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Service Updates
4th January 2011

New Tariffs
Effective 13t March 2011

Sterling Logistics Terms & Conditions

Sterling Logistics solutions (henceforth referred to as "Sterling") is governed by its standard conditions of carriage outlined herein and on the face and reverse of each (air)waybill. WE MAKE NO WARRANTIES, EXPRESSED OR IMPLIED.

These Terms and Conditions are applicable to the transportation of any package, document, envelope, pallet, container or other item by Sterling Logistics when shipping between points within Canada, or from Canada to various international points including, but not limited to, any such items tendered by customers utilizing Sterling automated systems, air waybills, labels and shipping software.

Sterling reserves the right to modify, amend or supplement our rates and to assess fuel or other surcharges on any shipments without notice. Any such surcharge will be applied for such periods as we may determine necessary.

The following pages contain the Terms and Conditions applicable to the transportation of any package, document, envelope, pallet, container or other item by Sterling Logistics.

Any failure to enforce or apply a term, condition or provision of this document shall not constitute a waiver of that term, condition or provision or otherwise impair Sterling's right to enforce or apply such term, condition or provision in the future.

All ($) dollar values are in Canadian dollars, unless noted otherwise.

TABLE OF CONTENTS 

ACCOUNT NUMBER
A valid Sterling account number must appear on each waybill, unless payment is made, at the time of shipping, by cheque or cash.  The party, to whom an account number is issued, is liable for all charges to the account.  The account holder is responsible for the safe keeping of their account number and should release the number only to those authorized to ship on the account.  The account holder bears the risk of all unauthorized use of their account number.

ADDRESS CORRECTION
IT IS IMPERATIVE THAT THE CORRECT POSTAL/ZIP CODES APPEAR ON BOTH THE WAYBILL AND ON EACH ITEM OF THE SHIPMENT.  Failure to do so may result in delivery delay and/or incorrect invoicing. Every attempt will be made to deliver incorrectly addressed shipments as expeditiously as possible.  However, Sterling assumes no responsibility for failure or delay in the delivery of such shipments.

BUSINESS DAYS/CARRIER HOLIDAYS
"Business day" means Monday through Friday, except for holidays or the official day of observance of these holidays.  The business week may differ in some locations due to local customs.  Provincial holidays will also affect our delivery schedules.  Contact your local Sterling office for information on delivery commitments, which may be affected due to the observance of these holidays. Unless otherwise specified, deliveries will be made during regular business hours on regular business days, which may vary from country to country.  Deliveries normally made on the day of a holiday observance will be rescheduled for delivery on the next business day. Special, after-hours, week-end and holiday services are available, depending on specific destination.  Please call Customer Service for rates and information about such requests.

CARGO LIABILITY

(a) Declared Value (For Insurance) (see "Insurance" and "Liabilities not assumed") represents the maximum liability of Sterling for any loss, damage, delay, mis-delivery, or non-delivery of the shipment or part thereof caused by its negligence or otherwise, subject to the further limitations in paragraph (b).

(b) We will not be liable or responsible for losses due to perils beyond our control or in excess of the declared value, subject to declared value restrictions.  Such risks are assumed by the sender or transferred to an insurance carrier by the sender through the purchase of an insurance policy.

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CLAIMS

(a) Written notice of claim due to damage or shortage must be received by us from the sender or recipient within 15 days after delivery of the shipment to the recipient.

(b) Written notice of claim due to non-delivery or mis-delivery must be received by us within 30 days after we accept the shipment for carriage.

(c) You may telephone your local Sterling office to report your claim, but doing so will not preserve your rights.

(d) Written documentation of all claims must be delivered to us within 30 days after we receive written notice in accordance with paragraphs (a) and (b) above.

(e) Except as provided in paragraph (f) below, receipt of the shipment by the recipient without written notice of damage on the  delivery receipt is prima facie evidence that the shipment was delivered in good condition.  As a condition to honoring any such claim, the recipient must make the original shipping cartons and packing available for inspection by Sterling.

