General Conditions of Carriage for Cargo

ARTICLE 1 - DEFINITIONS

1.1 “Conditions” refers to “General Conditions of Carriage for Cargo”. Except as the context otherwise requires, the terms as used in the Conditions shall have the following meanings:

1.2 “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 Warsaw 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”).

1.3 “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.

1.4 "We" refers to all Carriers operating under the IATA two-letter code “CA”, including Air China Limited, Air China Cargo Co., Ltd, Beijing Airlines Co., Ltd., Dalian Airlines Co., Ltd., and Air China Inner Mongolia Co., Ltd.. “US” and "OUR" shall be construed accordingly.

1.5 “Carrier” means the entity who issues the Air Waybill, agrees on terms of the carriage of Cargo, performs the carriage of Cargo or services related to such carriage.

1.6 “Shipper” means the person or organization whose name appears on the Air Waybill, as the party contracting with the Carrier for carriage of the Cargo. In the Conditions the “Shipper” shall be construed to include its Agent.

1.7 “Consignee” means the person or organization whose name appears on the Air Waybill, as the party to whom the Cargo is to be delivered by the Carrier.

1.8 “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.

1.9 “Cargo” means any item carried or to be carried in an aircraft, including baggage carried under an Air Waybill, but not including items prohibited to be carried, or mails or baggage carried under a Passenger Ticket and Baggage Check.

1.10 "A Consignment” means one or more pieces of Cargo under a single Air Waybill for carriage to a single Consignee at a single destination.

1.11 “Special Cargo” means the Cargo which has special requirement or requires special measures in course of its acceptance, storage, loading, unloading, transport or delivery to ensure its safe and complete delivery to the destination.

1.12 "Carriage Documents" means the documents or tickets used during the carriage of Cargo to evidence the act of carriage and relevant information of the Cargo, including but are not limited to Air Waybills and air cargo and mail manifests.

1.13 “Airway Bill” (hereinafter referred to as “AWB”) means the document titled “Air Waybill” which is completed by the Shipper or the Carrier or its Agent 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. Air Waybills are categorised into paper Air Waybills and electronic Air Waybills, with electronic Air Waybills being stored and transmitted in the form of electronic data.

1.14 “Shipper’s Letter of Instruction” means the written documents provided by the Shipper to the Carrier or the Carrier’s Agent when authorising the Carrier or the Carrier’s Agent to fill out the AWB on behalf of the Shipper, in order to ensure the accurate completion of the AWB.

1.15 “Shipment Record” means any record of the contract of carriage preserved by the Carrier, evidenced by means other than an AWB.

1.16 “Domestic Carriage” means the carriage in which, according to the contract of carriage, the place of departure, the place of destination and the Agreed Stopover are situated within the territory of the People’s Republic of China (“PRC”).

1.17 “International Carriage” means 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 PRC.

1.18 “Agreed Stopover” means, except for the place of departure and destination, the place of stopover in the course of carriage of the consigned Cargo as provided in the AWB or our timetable or the contract of carriage.

1.19 “Tariff” means the rates per unit of weight for carriage of the Cargo by air 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 otherwise agreed between the contracting parties.

1.20 “Gross Weight” means the weight of the Cargo measured by an officially authorized weighing device, including the weight of the package and platform.

1.21 “Volume Weight” means the weight of the Cargo calculated by the conversion of the volume of the Cargo. According to IATA rules, every 6000 cubic centimetres is equivalent to 1 kilogram.

1.22 “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 if applying the Tariff corresponding to a higher weight breakpoint results in lower freight charges, the weight at that breakpoint shall be used as the Chargeable Weight.

1.23 “Air Freight Charge” means the charge calculated on the basis of the applicable Tariff and the Chargeable Weight of the consigned Cargo.

1.24 “Freight Charges” means the amounts to be paid by the Shipper and/or the Consignee to the Carrier or its Agent upon tendering and/or pick-up of the Cargo, including Air Freight Charges, valuation charges and Other Charges.

