General Conditions ofCarriage for Cargo
REV 02
Effective Date: 2019/07/16

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II

TABLE OF CONTENTS
Effective Date: 2019/07/02 ................................................................................ I
Article 1- Definitions ......................................................................................... 4
Article 2- Applicability ....................................................................................... 6
2.1

General ..................................................................................................... 6

2.2

Applicable Laws and Carrier’s Tariffs ........................................................ 6

2.3

Application to United States and Canada .................................................. 7

2.4

Gratuitous Carriage ................................................................................... 7

2.5

Charters .................................................................................................... 7

2.6

Change Without Notice ............................................................................. 8

2.7

Effective Rules .......................................................................................... 8

Article 3- Acceptability of Goods for Carriage .................................................. 8
3.1

Cargo Acceptable ...................................................................................... 8

3.2

Valuation Limit of Shipment ....................................................................... 9

3.3

Packing and Marking of Cargo .................................................................. 9

3.4

Special Cargo.......................................................................................... 10

3.5

Responsibility for Non-Observance of Conditions relating to Cargo ......... 10

3.6

Carrier’s Right of Inspection .................................................................... 10

3.7

Unit Load Devices ................................................................................... 10

3.8

Carriage of Perishables or Temperature Sensitive Cargo ........................ 11

3.9

Dangerous Goods ................................................................................... 11

3.10

Compliance with Laws and Regulations .................................................. 11

Article 4-Documentation................................................................................. 12
4.1

Air Waybill ............................................................................................... 12

4.2

Shipment Record..................................................................................... 12

4.3

Apparent Condition/Packing of the Cargo ................................................ 12

4.4

Preparation, Completion or Correction by Carrier .................................... 13

4.5

Responsibility for Particulars ................................................................... 13

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4.6

Alterations ............................................................................................... 14

Article 5- Rates and Charges ......................................................................... 14
5.1

Applicable Rates and Charges ................................................................ 14

5.2

Basis of Rates and Charges .................................................................... 14

5.3

Services Not Included in Published Rates and Charges .......................... 14

5.4

Payment of Charges................................................................................ 15

5.5

Carrier's General Lien ............................................................................. 16

Article 6- Shipments in Course of Carriage .................................................... 17
6.1

Compliance with Government Requirements........................................... 17

6.2

Disbursements and Customs Formalities ................................................ 17

6.3

Schedules, Routings and Cancellations .................................................. 18

6.4

Certain Rights of Carrier over Shipment in Course of Carriage................ 19

Article 7-Shipper’s Right of Disposition .......................................................... 20
7.1

Exercise of Right of Disposition ............................................................... 20

7.2

Shipper’s Option ...................................................................................... 20

7.3

Payment of Expenses ............................................................................. 21

7.4

Extent of Shipper’s Right ......................................................................... 21

Article 8- Delivery ........................................................................................... 22
8.1

Notice of Arrival ....................................................................................... 22

8.2

Delivery of Shipment ............................................................................... 22

8.3

Place of Delivery ..................................................................................... 22

8.4

Failure of Consignee to Take Delivery ..................................................... 23

8.5

Disposal of Perishables ........................................................................... 23

8.6

Responsibility for Charges....................................................................... 24

Article 9- Pick-up and Delivery Services ........................................................ 24
9.1

Shipments ............................................................................................... 24

9.2

Availability of Service .............................................................................. 24

9.3

Request for Service ................................................................................. 25

9.4

Shipment for which Service is Unavailable .............................................. 25

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9.5

Liability .................................................................................................... 25

Article 10- Authority and Indemnity of Shipper ............................................... 25
10.1

Authority .................................................................................................. 25

10.2

Indemnity ................................................................................................ 26

Article 11- Successive Carriers ...................................................................... 26
Article 12- Carrier’s Liability ........................................................................... 26
12.1

General ................................................................................................... 26

12.2

Exclusion of Liability ................................................................................ 26

12.3

Limitation of Liability ................................................................................ 27

12.4

Public Authorities and Other Events Beyond the Carrier's Control ........... 27

12.5

Inherently Defective Cargo ...................................................................... 27

12.6

Animals ................................................................................................... 28

12.7

Consequential Loss ................................................................................. 28

12.8

Contributory Negligence .......................................................................... 28

12.9

Applicable Weight.................................................................................... 28

12.10 Indemnity ................................................................................................ 29
12.11 Liability of Other Carrier........................................................................... 29

Article 13- Limitations on Claims and Actions ................................................ 30
13.1

Receipt of Cargo ..................................................................................... 30

13.2Time Limits on Complaints ...................................................................... 30

13.3Time Limits on Action .............................................................................. 30

Article 14- Overriding Law .............................................................................. 31
Article 15- Modification and Waiver................................................................ 31