(f) In the case of a claim for concealed damage which is not discovered at the time of delivery, the sender or recipient shall notify Sterling in writing as promptly as possible after the discovery of the damage and in any event not later than 15 days after the date of delivery.  If more than 15 days elapse between the date of delivery of the shipment to the recipient and our receipt of such notice, the sender or recipient must show good cause why the damage was not discovered earlier and timely notification not given.

C.O.D.
C.O.D. Shipments will not be accepted.

COLLECT
Collect shipments will not be accepted unless recipient has a valid account with Sterling.  In any event, such charges shall be fully guaranteed by the sender in the event of non-payment by the recipient.

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CUSTOMS
All shipments, which cross international borders, must be cleared through customs in the destination country prior to delivery to the recipient. Clearance requires the presentation of the shipment and accompanying paperwork to customs Inspectors in the destination country. The duties of these customs officials may include verifying the value and description of the contents (may include opening the package) and properly completing the required documentation. For details on documentation requirements please contact your local Sterling office. All non-document shipments sent to international destinations must have a description and commercial transaction value for customs even if the shipment is not for resale.

U.S. Customs regulations require the IRS Employer Identification Number (EIN) or, if an individual, the Social Security Number (SSN) of the U.S. recipient for certain shipments being imported into the United States. THIS INFORMATION MUST BE INCLUDED ON THE AIR WAYBILL AND COMMERCIAL INVOICE FOR ALL U.S BOUND SHIPMENTS. The EIN or SSN must be on file with the U.S. Customs Service.

Shipments which arrive in the U.S. that do not have the correct EIN or SSN may be detained until that information can be obtained from the recipient or otherwise determined. Any changes to a company name, address or the EIN/SSN should be provided to Sterling for system updating. This U.S. Customs Service requirement applies to U.S. import shipments with a declared value for Customs in excess of US$2,000 and for the following commodities regardless of value: textiles or textile products, leather or leather products, or other goods that are restricted or controlled requiring a formal entry by the U.S. Customs Service. Canadian customs regulations require the Business Number (BN) of the Canadian recipient for commercial shipments entering Canada. This information should be included on the air waybill and commercial invoice on all inbound shipments to the U.S. and Canada, respectively. All packages scheduled for delivery which do not have the EIN or BN (for Canadian imports) number will be detained until that information can be obtained.

PROPER COMPLETION OF NECESSARY DOCUMENTATION AND ACCURATE COMMODITY DESCRIPTIONS AND VALUATIONS ARE THE RESPONSIBILITY OF THE SENDER.

DECLARED VALUE
The declared value for shipments for insurance purposes, consigned to United States or International destinations, cannot exceed the value for customs.

N.B. Shipments must conform to all Sterling "Terms and Conditions".

See INSURANCE below.

DELAY
Sterling is not financially or otherwise responsible for the consequences of failure to deliver a shipment by a stipulated time.

DIMENSIONAL WEIGHT
Sterling will assess charges for shipments on actual weight or volume (cube) weight, whichever is greater.  Either of the following calculations may be used:

a) Length x Width x Height (in inches) ÷139 = weight in pounds.

b) Length x Width x Height (in centimetres) ÷5000 = weight in kilograms.

These formulas equate to approximately ten pounds per cubic foot.

If the dimensional weight exceeds the actual weight, charges based on the dimensional weight will be assessed.

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DUTIES AND TAXES
In the event Sterling advances duties and taxes on behalf of the payor, the payor will be assessed a surcharge based on a flat rate or percentage of the total amount advanced. This surcharge will vary dependent upon the destination country. Additional processing fees may be charged depending on the country of clearance.

FUEL SURCHARGE
We reserve the right to assess a fuel surcharge on shipments without notice. The amount and duration of any such surcharge will be applied in our sole discretion.

GST
The Goods and Services Tax will affect your shipments in the following way:

a) DOMESTIC: Freight charges are a taxable supply, therefore the 7% GST will be charged on all net freight costs, plus any surcharges.

b) U.S. & INTERNATIONAL / Inbound: Freight charges are a zero rated supply; therefore, no GST will be applied to these freight charges.  The GST may be assessed on the declared value (for customs) and any duties and excise taxes on inbound shipments.  Please contact your local Customs Specialist for details.

c) U.S. & INTERNATIONAL Outbound: Freight charges are a zero rated supply; therefore, no GST will be applied to these freight charges.

