PYRAMID LINES Ltd. Carrier s Instruction

Transcription

1 Appendix I PYRAMID LINES Ltd. Carrier s Instruction Version: 1.1 Date: Status: Final Author: No. of Pages: 59 Distribution: Appendix I to PYRAMID LINES Agency Agreement

2 Contents 1 Introduction Use and Issuance of Carrier B/L and SWB Use and Function of the Carrier B/L Issuance of Carrier B/L Corrections to Carrier B/L Specifications of Goods in Carrier B/L Sample of Carrier B/L incl. detailed Instructions Carrier B/L Transport Modes Carrier B/L issued for "Port-to-Port Shipment Carrier B/L issued for "Point-to-Port Shipment Carrier B/L issued for "Port-to-Point Shipment Carrier B/L issued for "Point-to-Point Shipment Straight and Order Carrier B/L/ Release of Cargo Straight Carrier B/L Order Carrier B/L Release of Goods without Original Carrier B/L Telex Release Use and Function of the Carrier SWB Issuance of Carrier SWB Corrections to Carrier SWB Specification of Goods in Carrier SWB Sample of Carrier SWB Carrier SWB Transport Modes Carrier SWB issued for "Port-to-Port Shipment Carrier SWB issued for "Point-to-Port Shipment Carrier SWB issued for "Port-to-Point Shipment Carrier SWB issued for "Point-to-Point Shipment Release of Goods Ordering Carrier B/L and SWB Forms Issuance of Master (Ocean) B/L or SWB by VOCC Carrier s Shipments from/to USA via U.S. Ports Quotation and Invoice Cash on Delivery/Disbursements Stuffing/Stripping of Carrier s Consolidation Containers Dangerous (DG), Military and Governmental Regulated Goods Banned Goods Declaration of Value/ High Value Shipments Appendix I Version: 1.0 Page 2/59

3 12 Loss Prevention Marine Cargo Insurance Appointment of Surveyors General Average Banned Countries Attachments Attachment A: Carrier B/L Issuance Flowchart Attachment B: Carrier s Bill of Lading Signature Card Attachment C: Procedures for the release of Goods against presentation of Carrier Original Bill of Lading Attachment D: Instructions for Delivery of Goods without presentation of Original Carrier Bill of Lading Attachment E: Letter of Indemnity & Bank Guarantee Attachment F: Telex Release Attachment G: Order Acceptance CHECK LIST for DG, Military and DG CHECK LIST for Ocean Freight Shipping Order/Booking Acceptance Attachment H: Order Acceptance CHECK LIST for DG, Military and Appendix I Version: 1.0 Page 3/59

4 1 Introduction In order to cover the worldwide ocean freight business under one comprehensive uniform standard PYRAMID LINES Ltd. (hereinafter called "Carrier") has been established to conduct business as a Non-Vessel-Operating-Common-Carrier (NVOCC). The Carrier s trade name is PYRAMID LINES. The legal, commercial and administrative actions are covered by a new uniform Carrier Bill of Lading or Carrier Sea Waybill which has to be used for all Carriers shipping activities without exemptions. The Carrier is concluding NVOCC Agency Agreements with its worldwide Agents permitting to use the Carrier Ocean or Combined Transport Bill of Lading (hereinafter Carrier B/L) and the Carrier non-negotiable Ocean or Combined Transport Sea Waybill (hereinafter Carrier SWB). In order to clarify the responsibilities of the Carrier s Agent (hereinafter Agent ) as well as the use and issuance of the Carrier B/L and Carrier SWB, the binding instructions, including guidelines and comments, have been outlined in this document. Contrary to a freight forwarder, the Carrier assumes the responsibility for loss, damage or delay to the goods as contracting carrier according to the Carrier B/L and Carrier SWB terms and conditions. With the introduction of a worldwide Carrier s service and unified documentation, the Carrier is able to present exporters and importers with an exclusive, uniform and, most importantly, bank acceptable B/L, being a document of title with corresponding liabilities attached to it. Following main functions are defined as below: Carrier PYRAMID LINES Ltd., registered in Hong Kong, has been founded and is legally acting as Carrier under Hong Kong Law. The appointed ocean freight agents act as Carrier s Agents and are issuing Carrier B/L and SWB for all worldwide Carrier s shipping activities. Place of Jurisdiction PYRAMID LINES Ltd. principal place of jurisdiction is Hong Kong, S.A.R. China. Appendix I Version: 1.0 Page 4/59

5 International Standards The new uniform Carrier B/L and Carrier SWB conform to international standards, including the UCP 500 (Uniform Customs and Practice for Documentary Credits). The requirements of current and known future security legislations (such as Advanced Manifest Requirements ) have been considered concurrently. Country Issues Country-specific issues relating to the use of the Carrier Bs/L are NOT covered in this guide. They are addressed separately (Examples: U.S. FMC regulations and internal filing procedures and costs, U.S. AMS requirements, Canadian ACI 24-hour rule, AFR- rules for Imports into Japan, Brazilian Import regulations, European and Australian fumigation requirements, Chinese freight forwarding and NVOCC licensing regulations etc.). You need to view the respective Station Profiles for the respective destination. Insurance The insurance is covered by a reputed insurance company. Claims The current structures, policies, procedures and practices on handling of claims as per valid claim instructions have to be adhered to. Respective instructions are advised separately (see also and laid down in the Carrier s Claim Handling Procedure. Accounting The accounting matters are to be handled as per valid instructions of the Carrier. Respective instructions will be advised separately (see also Mandatory Use The use of Carrier B/L is mandatory for ALL and ANY ocean bound shipments shipped by and consigned to an officially appointed Agent. Any other type of Bill of Lading form is not allowed to be used further on. The Appendix I forms an integral part of the Agency Agreement. This manual has to be distributed as-is and explained to EVERY employee of both export and import departments involved in processing, issuing and/or signing of Carrier B/L, Carrier SWB or other related documents. The training has been recorded with signature of respective persons. Appendix I Version: 1.0 Page 5/59

6 2 Use and Issuance of Carrier B/L and SWB The documents (Carrier B/L and Carrier SWB) give evidence of the conclusion of the contract covering the carriage. It identifies the contract parties (Carrier, Shipper, Merchant), what is being carried (Goods) and main voyage information (Vessel s name, Voyage No. etc.). It also contains the terms and conditions for the carriage of goods and outlines the rights and responsibilities of each party. The Carrier B/L and Carrier SWB should be issued by the authorized Carrier s Agent in the Port of Origin for own controlled shipments only, which are subject to Carrier s rate agreement, booking reference or service contract/carrier-to-carrier agreement (this both are for all U.S. related shipments only) with the master carrier. The language in the Carrier B/L and Carrier SWB is English. For any deviation from this process please contact Carrier s management (management@pyramidlines.com) for approval. It is strictly forbidden to issue Original Carrier Bs/L or Sea Waybill at destination in case the Agent at origin is not authorized. If the Place of Payment is different than shipment ports involved in the transport and mentioned on the front page (also called Page 2) of the B/L, origin office has to inform with a separate message the respective cross trade office collecting freight and charges for the shipment. Following information has to be stated in the message for collection of due amount: B/L NO. - POL/POD CONTR NO. S/ NP/ DEST: PLACE OF PAYMENT:STATE THE LOCATION VESSEL/ VOYAGE It is strictly forbidden to issue any Carrier B/L or Carrier SWB for - non-controlled shipments! - charter business (Carrier s insurance does not cover liabilities resulting from such business)! There is a separate Operational Procedure for Chartering, which applies for those shipments. The Carrier B/L and Carrier SWB should be used exclusively for: Full Container Load (FCL) Less-than-Container Load (LCL) Regular Break bulk liner shipments, where there is no Booking Note or Charter Party involved Appendix I Version: 1.0 Page 6/59

7 The Carrier B/L, representing the title on the goods (document of title), depending on the merchant s need, it can either be issued as negotiable or as a non-negotiable document. The Original Carrier B/L gives the holder a right to receive the goods, or access to the value they represent, so treat them with utmost care. Therefore the Original Carrier B/L can only be handed out to the authorized party, who generated the booking and carries the responsibility of the ocean transport as per corresponding Incoterms. As Carrier SWB, it is a simple contract of carriage without representing the title on the goods. It only gives evidence of a contract for transportation. Under no circumstances, both Carrier B/L and Carrier SWB, may be issued for the same shipments. Only duly Agent s authorized personnel are allowed to sign the Carrier B/L and Carrier SWB. A signature card as per given format (see attachment B) must be maintained by the office manager and to be provided to the Carrier. The signatories on each signature card are to be confirmed with a countersignature of the Agent s Managing Director. In case a signature card is replaced by another one, the replaced original has to be marked as VOID and kept on file by the office manager for at least 2 (two) years starting from the replacement date. The Carrier B/L must be issued - For those countries where laws and regulations require or compel the production of a paper Bill of Lading or - If required by Letter of Credit (L/C) or - Upon special request of the customer. The Carrier SWB should be issued - If no Carrier B/L is requested by the customer and - If permitted by country rules and regulations, both at origin and destination! - For combined Sea-Air/Air-Sea shipments - For other combined transport shipments A Verify Copy or Draft of the Carrier B/L or Carrier SWB in the form of a PDF file can be send to the Shipper/Merchant prior to issuing the actual document. The electronic document must clearly indicate the description Verify Copy or Draft. The Shipper/Merchant should check and confirm the correctness of data and approve the Verify Copy or Draft in writing. Appendix I Version: 1.0 Page 7/59

8 Under no circumstances, the Verify Copy or Draft should be used as actual transport document. It is strictly forbidden to upload Original Carrier B/L s to Onescan, you can only only upload non-negotiable Copies. 2.1 Use and Function of the Carrier B/L The Carrier B/L has the following functions: It is a receipt of a consignment; the Carrier certifies the receipt of the goods as stated in the Carrier B/L for the transport between specified locations. It is a document of title, proving the ownership of the goods, whether made out To order (negotiable) or to a named Consignee (non-negotiable). It outlines the terms and conditions of the contract of carriage between Shipper/Merchant and Carrier for the transport of goods as stated in the Carrier B/L. A Carrier B/L is a fully negotiable document (like Cheques or Insurance Certificates) and ownership in the goods is transferable from one party to another by proper endorsement of the Carrier B/L Issuance of Carrier B/L (see flowchart of Attachment A) Carrier Bs/L are issued in sets of originals. The number of originals issued is always indicated on the Carrier B/L (see box 28). Each Original Carrier B/L has equal value. The term full set of Carrier Bs/L means a set of all signed originals. Three original Bs/L is the accepted industry standard. When mailing Original Carrier Bs/L to overseas offices the full set should be split. The Agent has to ensure that the whole content of the Carrier B/L, especially ports, vessel s name & voyage number, descriptions of goods, On-Board date (if required), must be identical to the information contained in the Master (Ocean) B/L (Back-to- Back). Exception: Carrier s consolidated containers because the Carrier B/L is issued as LCL Carrier B/L for each single shipment whereas the Master (Ocean) B/L shows only the consolidated Carrier s container. It is prohibited to issue a Carrier B/L for any purpose, without having arranged for the ocean transport or for goods, not yet in in your possession. Generally the Date of Issue should be exactly the same as the date of receipt of the goods. Backdating or Postdating of the Carrier B/L in order to comply with letter of credit terms is strictly prohibited. Appendix I Version: 1.0 Page 8/59