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Article 1- Definitions
1.1 “AGENT” means except when the context otherwise requires, any person
who has authority, express or implied, to act for or on behalf of the CARRIER
in relation to CARRIAGE unless that person is acting as agent on behalf of the
SHIPPER or CONSIGNEE with respect to a SHIPMENT governed by these
conditions.
1.2 “AIR WAYBILL”, which is equivalent to the term “air consignment note”
means the document entitled “Air Waybill/Consignment Note” made out by oron behalf of the SHIPPER, which evidences the contract between the
SHIPPER and CARRIER for CARRIAGE over routes of the CARRIER andmaybe in either paper or electronic format.
1.3 “APPLICABLE CONVENTION” means whichever of the following
instruments is applicable to the CARRIAGE:(1) the Convention for the Unification of Certain Rules Relating toInternational Carriage by Air, signed at Warsaw, 12 October 1929;(2) the Warsaw Convention as amended at The Hague on 28 September
1955;(3) the Warsaw Convention as amended by Additional Protocol No. 1 ofMontreal 1975;(4) the Warsaw Convention as amended at The Hague 1955 and by
Additional Protocol No. 2 of Montreal 1975;(5) the Warsaw Convention as amended at The Hague 1955 and by
Protocol No. 4 of Montreal 1975; and(6) the Convention for the Unification of Certain Rules for International
Carriage by Air, done at Montreal on 28 May 1999.
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1.4 “CARGO” (which is equivalent to the term “GOODS”) means anything
carried or to be carried in an aircraft except mail, or baggage carried under apassenger ticket and baggage check, but includes baggage moving under an
AIR WAYBILL or a SHIPMENT RECORD.
1.5 “CARRIAGE” (which is equivalent to the term “transportation”) means the
CARRIAGE of CARGO by air or by any other means of transportation, whether
gratuitously or for reward.
1.6 “CARRIER” includes the air carrier who issued the AIR WAYBILL orpreserved the SHIPMENT RECORD and all carriers that carry or undertake tocarry the CARGO or to perform any other services related to such CARRIAGE.
1.7 “CHARGES COLLECT” means the charges entered on the AIR WAYBILL
or SHIPMENT RECORD for collection from the CONSIGNEE against deliveryof the SHIPMENT.
1.8 “CONSIGNEE” means the person whose name appears on the AIR
WAYBILL or SHIPMENT RECORD as the party to whom the SHIPMENT is tobe delivered by the CARRIER.
1.9 “DAYS” means full calendar days, including Sundays and legal holidays;
provided that for purposes of notification the balance of the day upon whichnotice is dispatched shall not be counted.
1.10 “DELIVERY SERVICE” means the surface CARRIAGE of inbound
SHIPMENTS from the airport of destination to the address of the CONSIGNEE
or that of his designated agent or to the custody of the appropriate government
agency when required,1.11 "EDI" means electronic data interchange.
1.12 “PICK-UP SERVICE” means the surface CARRIAGE of outbound
SHIPMENTS from the point of pickup at the address of the SHIPPER or that ofhis designated agent to the airport of departure, including any incidental

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surface carriage between airports.
1.13 “SHIPMENT” (which is equivalent to the term “consignment”) means,
except as otherwise provided herein, one or more packages or pieces orbundles of CARGO accepted by the CARRIER from one SHIPPER at one
address, receipted for in one lot and under a single AIR WAYBILL or a single
SHIPMENT RECORD, for CARRIAGE to one CONSIGNEE at one destination
address.
1.14 “SHIPMENT RECORD” means any record of CARRIAGE preserved by
the CARRIER, evidenced by means other than an AIR WAYBILL.
1.15 “SHIPPER” (which is equivalent to the term “consignor”) means the
person whose name appears on the AIR WAYBILL or SHIPMENT RECORD as
the party contracting with the CARRIER for CARRIAGE.

Article 2- Applicability

2.1 General
These conditions shall apply to all CARRIAGE, including all services incidental
thereto, performed by or on behalf of the CARRIER; provided however that if
such CARRIAGE is “International Carriage” as defined in the APPLICABLE
CONVENTION such CARRIAGE shall be subject to the provisions of the
APPLICABLE CONVENTION and to these conditions to the extent that these
conditions are not inconsistent with the provisions of such APPLICABLE
CONVENTION.
2.2 Applicable Laws and Carrier’s Tariffs
To the extent not in conflict with Article 2.1 all CARRIAGE and other services
performed by the CARRIER are subject to:(1) Applicable laws (including national laws implementing the APPLICABLE

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CONVENTION or extending the rules of the APPLICABLE CONVENTION to
CARRIAGE which is not “International CARRIAGE” as defined in the
APPLICABLE

CONVENTION),

government

regulations,ordersandrequirements;(2) These conditions and other applicable tariffs, rules, regulations andtimetables (but not the times of departure and arrival therein specified) of the
CARRIER which may be inspected at any of its offices and at airports fromwhich it operates regular services.
(3) Where the CARRIER has entered into an e-freight agreement for
CARRIAGE using EDI with a freight forwarder (as the SHIPPER or as agent
for the Shipper) or the SHIPPER, and that person has issued a SHIPMENT
RECORD for a shipment, the terms and conditions of that EDI agreement.
2.3 Application to United States and Canada
These conditions do not apply to CARRIAGE between places in the UnitedStates or in Canada or between a place in the United States or in Canada andany place outside thereof to which tariffs in force in those countries apply. The
tariffs applicable to such CARRIAGE are available for inspection at offices of
the CARRIER.
2.4 Gratuitous Carriage
With respect to gratuitous CARRIAGE, the CARRIER reserves the right toexclude the application of all or any part of these conditions.
2.5 Charters
With respect to CARRIAGE performed pursuant to a charter agreement with
the CARRIER, such CARRIAGE shall be subject to the CARRIER’s charter
tariffs applicable thereto (if any) and these conditions shall not apply except tothe extent provided in said charter tariffs. Where the CARRIER has no charter
tariffs applicable to such charter agreement these conditions shall apply to7such agreement except the CARRIER reserves the right to exclude theapplication of all or any part of these conditions and, in case of divergence
between the applicable provisions of these conditions and the conditions
contained or referred to in the charter agreement, the latter shall prevail andthe SHIPPER, by accepting CARRIAGE pursuant to a charter agreement,
whether or not concluded with the SHIPPER, agrees to be bound by theapplicable terms thereof.
2.6 Change Without Notice
These conditions and the published rates and charges are subject to change
without notice except to the extent otherwise provided by applicable law or
government regulations or orders; provided however that no such change shallapply to a contract of CARRIAGE after the date of issuance of the AIR
WAYBILL by the CARRIER or after the date the rate or charge for the
CARRIAGE has been entered in the SHIPMENT RECORD.
2.7 Effective Rules
ALL CARRIAGE governed by these conditions shall be subject to the
CARRIER’S rules, regulations and tariffs in effect on the date of the issuanceof the AIR WAYBILL by the CARRIER or on the date of the SHIPMENT
RECORD, provided that in the event of inconsistency between these
conditions and the CARRIER’S rules, regulations and tariffs, these conditions
shall prevail.

