RULE: 7 - PAYMENT OF FREIGHT CHARGES Eff: 27JAN2014
| Effective | 27JAN2014 |
|---|---|
| Filed | 27JAN2014 |
| Filing Codes | C |
Freight charges, assessorial charges, surcharges or other charges
named in this Tariff, and in Tariff Rate Secitons governed by this
Tariff, including advanced charges may be prepaid or collect (when
prior arrangements have been made with Carrier) at origin or
destination, SBJ to the provisions named herein. However,
regardless of whether B/L payment status is prepaid or collect,
the Shipper, his duly authorized Freight Forwarder, the Consignee
and the Beneficial Cargo Owner shall be, and will remain, jointly
and severally liable for all unpaid charges and freight,
including but not limited to, any sums advanced or disbursed by
the Carrier for the account of the cargo.
a. All freight and additional charges named in this Tariff, and in
Tariff Rate Sections Governed by this Tariff, are due and
considered earned upon receipt of the cargo by the originating
Carrier, or his agent, and shall be paid to the Carrier without
discount or deduction, whether the ship and/or cargo is lost or
not lost, transportation is interrupted or abandoned, whether the
cargo is damaged or ruined, or whether packages or containers are
delivered empty or partly empty at destination.
b. Rates and charges named in this Tariff, and in Tariff Rate
Sections governed by this Tariff, are quoted in U.S. Currency and
have been determined with due consideration to the relationship
of U.S Currency to the other currencies involved, In the event
of any material deterioration in the exchange value of U.S.
Currency, Carrier reserves the right, upon publication herein, to
adjust the rates and charges named in this Tariff to remove any
adverse effect in conformity with the U.S. Shipping Act of 1984,
as amended, and the regulations of the Federal Maritime
Commission issued pursuant thereto.
c. Except as otherwise provided, freight and charges shall
be prepaid in the United States in U.S. Dollars unless
Carrier agrees to accept shipments on a collect basis
(see paragraph f.) and unless Carrier agrees to accept
payment in foreign currency (see paragraph d). Payment
for freight and/or other charges due must be paid in
legal tender or, at Carrier's option, by check or bank
draft provided it is acceptable by Carrier's bank for
immediate credit without bank charge.
d. Carrier will accept payment of freight and other charges
in U.S. Currency or in a foreign currency provided it is
unblocked, freely convertible and freely remittable free
of tax when converted into U.S. Dollars. When payment
is effected in a currency other than U.S. Currency,
conversion shall be calculated on the basis of the rate
of exchange as published in the Wall Street Journal, or
other comparable foreign publications. Rates of
exchange as so determined apply with respect to date of
cargo receipt in the case of prepaid freight, or to date
of vessel arrival at port of discharge in the case of
collect freight. In the case of non-publication, for
whatever reason, the rate of exchange shall be as
published on the next available working day.
e. Prepaid Freight and Charges: When freight and charges
are prepaid, such payment must be made prior to the
release of any original Ocean Bill of Lading by the
Carrier to the Shipper or its duly authorized licensed
freight forwarder or agent acting on his behalf.
When release of original Bill of Lading has not been
made by the Carrier to the Shipper or its agent prior to
the cargo's arrival at the bill of lading destination,
cargo will be held by the Carrier at the bill of lading
destination until all freight and charges are paid or
the original bill of lading has been released to a
Shipper after credit approval from the Carrier.
f. Collect Freight and Charges: When Carrier has agreed to
accept shipments on a collect basis, all freight and
charges which are billed on a freight collect basis must
be paid in full in U.S. Dollars, or at the option of the
Carrier, paid in a currency acceptable to the Carrier
SBJ to paragraph d., prior to release of the complete
originally issued B/L quantity or any portion thereof.
g. Bills of Lading for Partial Collect and Prepaid
Shipments: When prior arrangements have been made and
accepted by Carrier, Carrier may issue Bills of Lading
with a portion of total freight and charges prepaid, and
the balance of the freight and charges collect. Carrier
provides this procedure as a service and shall be held
harmless in any disputes that may arise between Shippers
and Consignee, relative to the apportionment of freight
and charges in accordance with Shipper's instructions.
On Bills of Lading which are apportioned between Shipper
and Consignee, the portion prepaid shall be subject to
the provisions of paragraph e. herein, and the collect
portion shall be subject to the provisions of paragraph
f. herein. The release of the Bill of Lading by the
Carrier under its credit provisions or after payment of
the prepaid portion of freight and charges due does not
obligate the Carrier to deliver the cargo to the
consignee until the collect portion has been paid or
credit granted under appropriate provisions.
h. The payment status of a B/L may NOT be changed once
transportation service of cargo has commenced (i.e.
"prepaid" shipments cannot be changed to "collect"
shipments and likewise "collect" shipments cannot be
changed to "prepaid" shipments) without the express
approval of the Carrier.
i. Carrier or its duly authorized agent, will, upon request
of the Shipper, Freight Forwarder, Consignee or
Beneficial Cargo Owner, extend credit to the party
listed in the B/L as responsible for the payment of
freight and charges, in amounts not to exceed freight,
assessorial, terminal and/or advanced charges. The
credit period shall be 90 (ninety) days from the date of
delivery of cargo in the case of collect shipments or
from the date of originating Carrier's cargo receipt in
the case of prepaid shipments.
If freight or other charges are NOT paid within the credit
period specified above, the Carrier will cancel the delinquent
party's credit privileges after which time ALL freight and
assessorial charges applying on shipments moving for the
account of such party MUST be paid in cash, cashier's check,
money order, or wire transfer at the time, or prior to the
time, cargo is tendered to originating Carrier for
transportation in the case where the Shipper/Freight
Forwarder/Beneficial Cargo Owner is the payor, or prior to
delivery in the case where the Consignee/Freight
Forwarder/Beneficial Cargo Owner is the payor.
If any party responsible for the payment of charges fails
or refuses to pay lawful freight and/or other charges due
as specified above, Carrier shall be entitled to recover
all collection costs incurred, including but not limited
to, reasonable collection agency fees, attorney's fees
and court costs.
