CER Central European Railway Cargo, Trading and Services Privately Held Company Limited by Shares. Freight Business Policy 2009.

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CER Central European Railway Cargo, Trading and Services Privately Held Company Limited by Shares

Freight Business Policy

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TABLE OF CONTENTS

TABLE OF CONTENTS ... 2

PART I ... 4

CHAPTER I:GENERALSTIPULATIONS ... 4

Scope of the decree (Article 1) ... 4

Definitions (Article 2) ... 4

The Business Policy and the tariff (Article 3) ... 4

CHAPTER II:THEHAULINGCONTRACT ... 5

Right of disposal over the consignment (Article 4) ... 5

Conclusion of the contract (Article 5) ... 5

Rescinding the contract (Article 6) ... 6

PART II: TRANSPORTATION OF CARLOAD FREIGHT ... 6

CHAPTER III:PREPARINGFORTHETRANSPORTATIONJOB ... 6

Making available and loading the railway car (Article 7) ... 6

Registration of goods for transportation (Article 8) ... 7

The freight consignment note (Article 9) ... 7

Receiving the goods (Article 10) ... 8

Responsibility for the accuracy of the documents (Article 11) ... 8

Inspection of the consignment, reservation (Article 12) ... 9

CHAPTER IV:CARRYINGOUTTHETRANSPORTATIONJOB ... 9

Transportation route (Article 13) ... 9

Accompanying the goods (Article 14) ... 9

Statutory inspections (Article 15) ... 10

Cartage date (Article 16) ... 10

Hindrance to delivery (Article 17) ... 10

Posterior disposition (Article 18) ... 11

CHAPTER V:DELIVERYOFTHECONSIGNMENT ... 11

Notice (Article 19) ... 11

Delivery hindrance (Article 20) ... 12

Attending to the freight consignment note and delivery of the consignment (Article 21) .... 12

Reservation at delivery (Article 22) ... 13

Record (Article 23) ... 13

Unloading and return of the railway car (Article 24) ... 13

CHAPTER VI:HAULAGEFEE,COSTSINCURREDBYTHERAILWAYCOMPANY ... 14

Paying the haulage fee and reimbursement of costs (Article 25) ... 14

Cash on delivery (Article 26) ... 14

CHAPTER VII:LIABILITY ... 14

Liability for loss suffered en route (Article 27) ... 14

Non-compliance with the cartage deadline (Article 28) ... 15

Loss of goods (Article 29) ... 15

Indemnification due after damaged goods (Article 30) ... 15

Concurrent negligence of the shipper (Article 31) ... 16

Liability of the shipper (Article 32) ... 16

Presumption in the case of repeated dispatch (Article 33) ... 17

PART THREE: CARRIAGE OF OTHER CONSIGNMENTS ... 17

CHAPTER VIII:CARRIAGEOFINTERMODALCARRIAGEUNITS ... 17

Article 34 ... 17

Article 35 ... 17

Article 36 ... 17

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Article 37 ... 17

Article 38 ... 17

Article 39 ... 17

Article 40 ... 17

CHAPTER X:TRANSPORTATIONOFPACKEDCONSIGNMENTS ... 18

Article 41 ... 18

ANNEX I: INLAND FREIGHT CONSIGNMENT NOTE ... 19

ANNEX II: FREIGHT CONSIGNMENT NOTE – COMPLETION INSTRUCTIONS... 20

ANNEX III: LIST OF RAILWAY CARS ... 22

ANNEX IV: FREIGHT CONSIGNMENT NOTE CIM ... 23

ANNEX V: TARIFF ... 24

INTRODUCTION ... 24

CHAPTER I:GENERAL CONDITIONS OF CALCULATING THE FEES ... 24

1. Tariff distance ... 24

2. Unit of measure ... 24

3. Train fee ... 24

4. Cost of services provided by CER Ltd ... 25

5. Currency of the tariff ... 25

6. General turnover tax (VAT) ... 25

CHAPTER II:ACCIDENTALFEES ... 26

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PART I

CHAPTER I:GENERALSTIPULATIONS

Scope of the decree (Article 1)

(1) The provisions of Act IV / 1959 on the Civil Code (hereinafter the Civil Code) shall apply to inland railway freight contracts including the supplementary stipulations herein.

(2) If the consignment, including any transit consignments, is despatched beyond or received from beyond the border, the stipulations herein shall only apply unless otherwise stipulated in the international contract.

(3) The stipulations herein shall apply if the railway company carries out, based on its operating licence, the transportation of goods by railway (hereinafter railway company) under the freight contract

a) alone or jointly with another railway company (direct transportation), or

b) jointly with road, marine and/or air transport companies (compound transportation). S.C. 1: The Freight Business Policy of CER Central European Railway Freight, Trading and

Services Privately Held Company Limited by Shares (hereinafter CER Ltd) includes in bold letters the current legislation relating to railway freight contracts and the supplementary conditions (hereinafter: S.C.), in italics. Annex № 1 attached to the Business Policy includes the tariff. CER Ltd publishes no mileage index; the tariff distance is determined based on the details of Network Statement (hereinafter N.S.) then prevailing (www.vpe.hu).

