Dalian Airlines Limited General Conditions of International Carriage for Cargo is now published and will be implemented from January 1st of 2017.

It is declared.

Dalian Airlines Limited

2016.12.20

ARTICLE 1 - DEFINITIONS

1.1 “THE CONDITIONS” refer to “General Conditions of International Carriage for Cargo of Dalian Airlines Limited”. Except as the context otherwise requires, the terms as used in the Conditions shall have the following meanings:

1.2 “CARRIER” means the air carrier who issues the Air Waybill and specifies its airline code on the Air Waybill and any person or organization that undertakes to perform any other services related to such carriage, including Our Company.

1.3 "WE" and "OUR COMPANY" refers to Dalian Airlines Limited. “US” and "OUR" shall be construed accordingly.

1.4 “CARGO” means any ? Item carried or to be carried in an aircraft, including baggage carried under an Air Waybill or Shipment Record, but not including mails or baggage carried under a Passenger Ticket and Baggage Check.

1.5 “CONSIGNED CARGO” means the cargo held by the Carrier, of which the contract of carriage has been established.

1.6 “INTERNATIONAL CARRIAGE” means, except as otherwise provided in the Conventions, the carriage in which, according to the contract of carriage, the place of departure, the place of destination or the agreed stopover, whether or not there is a break or a transfer in the course of carriage, is not situated within the territory of the same country.

1.7 “AGREED STOPOVER” means, except for the place of departure and destination, the agreed place of stopover in the course of carriage as provided in the Air Waybill or our timetable or the contract of carriage.

1.8 “SHIPPER’S LETTER OF INSTRUCTION (SLI) ” means the written documents provided by the Shipper for the Carrier to prepare an air waybill on behalf of the Shipper.

1.9 “AIR WAYBILL” (hereinafter referred to as “AWB”) means the document entitled “Air Waybill” which is completed by or on behalf of the Shipper and which serves as the initial evidence for the contract between the Shipper and the Carrier(s) for carriage of the Cargo over the routes of the Carrier.

1.10 "A CONSIGNMENT” means one or more pieces of Cargo accepted by the Carrier under a single AWB, for carriage to one consignee at one destination.

1.11 “ISSUING CARRIER” means the Carrier who issues its Air Waybill and establishes the contract for carriage of the Cargo with the Shipper.

1.12 “ACTUAL CARRIER” means the Carrier who performs the entire or partial carriage under the authorization of the Issuing Carrier.

1.13 “CONVENTIONS” means the following applicable instruments:

-the Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw on 12 October 1929 (hereinafter referred to as the “Warsaw Convention”);

- the Protocol to amend Warwaw Convention signed at Hague on 28 September 1955 (hereinafter referred to as the “Hague Protocol”);

- the Convention for the Unification of Certain Rules for International Carriage by Air; done at Montreal on 28 May 1999 (hereinafter referred to as the “Montreal Convention”).

1.14 “AGENT” means the person or organization expressly authorized to act for or on behalf of the Carrier or the Shipper in relation to the carriage of the Cargo.

1.15 “SHIPPER” means the person or organization whose name appears on the AWB, as the party contracting with the Carrier for carriage of the Cargo.

1.16 “CONSIGNEE” means the person or organization whose name appears on the AWB, as the party to whom the Cargo is to be delivered by the Carrier.

1.17 “SPECIAL CARGO” means the Cargo which needs special attention in course of its acceptance, storage, transport and delivery due to its nature, value or other conditions.

1.18 “SHIPMENT RECORD” means any record of the contract of carriage preserved by the Carrier, evidenced by means other than an AWB.

1.19 “TARIFF” means the rates for carriage of the Cargo from the airport of departure to the airport of destination, as published by the Carrier and in effect on the date of the execution of the contract of carriage by the Shipper and the Carrier, or as agreed between the contracting parties.

1.20 “FREIGHT CHARGES” mean the amounts to be paid by the Shipper or the Consignee and/or its Agent to the Carrier when the Cargo is consigned to the Carrier or delivered to the Consignee, including freight charges and other charges.

1.21 “GROSS WEIGHT” means the weight of the Cargo measured by an officially authorized weighing device, including the weight of the package and platform.

1.22 “VOLUME WEIGHT” means the weight of the Cargo calculated by the conversion of the volume of the Cargo. According to IATA rules, 6000 cubic centimeters equals 1 kilogram.

1.23 “INTERNATIONAL AIR TRANSPORTATION ASSOCIATION” abbreviated as “IATA”, means a non-governmental international organization constituted voluntarily by a group of enterprises in the world conducting air transportation business.

1.24 “CHARGEABLE WEIGHT” means the weight on the basis of which Freight Charges are calculated. The Chargeable Weight is generally the actual Gross Weight or Volume Weight of the Cargo, whichever is higher, provided that where a lower Tariff for a higher minimum weight applies, the higher minimum weight shall be retained as the Chargeable Weight.

