Service contract

SERVICE CONTRACT NO: __361317____

This contract is made and concluded on _4__th of FEB, 2017by and between CHINA TOBACCO and YANGMING MARINE TRANSPORT CORPORATION (hereafter called "Carrier"), whereby the parties mutually agree as set forth in pages attached hereto.

1).ORIGIN:

Please refer to the “Scope” tab.

Please refer to the “Scope” tab.

Please refer to the “Commodity” tab.

Please refer to the “Header” tab.

For this contract's purpose 1x40'DC or 40’HQ container is equal to 2 TEUs. 45’ container is equal to 2.25 TEUs (except rate equalization and substitution.)

5).SERVICE COMMITMENTS:

The Carrier agrees to make available, under the terms of this contract, vessel capacity adequate to carry

1. 
   the minimum quantity commitment of cargo and
   
2. 
   at Carrier's option any additional cargo tendered
   

The Shipper agrees that as far as possible cargo committed under this contract will be shipped evenly throughout the duration of the contract.

The Shipper agrees to give fourteen (14) days booking notice, if possible, but in general not less than seven days, to the Carrier.

6). RATES OR RATE SCHEDULE(S) – TRANSPACIFIC WESTBOUND:
In order for cargo to qualify for rates and terms set forth in this Contract including, without limitation, being counted toward the minimum volume commitment, Shipper must appear as the Shipper/Exporter or Consignee on the applicable bill of lading, provided however, that in instances where the Shipper appears as "Notify Party" on the Bill of Lading, the Carrier, in its discretion, determines that there is sufficient evidence, or there are other indicia permitting it to conclude that Shipper has an ownership interest in the cargoes or cargoes are consigned to or moving for the direct account of the Shipper named as Notify Party, such cargo shall also qualify under the rates and terms set forth in the Contract.
6-1). RATES

Please refer to the “Ocean Freight” tab.

Please refer to the “Origin IHC” tab and “Destination IHC” tab.

Please refer to the “Outport Arbitrary Charge” tab.

Bookings shall be subject to Carrier's approval.

Bookings shall be subject to Carrier's approval.

Bookings shall be subject to Carrier's approval.

Bookings shall be subject to Carrier's approval.

Carbon Black, Activated carbon, Agricultural Products, NOS; Animal Feed; Automobiles- New and Used; Boats/Yachts; Cargo in Specialized Equipment; Clay; Coils, NOS; Cotton; FAK (freight all kinds- consolidated containers); Forest Products; Hay, Non fumigated and Fumigated; Hides and Skins; Household Goods/Personal Effects; Live- Plants, NOS; Live Stock, NOS; Metal Scrap, NOS; Onions in- Dry Stow; Overweight Cargo,NOS; Plastic Scrap, NOS; Precious Metal, NOS; Raw Cotton; Resin; Shipper Owned- Containers; Shipper Owned Tanks; Temperature Controlled Cargo, NOS; Used Computers, NOS; Used Tires, NOS; Waste Paper, NOS, Vehicles,Asphalt, NOS.

1. 
   If above items booked/shipped without proper rates in the contract, Carrier holds the right to add $200/20’, $400/40’ over this contract port pair rates for the ocean freight or apply prevailing tariff rates/terms whichever is higher.
   

2. 
   “Refrigerated Cargo” or "ISO Tank Container” cannot apply dry container rate, nor the regular IHC/OAC. But to apply actual IHC/OAC occurred and an additional $5000/pc surcharge over contract dry container rate for Refrigerated Cargo or a $1,000/pc surcharge over contract dry container rate for ISO Tank Container and Shipper’s Owned Container, unless its rate is specified.
   

* Swing charge occurred on ISO Tank or Shipper Owned Container shall be at Shipper's expense.

CARRIER’S PUBLISHED GRI FOR COMMODITIES COVERED BY THISCONTRACT WILL BE EFFECTIVE AUTOMATICALLY DURING THELIFE OF THIS CONTRACT, UNLESS CONTRACT RATES ARE AMENDEDTO REFLECT A MUTUALLY AGREED QUANTUM.

1. 
   Any charge or surcharge relating to the use of the Alameda Corridor in Southern California.
   

2. 
   Any charge or surcharge relating to cost incurred in connection with the newly-established security requirements (whether established by law, statute, regulation, or by a service provider to Carrier) applicable to or relating to any portion of the transportation and related services provided under this contract and shall specifically include all charges related to the cost of inspecting any cargoes carried pursuant to this contract.
   

M). Loaded containers which are leaking oil,or other pollutants or hazardous materials, will not be acceptedat the terminals, yards or depots of the Carrier or any of its subcontractors. The Shipper will be responsible for all costs, expenses, penalties, fines and charges including, but not limited to, re-handling and roll charges, gate charges, drayage, surveyor’s fees, clean-up charges, fines and penalties, and other damages to the container if such Shipper’s container is found to be leaking while said container is in the custody of the Carrier or its Subcontractors.