9 This is a fraudulent activity and the Agent will be held fully (and even personally) liable for all losses arising there from. Under no circumstances, ETA Date may be inserted in the Carrier B/L. The Carrier B/L is a Received for shipment Bill of Lading. It confirms only the receipt of the goods but NOT the loading on board. It can be accepted under documentary credits only if it is expressly permitted or if the credit stipulates a document covering a multimodal transport. It is therefore not necessary to mention the notation Received for shipment on the Carrier B/L. If the customer requests a Shipped on Board Carrier B/L or if it is necessary due to any other requirements, the Agent may issue such Carrier B/L only after having received the corresponding Master (Ocean) B/L with the same Shipped on Board remark/stamp and identical date (Back-to-Back). The Shipped on Board <Date> notation should be made within the part description of goods. The on board date can differ from the Date of Issue. The Agent must sign the Carrier B/L as agents for and on behalf of PYRAMID LINES Ltd. as carrier. The signature of the Carrier B/L needs to be a physical signature and not a stamped signature. Preprinted stamped signatures are strictly prohibited as it needs to be handwritten signature on the B/L. The authorized Signature needs to be documented on the respective Signature Card of the issueingstaion. A signed non-negotiable copy or photocopy of the original must be retained in the file for signatory verification and any arising legal requirements. Any Bill of Lading is without notation is a clean Bill of Lading. Therefore Clean on Board notation must not be shown on the Carrier B/L. A clean transport document is one which bears no clause or notation which expressively declares a defective condition of the goods and/or the packaging. There are two possibilities two Switch B/L: a. Request to change e.g. POL/POD/ etc Not Allowed b. change only refers to shipper and/or consignee This is Common practice in shipping usually when traders are involved. The change only refers to shipper and/or consignee in order not to disclose the real exporter to the real receiver. In principle, the Agent should not accept a request for Switch Bills of Lading (changing POR/ POL/ POD/ POD or anything in the description of goods) as this is a risky practice, especially when having two sets of Bills of Lading in circulation for the same shipment. In any case, such action has to be taken up with and confirmed by the Carrier. It is possible to issue a Second set of Bill of Lading BUT following conditions should be fulfilled: Appendix I Version: 1.0 Page 9/59

10 1. Possession of a full set of Original B/L s which are duly endorsed. 2. All duties such as charges and freight should be paid before switching the B/L Information. This has to be verified by the Agent changing the B/L! 3. The only required changes should be related to Consignee, Shipper and Notify and that not description of the cargo etc. 4. There should be written instruction from the trader with the new details to switch the B/L which concerns Shipper/ Consignee and Notify. Never accept promises only valid documents! Never accept unwritten or unclear instructions! Never mail, or fax any blank Carrier Bs/L to any client or other third party. If a sample Carrier B/L is required, invalidate this Carrier B/L by diagonally marking this Carrier B/L as NOT VALID FOR CARRIAGE extending over the last two-thirds of the Carrier B/L form. Never send a scanned Original Carrier Bs/L to anyone (even internally), always send a Non- Negotiable Copy. Verify the delivery Agents details shown on the Carrier B/L to be current and correct. Blank Original Carrier B/L forms have to be stored under LOCK & KEY in a separate lockable room with limited and controlled access by authorized personnel. The blank forms should never be handed out to anyone who is not authorized or any thirdparty company. A procedure for tracking the use of Original Carrier Bs/L is to be implemented and monitored by the respective office manager. A signed and dated receipt from the party to whom you hand over Original Carrier B/L has to be obtained and appropriate duty of care when selecting the dispatch type and provider has to be applied. Make sure the address to which you sent the Carrier Bs/L is complete and correct. Appendix I Version: 1.0 Page 10/59

11 Appropriate types of dispatch are: - Pickup at issuing office by either customer personnel against signed and dated receipt or customer appointed messenger or courier service against signed and dated receipt, - Delivery to customer by your own personnel or your appointed messenger or courier service against signed and dated receipt or registered mail. Never send Original Carrier Bs/L to a P.O. Box address Corrections to Carrier B/L Corrections or changes to the Carrier B/L may be made only, when the full set of the Carrier B/L is presented and the contract of carriage has not been fulfilled yet. Any corrections may be made to the Carrier B/L only upon consultation and agreement with the respective sending/receiving office and upon collection of all original transport-related documents. It must be ensured that the master carrier (VOCC or other NVOCC) amends the Master (Ocean) B/L accordingly. Minor corrections, e.g. changes to the routing, gross weight, measurement, number of packages etc., may be done by stamping Correction Approved [name of Agent] as agents for and on behalf of PYRAMID Lines Ltd. as carrier on all Original Carrier B/L and Non-negotiable copies. In case of major corrections, e.g. different Shipper and/or Consignee, a new set of Carrier B/L may be issued only after collection of the first full set of Original Carrier Bs/L and Non-negotiable copies! An official legal document (e.g. customs export document) supporting or confirming the new information must be provided by the requesting party. Never alter the contents of a Carrier B/L once you have released the Carrier B/L (= the originals have physically left your office) for any reason without having the complete first set (= ALL originals) of properly endorsed Original Carrier Bs/L back in hands. Never issue a duplicate set of Original Carrier B/L for any reason without having complete first set (= ALL originals) of properly endorsed Original Carrier Bs/L back in hands. Appendix I Version: 1.0 Page 11/59

12 2.1.3 Specifications of Goods in Carrier B/L In case the specifications of goods are too lengthy to fit into the Carrier B/L box Particulars furnished by Shipper (see box 16) an additional page(s) may be attached. This may be done by either by attaching a) additional Carrier B/L page(s) or b) plain white sheet(s) of paper as a rider or c) Cargo manifest. If using additional Carrier B/L page(s), only the last page of the Carrier B/L should be signed. The bottom right-hand corners of the first pages should be cut and a stamp should be placed over all documents so that it is clear that all documents belong together. It is strictly forbidden to simply attach a letter to the B/L which shows the Cargo Description and was not produces by Agents System. It is strictly forbidden to simply copy the Commodity Description from the order of the Customer. If using plain white paper as a rider, only the first page must be signed. It must be clearly mentioned on the face of the Carrier B/L that the specifications of goods are continued on the attached pages. Both Carrier B/L and attached sheets should be folded, tacked together, signed and the bottom right-hand corners of the first pages should be cut and a stamp should be placed over all documents so that it is clear that all documents belong together. The additional pages should contain the following information: - B/L Number - Vessel s name & Voyage No. - Port of Loading - Port of Discharge - Place of Delivery (if applicable). Alternatively, another option is to attach a separate cargo manifest. It must be mentioned on the face of the Carrier B/L that a manifest is attached to the document. Appendix I Version: 1.0 Page 12/59

13 2.1.4 Sample of Carrier B/L incl. detailed Instructions The following sample Carrier B/L explains the content of the different boxes and fields: Appendix I Version: 1.0 Page 13/59

14 No B/L Box / Field Explanation of Content 1 Shipper/ Exporter Complete name, address, postal code, telephone and fax number of Shipper. Should the Shipper be represented by a forwarding agent, this may be reflected here accordingly. 2 Consignee or Order Complete name, address, postal code, of Consignee person/company to whom the goods have to be delivered. This address can vary from the delivery address. Please see Notify Party Complete name, address, postal code, of party other than the Consignee to be advised of the arrival of the goods. Completion of this box is optional. 4 Document Number Pre-printed Number on the Document. 5 B/L Number Unique number as per instruction of the Carrier (generated by Carrier s System) 6 References Nos. Typically used for reference numbers of the actual Shipper or Customs or TLI- Number for shipments into USterritories. 7 Forwarding Agent This box may be used for name, address and references numbers of the involved forwarding agent. 8 For Delivery of Goods apply to This box should only contain the name of the Carrier s authorised handling Agent at destination 9 Vessel/Voyage Name of the vessel an voyage number of the first seagoing as shown on Master (Ocean) B/L (in case of a feedermove, the feedervessel needs to be mentioned) 10 Place of receipt If filled in, this box shows the inland origin location where Carrier s Agent receives the goods. It is important to specify the location, e.g. door, terminal or CFS (please see article definition point ). 11 Port of loading Origin seaport where goods are loaded on first vessel (export port). 12 Port of discharge Destination seaport where goods will be discharged from last vessel (import port). 13 Place of Delivery If filled in, this box shows the inland destination location where Carrier s Agent delivers the goods. It is important to specify the location, e.g. door, terminal or CFS (please see article definition point ). 14 Point ( State) of Origin or FTZ Number U.S.- State or U.S territory or U.S. possession where part of the cargo ( in case of lcl-shipments) is originated Appendix I Version: 1.0 Page 14/59

15 N B/L Box / Field Explanation of Content o 15 Type of Move Describes the Type of Mode the Ocean Transport has been booked from the Customer (e.g. Door/ Door, CY/CY, Door/ Rail etc.) For OFS- Countries this information is mentioned under Service. 16 Particulars as furnished by Shipper The entire field must be identical to the description of goods on the Master (Ocean) B/L (including possible remarks/notations/stamps) except for LCL goods loaded into Carrier s consolidated containers. In case the content does not fit into this field, a second page may be attached as a rider (please see article 2.1.3). Please pay special attention to article before stating Shipped on Board! In case a transhipment and a customer insists on a statement, which is the ocean vessel carrying the box, following statement can be inserted in this box: Transhipment at by m/v. voy 17 Container Nos.; Seal Nos.; Marks and Nos. 18 Numbers of Packages subject to change without notice Contains the Container Nos. (for FCL), Seal Nos. (if required), Marks and Nos. (for LCL and break bulk). For LCL, it is recommended to mention the Cont. No. of the consolidated container. Contains the exact number and type of exterior (!) packages as declared by the Shipper. Package is the largest individual unit, including palletized units and each container stuffed and sealed by the Shipper. In case of full container load (FCL), only the number of container must be indicated here and not the number of packages inside the container! 19 Description of Goods This field must show the accurate description of the shipped goods as declared by the Shipper. Each Carrier B/L has to state SAID TO CONTAIN. SHIPPER S LOAD, STOWAGE, COUNT AND SEAL without exception! If more than one (1) FCL container will be shipped, the exact number of packages and gross weight of each individual container must be inserted. For DG shipments, the full and precise details (including proper shipping name, IMO class, UN number and packing group) must be shown (please see article 9.). If the L/C requires a specification of the goods, any additional information must be noted here. If cargo value is inserted, the agent must add: CARGO VALUE NOT TO BE CONSIDERED AS AD VALOREM AS PER CLAUSE 7.4. OF THE B/L CONDITIONS. In case of US-territory shipments please make sure you insert the Tariff Rate-ID on the B/L. Appendix I Version: 1.0 Page 15/59