Definitions (Article 2)

For the purpose of this Decree the following definitions shall apply:

a) Packed consignment is the consignment dispatched by the railway company in a combination shipment together with other consignments, without segregation.

b) Carload freight is the consignment transported in a dedicated railway car.

c) Intermodal transportation units include swap bodies or containers of 20 feet length or longer carried by motor vehicles, trailers, semi-trailers with or without tractor unit dispatched as goods.

d) Consignment is the aggregate of goods and cargo dispatched under one freight consignment note.

e) RID: Annex C to the Convention concerning International Carriage by Rail (COTIF) entitled “Regulations concerning the International Carriage of Dangerous Goods by Rail” (promulgated in Hungary by the force of Act № LXXVII/ 2006).

f) Self-running railway car is

fa) a listed empty railway car dispatched as goods or fb) an unlisted railway car

belonging to the vehicle park of a railway company or operator. The Business Policy and the tariff (Article 3)

(1) The Freight Business Policy of the railway company (hereinafter the Business Policy) shall set forth the

a) confirmation deadline;

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c) loading time available for the shipper and the cases of suspension of the loading time; d) method of declaring value and interest, detailed terms and conditions and method of

making entries in the freight consignment note;

e) method of inspection of the content and weight of the consignment carried out by the railway company and method of recording the determinations;

f) rules of posterior disposition and also the conditions and methods of carrying out posterior dispositions.

(2) Further the railway company determines in the Business Policy the

a) scope of particularly valuable goods accepted for dispatch exclusively if registered in value declaration;

b) place and other travel conditions of the companion during the dispatch of accompanied goods;

c) conditions modifiable by the shipper by means of a posterior disposition apart from those stipulated in the Civil Code.

(3) The deadline stipulated in Item a) of paragraph (1) shall not be later than three business days following the dare of receiving the order.

(4) The fee for the services of the railway company including the method of determination of such fee and the conditions are included in the tariff.

(5) If the tariff does not form part of the Business Policy, the railway company shall make it available for the customers at the customer service, locations of dispatch of goods and also on the website.

(6) The railway company shall not depart from the stipulations of paragraphs (1) and (3)-(5) herein.

S.C. 2: The Freight Business Policy of CER Ltd is buyable at its seat (1097 Budapest Könyves Kálmán krt. 16) or it is accessible for the shippers.

CHAPTER II:THEHAULINGCONTRACT

Right of disposal over the consignment (Article 4)

If the shipper indicates, as agreed by the parties, other entit(y)ies in the freight consignment note as consignee(s), the right of disposal over the consignment shall be due to the shipper until the notice on the arrival of the consignment is delivered and thereafter it shall be due to the consignee(s), unless otherwise stipulated. In the case when the right of disposal is transferred, the shipper and the consignee(s) may assert against the railway company the rights ensuing from the hauling contract on their own behalf.

Conclusion of the contract (Article 5)

(1) With the exception of the provisions of paragraph (5) the hauling contract is deemed concluded when the railway company confirms the order in writing, i.e. in a declaration handed over, by way of a letter, fax message or encrypted electronic document with an electronic signature.

(2) The order shall include all the details required for the fulfilment of the transportation job, including particularly the denomination and quantity of goods, the required location and timing of loading, the station / place of destination and any other details and conditions requested by the railway company or deemed necessary be the shipper. The shipper may declare in the order the date of validity of its offer.

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(4) By way of the confirmation the railway company shall inform the shipper about the number and type (covered or open, regular or special) of railway cars used, the location and time of availability.

(5) The hauling contract is deemed concluded without an order or its confirmation when the railway company receives the consignment and the document required for dispatch for the purpose of carrying out the transportation job.

S.C. 3: CER Ltd concludes hauling contracts for consignments of carload freights for dispatch in closed trains. CER Ltd enters into agreements for ad-hoc dispatch of railway cars exclusively upon individual contracts.

S.C. 4: The shipper shall deliver the written order (draft contract) to the address of CER Ltd at 1097 Budapest Könyves Kálmán krt. 16, or by fax to 36 1 476 3488 or to the Email address cer@cer.hu.

Rescinding the contract (Article 6)

(1) If the shipper exercises, prior to making available the railway car for loading, its general right of disclaimer under paragraph (1) in Article 496 of the Civil Code, the railway company may claim the reimbursement of costs incurred until the date of receipt of such disclaimer. The railway company may not claim damages if the shipper disclaims the contract due to the failure of the railway company to make available the railway cars for loading in a manner inconsistent with the stipulations of the contract.

(2) If the shipper exercises its general right of disclaimer under paragraph (1) in Article 496 of the Civil Code after the railway car has been made available for loading but prior to receiving the goods for transportation, the railway company may claim the reimbursement of costs incurred as specified in paragraph (1) above along with the fees for services provided.

S.C. 5: The fee for the disclaimer of train and the waiting fee are included in Chapter II of the tariff.

PART II: TRANSPORTATION OF CARLOAD FREIGHT

CHAPTER III:PREPARINGFORTHETRANSPORTATIONJOB

Making available and loading the railway car (Article 7)

At the location and time stipulated in the contract the railway company shall make available the serviceable and clean railway car compliant with the contractual conditions and suitable for carrying out the haulage task.

S.C. 6: The shipper is responsible for the loading of consignments; the unloading of consignments is the consignees’ task.

S.C. 7: Railway cars shall be loaded and goods shall be recorded in accordance with the stipulations of Volumes 1-3 (Rules of Loading) of Annex II to RIV. In addition to the rules relating to loading the shipper shall also comply with the safety stipulations of railway traffic.

S.C. 8: CER Ltd provides, free of charge, at least 24 hours for loading the railway cars. The parties agree on the extension of the loading time in the contract.

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Registration of goods for transportation (Article 8)

(1) The railway company registers goods for transportation at the company’s service locations or other locations specified in the hauling contract.