In addition to applicable requirements set forth in this tariff or an applicable service contract, any Shipper of bulk agricultural products that will be moving by rail from an inland point in the United States shall be responsible for compliance with all requirements relating to equipment, loading, stowage, and packing imposed by the rail carrier with respect to such shipments. It will be the Shipper’s sole responsibility to ascertain and comply with such requirements.

1. 
   For all shipments of used televisions and monitors, the Shipper is required to produce documentation and other proofs as may be required by the Carrier conclusively confirming that all used televisions and used computer monitors are of workable quality and merchantable as second hand goods.
   

2. 
   Shipper shall also provide proof that there is adequate protective packaging which will protect the used television and used computer monitors from accidental damage in the course of transportation and the associated handling processes.
   

3. 
   If the cargo is described as “Used Appliances”, the Shipper shall provide a cargo packaging list so that Carrier can check and confirm whether there are any used television or computer monitors included in such cargo. In the event there are used televisions or computer monitors contained in the used appliance cargo, the Shipper shall adopt the measures outlined in 1. and 2. hereof.
   

4. 
   If the shipment is a scrap/waste commodity description then the Shipper will be required to obtain a permit from the Environmental Protection Department in compliance with the Ordinance (WDO), Cap 354 law of Hong Kong.
   

It shall be Shipper’s obligation to ensure that no controlled hazardous waste is included in the cargo. Shipper agrees to indemnify, defend and hold Carrier harmless from any and all penalties, fines, liability and damages whatsoever in the event it fails to adhere to the regulations specified above. All such penalties, fines, liabilities and damages shall be for the direct account of the Shipper.

6-5). SURCHARGE ABBREVIATIONS

Please refer to the “Surcharge Abbreviation” tab.
6-6). ADDITIONAL FREE TIME

Please refer to the “Detention&Demurrage” tab.

“-1” appearing in the “Tier Volume End” or “Tier Day End” columns should be translated into “AND UP.”
6-7). Submission of Documentation for U.S. Export Cargo

Please refer to FMC-042 rule 102-H.

Please refer to FMC-102 Rule 108.

Please refer to the “Header” tab.

Before the expiration date, either party shall have the right to unilaterally terminate this contract by providing written notice of such cancellation / termination provided always that the minimum volume has been achieved.

9). SHIPPER’S STATUS CERTIFICATION AND AFFILIATES, IF ANY:

Pursuant to FMC regulation 46 CFR 530.6, Shipper by execution of this contract certifies its status as cargo owner.

I, ____XXX_____ (name of officer/director), hereby certify that ____XXX____ (NVOCC’s company name) is a duly licensed and bonded Non-Vessel Owner Common Carrier having Surety Bond # XXX (number of bond), dated _____, issued by _______ (Name of Bonding Company) on date _____. The undersigned officer/director agrees and warrants, personally and on behalf of the said NVOCC, that the Carrier will be notified in writing of any changes in the above details within 24 hours of the change occurring.

Pursuant to FMC regulation 46 C.F.R. 530.6, Shipper by execution of this contract certifies that of all his affiliates and any third parties authorized to utilize this contract as NVOCCs have a Bond on file with the Federal Maritime Commission and, where applicable are licensed as Ocean Transport Intermediaries by the Federal Maritime Commission.

Shipper shall indemnify and hold harmless Carrier for any and all costs, expenses, fines and penalties that Carrier may incur or be assessed by any governmental entity by reason of Shipper’s failure to meet with licensure and surety requirements as mandated by law.

Please refer to the “Affiliate(s)” tab.

Refer to FMC-102 Rule 104

Please refer to FMC-102 Rule 101, 102, 103, 105, 106, 107, 109.

In the event of any conflict between the terms of this Agreement and the Carrier’s Long Form Bill of Lading the terms of the long form bill of lading shall prevail. The terms and conditions of Carrier’s Long Form Bill of Lading are incorporated herein as if set out at length herein. The terms and conditions of Carriers Long Form Bill of Lading are available from the Carrier or any of its designated agents.

This Contract is duly signed at LOCATION(SUCH AS NEW JERSEY), U.S.A. on the__4__th day of FEB, 2017 by the Shipper & the Carrier.

CONSINEE: CARRIER:
CHINA TOBACCO YANG MING(AMERICA)CORPORATION

as agent for:

YANGMING MARINE TRANSPORT CORP.

BY: BY:________________________

Mr ZHANG - MANAGER Alex Ku - General Manager


14).Electronic Mail Confirmation:
Shipper confirms that it will participate in the “Electronic Mail Confirmation for Service Contract Amendment or Service Contract Renewal” process. Shipper agrees to exchange confirmation via electronic mail (e-mail) to acknowledge their agreement of rates and terms submitted in any amendment or renewal.  Shipper’s confirmation via electronic mail under this section shall serve as Shipper’s signature and as its acknowledgement to any amendment or renewal. Upon agreement and filing of any amendment or renewal, Yang Ming Line will provide the Shipper with an effective date and amendment number. 
The following individual(s)with their e-mail addresses have authority to do confirmation on our behalf:

PennyQian - email: qj8641@gmail.com    Phone –86-22-25320513

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