International Cargo Bulletin

No.757 Feb. 12, 1997
 

USDA New regulations for wooden pallets and other solid wood packing materials

This is to inform you of JAL's shipper's interest insurance. this ICB shall be used as an alternative of TACT Rules Section 8.3. ( information's by carrier / JAPAN AIRLINES para.4.3. insurance ) since it is no longer published.

For your information, the contents are unchanged and identical with those in TACT.

A. AVAILABILITY - GENERAL
Shippers, owners consignors or consignees may secure Japan Air Lines Shipper's Open Policy Insurance under "Shipper's Interest Form" providing all risk insurance, at their option, by declaring their intention on the face of AWB or the Shipper's Letter of Instruction. For insurance coverage, a Japan Air Lines AWB must be issued or the Shipper's Letter of Instruction must clearly indicate that Japan Air Lines Shipper's Open Policy Insurance is desired.
The amount to be insured must be identical with the Shipper's Declared Value for carriage on the AWB or the Shipper's Letter of Instruction. Where no value is declared for carriage, the amount to be insured may be determined by the shipper and must be inserted specifically for the purpose of insurance on the AWB.

Notes
1. If the insured goods fall under the category of valuable cargo shown in note
2, the value for carriage must be declared. The amount of the declared value for carriage must be identical with the amount to be insured. 2. For insurance purpose "valuable cargo" means any of those articles as defined of USD 1000.00 or more or equivalent per gross kg.

B. TERMS OF THE SHIPPER'S OPEN POLICY
1. Type of risks covered
The insurance covers the usual types of perils for which coverage is provided at the shipper's insurance rates quoted in our tariff. It excludes coverage for delay, deterioration or loss of market, war riots, capture, seizure, civil commotion and similar perils.

2. Amount of insurance permitted and recoverable
The amount of insurance is the amount which appears in the Insurance Box in the AWB. Notwithstanding that the shipper may procure insurance in such amount, recovery will be limited to actual loss, that is, the actual value of the goods at destination at the time of loss, plus 10% of such value.

3. Additional exclusions
In addition to the exclusions specified in (1) above, Perishables and Live Animals are not insured against loss or damage due to cold or changes in atmospheric pressure.

C. SHIPPERS' INTEREST FORM OPEN POLICY INSURANCE with the Tokyo Marine and Fire Insurance Co., Ltd., hereafter called the Company.
In consideration of the stipulations herein named, and payment of premiums as hereinafter provided, it is the intent of this policy to insure owners, shippers, consignors, or consignees (as their interests may appear), of shipments of lawful goods and merchandise, including also live animals, fish reptiles, insects, birds and "valuable cargo" as defined in the tariff governing shipments moving over the Japan Air Lines, and/or connecting carriers. this insurance is at owners', shippers', consignors' or consignees' option, but must be requested and valuation declared and premium paid prior to or at time of issuance of AWB and details noted thereon in accordance with the requirements of said AWB.

1. Payee
For account of whom it may concern: Loss, if any, payable to owners, shippers, consignors or consignees (as their interests may appear), or order.

2. Goods insured
On air cargo of any kind excluding only mail and parcel post shipped on aircraft owned or operated by the Japan Air Lines, and connecting air, land or water conveyances, including messengers, if any. This insurance to be of the same force and effect as if a separate policy were issued to each shipper, consignee or other party at interest. This policy to also include coverage on air cargo of any kind, the property of the Japan Air Lines, or property in which they may have an interest, or the property of others which is not shipped by the Assured and is not excluded from the Assured's air tariffs.

3. Valuation
Shipments covered hereunder to be valued at the amount declared in the AWB or Shipper's Letter of Instruction, but in no event to exceed the actual value of the property at destination, plus 10%.