1.25 “PREPAID” means that the Shipper pays the Carrier all the charges in relation to carriage of the Cargo when tendering the Cargo in accordance with the contract of carriage.

1.26 “COLLECT” means that the Consignee pays the Carrier all the charges in relation to carriage of the Cargo when picking up the Cargo in accordance with the contract of carriage.

1.27 “CHARTER CARRIAGE” means that the Shipper hires the entire capacity of the Carrier’s aircraft for the carriage of the Cargo.

1.28 “SPECIAL DRAWING RIGHT”, also named “Paper Gold”, means a reserve asset and a unit of account, as defined by the International Monetary Fund (hereinafter referred to as “SDR”).

1.29 “TACT” means the Air Cargo Tariff Manual published by IATA containing the Tariff for carriage over the worldwide sectors.

1.30 “force majeure” means the objective circumstances, which are abnormal, unforeseen, uncontrollable, and unconquerable.

1.31 “DAMAGE” means the loss arising from the destruction or loss of, or damage to the Consigned Cargo in the course of Carriage.

1.32 “COURSE OF CARRIAGE” means the period after the consigning and prior to the delivery of the Cargo when the Consigned Cargo is in the custody of the Carrier.

1.33 “AFTER CONSIGNING” means that the AWB is issued with signatures of both the Shipper and the Carrier, and the Consigned Cargo is tendered to the Carrier.

1.34 “DELIVERY OF CARGO” means that the Consignee signs on the AWB upon acceptance of the Cargo and the Carrier delivers the Cargo to the Consignee.

1.35 “LAWS AND REGULATIONS” mean laws, regulations of any country and rules, orders of any administrative authorities of any country where the Cargo is flown from, to or over and the relevant regulations of the Carrier.

1.36 “SUCCESSIVE CARRIAGE” means the carriage performed as a unified and unseverable service based on a unified contract or several contracts of carriage(s) by several carriers.

1.37 “CODE-SHARING” means the use of a flight number by a non-operating carrier concurrent with the flight number of the operating carrier performing the carriage.

1.38 “DAYS” mean full calendar days, including Sundays and legal public holidays; upon establishment of a term of validity, the day of issuance of the carriage document, the day of flight departure or the day of sending the notice shall not be counted.

 

ARTICLE 2 - BASIS AND SCOPE OF APPLICATION

2.1 Basis

The Conditions are established on the basis of Laws and Regulations of the People’s Republic of China and the international conventions or bilateral agreements and protocols approved by Chinese Aviation authority.

2.2 Scope of Application

2.2.1 The Conditions shall apply to the International Carriage of the Cargo, including all services incidental thereto, performed by Our Company. In the event of any inconsistency between the provisions involved in the Conditions and the applicable laws or our Tariff rules, the latter shall prevail. The remaining provisions of the Conditions shall remain effective.

2.2.2 Except as otherwise provided, the Conditions also apply to the air carriage of the Cargo between the mainland of China and Hong Kong SAR or Macao SAR.

2.2.3 Unless the contract of gratuitous carriage excludes the applicability of all or any part of the Conditions, the Conditions shall apply to the gratuitous carriage approved by Dalian Airlines Limited.

2.2.4 With respect to the carriage of the Cargo performed pursuant to a charter agreement, the carriage conditions in the charter agreement shall be observed. The provisions of the Conditions shall only apply to the extent as not provided in said charter agreement.

2.2.5 Except as otherwise agreed, in case of any divergence between the Conditions and the provisions contained in our regulations of carriage for the Cargo, the Conditions shall prevail.

2.2.6 Over some flight routes, we performed cargo carriage through “Code-Sharing flight” or other carriers’ flight with the authorization, which means even if the Shipper has booked our flight and our AWB has been issued, the consigned Cargo may be transported by another carrier. In this case, the provisions of the Conditions shall apply likewise.

2.2.7 For the carriage of air mails, the conventions and treaties between the governments, if any, shall be observed and the Conditions shall not apply.

 

ARTICLE 3 - SHIPPER’S RESPONSIBILITY

3.1.1 The Shipper shall comply with the applicable Conventions, Laws and Regulations and the Conditions when consigning the Cargo. The Shipper shall be liable for any Loss which may be caused thereby to us or to any other person to whom we are liable, by reason of the Shipper’s violation of the applicable Conventions, Laws and Regulations and the Conditions. The Shipper shall ensure that:

3.1.1.1 The Consigned Cargo is permitted by the laws or regulations of any country to be flown from, to or over;

3.1.1.2 The Cargo is packed in a manner suitable for carriage by air;

3.1.1.3 The requisite shipping documents are complete and valid;

3.1.1.4 The Consigned Cargo shall not endanger aircrafts, passengers, relevant personnel and flight safety; the Cargo shall not annoy passengers.