S.C. 10: For the list of railway service locations opened for the cargo transportation visit the website of N.S at www.vpe.hu.

(2) After the registration of goods the railway company locks and seals the lockable openings of railway cars and intermodal transportation units and seals the tarpaulins of railway cars, unless otherwise stipulated in the relevant legislation or agreed upon by the parties.

(3) No goods (hazardous goods) that may put under risk the safety of traffic, the health or assets of third parties shall be registered for transportation, provided the specific properties, i.e. the sources of hazard of the consignment cannot be eliminated by implementing the special conditions (stipulations) in the relevant legislation.

(4) If the transportation of goods is subject to the fulfilment of special condition (stipulation) specified in the relevant legislation, such goods shall not be registered for transportation unless the said special condition (stipulation) is fulfilled. The shipper is responsible for the fulfilment of the said special condition (stipulation), unless otherwise specified in the relevant legislation or agreed upon by the parties.

(5) Hazardous goods may only be registered for transportation or consigned at cargo locations where the conditions of safe handling of such goods are assured.

S.C. 11: The hazardous goods are listed and the conditions of their railway transportation are specified in Appendix B COTIF “Uniform Rules concerning the Contract for International Carriage of Goods by Rail (CIM)”and RID (Regulations concerning the International Carriage of Dangerous Goods by Rail).

The freight consignment note (Article 9)

(1) A freight consignment note for each consignment under the hauling contract shall be raised. The shipper is responsible for raising the freight consignment note, unless otherwise agreed upon by the parties.

(2) The freight consignment note shall be raised in the form of an electronic document with encrypted electronic signature.

(3) The freight consignment note shall include the

a) name and address of the shipper and the consignees;

b) designation of the locations of check-in and destination, and the time of receiving and consigning the consignment;

c) designation / description and weight of goods, cargo number and code of packed consignments and goods dispatched for transshipment;

d) designation of the party responsible for loading and unloading of consignments; e) attributes of the packaging of the consignment;

f) identification details of lock applied on railway cars and intermodal transportation units; g) payment method to be applied and designation of the cost bearer party;

h) the transportation fee, provided the shipper has indicated in the freight consignment note the consignee as the cost bearer party and the consignee pays the haulage cost at obtaining the freight consignment note;

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j) the shipper’s statement on its intention to participate, either in person or by proxy, at the statutory procedure;

k) any deadline specified by the parties other than the one stipulated herein;

l) details and entries compliant with the stipulations of the separate regulation on the transportation of hazardous goods, in the case of the transportation of such hazardous goods;

m) particulars and instructions of the person accompanying the goods, if any;

n) shipper’s declaration of awareness and acceptance of conditions set forth in the Business Policy.

(4) The freight consignment note shall include all data, information and declarations (hereinafter jointly the disclosure) deemed required by any. If the disclosure does not fit in the designated box of the document due to its volume or no such box is shown in the document, such disclosure shall be entered in a separate sheet attached to the freight consignment note, provided the latter is not an electronic document.

(5) At dispatch the shipper may indicate the value of goods in the freight consignment note (value declaration).

(6) If the shipper indicates in the freight consignment note its extraordinary interest in the compliance with the delivery deadline, the railway company may accept such declaration of interest in the freight consignment note against a separate fee.

(7) If the railway company carries out direct transportation, such direct transportation shall be entered in the freight consignment note.

(8) The freight consignment note shall be signed by the representatives of the shipper and the railway company. Instead of a signature a stamp, mechanical mark or other suitable marking may be used.

(9) The parties hereto shall not depart from the stipulations of paragraphs (1) and (3)-(8) herein. S.C. 12: CER Ltd may dispatch loaded trains with a freight consignment note per each railway

car or one note per train and a list of railway cars, and the empty trains with a list of inland and/or international railway cars, depending on the service.

S.C.14: The freight consignment note consists of 5 copies:

1. Original freight consignment note: the Consignees’ copy 2. Copy of the receiver

3. Acknowledgement of receipt (copies for the customs authorities) 4. Shipper’s copy

5. Shipper railway copy of the

Receiving the goods (Article 10)

(1) The railway company shall sign, stamp, mechanically or otherwise mark a copy of the freight consignment note to acknowledge the receipt and registration of goods for transportation. This stipulation shall apply to electronic freight consignment notes as appropriate.

(2) The parties hereto shall not depart from the stipulations of paragraph (1) above. Responsibility for the accuracy of the documents (Article 11)

(1) The railway company does not check the documents required for the transportation or statutory inspection en route of goods for accuracy, regularity and completeness, unless otherwise stipulated.

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unless the damage ensuing from such loss or inappropriate use of the said documents is caused, despite due diligence, by circumstances reasonably beyond the control of the railway company. With the exception of cases of wilful act and gross neglect the amount of damages payable shall not exceed the amount payable in the case of complete loss of the goods.

(3) The shipper shall hold harmless the railway company for all damages ensuing from the inaccuracy, irregularity and/or incompleteness of documents specified in (1) above, unless such inaccuracy, irregularity and/or incompleteness of documents has taken place due to reasons imputable to railway company.

Inspection of the consignment, reservation (Article 12)

(1) During the registration of consignment the railway company checks the data in the freight consignment note and inspects the condition of goods and packaging, the signs indicating that the cargo belongs together, and the location in the railway car and recording of the cargo, provided the receiving of goods takes place after loading carried out by the shipper. (2) Upon the shipper’s request the railway company checks the gross weight and number of

pieces of the cargo, if possible. If the weight is determined and the number of pieces is ascertained by the railway company, the respective details shall be entered in the freight consignment note.

