General Conditions for International Transportation of Cargo

S.F. Airlines Co., Ltd.

Version : 2.0

Effective Date : 2026/07/15

Contents

Chapter 1 Definitions

Chapter 2 Scope of Application

Chapter 3 Acceptance of Goods

Chapter 4 Transport Documents

Chapter 5 Freight Rates and Fees

Chapter 6 Cargo Transportation

Chapter 7 Disposal of Goods

Chapter 8 Delivery

Chapter 9 Successive Carriers

Chapter 10 Liability of the Carrier

Chapter 11 Objections, Complaints and Litigation

Chapter 12 Laws that must be obeyed

Chapter 13 Entry into Force, Amendment and Interpretation

Chapter 1 Definitions

Article 1 Definitions

“These Conditions” refers to the General Conditions for International Cargo Transportation of S.F. Airlines Co., Ltd. Unless otherwise specified or clearly stipulated in the specific terms, the following terms in these Conditions have the following meanings:

（1）“Shipper’s agent” refers to an enterprise or individual who, with the authorization of the shipper, consigns goods on behalf of the shipper or signs documents related to civil aviation cargo transportation.

（2）“Air cargo sales agent” refers to an enterprise established in accordance with the laws of the People’s Republic of China, which signs a sales agency agreement with a carrier and engages in civil aviation cargo transportation sales agency business.

（3）“Ground handling agent” refers to an enterprise that is entrusted by a carrier to engage in ground handling services such as cargo acceptance and transportation, on-site transfer, loading and unloading, etc.

（4）“Air Waybill” means a document called “Air Waybill” drawn up by or on behalf of the shipper and is evidence of the contract between the shipper and the carrier for the transportation of goods on the carrier’s routes.

（5）“Applicable Conventions” The following documents apply to the contract of carriage:

（a）The Convention for the Unification of Certain Rules Relating to International Carriage by Air (hereinafter referred to as the Warsaw Convention), signed in Warsaw on October 12, 1929;

（b）The Protocol to Amend the Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at The Hague on September 28, 1955 (hereinafter referred to as the “Hague Protocol”)

（c）The Convention for the Unification of Certain Rules for International Carriage by Air, signed in Montreal on May 28, 1999 (hereinafter referred to as the “Montreal Convention”)

（6）“Cargo” means any article transported or to be transported by an aircraft, including luggage transported on an air waybill, but excluding mail or luggage carried on a passenger ticket and baggage check.

（7）“Transportation” means the transportation of goods by air or otherwise, whether free of charge or for reward.

（8）“International transportation” means transportation in which, unless otherwise provided for in the Convention, the place of departure, the place of destination or one of the agreed stopping places of the goods under the contract of transportation is not within the territory of the People’s Republic of China, regardless of whether the transportation is interrupted or transferred.

（9）“Carrier” refers to a public air transport enterprise that uses civil aircraft to transport cargo and mail for the purpose of profit. In the Conditions, “Carrier” specifically refers to SF Airlines.

（10）“SF Airlines” refers to S.F. Airlines Co., Ltd.

（11）“One consignment” means one or more pieces of goods transported under one waybill and delivered to one consignee at one destination.

（12）“Shipper” refers to the enterprise or individual that enters into a contract with a carrier for civil air cargo transportation and signs the air waybill or cargo transportation record.

（13）“Consignee” means the enterprise or individual to whom the carrier delivers the goods in accordance with the name listed on the air waybill or cargo transportation record.

（14）“Freight Rate” refers to the price of air cargo transportation from the departure airport to the destination airport that is announced by the carrier and takes effect on the day the shipper and the carrier sign the cargo transportation contract, or is agreed upon by both parties to the contract.

（15）“Gross weight” means the weight of the goods obtained by using an officially approved weighing instrument, including the weight of the goods packaging and pallet.

（16）“Loss” means the loss caused by the destruction, loss or damage of the consigned goods during the transportation process.

（17）“Prepayment” means that according to the cargo transportation contract, the shipper pays to the carrier all payable fees related to the transportation of goods when consigning the goods.

（18）“Cash on delivery” means that according to the cargo transportation contract, the consignee pays the carrier all payable fees related to the transportation of goods when picking up the goods.

（19）“Transportation period” means the whole period from consignment to delivery during which the consigned goods are under the control of the carrier.

（20）“Period of the carriage by air” means the entire period during which checked baggage or cargo remains in the carrier’s custody, whether at an airport, on board, or at any location outside an airport where the aircraft has landed.

（21）“Delivery of goods” means the consignee signs for and accepts the consigned goods as shown on the waybill and the carrier transfers the consigned goods to the consignee.

（22）“Day” means a full calendar day, including weekends and holidays. When determining the validity period, the date on which the transport document is signed, the flight departure date or the day on which the notification is issued shall not be counted.

（23）“Contracting Carrier” means the person who, within the scope of the Conditions, enters into a contract for carriage by air in its own name with the shipper or with the shipper’s agent.