3.1.2 For the Cargo requiring examination and inspection by relevant administrations, the Shipper shall be obligated to complete the relevant materials or documents before handling the formalities for consigning the Cargo. The Shipper shall furnish such materials and documents so as to complete the formalities required by Laws and Regulations before the Cargo is delivered to the Consignee. The Shipper shall be liable to the Carrier for failure to transport or deliver the Cargo on time, due to the lack, insufficiency, incorrectness or incompliance of such materials or documents with Laws and Regulations.

Except as otherwise provided by Laws and Regulations, we are under no obligation to inspect the materials or documents as mentioned above.

3.1.3 The Shipper shall, prior to consigning, know our regulations and requirements in relation to the carriage of the Cargo. The Shipper shall be liable for any Loss caused to us and others by reason of the Shipper’s violation of these regulations and requirements.

3.1.4 The Shipper is responsible for the authenticity, accuracy and completeness of the particulars and statements inserted in the AWB. The Shipper shall be liable for any Loss incurred to us or the third party, by reason of the inauthenticity, inaccuracy or incompleteness of the particulars and statements furnished by the Shipper.

3.1.5 When the Cargo is assembled with our ULD by the Shipper, our relevant regulations shall be complied with. The Shipper shall be liable for any damage incurred due to the Shipper’s violation of such regulations.

3.2 Joint Responsibility

3.2.1 The Shipper shall be responsible for the payment of all the charges to us. The Shipper is liable for all charges and expenses that the Consignee refuses to pay or cannot afford, including charges Collect, charges Collect fees, storage fees etc. The Shipper shall also be responsible for the charges incurred by returning the Cargo to the airport of departure as per Shipper’s instructions.

3.2.2 The Shipper shall guarantee payment of all expenditures, penalties, losses and other charges which may be incurred due to the following reasons:

3.2.2.1 that the Consigned Cargo includes articles which are prohibited.

3.2.2.2 that the restricted Cargo does not meet the requirements of the restrictions.

3.2.2.3 that the marking, quantity, address, packaging or commodity of the Consigned Cargo are incorrect, inaccurate or incomplete.

3.2.2.4 that the license or certificate and document for export or import of the Consigned Cargo are absent, delayed or incorrect.

3.2.2.5 that the actual commodity, weight or volume of the Cargo is not consistent with the AWB.

3.2.2.6 the penalties, hold and rejection of import by the customs, the police, the inspection and quarantine administrative bureau and other administrations because of the Consigned Cargo or the documents.

3.3 Packaging

3.3.1 The Shipper shall adopt appropriate materials for interior and exterior packaging based on the nature, value, weight, shape and volume of the Cargo and ensure that the package is suitable for air transportation. For valuable cargo or cashes at the risk of robbery or theft, the Shipper shall use neutral packaging without indication of the contents.

3.3.2 The Shipper shall ensure that the packaging of the Consigned Cargo would not be damaged, dispersed and leaking in the Course of Carriage, and would not cause personal injury, damage or pollute aircraft, equipment or other cargo, baggage or mails.

3.3.3 The packaging materials of the Cargo used by the Shipper must be in compliance with applicable Laws and Regulations of any country to be flown from, to or over.

3.4 Marking and Labels

3.4.1 Each package shall be marked with airport of origin, destination, Shipper’s and Consignee’s name, address, telephone number and other information which shall be clear, legible and permanent; if the Consigned Cargo is dangerous goods, relevant information shall be marked on the outside the package of the Cargo in accordance with applicable Laws and Regulations.

3.4.2 The Shipper shall stick or attach identification labels to the out-package of each piece of the Consigned Cargo. In case the Consigned Cargo is Special Cargo, the Shipper shall stick or attach Special Cargo labels and handling labels to the out-package of each piece of the Cargo based on the nature of the Cargo.

3.4.3 Any irrelevant mark and label on the out-package shall be cleared to ensure rapid, safe and correct transportation.

ARTICLE 4 - WEIGHT AND DIMENSION

4.1 The weight of the Consigned Cargo is measured by Gross Weight, of which the unit is “kg” (kilogram) and the minimum rounding off unit is 0.1kilogram.

4.2 The minimum dimension of each single Consigned Cargo is 10cm×20cm×30cm, or the sum of length, width and height shall not be less than 60cm. The Shipper shall enlarge the package of any Cargo not up to the minimum dimension requirement.

4.3 Maximum allowed weight and dimension of the Cargo shall be determined by routing, aircraft types, and the storage and loading/unloading facilities of airport of departure, transfer and destination.

ARTICLE 5 - AIR WAYBILL

5.1 The AWB consists of three originals and nine copies. Original 1 is for the Issuing Carrier, Original 2 is for the Consignee and Original 3 is for the Shipper. The three originals shall be with equal legal effect.