HST
Nova Scotia, New Brunswick, and Newfoundland) harmonized their provincial sales tax with GST to create the harmonized sales tax (HST). HST applies to the same base of goods and services as GST, but at the rate of 15%. Of this, 7% is the federal part and 8% is the provincial part.

INSPECTION OF SHIPMENTS
We reserve the right to inspect any shipment including, but not limited to, opening the shipment.  Governmental authorities, or other regulatory representatives, may also open and inspect any shipment.

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INSURANCE
The liability of Sterling for any loss or damage to a shipment is limited to the lesser of:

a) $100.00: or

b) the actual value of the shipment at the time and place of shipment, not exceeding $4.41 per kilogram, computed on the total weight of the shipment; or

c) the amount of loss or damage to a shipment actually sustained; or

d) the actual value of the document or package; unless otherwise agreed upon, in writing, by both parties.

Additional insurance coverage is available to a maximum of Ten Thousand Dollars ($10,000.00 CDN.) and must be declared in the appropriate area on the face of the waybill at the time of the shipment.  The rate for additional coverage is $3.50 per $100 declared value. If no value is declared, the maximum liability shall be limited to the amount set out in section (b) above.

The declared value for shipments for insurance purposes, consigned to United States or International destinations, cannot exceed the value for customs.

N.B. Shipments must conform to all Sterling "Terms and Conditions".

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INVOICING
Invoices for transportation charges, duties and taxes and the advancement fee are payable upon receipt. Terms are DUE ON RECEIPT.

The shipper will always be primarily responsible for all charges, including transportation charges, and all duties, customs assessments, government penalties and fines, taxes and our legal fees and costs, related to your shipment.

A special handling fee will be applied for any cheque or electronic fund transfer that is dishonoured due to insufficient funds on deposit or incorrect or insufficient signature of the drawer.

We reserve the right to audit air waybills and shipments made via an automated device (including online web orders) to verify service selection and package or shipment weight.

If the service selected or weight entered is incorrect, we may make appropriate adjustments to the invoice at any time.

Senders are responsible for accurately completing all sections of the air waybill and for the entry of accurate shipment information in any automated device. Because the number of packages and weight per package are critical to our ability to correctly invoice, any omission or incorrect entry or unavailable information will result in a billing based on our best estimate of the number of packages transported and, either the standard dimensional factor at the time of billing or a standard "default" weight per package estimate, determined (and periodically adjusted) at our discretion.

A waybill marked "BILL CHARGES TO SENDER" means that charges will be billed to the sender. A waybill marked "BILL CHARGES TO RECIPIENT" means charges will be billed to the recipient.  In such cases, the recipient must have a valid Sterling account number and this number must be indicated in the appropriate section of the waybill.  If not so indicated, charges will be billed automatically to the sender. A waybill marked "BILL CHARGES TO THIRD PARTY" will be billed to someone other than the sender or recipient.  The valid Sterling account number of the third party must be indicated on the waybill. If not so indicated, transportation charges will automatically be billed to the sender.

Sterling may assess additional transportation charges based on the IATA volumetric standard.  See the Dimensional Weight section of these Terms & Conditions for further definition.

The sender and recipient (if the recipient accepts the shipment) are liable jointly and separately for all unpaid charges related to the shipment including any additional charges advanced by Sterling on behalf of such shipment.

Remittances should be made to address indicated on invoice.

Sterling rates are calculated on a "per half-kilo" basis. Any fraction of a half-kilo takes the next higher rate.

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Customers should retain copies of all original air waybills and invoices. When duplicate copies are requested, a fee may be charged for each air waybill or invoice requested.

Invoice adjustments/overcharges

" Sterling may audit each waybill to verify the appropriate service and weight.  If the type of service selected or weight is determined to be incorrect, Sterling will correct the waybill and make adjustments to the invoice to reflect corrections.