（24）“Actual Carrier” means a person who, by authority of the Contracting Carrier, performs all or part of the carriage by air and who is not engaged in continuous carriage as defined in the Civil Aviation Law of the People’s Republic of China.

Chapter 2 Scope of Application

Article 2 General Provisions

These Conditions of Carriage apply to all cargo transportation performed by or on behalf of SF Airlines, including all incidental services. If such transportation is “international transportation” as stipulated in Article 1 of these Conditions, such transportation shall also comply with the provisions of the Convention and shall not conflict with the provisions of the Convention.

Article 3 Applicable Laws and SF Airlines’ Rates

All transportation and other services provided by SF Airlines shall comply with the following provisions if they do not conflict with the provisions of Article 2:

（1）Applicable laws (including national laws supplementary to the Convention or applying the Convention to carriage which is not “international carriage” as defined in the Convention), government regulations, orders and rules;

（2）These Conditions of Carriage and other applicable documents, regulations, rules and flight schedules of SF Airlines (but excluding the departure and arrival times specified in the flight schedules), which can be checked at SF Airlines offices and airports with scheduled flights.

Article 4 Free Transportation

SF Airlines provides free or preferential fare transportation and has the right to exclude the application of all or part of these terms.

Article 5 Charter Flights

In the case of any inconsistency between the terms of these Conditions and the terms contained in the Charter Agreement for cargo transportation undertaken by SF Airlines pursuant to the Charter Agreement, the Charter Agreement shall take precedence unless otherwise provided.

SF Airlines accepts transportation according to the charter agreement. Regardless of whether an agreement is reached with the shipper, the shipper shall agree to be bound by the above provisions.

Article 6 Changes without notice

These conditions and published rates and charges are subject to change without prior notice unless otherwise provided by law or government regulations and orders; if the change occurs after the date on which SF Airlines accepts the waybill, such change shall not apply to the transportation contract.

Article 7 Effective Provisions

All cargo transportation carried out in accordance with these conditions shall also comply with the regulations and freight rates currently in effect on the day when SF Airlines accepts the air waybill. If these conditions are inconsistent with the regulations and freight rates of SF Airlines, these conditions shall prevail.

Chapter 3 Acceptance of Goods

Article 8 Goods Acceptable for Transport

（1）Unless otherwise specified, SF Airlines may carry the following cargo if its equipment and space allow:

（a）Its transportation, import and export are not prohibited by the laws and regulations of the countries of origin, destination or transit points;

（b）The package is well-packed and suitable for air transportation;

（c）Attach necessary supporting documents;

（d）Do not endanger the safety of aircraft, personnel and property.

（2）SF Airlines shall verify the supporting documents and shall not accept carriage of any items that do not comply with the regulations.

（3）SF Airlines reserves the right to refuse to transport cargo when necessary without taking any responsibility.

Article 9 Responsibility for Transport Documents

The shipper shall provide the necessary information and documents to complete the relevant formalities prescribed by laws and administrative regulations before delivery of the goods to the consignee. Any loss caused by the absence, insufficiency, or non-compliance of such information or documents shall, except to the extent caused by the fault of the carrier or its servants or agents, be borne by the shipper, who shall be liable to the carrier. Unless otherwise provided by laws and administrative regulations, the carrier shall have no obligation to inspect the aforesaid information or documents

Article 10 Value Limitation of Goods

（1）Unless otherwise agreed, the declared value of the goods on each waybill shall not exceed RMB 2,000,000 (or its equivalent in other currencies).

（2）The total value of cargo carried on each flight shall not exceed RMB 20,000,000 (or its equivalent). If the value of a batch of cargo exceeds this limit, it shall not be transported on the same flight, but SF Airlines may decide to transport it in batches on two or more flights.

Article 11 Packaging and Labeling of Goods

（1）The shipper shall accurately declare the name of the goods and correctly classify, identify, package, mark and label the goods so that the goods can be transported safely under normal operation and will not endanger the safety of aircraft, personnel and property;

（2）Valuables must be packaged and sealed in accordance with SF Airlines’ regulations.

（3）Shippers shall not carry prohibited or restricted items, dangerous goods, etc. in goods or their packaging.

（4）When a shipper’s agent engages in civil aviation cargo transportation activities, he or she shall hold the shipper’s authorization letter and the relevant provisions of the conditions concerning the shipper’s liability shall apply.

Article 12 Acceptance Restrictions

（1）SF Airlines shall not accept or transport items that are prohibited from transportation by national laws and regulations.

（2）SF Airlines does not accept live snakes for transportation at this time.

（3）SF Airlines does not transport letters that are exclusively handled by postal enterprises or official documents of state agencies.

（4）Any items that are restricted from transportation by national laws, regulations and rules must meet the prescribed procedures and conditions before they can be transported. When consigning restricted items, the shipper must provide valid documents of permission for transportation issued by government management departments such as the Public Security Bureau, Industry and Commerce Bureau, and Inspection and Quarantine Bureau.

（5）Special cargo includes dangerous goods, live animals, fresh and perishable goods, valuables, coffins, etc. The shipper shall comply with the regulations of the relevant countries and SF Airlines on special cargo transportation when consigning special cargo.