5.2 The AWB is non-negotiable. The negotiable AWB shall be of no effect.

5.3 The AWB shall be completed and tendered with the Cargo by the Shipper or its Agent. When We complete the AWB based on the Shipper’s Letter of Instruction provided by the Shipper or its Agent, and the AWB has been reviewed and signed by the Shipper, except with proof to the contrary, We shall be deemed to have acted on behalf of the Shipper. The AWB so completed shall not become effective unless it is signed or stamped by us and the Shipper.

5.4 Subject to our regulations if applicable, the AWB may be made out and stored in electronic form and signed by electronic signature. Upon handing over or acceptance of the Cargo, the hard copy of the electronic AWB must be available.

5.5 AWBs which have been altered or erased by the Shipper may be rejected.

5.6 When the Consigned Cargo consists of more than one package, separate AWBs may be required based on the nature of the Cargo or safety requirements.

5.7 The Shipper shall indicate clearly on the AWB for any obvious defectiveness of the package. Upon the Shipper’s failure to do so, We may require the Shipper to remark on the AWB about such defectiveness or to authorize us to modify or remark on the AWB. If the AWB tendered with the Cargo does not specify all the required particulars or the specifications are not correct, we (without being obliged to do so) may have the authorization of the Shipper to complete or alterate the AWB to the extent possible.

ARTICLE 6 - FREIGHT CHARGES

6.1 Air Freight Charge

6.1.1 Air freight charge is the charge calculated on the basis of the applicable Tariff and the Chargeable Weight of the Consigned Cargo.

6.1.2 The Chargeable Weight of a Shipment shall be the Gross Weight or the Volume Weight of such Shipment, whichever is higher.

6.2 Other Charges

6.2.1 Other charges are charges in relation to carriage of the Consigned Cargo, which excludes the air freight charge and valuation charges and shall be paid by the Shipper and/or the Consignee upon tendering and/or pick-up of the Cargo. Except as otherwise provided in our published Tariffs, such charges shall include but are not limited to the following:

6.2.1.1 Pick-up or delivery services between city terminal and the airports where we operate;

6.2.1.2 Storage fees;

6.2.1.3 Insurance fees;

6.2.1.4 Charges collect fees;

6.2.1.5 Customs fees;

6.2.1.6 Charges or fines levied or collected by the competent authorities, including customs duties;

6.2.1.7 Costs incurred from repairing defective packaging;

6.2.1.8 Charges for reloading or returning carriage of the Cargo with other means of transportation, as well as the charges for returning the Cargo to its departure station;

6.2.1.9 Surcharges;

6.2.1.10 Other similar services or charges.

6.3 Declared Value of Cargo for Carriage and Valuation Charges

6.3.1 Declared value of Cargo for carriage is the value of the Consigned Cargo when it is picked up at the destination. It is specially declared upon the Shipper tendering the Cargo and shall be filled in the proper column of the AWB.

6.3.2 The Shipper may declare the value of Cargo for carriage upon tendering the Cargo. If the declared value of Cargo for carriage per kilo in Gross Weight exceeds 17 SDR or its equivalent currency, the Shipper shall pay the valuation charges. The calculation formula of the valuation charges is as below:

[Declared value of Cargo for carriage - (Gross Weight of the Cargo x 17SDR)] x 0.75%

6.3.3 The Shipper shall not change the declared value of Cargo for carriage entered in the AWB, which has been validated with the signatures of the two contracting parties.

6.3.4 We are entitled to determine the limit of the value of a Shipment. If the declared value of any individual Shipment exceeds such limit, we will require the Shipper to ship the Cargo in several batches or adopt other security measures. If the Shipper fails to do so, we may reserve the right to refuse the carriage of the Cargo.

6.4 Payment of Freight Charges

6.4.1 The Shipper shall pay the Freight Charges in the currency acceptable to us.

6.4.2 All the applicable Freight Charges shall be Prepaid upon tendering of the Cargo by the Shipper, or may be paid by the Consignee before the pick-up of the Cargo with our consent. If the latter applies, Laws and Regulations of the destination country and the Carrier’s requirements shall be complied with.

6.4.3 Only the charge-collect Cargo could be accepted whose destinations are prescribed in TACT. In any circumstances we are entitled to refuse the carriage of the following charge-collect Cargo:

6.4.3.1 the exchange of the local currency to other currencies is not allowed by the destination country;

6.4.3.2 the remittance of the local currency to other countries is not allowed by the destination country;

6.4.3.3 the charges-collect Cargo is not accepted at the destination country.

6.4.4 Air freight charge and valuation charges shall only be both Prepaid or both Collect.

6.4.5 Whether any destroy, loss, damage of the Consigned Cargo occurred or not in the Course of Carriage, and whether the Consigned Cargo failed to be carried to the destination shown on the AWB, the liability of the Shipper or the Consignee to pay the applicable Freight Charges shall not be exempted.