1.25 “Other Charges” means charges in relation to carriage of the Cargo, which excludes the Air Freight Charge and valuation charges and shall be paid by the Shipper and/or the Consignee to us upon tendering and/or pick-up of the Cargo. Except as otherwise provided in the published Tariffs, such charges shall include but are not limited to the fuel surcharges, storage fees, handling fees, inspection fees and freight collection fees.

1.26 “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.

1.27 “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.

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

1.29 “Delivery of Cargo” means that the Consignee signs for the consigned Cargo on the AWB or any other valid delivery document as agreed, at which point the Carrier delivers the Cargo to the Consignee.

1.30 “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.

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

1.32 “Force Majeure” means the abnormal, unforeseeable, unavoidable, uncontrollable, and insurmountable objective circumstances, including but not limited to extreme weather, natural disasters, riots, strikes, embargoes, wars, conflicts, pandemics, acts of terrorism and acts of government

1.33 “Laws and Regulations” mean the laws, regulations, government provisions and orders of the country where the place of departure, stopover or place of destination of the Cargo are located, as well as the applicable industry regulations and the relevant regulations of the Carrier.

1.34 “Days” mean full calendar days, including Sundays and legal public holidays.

ARTICLE 2 - BASIS AND SCOPE OF APPLICATION

2.1 Basis

The Conditions are formulated in accordance with the laws and regulations of the People’s Republic of China and the international conventions to which People’s Republic of China is a member state or bilateral agreements and protocols approved by Chinese government.

2.2 Scope of Application

2.2.1 The Conditions shall apply to the International Carriage of the Cargo, including all services related thereto, performed by us. In the event of any conflict or inconsistency between the provisions of the Conditions and the applicable Laws and Regulations or our Tariff rules, the relevant Laws and Regulations or our Tariff rules shall prevail. The remaining provisions of the Conditions shall remain in full effect.

2.2.2 Except as otherwise provided by Laws and Regulations, the Conditions shall apply to the air carriage of the Cargo within Mainland China, between Mainland China and Hong Kong Special Administrative Region, Macao Special Administrative Region, Taiwan Region, and other countries.

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 us.

2.2.4 The carriage of the Cargo performed pursuant to a Charter Carriage agreement shall be governed by the terms and conditions specified in the Charter Carriage Agreement. The provisions of the Conditions shall only apply to the extent as not provided in said Charter Carriage agreement.

2.2.5 If not stipulated in the Conditions, our latest published regulations, standards and requirements for carriage of the Cargo shall prevail.

2.2.6 Over certain routes, we operate Cargo carriage through “Code-Sharing flights” or on behalf of other Carriers’ flight with authorization, which means even if the Shipper books our flight and holds our AWB, the consigned Cargo may be actually transported by another Carrier. In such cases, the carriage of Cargo will still be governed by these terms, and the relevant rules and regulations of such other Carrier shall also apply.

2.2.7 The Conditions shall not apply to carriage of mails by air.

ARTICLE 3 - CARRIAGE OF THE CARGO

3.1 Air Waybill

3.1.1 The paper AWB consists of three originals. Original 1 is for the Carrier, Original 2 is for the Consignee and Original 3 is for the Shipper. The three originals shall have equal legal effect. The electronic AWB is both an electronic carriage contract and Carriage Document, which can be printed from the system in a fixed format and used as needed. The Shipper may use the electronic AWB provided it meets our requirement.

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

3.1.3 The paper AWB shall be completed and tendered with the Cargo by the Shipper. When We complete the AWB based on the Shipper’s Letter of Instruction provided by the Shipper, and it has been reviewed and signed or stamped by the Shipper, it shall be deemed to as having been completed by the Shipper. The AWB shall not become effective unless it is signed or stamped by us and the Shipper. In the case of signing the electronic carriage contract, the electronic AWB will automatically take effect after the AWB and Cargo information received in our system are verified to be consistent.

3.1.4 When using a paper AWB, if any content on the AWB completed by the Shipper is altered or deleted, we shall have the right to decline acceptance of such AWB.