16 B/L Box / Field Explanation of Content 19 Description of Goods For LCL, it is recommended to mention the Cont. No. of the consolidated container and state before that: STUFFED INTO or LOADED INTO or PARTLOAD INTO. In case of a Split B/L the other B/L number which is important for the release of the goods needs to be mentioned here with following remark: RELEASE OF CARGO ONLY AGAINST PRESENTATION OF PYRAMID LINES BILL OF LADING Number.. In case of US-territory shipments please make sure you insert the Tariff Rate-ID on the B/LIn 20 Gross Weight Contains the Gross Weight of the whole shipment with correct unit of measure (e.g. kgs, lbs etc) 21 Measurement Contains the gross weight and measurement of the entire shipment with correctly unit of measure, e.g. cbm, cft 22 Carrier Receipt Total Number of Container or other Packages or Units received by the Carrier 23 Freight and Charges payable at This box is used to summarize the total number of containers or other packages or units received for shipment as confirmed in the field 18. Please state the Location/ Office where the payment should be settled/ paid. If the location is different than the mention location on the front page, please see article Freight and Charges This box may be used to show detailed ocean freight and other charges and the applicable currencies. 25 Prepaid at If ocean freight is payable at origin, this box must contain the place of payment or simply ORIGIN. If ocean freight is payable at destination, this box must remain blank. 26 Payable at If ocean freight is payable at destination, this box must contain the place of payment or simply DESTINATION. If ocean freight is prepaid at origin, this box must remain blank. 27 Declared value from Merchant 28 Number of Original Bills of Lading If not otherwise requested by the Shipper, this box must show NO VALUE DECLARED. If the Shipper requests to ship the goods in accordance with Carrier B/L clause 7.4. (Ad Valorem), the freight shall include the extended liability for the Carrier. Recommendation: Agent should set NO VALUE DECLARED NVD as default, i.e. once Shipper requests ad valorem, respective changes to be made. This box must contain the number of Original Bs/L issued, usually 3/THREE Appendix I Version: 1.0 Page 16/59

17 N O B/L Box / Field Explanation of Content 29 Place and Date of Issue of B/L 30 Signed and issued as agents for and on behalf of PYRAMID LINES Ltd. as carrier This box contains the place where the Carrier B/L is issued. The Carrier B/L date should be exactly the same as the date of receipt of the goods. If it is a shipped on board B/L this date needs to be exactly the same as the date on the Master B/L. This field must contain the name of the issuing Carrier s Agent (legal entity name) and signature of the authorized person as per Agent s Carrier s signatory cards. The signature of the Carrier B/L needs to be a physical signature and not a stamped signature. Preprinted stamped signatures are strictly prohibited as it needs to be handwritten signature on the B/L Carrier B/L Transport Modes The transport route for which the Carrier contracts as carrier depends on how the Carrier B/L is issued. The Agent must distinguish between the following transport modes: Port-to-Port Point-to-Port Port-to-Point Point-to-Point The transport modes needs to be corresponding to the Incoterms, e.g. there should not be any precarriage for a FOB- Shipment, etc. Definition Port : Origin and destination seaport, where cargo/container is loaded or discharged. Definition Point : Inland location where the Carrier receives or delivers the cargo/container, i.e. Merchant s warehouse, container freight station* (CFS), rail terminal/rail ramp* (RR), barge terminal* and inland container depot* (ICD). For the places, marked with *, a specification should be made in order to identify the movement type, e.g. Hydarabad ICD, Chicago RR, Nuernberg CFS. If no specification is given, it automatically refers to a door movement (Merchant s warehouse). Appendix I Version: 1.0 Page 17/59

18 Carrier B/L issued for "Port-to-Port Shipment A Carrier B/L issued for port-to-port shipment covers only the transport from port of loading to port of discharge. The boxes Place of receipt (10) and Place of Delivery must remain blank Carrier B/L issued for "Point-to-Port Shipment A Carrier B/L issued for point-to-port shipment covers the transport from place of receipt to port of discharge. The box Place of Delivery must remain blank. The Carrier B/L is than a Combined Transport B/L Carrier B/L issued for "Port-to-Point Shipment A Carrier B/L issued for port-to-point shipment covers the transport from port of loading to place of Place of Delivery. The box Place of Receipt (10) must remain blank. The Carrier B/L is considered a Combined Transport B/L Carrier B/L issued for "Point-to-Point Shipment A Carrier B/L issued for point-to-point shipment covers the transport from place of origin to place of delivery. The Carrier B/L is considered a Combined Transport B/L Straight and Order Carrier B/L/ Release of Cargo The Carrier B/L can be issued as a Straight B/L (non-negotiable) or an Order B/L (negotiable). Different procedures apply for release of cargo depending on whether a Straight B/L or an Order B/L has been issued. The Carrier B/L is a document of title to the goods mentioned therein. Only the holder of the Original Carrier B/L is entitled to take delivery of the goods. Thus, the Agent has to ensure that the goods are delivered to the correct party, as per Carrier B/L issued, upon presentation of an Original Carrier B/L. Upon collection of one Original Carrier B/L, the others become void. It is absolutely and strictly forbidden to release the goods without collection of at least ONE of the Original Carrier B/L. Appendix I Version: 1.0 Page 18/59

19 Straight Carrier B/L A non-negotiable document made out to a named consignee with the absence of the term to order is called a Straight Carrier B/L. The consignee named in the Carrier B/L is the entitled receiver of the goods. Shipper: Consignee or Order: actual Shipper complete consignee name and address The title to the goods remains with the named Consignee unless this Consignee enters into a separate contract of assignment and surrenders the Carrier B/L to another party (being the new owner of the goods). Appendix I Version: 1.0 Page 19/59

20 Requirements for release of goods : - At least one (1) Original Carrier B/L must be collected AND - Delivery of the goods is done only to the nominated Consignee unless the claiming party provides a statement of cession. This Statement should be issued by the named Consignee, addressed to respective Carriers agent s office, stating that goods should be released to the claiming third party. - In case Shipper gives on the Straight Bill a written order to not deliver to the named consignee, such order of the shipper has to be followed without fail Order Carrier B/L An Order Carrier B/L is a negotiable document of title which may be transferred by endorsement. Endorsement is a notification of transfer usually on the back of the Carrier B/L and signed by the entitled party. It can more easily be bought, sold or traded while goods are in transit, or used for credit transactions. An Order Carrier B/L can either be issued a) To a named consignee X or b) Without a named consignee (blank endorsed / without named party). Endorsements must be made by a company stamp and handwritten signature. a) Carrier B/L issued to order of named consignee X Shipper: Consignee or Order: actual Shipper To order named consignee X Requirements for release of goods: Only the order party has the permission to dispose of the goods (entitled endorser). The following checks must be undertaken before release of goods: - One (1) Original Carrier B/L must be collected AND - Delivery of the goods to be done only to the last endorsee (completeness of the chain of endorsement must be checked) AND - Signature and stamp of the last endorsee. It is absolutely and strictly forbidden to release the goods without collection of at least ONE of the Original Carrier B/L. b) Carrier B/L issued to order (blank endorsed / without named consignee) Shipper: Consignee or Order: actual Shipper To order (blank endorsed / without named consignee) Appendix I Version: 1.0 Page 20/59

21 The purpose is to protect the Shipper against the Buyer s obtaining the goods before he has paid or accepted the relative bank draft. Requirements for release of goods: Only the Shipper has the right to dispose of the goods (entitled endorser). If endorsed by the Shipper, the Agent may release the goods against presentation of Original Carrier B/L duly endorsed by the Shipper to the party presenting the Original Carrier B/L. The following checks must be undertaken before release of goods: - One (1) Original Carrier B/L must be collected AND - must be endorsed by the Shipper AND - Delivery of the goods to be effected only to the last endorsee (completeness of the chain of endorsements must be checked) AND - Signature and stamp of the last endorsee. It is absolutely and strictly forbidden to release the goods without collection of at least ONE of the Original Carrier B/L Release of Goods without Original Carrier B/L (refer to Attachments B E) When the full set of Original Carrier B/L was lost in Merchant s custody, a request for release of cargo without presentation of an Original Carrier B/L or issuance of a second set of Originals in lieu of the first lost set may be raised. First step should always be to contact the Origin Agent to verify that the full set has been handed out and is not in the hands of the Origin Agent. Then, the goods may, upon written approval of the Agent s Managing Director, be released to the named Consignee subject to - a bank guarantee covering 200% of the commercial invoice value of the goods or USD 25,000 (whichever is greater), valid for at least 24 months and - a letter of indemnity duly signed and stamped by the Merchant as per Carrier s template. Both documents have to be issued in favour of the Carrier and its Agents. In case of To order (blank endorsed / without named party) Carrier Bs/L, the Shipper must explicitly authorise the release of the goods in writing beforehand to ensure that they got paid Appendix I Version: 1.0 Page 21/59

22 It is prohibited to release the goods or issue a second set of Original Carrier B/L as per above procedure, when written instructions have been received from the Shipper not to do so. A mandatory remark has to be added underneath the description of goods in the Carrier B/L, when request is made for issuance of a second set of Originals as follows: DUPLICATE BILL OF LADING The Carrier PYRAMID LINES Ltd. herewith declares that the first set of original Bills of Lading with the no.... is to be considered null and void Telex Release Telex Release is the industry term for the release of goods when the Original Carrier B/L has been surrendered at origin or any other Carrier s Representative Agents Office. Although this is still referred to as a Telex Release, today the release is almost always made by . If the Carrier B/L is issued To Order, the Shipper must endorse each of the Original Carrier B/L on the reverse as follows: We hereby authorize PYRAMID LINES Ltd. and <name of agent> to release the cargo under subject B/L to <Consignee...> at destination. Endorsement must be made by a company stamp and clearly signed by an authorized person from the Shipper s firm with respective designation. Telex Release may be effected by the surrender of the full set of Original Carrier B/L by the Shipper, and the Shipper s written authorization to the Carrier and its Agent to deliver the goods to a named consignee. The standard Letter of Request for Telex Release needs to be filled in and duly signed and stamped by the Shipper. (refer to Attachment F) The origin Agent has to ensure the collection of freight or other charges, if any, due from the Shipper prior to giving release instructions. The origin Agent must communicate with the destination Agent on the Telex Release procedure completion and about the freight and other charges to be collected, if any. (refer to Attachment F) The destination Agent has to ensure the collection of freight and other charges, if any, due from the named consignee before release. Appendix I Version: 1.0 Page 22/59