" Default Billing: Clients are responsible for accurately completing all sections of the waybill.  Because the number of packages, weight and declared value of the shipment are critical to our ability to correctly bill clients, any omission from or incorrect entry of this information on the waybill will result in a billing based on the actual number of packages received from the customer and their weight as determined by Sterling.

" A short payment on an invoice is not considered a request for invoice adjustment.  An adjustment request should be noted on the Invoice, Statement or by attached letter indicating the desired action and reason for such request.  At the time you notify us, you must provide the account number, the order number, the waybill number, the date of shipment and the recipient's company name, address and postal code.

" An overcharge means a charge based on an incorrect discount rate, an incorrect special handling fee, a billing for the wrong type of service, or billing based on an incorrect weight or account number.  Requests for invoice adjustments due to an overcharge or service failure will be honoured for three months after the date of shipment.

" Requests for adjustments should be directed to the accounting department address indicated on the invoice or by e-mail to accounts@sterlinglogistics.com .

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LIABILITIES NOT ASSUMED
Sterling will not be liable, in any event, for any damages, whether direct, incidental, special or consequential, in excess of the declared value of a shipment arising from transportation, subject to the service conditions contained herein, whether or not Sterling knew or should have known that such damages might be incurred, including but not limited to, loss of income or profits, in excess of:

a) in the case of fundamental breach of the contract of carriage, an amount equal to our maximum liability and the amount of all transportation charges paid hereunder;

b) in the case of delay, a refund of your transportation charges: and

c) in any other case, an amount equal to our maximum liability.

We will not be liable for, nor shall any adjustment, refund, or credit of any kind be made as a result of any loss, damage, delay, mis-delivery or non-delivery caused by, or resulting from:

a) The act, default or omission of the sender, recipient or any other party who claims an interest in the shipment.

b) The nature of the shipment or any defect, characteristic or inherent vice thereof.

c) Violation by the sender or recipient of any of the rules contained in these Terms & Conditions or on the Sterling waybill including, but not limited to, improper or insufficient packing, securing, marking or addressing, or failure to observe any of the rules relating to shipments acceptable only under certain conditions.

d) Perils of the air, acts of God, public enemies, public authorities acting with actual or apparent authority on the premises, authority of law, acts or omissions of governmental or quarantine officials, riots, strikes or other local disputes, civil commotions, hazards incident to a state of war or weather conditions.

e) Modifications of Sterling's schedule in the event of national disruptions in the air or ground transportation networks such as weather phenomena, strikes by government employees or employees of other organizations or natural disasters. In such circumstances, Sterling commits to servicing all customers by making all reasonable efforts to transport and deliver packages to their designated recipient companies or addresses as quickly as possible, considering the specific circumstances involved.

f) Acts of omissions of any person other than Sterling, including compliance by Sterling or its agents, with verbal or written delivery instructions from the sender or recipient.

g) Loss of or damage to articles packed and sealed in packages by the sender, provided the seal is unbroken at the time of delivery and the package retains its basic integrity.

h) Delays caused by government procedures, statute or regulations of the province or country of origin or destination, or of any province or country through which the shipment may transit.

i) Our inability to provide a copy of the delivery record.

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Certain articles may be accepted for transportation by Sterling but must travel "At Shipper's Risk" on a "No Value" basis. Sterling shall have no liability whatsoever for delay, loss or damage to any of the following articles, even if the shipper has entered Declared Value For Insurance on the air waybill. Sterling courier and logistics reserves the right to refuse such shipments.

" Articles of unusual value

" Confectionery products, such as potato chips in any form, chocolate in any form, pastries and baked goods in any form

" Glass

" Ceramics

" Items longer than 108 inches (270 centimetres)

" Items requiring temperature control (i.e., protection from heat, cold, or humidity)

" Liquids

" Personal Effects and Unaccompanied Baggage

" Artwork, including but not limited to, drawings, paintings, prints, photographs, sculptures, porcelains, ceramics and unique handmade items

" Antiques, including but not limited to vases, furniture, glassware and tableware

" Collector's items, including but not limited to stamps, sports cards, coins, memorabilia and souvenirs.