3.1.5 When the consigned Cargo consists of more than one package, we may request the Shipper to complete separate AWBs for each package, based on the nature of the goods or safety requirements.

3.2 Weight and Dimension

3.2.1 The unit of the Gross Weight and the Chargeable Weight is “kg” (kilogram).

3.2.2 Our requirements for the packaging dimensions of the consigned Cargo are as follows: 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 such dimension requirement.

3.2.3 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, stopover and destination.

3.3 Declared Value and Valuation Charges

3.3.1 The Shipper may declare the value of the Cargo to us for the purpose of determining the Freight Charges or the limit of our liability for damage, loss, or delay of the Cargo. The declared value shall be filled in the proper column of the AWB. If the Shipper does not declare a value of the Cargo, such column of AWB shall be marked with “NVD”.

3.3.2 Valuation Charges shall be paid at the time of declaring value, and failure to pay the valuation charges shall be deemed to be the failure to declare the value. Once the AWB becomes effective, the Shipper shall not make any changes to the declared value stated in the AWB.

3.3.3 Valuation Charges

1) Valuation Charges on International Carriage of Cargo shall be calculated in accordance with the applicable TACT.

2) Valuation Charges on the Domestic Carriage of Cargo shall be calculated in accordance with the applicable civil aviation laws and regulations of the PRC.

3.3.4 We are entitled to determine the limit of the declared value of A Consignment. The limit of declared value for A Consignment of International Carriage is USD 100,000.00, and the limit of declared value for A Consignment of Domestic Carriage is CNY 500,000.00. If the declared value of A Consignment exceeds such limit, we shall have the right to require the Shipper to consign the Cargo in several batches or adopt special protection measures. If the Shipper accepts our special protection measures, it shall pay relevant fees to us. If the Shipper fails to do so, we shall have the right to decline the carriage of the Cargo.

3.4 Payment of Freight Charges

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

3.4.2 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, the laws and regulations of the destination country and the Carrier’s requirements shall be complied with.

3.4.3 We only accept the charge-collect Cargo to the countries prescribed in TACT. In any circumstances we are entitled to decline the carriage of the following charge-collect Cargo:

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

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

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

3.4.4 Air Freight Charge and valuation charges shall only be both Prepaid or both Collect.

3.4.5 Regardless of whether the consigned Cargo is destroyed, lost, damaged, or fails to reach the destination stated on the AWB during the course of carriage, the Shipper or the Consignee shall remain obligated pay the applicable Freight Charges.

3.4.6 If the Shipper fails to pay the Freight Charges or any portion thereof, we reserve the right to decline to accept the Cargo from the Shipper. If the Consignee refuses to pay the Freight Charges or any portion thereof, we shall be entitled to retain the Cargo until the Consignee has fully paid the Freight Charges, the storage fees and any other costs incurred as a result of the retention of the Cargo due to Consignee’s refusal to pay such Freight Charges.

3.4.7 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.

3.5 Carriage of Cargo

3.5.1 Acceptance of Cargo

3.5.1.1 We do not accept the following Cargo:

1) the Cargo prohibited by the laws, regulations or the orders of government;

2) the Cargo that do not meet government-mandated carriage requirements;

3) the Cargo that do not meet our standards and requirements for carriage;

4) Cargo whose carriage requirements exceed our carriage or storage capacity;

5) Cargo that we have specifically prohibited from carriage.

3.5.2 Cargo Security Checks

3.5.2.1 We reserve the right to conduct consigned Cargo security checks in accordance with regulations of the government.

3.5.2.2 We have the rights to conduct the security checks of the consigned Cargo and documents. The Shipper is obliged to assist with the check.

3.5.3 Routings

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

3.5.4 Cargo Carriage Time Limit

3.5.4.1 To ensure that the consigned Cargo is carried in time, the Shipper shall book the intended flight and the date for carriage of the Cargo. Unless there are exceptional circumstances, we will carry the Cargo on the agreed flight and date. In cases of exceptional circumstances (such as aircraft malfunction, flight cancellations, force majeure, etc.), we will arrange the carriage within a reasonable timeframe, based on the order in which the consigned Cargo is accepted.