6.4.6 If the Shipper or the Consignee fails to pay the Freight Charges or any portion thereof, we will hold the Cargo for a certain period of time until the Freight Charges are paid completely. If the Shipper or the Consignee refuses to pay the Freight Charges or any portion thereof, we will refuse the carriage or the Delivery of Cargo.

6.4.7 Adjustment of Tariff and Freight Charges

Where the Tariff or Freight Charges of the Cargo are adjusted, the adjusted Tariff and Freight Charges do not apply to the issued AWB.

ARTICLE 7 - CARRIAGE OF CARGO

7.1 Acceptance of Cargo

7.1.1 The following Cargo shall not be accepted:

7.1.1.1 the Cargo prohibited by the regulations or the orders of the administrative authorities.

7.1.1.2 the Cargo, for which the inspection, check or procedures required by the administrative authorities have not been completed.

7.1.1.3 the Cargo, of which the transportation requirements exceed our transportation and storage capabilities.

7.2 Cargo Security Check

7.2.1 Cargo security check shall be conducted in accordance with the regulations of administrative authorities.

7.2.2 When necessary, physical check shall be conducted on the Cargo and the relevant documents and materials. The Shipper is obliged to assist with the check.

7.2.3 We have responsibilities, but no obligations, to conduct the security check of the Consigned Cargo, documents and materials.

7.3 Routings

7.3.1 Unless specifically agreed by the contracting parties, we have no obligation to carry the Cargo by any specific aircraft type, on any specific flight, over any particular route, or to make connections at any point.

7.3.2 We are entitled to select the route of the Cargo or reroute the Cargo shown on the AWB based on flight or space availability.

7.4 Cargo Transportation Time Limit

7.4.1? To ensure that the Consigned Cargo is carried in time, it is necessary that the Shipper should book the flight and the date for carriage of the Cargo. If the flight and the date or the time limit for carriage are agreed and indicated on the AWB, we shall carry the Cargo as agreed provided that no such special circumstances occur as governmental acts or Force Majeure. If no agreement has been established, the Cargo shall be arranged for carriage in accordance with the sequence of the acceptance of the Consigned Cargo within a reasonable time limit.

7.4.2 Schedules shown in our timetables or published at any elsewhere form no part of the contract of carriage and are not fixed for commencement, completion of carriage or Delivery of Cargo.

7.5 Priority of Carriage

7.5.1 Subject to the applicable Laws and Regulations, we are entitled to determine, whenever or wherever, the priority of carriage between the materials for public interests or emergency relief and the Consigned Cargo or between mails and the Consigned Cargo. When necessary, we are entitled to continue any flight without any or part of the Cargo.

7.5.2 If as a result of such priority arrangement mentioned in Article 7.5.1, the Consigned Cargo is not carried or not carried on the agreed flight and date, or part of the Cargo needs to be unloaded from the flight, we will make reasonable arrangements for the carriage of the Cargo not carried in a timely manner for the interest of the Shipper. We will not be liable for any delay of the Consigned Cargo due to the priority arrangement after all possible measures have been taken or no measures are able to be taken.

7.5.3 To avoid any damage or danger, either in the course of the carriage, we may, subject to the approval of the customs authorities, upon giving notice to the Shipper or the Consignee, hold the Cargo in the warehouse or any other available places, at the expense of the Shipper or the Consignee. We may also deliver the Cargo to another Carrier for onward carriage to the destination.

ARTICLE 8- ALTERATION OF CARRIAGE

8.1 Shipper’s Right of Disposition

8.1.1 During the period after the acceptance of the Consigned Cargo by the Carrier and before the pick-up of the Cargo by the Consignee, the Shipper is entitled to exercise the right of disposition provided that the Shipper complies with all requirements prescribed in the contract of carriage.

8.1.2 The Shipper’s right of disposition shall terminate at the moment when the Consignee takes possession or picks up the Cargo or the AWB. Nevertheless, if the Consignee declines to accept the AWB or the Cargo, or the Consignee could not be contacted, such right of disposition shall continue to vest in the Shipper.

8.1.3 The Shipper may dispose the Cargo either:

8.1.3.1 by withdrawing it at the airport of departure or destination; or

8.1.3.2 by terminating the carriage at any transit point; or

8.1.3.3 by requiring delivery at destination or any transit point to a person other than the Consignee named in the AWB; or

8.1.3.4 by requiring returning the Consigned Cargo to the airport of departure.

8.1.4 The right of disposition could only be exercised by the Shipper or its designated Agent and shall only be applicable to the whole Consigned Cargo under a single AWB.

8.1.5 The Shipper shall be liable for any expenses and shall indemnify us for any Loss incurred as a result of the exercise of its right of disposition.

8.1.6 The exercise of the right of disposition must be subject to the applicable Laws and Regulations of the countries related with the carriage. Otherwise, we will deny such request of disposition.