(3) The railway company enters in the freight consignment note any damaging of goods, inadequacy and/or irregularity of packaging and/or loading, inaccuracy or falsehood of any details entered in the freight consignment note, or any negligence or inappropriateness in the shipper’s declaration revealed during inspection and has the shipper admit such irregularities (reservation). If the shipper does not admit the reservation or the damage, defect or deficiency puts the safety of traffic, personal safety or assets of third parties under risk, the railway company rescinds the contract. The shipper shall compensate the railway company for the ensuing damages incurred.

(4) If the railway company entered no reservation in the freight consignment note, it shall be construed until proven otherwise that the consignment and its packaging, its placing and fastening in the railway car were correct and the documents required for transportation and statutory inspection en route were available at the registration of the consignment.

CHAPTER IV:CARRYINGOUTTHETRANSPORTATIONJOB

Transportation route (Article 13)

(1) If the shipper specifies the transportation route in the freight consignment note, the goods shall be transported along that route.

(2) In lack of the shipper’s instruction relating to routing the railway company shall determine the transportation route. In the calculation of the haulage fee and the cartage date possible shortest and safest route shall be considered.

S.C. 15: CER Ltd dispatches consignments along the route specified by the shipper based on a separate agreement only, against the fee specified therein.

S.C. 16: The routing is determined in compliance with the stipulations of the Network Statement at www.vpe.hu.

Accompanying the goods (Article 14)

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(2) The companion shall monitor and care for the consignment, as required, assists at statutory inspections and instruct the railway company in the case of transportation and delivery obstructions, unless such instructions are ruled out by the shipper’s declaration entered in the freight consignment note.

S.C. 17: The conditions of accompanying the consignments are stipulated by the parties in the contract.

Statutory inspections (Article 15)

(1) The railway company shall arrange for any action that may be required at statutory inspections affecting the consignment during transportation.

(2) The railway company shall duly notify the shipper or its representative about the location and timing of the statutory inspection, provided the shipper intends to attend the statutory inspections in person or through a proxy. In such cases neither the shipper nor its representative may take possession of the goods.

(3) At statutory inspections and handling of the accompanying documents the railway company qualifies as the representative of the shipper.

Cartage date (Article 16)

(1) The duration of cartage is calculated to include one day handling time and an additional day for each 200 km stretch of distance of conveyance commenced.

(2) The cartage date is calculated to start at 0 o’clock on the day following the date of dispatch and expires on the day calculated as per paragraph (1) above.

(3) The cartage is suspended if the cargo is detained due to reasons beyond the control of the railway company.

(4) The railway company enters in the freight consignment note the particulars, reason and duration of detention of the cargo. Any failure to enter such details in the freight consignment note shall deprive the railway company of its right to refer the cause of delay to cargo detention.

S.C. 18: The calculation of cartage date is suspended - On Saturday, Sunday and paid holidays;

- if the consignment is detained due to reasons imputable to the shipper;

- if CER Ltd is unable to avoid the detention of the cargo, or such detained has taken place due to reasons beyond its control (vis major).

Hindrance to delivery (Article 17)

(1) If delivery is hindered prior to the commencement of the transportation, or the delivery of dispatched consignment is hindered yet a suitable alternative route is available, the consignment shall be delivered to the station of destination along a suitable alternative route compliant with the conditions of the contract, unless otherwise instructed by the shipper. The cartage date and the haulage fee shall be calculated based on the suitable alternative route, provided the hindrance to delivery occurred due to reasons beyond the control of the railway company.

(2) The railway company shall proceed in accordance with the shipper’s instructions specified in advance in the freight consignment note for eventual hindrance to delivery or given at the time of occurrence of such hindrance for the accompanying of goods.

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occurred due to reasons beyond the control of CER Ltd, the costs of detention shall be added to the costs of the consignment.

Posterior disposition (Article 18)

(1) The shipper may give to the railway company a posterior disposition starting from the registration of the consignment to the time when the freight consignment note is attended to. (2) The railway company shall immediately notify the shipper if the posterior disposition is

unfeasible.

(4) The particulars, the execution or refusal of the posterior disposition shall be entered in the freight consignment note.

(5) The excess cost incurred in connection with the execution of posterior disposition shall be borne by the shipper.

S.C. 20: CER Ltd accepts exclusively written posterior dispositions. The posterior disposition shall be feasible. Any instruction the execution of which would put the safety of traffic, personal safety or assets of third parties under risk shall qualify as unfeasible. The costs of posterior disposition shall be added to the costs of the consignment.

CHAPTER V:DELIVERYOFTHECONSIGNMENT

Notice (Article 19)

(1) The railway company shall immediately notify about the arrival of the consignment the consignees or their representatives designated by the shipper, or failing such consignees the shipper or its representative (hereinafter jointly the entities entitled to receive the consignment), unless otherwise agreed by and between the parties.

(2) In the notice the railway company informs the entities entitled to receive the consignment about the possible date of commencement of loading and the deadline of loading or removal. (3) The notice shall be delivered to the entities entitled to receive the consignment so as to afford sufficient time for preparing to receive and unload the consignment. The deadline for unloading and removal communicated in the notice shall be reasonable and sufficient for carrying out the required operations.

(4) Unless otherwise specified or instructed by the shipper, the entities entitled to receive the consignment may, before receiving the notice on the arrival of the consignment, give instructions relating to the receiving of the consignment and request

a) ignoring of the notice or the method specified therein, or the notification of a third party; b) notification of its representative or delivery of the consignment to the representative; c) determination of the weight and/or number of pieces of the consignment;

d) the delivery of consignment to a location other than the originally specified one, suitable for railway transportation.