（6）The cargo received and transported must comply with SF Airlines’ route, aircraft type, and intermodal transport restrictions.

Article 13 Liability for failure to comply with the conditions for acceptance and transportation of special goods

If the shipper fails to comply with the relevant special cargo acceptance conditions, resulting in any loss, damage, delay or fine to SF Airlines and the cargo it transports, or causes property or personal injury to a third party, the shipper shall pay full compensation.

Article 14 Carrier’s right to inspect

SF Airlines has the right to inspect the packaging and contents of all delivered goods and investigate the correctness and completeness of any documents and materials of delivered goods, but SF Airlines does not assume any obligation in this regard.

Article 15 ULD

When the shipper uses ULD to transport goods, he/she must comply with SF Airlines’ loading instructions. The shipper shall bear the consequences of failure to comply with the regulations.

Chapter 4 Transport Documents

Article 16 Air Waybill

（1）The air waybill shall be in writing.

（2）The shipper shall fill in the air waybill in the format, method and number of copies specified by SF Airlines, or ask someone to fill in the air waybill on his behalf. The air waybill shall be submitted to SF Airlines together with the cargo for transportation.

（3）If the freight and other charges in the air waybill have been determined, they shall be filled in by SF Airlines.

（4）The statements in the air waybill relating to the weight, dimensions, packaging and number of packages of the goods shall have the effect of initial evidence. Except in the case of statements concerning the quantity, volume and condition of the goods which have been verified by the carrier and the shipper in each other’s presence and recorded on the air waybill, or which contain a statement on the apparent condition of the goods, such statements shall not constitute evidence against the carrier.

（5）The shipper’s failure to produce the air waybill, its non-compliance with the requirements, or its loss shall not affect the existence or validity of the contract of carriage.

（6）Any terms in the contract that differ from the provisions of Articles 30, 31, 32, 35(2)(3) and 55 of the Conditions shall be set forth in the air waybill.

Article 17 Indication of Goods Appearance and Packaging

If there are any defects in the appearance and packaging of the goods, the shipper should explain this in the air waybill submitted. If the shipper fails to explain or the explanation is incorrect, SF Airlines can make corrections, but the shipper shall bear the final responsibility.

Article 18 Filling in or Correction by the Carrier

SF Airlines may fill out the air waybill on behalf of the shipper at the request of the shipper. Regardless of whether the request is made in an explicit or implicit manner, unless there is evidence to the contrary, SF Airlines shall be deemed to have filled out the air waybill on behalf of the shipper. If the air waybill delivered with the cargo does not contain all the required contents or contains errors, SF Airlines has the right to complete or correct it with the authorization of the shipper, but SF Airlines does not bear any obligation to do so. SF Airlines shall be liable for any loss sustained by the shipper or by any other person for whom the shipper is responsible, to the extent that such loss is caused by the statements and declarations made by SF Airlines on the air waybill being non‑compliant with the requirements, incorrect or incomplete.

Article 19 Responsibility for the Correctness of SF Airlines Waybill Contents

The shipper is responsible for the accuracy of the detailed contents and descriptions of the cargo in the air waybill. Whether the air waybill is made out by the shipper or by another person, the shipper shall be liable for any loss caused to SF Airlines or to other persons for whom SF Airlines is responsible, to the extent that such loss is caused by the descriptions and statements made out on the air waybill being non-compliant with the requirements, incorrect or incomplete.

Article 20 Alteration of Air Waybill

SF Airlines has the right to refuse to accept the air waybill if its contents or words are altered or deleted.

Chapter 5 Freight Rates and Fees

Article 21 Applicable Rates and Charges

The freight rates and charges referred to in these Conditions of Transportation are those officially announced by SF Airlines and are effective on the date the airway bill is issued.

Article 22 Units of Calculation of Rates and Fees

Freight rates and charges are calculated based on the higher of the actual weight or volumetric weight of the cargo. The chargeable weight is in kilograms, and the decimals less than 1 kilogram are rounded off. The volumetric weight is calculated as 1 kilogram per 6,000 cubic centimeters. Valuables are calculated based on the actual gross weight, and the unit of weight is 0.1 kilogram.

Article 23 Services not included in published tariffs

Unless otherwise specified by SF Airlines, the rates and charges (as defined in Article 20) only apply to transportation between the departure airport and the destination airport, and do not apply to any other auxiliary services related to air transportation provided by SF Airlines, which are listed as follows in a non-exhaustive manner:

（1）Pick-up, delivery and ground transportation between SF Airlines’ operating airport and any air cargo terminal in the city;

（2）Warehouse management and warehouse equipment usage fees;

（3）Insurance premiums;

（4）Prepayment;

（5）Cargo customs clearance fees paid by SF Airlines and fees paid by SF Airlines as a shipper, consignee, cargo owner or agent;

（6）fees, fines and tariffs levied by government departments;

（7）SF Airlines’ expenses for repairing damaged packaging;

（8）The cost of transferring the goods by any mode of transport, costs of re-transportation or return to the place of origin or onward transportation to a place other than the destination;

（9）Fees for any other similar services.