4. Voyage covered
At and form points and places in the world to points and places in the world.

5.Insuring agreement
Shipments covered hereunder to be insured against all risks of physical loss or damage from any external cause whatsoever irrespective of percentage with the following exceptions:

6. paramount warranties
The following warranties shall be paramount and shall not be modified or superseded by any other provision included herein or stamped or endorsed hereon unless such other provision refers specifically to the risks excluded by these warranties and expressly the said risks:

F.C. & S. (a) Notwithstanding anything herein contained to the contrary, this insurance is warranted free from capture, seizure, arrest, restraint, detainment, confiscation, preemption, requisition or nationalization, and the consequences thereof or any attempt thereat, whether in time of peace or war and whether lawful or otherwise; also warranted free, whether in time of peace or war, from all loss or damage caused by any weapon of war employing atomic fission or radioactive force; also warranted free from all consequences or hostilities or warlike operations (whether there be a declaration of war or not) but this warranty shall not exclude collision, explosion or contact with any fixed or floating object (other than a mine or torpedo), stranding, heavy weather or fire unless caused directly (and independently of the nature of the voyage or service which the vessel concerned or, in the case of a collision, any other vessel involved therein, is performing) by a hostile act by or against a belligerent power and for the purpose of this warranty "power" included any authority maintaining naval, military or air forces in association with a power. Further warranted free from the consequences of civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or piracy.
S.R. & C.C. (b) Warranted free of loss or damage caused by or resulting from strikes, lockouts, labor disturbances, riots, civil commotions or the acts of any person or persons taking part in any such occurrence of disorder.

7. Radioactive Contamination Exclusion Clause
This policy does not cover, loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss, directly or indirectly caused by contributed to by or arising from ionising radiations or contamination by radioactivity from any source whatsoever.

Exceptions
8. Delay clause
Warranted free of claim for loss of market or for loss, damage or deterioration arising from delay, whether caused by a peril insured against or otherwise.

9. Cold, pressure
Perishable and live cargo warranted free of claim for loss or damage due to cold or changes in atmospheric pressure.

CONDITIONS
10. Commencement and termination
This Insurance becomes effective as of the time the shipment is brought into office of Japan Air Lines or its agent and the Insurance therefor is entered on the AWB, and continues during the ordinary course of transit, including customary transhipment, if any, until the shipment is delivered to the consignee or discharged at the place designated by the consignee, but in no event beyond 60 days after unloading from the aircraft at the airport of destination.

11. Attachment and cancellation
This policy attaches and covers with respect to all shipments insured hereunder on and after April 1, 1975, Japan Standard Time, and is continuous subject to cancellation by the Japan Air Lines or the Company by giving the order thirty (30) days' written notice. Such cancellation, however, not to prejudice any risk in transit on the effective date of cancellation.

12. Limit of liability
The Company shall not be liable for more than USD 200,000 in any one AWB and USD 400,000 in any one aircraft or connecting conveyance or in any one place at any one time.

13. Explanatory provisions
Wherever the words "ship", "vessel", "seaworthiness", "ship or vessel owner" appear in this policy, they are deemed to include also the words "aircraft", "airworthiness", "aircraft owner". the airworthiness of any aircraft and the seaworthiness of any water conveyance is hereby admitted.

14. General average
Including General Average and Salvage Charges payable according to Japanese law and usage and/or as per Foreign Statement and/or as per York-Antwerp Rules (as prescribed in whole or part), if in accordance with the Contract of Afreightment.

15.Contributory clause
The Company shall be liable for only such proportion of GeneralAverage and Salvage Charges as the sum hereby insured (lessParticular Average for which the Company is liable hereunder, if any)bears to the Contributory Value of the Property hereby insured.

GENERAL CONDITIONS
16.Special continuation
Provided an additional premium be paid if required, it is understoodand agreed that in case of short shipment in whole or in part by theconveyance reported for insurance hereunder, or if the goods betranshipped by another conveyance or be carried beyond ordischarged short of destination, or in the event of deviation, or changeof voyage, or any interruption or other variation of the voyage or riskbeyond the control of the Assured this insurance shall neverthelesscover the goods until arrival at the final destination. No additional risks(whether of delay or of any other description) are insured under thisclause, which is intended merely to continue the insurance in forceagainst the same risks named elsewhere in this policy.