(5) The excess costs incurred due to the execution of instruction specified in paragraph (4) above shall be borne by the entities entitled to receive the consignment.

S.C. 21: The parties shall agree upon the instrument and method of notice in the contract.

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Delivery hindrance (Article 20)

(1) The railway company notifies the shipper and asks for instruction if no entity entitled to receive the consignment is available or the entity entitled to receive the consignment refuses to attend to the freight consignment note or to receive the consignment, or the delivery of the consignment is impossible due to other reasons. The railway company shall proceed according to the instructions provided the shipper has given prior instructions in the freight consignment note for any delivery hindrance, or the delegated companion provides such instructions at the time of occurrence of such hindrance.

(2) The railway company shall deliver the consignment to the entity entitled to receive it, provided such entity claims the freight consignment note after the delivery of the notice on hindrance but before receiving the instruction. The railway company shall notify the shipper, if the receiver is a different person.

(3) In cases not specifically regulated herein the stipulations relating to delivery hindrance specified in Article 17 above shall apply.

S.C. 23: In a written notice CER Ltd will immediately notify the shipper about any hindrance to delivery. Not later than two days after the delivery of such notice the shipper shall deliver to CER Ltd a feasible written instruction. The waiting costs shall be added to the costs of the consignment.

Attending to the freight consignment note and delivery of the consignment (Article 21) (1) At the station of destination the railway company shall ascertain the title claiming the

consignment by comparing his/her identity with the relevant details provided in the freight consignment note.

(2) The railway company hands over to the entities entitled to receive the consignment the appropriate copies of the freight consignment note, and, having thoroughly examined the railway car and the consignment hands over the consignment against an acknowledgement of receipt, provided the shipper (consignees) have paid any amounts due.

(3) Jointly with the entities entitled to receive the consignment the railway company shall inspect, upon having identified the consignment against the details specified in the freight consignment note, the condition of the consignment and its packaging, and also the condition of the railway car.

(4) As part of the inspection the parties will examine and check particularly the a) condition of the railway car and the intermodal transportation unit,

b) locks of railway cars and intermodal transportation units for intactness and identity; c) surface of the cargo of open railway cars;

d) fastening of consignment, method of loading and condition of the loading devices; e) number of the goods and packaging units, if possible; and

f) markings of the consignment and their intactness.

(5) The railway company shall deliver the consignments at a public loading area, unless the entity entitled to receive the consignment asserts its right of instruction under Item d) of paragraph (4) in Article 19.

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S.C. 24: CER Ltd determines the conditions of unloading / draining of hazardous goods in the contract with a special view to the related stipulations of environmental and other current legislation.

Reservation at delivery (Article 22)

(1) The entity entitled to receive the consignment receives the consignment with reservation if it asserts, before or at delivery, that the means of haulage, the consignment and/or its packaging is damaged or incomplete, the cargo has shifted or any other irregularity has occurred. The railway company may not deny the entry of particulars of the reservation in the freight consignment note and the request to carry out joint inspection as per paragraphs (3)-(4) in Article 21. The time of joint inspection is added to the loading time only if the reservation has proved valid.

(2) The entity entitled to receive the consignment may also reserve in case if it is not in position to carry out the joint inspection under paragraphs (3)-(4) in Article 21. The entity entitled to receive the consignment may also lodge its reservation after delivery, provided a deficiency or damage of the consignment unrecognizable at delivery and allegedly ensuing from the transportation was revealed subsequently.

(3) Within the deadline stipulated in the Civil Code the entity entitled to receive the consignment shall acquaint the railway company with its reservation in the case of a recognizable deficiency or damage of the consignment or unrecognizable at delivery and allegedly ensuing from the transportation, further enter in the freight consignment note the particulars and content of such reservation.

Record (Article 23)

(1) In the case of a reservation and/or a damage or partial loss of the consignment, revealed before the delivery of the consignment or believed, the railway company shall draw up a record based on the inspection carried out as per paragraphs (3)-(4) in Article 21, including its determinations relating to the condition, weight and number of pieces of the consignment and also the time and reason of such damage or partial loss, if possible.

(2) The railway company shall deliver to the entity entitled to receive the consignment a copy of the record.

(3) If the railway company fails to allow the entry of particulars of the proviso in the freight consignment note or refuses to carry out the joint inspection despite the reservation of the entity entitled to receive the consignment, or refuses to admit the actual circumstances and hand over immediately the record (document) to the entity entitled to receive the consignment, such entity may refuse to accept the consignment even after attending to the freight consignment note and invite an expert or an unrelated third party to carry out the required inspection.

(4) If certain stand-alone pieces designated in the freight consignment note are missing from the consignment at delivery, the railway company may admit the partial loss by way of an entry in the freight consignment note.

Unloading and return of the railway car (Article 24)

(1) Not later than the expiry of the time allocated for loading the entity entitled to receive the consignment shall return to the railway company the railway car in an intact and clean condition and dispose of any waste and debris that may have emerged during unloading. (2) If the entity entitled to receive the consignment fails to unload the consignment within the

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the railway company for any damage incurred due to its failure to return the railway car in the condition specified in paragraph (2) above and/or failure to remove the waste and debris from the loading area.

S.C. 25: CER Ltd allocates at least 8 hours of fee loading time for the unloading / emptying of the railway cars. The parties shall set forth in the contract the conditions of extending the loading time and the deadline of removal.