" Precious metal, including but not limited to gold/silver bullion or dust

" Currency, lottery tickets, or gift certificates

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MANDATORY LAW
Insofar as any provisions contained or referred to in these Terms and Conditions, our air waybills or any applicable tariff, or any modifications, amendments and supplements to such documents, may be contrary to any applicable international treaties, laws, government regulations, orders or requirements, such provisions shall remain in effect as part of our agreement with you to the extent that they are not overridden. The invalidity or unenforceability of any provision shall not affect any other part of this document, air waybill, or any applicable tariff.

METHOD OF PAYMENT
There are three recommended forms of payment: cash, credit card (MasterCard or Visa), and charge to a valid Sterling account number in good standing. If a customer elects to "Bill Sender" , "Bill Recipient" or "Bill Third Party" and (1) fails to include an account number or (2) indicates an incorrect account number, Sterling may charge a special handling fee per air waybill or manifest to defray the extra expense of billing such items.

OVERNIGHT
The term "Overnight" ,when referring to delivery standards and transit times, means next business day delivery to selected major cities in Canada and the United States. Please consult with a Sterling Logistics customer service agent for details regarding overnight delivery service.

PACKAGING & MARKING
All shipments must be properly packaged and labelled including special markings as applicable (e.g. 'fragile'). Sterling will not accept responsibility or any liability for shipments which are improperly packed. All packages must be prepared and packed by the sender for safe transportation assuming ordinary care in handling. Any articles susceptible to damage as a result of any conditions which may be encountered in air transportation, such as changes in temperature or atmospheric pressure, must be adequately protected by the sender. Each shipment must be legibly and durably marked with the name, address and postal/zip code of the sender and recipient. Address labels should be placed on two sides of each package in the shipment. It is advisable for an additional label to be enclosed inside each box.

PICK UP AND DELIVERY SERVICE
Pick up service is provided by Sterling only in our direct service areas Monday through Friday at no additional charge.

Delivery service is provided by Sterling Monday through Friday at no additional charge to destinations within direct service areas.

A special handling fee will be applied to shipments picked up or delivered other than on "Business Days". See BUSINESS DAYS/CARRIER HOLIDAYS. Sterling may, at its sole discretion, use alternate pick-up and delivery arrangements. We may also, in our sole discretion, refuse to pick up or deliver a package or shipment.

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POST OFFICE BOX ADDRESSES
Packages cannot be delivered to post office boxes. In the event of a shipment being addressed to a post office box, the recipient's phone number must be included on the air waybill. An attempt will be made to contact the recipient by Sterling or its agent in the destination city for pick up of the shipment at the closest Sterling or agent location or to arrange for delivery to an urban or rural address.

Our normal delivery commitments do not apply to post office box shipments. There is an additional charge for this service.

PROOF OF DELIVERY – Verbal or Written
When requested by the sender or recipient, verbal confirmation of delivery (date, time and name of person who signed for the shipment) is available within 24 hours of delivery to Sterling direct delivery points. Other destinations may be subject to time delay due to location or time zone. When requested within 90 days of the shipping date, Sterling will, at its option, furnish a photo static copy of the destination delivery record or electronically captured delivery information for deliveries made within Sterling direct serviced areas. We assume no liability for our inability to provide a copy of the delivery record.

QUALIFIED ACCEPTANCE OF SHIPMENTS
We reserve the right to reject a shipment when such shipment would be likely to cause damage or delay to other shipments, equipment or personnel; or the carriage of which is prohibited by law or is in violation of any of the rules contained within these conditions.

RATES & SERVICE
See the Rate Guide (including Additional Charges) in effect at the time of shipping for specific rates. Rate and service quotations by our employees and agents are based upon information provided by you, but final rates and service may vary based upon the application of these Sterling Terms and Conditions to the shipment actually tendered.

RE-DELIVERY SERVICE
Any shipment, which cannot be delivered, will be returned to the nearest Sterling facility and an attempt made to contact the recipient.  A notice of attempted delivery will also be left at the recipient's address.  If after being held for five business days after the attempted delivery no delivery arrangements have been made, the package will be considered "Undeliverable".  See "Undeliverable Packages".