23 2.2 Use and Function of the Carrier SWB The Carrier SWB is for conveyance of the goods only. It is a receipt for the goods to be transported and gives evidence of a contract of carriage. As a transport contract the Carrier SWB fulfils mostly the same function as a Carrier B/L. Unlike the Carrier B/L, the Carrier SWB is not a document of title to the goods and is not negotiable. The main advantage of a Carrier SWB is that it simplifies the documentation procedure through eliminating the need for physical transfer of paper documents. Although local law and practise may require the surrender of paper documents, the Carrier SWB does facilitate paperless transactions. A simple fax copy or attachment to the Consignee and/or the overseas Agent is all that is needed to release the goods to the nominated Consignee. Considering that the Carrier SWB is not negotiable and represents a reduced risk from the Carrier s point of view, it should be recommended to the customers for preferable use. For Countries where the System has the ability to send Sea Waybills directly from the System by , this should be the preferred way to send those documents to customers/ overseas Agents etc Issuance of Carrier SWB The Carrier SWB may only be issued straight, i.e. exclusively to a nominated Consignee. To issue it To Order in the Consignee box is strictly forbidden! When issuing a Carrier SWB, the liability of the Carrier for loss, damage or delay to the goods is such of a carrier (NVOCC) and in accordance with the terms and conditions printed on the reverse side of the Carrier SWB (also available on The Agent has to ensure that the content of the Carrier SWB (especially, ports, vessel s name & voyage number, Particulars as furnished by Shipper, on board date, if required) must be identical to the information contained in the Master (Ocean) B/L (back-to-back). Exception: LCL goods loaded into Carrier s consolidated containers because the Carrier B/L is issued as LCL Carrier B/L for each single shipment whereas the Master (Ocean) B/L shows only the consolidated container. It is prohibited to issue a Carrier SWB for banking (L/C) or any other purpose, without having arranged for the ocean transport. The Carrier SWB Date of Issue at the bottom should be exactly the same as the date of issue/printing of the Carrier SWB. The Shipper has the right to request the Carrier Appendix I Version: 1.0 Page 23/59

24 SWB after Carrier s Agent has taken over his goods/container either at the place of receipt or terminal gate-in. Therefore the Date of Issue usually is the same as the date the goods are received. It is not allowed to backdate or postdate, i.e. to show another Shipped on Board <date> than stated in the Master (Ocean) B/L. This is a fraudulent activity and the Agent will be held fully liable for all loss arising there from. The Carrier SWB is a Received for shipment Waybill. It confirms the receipt of the goods but not the loading on board. It can be accepted under documentary credits only if it is expressly permitted or if the credit stipulates a document covering a multimodal transport. It is therefore not necessary to state Received for shipment in the Carrier SWB. If the merchant requests a Shipped on Board Carrier SWB, the Agent may issue such Carrier SWB only after having received the corresponding Master (Ocean) B/L with the same Shipped on Board notation and identical date (back-to-back). The Shipped on Board <date> mark should be made within the description of goods. The on board date can differ from the Date of Issue. Under no circumstances, ETA <Date> may appear in the Carrier SWB. A Clean on Board notation must not be inserted in the Carrier SWB. A clean transport document does not bear any clause of notation which expressively declares a defective condition of the goods and/or packaging. The Agent must sign the Carrier SWB as agents for and on behalf of PYRAMID LINES Ltd. as carrier. A signed copy or photocopy must be retained in the file for signatory verification and possible legal requirements Corrections to Carrier SWB Corrections may be made to the Carrier SWB only when the first set of issued Carrier SWB has been presented by customer and the contract of carriage has not been fulfilled yet.. Any corrections may be made to the Carrier SWB only upon consultation and agreement with the respective sending/receiving office. It must be ensured that the master carrier (VOCC or other NVOCC) amends the Master (Ocean) B/L accordingly. Minor corrections, e.g. changes to the routing, gross weight, measurement, number of packages etc., may be done by stamping Correction Approved [name of Agent] as agents for and on behalf of PYRAMID Lines Ltd. as carrier on all issued Carrier SWB and copies thereof. Appendix I Version: 1.0 Page 24/59

25 In case of major corrections, e.g. different Shipper and/or Consignee, a new Carrier SWB may be issued only after collection of the initial Carrier SWB. The declared void first SWB should be kept in the file. An official legal document (e.g. customs export document) supporting or confirming the new information must be provided by the requesting party Specification of Goods in Carrier SWB In case the specifications of goods are too lengthy to fit into the Carrier SWB box Particulars furnished by the Shipper, an additional page(s) may be attached. This may be done by either; a) attaching additional Carrier SWB pages or b) by attaching a plain white sheet of paper as a rider. If using additional Carrier SWB page(s), only the last page of the Carrier SWB should be signed. The bottom right-hand corners of the first pages should be cut and a stamp should be placed over all documents so that it is clear that all documents belong together. If using plain white paper as a rider, only the first page must be signed. It must be clearly mentioned on the face of the Carrier SWB that the specifications of goods are continued on the attached pages. Both Carrier SWB and attached sheets should be folded, tacked together, signed and the bottom right-hand corners of the first pages should be cut and a stamp should be placed over all documents so that it is clear that all documents belong together. The additional pages should contain the following information: - Waybill Number - Vessel s name & Voyage No. - Port of Loading - Port of Discharge - Place of Delivery (if applicable). Appendix I Version: 1.0 Page 25/59

26 2.2.4 Sample of Carrier SWB (incl. detailed Instructions) The following sample Carrier SWB explains the content of the different boxes and fields: Appendix I Version: 1.0 Page 26/59

27 No SWB Box / Field Explanation of Content 1 Shipper/ Exporter Complete name, address, postal code, telephone and fax number of Shipper. Should the Shipper be represented by a forwarding agent, this may be reflected here accordingly. 2 Consignee Always the Complete name, address, postal code, of Consignee person/company to whom the goods have to be delivered. This address can vary from the delivery address. Please see and Notify Party Complete name, address, postal code, of party other than the Consignee to be advised of the arrival of the goods. Completion of this box is optional. 4 Document Number Pre-printed Number on the Document 5 Sea Waybill No. Unique number as per instruction of the Carrier 6 Reference Nos. Typically used for reference numbers of the actual Shipper or Customs or TLI- Number for shipments into US- territories. 7 Forwarding Agent This box may be used for name, address and references numbers of the involved forwarding agent. 8 For Delivery of Goods apply to This box should only contain the name of the Carrier s authorised handling Agent at destination. 9 Vessel/Voyage Name of the vessel an voyage number of the first seagoing as shown on Master (Ocean) B/L (in case of a feedermove, the feedervessel needs to be mentioned) 10 Place of Receipt If filled in, this box shows the inland origin location where Carrier Agent receives the shipment. It is important to specify the location, e.g. door, terminal or CFS (please see article definition point ). 11 Port of loading Origin seaport where goods are loaded on first vessel (export port). 12 Port of discharge Destination seaport where the goods will be discharged from last vessel (import port). 13 Place of Delivery If filled in, this box shows the inland destination location where Carrier s Agent delivers the shipment. It is important to specify the location, e.g. door, terminal or CFS (please see article definition point ). 14 Point ( State) of Origin or FTZ Number U.S.- State or U.S territory or U.S. possession where part of the cargo ( in case of lcl-shipments) is originat Appendix I Version: 1.0 Page 27/59

28 No SWB Box / Field Explanation of Content 15 Type of Move Describes the Type of Mode the Ocean Transport has been booked from the Customer (e.g. Door/ Door, CY/CY, Door/ Rail etc.) For OFS- Countries this information is mentioned under Service. 16 Particulars as furnished by Shipper 17 Container Nos.; Seal Nos.; Marks and Nos. 18 Number Packages or Units The entire field must be identical to the description of goods on the Master (Ocean) B/L (including possible remarks/notations/stamps) except for LCL cargo loaded into Carrier s consolidated containers. In case the content does not fit into this field, a second page may be attached as a rider (please see article 2.1.3). Please pay special attention to article before stating Shipped on Board! In case a transhipment and a customer insists on a statement, which is the ocean vessel carrying the box, following statement can be inserted in this box: Transhipment at by m/v. voy subject to change without notice Contains the Container Nos. (for FCL), Seal Nos. (if required), Marks and Nos. (for LCL and break bulk). Contains the exact number and type of exterior (!) packages as declared by the Shipper. Package is the largest individual unit, including palletized units and each container stuffed and sealed by the Shipper. In case of full container load (FCL), only the number of container must be indicated here and not the number of packages inside the container! 19 Description of Goods This field must show the accurate description of the shipped goods as declared by the Shipper. The first line must state: Every Carrier B/L has to state SAID TO CONTAIN. In case of full container load (FCL), the Agent must add: SHIPPER S LOAD, STOWAGE, COUNT AND SEAL must be inserted when the activity is not performed by the Agent.without exception!if more than one (1) FCL container will be shipped, the exact number of packages and gross weight of each individual container must be inserted. For DG shipments, the full and precise details (including proper shipping name, IMO class, UN number and packing group) must be shown (please see article 9.). If the L/C requires a specification of the goods, any additional information must be noted here. If cargo Appendix I Version: 1.0 Page 28/59

29 No SWB Box / Field Explanation of Content 19 Description of Goods value is inserted, the agent must add: CARGO VALUE NOT TO BE CONSIDERED AS AD VALOREM AS PER CLAUSE 7.4 OF THE B/L CONDITIONS.. For LCL, it is recommented to mention the Cont. No. of the consolidated container and state before that: STUFFED INTO or LOADED INTO or PARTLOAD INTO. In case of a Split B/L the other B/L number which is important for the release of the goods needs to be mentioned here with following remark: RELEASE OF CARGO ONLY AGAINST PRESENTATION OF PYRAMID LINES BILL OF LADING Number.. In case of US-territory shipments please make sure you insert the Tariff Rate-ID on the B/L 20 Gross Weight Contains the Gross Weight of the whole shipment with correct unit of measure (e.g. kgs, lbs etc) 21 Measurement Contains the gross weight and measurement of the entire shipment with correctly unit of measure, e.g. cbm, cft 22 Carrier Receipt Total Number of Container or other Packages or Units received by the Carrier This box is used to summarize the total number of containers or other packages or units received for shipment as confirmed in the field Freight and Charges payable at: Please state the Location/ Office where the payment should be settled/paid. If the location is different than the mention location on the front page, please see article Freight and Charges This box may be used to show detailed ocean freight and other charges and the applicable currencies. 25 Prepaid at If ocean freight is payable at origin, this box must contain the place of payment or simply ORIGIN. If ocean freight is payable at destination, this box must remain blank. 26 Payable at If ocean freight is payable at destination, this box must contain the place of payment or simply DESTINATION. If ocean freight is prepaid at origin, this box must remain blank. Appendix I Version: 1.0 Page 29/59