3.5.4.2 Published flight schedules form no part of the contract of carriage and are not fixed for commencement, completion of carriage or Delivery of consigned Cargo.

3.5.5 Priority of Carriage

3.5.5.1 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. When necessary, we are entitled to continue any flight without any or part of the consigned Cargo.

3.5.5.2 If as a result of such priority arrangement under Article 3.5.5.1, all or part of the consigned Cargo is not carried, or not carried on the agreed flight and date, we will take the Shipper's actual interests into full consideration and make reasonable arrangements for the carriage of the consigned Cargo that were not timely transported. After taking all reasonable measures, if the consigned Cargo is still not carried as agreed due to the priority arrangement, we shall not be held liable.

3.6 Alteration of Carriage

3.6.1 Shipper’s Right of Disposition

3.6.1.1 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.

3.6.1.2 Once the consigned Cargo is delivered to the Consignee (as evidenced by the Consignee's signature on the AWB or another agreed-upon valid delivery receipt), the Shipper's right to dispose of the Cargo shall cease.

3.6.1.3 The Shipper may dispose the consigned Cargo either:

1) by withdrawing it at the airport of departure; or

2) by terminating the carriage at any stopover point; or

3) by changing the Consignee; or

4) by requiring returning the consigned Cargo to the airport of departure.

3.6.1.4 The right of disposition shall only be applicable to the whole consigned Cargo under a single AWB.

3.6.1.5 The Shipper shall be liable for any expenses and shall indemnify us (or our Agent) for any loss incurred as a result of the exercise of its right of disposition.

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

3.6.1.7 The Shipper shall present the written application in accordance with our requirements to exercise the right of disposition during the carriage of the consigned Cargo.

3.6.1.8 If the Shipper’s instructions regarding the disposal of the Cargo cannot be executed, we shall have the right to decline and will immediately inform the Shipper, upon which we shall no longer be obligated to carry out such disposal instructions and shall not be liable for any related responsibilities.

3.6.2 Our Right to Alter Carriage

3.6.2.1 In order to guarantee timely carriage 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.

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

1) Governmental regulations, orders and requirements;

2) Force Majeure;

3) Aircraft malfunction, flight delays or cancellations;

4) Aircraft type adjustment.

In the circumstances described above, in order to achieve reasonable carriage, we may, without prior notice, use alternative modes of transport to deliver all or part of the consigned Cargo to the place of destination. To ensure flight safety or to comply with the relevant Laws and Regulations, we may continue the flight with all or part of the consigned Cargo unloaded.

3.6.2.3 In accordance with government requirements or to avoid damage and danger, we may, with notice to the Shipper or Consignee, retain the Cargo at any possible location or warehouse during carriage. The related costs shall be borne by the Shipper or Consignee. We may also transfer the Cargo to another Carrier and continue the carriage to the place of destination.

3.6.2.4 If, due to the above-mentioned circumstances, the flight is cancelled or rescheduled, or if the flight ultimately stops at a location other than the place of destination, leading to the cancellation, rescheduling, continuation or termination of the carriage of a particular Caro, we shall not be held liable.

3.6.3 Suspension of Carriage

3.6.3.1During the course of carriage, if there is sufficient reason to believe that a particular consigned Cargo violates the convention, laws, or regulations regarding prohibited and/or restricted items, we shall suspend the carriage of such Cargo. If necessary, we may hand over the Cargo to the relevant government authorities for further action.

3.6.3.2 If it is found that the nature or the defective packaging of the consigned Cargo may endanger the safety of flight, personnel, property or other Cargo, we may, without prior notice, move or destroy the Cargo at any place and time without bearing any liability, and the costs incurred as a result thereof shall be borne by the Shipper.

3.6.3.3 Subject to compliance with the applicable Laws and Regulations and safety requirements, we will carry out the Shipper's instruction to return the suspended Cargo to the place of departure. The Shipper shall bear all costs incurred therefrom.