Article 3- Acceptability of Goods for Carriage

3.1 Cargo Acceptable(1) The CARRIER undertakes to transport, subject to the availability ofsuitable equipment and space, all SHIPMENTS, unless otherwise excluded by
the CARRIER’S regulations and provided:8a.

the CARRIAGE, or the exportation or importation thereof is notprohibited by the laws or regulations of any country to be flown from , to or
over as well as by sanctions and/or regulations enacted by the European
Union, the United States, or the United Nations;b.

they are packed in a manner suitable for CARRIAGE as required by

the issuing CARRIER and any subsequent CARRIER;
c.

they are accompanied by the requisite shipping documents; andd.

they are not likely to endanger aircraft or any other means oftransportation, persons or property, or cause annoyance to passengers.
(2) To the extent permitted by law the CARRIER reserves the right, without
assuming any liability, to refuse CARRIAGE in its absolute discretion.
3.2 Valuation Limit of Shipment
Acceptance of SHIPMENTS having a declared value for CARRIAGE in excessof US$100,000 shall be confirmed by CAL Cargo Quality Assurance
Department (TPEFQCI) first.
3.3 Packing and Marking of Cargo(1) The SHIPPER is responsible for ensuring that the CARGO is packed in an
appropriate way for CARRIAGE so as to ensure that it can be carried safely
with ordinary care in handling and so as not to injure or damage any persons,
goods or property and in accordance with the CARRIER'S regulations. Eachpackage of the CARGO shall be legibly and durably marked with the name andfull address of the SHIPPER and CONSIGNEE and all pieces in a SHIPMENT
shall be so marked and appropriate referenced to each other.
(2) Packages containing valuables as defined in the CARRIER'S regulations
must be sealed by a method approved by the CARRIER, if so requested by the
CARRIER.

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(3) The CARRIER reserves the right to refuse the transportation of the
CARGO that is not suitably packed and/ or marked.
(4) The SHIPPER is responsible for packing the CARGO so as to protect itfrom all weather conditions to which it may be exposed, including but notlimited to rain, snow, wind, heat and cold.
3.4 Special Cargo
Special CARGO, including but not limited to valuables, dangerous goods, live
animals, perishables or temperature sensitive goods, fragile goods, humanremains, and any other goods that the CARRIER has from time to time
published and/or distributed by other means as requiring special treatment or
arrangement, is acceptable only under the conditions set forth in the
CARRIER’S regulations applicable to the CARRIAGE of such CARGO.
3.5 Responsibility for Non-Observance of Conditions relating to Cargo
Responsibility for non-observance of the conditions relating to the CARRIAGE
rests upon the SHIPPER (or its agent) and the owner of the CARGO, who shalljointly and severally indemnify the CARRIER for any loss, damage, delay,
liability or penalties the CARRIER may incur because of CARRIAGE of any
such CARGO.
3.6 Carrier’s Right of Inspection
The CARRIER reserves the right to examine the packaging and contents of all
SHIPMENTS and enquire into the correctness or sufficiency of information or
documents tendered in respect of any SHIPMENT but the CARRIER shall be
under no obligation to do so, and assumes no liability with regard to suchinspection or enquiry.
3.7 Unit Load Devices
When SHIPPER undertakes to load a unit load device (ULD) he must comply

10with the CARRIER’S loading instructions and shall be liable for and indemnify
the CARRIER against all consequences of any non-compliance with such
instructions.
3.8 Carriage of Perishables or Temperature Sensitive Cargo
All SHIPMENTS of perishable or temperature sensitive CARGO must be
packed and documented strictly in accordance with the CARRIER'S special
handling procedures set out in the CARRIER'S regulations applicable to the
CARRIAGE of such CARGO.
3.9 Dangerous Goods
The SHIPPER shall not tender for carriage any dangerous goods specified inand subject to applicable dangerous goods regulations, including but notlimited to any incendiary device, volatile or explosive CARGO or CARGO
which is or may become dangerous, inflammable or offensive or which is or
may become liable to damage any property whatsoever, without presenting afull description disclosing the nature of such Cargo, and in any event the
SHIPPER shall be liable for all loss and damage caused by such CARGO.
3.10 Compliance with Laws and Regulations
The SHIPPER warrants that it has complied with all the laws and regulations
relating to the acceptance, nature, packaging, labelling, storage or CARRIAGE,
and that the Cargo is packed in a manner adequate to withstand the ordinaryrisks of CARRIAGE having regard to its nature. The SHIPPER hereby
indemnifies the CARRIER for any liability whatsoever and all costs andexpenses resulting from or arising out of the SHIPPER'S failure to comply witheach of these warranties, including but not limited to compliance with all theapplicable dangerous goods regulations.

11Article 4-Documentation

4.1 Air Waybill
Subject to Article 4.2, the SHIPPER shall make out or have made out on hisbehalf, an AIR WAYBILL in the form, manner and number of copies prescribedby the CARRIER, and shall deliver such AIR WAYBILL to the CARRIER
simultaneously with the acceptance of the CARGO by the CARRIER for
CARRIAGE. However, charges for CARRIAGE and other charges, insofar as
they have been ascertained, shall be inserted in the AIR WAYBILL by the
CARRIER. The CARRIER may require the SHIPPER to make out, or havemade out on his behalf, separate AIR WAYBILLS when there is more than one
package or when the SHIPMENT cannot be carried in one aircraft or cannot,
without breach of government or the CARRIER'S regulations, be carried on
one AIR WAYBILL.
4.2 Shipment Record
The CARRIER, with the express or implied consent of the SHIPPER, may
substitute for the delivery of an AIR WAYBILL a SHIPMENT RECORD topreserve a record of the CARRIAGE to be performed. If such SHIPMENT
RECORD is used the CARRIER shall, if so requested by the SHIPPER, deliverto the SHIPPER in accordance with the CARRIER'S regulations a receipt for
the CARGO permitting identification of the SHIPMENT and access, inaccordance with the CARRIER’S regulations, to the information contained in
the SHIPMENT RECORD.
4.3 Apparent Condition/Packing of the Cargo
If the apparent order and condition of the CARGO and/ or packing is in any
way defective the SHIPPER shall, if an AIR WAYBILL is delivered, include on
the AIR WAYBILL a statement of such apparent order and condition. If no AIR
WAYBILL is delivered the SHIPPER shall advise the CARRIER of the apparent
order and condition of the CARGO, to enable the CARRIER to insert an12