17.Explosion clause
Including the risk of explosion, howsoever of wheresoever occurringduring the currency of this insurance, unless excluded by the F.C. & S.Warranty of the S.R. & C.C. Warranty set forth herein.

18.Error in description
This insurance shall not be vitiated by any unintentional error,omission or oversight in making declarations, provided any such errorbe reported to the Company as soon as known or discovered by theAssured and additional premium paid if required.

19.Machinery clause
When the property insured under this Policy includes a machineconsisting when complete for sale or use of several parts, then in caseof loss or damage covered by this insurance to any part of suchmachine, the Company shall be liable only for the proportion of theinsured value of the part lost or damaged, or at the Assured's option,for the cost and expense, including labor and forwarding charges, ofreplacing or repairing the lost or damaged part; but in no event shallthe Company be liable for more than the insured value of the completemachine.

20.Labels clause
In case of damage affecting labels, capsules or wrappers, theCompany if liable therefor under the terms of this policy, shall not beliable for more than an amount sufficient to pay the cost of new labels,capsules or wrappers, and the cost of reconditioning the goods but inno event shall the Company be liable for more than the insured valueof the damaged merchandise.

21.With respect to water borne transportation covered underthis policy, the following shall apply
a. Lighterage
Including (subject to all the terms herein) risks of craft to and from thevessel; each lighter, craft or conveyance to be considered as ifseparately insured. Also to cover any special or supplementarylighterage to take the goods to or from the warehouse, subject to anadditional premium, if required. The assured is not to be prejudiced byany agreement exempting lightermen from liability.
b. Bill of lading clause
The assured are not to be prejudiced by the presence of thenegligence clause and/or latent defect clause in the Bills of Ladingand/or Charter Party. The seaworthiness of the vessel as between theAssured and this Company is hereby admitted and the wrongful act ormisconduct of the shipowner or his servant causing a loss is not todefeat the recovery by an innocent assured if the loss in the absenceof such wrongful act or misconduct would have been a lossrecoverable on the policy.
c. Both to blame clause
Where goods are shipped under a Bill of Lading containing theso-called "Both to Blame Collision" Clause, the Company agrees as toall losses covered by this insurance, to indemnify the assured for thispolicy's proportion of any amount (not exceeding the amount insured)which the Assured may be legally bound to pay to the shipownersunder such clause. In the event that such liability is asserted theAssured agrees to notify the Company who shall have the right at itsown cost and expense to defend the Assured against such claim.
d. Clause
This insurance is also specially to cover any loss of or damage to theinterest insured hereunder, through the bursting of boilers, breakageof shafts or through any latent defect in the machinery, hull orappurtenances, or from faults or errors in the navigation and/ormanagement of the vessel by the master, mariners, mates, engineersor pilots.

22.Declarations
a. The Japan Air Lines agrees to keep an accurate record of allshipments insured and to report to the Company the particulars ofsuch shipments by means of a Declaration Sheet as soon aspracticable after the close of each and every month and paypremium thereon charged at agreed rates. Unintentional failure bythe Japan Air Lines to report shipments to the company shall notvoid this policy, and such shipments are held covered subject topolicy conditions. The Company is entitled to premiums, at ratesof the Company, on all shipments covered by this policy, whetherreported or not.
b. The Company, or its Agents, shall have the privilege at any timeduring business hours to inspect the records of the Japan AirLines, as respect shipments coming within the terms of this policy.

23.Sue and labor
In case of any loss or misfortune, it shall be lawful and necessary toand for the Japan Air Lines, or the Assured or their or his factors,servants and assigns, to sue, labor and travel for, in and about thedefense, safeguard and recovery of the goods and merchandise, orany part thereof, without prejudice to this insurance; not shall the actsof the Japan Air Lines, or the Assured, or the Company, in recovering,saving and preserving the property insured, in case of disaster, beconsidered a waiver or an acceptance of abandonment, to thecharges whereof, the said Insurance Company will contributeaccording to the rate and quantity of the sum herein insured.