3.7 Delivery of Cargo

3.7.1 Notice of Arrival

3.7.1.1 When the consigned Cargo arrives at the destination, we will send the Consignee the “Notice of Arrival” in time, normally by telephone, letter or email, etc.

3.7.1.2 We shall not be liable for failure of the Consignee to receive the “Notice of Arrival” or to receive it in time for reasons not attributable to us.

3.7.2 Delivery of Cargo

3.7.2.1 Except as otherwise specifically provided in the AWB, we shall only deliver the consigned Cargo to the Consignee specified in the consignee column in the AWB. The Consignee shall present valid identification information when picking up the Cargo.

3.7.2.2 Except as otherwise agreed, the Consignee shall pick up the Cargo at the location designated by us.

3.7.2.3 The Consignee shall raise dissidence promptly when the Cargo is found destroyed, lost, damaged or delayed. Upon the verification and confirmation of both sides, the actual condition of the Cargo shall be noted in detail in the Cargo status record or marked in the AWB, and signed or stamped by both sides. Such record may be treated as the evidence for the Consignee to claim against us in the future.

3.7.2.4 If the Consignee does not raise any objections upon collecting the Cargo, it shall be deemed that the Cargo has been delivered in good condition according to the contract of carriage.

3.7.2.5 After we have issued the "Notice of Arrival" to the Consignee, or when the Consignee has begun the process of collecting the Cargo, if the Cargo are detained or transferred to the relevant government authorities due to the government requirement, we will immediately notify the Consignee or Shipper. We shall not be held liable for any losses incurred by the Shipper or Consignee as the result thereof.

3.7.2.6 The Consignee shall pay all the unpaid charges when undertaking the procedures for collecting the Cargo. The Shipper shall be jointly and severally liable for such charges.

3.7.2.7 If the consigned Cargo poses a potential risk to the flight, personnel or public safety due to its own reasons, we may take necessary disposal measures such as destruction, burial, abandonment etc, without prior notice. All expenses incurred shall be borne by the Shipper or the Consignee.

3.7.3 Undelivered Cargo

3.7.3.1 Consigned Cargo under one of the following circumstances shall be considered as undelivered Cargo:

1) No pick-up in 14 Days from the day after the first notice of arrival, and no disposal advice is received from the Shipper or disposal advice is not executable;

2) The Consignee expressly refuses to pick up the Cargo or to make payment of relevant charges;

3) The Consignee cannot be contacted due to the incorrectness of its address or name in the AWB;

4) The Cargo is abandoned by the Shipper or Consignee;

5) The Cargo is detained or destroyed by local regulatory authorities for an extended period.

3.7.3.2 The following measures shall be taken to dispose the undelivered Cargo:

1) Notifying the departure station who will notify the Shipper for advice, and disposing the Cargo in accordance with the Shipper’s advice;

2) Sending the Cargo back to the departure station where the Shipper’s instruction will be waited for.

3) After storing the Cargo for 30 Days, disposing the Cargo according to the local Laws and Regulations;

4) Selling or auctioning off in public the entire or part of the Cargo, and after that, we are entitled to compensate ourselves or other third-party Carrier(s) or other legal claimant for the transportation cost, expenses, advance payment and auction expenses, which shall be paid by the Shipper or the Consignee. The Shipper or the Consignee shall not be exempted from the payment of the deficiencies after the sale or auction.

5) If the disposal measures specified in the above paragraphs (1) to (4) are not able to be implemented, we have the right to destroy the Cargo, and the relevant costs incurred shall be borne by the Shipper;

6) Upon disposal of undeliverable Cargo in accordance with the Shipper, customs and local government regulations, the Carrier shall be released from all liability and such disposal shall be deemed to having fully addressed and discharged any potential claims by any third parties, including insurance companies or other parties with the assigned interest of the Cargo.

3.7.3.3 We will notify the Shipper of the result of the disposal upon the disposal of the undelivered Cargo according to the Law and Regulations.