appropriate reference thereto in the SHIPMENT RECORD. However, if the
SHIPPER fails to include such statement in the AIR WAYBILL or to advise the
CARRIER of the apparent order and condition of the CARGO, or if suchstatement or advice is incorrect, the CARRIER may include in the AIR
WAYBILL or insert in the SHIPMENT RECORD a statement of the apparent
order and condition of the CARGO, or note a correction thereto, but the
CARRIER is under no obligation to do so.
4.4 Preparation, Completion or Correction by Carrier
The CARRIER may at the request of the SHIPPER expressly or impliedly,
make out the AIR WAYBILL in which event, subject to proof to the contrary, the
CARRIER shall be deemed to have done so on behalf of the SHIPPER. If the
AIR WAYBILL handed over with the CARGO, or if the particulars andstatements relating to the CARGO furnished by or on behalf of the SHIPPER
to the CARRIER for insertion in the SHIPMENT RECORD do not contain all
the required particulars, or if the AIR WAYBILL or such particulars orstatements contain any error, the CARRIER is authorised to complete or
correct the AIR WAYBILL or particulars or statements to the best of the
CARRIER’S ability without being under any obligation to do so.
4.5 Responsibility for Particulars
The SHIPPER is responsible for the correctness of the particulars andstatements relating to the CARGO inserted by him or on his behalf in the AIR
WAYBILL or furnished by him or on his behalf to the CARRIER for insertion in
the SHIPMENT RECORD. Where such information is provided by means of
EDI, it is the responsibility of the SHIPPER or the SHIPPER’S agent to verify
contents, accuracy and completeness of the EDI messages and subsequent
messages according to the agreed standards and specifications. The
SHIPPER shall be liable for, and shall indemnify the CARRIER against all
damage suffered by him, or by any other person to whom the CARRIER is
liable, by reason of the irregularity, incorrectness or incompleteness of theparticulars and statements, whether the AIR WAYBILL or the information
relating to the CARGO for insertion in the SHIPMENT RECORD, furnished by

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the SHIPPER or on his behalf.
The SHIPPER'S particulars as to value, unless no value is declared, shall beconclusive evidence, as against the SHIPPER and CONSIGNEE, of the valueof the SHIPMENT. Where no value is declared, the SHIPPER warrants that theSHIPMENT requires no special security or handling.
4.6 Alterations
AIR WAYBILLS, the writing on which has been altered or erased, need not be
accepted by the CARRIER.

Article 5- Rates and Charges

5.1 Applicable Rates and Charges
Rates and charges for CARRIAGE governed by these conditions are those
duly published by the CARRIER and in effect on the date the issuance of the
AIR WAYBILL by the CARRIER, or on the date the rate or charge for the
CARRIAGE has been entered in the SHIPMENT RECORD.
5.2 Basis of Rates and Charges
Rates and charges will be based on the units of measurement and subject tothe rules and conditions published in the CARRIER’S regulations and rate
tariffs.
5.3 Services Not Included in Published Rates and Charges
Except as otherwise provided in CARRIERS’ regulations, rates and charges
apply only from airport to airport and do not include any ancillary service givenby the CARRIER in connection with CARRIAGE including additional PICK-UP
and DELIVERY SERVICES.

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5.4 Payment of Charges(1) Rates and charges are published in currency shown in applicable rate
tariffs, and may be paid in any currency acceptable to the CARRIER. When
payment is made in a currency other than in currency in which the rate or
charge is published, such payment will be made at rate of exchange
established for such purpose by the CARRIER, the current statement of whichis available for inspection upon first request at the CARRIER’S office where
payment is made. The provisions of this paragraph are subject to applicableexchange laws and government regulations.
(2) Full applicable charges, whether prepaid or collect, fees, duties, taxes,
charges, advances and payments, made or incurred or to be incurred by the
CARRIER and any other sums payable to the CARRIER, will be deemed fully
earned, whether or not the CARGO is lost or damaged, destroyed or disposed,
misdelivered or fails to arrive at the destination specified in the contract of
CARRIAGE as evidenced by the AIR WAYBILL or the SHIPMENT RECORD.
All such charges, sums and advances will be due and payable upon receipt of
the CARGO by the CARRIER, except that they may be collected by the
CARRIER at any stage of the service performed under the CARRIAGE andmay be collected at any time upon demand of the CARRIER.
(3) The SHIPPER guarantees payment of the freight rate, storage charges
and all other unpaid charges, unpaid CHARGES COLLECT, advances anddisbursements of the CARRIER. The SHIPPER also guarantees payment of all
costs, expenditures, fines, penalties, loss of time, damage and other sums
which the CARRIER may incur or suffer by reason of the inclusion in the
SHIPMENT of articles the CARRIAGE of which is prohibited by law, or theillegal, incorrect or insufficient marking, numbering, addressing or packing of
packages or descriptions of the CARGO, or the absence, delay orincorrectness of any export or import license or any required certificate or
document, or any improper customs valuation, or incorrect statement of weightor volume.
(4) If the gross weight, measurement, quantity or declared value of the15

CARGO exceeds the gross weight, measurement, quantity or declared value
on which charges for CARRIAGE have been previously computed, the
CARRIER shall be entitled to require payment of the charge on such excess.
(5) CHARGES COLLECT SHIPMENTS will be accepted only to countries
listed in the CARRIER’S regulations and subject to the conditions contained
therein. In any event the CARRIER reserves the right to refuse a SHIPMENT
on a CHARGES COLLECT basis to any country where regulations prevent theconversion of funds into other currencies or the transfer of funds to othercountries. Information on countries to which CHARGES COLLECT service isavailable may be obtained from offices and representatives of the CARRIER.
(6) All charges applicable to a SHIPMENT are payable at the time ofacceptance thereof by the CARRIER in the case of a prepaid SHIPMENT, i.e.
a SHIPMENT on which the charges are to be paid by the SHIPPER, or at thetime of delivery thereof by the CARRIER in the case of a collect SHIPMENT,
i.e. a SHIPMENT on which the charges are to be paid by the CONSIGNEE. If
the CONSIGNEE fails to pay said charges, when such charges are to becollected, the SHIPPER remains obligated to pay these charges, except when
the CARRIER has extended credit to the CONSIGNEE without the writtenconsent of the SHIPPER.
(7) The CARRIER may cancel the CARRIAGE of the SHIPMENT uponrefusal by the SHIPPER, after demand by the CARRIER, to pay the charges or
portion thereof so demanded without the CARRIER being subject to any
liability therefor.
5.5 Carrier's General Lien
The CARRIER shall have a lien on the CARGO for each of the foregoing and,in the event of no-payment thereof, shall have the right to dispose of the
CARGO at public or private sale (provided that prior to such sale the CARRIER
shall have given notice thereof by email, facsimile or mail to the SHIPPER or to
the CONSIGNEE at the address stated in the AIR WAYBILL or SHIPMENT
RECORD) and to pay itself out of the proceeds of such sale any and all such