24.Payment of loss
In case of loss, such loss to be paid within thirty days after proof ofloss, proof of interest, and adjustment thereof (the amount ofpremium, if unpaid, and all sums due to the Company, from theAssured when such loss becomes due being first deducted, and allsums coming due being first paid or secured to the satisfaction of theCompany). Proofs of loss to be authenticated by the Agent of theCompany, if there be one where such proofs are taken; otherwise bysome other recognized Insurance Authority.

25.Waiver of subrogation
The Company hereby waives all right of recovery against the JapanAir Lines, and/or third parties released by the Japan Air Lines, for lossor damage or expense to air cargo transported by Japan Air Lines, orother carriers.

26.Constructive total loss
No recovery for a Constructive Total Loss shall be had hereunderunless the property insured is reasonably abandoned on account of itsactual total loss appearing to be unavoidable, or because it cannot bepreserved from actual loss without an expenditure which wouldexceed its value when the expenditure had been incurred.

27.Partial loss
In case of partial loss by perils insured against, the proportion of lossshall be determined by a separation of the damaged portion of theinsured property from the sound and by an agreed estimate (bysurvey) of the percentage of damage of such portion; or if suchagreement is not practicable, then by sale acceptable to both partiesof such damaged portion for the account of the owner of the property.

28.Other Insurance
a. If an interest insured hereunder is covered by other insurancewhich attached prior to the coverage provided by this policy, thenthe Company shall be liable only for the amount in excess of suchprior insurance; the Company to return to the Assured premiumequivalent to the cost of the prior insurance at the Company'srates.
b. If an interest insured hereunder is covered by other insurancewhich attached subsequent to the coverage provided by thispolicy, then the Company shall nevertheless be liable for the fullamount of the insurance without right to claim contribution fromthe subsequent insurers.
c. Other insurance upon the property of same attaching date as thecoverage provided by this policy shall be deemed simultaneous,and the Company will be liable only for a ratable contribution to theloss of damage in proportion to the amount for which theCompany would otherwise be liable under this policy, and willreturn to the Assured an amount of premium proportionate to suchreduction of liability.

29. This policy shall be void if assigned or transferred without the written consent of the Company.

30. Claims
Any claim for compensation must be sent immediately to the final air carrier as well as to the Japan Air Lines and the following documents have to be sent to the nearest Japan Air Lines' office as soon as practicable:
a. Survey report concerning proof of loss or damage;
b. Copy of the AWB (or Certificate, if any);
c. Original or certified copy of commercial invoice. If the consignment consists of personal effects, used articles removal, etc..., a specification of all articles with their value;
d. Claimant's detailed statement of loss or damage;
e. Packing list;
f. Copy of claimants' protestation to the last carrier and carrier's original reply.

31. Valuable cargo
This insurance does not cover any loss or damage to valuable cargo except for the case where the value for carriage is declared and stated on the AWB and the valuation charge is paid or is to be paid to Japan Air Lines for such a declaration.

32. Cover for WAR, S.R. & C.C. Risks
Notwithstanding the provisions of C.6., PARAMOUNT WARRANTIES, C.17. Explosion clause, the risks for war, strikes, riots and Civil Commotions are covered subject to the payment of an extra premium, if these coverages are required. In this case the conditions of coverage are subject to the following clauses:
a. Institute War Clause (Air)(excl. sending by Post);
b. Institute War Cancellation Clause (Cargo);
c. Institute Strikes Riots and Civil Commotions clauses;
d. Institute Strikes Riots & Civil Commotions Cancellation clause.

