Submission of Cargo Declaration Data.

A  Deadline for same.

Pursuant to Customs regulations effective
December 2, 2002, Carrier is required to submit certain cargo declaration
data for all cargo on board a vessel that will call in the United States
(i.e., U.S. import cargo and foreign destination cargo remaining on board
the vessel) to the U.S. Customs Service not later than 24 hours prior to
the time the cargo is loaded on Carrier's vessel in the non-U.S. port of loading.
In order to enable Carrier to comply with this requirement, except as
provided in paragraph B of this rule, any person tendering cargo to Carrier
that is to be transported to the United States or that will be on a vessel
when that vessel calls in the United States must submit the following
information regarding such cargo to Carrier in writing (including by
electronic transmission) not later than twenty four (24) hours prior to the
cutoff time for the delivery of cargo to be loaded on the vessel.

1. A precise description of the cargo (or the 6-digit HTS number under
    which cargo is classified) and weight of the cargo or, for a sealed
    container, the shipper's declared description and weight of the cargo.
    The quantity of cargo shall be expressed in the lowest external
    packaging unit (e.g., a container containing 10 pallets with 200 cases
    shall be described as 200 cases). Generic descriptions such as "FAK,"
    "General Cargo," "Chemicals," "Foodstuffs," and "Said to Contain" are
    NOT acceptable descriptions.

2. Shipper's complete name and address, or the identification number
    issued to the shipper by the Customs Service upon implementation of
    the Automated Commercial Environment (ACE).

3. Complete name and address of the consignee, owner or owner's
    representative, or its ACE identification number.

4. Internationally recognized hazardous material code when such materials
    are being shipped.

5. Seal numbers for all seals affixed to the container.

Certain Non-Vessel Operating Common Carriers.

Non-vessel operating common carriers ("NVOCCs") that are licensed by or
registered with the FMC and that have obtained Customs bonds may submit
the required inbound cargo declaration data directly to the U.S. Customs Service.
For purposes of this provision, an NVOCC is registered with the FMC if
it has been issued an Organization Number by the FMC, published a valid
and effective tariff, and posted the required financial security with the FMC.
 

1. Second Notify Party.

Any FMC-licensed or registered NVOCC with a
Customs bond that tenders cargo that will be on board a vessel when it
calls in the United States and provides the required cargo declaration
data for that cargo directly to the Customs Service shall identify the
Underlining Carrier as "Second Notify Party" in the data submitted to the
Customs Service. (Underlining carrier is the VOCC operating or maintaining
a slot charter arrangements for the vessel).
Until such time as Underlining Carrier informs the NVOCC that the identification
of Underlining Carrier as Second Notify Party permits the Underlining Carrier to
ascertain which cargo may be loaded, the NVOCC shall be required to provide the
certification described in subparagraph B(2) below.
 

2. Certification.

Any NVOCC that submits cargo declaration information
directly to the Customs Service shall, unless notified by the Carrier
pursuant to subparagraph B(1) above that it is not required to do so,
in lieu of the information required to be submitted pursuant to
paragraph A of this rule, provide the Underlining Carrier, not less than
twenty four (24) hours prior to the cutoff time for the delivery of cargo
to be loaded on the vessel in the Underlining Carrier's published schedule,
with a written certification stating that the required inbound cargo declaration
data for its cargo has been transmitted to the U.S. Customs Service in a
timely and accurate manner. Such certification shall describe the cargo
tendered with sufficient specificity (including container number) that
Underlining Carrier may readily identify such cargo.
 

3. NVOCC Co-Loading.

For purposes of this subparagraph B(3), the term "Master NVOCC" shall mean
the NVOCC that is the customer of the Underlining Carrier and tenders co-loaded
cargo to the Underlining Carrier in its name.
In the event the Master NVOCC submits cargo declaration data for
co-loaded cargo directly to the Customs Service, it shall do so for all
NVOCCs with which it co-loads and it shall comply with subparagraph
B(1) and/or B(2) above. In the event the Master NVOCC does not submit
cargo declaration data for co-loaded cargo directly to the Customs
Service but NVOCCs with which it co-loads transmit cargo declaration
data for their cargoes directly to the Customs Service, it shall be the
obligation of the Master NVOCC to provide Underlining Carrier with the
certification described in subparagraph B(2) with respect to all co-loaded cargo
tendered to Underlining Carrier by the Master NVOCC.
 

4. Subject to Rules under Paragrapg C, D.

All NVOCCs shall be subject to Paragraphs C and D of this rule.
 
 

C. Failure to Provide Information; Denial of Permission to Load Cargo.

1. In the event Carrier fails to provide the required inbound cargo
    declaration data to the U.S. Customs Service for all cargo to be loaded
    on its vessel within the time period required by Customs Service
    regulations it may, among other things, be assessed a civil penalty,
    denied permission to unload the cargo for which information was not
    timely provided, and/or denied permission to unload any cargo from the
    vessel on which the cargo is moving.
    Accordingly, Carrier may refuse to load any cargo tendered to it for
    which it has not received either
    (i)     the data required by paragraph A of this rule by the deadline
            specified therein; or
    (ii)    the certification required by paragraph B of this rule by the
            deadline specified therein.
 

2. Any and all costs incurred by Carrier with respect to cargo in its
    possession which is not loaded due to the non-provision of information
    or certification, or which is not loaded pursuant to the instructions
    of the U.S. Customs Service (regardless of whether or not the required
    data or certification has been provided for such cargo), including but
    not limited to inspection, storage and/or re-delivery costs, shall be
    for the account of the cargo. Carrier shall have a lien on cargo in its
    possession for amounts due hereunder and may hold cargo until such
    amounts (and any other unpaid freights or charges) are paid or sell such
    cargo after a reasonable period. In the event Carrier is forced to take
    legal action to collect amounts due hereunder, Carrier shall be entitled
    to recover all costs (including attorneys' fees) incurred in connection
    with such legal action.
 
 

D  Indemnification of Carrier.

If Carrier is assessed a civil penalty or denied permission to unload cargo,
then any and all shippers, consignees, cargo owners, NVOCCs and their
agent(s) that failed to provide the information required by this rule and/or
by the regulations of the U.S. Customs Service in a complete and accurate
manner shall be jointly and severally liable to indemnify and reimburse
Carrier for any such penalty and any and all costs incurred by the Carrier as
a result of the denial of permission to unload cargo.
Carrier shall have a lien on cargo in its possession for amounts due hereunder
and may hold cargo until such amounts (and any other unpaid freights or
charges) are paid or sell such cargo after a reasonable period.
In the event Carrier is forced to take legal action to collect amounts due
hereunder, Carrier shall be entitled to recover all costs (including
attorneys' fees) incurred in connection with such legal action.

(effective 12/02/2002)