Article 24 Payment of Fees

（1）The rates and charges are published in the currency specified in the rates conditions and can be paid in any currency accepted by SF Airlines. When paying in a currency different from the currency used in the published rates, the exchange rate published by SF Airlines for this purpose shall be used for conversion. The exchange rate can be checked at the SF Airlines office that accepts payment.

（2）All freight charges, whether prepayments or pay on delivery, and handling charges, taxes, prepayments and payments already made and any other amounts payable to SF Airlines, whether the cargo is destroyed, lost, damaged or not delivered to the destination as per the contract, shall be deemed as all income due to SF Airlines. Except for the charges that SF Airlines may charge at any stage of providing services in accordance with the transportation contract, all these charges, payments and prepayments shall be paid promptly upon acceptance of the cargo by SF Airlines.

（3）The shipper guarantees to pay all unpaid freight, freight on delivery and prepayments and expenses paid by SF Airlines. The shipper guarantees to compensate SF Airlines for all fees, fines, time loss, property damage and other losses incurred by SF Airlines due to the presence of articles prohibited by law in the consigned goods, or due to the lack, delay or error of import and export licenses or any other supporting documents, or due to the inconsistent customs value declared, or incorrect weight and volume declaration. If the above situation occurs, SF Airlines has a lien on the goods. If the payments due to SF Airlines is not paid, SF Airlines has the right to sell the goods publicly or privately (but a mailing notice shall be sent to the shipper or consignee listed on the air waybill in advance) and use part or all of the proceeds from the sale as compensation for the damage. If the proceeds from the sale are insufficient to compensate for SF Airlines’ losses, the shipper and consignee shall still jointly or separately compensate for the difference. The consignee’s acceptance of the delivery of the goods or the exercise of any other rights stipulated in the transportation contract, it means that the consignee agrees to pay the fees, charges and advances other than the prepaid freight.

（4）If the actual gross weight, dimensions, number of pieces or declared value of the cargo exceeds the actual gross weight, dimensions, number of pieces or declared value of the cargo that has been charged, SF Airlines has the right to demand payment of the excess amount.

（5）If the destination country stipulates that the currency cannot be converted into other currencies or cannot be transferred out of the country, SF Airlines reserves the right to refuse to handle freight on delivery under any circumstances.

（6）Unless otherwise agreed, SF Airlines does not provide freight on delivery service. All costs related to cargo transportation, if agreed to use the freight on delivery, should be paid in cash by the consignee when SF Airlines delivers the cargo.

（7）If the shipper refuses to pay all or part of the freight required by SF Airlines, SF Airlines may cancel the transportation of the goods without assuming any liability.

Chapter 6 Cargo Transportation

Article 25 Compliance with Government Regulations

（1）The shipper shall comply with all effective laws, customs and other government regulations of the countries of departure, arrival, stopover and overflight of the cargo, including regulations on cargo packaging, transportation and delivery. The shipper shall provide relevant information and documents along with the cargo in accordance with the requirements of these laws and regulations. SF Airlines has no obligation to investigate the correctness and completeness of the information and documents provided by the shipper. SF Airlines shall not be liable to any other person for any loss or expense caused by the shipper’s failure to comply with the provisions of this paragraph. The shipper shall compensate or indemnify SF Airlines for any damage or loss (such as compensation to a third party) caused by the shipper’s failure to comply with the provisions of this paragraph.

（2）If SF Airlines makes a decision to refuse to transport any cargo reasonably and in good faith based on any applicable laws, government regulations, requirements, orders or conditions, SF Airlines shall not be liable for the consequences.

Article 26 Payment and Customs Formalities

SF Airlines may prepay taxes, fees and any other amounts related to the cargo, and the shipper and consignee shall be jointly or separately responsible for reimbursement. Unless the shipper has prepaid the fees, SF Airlines has no obligation to prepay or pay any amount for the transfer or re-transportation of the cargo.

At any stopover location, if the goods must go through customs formalities and no customs clearance agent is specified on the air waybill, SF Airlines shall be deemed to have delivered the goods when it transports the goods to that location.

For this purpose, any copy of the air waybill, certified in writing by SF Airlines, shall be deemed the original air waybill.

Article 27 Schedules, Routes and Cancellations

（1）The times shown in SF Airlines’ flight schedule and other places are approximate, not guaranteed to be accurate, and do not constitute part of the transportation contract. The start, completion or delivery time of transportation is not determined. Unless otherwise specifically agreed and indicated on the air waybill, SF Airlines only guarantees the transportation of goods within a reasonable time, but does not assume the obligation to arrange for the goods to be transported by any designated aircraft, on any specific route, or to connect with flights at any location on any specific schedule. Even if the route is indicated on the air waybill, SF Airlines has the right to choose or deviate from the route. SF Airlines is not responsible for any errors or omissions in the flight schedule or other published flight schedules. Any statement or representation made by any employee, agent or representative of SF Airlines regarding the date, time, or performance of a flight shall not be binding on SF Airlines.