3.7.3.4 The Shipper shall bear all charges and expenses related to the undelivered Cargo, and the charges for implementing safety management measures during the period of custody of undeliverable Cargo to prevent accidents. The Consignee shall be jointly and severally liable for such charges and expenses.

3.7.3.5 When the consigned Cargo containing perishable articles is threatened with deterioration due to flight delay, non pick-up, Consignee’s refusal of accepting the Cargo or any other reasons, we are entitled to take all reasonable measures without prior notice or without the consent of the Shipper.

3.8 Special Cargo

3.8.1 Special Cargo includes dangerous goods, live animal, perishable goods, valuable goods, human remains, biopharmaceutical products, precise instruments, etc.

3.8.2 The Shipper shall comply with the regulations of relevant countries, regions, industry association and Carriers concerning the carriage 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.

3.8.3 Packaging of the Special Cargo shall be in compliance with the relevant requirements of industry association and the Carrier.

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

3.9 Charter Carriage

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

ARTICLE 4 – Complaint and indemnification

4.1 Complaints

We will publish the channels for handling customer complaints on our official website.

4.2 Claims

4.2.1 If the consigned Cargo is lost, the Shipper or Consignee may file a claim with us, provided that the Conditions outlined in Article 3.7.2.3 are met.

4.2.2 In the event of loss of consigned Cargo during transportation, the claim must be submitted in writing within 14 Days from the date of receipt of Cargo, as per our requirements.

4.2.3 In the event of a delay in the transportation of consigned Cargo, the claim must be submitted in writing within 21 Days from the date the right of disposal of the Cargo is transferred to the Consignee.

4.2.4 If the consigned Cargo is never delivered after shipment, the Shipper must submit the claim in writing within 120 Days from the date of the issuance of the AWB.

4.2.5 If the Shipper or Consignee fails to submit a claim within the time limits specified in Articles 4.2.1 to 4.2.4, any subsequent claim will not be accepted.

4.2.6 For claims that do not comply with Conventions, Laws and Regulations, we will provide a clear response to the Shipper or Consignee within the prescribed time limits.

4.3 Indemnification

Our liability is determined by the provisions of the applicable Conventions and laws. Unless the applicable Conventions or laws specify otherwise for the benefit of the lawful claimant, the following terms shall apply:

4.3.1 If the Shipper declares the value of the Cargo and pays the valuation charges upon tendering the Cargo, our indemnification limit will be the declared value of the consigned Cargo. We will compensate for the actual loss if it is proved that the actual loss is less than the declared value.

4.3.2 For International Carriage of Cargo without a declared value, regardless of whether the origin or destination country (region) is a party to the relevant Conventions, our liability limit shall be the applicable limit specified by the Montreal Convention. For Domestic Carriage of Cargo without a declared value, our maximum liability shall be the latest valid limit published by the relevant civil aviation authority of the PRC. We will compensate for the actual loss if it is proved that the actual loss is less than the applicable limit of liability as specified above. The claimant must provide proof of the actual value of the loss of Cargo when filing a claim.

4.3.3 In the event of destruction, loss or damage to part of the consigned Cargo or any of the packaged items, our liability for indemnification shall be limited to the weight of the relevant packaged items. When the destruction, loss or damage of any packaged items in the consigned Cargo affects the value of other packaged items on the same AWB, the weight of the other packaged items shall be taken into consideration when determining liability. In the absence of contrary evidence, the proportion of the destroyed, lost or damaged item's value in relation to the total value of the Cargo shall be determined by the proportion of the destroyed, lost or damaged item's weight in relation to the total weight of the Cargo.

ARTICLE 5 - SHIPPER’S LIABILITY

The Shipper shall comply with the applicable Conventions, laws, regulations and the Conditions when consigning the Cargo. The Shipper shall be fully liable for any loss which may be caused to us or to any other person to whom we are liable, by reason of the Shipper’s violation of the applicable Conventions, laws, regulations and the Conditions.