16

amounts. No such sale shall, however, discharge any liability to pay any
deficiencies, for which the SHIPPER and the CONSIGNEE shall remain jointly
and severally liable. By taking delivery or exercising any other right arisingfrom the contract of CARRIAGE as evidenced by the AIR WAYBILL or the
SHIPMENT RECORD, the CONSIGNEE agrees to pay such charges, sums
and advances, except prepaid charges.

Article 6- Shipments in Course of Carriage

6.1 Compliance with Government Requirements(1) The SHIPPER shall comply with all applicable laws, customs and othergovernment regulations of any country to, from, through or over which the
CARGO may be carried, including those relating to the packing, CARRIAGE ordelivery of the CARGO, and shall, together with the SHIPMENT, furnish suchinformation and deliver such documents as may be necessary to comply withsuch laws and regulations. The CARRIER shall not be obliged to inquire into
the correctness or sufficiency of such information or documents. The
CARRIER shall not be liable to the SHIPPER or any other person for loss or
expense due to the SHIPPER’S failure to comply with this provision. The
SHIPPER shall be liable to the CARRIER for any damage occasioned by the
failure of the SHIPPER to comply with this provision.
(2) The CARRIER shall not be liable for refusing to carry any SHIPMENT if
the CARRIER reasonably determines in good faith that such refusal is requiredby any applicable law, government regulation, demand, order or requirement.
6.2 Disbursements and Customs Formalities
The CARRIER is authorised (but shall be under no obligation) to advance any
duties, taxes or charges and to make any disbursement with respect to the
CARGO and the SHIPPER and by taking delivery or exercising any other rightarising out of the contract of CARRIAGE the CONSIGNEE shall be jointly andseverally liable for the reimbursement thereof. No CARRIER shall be under17

obligation to incur any expense or make any advance in connection with theforwarding or re-forwarding of the CARGO except against prepayment by the
SHIPPER. If it is necessary to make customs entry of the CARGO at any
stopping place, and no customs clearance AGENT has been named on theface of the AIR WAYBILL or in the SHIPMENT RECORD, the CARGO shall bedeemed to be consigned to the CARRIER carrying the CARGO to such place.
For any such purpose a copy of the AIR WAYBILL or of the SHIPMENT
RECORD, certified by the CARRIER, shall be deemed original.
6.3 Schedules, Routings and Cancellations(1) Times shown in the CARRIER’S timetables or elsewhere as approximate
and not guaranteed and form no part of the AIR WAYBILL or SHIPMENT
RECORD. No time is fixed for commencement or completion of CARRIAGE ordelivery of CARGO. Unless specifically agreed otherwise and so indicated in
the AIR WAYBILL or SHIPMENT RECORD, the CARRIER undertakes to carry
the CARGO with reasonable dispatch but assumes no obligation to carry the
CARGO by any specified aircraft or over any particular route or routes, or to
make connections at any point according to any particular schedule. The
CARRIER is hereby authorised to select or deviate from the route or routes of
the SHIPMENT, notwithstanding that the same may be stated on the face of
the AIR WAYBILL or in the SHIPMENT RECORD. The CARRIER is not
responsible

for errorsoromissions either

intime-tables

or

other

representations of schedules. No employee, AGENT or representative of the
CARRIER is authorised to bind the CARRIER by any statements or
representations of the dates or times of departure or arrival, or of operation of
any flight.
(2) The CARRIER is authorised to carry the SHIPMENT without notice whollyor partly by any other means of CARRIAGE or to substitute alternate
CARRIERS.
(3) The CARRIER reserves the right without notice, to cancel, terminate,
divert, postpone, delay or advance any flight, or the further CARRIAGE, or toproceed with any flight without all or any part of the CARGO, in its absolute18

discretion.
(4) Provided that no regulations/laws to the contrary are applicable, in theevent any flight is, pursuant to above item (3), cancelled, diverted, postponed,
delayed or advanced or is terminated at place other than the place ofdestination or in the event the CARRIAGE of any SHIPMENT is so cancelled,
diverted, postponed, delayed, advanced or terminated, the CARRIER shall not
be under any liability theretofore such action. In the event the CARRIAGE of
the SHIPMENT or any part thereof is so terminated, delivery thereof by the
CARRIER to any transfer agent for transfer or delivery or the placing of such
SHIPMENT in storage shall be deemed completed delivery under the contractof CARRIAGE as evidenced by the AIR WAYBILL or SHIPMENT RECORD,
and the CARRIER shall be without any further liability with respect thereto,
except to give notice of the disposition of the SHIPMENT to the SHIPPER or to
the CONSIGNEE, at the address stated in the AIR WAYBILL or SHIPMENT
RECORD. The CARRIER may, but shall not be obligated to, forward theSHIPMENT for CARRIAGE by any other route or forward the SHIPMENT as
AGENT for the SHIPPER or the CONSIGNEE for onward CARRIAGE by any
transportation service on behalf of the SHIPPER or the CONSIGNEE. The
cost of doing so attaches to the CARGO.
(5) Unless otherwise agreed, and subject to applicable laws, regulations andorders, the CARRIER is authorised to determine the priority of CARRIAGE as
between SHIPMENTS, and as between the CARGO and mail or passengers.
The CARRIER may likewise decide to remove any articles from a SHIPMENT,at any time or place whatsoever, and to proceed with the flight without them.
If as a result of determining such priority, the CARGO is not carried or
CARRIAGE thereof is postponed or delayed or if any articles are removed
from a SHIPMENT, the CARRIER will not be liable to the SHIPPER or
CONSIGNEE or to any other party for any consequences.
6.4 Certain Rights of Carrier over Shipment in Course of Carriage(1) If in the opinion of the CARRIER it is necessary to hold the SHIPMENT atany place for any reasonable purpose, either before, during or after