33. Special Conditions for plants
(This special clause shall be applied only to Air Cargo of plants including bulbs, seeds, fruits and vegetables etc.) Notwithstanding the provisions C.8. Delay Clause and C.9. Cold, Pressure clause, the Company shall be liable for average, irrespective of percentage, due to:
a. Freshwater condensation, heat and/or heating and/or choking and/or suffocation and/or sweat and/or sweating and/or sprouting and/or spontaneous combustion and/or vice propre and/or explosion and/or other accidents by external causes from any cause or nature whatsoever.
b. Theft, pilferage, short and non-delivery, irrespective of percentage on full insured value and damage by rates and/or vermin, irrespective of percentage.
c. The influence of other goods in the same ship or the same means of conveyance, no matter from what cause the bad influence arose.
Warranted that the air cargo of plants is accompanied by all documents and/or licences that are required at the time of forwarding that air cargo of plants by virtue of the rules prescribed by the authorities concerned for free export, import, transit or transport to the final destination, excluding claims arising from prohibition of export or import. The consignees are bound to carefully examine consignments of bulbs or plants immediately on arrival at final destination i.e. at any rate within thirty days after arrival and if found to be damaged by any cause insured against to promptly call upon nearest Japan Air Lines' office for an inspection and report of survey.

34. Payment of premium
Insurance premium shall be prepaid by the shipper at the time of issuance of the AWB. When the shipment is forwarded on charges collect basis, the insurance premium will be advanced by Japan Air Lines and shall be collected from the consignee at the time of delivery of the shipment at destination.

35. Certificates of insurance
Any shipper may ask for an extra certificate of insurance in addition to Shipper's copy of the AWB for his own use, such as banking transaction.

36. Insurance rates and premiums
The insurance premium is computed by multiplying the appropriate rate in the following table by each USD 100.00 of the value specified for insurance by the shipper, fractions to be charged proportionately.

a. For General Cargo (incl. Valuable Cargo)
TABLES OF INSURANCE PREMIUMS BY ZONE NUMBERS
(Insurance premium rates are stated in Cents per each USD 100.00 of the Value specified for Insurance).
To determine Insurance premium:
First, refer to the List of countries (which is attached below) to find the zone number of each of the two countries - (Origin and destination countries).
Second, select the appropriate zone number for the origin country along the top row and the appropriate zone number for the destination country along the side column of zone numbers.
Third, the insurance premium will be found where the origin row number and destination column number intersect.

Zone No. Zone 1 2 3 4 5
1 Asia, Oceania 18 18 18 25 25
2 North America 18 18 18 25 25
3 Europe 18 18 18 25 25
4 Centr./S. America 25 25 25 25 25
5 Middle East, Africa 25 25 25 25 25

Note
The minimum premium shall be no less than those which are shown in the above Rate Table, notwithstanding the values declared with respect to the shipment to be insured.

b. For Plants
USD 2.10 per USD 100.00 of the declared value for insurance irrespective of destination of shipments.

Note
A value for insurance per shipment for plants shall not exceed USD 1000.00 c. For Live Animals, Fish, Reptiles, Insects and Birds etc. USD 3.50 per USD 100.00 of the declared value for insurance, irrespective of destination of shipment.

Note
Insurance on live animals, fish, reptiles, insects and birds covers against death or mortality or other injury rendering death necessary, subject to a value for insurance per animal not exceeding USD 1,000 and a maximum of USD 5,000 per shipment.