5.1 General Conditions

5.1.1 The consigned Cargo shall be permitted by the laws or regulations of any country of the place of departure, the place of destination and the Agreed Stopover.

5.1.2 The consignment of the Cargo shall not endanger aircraft, passengers, relevant personnel and flight safety; the Cargo shall not annoy passengers and the crew.

5.2 Transport Handling

5.2.1 Documents and materials

5.2.1.1 The transport documents and information provided must be true, accurate, valid and complete, we are entitled to decline carriage if the transport documents and information do not comply with the laws or the Conditions.

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

5.2.1.3 For the Cargo requiring examination and inspection by relevant authorities, 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 when consigning the Cargo so as to complete the formalities required by Laws and Regulations before the Cargo is delivered to the Consignee. The Shipper shall be fully liable to the Carrier for failure to transport the Cargo or failure to transport or deliver the consigned Cargo on time, or loss to us, our Agent or other third parties due to the lack of such materials or documents or if such materials or documents are false, incorrect, invalid, missing or do not comply with the relevant regulations. Except as otherwise provided by Laws and Regulations, we are under no obligation to inspect the materials or documents as mentioned above.

5.2.2 Packaging, Marking and Labels

5.2.2.1The packaging, marking and labels of the consigned Cargo must be in compliance with the requirement of carriage by air.

5.2.2.2 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 carriage. For valuable cargo or cash at the risk of robbery or theft, the Shipper shall use neutral packaging without indication of the contents.

5.2.2.3 The Shipper shall ensure that the packaging of the consigned Cargo shall not break apart, deform or leak during the normal course of handling during the carriage, and shall not cause bodily injury, damage or contaminate aircraft, equipment or other Cargo, baggage or mails.

5.2.2.4 The packaging materials of the Cargo used by the Shipper shall be in compliance with applicable Laws and Regulations of any country to be flown from, to or over. If the packaging of the consigned Cargo exhibits any apparent defects, the Carrier reserves the right to: (i) decline acceptance of the shipment; (ii) require the Shipper to rectify the packaging defects prior to acceptance; or (iii) request the Shipper to authorise us to rectify the packaging before accepting the shipment. The Shipper shall ensure that the internal packaging of the consigned Cargo strictly adheres to all applicable laws, regulations, industry standards, and the Carrier's carriage requirements. The Shipper shall not include any prohibited or restricted items, dangerous goods or similar items within the Cargo or its packaging.

5.2.2.5 Marking and Labels

1) The Shipper shall ensure that the external packaging of each consigned Cargo is clearly and accurately marked with the place of departure, the place of destination, and the names and detailed addresses of both the Shipper and the Consignee. All markings must be legible, durable, and easily discernible. In the case of the Special Cargo, the Shipper shall comply with all applicable Laws and Regulations by appropriately marking the external packaging as required.

2) The Shipper shall affix or attach an identification label to the external packaging of each piece of the consigned Cargo. For Special Cargo, the Shipper shall affix or attach Special Cargo labels and handling labels to the external packaging of each piece of the Cargo in accordance with the nature of the Cargo.

3) If the Shipper uses reused packaging as the external packaging for consigned Cargo, all obsolete markings and labels from the original packaging must be removed to ensure the swift, safe and accurate transportation of the Cargo.

5.2.3 Customs and other governmental Declarations

5.2.3.1 The Shipper shall provide us with the required declaration information in accordance with the regulations and requirements of customs authorities and other governmental departments in various countries. The Shipper must ensure that the information provided is true, accurate, valid and complete.

5.2.3.2 When the Shipper independently submits declarations to customs or other governmental departments, the Shipper shall comply with the applicable regulations and requirements of such authorities. The Shipper shall also ensure that the information submitted in the declaration is consistent with the information provided to us.

5.2.3.3 The Shipper shall ensure that the information provided to customs, other governmental departments and us is consistent with the actual consigned Cargo.

5.2.4 If the Shipper uses our ULD to independently assemble the Cargo, the Shipper shall comply with our relevant regulations. Any losses and liabilities resulting from the Shipper’s failure to follow these regulations shall be borne solely by the Shipper.

