24. PAYMENT OF CARGO CHARGES

(A) Payment of Full Charges

Full applicable charter price as provided in Rule No.12 and other charges and expenses as provided in Rule No.13 made or incurred or to be incurred by JAL and any other sums payable to JAL, will be deemed fully earned, whether or not the cargo is lost or damaged, or fails to arrive at the destination specified on the air waybill or charter agreement. No claim for loss or damage to a shipment will be entertained until all charter price and other charges and expenses thereon have been paid, except that when no part of the consignment is delivered, a claim with respect to such consignment will be entertained even though transportation charges thereon are unpaid. The amount of claims may not be deducted from such charter price and other charges and expenses.

(B) Guarantee of Unpaid Charges

The shipper guarantees payment of all costs, expenditures, fines, penalties, loss of time, damages and other sums which JAL may incur or suffer by reason of:

(a)

inclusion in the shipment of articles, the carriage of which is prohibited by Applicable Laws;

(b)

illegal, incorrect or insufficient marking, numbering, addressing or packing of packages or description of the cargo;

(c)

absence, delay or incorrectness of any export or import license or any required certificate or document;

(d)

improper customs valuation; or

(e)

incorrect statement of weight or volume.

By taking delivery or exercising any other right arising from the contract with shipper for carriage of cargo pursuant to the charter agreement, the consignee agrees to pay all such charges, and sums except prepaid charges; but this shall not discharge the shipper's guarantee to pay the same. JAL shall have a lien on the shipment for each of the foregoing, and in the event of non-payment thereof, shall have the right to dispose of the shipment at public or private sale (provided that prior to such sale, JAL shall have mailed notice thereof to the shipper or to the consignee at the address stated in the air waybill), and to pay itself out of the proceeds of such sale any and all such amounts. No such sale shall, however, discharge any liability to pay any deficiencies, for which the shipper and the consignee shall remain jointly and severally liable. No such lien or right of sale, and no right of JAL to collect any of the foregoing shall be in any way affected, lost or prejudiced by reason of the acknowledgement of payment, if not actually paid, or, so far as concerns the right of JAL to collect any of the foregoing, by reason of the delivery of the cargo or the surrender of the possession thereof.

(C) Basis of Charges

(1)

The shipper or charterer on behalf of shipper must make a declaration of value for carriage on the air waybill of all shipment. Such declaration of value may be in any amount, provided that "NVD"(No Value Declared) may constitute such declaration.

(2)

 

(a)

The valuation charge will be assessed in accordance with JAL's Regulations for a shipment having a declared value for carriage in excess of a value as specified thereon.

(b)

The value of the shipment per kilogram or per pound for applying valuation charges will be determined by dividing the shipper's declared value for carriage by the actual gross weight of the shipment.

(3)

If the declared value of cargo exceeds the declared value on which valuation charges for carriage have been previously computed. JAL shall be entitled to require payment of the valuation charges on such excess.

(D) Charges for Disbursement

When requested by the shipper, JAL will collect from the consignee an amount shown on the air waybill as disbursement such as charge for transportation, cartage, storage, loading or unloading not performed by JAL and government duty and customs fees. A service charge as provided in JAL's Regulations will be assessed for collecting and remitting to the shipper the amount of the disbursement. Any amendment of disbursement amounts shall be made by the shipper in writing prior to delivery of the shipment to the consignee or his agent.