RULE NO. 16: PAYMENT OF CHARGES

1. Rates and charges herein are published and must be paid in United States dollars.  If carrier agrees to accept payment in any other currency, the published rates and charges will be converted to the currency of payment at the rates of exchange established for such purpose by Carrier.
2. Full applicable charges, whether prepaid or collect, fees, duties, taxes, charges, advances and payments, made or incurred or to be incurred by Carrier, and any other sums payable to Carrier, will be fully earned, whether or not the cargo is lost or damaged, or fails to arrive at the destination specified in the air waybill.  All such charges, sums and advances will be due and payable at the time and under the conditions as set forth in subparagraph G herein.  No claim for loss or damage to a shipment will be entertained until all transportation charges thereon have been paid.  The amount of claim(s) may not be deducted from transportation charges.
   
   EXCEPTION: When the consignee does not receive any part of a shipment, a claim with respect to such shipment will be entertained even though transportation charges are unpaid.
3. With respect to any charges, expenses or disbursements which cannot be determined at the time when the cargo is handed over for carriage.  Carrier may require the shipper to deposit with Carrier a sum estimated by Carrier to be sufficient to cover such charges, expenses and disbursements.  Any balance due from Carrier to shipper or from shipper to Carrier in connection with such deposit shall be paid after completion of the contract of carriage and determination of the exact amount of such expenses and disbursements.
4. The shipper guarantees payment of all unpaid charges, advances, and disbursements of Carrier.  The shipper also guarantees payment of all costs, expenditures, fines, penalties, loss of time, damages and other sums which Carrier may incur or suffer by reason of the inclusion in the consignment of articles the carriage of which is prohibited by law, or the illegal; incorrect or insufficient marking, numbering, addressing or packing of packages or description of the cargo; or the absence, delay or incorrectness of any export or import license or any required certificate or document; or any improper customs valuation, or incorrect statement of weight or volume.  By taking delivery or exercising any other right arising from the contract of carriage, the consignee agrees to pay such charges, sums and advances, except prepaid charges; but this shall not discharge the shipper’s guarantee to pay the same.  Carrier shall have a lien on the cargo for each of the foregoing and, in the event of non-payment thereof, shall have the right to dispose of the cargo at a public or private sale (provided that prior to such sale Carrier shall have mailed notice thereof to the shipper or to the consignee at the address stated in the air waybill), and to pay itself out of the proceeds of such sale any and all such 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.  No such lien or right of sale, and no right of Carrier to collect any of the foregoing shall be in any way affected, lost or prejudiced by reason of the acknowledgment of payment, if not actually paid, or, so far as concerns of the right of Carrier to collect any of the foregoing, be reason of the delivery of the cargo or the surrender of the possession thereof.
5. If the actual gross weight, measurements, quantity or declared value of the cargo exceeds the gross weight, measurement, quantity or declared value on which charges for carriage have been previously computed, carrier shall require payment of the charge on such excess.
6. Carrier may refuse consignments having charges collect to any country where regulations prevent or restrict the conversion of funds into other currencies or the transfer of funds to other countries.
7. All charges applicable to a shipment are payable in cash at the time of acceptance 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 consignor) or, at the time of delivery of the shipment documentation 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).

EXCEPTION 1:

1. If carrier agrees in advance to extend credit, credit for payment of charges on a shipment will be extended for 30 days after the date of billing.
2. When credit for payment of charges on a shipment has been extended by the Carrier, the Carrier will bill for such charges within 15 days after the date the Carrier accepts a prepaid shipment or delivers a collect shipment.