26. SHIPMENTS IN TRANSIT

(A) Compliance with Applicable laws

(1)

The shipper shall comply with, and the charterer shall ensure compliance by shipper, applicable laws of any country to or from, which the cargo is to be carried, including, those relating to the packing, carriage or delivery of the cargo, and shall furnish such information and attach such documents to the air waybill as may be necessary to comply with such laws and regulations. Furthermore, when the shipper is notified in advance by JAL in respect to any country through or over which the cargo is planned to be carried, or any country through or over which the cargo may be carried due to rerouting, the shipper shall comply with all applicable laws or ordinances, and other government regulations of these countries and shall furnish such information and attach such documents to the air waybill as may be necessary to comply with such laws and regulations. The shipper shall be liable for and indemnify JAL from any damage occasioned by the failure of the shipper to comply with this provision. JAL will not be obligated to inquire into the correctness or sufficiency of such information or documents. JAL will not be liable to shipper, consignee or any other person for loss or expense due to shipper's failure to comply with this provision.

(2)

JAL shall not be liable for refusing to carry any shipment if JAL reasonably determines in good faith that such refusal is required by Applicable Laws.

(B) Disbursements and Customs Formalities

JAL will, but shall be under no obligation to, advance any duties, taxes or charges and to make any disbursements with respect to the cargo, and the charterer, the shipper, owner and consignee shall be jointly and severally liable for the reimbursement thereof. JAL shall not be under obligation to incur any expense or to make any advance in connection with the forwarding or reforwarding of the cargo except against prepayment by the charterer or the shipper. If it is necessary to make customs entry of the cargo at any place, the cargo shall be considered to be consigned at such place to the person named on the face of the air waybill as customs consignee or, if no such person be named, to JAL or to such customs consignee, if any, as JAL may designate. For any such purpose a copy of the air waybill, certified by JAL, shall be considered an original.

(C) Certain Rights of JAL over Shipment in Transit

If in the opinion of JAL it is necessary to hold the shipment at any place during, before or after transit for any purpose, JAL may, upon giving notice to the shipper or consignee at the address stated in the air waybill, store the shipment for the account of, and at the risk and expense of the shipper, owner and consignee of the shipment or any one of them in any warehouse or other available place, or with the customs authorities; or JAL may deliver the shipment to another transportation service for onward carriage to the consignee. The shipper, owner or consignee of the shipment shall be jointly and severally liable for and indemnify JAL against any expense or risk so incurred.

(D) Delays and Cancellation of Flight

In the event the carriage of any shipment by charter flight is so cancelled, postponed, advanced or terminated pursuant to the provision of Rule No.5 (B), JAL shall not be under any liability to shipper, consignee and any other persons with respect thereto. In the event carriage by charter flight, of the shipment or any part thereof is so terminated, JAL may place such shipment in storage at shipper's expense, or may, at the expense of shipper or consignee, forward the shipment for carriage by any other route or forward the shipment as agent for the shipper or the consignee, for onward carriage by any other transportation service on behalf of the shipper or the consignee. In the event the carriage by charter flight, of the shipment or any part thereof is so terminated, delivery thereof by JAL to any transfer agent for transfer or delivery or the placing of such shipment in storage shall be deemed complete delivery under the air waybill, and JAL shall be without any further liability with respect thereto, except to give notice of the disposition of the shipment to the shipper or the consignee, at the address stated in the air waybill.

(E) Priority of Carriage as between Shipments

Subject to Applicable Laws, JAL may determine, on a reasonable and not unjustly discriminatory basis, the priority of carriage as between shipments and decide which articles shall be carried and which articles shall not be carried or shall be removed at any time or place whatsoever and proceed with any charter flight without all or any part of the goods in one shipment.