5.3 Miscellaneous

5.3.1 The Shipper shall be responsible for paying all the charges owed to us and shall ensure payment of any charges that the Consignee refuses or fails to pay in full, including, but not limited to, freight charges collect on delivery, freight charges collection fee, storage fees, and any costs incurred for returning the Cargo as per the Shipper's instructions.

5.3.2 The Shipper shall ensure the payment of all the expenses, fines, losses or other costs that may be incurred by us, as well as by relevant Carriers or Agents, due to the following:

5.3.2.1 the consigned Cargo contains prohibited items for carriage;

5.3.2.2 the consigned restricted Cargo does not meet the conditions required for the transportation of restricted items;

5.3.2.3 the identification, quantity, name, number, address, packaging, or description of the consigned Cargo are non-compliant with related regulations, incorrect or incomplete;

5.3.2.4 the consigned Cargo lacks, is delayed in providing, or includes incorrect import/export permits or required certificates and documents;

5.3.2.5 the actual description, weight, volume or other details of the consigned Cargo does not match the AWB;

5.3.2.6 fines, detentions, refusals of entry or similar penalties imposed by government authorities due to issues with the consigned Cargo, documents or declaration information.

ARTICLE 6 – CARRIER’S LIABILITY

6.1 We are liable for the loss of the consigned Cargo entrusted by the Shipper to us incurred in the course of carriage by air, except the liability waived in accordance with the Conventions, Laws and Regulations and the Conditions.

6.2 We are liable for any loss of the consigned Cargo entrusted by the Shipper to us incurred in the Course of Carriage caused by delay of transportation according to the Conventions, Laws and Regulations and the Conditions, except (i) under the circumstances where we have taken all reasonable measures or we are not able to take such measures, and (ii) as otherwise specified in the Conventions, Laws and Regulations and the Conditions.

6.3 We shall not be held liable for any direct or indirect 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 decline to accept for carriage without any liability.

6.4 We shall not be held liable for any destruction, loss or damage of the consigned Cargo caused by the following reasons:

6.4.1 Force Majeure;

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

6.4.3 Improper packaging of the Cargo by the Shipper;

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

6.5 We shall not be held liable for any loss or damage arising from the injury or the death of an animal caused by itself, by 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.

6.6 We shall not be held liable for the destruction, loss or delay caused by the Cargo itself or the Cargo in the course of carriage.

6.7 We shall not be held liable for the deterioration or decay of the Cargo due to the changes of climate, temperature, height or pressure.

6.8 Except as otherwise agreed, we shall not be held liable for any indirect loss caused by damage of the Cargo or carriage under the Conditions, including but not limited to loss of turnover, profit, interest, revenue, loss of business opportunity, reduction of product or administrative punishment.

6.9 We shall not be held liable for any destruction, loss, damage or delay of the Cargo due to reasons caused by the Shipper.

ARTICLE 7 - SETTLEMENT OF DISPUTE

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

7.2 For air transportation dispute, the statute of limitations is 2 years from the date when the aircraft arrives at the point of destination, should have arrived at the point of destination or the carriage terminates, except as otherwise provided in the laws of the country where the court seized the case locates.

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

7.4 With respect to the carriage of actual Carriers, the Shipper may raise litigation against the actual Carriers or the contracting Carrier respectively or simultaneously. The defendant Carrier is entitled to require the other Carrier to join in the litigation.

7.5 The dispute arising from or with respect to the Conditions shall be governed by the laws of the People's Republic of China.

ARTICLE 8- EFFECTIVENESS, MODIFICATION AND INTERPRETATION

8.1 The Conditions shall be effective and implemented on and from 01 January 2025 as the sole effective general conditions of carriage for cargo.

8.2 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.

8.3 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 of the Cargo accepted prior to the modification.

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

8.5 The Conditions are written in Chinese and English language. In the event of conflict, the Chinese version shall prevail.

8.6 Air China Cargo Co., Ltd. is responsible for the interpretation of the Conditions.