（2）SF Airlines has the right to transport all or part of the cargo by any ground means or arrange such transportation without prior notice.

（3）Due to reasons beyond SF Airlines’ control, or due to reasons that SF Airlines cannot reasonably foresee when accepting and transporting the cargo, or due to any circumstances that SF Airlines deems necessary, SF Airlines has the right to cancel, suspend, change, postpone, delay or advance any flight or the continued transportation of any cargo without prior notice, or to continue the flight without carrying all or part of the cargo.

（4）If any flight is cancelled, changed, postponed, delayed or brought forward, or discontinued other than at destination, or any cargo transportation is cancelled, changed, postponed, delayed, brought forward or suspended due to reasons beyond SF Airlines’ control or reasons that SF Airlines could not reasonably foresee when accepting and transporting the cargo, SF Airlines shall not bear any liability in this regard. When the transportation of a cargo or any part thereof is suspended, SF Airlines will hand it over to any transit agent for further transportation, delivery or storage, which shall be deemed that SF Airlines has fulfilled the complete delivery according to the transportation contract. SF Airlines shall not bear any further liability except sending the notice of disposal to the shipper or consignee at the address listed in the air waybill. SF Airlines may, but is not obliged to, continue the transportation through other routes, and the required costs shall be added to the cargo.

（5）In accordance with government laws, regulations and orders, SF Airlines has the right to determine the priority of cargo transportation. According to the same regulations, SF Airlines may decide to unload any items in a cargo shipment at any time and any place and continue the flight. If the cargo cannot be transported, or the transportation is postponed or delayed, or any items are unloaded midway as a result of the priority determination, SF Airlines will not bear any consequences caused by this to the shipper, consignee or any third party within the scope of exemption.

Article 28 Carrier’s Rights in the transportation of Goods

Whether before, during or after transportation, SF Airlines may detain the cargo at any location in order to execute government instructions or when it deems it necessary, and store it in any warehouse or other possible location by itself or in conjunction with the customs, and the costs and risks shall be borne by the shipper. SF Airlines may also hand over the cargo to other transportation agencies for further transportation to the consignee. SF Airlines shall notify the shipper of such action. The shipper shall compensate SF Airlines for the expenses that may be incurred due to detaining the cargo and bear its risks.

Chapter 7 Disposal of Goods

Article 29 Use of the right of disposal

Only the Shipper or the agent designated by the shipper may use the right of disposal; the object of the use of the right of disposal must be all the goods under one air waybill. If the shipper or its agent presents the holding copy of the air waybill or submits it in other ways prescribed by SF Airlines, the right of disposal of the goods may be used. The instructions for disposal of the goods must be submitted in the written form prescribed by SF Airlines. If the use of disposal changes the consignee, the new consignee shall be deemed to be the consignee appearing on the air waybill.

Article 30 Shipper’s Right of Choice

（1）If the shipper has fulfilled all obligations stipulated in the transportation contract and does not interfere with SF Airlines or other shippers, the shipper may dispose of the goods at its own expense in the following ways:

（a）Pick up the goods at the origin or destination airport;

（b）Suspension of transportation during stopover;

（c）Delivered to a consignee other than the one specified on the air waybill at the destination or during transportation;

（d）Request the goods to be returned to the originating airport.

（2）If SF Airlines is unable to execute the shipper’s instructions, SF Airlines shall immediately notify the shipper.

Article 31 Payment of Fees

The shipper shall be responsible for and compensate SF Airlines for any loss or damage caused by the shipper’s use of the right of disposal. The shipper shall compensate the carrier for any expenses caused by the use of the right of disposal.

If the carrier acts on the instructions of the shipper without requiring the shipper to produce the air waybill in its possession, and such action causes loss to the lawful holder of the air waybill, the carrier shall be liable, without prejudice to its right of recourse against the shipper.

Article 32 Scope of the shipper and consignee’s rights

Subject to the performance of the obligations prescribed in the contract of carriage by air, the shipper shall have the right to retrieve the goods at the airport of departure or at the airport of destination, or to stop the carriage at an intermediate stopping place, or to require delivery of the goods at the destination or during the journey to a consignee other than the one designated in the air waybill, or to require the goods to be returned to the airport of departure; provided that the shipper shall not cause loss to the carrier or other shippers by exercising such rights, and shall pay the costs arising therefrom.

Upon arrival of the goods at the destination, the consignee shall be entitled to require the carrier to deliver the goods to it, provided that it pays the charges due and complies with the conditions of carriage. Thereafter, the rights of the shipper shall cease. However, if the consignee refuses to accept the goods or if the carrier is unable to contact the consignee, the shipper shall recover its right of disposal over the goods.

Article 33 Capacity to Exercise Rights

Subject to the performance of the obligations prescribed in the contract of carriage by air, the shipper and the consignee may, whether for their own benefit or for the benefit of others, respectively exercise in their own name the rights specified in Articles 30, 31, 32, 35(2)(3) and 55 of the Conditions.