8.1.7 The right of disposition over the Cargo shall only be exercised through the Issuing Carrier. The Shipper shall present the written application and the original for the Shipper of the AWB.

8.1.8 We shall inform the Shipper promptly if the Shipper’s requirement of the disposition over the Cargo is not practicable or feasible to be exercised.

8.2 Our Right to Alter Carriage

8.2.1 In order to guarantee timely transportation of the Consigned Cargo, we may change, even though we are not able to notify or have no time to notify the Shipper, the flight, routing, aircraft type and Carrier shown on the AWB.

8.2.2 We reserve the right to cancel, terminate, divert, reschedule, postpone any flight, or proceed with any flight without any Cargo or with part of the Cargo without prior notice, due to the following:

8.2.2.1 Governmental regulations, orders and requirements;

8.2.2.2 Force Majeure, including but not limited to weather conditions, riots, political disturbances, embargoes, wars, blockage, strikes, sabotages, unstable international conditions, terrorism or governmental warnings against terrorism or war..

8.2.3 In consideration of the interests of the Shipper, we may carry all or part of the Cargo, without prior notice, to the destination by other means of transportation.

8.2.4 To guarantee the flight safety and/or to comply with the relevant Laws and Regulations, we may continue the flight with all or part of the Consigned Cargo unloaded.

8.2.5 Except as otherwise provided in any applicable laws, we shall not be under any liability in the event that any flight is cancelled, rearranged or terminated at a place other than the place of destination for any reasons mentioned in Article 8.2.2, or in the event that the carriage of a Shipment is cancelled, rearranged, resumed or terminated.

8.3 Termination of Carriage

8.3.1 If a Shipment is identified to be prohibited from carriage by applicable Conventions, Laws and Regulations, or to be restricted from carriage and not to be in compliance with the requirements of restrictions, we will terminate the carriage of such Shipment. When necessary, we will leave such Shipment to be disposed by the administrative authorities.

8.3.2 If it is found that the nature or the defective packaging of the Consigned Cargo may endanger the safety of aircraft, personnel or property, we may, without prior notice, move or destroy the Cargo at any place and time without bearing any liability.

8.3.3 Subject to applicable Laws and Regulations and safety requirements, in the event that the Shipper requests to return the Cargo, of which the carriage is terminated, to the place of departure, we will follow the Shipper’s instruction and the Shipper shall bear any expenses thereof.

Article 9 - DELIVERY OF CARGO

9.1 Arrival Note

9.1.1 Once the consignment has reached the place of destination, we will promptly issue an "Arrival Note" to the consignee. The "Arrival Note" may be issued by phone, in writing, or any other means.

9.1.2 We will not be held liable if the consignee is unable to accept the delivery or has not received the notice promptly for reasons not generated by us.

9.2 Goods Delivery

9.2.1 Unless otherwise indicated on the Bill of Lading, we will only deliver the consignment to the consignee whose name is indicated on the Bill of Lading.

9.2.2 Unless otherwise agreed, the consignee must accept the delivery at the location as specified by us.

9.2.3 Upon delivery, if the consignee has discovered the goods to be destroyed, missing, damaged or delayed etc., the consignee must inform us immediately. After both parties have examined and acknowledged the condition of the goods, the goods delivery status must be recorded either as a factual record or as a detailed record in the Bill of Lading. The record must be signed and sealed by both parties. The consignee may use this record to file for claims in the future .

9.2.4 Upon delivery, if the consignee has not declared the goods to be in an unfit condition, it will be deemed that the consignment has been delivered without fault and in accordance with the contract of carriage.

9.2.5 In the event that either we have issued the "Arrival Note" to the consignee or the consignee has commenced the necessary customs formalities, but the consignment had to be handed over to the customs or relevant authorities in accordance with applicable laws or customs requirements, the consignment shall be deemed to have been delivered to the consignee. Under such circumstances, we will notify the consignee or shipper.

9.2.6 When the consignee has received / collected the Bill of Lading and (or) goods, he or she shall bear all transport-related costs and the payment of any outstanding charges. Unless otherwise agreed, the shipper and the consignee will be held jointly and severally liable. A transfer of the Bill of Lading or delivery of goods can be granted in accordance with a conditional payment.

9.2.7 During the transportation of live animals, we will not be held liable for death arising from natural causes, the decay of fresh perishable goods, or goods that may endanger the aircraft, staff or public safety. At any given time, necessary measures may be taken without notice to destroy, bury or abandon etc. the consignment. Either the consignee or shipper will bear the resulting costs.

9.3 Undelivered Goods

9.3.1 A consignment will be deemed as undelivered in the following scenarios:

9.3.1.1 At the first attempted delivery, the consignee has failed to accept the delivery within 14 days of the issuance of an Arrival Note. No further notification was provided at the station of origin or the shipper;

9.3.1.2 The consignee has indicated a clear refusal to accept the delivery or has refused to pay any applicable fees to accept the goods.