30 No SWB Box/ Field Explanation of Content 27 Declared value from Merchant 28 Place and Date of Issue of B/L 29 Signed and issued as agents for and on behalf of PYRAMID LINES Ltd. as carrier If not otherwise requested by the Shipper, this box must show NO VALUE DECLARED NVD. If the Shipper requests to ship the goods in accordance with B/L clause 7.4. (Ad Valorem), the freight shall include the extended liability for the Carrier. Recommendation: Agent should set NO VALUE DECLARED as default, i.e. once Shipper requests ad valorem, respective changes to be made. This box contains the place where the SWB is issued. The SWB issue date should be the same as the date of receipt of the goods. If it is a shipped on board B/L this date needs to be exactly the same as the date on the Master B/L. This field must contain the name of the issuing Carrier s Agent (legal entity name) and signature of the authorized person as per Agent s Carrier signatory cards Carrier SWB Transport Modes The transport route for which the Carrier contracts as carrier depends on how the Carrier SWB is issued. The Agent must distinguish between the following transport modes: Port-to-Port Point-to-Port Port-to-Point Point-to-Point The transport modes needs to be corresponding to the Incoterms, e.g. there should not be any precarriage for a FOB- Shipment, etc. Definition Port Origin and destination seaport where cargo/container is loaded or discharged. Definition Point Inland location where the Carrier receives or delivers the cargo/container, i.e. Merchant s warehouse, container freight station* (CFS), rail terminal/rail ramp* (RR), barge terminal* and inland container depot* (ICD). For the places, marked with *, a specification should be made in order to identify the movement type, e.g. Hydarabad Appendix I Version: 1.0 Page 30/59

31 ICD, Chicago RR, Nuernberg CFS. If no specification is given, it automatically refers to a door movement (Merchant s warehouse) Carrier SWB issued for "Port-to-Port Shipment A Carrier SWB issued for port-to-port shipment covers only the transport from port of loading to port of discharge. The boxes Place of Receipt (10) and Place of Delivery (13) must remain blank Carrier SWB issued for "Point-to-Port Shipment A Carrier SWB issued for point-to-port shipment covers the transport from place of receipt to port of discharge. The box Place of Delivery must remain blank. The Carrier SWB is than a Combined Transport SWB Carrier SWB issued for "Port-to-Point Shipment A Carrier SWB issued for port-to-point shipment covers the transport from port of loading to place of delivery. The box Place of Receipt (10) must remain blank. The Carrier SWB is considered an Intermodal, Multimodal or Combined Transport SWB Carrier SWB issued for "Point-to-Point Shipment A Carrier SWB issued for point-to-point shipment covers the transport from place of origin to place of delivery. The Carrier SWB is considered a Combined Transport SWB Release of Goods The Carrier SWB can only be issued straight to a nominated Consignee. To issue To Order in the Consignee box is strictly forbidden. Shipper: Consignee: Actual Shipper Nominated Consignee Requirements for release of goods: The Agent may release the goods to the nominated Consignee or its authorized agent upon reasonable proof of identity. Delivery can be made without presentation/ collection of the Carrier SWB but the payment should be proofed in advance. Appendix I Version: 1.0 Page 31/59

32 3 Ordering Carrier B/L and SWB Forms Printing and delivery of Carrier B/L and SWB forms will exclusively be managed and controlled by the Carrier. The Carrier will provide the official order form. When placing the order, the Agent must include the following information: Name of Agent Contact person, address, phone & fax Agency Agreement Number (please refer to first page of Agency Agreement) Quantity of respective Carrier B/L and SWB forms (only full boxes) Delivery address Mode of dispatch (sea, air, truck freight costs will be for the account of the Agent) Commercial documents, if required (e.g. pro-forma invoice, customs requirements) Date and signature This information should be sent by to: Each form carries a unique document number which is pre-printed in the form. It contains a code which is especially assigned to the Agent. Therefore, the Agent may only use the Carrier B/L and Carrier SWB forms provided exclusively by the Carrier. The forms may only be used in the Territory. Any other B/L or SWB used are not covered by the Carrier s liability insurance. Therefore, any claim, losses or liabilities arising out or incurred by the use such documents not supplied by the Carrier, must be borne solely by the Agent. The orders have to be placed in due time (at least three weeks plus transit-time depending on transport mode) and should cover a larger quantity (half year consumption) in order to minimize costs. 4 Issuance of Master (Ocean) B/L or SWB by VOCC The description of goods in the Master (Ocean) B/L respectively Sea Waybill (inclusive possible remarks/notations/stamps) must be identical to the information contained in the Carrier B/L respectively Carrier SWB (back-to-back). Exception: LCL cargo loaded into Carrier s consolidated container because the Carrier B/L is issued as LCL Carrier B/L for each single shipment, whereas the Master (Ocean) B/L or Sea Waybill only shows the consolidated container. The Master (Ocean) B/L respectively Sea Waybill should be issued as follows: Appendix I Version: 1.0 Page 32/59

33 Shipper: Legal name of Carrier s origin Agent as agents for and on behalf of PYRAMID LINES Ltd. Consignee: Legal name of Carrier s destination Agent (as per Appendix V) as agents for and on behalf of PYRAMID LINES Ltd. Notify Party: <same as Consignee> The addition "as agents for and on behalf of PYRAMID LINES Ltd." is very important in order to ensure the recovery rights of the Carrier against the shipping line! In countries where it is prohibited to insert the name of the NVOCC in the Consignee box due to local regulations, it is allowed to directly consign the Master (Ocean) B/L respectively Sea Waybill to the Carrier s destination Agent without the addition as agents for and on behalf of PYRAMID LINES Ltd.. When mailing Original Master (Ocean) B/L to overseas, the full set must be split 2/3 of the original B/L to be sent to the Carrier s destination Agent, 1/3 original B/L to remain in the export file of the Carrier s origin Agent. If the name of a company other than a Carrier Agent is mentioned anywhere in the Master document for whatever reason, the Agent has to request Original Master (Ocean) Bs/l from the VOCC (no Sea Waybill to be issued). Only duly authorized Carrier s Agents (as per Appendix V) may be indicated as Shipper and/or Consignee unless actual Consignee must be inserted (see next paragraph). The Consignee on the Master (Ocean) B/L or respectively Sea Waybill must be the same party as mentioned under For delivery of goods apply to on the Carrier B/L or Carrier SWB. In countries, where the actual Consignee must be mentioned in the Master document instead of the Carrier s Agent (see Appendix V) due to local regulations, only Original Master (Ocean) Bs/L should be issued from the VOCC (no Ocean Waybills are allowed). These Originals should be mailed to the Carrier s destination Agent and given to the nominated Consignee only upon collection of the Original Carrier B/L (or against reasonable proof of identity if a Carrier SWB has been issued). If the shipment is subject to a valid Service Contract or other type of written agreement between the Carrier and the VOCC, the Agent must insert the respective Service Contract or agreement reference number into the Master (Ocean) B/L. 5 Carrier s Shipments from/to USA via U.S. Ports Shipments from/to USA via U.S. ports are subject to specific governmental rules and regulations, pertaining to ocean transport. Under no circumstances will the Agent offer any unlawful rebate or discount to shippers, consignee or forwarding agents. Also, under no circumstances will Appendix I Version: 1.0 Page 33/59

34 the Agent accept any unlawful rebate or discount from the VOCC. A rebate or discount is legal only, when it is stated in the tariff rate, NSA (NVOCC Service Arrangement) or VOCC Service Contract. The Agent must be aware of and comply with the following: 5.1. The Agent must respect and follow the U.S. Shipping Act as well as the Rules and Regulations of the U.S. Federal Maritime Commission (FMC), for shipments from/to ports in the USA For all Carriers shipments from or to the USA, a valid FMC tariff rate must be on file with the Federal Maritime Commission (FMC) prior to receipt of goods. The respective Tariff- Line- Item (TLI) Number needs to be mentioned on the Carrier B/L The Agent must ensure that all Carrier s shipments from/to USA ports will be charged in accordance with the published FMC tariffs of the Carrier The Carrier s U.S-resident Agent s Ocean Compliance Team has been nominated to arrange the tariff filing of shipments from and to or via U.S. ports. For all shipments the respective Carrier s Agent controlling the business must inform that Carrier s office about the freight rate quoted to the cargo owner/customer, and, if necessary, this responsible Carrier s Agent s office must arrange for a FMC tariff filing through the Ocean Compliance Team, if the quoted rate does not exist on the Carrier s FMC tariff yet. The contact details are: Appendix I Version: 1.0 Page 34/59 fmc-filings@pyramidlines.com or CEVAOceanTariffFilingRequests@cevalogistics.com 5.5. For export shipments from worldwide ports and points to U.S. ports and points via US ports of entry, the Carrier s Agent at origin is responsible for ensuring that no booking will be accepted without a valid FMC tariff rate on file irrespective of whether the freight is prepaid or collect Export to USA, controlled outside the U.S. (generally freight prepaid ): The origin Carrier s Agent must ensure, prior to receipt of goods that a valid tariff rate is on file. If a valid tariff rate has been filed, the origin Carrier s agent may process the booking. If not, the origin Carrier s Agent will be responsible for arranging filing as per separate instructions (see item 5.5.) Exports to USA controlled in the U.S. (generally freight collect ): The U.S. Carrier s Agent must inform the origin Carrier s Agent of the freight rate quoted to the importer in the USA, and the tariff line item number, when available. The U.S. Carrier s Agent will arrange for rate filing prior to receipt of goods, according to the established procedures. If no tariff line item number has been

35 communicated, the origin Carrier s Agent must check if the quoted rate is in accordance with the FMC tariff. 6 Quotation and Invoice All quotations and freight invoices for ocean transport (including inland haulage for combined transport) should be made as agent for and on behalf of PYRAMID LINES Ltd. as carrier. Therefore, the Agent should explicitly mention in the written quotation that the quoted rate is based on the services offered by the Carrier. 7 Cash on Delivery/Disbursements Cash on delivery respectively disbursements, i.e. collecting payment for goods from the Consignee on behalf of the Shipper, are not allowed. Exceptions are subject to prior written approval of the Carrier. 8 Stuffing/Stripping of Carrier s Consolidation Containers The Agent must pay special attention when appointing Carrier s CFS operator (see Agency Agreement 3.4.3). The Agent is responsible for regularly checking the service quality of the CFS operator including supervising the activities on a random basis. The Agent must ensure that all LCL goods are correctly loaded and unloaded in Carrier s consolidated container, are properly stowed and lashed and that no physical damage occurs during loading and stripping. The Agent is responsible for ensuring that Carrier s CFS operator will only stuff clean and intact containers which are suitable for ocean transport. Appendix I Version: 1.0 Page 35/59