Chapter 8 Delivery

Article 34 Arrival Notification

If there is no other instruction, the cargo arrival notice shall be sent to the consignee and other persons indicated on the air waybill with the consent of SF Airlines. The cargo arrival notice shall be delivered by telephone, email, etc. SF Airlines shall not be liable for situations where the consignee has not received the notice or has received it late.

Article 35 Delivery of Goods

（1）Unless otherwise specified on the air waybill, cargo can only be delivered to the consignee named on the air waybill or his agent. Delivery of cargo to the consignee shall be deemed to have taken effect when:

（a）When SF Airlines has delivered the consignee or its agent a notice for the consignee to pick up the goods;

（b）When the goods are delivered to the customs or other government agencies in accordance with laws and customs regulations.

（2）Except as provided in Articles 30, 31 and 32 of the Conditions, the consignee shall, upon arrival of the goods at the destination and after payment of the charges due and compliance with the conditions of carriage, be entitled to require the carrier to deliver the goods.

（3）Unless otherwise agreed, the carrier shall notify the consignee promptly after the arrival of the goods, and the consignee shall take delivery without delay. If the consignee fails to take delivery within the prescribed time, it shall pay the carrier storage charges and other expenses.

Article 36 Place of Delivery

Unless otherwise specified, the consignee must accept delivery and pick up the goods at the destination airport.

Article 37 Handling of Undeliverable Goods

（1）Unless otherwise specified, if the consignee refuses or cannot accept the delivery of the goods after the goods arrive at the destination airport, SF Airlines shall try its best to handle it according to the instructions of the shipper indicated on the air waybill. If such instructions are not indicated or cannot be reasonably executed, SF Airlines shall notify the shipper of the consignee’s failure to accept the delivery and request the shipper to give instructions. SF Airlines’ storage period for undeliverable goods is 90 days (except for perishable items). If the shipper’s instructions are not received during the 90 - day storage period or the consignee fails to complete the cargo pickup procedures during the 90-day storage period or no one claims the goods after 90 days, SF Airlines will handle it after consulting the local competent authorities. Before disposing of the goods according to the opinions of the local competent authorities, the consignee or shipper shall be notified.

（2）The shipper shall be responsible for paying all fees and expenses arising from or related to the failure to deliver the goods, including but not limited to the freight for returning the goods at the request of the shipper. If the goods are returned to the departure airport and the shipper still fails to pay or refuses to pay the fees within 15 days, SF Airlines may sell part or all of the goods publicly or privately 10 days after notifying the shipper of its disposal intention. After deducting the freight and other expenses from the proceeds, the excess amount shall be handed over to the shipper or consignee for disposal. The shortfall shall be paid by the shipper or consignee.

Article 38 Handling of Perishable Goods

（1）When a shipment of perishable goods as defined in the regulations of SF Airlines is delayed under the control of SF Airlines, is not picked up or is refused to be picked up at the destination station, or is in danger of decay and deterioration due to other reasons, SF Airlines may immediately take steps it deems appropriate to protect the interests of itself or other parties after consulting the customs and inspection and quarantine authorities for handling opinions, including but not limited to destroying or abandoning part or all of the goods, contacting the shipper to obtain the shipper’s order, but the cost of the contact shall be borne by the shipper, storing part or all of the goods at the cost and risk of the shipper, or selling part or all of the goods publicly or privately without prior notice.

（2）If the above-mentioned goods are sold at the destination or returned to departure station, SF Airlines has the right to deduct the expenses incurred from the sale proceeds, and the remaining balance shall be at the disposal of the shipper. The sale of any goods cannot relieve the shipper or cargo owner of the obligation to pay the difference.

Article 39 Payment of Fees

When the consignee accepts the air waybill and the cargo, he or she shall be obliged to pay all fees and freights related to the transportation. Unless otherwise agreed, the shipper shall not be relieved of its liability for such charges and freight and shall be jointly and severally liable with the consignee. SF Airlines may deliver the cargo depending on the payment of the fees and freights.

Chapter 9 Successive Carriers

Article 40 Transport performed by multiple successive carriers under a transport contract shall be deemed as a single transport activity.

Chapter 10 Liability of the Carrier

Article 41 Period of liability

The carrier shall be liable for destruction, loss of, or damage to the goods, to the extent that the event causing such destruction, loss or damage occurred during the period of carriage by air; provided that the carrier shall be exempted from liability to the extent otherwise provided by law or by the Conditions.

The period of carriage by air does not include any land, sea or river carriage performed outside an airport. However, where such land, sea or river carriage is carried out for the purpose of loading, delivery or transshipment in performance of the contract of carriage by air, any loss occurring during such carriage shall, in the absence of evidence to the contrary, be deemed to have occurred during the period of carriage by air. If SF Airlines, without the consent of the shipper, substitutes other means of transport for all or part of the carriage that was contractually agreed to be by air, such carriage performed by other means shall be deemed to have occurred during the period of carriage by air..

