RULE: 7 - PAYMENT OF FREIGHT CHARGES Eff: 01Jul1993
| Effective | 01Jul1993 |
|---|---|
| Filed | 01Jul1993 |
| Filing Codes | S |
| Case No | 008018 |
Except as otherwise provided, the following rules on the payment of monies and charges shall apply: A. For the purpose of this rule, the terms "Freight Monies" when used in this rule shall refer to commodity freight rates and all other charges and rates set forth in the commodity items or rules of this tariff. However, the term "Freight Monies" shall exclude "Ocean Carrier's CY Receiving Charges and Ocean Carrier's CFS Receiving Charges" as set forth in tariff which shall be referred to as "Charges" or "Freight Charges". B. The rates provided herein apply in United States Currency and all charges must be prepaid in United States Currency or its equivalent in freely convertible currency not later than the time of release of any original Bill of Lading by the Carrier to the shipper or his duly author- ized licensed freight forwarder or agent acting in his behalf, except those shippers or consignees to whom the Carrier has extended due bill privileges. When due bill privileges are granted, all charges must be paid within seven (7) days from date of billing. Collect shipments can be accepted only by prior agreement in which case the rate of exchange ruling the day of receipt of cargo by the Carrier, in accordance with Rule 3, shall apply. Due bill privileges are extended afetr applicants agree the following conditions: 1) Bill of Lading Receipts: Receipts for all bills of lading so issued shall be signed by the applicant, or on behalf of the applicant by the freight forwarder or other agent receiving them. 2) Any Forwarder is Shipper's Agent for Payment: If the applicant engages or utilizes the service of a freight forwarder in connection with the payment of freight or charges to the Carrier, the applicant agree that such forwarder acts as the agent for such purpose and as the agent of the Carrier. 3) Unconditional Promise to Pay and Guarantee of Freight Payment: The applicant will be absolutely and unconditionally liable to the Carrier for payment of all freight and charges due and guarantees that the Carrier will be paid by the applicant irrespective or whether or not funds for payment of such freight and charges have been advanced by the applicant to a freight forwarder or other agent. If the applicant provides funds to a freight forwarder or other agent to pay the freight or charges due the Carrier, and such forwarder or agent converts such funds to its own use or for any other reason fails to pay them to the Carrier, the applicant shall remain absolutely and unconditionally liable to the Carrier upon the applicant's freight forwarder or other agent for payment of such freight and charges constitute a waiver or an estoppel of the Carrier's right to enforce these promises and guarantees against the applicant. 4) Freight Due when specified in Tariff: All freight and charges shall be due as prescribed in the applicable tariff within the designated period after the sailing of the vessel from the respective port of loading. 5) Suspension of Credit: Credit privileges hereunder shall be suspended for any failure to comply with the provisions of the applicable tariff. The Agreement will be cancelled by any suspension of credit privileges for a period of sixty (60) consecutive days. 6) Absolute Obligation to Collect Freight: We recognize that the Carrier has absolute obligation under Section 18(b)(3) of the Shipping Act, 1916, as amended, to collect and receive all freight and charges due under the pertinent tariff or tariffs. 7) Remedies are Cumulative: The remedies available to the Carrier under the Agree- ment are cumulative and are in addition to every other remedy in law or equity. The exercise of any remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other remedy. 8) Effective Date: The Agreement shall become effective on the date of its receipt and execution by the Carrier to its Agent and shall continue in effect unless terminated sooner by written notice from either party to the other, provided however, that termination or expiration shall not extinguish any existing liabilities hereunder. C. Full freight and charges to Port of Discharge as defined in Bill of Lading shall be considered earned and payable without refund in whole or in part upon receipt of the goods by the Carrier, vessel and/or cargo lost or not lost. D. Except as otherwise provided in this Tariff, all rates and charges shown herein are to be collected in United States Currency in the United States not later than the time of receipt of cargo by Carrier; provided that Carrier may extend credit for fifteen (15) business days after the date of receipt of cargo, exclusive of Saturdays, Sundays and Legal Holidays. E. Both Shipper and consignee of the goods or articles shipped, shall be liable, jointly and severally for all unpaid charges payable on account of a shipment pursuant to applicable tariffs including, but not confined to, sums advanced or disbursed by carrier on account of such shipment.