9.3.1.3 We were unable to contact the consignee because the name and address were wrongly indicated on the Bill of Lading.

9.3.2 In the event of non-delivery of the consignment, the following steps will be taken:

9.3.2.1 The station of origin will be notified. After which, the shipper is to notify the consignee for further actions. Any further processing will be in accordance with the shipper's instructions.

9.3.2.2 The consignment will be delivered back to the station of origin where it will await further instructions from the shipper.

9.3.2.3 After the consignment has been in storage for a full 30 days, the goods will be disposed of in accordance with national laws and regulations.

9.3.2.4 Public auction of all or part of the goods. In the event of non-delivery after the auction, we have the right to compensate ourselves, or the third-party carrier or other lawful claimants for payment of transportation costs, expenses, advanced payment and any other expenses generated from the auction. The shipper or consignee are to bear these costs. The auction proceeds do not abdicate the shipper or consignee from their payment responsibilities.

9.3.3 If according to certain laws and regulations, we are unable to deliver the consignment, we will notify the shipper of the final conclusion.

9.3.4 In the event of non-delivery, the shipper shall bear all costs and expenses, which includes the delivery of the consignment back to the station of origin. The consignee will be held jointly and severally liable.

9.3.5 If the consignment contains fresh perishable goods and decays as a result of flight delays, unclaimed delivery, refusal of goods acceptance or for any other reasons that could have contributed to the deterioration of the goods, at any given time, the following measures may be taken without notice to:

9.3.5.1 We will await further instructions from the shipper and will act accordingly. The shipper will have to bear any associated costs.

9.3.5.2 All or part of the entire consignment may be destroyed or abandoned.

9.3.5.3 In the event of a hazardous situation, the shipper must dispose of the goods appropriately without advance notice. Once sold or auctioned off, the proceeds collected will be used to settle all of our costs and expenses.

ARTICLE 10 - SPECIAL CARGO

10.1 Special Cargo includes dangerous goods, live animal, perishable goods, valuable goods, human remains, etc.

10.2 The Shipper shall comply with the regulations of relevant countries and Carriers concerning the transportation of Special Cargo; the consigned Special Cargo with two or more characteristics of Special Cargo shall conform simultaneously with the regulation and requirement of each characteristic of the Special Cargo.

10.3 Packaging of the Special Cargo shall be in compliance with the relevant requirements on packaging of Special Cargo.

10.4 The Shipper and the Consignee shall consign or pick up the Special Cargo at the Carrier’s designated locations.

ARTICLE 11 - CHARTER CARRIAGE

11.1 The Shipper shall present the charter application and sign the charter contract with us when hiring the entire space of our aircraft for Cargo transportation.

ARTICLE12 - LIABILITY AND COMPENSATION

12.1 Our Liability

12.1.1 We are liable for the Loss of the Cargo incurred in the Course of Carriage, except the liability waived in accordance with the Conventions, Laws and Regulations and the Conditions.

12.1.2 We are liable for any Loss in the Course of Carriage caused by delay of transportation according to the Conventions, Laws and Regulations and the Conditions, except under the circumstances that we have taken all reasonable measures or we are not able to take these measures and the circumstances as otherwise specified in the Conventions, Laws and Regulations and the Conditions.

12.1.3 We shall not be liable for the direct or consequential Loss arising from complying with the Conventions, Laws and Regulations or caused by Force Majeure. When the Consigned Cargo is prohibited by us or applicable Laws and Regulations, we will refuse to accept it and shall not be under any liability with respect thereto.

12.1.4 We shall not be liable for the destruction, loss or damage of the Cargo caused by the following reasons:

12.1.4.1 Force Majeure;

12.1.4.2 The inherent nature, quality or defect of the Cargo;

12.1.4.3 Improper packaging of the Cargo by anyone other than us or our employee or Agent;

12.1.4.4 Loss or damage of the inner pieces with intact package and unbroken seal;

12.1.4.5 Acts relevant to inbound or outbound or transit of the Cargo as implemented by national administrative authorities.

12.1.5 We shall not be liable for any Loss or damage arising from the injury or the death of an animal caused by natural reasons, by such conduct of the animal itself or any other animal such as biting, kicking, pushing or smothering, by the defect of the container, or by the inability of the animal to withstand unavoidable changes in the natural environment in the Course of Carriage.

12.1.6 We shall not be liable for the injury or death of the Cargo attendant caused by the Cargo itself in the Course of Carriage.

12.1.7 We shall not be liable for the deterioration or decay of the Cargo due to the changes of climate, temperature and height or other normal conditions or in the agreed carriage time.

12.1.8 Except as otherwise agreed, we shall not be liable for the consequential Loss caused by damage of the Cargo or carriage under the Conditions, including loss of turnover, profit, interest or revenue, loss of business opportunity, risk of currency, reduction of product or administrative punishment, etc, no matter whether or not we are aware of the possibility of the above Losses.

