Certification program may boost credibility of freight forwarders.

A planned, first-ever certification program for international freight forwarders should increase the industry's credibility, sources say.

"It will bring a much-needed level of integrity to the industry," said Jeff Coppersmith, vice president of L.E. Coppersmith Inc., a Mid-Wilshire-based freight forwarder.

The National Customs Brokers & Freight Forwarders Association of America, a New York-based trade group, plans to begin administering voluntary tests beginning in mid-1995 so freight forwarders can become designated by the association as Certified Ocean Forwarders.

Freight forwarders are responsible for packing exporters' goods and arranging for trucks to pick them up and deliver them to docks or airports. Then they arrange to load the cargo on ships or planes, as well as handle the documentation needed if the goods are to leave the country.

When the goods reach their destination, freight forwarders ensure the goods are delivered to the buyer. Some freight forwarders are also carriers that own ships, planes or trucks, while others specialize in freight forwarding only.

Those who want to become freight forwarders must be licensed by the Federal Maritime Commission, established by Congress to regulate the ocean shipping industry. To be issued a license, a potential freight forwarder must be a U.S. citizen and must not have committed any felonies, said Lew Coppersmith, president of L.E. Coppersmith and Jeff Coppersmith's father.

They must also have three years of "freight-forwarding-related" experience, said Frederick Soencksen, spokesman for the Federal Maritime Commission. This experience can be achieved by working for a carrier, which operates ships, or an already licensed freight forwarder, he said. However, there is no test they must pass, he said.

In comparison, customs brokers must pass a rigorous exam to become licensed, Lew Coppersmith said.

An exam administered by the U.S. Customs Service tests a potential customs broker's knowledge of customs law and ability to represent importers in the customs process, Lew Coppersmith said. Customs brokers must also be U.S. citizens and must not have a felony record.

Customs brokers clear imported freight through the U.S. Customs Services. Customs brokers are similar to freight forwarders in that they both deal with governmental regulations and both are paid by their clients to handle their cargo.

Since freight forwarders do not have to pass a test to become licensed, their qualifications vary and they sometimes make mistakes when they declare exports to customs. They may incorrectly describe the products, miscalculate their value or not know whether the products need to be licensed, Coppersmith said. A declaration describes the merchandise being exported and gives its value and origin.

But Soencksen said the Federal Maritime Commission hasn't had complaints from exporters regarding freight forwarders who are incompetent.

Nevertheless, the National Customs Brokers & Freight Forwarders Association plans to soon begin certifying freight forwarders by having them pass a test.

Once freight forwarders pass the test, they will be generally recognized as capable freight forwarders and will know about the various requirements that enable them to do their job, said Brenda Stringfield, president of the Los Angeles Customs Brokers & Freight Forwarders Association, a local trade group with about 200 members.

"It will create a standard against which their abilities can be measured," she said.

Even though freight forwarders are currently required by the Federal Maritime Commission to have three years of experience, there is no guarantee they learned all they need to know through that experience, Stringfield said.

"For years there has been some concern in our industry about how we get people properly trained," added Michael Dugan, president of the National Customs Brokers and Freight Forwarders Association.

"This (certification) will quantify everything with a well though out training program so hopefully they'll be exposed to all areas" of the business, he said.

A committee formed by the National Customs Brokers and Freight Forwarders Association has put together a study guide for the test, although the test itself is not finalized, said Diane Eicher, cotton supervisor with L.E. Coppersmith and a committee member.

Gauging by the contents of the study guide, the exam will test freight forwarders' knowledge of industry terminology, ability to route cargo and quote freight rates, and knowledge of various bills of lading, Eicher said. A steamship line issues a bill of lading to an exporter to prove that it received its cargo and that it will bring it to the specified destination.