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RESIDENTIAL DELIVERY SURCHARGE

(Effective Jan. 17, 2011) – A Residential Delivery Surcharge will be levied for shipments delivered to a home OR business operating out of a home, where the entrance to the residence is not open to the public. This surcharge will be applicable to all shipments destined to Canada and the U.S. The surcharge will be as follows: Envelope/Package services $2.00 per shipment and Freight services $50 per shipment.

RESTRICTIONS
For shipments exceeding 200kgs. in total weight, the sender must make special pick-up arrangements with Sterling by 12:00 noon on the day of shipment to determine specific commitments and to arrange for pick-up and delivery within a specified time.

The following items are not acceptable for carriage by Sterling:

a) Live animals and plants, including cut flowers.

b) Perishable foodstuffs and beverages that are not packed appropriately for transport are unacceptable.  Non-perishable foodstuffs and beverages that are packed in appropriate containers are acceptable.

c) Liquor and alcoholic beverages.

d) Corpses cremated or disinterred remains.

e) C.O.D. shipments.

f) Dangerous goods.

g) Drugs, prescription.

h) Firearms, weaponry, and parts thereof. Explosives.

i) Money, including, but not limited to, cash, currency or paper money; coins; collectable stamps, jewellery.

j) Negotiable stocks, bonds, cash letters, and other negotiable instruments equivalent to cash.

k) Gambling devices, lottery tickets, liquor, tobacco, pornography.

l) Any shipment, which would be likely to cause damage or delay to equipment, personnel or other shipments.

m) Any shipment, which may require the carrier to obtain a licence for its transportation.

n) Any shipment containing dry ice.

o) Any item whose carriage is prohibited by any law statute or regulations of the province or country of origin or destination, or of any province or country through which the shipment may transit.

p) Any shipment addressed to a P.O. Box.

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ROUTING AND RE-ROUTING
Sterling will determine the routing of all shipments.

Sterling may divert any shipment, in order to expedite its delivery, to any other carrier, as it deems necessary.

SATURDAY SERVICE
Saturday Service is available to select areas of major centre cities. Please consult a Sterling service agent for details and restrictions. In any event notification requesting Saturday Service must be given at time of pick-up order and availability must be verified by agent ay that time. Service option must also be clearly indicated on the air waybill at the origin pick up point. Additional charges and some restrictions apply.

STORAGE CHARGES
A storage fee will be applied to any shipment unclaimed or otherwise left in a Sterling location for more than 72 hours following notification to the recipient and/or designated customs broker of the shipment's availability or additional documentation required for regulatory clearance.

SURCHARGES
Additional charges may be applied to the following:

" Shipments addressed to P.O. Boxes.

" Shipments addressed to Rural Routes.

" Shipments addressed to Extended Area delivery points.

" Shipments requiring subsequent attempts.

" Shipments incorrectly addressed.

" Shipments requiring re-routing.

" Proof of Delivery (P.O.D.) requests when shipment has been delivered according to stated service standards.

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TENDERS & SUBMISSIONS
Tenders and submissions will not be accepted.

UNDELIVERABLE PACKAGES
If a shipment is undeliverable for any reason, Sterling will attempt to notify the sender, at which time the shipment will be returned. Return charges will be assessed to the original sender along with the original charges unless the package was undeliverable due to some fault of Sterling.  Also included will be any other charges incurred, including, but not limited to, cartage agent fees, taxes and storage fees if applicable.

WARRANTY DISCLAIMER
Sterling makes no warranties, express or implied, and expressly disclaims any and all warranties.

WEIGHT
Sterling reserves the right to reweigh shipments, notwithstanding that a weight has been declared on the shipping document. The corrected weight determined by Sterling may be applied for the assessment of rates, and the shipper agrees to pay same.

Shipment weights will be rounded up to the nearest 500 grams. See also DIMENSIONAL WEIGHT.

For a complete list of current rates & destinations served and transit times please contact customer service at 905.673.2200 or view online at www.senditsterling.com.

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March 2004
Canada