36 9 Dangerous (DG), Military and Governmental Regulated Goods The following operating procedures must be observed by the Agent when handling DG cargo as Carrier s Agent: 9.1. Irrespective of the commercial pressure, safety must take priority in the handling and carriage of goods. Sufficient time must be allowed for a proper check of the description of goods prior to and during the booking process As a matter of principle, all goods declared as hazardous materials must be accompanied by the related documentation, in particular the dangerous goods declaration. The Material Safety Data Sheet (MSDS) should be requested although it is only mandatory for chemicals. Same care has to be given to any military or governmental regulated goods, for which adequate documentation must be submitted by the customer. For FCL shipments, a container packing certificate must be completed. In addition, any other mandatory documentation required in respect of origin and destination rules or any transit country s rules must be provided All documentation received from the Shipper must be submitted to the VOCC and written confirmation (booking confirmation) of acceptance of the DG cargo, military or governmental regulated goods for shipment must be obtained from the VOCC All goods, which are not expressly declared as non-hazardous, but has indications of being dangerous or falling under the International Maritime Dangerous Goods (IMDG) Code, must be accompanied by a detailed description of goods in order to assess whether the goods are hazardous or not. In case of doubt a) approval must be obtained from a trained and certified IMDG expert within the respective organization and if needed, escalated to the Carrier; b) documentation received from the shipper must be submitted to the actual VOCC and a written confirmation (booking confirmation) must be obtained from the VOCC operator that they are aware of the nature and character of the goods and consent to carry the goods. If the above cannot be complied with, it is expressly prohibited to issue a Carrier B/L or Carrier SWB Restricted Goods: For all cargoes classified under IMDG class 1 (including all sub-classes), 5.2, 6.2. and 7 it s strictly forbidden to issue a Carrier B/L or Carrier SWB unless explicitly authorized by the Carrier It is strictly forbidden to accept Calcium Hypochlorite UN 1748 (in dry state) Appendix I Version: 1.0 Page 36/59

37 and UN 2880 (in hydrated state) For all battery shipments, irrespective of whether the shipments fall under the IMDG classification or not, shall be accompanied by a battery declaration confirming the batteries terminals are well protected and the external packing is adequate Shipments of magnesium in bulk, granular, powder, ingots etc. are banned for carriage irrespective they fall under IMDG class 4.3 or not. However, if a product or metallic component has magnesium as a minor component, so that the level of magnesium does not create a risk, then such a shipment may be accepted subject to prior approval by a trained and certified IMDG expert, who may invoke certain carriage requirements and/or restrictions. Such commodities may include pharmaceuticals or herbal/vitamin supplements in which magnesium is part of the content. Please refer to Attachment G: Order Acceptance CHECK LIST for DG, Military and Governmental Regulated Goods Appendix I Version: 1.0 Page 37/59

38 10 Banned Goods It is strictly forbidden to handle the following goods: Fireworks Jewellery (precious and semiprecious jewellery) Bullion and other precious metals (e.g. gold) Any form of legal currency, bank notes, coins, cash Cigarettes and other tobacco products Securities and documents of all kinds Valuable work of arts Thorough bred horses ebay transactions of any kind The handling of following commodities/equipment units are subject to prior written approval from the Carrier: Watches Weapons and military equipment in general ISO tank container Flexitank Container Bulk cargo (dry bulk commodities and bulk liquid products) Live stock of all kinds. As a principle, the Agent must not accept personal effects. Requests for transportation of personal effects should be re-directed to specialized removal companies. On exceptional basis, personal effects may be shipped subject to following criteria: Shipper must be a company (legal entity shipping personal effects on behalf of an employee) that is known and with whom the Agent has a long lasting and continuing commercial relationship. Always Freight prepaid For each and every shipment a detailed packing list signed by the natural person being the owner of the personal effect must be collected. No time definite services! Packaging of personal effects must be arranged by the Agent by using a specialized company of good reputation. Personal effects must always be covered by an additional risk cargo insurance. Appendix I Version: 1.0 Page 38/59

39 11 Declaration of Value/ High Value Shipments If the Shipper/Merchant requests to declare the value of the goods as per B/L clause 7.4. (ad Valorem) on the Carrier B/L or Carrier SWB, the amount must be indicated in the field 27 (see and ). Such declaration increases liability for Carrier for damage of goods. Therefore, the Shipper/Merchant shall pay an extra freight as per Carrier s applicable tariff. Tariff as well as procedure can be found in the Internet under For every request/ booking/ shipment cargo value needs to be clarified. Commodities like: new machinery, testing vehicles, pharmaceuticals, vaccines, medical equipment, objects of art, aviation products, perfumes, cosmetics etc., need to be checked with special care/ attention. The purpose of this procedure is to define the fields of responsibility and rules for accepting and transporting "Valuable Cargo" or cargo that is theft prone, in order to safeguard carrier s interests and avoid exposing the Company to unnecessary risks. The maximum value per container/ flat rack or package shall not exceed USD 500,000. Any shipment with higher value has to be notified and confirmed by the Carrier before booking acceptance. Please refer to Attachment H: High Value Procedure Approval 12 Loss Prevention 12.1 Marine Cargo Insurance Unless there already exists an agreement between the Agent and Carrier s Insurance Broker, Agent must contact Carrier in case the customer requests Carrier to provide cargo insurance: Internet: insurance-quotes@pyramidlines.com In the case where the Carrier has provided insurance cover and the goods covered under such cargo insurance policy sustains damage, the Agent shall immediately notify the Carrier s claim management and (if applicable) the respective Carrier s Agent station involved. Internet: Appendix I Version: 1.0 Page 39/59

40 Appointment of Surveyors Where goods have sustained substantial visible loss or damage and the Agent has to contact Carrier s Claims Department to verify if a surveyor must be appointed to inspect the goods. The Agent must contact the respective Carrier s Agent office involved to arrange for an inspection. The Agent must appoint an approved Lloyd s of London surveyor. Internet: claim@pyramidlines.com In case of minor external damage (such as cartons slightly dented or torn), the Agent may take a photo of the affected cargo General Average In case the VOCC declares general average, the Agent must carry out the following in order to protect Carrier s interests: a) The issuing Agent should contact the Shipper on the Carrier B/L or Carrier SWB to establish the terms of sale (i.e. ex-works, FOB, CIF, etc.) in order to determine who has principle interest in the goods. b) Issuing Agent should enquire whether any marine insurance/shipper's interest has been taken out by the shippers or consignees. c) Issuing Agent should establish the whereabouts of the Carrier B/L and/or Carrier SWB i.e. if it has been sent to consignees. d) Thereafter the issuing Agent should pass this information to the respective receiving Agent. e) The respective receiving Agent should contact the consignees and inform them that their goods were on board MV <name of vessel>, and that the Carrier does not know the current status of the goods, however some delays can be expected. Clients should be advised to take whatever steps they need to ensure that any replacement of goods is obtained and dispatched. They should discuss this with their goods insurers, since they may be covered for the costs. It should be stressed that no liability attaches to the Carrier for any loss, damage or delay that may have occurred. Appendix I Version: 1.0 Page 40/59

41 While the Carrier will be pleased to assist with transport arrangements, it must be made clear to the customer that Carrier cannot offer free transport for the replacement goods. The relevant issuing/receiving Agent should obtain from the goods interest and its Goods Insurance a signed and stamped copy of the following documents: General Average Bond: To be signed and stamped by goods interest General Average Guarantee: to be signed and stamped by goods Insurers (if marine insurance/shipper's interest has been sold by the Carrier, the Carrier is to contact the relevant insurance brokers to arrange for the necessary) Salvage Guarantee Form ISU 1: to be signed and stamped by goods Insurers (if marine insurance/shipper's interest has been sold by the Carrier, the Carrier is to contact the relevant insurance brokers to arrange for the necessary) Copy of the Commercial Invoice: to be submitted by goods interest (Not Customs Invoice) Goods interest and goods Insurers should return the completed forms and documents directly to: Average Adjusters: With Copy to: VOCC s Agents: N.B: The above documents can be send by Fax in order to obtain release of the goods. The originals must be sent by courier. For uninsured goods the Average Bond signed and stamped by the goods interest will be required as well as a cash deposit. In this case the goods interest shall contact the Average Adjuster directly to determine the amount of the deposit required. In case of LCL/ consolidation goods, a check must be kept on the bonds that are returned to ensure that all consignments are accounted for. Under NO circumstances shall any G.A Bond, G.A Guarantee or Salvage Guarantee Form ISU 1 be signed by the Carrier on behalf of any of its customers or by the Carrier s Agent NO goods may be released to its respective owner without having received the Average Bond, the Average Guarantee, the Salvage Guarantee Form ISU 1 and the commercial invoice duly signed and stamped by the goods interest and his goods Insurance. Appendix I Version: 1.0 Page 41/59

42 13 Banned Countries It is strictly forbidden to ship or receive cargoes, issue and sign Carrier s shipping documents of following embargo countries: - Iran - Cuba and all other sanctioned countries or commodities listed in following websites: These websites have to be checked continuously and respective sanctions to be executed without fail. PYRAMID LINES Ltd. 14 Attachments Attachment A: Carrier B/L Issuance Flowchart Attachment B: Carrier B/L Signature Card Attachment C: Procedures for the release of goods against presentation of Original Carrier B/L Attachment D: Instructions for delivery of goods without presentation of Original Carrier B/L Attachment E: Letter of Indemnity & Bank Guarantee Attachment F: Telex Release Attachment G: Order Acceptance CHECK LIST for DG, Military and Governmental Regulated Goods Attachment H: High Value Procedure Approval Appendix I Version: 1.0 Page 42/59

43 Attachment A: Carrier B/L Issuance Flowchart to PYRAMID LINES Ltd. - Carrier s Instructions Carrier s B/L Issuance Flowchart Vessel Operating Carrier Vessel Operating Carrier Vessel Operating Carrier Master Bill of Lading = Shipper on MBL = Consignee on MBL Pyramid Lines Ltd. Pyramid Lines Ltd. = Issuing the HBL = Delivery Agent on HBL Pyramid Lines Carrier (House) Bill of Lading Shipper Consignee MBL = Master Bill of Lading HBL = House (Carrier) Bill of Lading Appendix I Version: 1.0 Page 43/59

44 Attachment B: Carrier s Bill of Lading Signature Card to PYRAMID LINES Ltd. - Carrier s Instructions Carrier s Bill of Lading Signature Card The below signatories are officially appointed and registered personnel authorized to sign Original Carrier Bills of Lading on behalf of the company: < Name and Address of the Carrier s Agent> Agent s Office Location (City/Country): Full Name Signature Date With their signature, all signatories herewith confirm to have received and read a current copy of PYRAMID LINES "Carrier s Instructions" and have read in particular the policies and procedures on the release and issuance of Original Carrier B/L. Signature of Managing Director confirming the Signatories Signature: Date: Appendix I Version: 1.0 Page 44/59