CHAPTER VI:HAULAGEFEE,COSTSINCURREDBYTHERAILWAYCOMPANY

Paying the haulage fee and reimbursement of costs (Article 25)

The shipper pays the fee due to the railway company for the services provided under the contract and also the necessary and useful costs incurred for transportation (hereinafter jointly the haulage cost). The shipper may indicate in the freight consignment note the consignee or other persons as the cost bearer party obliged to reimburse the haulage cost. If the cost bearer party indicated in this manner fails to meet its payment obligation, the haulage costs shall be borne by the shipper. S.C. 26: Elements of the haulage cost:

- Cost of dispatch (fees for railway services according to N.S., see www.vpe.hu); - Accidental fee (fees for accidental services requested by shipper and required for

carrying out the transportation job);

- Costs (expenditures for the arrangement of the train, insurance of railway cars, and other expenditures incurred during transportation).

S.C. 27: The parties shall set forth in the contract the haulage fee of the given transportation job, the payment method and deadline.

Cash on delivery (Article 26)

The railway company may undertake to collect, at the delivery of the consignment, from the consignees the amount of cash on delivery specified in the freight consignment note, or pay the same to the designated person. At the collection of the amount of cash on delivery the railway company proceeds in the powers of the shipper’s representative.

S.C. 28: CER Ltd does not undertake the collection of cash on delivery.

CHAPTER VII:LIABILITY

Liability for loss suffered en route (Article 27)

(1) With the exception of wilful act, the railway company shall be liable, irrespective of the distance of conveyance, for the loss of weight of goods that tend to loose weight during transportation, provided such loss of weight exceeds

a) two per cent in the case of goods dispatched in liquid status or wet condition, or b) one per cent in the case of dry goods.

(2) If the consignment is composed of goods of various types and their weight is indicated separately in the freight consignment note, the loss of weight shall be calculated separately for each type of goods.

(3) If any loss of weight has verifiably occurred due to reasons under the control of the railway company, the latter may not refer to the restriction of liability under paragraph (1) above. (4) The worth of weight lost may not be deducted from the amount of indemnification due after

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Non-compliance with the cartage deadline (Article 28)

(1) Unless the parties agree otherwise, the railway company shall pay a penalty amounting to 10 per cent of the haulage fee for each day of delay commenced in excess of the cartage date but not exceeding in total the haulage fee.

S.C. 29: The parties shall set forth in the contract the detailed conditions of the penalty payment. (2) No penalty for delay in cartage deadline may be claimed in the case of the loss of entire

consignment. In the case of partial loss the amount of penalty is calculated as a percentage of the haulage fee of consignment delivered with a delay.

(3) In addition to the compensation for damages the party entitled may claim the penalty due after the delay in cartage deadline stipulated in paragraph (1) above, if the consignment is damaged and the railway company exceeded the cartage deadline.

Loss of goods (Article 29)

(1) The shipper may deem the goods lost if the railway company fails to deliver the same within 30 days after the expiry of the cartage deadline. The railway company shall immediately confirm the loss of goods upon the shipper’s request. The shipper may request such confirmation within one year from the putative date of such loss.

(2) The railway company shall immediately notify the shipper, if the goods deemed lost are found within one year following the expiry of the cartage deadline. Not later than 30 days after receiving the notice the shipper may take possession of the found goods.

Indemnification due after damaged goods (Article 30)

(1) If the railway company is liable to pay indemnification for the complete or partial loss or destruction of the consignment, the value of the consignment shall be determined based on the

a. amount shown as a value declaration in the freight consignment note; b. price indicated in the supplier’s invoice;

c. market price prevailing at the location and date of dispatch;

d. usual market value of goods of similar type and quality at the location and date of dispatch; and

e. price of goods at the commodity exchange.

S.C. 30: The shipper may confirm the value of goods shown in the freight consignment note by way of any invoice.

S.C. 31: The fee applicable in the case of value declaration and/or interest declaration is included in Chapter II of the tariff.

(2) With the exception of wilful act the amount of indemnification payable in the case of any damage of the consignment shall not exceed the

a. amount of indemnification due after the loss of entire consignment, provided the value of full consignment has reduced as a consequence of a damage; or

b. amount of indemnification due after the part of consignment of reduced value, provided only a part of the consignment was damaged.

(3) With the exception of a wilful act the top limit of indemnification in the case of interest declared shall be equal to the amount declared in the freight consignment note.

(16)

S.C. 32: CER Ltd ties to a prior written complaint the assertion of claims by any party entitled. S.C. 34: The written request for indemnification and reimbursement shall be submitted to the

seat of CER Ltd at 1097 Budapest Könyves Kálmán krt 16, within the period of lapse specified in paragraph (3) in Article 504 of the Civil Code. The original copies of documents required for considering the claim shall be attached to the complaint.

S.C. 35: Within forty five days CER Ltd shall review the complaint and deliver a written notification on the results to the party entitled. In such notification CER Ltd shall admit partly or fully or reject its liability.

Concurrent negligence of the shipper (Article 31)

Failure of the shipper to delegate a companion in cases when such companion is stipulated in the relevant legislation or in the agreement between the parties, false representations made by the shipper to the railway company or any infringement of the statutory safety rules in posting the goods shall qualify as imputed concurrent negligence.

Liability of the shipper (Article 32)

(1) Having recognized that the shipper attempts, by false representations, to post goods that do not qualify as permissible cargo under the contract, or to post goods for transportation without fulfilling the conditions stipulated in the relevant legislation, the railway company may elect, unless otherwise stipulated in the relevant legislation, to

a. refuse and/or abandon transportation;

b. return the goods to the location of dispatch; or c. dispatch the goods at the location of destination.

