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Rule # Description Effective Expiry

24

Misdeclaration of Cargo

1-May-2006

 

A.  Shipper warrants that all documents and other information provided to the Carrier by the Shipper or its agents, which may affect the applicable freight or other charges, are accurate. Carrier, at its discretion, may appoint a sworn measurer to open any container packed by or on behalf of the shipper in order to verify the commodity description, cargo nature, cargo weight, cargo measurement and/or piece count as declared by the shipper to be contained therein and the shipper's compliance with the carrier's tariff rules and rates. Carrier shall have no responsibility or liability for any loss of or damage to the goods or delay in their shipment or delivery arising out of or resulting from such verification, whether or not such information has been correctly stated by the shipper. The container will be re-sealed with the carrier's seal and a notification of such inspection shown on the Bill of Lading or by other notification to the shipper.

The shipper, whose cargo upon inspection by the sworn measurer or local customs is found to have been incorrectly described, weighed, measured, and/or counted, shall be responsible for re-rating of any freight and charges due. Any expense incurred for the inspection shall be for the account of cargo. In addition, an administration fee of US$200 per container for container with cargo commodity mis-declared, cargo weight either under-declared or over-declared by the shipper by 2 tons or more than the actual cargo weight shall be billed to account of cargo. All additional charges and fees must be paid prior to the release of cargo, irrespective of whether the inspection is performed at origin or at destination.

If the inspection is performed at Consignee's premises and the consignee interferes, obstructs, or refuses to permit such inspection, the Shipper shall be required to pay liquidated damages in lieu of all other charges named herein, based on the greater of:

i. The applicable cargo NOS rate, at the declared weight, measure or piece count; or

ii. US$2,000.00, in addition to all other charges declared by the shipper, but not verified by the Carrier.

 

B.  If the shipper does not agree with the findings of certified inspector at origin, the shipper may request that an inspection at destination be performed by a certified inspector. If an inspection results in the shipper owing no additional freight or charges, the cost of the inspection shall be for the account of the Carrier and any freight due bills, liquidated damages or inspection fees previously assessed on the shipment will be cancelled or if paid, refunded. If such an inspection confirms in whole or part the findings of the inspector at origin, the shipper will be responsible for additional freight due, administration fee if applicable and liquidated damages based on the destination certified inspector certificate. In addition, the shipper will also be required to pay inspection charges incurred at both origin and destination on the shipment.

 

C.  To ensure the accuracy of the description and measurements declared by the Shipper, and to ensure that the provisions of this tariff and any service contracts are strictly adhered to, the Carrier may request documentation necessary to verify compliance, including but not limited to invoices, Customs documentation, freight bills, underlying bills of lading, and arrival notices. Said requests shall be made within one year after the shipment date. Shipper or consignee shall provide documentation requested within thirty (30)days of the request. If the request is made prior to the release of cargo to the consignee, the Carrier shall not release the cargo until the documentation is provided. If a misdescription or misdeclaration is found as a result of this inquiry, the cargo interests shall be liable to pay (a) the additional applicable tariff or contract freight and charges due on such cargo as rated correctly, which shall be payable by any party liable for payment of the freight and charges; and (b) an additional amount equal to the full amount of all tariff or contract freight and charges due on the cargo as rated correctly, which shall be paid by the party responsible for the misdescription or misdeclaration. This rerating charge shall be applied separately for each misdescription or misdeclaration on a shipment. For example, if the shipper misdescribes the commodity and also misdeclares the weight or measure of the cargo on the same shipment, the rerating charge would apply twice for that shipment. If documentation is not provided within the thirty (30) days as requested, the Carrier may conclude that a misdescription or misdeclaration has occurred and apply the above additional charges. If a shipment is found to be misdeclared prior to release, the cargo shall not be released to the consignee until the applicable tariff or contract freight and charges referred to in (a) and (b) above, along with any demurrage charges that might be due, have been paid in full.

 

D.  A consignee presenting a bill of lading to the carrier to claim delivery of cargo shall have an affirmative duty to verify cargo descriptions on that B/L and to notify the carrier of any discrepancy. The presentation of a B/L and the taking of delivery of the cargo constitutes a warranty by the consignee that it has compared the cargo description on the carrier's B/L with the import declaration and any other relevant commercial documents available to the consignee (including but not limited to sales agreements, purchase orders, and letters of credit) and that the description of the cargo in those documents is consistent with the B/L description. In the event that (a) the cargo is found to have been misdescribed on the ocean B/L and (b) the consignee failed to disclose to the carrier the particulars of discrepancy in the cargo descriptions as evidenced by the documentation referred to above, the consignee shall be liable for the rerating charge specified in subparagraph F of this rule, whether or not the consignee is affiliated with the shipper of the cargo or is acting as delivery or other agent for the shipper. It shall be a defense to liability for the rerating charge if the consignee demonstrates that it reviewed the documentation prior to cargo release and there was no discrepancy between the cargo description in the B/L on the one hand and, on the other hand, the import declaration and other commercial documents available to the consignee.

 

E.  In the event that misdescription of cargo is found to fall within the following situations, either by means of physical cargo inspection by Carrier; by evidence of other supporting documents or by change of declaration from shipper when cargo is in Carrier's custody:

- From general cargo (GC) to hazardous cargo (DG) either in dry or refrigerated stowage,

- Changes of hazardous cargo description such as, but not limited to change of class; UN; packing group; technical name or concentration percentage. Shipper shall be liable for the following additional payment prior to the release of cargo:-

1. Difference in freight and charges between the actual cargo description and the originally declared description.

2. An additional liquidated damage to the Carrier at US$2000 per container.

3. If physical inspection is performed, all costs associated with physical inspection plus an administrative fee of $75 per container. Shipper shall further indemnify and hold Carrier harmless from and against all loss, damage, expense, actions and claims for injury to or death of persons and damage to property arising out of such misdescription.

 

F.  When cargo is found to have undergone fumigation without proper aeration and missing warning sign affixed to the container pursuant to IMO requirements, a misdeclaration fee of US$200 per container will be assessed.

     
     
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