45 Attachment C: Procedures for the release of Goods against presentation of Carrier Original Bill of Lading to PYRAMID LINES - Carrier s Instructions Procedures for the release of Goods against presentation of Carrier Original Bill of Lading Please foliow and complete the following checklist BEFORE releasing ANY goods for delivery to (or pickup by) ANY Customer: 1 ) Do you have a genuine transport document in hand??? The section and shows sample copies of Carrier B/L and Carrier SWB forms. 2.1) Is the Carrier B/L consigned to the order of the shipper or a bank??? Has the named shipper (or bank) properly endorsed the Carrier B/L over to the party to whom the release/delivery order is being issued, and has THAT party also properly endorsed the Carrier B/L? 2.2) Is the Carrier B/L consigned to a named consignee??? Have both the named shipper and the named consignee properly endorsed the Carrier B/L? If the party, to whom the release/delivery order is being issued, is different from the named consignee has THAT party also properly endorsed the Carrier B/L? 2.3) Is the document an Carrier SWB??? Check the identity of the party taking delivery and make sure that party is in fact the consignee named in the Carrier SWB. NOTE: It is a sensible precaution to ask the party claiming delivery to produce either a copy of the Carrier SWB or the Arrival Notice. 3 ) Does the Carrier B/L number correspond with that on the container manifest??? Applicable to LCL cargo only. 4 ) Has the Original Carrier B/L been properly signed by a Carrier s Agent??? An unsigned Carrier B/L is not properly issued, it is invalid and could be an amended copy or a forgery. NOTE: If you have reason to suspect the authenticity of the signature, please fax or a copy of the Original Carrier BIL to the issuing Carrier s Agent s office for verification against their Signature Card. 5 ) Are there any written amendments/changes shown on the Original Carrier B/L??? What are they? What are the effects of these amendments? Have they been properly authenticated by a stamp and authorized signature? Appendix I Version: 1.0 Page 45/59

46 NOTE: If you have reason to suspect the authenticity of any amendment, please fax or a copy of the Original Carrier BIL to the issuing Carrier s Agent s office for verification. 6 ) Do the Endorsements appear authentic and are they "unqualified"??? "Unqualified" means "without any written exceptions/conditions/limitations". 7) Are the Container & Seal Numbers on the Carrier B/L correct??? The numbers need to correspond with those on the respective VOCC's Master Bill of Lading (and, for LCL shipments, the container manifest). 8) Do the Shipper I Consignee I Notify Party on the Carrier B/L correspond with those on the container manifest??? Applicable to LCL cargo only. 9) Are there any special instructions??? Either shown on the Carrier B/L itself or given to you under separate cover by the Carrier s Agent at origin. 10.1) Are there any Freight Charges or other Service Charges due??? Make sure they were paid in full!!! 10.2) Are there any "Shipper's Disbursements" or "Freight Forwarder's Advances" due??? Make sure they were paid in full!!! Seek immediate advice from your Manager if the following situations occur: More than one party is claiming the same goods. Carrier Bs/L are usually issued in a set of 3/three Originals and more than one party could therefore be in possession of an Original Carrier B/L. You have a written request from the Shipper not to release to the Consignee under a Carrier SWB or when the Consignee has produced an Original Carrier B/L. An unpaid shipper may have instructed the Carrier not to release the goods even though the goods are covered by a Carrier SWB or an Original negotiable Carrier B/L is in the hands of the receiver. The Carrier cannot ignore this instruction. It may be necessary for the courts afterwards to decide who is entitled to the goods. You intend to hold cargo for freight charges owed by the same receiver for other goods. The right to lien the goods for unpaid freight charges and other costs normally only applies to charges on the goods itself. Any attempt to hold goods for freight debts on other goods may be illegal in some countries. Appendix I Version: 1.0 Page 46/59

47 Attachment D: Instructions for Delivery of Goods without presentation of Original Carrier Bill of Lading to PYRAMID LINES - Carrier s Instructions Instructions for Delivery of Goods without presentation of Original Carrier Bill of Lading Instructions for the Carrier s Agent (and its handling offices) in case of a request from a person or company (= "Requesting Party") for "Delivery of Goods without presentation of Original Carrier B/L" Procedure 1. Gather the following 7 (seven) documents: 1.1. Mandatory - Receipt of a written request from the "Requesting Party" by fax, mail or for "Delivery of goods without presentation of Original Carrier Bills of Lading" Mandatory - Copy of the commercial invoice from the "Requesting Party" If possible - Copy of the commercial invoice from the Shipper named in the Carrier B/L Mandatory - Copy of the Carrier B/L (printed, by the Carrier s Agent office handling the request) showing all prepaid and collect freight charges from EXW up to CIF If possible - The officially declared export value on export declaration declared by Shipper to the Carrier s Agent office at origin Mandatory - A written confirmation from Shipper or Consignee (as named in the Carrier B/L) to release cargo to the "Requesting Party" Mandatory - The identity of the bank (= name, street address, telephone number and contact person) securing the "Requesting Party's" request. 2. Complete the "Approval Request" form (as specified in below template, no other form is acceptable) and submit it as a cover sheet together with the above documents to your company's Managing Director for evaluation and decision-making. 3. STOP!!! - Only once you have written confirmation (using the same "Approval Request" form you submitted in step 2) from the Managing Director, permitting the delivery of goods without presentation of Original Carrier B/L, in hand you may proceed to the next step. 4. Letter of Indemnity Process Appendix I Version: 1.0 Page 47/59

48 4.1. Obtain "Letter of Indemnity" (as specified in below template, no other form is acceptable), in original (no fax or scanned attachment is acceptable) on the customer's letterhead and duly signed by the "Requesting Party" Ensure the "Letter of Indemnity" (as specified in below template, no other form is acceptable) is also duly counter-signed by the bank (as specified above under point 1.7) on behalf of the "Requesting Party" Assure all additional conditions specified by your Managing Director are met. 5. Complete the "Approval Request" form (as specified in below template, no other form is acceptable) and submit it as a cover sheet together with the following documents to your company's Chief Financial Officer for evaluation and decision-making: 5.1. Copy of the Carrier B/L (as specified above under step 1.4) 5.2. Written confirmation from Managing Director (as specified above under step 3) 5.3. Letter of Indemnity (as specified above under step 4) 6. STOP!!! - Only once you have written confirmation (using the same "Approval Request" form you submitted in step 5) from the Chief Financial Officer, permitting the delivery of goods without surrender of Original Carrier B/L, in hand you may proceed to the next step. 7. Collect any outstanding freight, service and demurrage charges from the "Requesting Party" as required (or as specified by the Managing Director or Chief Financial Officer). 8. You may now issue and release the necessary delivery/release order to the "Requesting Party". NOTE: Remember to have an authorized Carrier BIL Signatory to sign this order. 9. Keep the original "Letter of Indemnity" clearly visible in your clearly marked shipment file. 10. Continue to chase the customer regularly for the surrender of the Original Carrier B/L (as a complete set!!!). Appendix I Version: 1.0 Page 48/59

49 Template TOP URGENT - Date: File No: Attn. Managing Director: From: Direct Tel: Party requesting delivery: Office: Direct Fax: Request for APPROVAL of Delivery of Goods WITHOUT presentation of Original Carrier B/L against a Letter of Indemnity with counter-signature by a bank Dear Madam/Sir, The a.m. party requests delivery of cargo without presentation of Original Carrier B/L from us. Attached please find the following documents/information: Attached? (Circle as appropriate) Yes I No - 1) Receipt of a written request from the "Requesting Party" Yes / No - 2) Copy of commercial invoice received from the "Requesting Party" Yes I No - 3) Copy of commercial invoice received from Shipper named in Carrier B/L Yes / No - 4) Copy of the Carrier B/L showing all Prepaid & Collect Freight Charges Yes / No - 5) Officially declared export value on export declaration declared by Shipper Yes / No - 6) Written confirmation from Shipper or Consignee named in B/L to release the goods Yes / No - 7) Details of the bank securing the "Requesting Party's" request Please urgently review this request and confirm your decision by return FAX. Signature of Person requesting approval: RETURN FAX Request DENIED Request APPROVED Amount to be guaranteed by bank: USD Place AND Country of jurisdiction to be specified in Letter of Indemnity: Additional CONDITIONS: Name, Date and Signature: Appendix I Version: 1.0 Page 49/59

50 Template TOP URGENT - Date: File No: Attn. Chief Financial Officer: From: Direct Tel: Party requesting delivery: Office: Direct Fax: Amount of Bank Guarantee: Request for APPROVAL of a Letter of Indemnity counter-signed by a bank Dear Madam/Sir, We received a Letter of Indemnity counter-signed by a bank covering legal and financial liabilities possibly arising from the delivery of goods without presentation of Original Carrier B/L from the a.m. party. Attached please find the following documents/information: Attached? (Circle as appropriate) Yes / No - 1) Copy of the Carrier B/L showing all Prepaid & Collect Freight Charges Yes / No - 2) Copy of our Managing Director's written approval confirmation Yes / No - 3) Copy of the Letter of Indemnity counter-signed by a bank. Please urgently review this request and confirm by return FAX whether the Letter of Indemnity with a counter-signature by this bank is acceptable. Signature of Person requesting approval: RETURN FAX Request DENIED Request APPROVED Additional CONDITIONS: Name, Date and Signature: Appendix I Version: 1.0 Page 50/59

51 Attachment E: Letter of Indemnity & Bank Guarantee to PYRAMID LINES - Carrier s Instructions Letter of Indemnity & Bank Guarantee Definitions 1) Who and what is the "Indemnitee"? A party (in this case the "Indemnitee" = "PYRAMID LINES Ltd. = PYRAMID LINES"=the Carrier) entering into an agreement with a "surety" (="bank guarantee") that, should a "principal" (in this case the "Indemnitor") on whose behalf a surety bond has been issued default, the indemnitor will assume the principal's obligations. The indemnitee (= the Carrier) receives compensation from the indemnitor. 2) Who and what is the "Indemnitor"? The company, or party, requesting a) delivery of goods without surrender of Original Carrier B/L or b) claiming issuance of a second set of Original Carrier B/L from the Carrier (= "Indemnitee"). The indemnitor is paying compensation to the indemnitee.. 3) What is a "Letter of Indemnity"? A letter, signed by the "Indemnitor", guaranteeing that contractual provisions will be met, otherwise financial reparations will be made to the "Indemnitee" (= the Carrier). 4) What is a "Bank Guarantee"? A guarantee from a bank to the "lndemnitee" (=the Carrier) that the liabilities of a debtor ("Indemnitor") will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. NOTE: For the Carrier having a proper Letter of Indemnity and bank guarantee simply means the following: If, for same reason, one of the initially issued (and now claimed lost) Original Carrier B/L is properly presented to the Carrier or its Agent by another party claiming legal ownership to the goods, then a) the Carrier can draw financial compensation for this party from/through the bank guarantee and, b) the Carrier is held harmless by the Indemnitor from any legal consequences and costs. Appendix I Version: 1.0 Page 51/59