Article 42 Negligence and intentional act of the carrier

Except as otherwise provided by applicable conventions, SF Airlines shall not be liable to the shipper, consignee or any other person for any damage or loss of any kind arising out of or in connection with the carriage of goods or other services, unless such damage or loss is proved to have been caused by negligence or willful misconduct on the part of SF Airlines, and provided that there is no contributing negligence on the part of the shipper, consignee or other person entitled to claim.

Article 43 Liability of the Carrier for Delay

The carrier shall be liable for loss caused by delay in the carriage of goods by air, except where the carrier, its servants or agents have taken all reasonable measures to avoid the loss or where it was impossible to take such measures, and except as otherwise provided by applicable international conventions, national laws, governmental regulations, orders or requirements, and the Conditions.

Article 44 Liability for damage to animals

The Carrier is not liable for loss, damage or expense resulting from the death of the animal from natural causes; or from the death or injury of the animal caused by the behavior or actions of the animal or other animals, such as biting, kicking, goring or suffocation; or from the condition, nature, habits of the animal itself or from poor packaging of the animal; or from the animal’s inability to withstand the inevitable changes in the physical environment during transportation.

If the carrier is obliged to compensate a third party due to the transportation of animals, the carrier has the right to claim full compensation from the shipper.

Article 45 Indirect Losses

SF Airlines shall not be liable for any indirect loss or damage caused by transportation performed under these conditions, regardless of whether SF Airlines is aware of the possibility of such loss or damage.

Article 46 Promotive actions of the claimant

If the damage was caused by the negligent or other wrongful act or omission of the claimant or the claimant’s assignor, the carrier shall be exempted from liability in whole or in part, depending on the extent.

Article 47 Compensation Standards

In the carriage by air, the carrier’s liability for destruction, loss of, or damage to, the goods, or for loss caused by delay, shall be limited to the limitation of liability prescribed by the relevant international conventions on civil aviation applicable in the People’s Republic of China at the time of the event or delay causing the damage. If the shipper has a special declared value for the cargo and paid a surcharge, SF Airlines’ liability shall not exceed the declared value indicated on the airway bill. All claims must provide evidence of value.

Article 48 Method of calculation of partial damage to goods

If part of the cargo or any item in the cargo is damaged, lost or delayed, the weight used to determine SF Airlines’ liability limit is only the total weight of the package or packages. However, if part of the cargo or items in the cargo are damaged, lost or delayed, which affects the value of another package or packages listed in the same air waybill, the total weight of the other package or packages should also be taken into account when determining the liability limit. In the absence of contrary evidence, the value of the damaged, lost or delayed cargo is calculated from the total value of the batch of cargo according to the proportion of its weight in the total weight of the batch of cargo.

Article 49 Damages caused to SF Airlines by the shipper, cargo owner or consignee

SF Airlines shall be compensated for any losses or expenses incurred by the shipper, cargo owner or consignee’s property that causes damage or destruction to other cargo or SF Airlines’ property. SF Airlines may abandon or destroy cargo without prior notice in an emergency without assuming any liability if the cargo may cause danger to aircraft, personnel or property due to its inherent defects, nature or flaws or poor packaging.

Article 50 Liability of the carrier that issues the waybill

If the cargo is transported on another carrier’s flight with SF Airlines’ air waybill filled out, SF Airlines is merely the agent of that carrier. The shipper has the right to sue the first carrier, and the consignee and the person entitled to delivery of the cargo have the right to sue the last carrier. SF Airlines is not responsible for damage, loss or delay of cargo not transported on its own flights.

Article 51 Liability of the agent

If SF Airlines’ liability is exempted or limited according to these terms, such exemption or limitation shall also apply to SF Airlines’ agents, employees or representatives, and also to other carriers providing aircraft or other modes of transportation.

Article 52 Right of Servants and Agents to Invoke Limitation of Liability

（1）Where an action is brought against a servant or agent of SF Airlines in respect of loss sustained in the carriage by air, such servant or agent, if proving that it acted within the scope of its employment or agency, shall be entitled to invoke the provisions concerning limitation of liability that SF Airlines itself may invoke under the Civil Aviation Law of the People’s Republic of China.

（2）In the circumstances referred to in the preceding paragraph, the total aggregate liability of SF Airlines and its servants and agents shall not exceed the statutory limitation of liability.

（3）The servants and agents of the Actual Carrier, or the servants and agents of the Contracting Carrier, if proving that they acted within the scope of their employment or agency, shall, in respect of the carriage performed by the Actual Carrier, be entitled to invoke the provisions concerning limitation of liability set forth in Article 47 of the Conditions, except as otherwise provided by the Civil Aviation Law of the People’s Republic of China.

（4）In respect of carriage performed by the Actual Carrier, the total aggregate liability of the Actual Carrier, the Contracting Carrier, and their servants and agents acting within the scope of their employment or agency, shall not exceed the highest amount recoverable from either the Contracting Carrier or the Actual Carrier under the Civil Aviation Law of the People’s Republic of China; and no one among them shall be liable for an amount exceeding the limitation of liability applicable to it.