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CARRIAGE, the CARRIER may, upon giving notice thereof to the SHIPPER at
the address stated in the AIR WAYBILL or SHIPMENT RECORD, store theSHIPMENT for the account and at the risk and expense of the SHIPPER, in
any warehouse or other available place, or with the customs authorities; or the
CARRIER may deliver the SHIPMENT to another transportation service foronward CARRIAGE to the CONSIGNEE. The SHIPPER shall indemnify the
CARRIER against any expense or risk so incurred.
(2) If in the sole opinion of the CARRIER the CARGO is or is liable to become
dangerous, inflammable, explosive, volatile, offensive or damaging in nature,
the same may at any time be retained, destroyed, disposed of, abandoned orrendered harmless by the CARRIER without notice or compensation to the
SHIPPER and without prejudice to the CARRIER'S right to any charges
hereunder and at the cost of the SHIPPER.

Article 7-Shipper’s Right of Disposition

7.1 Exercise of Right of Disposition
Every exercise of the right of disposition must be made by the SHIPPER or his
designated agent, if any, and must be applicable to the whole SHIPMENT
under a single AIR WAYBILL or under a single SHIPMENT RECORD. The rightof disposition over the CARGO may only be exercised if the SHIPPER or suchagent produces the part of the AIR WAYBILL which was delivered to him, orcommunicates such other form of authority as may be prescribed by the
CARRIER’S regulations, to the CARRIER. Instructions as to disposition mustbe given in writing in the form prescribed by the CARRIER. In the event thatthe exercise of the right of disposition results in a change of CONSIGNEE,
such new CONSIGNEE shall be deemed to be the CONSIGNEE appearing on
the AIR WAYBILL or in the SHIPMENT RECORD.
7.2 Shipper’s Option(1) To the extent permitted by law and APPLICABLE CONVENTION, and20

subject to his liability to carry out all his obligations under the AIR WAYBILL or
SHIPMENT RECORD and provided that this right of disposition is not
exercised in such way as to prejudice the CARRIER or other SHIPPERS, or
the CONSIGNEE’S right to delivery, the SHIPPER may at his own expense
dispose of the CARGO either:a.

by withdrawing it at the airport of departure or of destination;b.

by stopping it in the course of the journey on any landing;c.

by calling for it to be delivered at the place of destination to in courseof the journey a person other than the CONSIGNEE named in the AIR
WAYBILL or SHIPMENT RECORD; ord.

by requiring it to be returned to the airport of departure.

(2) Provided that if, in the opinion of the CARRIER, it is not reasonably
practicable to carry out the order of the SHIPPER, the CARRIER shall so
inform him promptly and the CARRIER shall thereafter be under no obligation
to carry out any such order.
7.3 Payment of Expenses
The SHIPPER shall be liable for and shall indemnify the CARRIER for all loss
or damage suffered or incurred by the CARRIER as a result of the exercise of
his right of disposition. The SHIPPER shall reimburse the CARRIER for any
expenses occasioned by the exercise of his right of disposition.
7.4 Extent of Shipper’s Right
The SHIPPER’S right of disposition shall cease at the moment when, after
arrival of the CARGO at the destination, the CONSIGNEE takes possession orrequests delivery of the CARGO or AIR WAYBILL, or otherwise shows his
acceptance of the CARGO. Nevertheless, if the CONSIGNEE declines to
accept the CARGO or the AIR WAYBILL, or if he cannot be communicated with,21

such right of disposition shall continue to vest in the SHIPPER.

Article 8- Delivery

8.1 Notice of Arrival
Notice of arrival of the SHIPMENT will, in the absence of other instructions, besent to the CONSIGNEE and any other person whom the CARRIER has
agreed to notify as evidenced in the AIR WAYBILL or SHIPMENT RECORD;
such notice will be sent by ordinary methods. The CARRIER is not liable for
non-receipt or delay in receipt of such notice. It shall be the responsibility of the
CONSIGNEE or his agent to collect the SHIPMENT with reasonable dispatch.
8.2 Delivery of Shipment
Except as otherwise specifically provided in the AIR WAYBILL or SHIPMENT
RECORD, delivery of the SHIPMENT will be made only to the CONSIGNEE
named therein, or his agent or such other person as produces the SHIPPER'S
authority to the CARRIER for delivery of the SHIPMENT. Delivery to the
CONSIGNEE shall be deemed to have been effected:(1) When the CARRIER has delivered to the CONSIGNEE or his agent any
authorisation from the CARRIER required to enable the CONSIGNEE to obtainrelease of the SHIPMENT;(2) When the SHIPMENT has been delivered to customs or other government
authorities as required by applicable law or customs regulations.
8.3 Place of Delivery
Except as provided in Article 9.3, the CONSIGNEE must accept delivery of andcollect the SHIPMENT at the airport of destination or the respective facility as
designated by the CARRIER.

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8.4 Failure of Consignee to Take Delivery(1) Subject to the provisions of Article 8.5 hereof, if the CONSIGNEE refuses
or fails to take delivery of the SHIPMENT after its arrival at the airport ofdestination, the CARRIER will endeavor to comply with any instructions of the
SHIPPER set forth on the face of the AIR WAYBILL, or in the SHIPMENT
RECORD. If such instructions are not so set forth or cannot reasonably becomplied with, the CARRIER shall notify the SHIPPER of the CONSIGNEE’S
failure to take delivery and request his instructions. If no such instructions arereceived within thirty (30) DAYS, the CARRIER may sell the SHIPMENT in one
or more lots at public or private sale, or destroy or abandon such SHIPMENT.
(2) The SHIPPER is liable for all charges and expenses resulting from or inconnection with the failure to take delivery of the SHIPMENT, including, but notlimited to, storage charges and CARRIAGE charges incurred in returning theSHIPMENT if so required by the SHIPPER’S instructions. If the SHIPMENT isreturned to the airport of departure and the SHIPPER refuses or neglects tomake such payments within fifteen (15) DAYS after such return, the CARRIER
may dispose of the SHIPMENT or any part thereof at public or private sale
after giving the SHIPPER ten (10) DAYS notice of its intention to do so.
8.5 Disposal of Perishables(1) When a SHIPMENT containing perishable articles as defined in the
CARRIER’S regulations is delayed in the possession of the CARRIER, isunclaimed or refused at place of delivery, or for other reasons is liable todeteriorate, the CARRIER may immediately in its sole discretion take such
steps as it sees fit for the protection of itself and other parties in interest,
including but not limited to the destruction or abandonment of all or any part of
the SHIPMENT, the sending of communications for instructions at the cost of
the SHIPPER, the storage of the SHIPMENT or any part thereof at the risk andcost of the SHIPPER, or the disposal of the SHIPMENT or any part thereof at
public or private sale without notice.
(2) In the event of the sale of the SHIPMENT as provided for above, either at23