(2) Unless otherwise stipulated in the relevant legislation the railway company may reject or abandon the transportation, if the shipper attempts, by false representations, to post hazardous goods without fulfilling the conditions specified in the relevant regulations. (3) Unless otherwise stipulated in the relevant legislation, the railway company may, within the

limits permitted by the Regulations concerning the International Carriage of Dangerous Goods by Rail (RID) unload, destroy or dispose of the hazardous goods, provided the shipper has failed to enter in the freight consignment note the details specified in the RID. In such cases the railway company shall not be liable to pay any indemnification unless it was made aware of the hazardous nature of goods at receiving.

(4) The shipper shall compensate the railway company for any damages incurred in connection with the transportation of goods dispatched in a method described in paragraph (1) above. The shipper shall be exonerated from this liability provided he/she proves that such damage was incurred due to the inappropriate information provided by the railway company.

(5) The railway company may claim indemnification, if

a. the goods loaded by the shipper as consignments dispatched with a declaration of weight have exceeded the loading capacity of the railway car or the load-bearing capacity of the railway track, thereby also causing damage to the railway company; or b. the shipper defrauded the railway company of the haulage fee by false declaration of

weight or content.

(6) Starting from the registration to the delivery of the consignment the railway company is entitled examine the content or check the weight of the consignment in a non-destructive method.

(17)

variance and have the record signed by an unbiased witness. CER Ltd shall be entitled to charge to the contracting party the costs of inspection of contents.

Presumption in the case of repeated dispatch (Article 33)

If the consignment is repeatedly dispatched without unloading while remaining in the custody of the railway company, for any damage or partial loss of the consignment revealed at delivery it shall be assumed that such damage or partial loss incurred in the last phase of carriage.

PART THREE: CARRIAGE OF OTHER CONSIGNMENTS

CHAPTER VIII:CARRIAGEOFINTERMODALCARRIAGEUNITS

Article 34

The stipulations of Chapters II-VII shall apply to the transportation of intermodal carriage units bearing in mind the variations specified herein.

Article 35

Along with the items specified in Article 9 the marking, road number, check number, own weight, the weight of goods loaded and the total weight of the intermodal transportation unit shall be entered in the freight consignment note.

Article 36

With the exception of wilful act, the amount of indemnification due after the damage ensuing from the failure of any part of the intermodal transportation unit shall be equal to the cost of repair, which shall not exceed the amount payable in the case of loss of the intermodal transportation unit.

CHAPTER IX:TRANSPORTATIONOFROLLINGRAILWAYVEHICLES

Article 37

The stipulations of Chapters II-VII shall apply to the transportation of rolling railway vehicles bearing in mind the variations specified herein.

Article 38

Along with the items specified in Article 9 the marking and / or number of the railway vehicle shall be entered in the freight consignment note.

Article 39

A railway vehicle unlisted with a railway company or operator may only be registered for transportation by the railway company, if the suitability for running of railway vehicle is confirmed / certified by an entity accredited / authorized under the relevant legislation.

S.C. 38: The shipper / customer shall, in a timely manner, procure the confirmation of the suitability of the vehicle for running (running certificate, Rk. Licence, commissioning licence). Any excess costs incurred due to the failure to do so shall be borne by the shipper / customer.

Article 40

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of repair, which shall not exceed the amount payable in the case of loss of the rolling railway vehicle carried.

(2) The railway company shall not bear any liability for the loss of any parts that are not marked on the lengthwise side of the rolling railway vehicle or not indicated in the list attached to the freight consignment note of the vehicle.

CHAPTER X:TRANSPORTATIONOFPACKEDCONSIGNMENTS

Article 41

The stipulations of Chapters II-VII shall apply to the transportation of packed consignments bearing in mind the variations specified herein.

(19)
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ANNEX II: FREIGHT CONSIGNMENT NOTE – COMPLETION

INSTRUCTIONS

Sections 2- 3 and 18-21 of the freight consignment note shall be completed by CER Ltd; sections 4 –16 – by the shipper, and section 22 – by the consignee.

The shipper shall bear liability for the accuracy of entries in sections 4-16 of the freight consignment note. The shipper shall bear all the consequences for the incompleteness, inaccuracy and/or falsehood of details entered.

The following data shall be entered in the sections:

1. Pre-printed serial number of the freight consignment note subject to strict tracking requirements;

2. Number of railway cars constituting the train, perhaps in a breakdown by empty and loaded cars, or in any other suitable breakdown;

3. Serial number of the list of railway cars attached, including the number of railway cars constituting the train and other details;

4. Name of the station of dispatch in printed block letters;

5. Name / description of the loading area where the railway cars are loaded, i.e. public, rented loading area and/or industrial track, including the name of the user of the industrial track, provided the consignments are loaded on an industrial track;

6. Name, address and telephone, fax, and/or email address of the contracting shipper and/or shipper of consignments;

7. Name of the station of destination in printed block letters;

8. Name / description of the loading area where the railway cars are unloaded, i.e. public, rented loading area and/or industrial track, including the name of the user of the industrial track, provided the consignments are loaded on an industrial track;

9. Name, address and telephone, fax, and/or email address of the consignee;

10. Description of the goods provided such goods are subject to the Regulations concerning the International Carriage of Dangerous Goods by Rail (RID), including the EWC number of hazardous and/or non hazardous waste specified therein to be entered mandatorily in the freight consignment note; method and means of packaging goods, if any, including the number of pieces of pallets and other packaging implements, if any; number of pieces of goods, provided its is stipulated in the contract between the parties;