Article 53 Contracting Carrier and Actual Carrier

（1）In the absence of evidence to the contrary, the authorization relationship between the Contracting Carrier and the Actual Carrier shall be deemed to exist.

（2）The acts and omissions of the Actual Carrier, and the acts of its servants and agents performed within the scope of their employment or agency in connection with the Actual Carrier’s performance of its carriage obligations, shall be deemed to be the acts of the Contracting Carrier, and the corresponding legal consequences shall be borne by the Contracting Carrier.

（3）The acts and omissions of the Contracting Carrier, and the acts of its servants and agents performed within the scope of their employment or agency in connection with the Actual Carrier’s performance of its carriage obligations, shall be deemed to be the acts of the Actual Carrier, and the corresponding legal consequences shall be borne by the Actual Carrier; provided, however, that the Actual Carrier shall not, by reason of the acts of the Contracting Carrier and its servants or agents, assume liability in excess of the statutory limitation of liability.

（4）Any special agreement under which the Contracting Carrier assumes obligations not imposed by Chapter VI of the Civil Aviation Law of the People’s Republic of China, or waives rights conferred by that Chapter, or any special declaration concerning the benefit of delivery at the destination made pursuant to Articles 47 and 48 of the Conditions, shall not affect the Actual Carrier unless agreed to by the Actual Carrier.

（5）The instructions set forth in Articles 30, 31 and 32 of the Conditions shall be effective only when given to the Contracting Carrier.

Article 54 Exemptions

SF Airlines shall not be liable for destruction, loss of, or damage to the goods caused by the following:

（a）The inherent nature, quality or defects of the goods, or damage or deterioration caused by the unsuitability of the goods for changes in temperature or pressure occurring during carriage, or for the time limit of carriage;

（b）Defective packing methods or containers, or defective packing of goods not packed by the carrier or its servants or agents;

（c）Shortage of or damage to the contents despite intact packing and intact seals;

（d）Normal wastage of the goods during carriage;

（e）War or armed conflict;

（f）Acts performed by competent governmental authorities in connection with the entry, exit or transit of the goods;

（g）Force majeure;

（h）Goods not carried by SF Airlines;

（i）Loss of goods caused by reasons not attributable to SF Airlines.

Chapter 11 Objections, Complaints and Litigation

Article 55 Where the carrier acknowledges the loss of the goods, or where the goods have not arrived within seven days after the date on which they ought to have arrived, the consignee shall be entitled to assert its rights against the carrier under the contract of carriage by air.

Article 56 Form and Time Limit for Filing an Objection

（1）Unless there is evidence to the contrary, if the consignee has no objection when accepting the goods, the goods shall be deemed to have been delivered in good condition and in conformity with the contract of transportation.

（2）Unless the consignee raises an objection to SF Airlines in written form, he or she shall not file a lawsuit against SF Airlines for loss, damage or partial damage of the cargo. Such objection should be raised in the following ways:

（a）If the goods are obviously damaged or partially damaged, the claim should be made immediately upon discovery and no later than 14 days from the date of receipt of the goods;

（b）In the case of other damage, it should be claimed within 14 days from the date of acceptance of the goods;

（c）In case of delay, the claim should be made within 21 days from the date when the consignee takes control of the goods;

（d）If the goods are not delivered, the claim should be made within 120 days from the date of issuance of the waybill.

Article 57 Complaint channels and time limit for acceptance

（1）For international cargo transported by SF Airlines, the email address for SF Airlines to accept complaints is “sfacc@sf-express.com”.

（2）For international cargo transported by SF Airlines, SF Airlines promises to handle the complaint within 15 working days from the date of receipt of the complaint from the shipper or consignee and inform the complainant.

Article 58 Time limit for litigation

The statute of limitations for air transport disputes is 2 years, calculated from the date when the civil aircraft arrives at the destination, should have arrived at the destination, or the date when the transportation is terminated. Any rights against SF Airlines will be lost after the statute of limitations expires, unless otherwise provided by the laws of the country where the court is located.

Chapter 12 Laws that must be obeyed

Article 59 Any terms and conditions contained or involved in the air waybill and this condition of transportation must comply with Chinese laws, government regulations, orders or requirements. Any conflicting terms and conditions shall be invalid. The invalidity of any term shall not affect the validity of other parts of this Condition of transportation.

Disputes arising out of or in connection with this Condition shall be governed by the laws of China. Subject to the application of the Convention, litigation regarding losses may be conducted at the option of the claimant in the court where the headquarters of SF Airlines is located, the court where the branch of SF Airlines that concluded the contract is located, or the court of the destination, etc.

Chapter 13 Entry into Force, Amendment and Interpretation

Article 60 This Condition of Transportation has been filed with the Civil Aviation Administration of China and shall take effect from the date of publication.

Article 61 SF Airlines’ agents, employees or representatives have no right to modify, change or waive any clause in the transportation contract or this Condition of Transportation.

Article 62 S.F. Airlines Co., Ltd. shall be responsible for interpreting these terms and conditions.