs-related services form a central component of freight forwarding in India, given the complexity of India's customs procedures under the Customs Act 1962 and related regulations. Freight forwarders in India either have in-house Licensed Customs Brokers (LCBs) or partner with LCBs to provide end-to-end customs clearance services. Customs Broker Licence: Under the Customs Brokers Licensing Regulations 2018 (CBLR 2018), a person who transacts customs business on behalf of another person for a fee must hold a licence as a Customs Broker (CB) issued by the Principal Commissioner of Customs. The CBLR 2018 prescribes eligibility conditions (qualification, examination, fit and proper character assessment) and specifies the duties and obligations of CBs — particularly the obligation to conduct due diligence on clients' documents and to not mis-declare goods. Violation of CBLR 2018 can result in suspension or revocation of the CB licence. Export Customs Clearance: The freight forwarder (through the LCB) assists the exporter in filing the Shipping Bill on ICEGATE (the customs electronic portal). The Shipping Bill is an electronic document that declares the exported goods' description, quantity, value, ITC-HS code, port details, and applicable export benefit schemes (RoDTEP, EPCG). After physical examination (if ordered by customs) and 'Let Export Order' (LEO) from the customs officer, the goods are loaded on the vessel/aircraft.
Freight forwarding services in India have complex GST implications that vary depending on the mode of transport, the origin and destination of the goods, and the role of the freight forwarder (agent vs. principal). GST Rate on Freight Forwarding: Freight forwarding services (arranging transport of goods) are classified under SAC 9965 (Goods Transport Services). The standard GST rate for air freight forwarding and road freight forwarding is 18% (CGST 9% + SGST 9%, or IGST 18% for inter-state services). However, for goods transport by road (GTA — Goods Transport Agency), a special rate of 5% with no ITC applies under Notification 11/2017-CT(R) as amended; or 12% with ITC if the GTA opts into the regular rate. Zero-rating for exports: Services supplied by a freight forwarder to an exporter for transport of goods from India to abroad (export freight) are zero-rated under Section 16(1)(a) of the IGST Act 2017 — they qualify as 'export of services' (the freight forwarder is located in India, the place of supply is outside India under Section 13 of the IGST Act). The freight forwarder can export without GST and claim ITC refund, or charge zero GST with a Letter of Undertaking (LUT). Import freight: Ocean freight and air freight on imports into India was subject to GST under the Reverse Charge Mechanism (RCM) for importer-of-goods until 2021. However, the Supreme Court in Mohit Minerals Pvt. Ltd. v.
A Freight Forwarding Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Indian Contract Act, 1872 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Freight Forwarding Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Indian Contract Act, 1872, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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