11. Cross in italics in the box, if the goods are subject to the RID;

12. NHM number of goods, i.e. the first six digits of the customs tariff number; 13. Total weight of goods dispatched in the train specified by the shipper;

14. Description and serial number of documents stipulated mandatorily in the relevant legislation or deemed essential by the parties, such as „SZ Accompanying Note” in the case of transportation of hazardous waste;

15. Name, address and telephone, fax, and/or email address of the cost bearer party, payment method such as wire transfer, as per contract, etc.;

16. Signature of the shipper and stamp mark, if required;

(21)

21 18. Description of the entity carrying out loading, such as the shipper, forwarded or any other

entity carrying out the loading operations;

19. Description of the entity carrying out unloading, such as the consignee or any other entity carrying out the loading operations;

20. Name of the station of dispatch in handwriting, signature of the representative and time-stamped stamp mark of CER Ltd confirming the receiving of consignment for transportation;

21. Name of the station of destination in handwriting, signature of the representative and time-stamped stamp mark of CER Ltd confirming the delivery of consignment;

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ANNEX III: LIST OF RAILWAY CARS

LIST OF RAILWAY CARS Serial number: 00000

Attached to inland freight consignment note №.……….. CER Ltd

№ RAILWAY CAR № Own weight of railway cars Weight of goods Gross weight Comment 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Total: Shipper’s signature:

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24

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24

ANNEX V: TARIFF

INTRODUCTION

The tariff applies to consignments dispatched across the national railway network of the Hungarian Republic based on hauling contracts concluded in compliance with the Freight Business Policy of CER Ltd.

The fees of CER Ltd are determined on the basis of railway track usage fees specified in the ait the Network Statement and the fees for services outside the track usage tariff published at

www.vpe.hu, further the costs of services provided in connection with the carriage of consignments.

CHAPTER I:GENERAL CONDITIONS OF CALCULATING THE FEES 1. Tariff distance

CER Ltd determines the tariff distance based on the N.S. data rounded up to the next integer number of kilometres.

2. Unit of measure

The unit of measure is the train, i.e. loaded and/or empty railway cars hauled in closed unit by a traction engine.

3. Train fee

CER Ltd determines the train fee based on the following details: 3.1. Tariff distance.

3.2. Composition of the train:

- number of railway cars hauled; - status of the railway cars; - type of goods carried; - gross weight of the train. 3.3. Railway engine:

- Type of traction;

- Type of engine;

3.4. Fees for railway track services used for carriage: 3.4.1. Railway track services provided by MÁV Rt.

- Fixed charge:

 Track insurance fee (HUF/train),  Traffic fee (HUF/train km). - Station usage (HUF/train)

 At the station of departure  At intermediate stations  At the station of destination

- Station usage for servicing the railway cars (HUF/ railway car) - Fee for marshalling, servicing and shunting (HUF/ railway car)

- Shunting by the railway company for the purposes of servicing (HUF/ railway car) - Overhead conductor usage fee (HUF/electric train km)

(25)

25 MÁV Ltd determines the traffic and station usage fees in three categories of railway track chainages and stations. The classification of railway track chainages and stations is included in Annex 6.4. of the N.S.

3.4.2. Railway track services provided by GySEV Ltd - Railway line fee (HUF/train)

- Traffic fee (HUF/train km + HUF/compound ton km)

- Station usage fee broken down to three categories by N.S. (HUF/station) - Shunting fee (HUF/train handling + HUF/ railway car serviced).

4. Cost of services provided by CER Ltd

CER Ltd claims the costs incurred in connection with arranging the train, insuring the railway cars and other services provided in the haulage fee offered.

5. Currency of the tariff The fees are specified in Hungarian Forint (HUF) and Euro (EUR).

The fees are converted to the currency of payment at the exchange rate of the National Bank of Hungary published officially prevailing on the day and at the time of completion of the service.

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26

CHAPTER II:ACCIDENTALFEES

CER Ltd assesses accidental fees only if the haulage costs specified in the contract do not include such fees.

Accidental fee Amount

No. Code № Description U.O.M. HUF EUR

1. 34 Weighing fee railway cars 5 000* —

2. 35 Fee for industrial track at the station of destination

railway cars N.S. **

3. 36 Fee for industrial track at the station of dispatch

railway cars N.S. **

4. 40 Fulfilment of customs stipulations in the country of dispatch

consignment — 16,50

5. 41 Fulfilment of customs stipulations in the transit country

consignment — 16,50

6. 42 Fulfilment of customs stipulations in the country of arrival

consignment — 16,50

7. 50 Waiting fee: from 1 to 24 hours railway cars /

hour

360 —

7.1. - Waiting fee from 25 to 48 480 —

7.2. - Waiting fee from 49 hours 600 —

9. - Call-off fee for railway cars: railway cars 5000 —

9.1 -

If the shipper calls off the railway cars not later than 72 hours before the planned time of departure of the train hauling the cars, at least

train N.S. **

9.2. -

If the shipper calls off the railway cars within 72 hours before the planned time of departure of the train hauling the cars, at least

train N.S. **

10. - Modification of the hauling contract train 35 000 —

11. 72 Value declaration, interest declaration amount indicated in the

freight consignment

note

15%

12. 12 Axle replacement fee As agreed

13. 17 Transshipment, refilling fee As agreed

Figure

Updating...

References

  1. (www.vpe.hu)
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