the place of destination or at the place to which the SHIPMENT has beenreturned, the CARRIER is authorised to pay to itself and other transportation
services out of the proceeds of such sale all charges, advances, and expensesof the CARRIER and other transportation services plus costs of sale, holding
any surplus subject to the order of the SHIPPER. A sale of any SHIPMENT
shall, however, not discharge the SHIPPER and/or owner of any liability
hereunder to pay any deficiencies.
8.6 Responsibility for Charges
By accepting delivery of the AIR WAYBILL and/or the SHIPMENT the
CONSIGNEE shall become liable for payment of all costs and charges inconnection with the CARRIAGE. Unless otherwise agreed the SHIPPER shallnot be released from his own liability for these costs and charges and willremain jointly and severally liable with the CONSIGNEE. The CARRIER may
make delivery of the SHIPMENT or the AIR WAYBILL conditional upon
payment of these costs and charges.

Article 9- Pick-up and Delivery Services

9.1 Shipments
Subject to Article 9.3, SHIPMENTS are accepted for CARRIAGE from theirreceipt at the CARRIER’S cargo terminal or airport office at the place of
departure to the airport at the place of destination or the respective facility as
designated by the CARRIER.
9.2 Availability of Service
PICK-UP SERVICE and DELIVERY SERVICE will be available at the relevant
points, to subject to the rates and charges established for such services inaccordance with the CARRIER'S tariffs and regulations.

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9.3 Request for Service
PICK-UP SERVICE, if available, will be provided when requested by the
SHIPPER. Except when otherwise provided by the CARRIER’S tariffs orregulations, DELIVERY SERVICE may be provided unless contrary
instructions are given by the SHIPPER or by the CONSIGNEE. Such contrary
instructions must be received by the CARRIER prior to removal of theSHIPMENT from the CARRIER'S airport terminal at destination.
9.4 Shipment for which Service is Unavailable
PICK-UP SERVICE and DELIVERY SERVICE will not be provided by the
CARRIER without special arrangement for any SHIPMENT which, in theopinion of the CARRIER, because of its volume, nature, value or weight isimpractical for the CARRIER to handle in normal course of business.
9.5 Liability
Where so specifically agreed, if PICK-UP SERVICE or DELIVERY SERVICE is
performed by the CARRIER or its AGENT, such transportation shall be upon
the same terms as to liability as set forth in Article 12 hereof unless otherwise
provided by mandatory regulations.

Article 10- Authority and Indemnity of Shipper

10.1 Authority(1) It is agreed that any person who tenders CARGO to the CARRIER for
CARRIAGE for or on behalf of the SHIPPER is authorised to do so upon andsubject to these conditions of carriage.
(2) The SHIPPER warrants that in agreeing to these conditions it has theauthority of the person or persons owning or having any interest in the CARGO
or any part thereof.

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10.2 Indemnity
Without prejudice to the generality of the foregoing, the SHIPPER undertakes
to indemnify the CARRIER in respect of any liability whatsoever andhowsoever arising (including without limitation, negligence or breach ofcontract or willful act or default of the CARRIER or others) in connection with
the CARGO, to any person (other than SHIPPER) who claims to have, who
has or who may hereafter have any interest in the CARGO or any part thereof.
It is agreed that this indemnity operates irrespective of whether the
CARRIER'S liability arises from events which may constitute a fundamental
breach of contract or a breach of a fundamental term.

Article 11- Successive Carriers

Any CARRIAGE to be performed under one contract of CARRIAGE by several
successive CARRIERS is regarded as a single operation.

Article 12- Carrier’s Liability

12.1 General
Subject to the provisions set out in this Article 12, the CARRIER is liable to the
SHIPPER, CONSIGNEE or any other person for damage sustained in theevent of destruction or loss of, or damage to, or delay in the CARRIAGE only if
the occurrence which caused the damage so sustained took place during the
CARRIAGE as defined under Article 1.
12.2 Exclusion of Liability
Except as may be otherwise provided for in any APPLICABLE CONVENTION
or laws, the CARRIER is not liable to the SHIPPER, CONSIGNEE or any otherperson with an interest in the CARGO in tort, contract or bailment or otherwise
for any damage, delay or loss of whatsoever nature directly or indirectly arisingout of or in connection with the CARRIAGE or other services performed by the26

CARRIER or its AGENTS, unless such damage, delay or loss is proved tohave been caused by the gross negligence or willful misconduct of the
CARRIER, and there has been no contributory negligence on the part of the
SHIPPER, CONSIGNEE or other claimant.
12.3 Limitation of Liability
Unless the SHIPPER has made a special declaration of value for CARRIAGE
and has paid the supplementary charge applicable, the liability of the
CARRIER for the CARGO destroyed, lost, damaged or delayed, shall not
exceed the applicable kilogram monetary limit provided in any APPLICABLE
CONVENTION or laws. Where the SHIPPER has made a special declarationof value and paid the supplementary charge applicable, the liability of the
CARRIER shall not exceed such declared value for CARRIAGE stated on theface of the AIR WAYBILL or included in the SHIPMENT RECORD. All claims
shall be subject to proof of value.
12.4 Public Authorities and Other Events Beyond the Carrier's Control
The CARRIER shall not be liable for damage caused directly or indirectly by
any act of public authority carried out in connection with the entry, exit or transitof the CARGO, compliance with laws, governmental regulations, requirementsor orders or by any other event beyond the CARRIER'S control, including
without limitation, strikes, labor stoppage, seizure, acts of war (including
terrorist acts), armed conflict, acts of God or any other unusual andunforeseeable events beyond the control of the CARRIER and theconsequences of which could not have been avoided even if all reasonablemeasures have been taken. The CARRIER shall not be liable when refusing
CARRIAGE after having decided with its discretion exercised in good faith thatthe laws and regulations which it deems applicable do not permit the
CARRIAGE.
12.5 Inherently Defective Cargo
The CARRIER is not liable if the destruction, loss of or damage to the CARGO