12.1.9 We shall not be liable for the Loss of the escorted Cargo unless it is proved to have been caused by our fault.

12.1.10? Our liability shall be correspondingly exempted or reduced according to the degree of faults resulting in the Loss, if the destruction, loss, damage or delay of the Cargo is proved to be caused by the Shipper’s or the Consignee’s fault.

12.1.11 When our liability is released or limited according to the Conditions, such release or limit shall likewise apply to our Agents, employees, representatives or relevant Carriers, and any other Carriers whose aircrafts or other transportation facility are used for carriage.

12.1.12 In a Successive Carriage, each Carrier shall be liable as one contracting party for the sector of carriage in accordance with the contract of carriage for the Cargo.

12.2 Claim

12.2.1 Subject to Article 9.2.3 hereof, the Shipper could make a claim against us for the Loss of the Cargo.

12.2.2 The claim for the Loss of the Cargo shall be made in writing within 14 days from the receiving date of the Cargo.

12.2.3 The claim for delay of the Cargo shall be made in writing within 21 days from the date on which the Cargo is placed at the disposal of the Consignee.

12.2.4 The claim for non-delivery of the Cargo shall be made by the Shipper in writing within 120 days from the issuing date of the AWB.

12.2.5 Claims raised beyond the deadline indicated in Article 12.2.1, 12.2.2 and 12.2.3 will not be accepted.

12.2.6 We will reply clearly to the Shipper in the required time limit for those claims which are not in compliance with the Conventions, Laws and Regulations.

12.3 Compensation

12.3.1 The scope of our liability is subject to the regulations of the applicable Conventions and laws. Unless otherwise provided in the applicable Conventions or laws for the benefit of the legal claimant, the following shall apply:

12.3.1.1 Our liability limit shall be the amount of the declared value of Cargo for carriage, if the Shipper declares the value of Cargo for carriage and pays the valuation charge. We will compensate for the actual Loss if it is proved that the actual Loss is less than the declared value of Cargo for carriage.

12.3.1.2 Our liability limit for the non-value declared Cargo is the limit of 17SDR/KG or equivalent currency stipulated in the Montreal Convention of 1999, no matter the country of departure or destination joins the Convention or not. We will compensate for the actual Loss if it is proved to be less than the limitation of liability provided in the Convention.

12.3.1.3 The claimant shall provide the proof of the actual value of the Cargo when raising a claim.

12.3.2 Our liability shall be limited to the weight of the relevant packages when part of or any package of the Cargo is destroyed, lost or damaged, etc. In case that the destruction, loss or damage of any packages affects the value of other packages under the same AWB, the weight of other packages shall be considered when determining the limit of liability. In the absence of any proof to the contrary, the proportion of the value of the Cargo destroyed, lost or damaged in the value of the entire Cargo shall be determined according to the proportion of the weight of the Cargo destroyed, lost or damaged in the weight of the entire Cargo.

ARTICLE 13 - SETTLEMENT OF DISPUTE

13.1 Any dispute in relation to the carriage, which cannot be solved by the Shipper and us, can be settled by litigation or arbitration.

13.2 For air transportation dispute, the limitation of litigation actions is 2 years from the day on which the aircraft arrives at the destination, should arrive at the destination, or on which the carriage terminates, except as otherwise provided in the laws of the country where the appellate court locates.

13.3 For destruction, loss or damage occurring during the carriage operated by several successive Carriers, the Shipper is entitled to settle the dispute by arbitration or litigation against the first and last Carrier; the Shipper is also entitled to solve the dispute by arbitration or direct litigation against the Carrier in whose sector of carriage the destruction, loss or damage occurred.

13.4 With respect to the carriage of Actual Carriers, the Shipper can raise litigation against the Actual Carriers and the Issuing Carrier respectively or simultaneously. The defendant Carrier is entitled to require another Carrier to be on litigation.

13.5 The dispute arising from or with respect to the Conditions shall be governed by the laws of the People's Republic of China. On the premise that the Conventions are applicable, the litigation with respect to the Loss could be proceeded with at the choice of the claimant, in the court at our headquarters or major business location, or at our branch office where the contract has been concluded, or at the court of the destination.

ARTICLE14- EFFECTIVENESS, MODIFICATION AND INTERPRETATION

14.1 The Conditions shall be effective and implemented on and from 01 JAN, 2017.

14.2 The other terms of the Conditions shall remain valid in case that some terms of the Conditions are held invalid or unenforceable according to applicable laws.

14.3 Subject to the Laws and Regulations, we may modify any term of the Conditions without prior notice. Such modification shall not apply to the carriage which took place prior to the modification.

14.4 Our Agents, employees or representatives are not entitled to alter, modify or waive any terms of the Conditions.

14.5 Dalian Airlines Limited is responsible for the interpretation of the Conditions.