TABLE OF INSURANCE ZONE NUMBERS
COUNTRIES ZONE
Aden
Afghanistan
Alaska
Albania
Algeria
Andorra
Angola
Antigua
Argentina
Ascension Island
Australia
Austria
Azores
5
1
2
3
5
3
5
4
4
5
1
3
3
Bahamas
Bahrain
Balearic Islands
Bangladesh
Barbados
Basutoland
Bechuanaland
Belgium
Belize
Benin
Bermuda
Bolivia
Botswana
Brazil
Brunei
Bulgaria
Burkina Faso
Burundi
4
5
3
1
4
5
5
3
4
5
2
4
5
4
1
3
5
5
Cambodia
Cameroon
Canada
Canary Islands
Canton Island
Cape Verde Islands
Caroline Islands
Cayman Island
Central African Republic
Ceylon
Chad
Chile
China(Peoples Rep. of)
Colombia
Congo, Republic of the
Corsica
Costa Rica
Cote d'lvoire
Crete
Cuba
Cyprus
Czech Republic
1
5
2
5
1
5
1
4
5
1
5
4
1
4
5
3
4
5
3
4
3
3
Denmark
Djibouti
Dominica, W.I.
Dominican Republic
3
5
4
4
Ecuador
Egypt, Arab. Rep. of
El Salvador
Eastern Caribbean
England
Equatorial Guinea
Eritrea
Ethiopia
4
5
4
4
3
5
5
5
Falkland Islands
Faroe Islands
Fiji Islands
Finland
Formosa
France
French Guiana
French Oceania
French Territory of the
Afars and Issas
4
3
1
3
1
3
4
1
5
COUNTRIES ZONE
Gabon
Gambia
Germany
Ghana
Gibraltar
Gilbert & Ellice Islands
Great Britain
Greece
Greenland
Grenada
Guadeloupe
Guam
Guatemala
Guinea
Guinea Bissau
Guyana
5
5
3
5
3
1
3
3
2
4
4
1
4
5
5
4
Haiti
Hawaii
Honduras
Hong Kong
Hungary
4
2
4
1
3
Iceland
Ifni
India
Indonesia
Iran
Iraq
Ireland
Israel
Italy
3
5
1
1
5
5
3
5
3
Jamaica
Japan
Jordan
4
1
5
Kenya
Korea
Kuwait
5
1
5
Laos
Lebanon
Lesotho
Leeward Islands
Liberia
Libya
Liechtenstein
Luxembourg
1
5
5
4
5
5
3
3
Macao
Madeira Islands
Malagasy Republic
Malawi
Malaysia
Mali Republic
Malta
Mariana Islands
Marshall Islands
Martinique
Mauritania
Mauritius
Mexico
Midway Islands
Monaco
Montserrat
Morocco
Mozambique
Myanmar
1
3
5
5
1
5
3
1
1
4
5
5
4
2
3
4
5
5
1
Namibia
Nauru Island
Nepal
Netherlands
Neth. New Guinea
Neth. Antilles
Nevis, W.I.
New Caledonia
New Guinea
New Hebrides
New Zealand
Nicaragua
Niger
Nigeria
North Borneo
Norway
Northern Ireland
5
1
1
3
1
1
4
1
1
1
1
4
5
5
1
3
3
Okinawa
Oman
1
5
COUNTRIES ZONE
Pakistan
Panama
Papua
Pakistan
Panama
Papua
Paraguay
Peru
Philippines
Pitcaim Island
Poland
Portugal
Port. Guinea
Port. Timor
Puerto Rico
1
4
1
1
4
1
4
4
1
1
3
3
5
1
4
Qatar 5
Reunion Island
Romania
Russia
Rwanda
5
3
1
5
Sao Tome
St. Helena
St. Kitts
St. Lucia
St. Martin Island
St. Vincent
Samoa
Sarawak
Sardinia
Saudi Arabia
Scotland
Senegal
Seychelles
Sierra Leone
Singapore
Slovakia
Solomon Islands
Somalia Republic
South Africa, Republic of
Spain
Spanish Guinea
Spanish Sahara
Sri Lanka
Sudanese Republic
Sudan, Republic of
Surinam
Sweden
Switzerland
Syria
5
5
4
4
4
4
1
1
3
5
3
5
5
5
1
3
1
5
5
3
5
5
1
5
5
4
3
3
5
Tahiti
Taiwan
Tanzania
Thailand
Tibet
Tobago
Togo
Tonga Island
Trinidad and Tobago
Tristan da Cunha
Tunisia
Turkey
1
1
5
1
1
4
5
1
4
4
5
3
Uganda
United Arab Emirates
United Kingdom
United States
Uruguay
5
5
3
2
4
Vatican State
Venezuela
Vietnam
Virgin Islands
3
4
1
4
Wake Island
Wales
1
3
Yemen
Yugoslavia
5
3
Zaire Rep.
Zambia
Zanzibar
Zimbabwe
5
5
5
5