27

is proven to have resulted from the inherent defect, quality, nature or vice ofthat CARGO, or from the defective packaging of the CARGO.
12.6 Animals
The CARRIER will not be liable for any loss, damage or expense arising fromdeath due to natural causes or death or injury of any animal caused by the
conduct or acts of the animal itself or of other animals such as biting, kicking,goring or smothering, nor for that caused or contributed to by the condition,
nature or propensities of the animal, or by defective packing of the animal, orby the inability of the animal to withstand unavoidable changes in its physicalenvironment, inherent in the CARRIAGE. In no event shall the CARRIER be
liable for death or injury to an animal attendant caused or contributed by thecondition, conduct or acts of the animals.
12.7 Consequential Loss
The CARRIER shall not be liable in any event for any consequential loss ordamage whether arising directly or not, including without limitation, loss ofbusiness opportunities and contracts, loss of profits, loss of revenue, goodwill
or reputation arising from CARRIAGE subject to these conditions, whether or
not the CARRIER had knowledge that such loss or damage might be incurred.
12.8 Contributory Negligence
If the damage, destruction, loss or delay was caused or contributed to by the
negligence or other wrongful act or omission of the person claiming
compensation, or the person from whom he derives his rights, the CARRIER
shall be wholly or partly exonerated from liability to the claimant to the extent
that such negligence or wrongful act or omission caused or contributed to thedamage, destruction, loss or delay.
12.9 Applicable Weight
In the case of loss, damage or delay of part of the SHIPMENT, or of any object

28

contained therein, the weight to be taken into consideration in determining theamount to which the CARRIER’S liability is limited shall be only the weight ofthe package or packages concerned. Nevertheless, when the loss damage ordelay of part of the SHIPMENT, or of an object contained therein, affects thevalue of other packages covered by the same AIR WAYBILL or SHIPMENT
RECORD, the total weight of such package or packages shall also be taken
into consideration in determining the limit of liability. In the absence of proof tothe contrary, the value of any such part of the SHIPMENT lost, damaged ordelayed as the case may be, shall be determined by reducing the total value ofthe SHIPMENT in the proportion that the weight of that part of the SHIPMENT
lost, damaged or delayed has to the total weight of the SHIPMENT.
12.10 Indemnity
The SHIPPER, and to the extent permitted by applicable law, the owner and
CONSIGNEE, whose property or SHIPMENT causes damage to or destructionof another SHIPMENT or of the property of the CARRIER, shall indemnify the
CARRIER for all losses, claims, penalties, damages and expenses incurred by
the CARRIER as a result thereof. The CARGO which, because of inherent
defect, quality or vice or because of defective packing, is likely to endanger
aircraft, persons or property may be abandoned or destroyed by the CARRIER
at any time without notice and without liability therefore attaching to the
CARRIER.
12.11 Liability of Other Carrier
The CARRIER issuing an AIR WAYBILL for CARRIAGE over the lines ofanother CARRIER does so only as agent for such other CARRIER.

Anyreference in a SHIPMENT RECORD to CARRIAGE to be performed byanother CARRIER shall be deemed to refer to CARRIAGE to be provided as
principal by such other CARRIER. No CARRIER shall be liable for the loss,
damage or delay of CARGO not occurring on its own line except that the
SHIPPER shall have a right of action for such loss, damage or delay on theterms herein provided against the first CARRIER and the CONSIGNEE orother person entitled to delivery shall have such a right of action against the29

last CARRIER under the contract of CARRIAGE.
Whenever the liability of the CARRIER is excluded or limited under these
conditions, such exclusion or limitation shall apply to AGENTS, employees orrepresentatives of the CARRIER and also to any CARRIER whose aircraft orother means of transportation is used for CARRIAGE.

Article 13- Limitations on Claims and Actions

13.1 Receipt of Cargo
Receipt by the person entitled to delivery of the CARGO without complaint
shall be prima facie evidence that the same has been delivered in goodcondition and in accordance with the contract of CARRIAGE.
13.2 Time Limits on Complaints
No action shall be maintained in the case of loss or damage or delay to goods
unless a complaint is made to the CARRIER in writing by the person entitled todelivery.

Such complaint shall be made:(1) in the case of damage to or partial loss of the CARGO, immediately after
discovery of the damage and at the latest within fourteen (14) DAYS from thedate the CARGO was placed at the disposal of the person entitled to delivery;(2) in the case of delay, within twenty-one (21) DAYS from the date on which
the CARGO were placed at the disposal of the person entitled to delivery; and(3) in the case of non-delivery of the CARGO, within one hundred and twenty(120) DAYS from the date of issue of the AIR WAYBILL or SHIPMENT
RECORD, whichever is applicable.
13.3 Time Limits on Action
Any right to damages against the CARRIER shall be extinguished unless an30

action is brought within two (2) years, whereas in the Taiwan Region one (1)year, from the date of arrival at the destination, or from the date on which theaircraft ought to have arrived, or from the date on which the CARRIAGE
stopped.

Article 14- Overriding Law

Insofar as any provision contained or referred to in the AIR WAYBILL or
SHIPMENT RECORD or these conditions may be contrary to mandatory law,
government regulations, orders or requirements, such provision shall remain
applicable to the extent that it is not overridden thereby. The invalidity of any
such provision shall not affect any other part.

Article 15- Modification and Waiver

No AGENT, employee or representative of the CARRIER has authority to alter,
modify or waive any provision of the contract of CARRIAGE or of these
conditions.

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