52 Template LETTER OF INDEMNITY - For undertaking Delivery of Goods without presentation of Original Carrier B/L - Date: To: c/o: PYRAMID LINES Ltd., < enter full address>, Hong Kong <enter name and address of Carrier s Agent here> PYRAMID LINES B/l-No.: Container-No.: Vessel Name: Voyage No.: Place of Receipt: Port of Loading: Port of Discharge: Place of Delivery: Number of Packages: Gross Weight: Description of Goods: J The above goods were shipped on the above vessel by the Carrier and consigned to us or to our order but the relevant original Carrier Bs/L have not yet arrived. We hereby request you to deliver such goods to us without presentation of the Original Carrier B/L. In consideration of your acceptance of our above request we hereby undertake and agree as foliows: (1) To indemnify you, your servants or agents and the vessel, her owners, charterers, operators, the master and agents (the indemnitees) and to hold all of you harmless in respect of any liability, loss, damage or expenses of whatsoever nature (including but not limited to legal expenses of any kind arising from such delivery) which you may have sustained or will sustain by reason of delivering the goods to us in accordance with our request. (2) To pay to you on demand any freight, demurrage and/or charges and/or general average that may be due in respect of the goods. (3) In the event of any proceedings being commenced against you or any of your servants or agents or any of the indemnitees in connection with the delivery of the goods as aforesaid to provide you or them from time to time with sufficient funds to defend the same. (4) If the vessel or any other vessel in the same or associated ownership, management or control or any property belonging to you or to any of the indemnitees should be arrested or detained or otherwise affected or if the arrest or detention thereof should be threatened, to provide on demand such bail or other security as may be required to prevent such arrest or detention or to secure the release of such vessel or property and to indemnify you or any of the indemnitees in respect of any liability, loss, damage or expenses caused by such arrest or detention or threatened arrest or detention whether or not the same may be justified. <<< Letter of Indemnity, Page ONE of Two»> Appendix I Version: 1.0 Page 52/59

53 <<< Letter of Indemnity, Page TWO of Two»> (5) As soon as all original Carrier Bills of lading for the above goods shall have arrived and/or come into our possession, to produce and deliver the same to you immediately whereupon our continuing liability shall cease save and except any liability that has already accrued or liability which arises in respect of a matter occurring prior to the date of delivery up of all of the Original Carrier Bills of lading. (6) Where the indemnity has been joined in and countersigned by a bank, the liability of each and every person under this indemnity shall be joint and several and shall not be conditional upon your proceeding first against any person, whether or not such person is party to or liable under this indemnity. (7) This indemnity shall be construed in accordance the laws of <enter country of jurisdiction> and each and every person liable under this indemnity shall at your request submit to the jurisdiction of the Courts of <enter place + country of jurisdiction> Signature: For and on behalf of: <enter company name and address signing this letter of indemnity here> Name of Signatory: <enter full name of person signing this letter of indemnity here> Title of Signatory: <enter full title of person signing this letter of indemnity here> We, : <enter name of bank here> ("the Bank"), agree to join in this indemnity provided always that the Bank's liability: (1) Shall be to make payment to you forthwith on your written demand in the form of a signed letter certifying that the amount demanded is a sum due to be paid to you under the terms of the indemnity. (2) Shall be limited to a sum or sums not exceeding in aggregate. (3) Shall terminate 6 (six) years from the date of the indemnity except in respect of any demands for payment received by the Bank hereunder at the address indicated below on or before that date. (4) Shall be extended at your request from time to time thereafter for a period of two calendar years at a time. (5) Shall be governed by and construed in accordance with the law governing the indemnity and the Bank hereby agrees to submit to the exclusive jurisdiction of the Courts of the country in which it has its principal place of business. Signature: For and on behalf of: <enter complete name and address of bank countersigning here> Name of Signatory: <enter full name of person at bank countersigning indemnity here> Title of Signatory: <enter full tile of person at bank countersigning indemnity here> Appendix I Version: 1.0 Page 53/59

54 Checklist for accepting a "Letter of Indemnity" When evaluating a request for the "Delivery of Goods without presentation of Original Carrier B/L" against a "Letter of Indemnity" counter-signed by a bank, check for/on the following: REMEMBER: Any "Letter of Indemnity" is only as good as the party issuing it! 1) Verify the receipt of: Fax, on appropriate form, from office handling the request (mandatory) A written request from customer (mandatory) A copy of the commercial invoice from customer (mandatory) A copy printout of the Carrier B/L in question (mandatory) The officially declared export value on export declaration (if possible) A written confirmation from shipper or consignee or endorsee to release the goods to customer (mandatory) The identity of the bank giving the guarantee (mandatory) 2) Then evaluate the customer's request considering these factors: General trustworthiness of the customer Accounts Receivable status and history as well as payment record Financial stability and viability of customer Duration, quality and potential of business relationship with customer General reputation of customer (is the customer a known Fortune 500 company or official key account of the Carrier etc... ) Plausibility of product value on commercial invoice and description of goods on Carrier B/L (beware of unreasonably low value) Is the amount of the "bank guarantee" at least TWICE that of the declared CIF value? Reasonable coverage of potential risks by a "Bank Guarantee" of twice the CIF value of commercial invoice (You may increase this guarantee amount at your discretion) This request can NOT be granted if the customer has not redeemed an already existing Letter of Indemnity, covering another shipment, by surrendering the appropriate complete set of Original Carrier Bs/L. The place & country of jurisdiction of the requesting party's "Letter of Indemnity" needs to be where YOUR country's organization has its principal place of business. The place & country of jurisdiction of the bank's "Letter of Indemnity" is where the bank has its principal place of business (our form already specifies it). Appendix I Version: 1.0 Page 54/59

55 Attachment F: Telex Release to PYRAMID LINES - Carrier s Instructions Telex Release Template for from Origin Agent to Destination Agent: RE: Request for Telex Release of Shipment B/L NO. - POL/POD CONTR NO. S/ NP/ DEST: F/STATUS:PREPAID/ COLLECT VESSEL/ VOYAGE =================== PLS NOTE FULL (3/3) SET OF ABOVE OB/L HAS BEEN SURRENDERED TO US WITH A WRITTEN REQUEST TO DELIVER CARGO TO PLS DELIVER CARGO ACCORDINGLY AFTER COLLECTING NECESSARY CHARGES IF ANY. PLS CONFIRM RECEIPT OF THIS MESSAGE. Attachment: Customer s REQUEST FOR TELEX RELEASE OF SHIPMENT AT DESTINATION (please see template below) Appendix I Version: 1.0 Page 55/59

56 Date : REQUEST FOR TELEX RELEASE OF SHIPMENT AT DESTINATION Pyramid Line B/L No.: Reference No.: Ctr No.: Vessel/ Voyage: Port of Loading: Port of Discharge: Place of Delivery: B/L Issue Place and Date: To : < name of PYRAMID LINES s origin agent> Dear Sir/ Madame, We, <name of requestor>, hereby confirm and authorize a telex release of above mentioned container(s)/cargo(es) to the consigned party without presentation of Original Bill of Lading at destination. We herewith surrender a duly endorsed full set (3/3) of Original Pyramid Lines Bill of Lading/Sea Waybill, which shall be released at destination <name of port of discharge/ place of delivery> to following company: Company: Address: Person in charge: Telephone/ Fax: We hereby undertake to keep Pyramid Lines Ltd., their principals and their agents harmless from any responsibility and consequences for this telex release. We furthermore confirm being fully aware and are accepting without reserve the Pyramid Lines Bill of Lading terms and conditions as stated at the web site Yours Faithfully ( name of company ) ( name of requesting person ) (title of requesting person ) (company s stamp) Confirmed by: <name of Pyramid Lines origin agent> <name of signing person> <agent s stamp> <date> Appendix I Version: 1.0 Page 56/59

57 Attachment G: Order Acceptance CHECK LIST for DG, Military and Governmental Regulated Cargo DG CHECK LIST for Ocean Freight Shipping Order/Booking Acceptance Office/Departement: Shipper: Processing Staff: File Number: Does the shipment have indications of being DG or any regulated Cargo (Military Goods or other governmental regulated Goods for Ex- or Imports? YES NO 1. Is Shipper or Consignee known/trustworthy in the chemical industry? 2. Are there chemical name, code or symbols on shipping order? 3. Are there UN Number or chemical names on shipping order? 4. Has a HS Code been provided? 5. Is the Shipment declared as DG? 6. Does the shipment contain any goods, which are governmental regulated for either export at Place of Receipt/Port of Loading, transit or import at Port of Destination/Place of Delivery? Is the shipper/consignee known to produce, handle or receive such goods? If any of the above question(s) are answered YES, please pass shipment processing to trained DG staff, otherwise handle as normal cargo. Above 1 6 were checked by: <Name of processing staff> If shipment is declared as batteries please also refer to battery check list. 7. Has a signed DG declaration been provided? 8. Has any MSDS Sheet been provided and attached to file? 9. Has IMDG Code been checked and shipment details been verified? 10. Is shipment allowed under Carrier s carriage rules (banned/restricted commodities and transit restrictions)? 11. Has the destination been consulted in regards to country/terminal specific DG regulations? 12. Has a pre-advice been sent to destination? 13. Has carrier been advised in writing of DG or regulated cargo and accepted/confirmed the shipment? 14. Has a signed container packing certificate been provided? YES Staff Initial Above 5 13 shall be completed before booking / loading container as DG Only when 13 (if applicable) and 14 have been answered YES, the Pyramid Lines B/L may be issued and released! Or respectively, if it is established that shipment is NON-DG please Appendix I Version: 1.0 Page 57/59

58 mark Yes an process as normal cargo. 15. Check, if both Master B/L and Pyramid Lines B/L state full and correct IMDG cargo details/un # etc? Place and Date: <Name of authorized DG manager> Appendix I Version: 1.0 Page 58/59

59 Attachment H: Order Acceptance CHECK LIST for DG, Military and Governmental Regulated Cargo The Cargo s listed below are considered by Pyramid Lines to be High Risk Cargo s and the Agent is not authorised to accept movement of these cargo s where the value of the Cargo exceeds USD 500,000 per shipment without the prior written approval of Pyramid Lines. In order for approval to be considered, this form should be completed and ed to: High Risk Cargo s Alcohol and Tobacco Digital cameras Gaming consoles, including handheld gaming consoles Hard disk drives, micro-chips, computer chips, micro-processors of CPU s Laptop, Netbook and desktop computers Electronic Tablets (Apple i-pads, Samsung Galaxy s, Kindles etc) Mobile telephones, PDA s and Blackberries Pharmaceutical Request for Approval to ship High Risk Cargo s Name of customer: Type of Cargo: Value per shipment: Origin: Destination: Estimated Shipment Date: Authorisation Requested By Signed: Print Name: Company: Date: Pyramid Lines Response We approve/do not approve the above shipment request. Signed: Print Name: For and on behalf of Pyramid Lines Ltd.: Date: Appendix I Version: 1.0 Page 59/59