ITEM 537 Extension of Credit
CSA may extend credit to shipper in which case payment will be due upon receipt of the invoice.
Freight bills may be presented by mail. Unless otherwise agreed CSA will send invoices by mail.
When the mail service is so used the time of mailing by CSA shall be deemed to be the time of presentation of the bills unless other terms are agreed to in a contract. In a case of dispute as to the time of mailing the postmark shall be accepted as showing such time. CSA and the shipper or consignee or designated payment agent may enter into a separate agreement for CSA to transmit invoices electronically via electronic data interchange.
When CSA transmits invoices via E.D.I. the date of receipt by the customer will be the date received by the designated systems.
Application for credit with CSA regarding payment of freight bills shall be in writing to the party requesting said credit and approved by an authorized representative of CSA.
CSA reserves the right to require prepayment of all charges or other satisfactory assurance of payment before accepting shipment or attempting delivery.
Upon request and for the shipper’s convenience CSA will invoice the shipper’s broker, bank or other designated agent for freight charges. CSA reserves the right to bill and collect freight charges from the shipper on prepaid or the consignee on collect shipments in the event full payment of freight charges is not received pursuant to such third party billing instructions.
ITEM 538 Payment of Freight Charges
1. Unless otherwise provided in CSA’s tariffs shipments will be accepted subject to the following provisions:
A. A prepaid shipment is one on which the charges for transportation service rendered at the request of the consignor, including charges for any accessorial services performed at the request of the consignor are to be paid by the shipper.
B. A collect shipment is one which the charges for transportation service including accessorial services rendered at the request of the consignee or requested by the consignor for the consignee are to be paid for by the consignee.
C . A shipment on which charges are to be paid by a party other than the consignor or consignee will be accepted provided that the consignor has established credit with CSA. The shipper must guarantee to pay the charges if the third party fails to do so within the time allowed under CSA regulations. Such a shipment will not be accepted if the consignor executes Section 7 of the bill of lading.
2. Payment of freight charges must be made immediately by a shipper upon receipt of prepaid freight bill. Freight charges on collect shipments must be paid by the consignee at time of delivery unless credit has been established with CSA in which case payment is due upon receipt of the invoice.
ITEM 539 Third Party Collection of Charges
When a party other than the consignor or consignee as shown on the bill of lading and shipping order is responsible for paying the freight charges such party’s name and address must be clearly shown in the body of the bill of lading and shipping order at the time of original tender.
Shipments subject to the provisions of this item will be accepted only when the consignor has established credit with CSA and guarantees to pay all lawfully accrued charges if the third party fails to do so.
ITEM 540 Collect on Delivery (COD) Shipments
Unless otherwise provided, collect on delivery (COD) shipments will be accepted subject to the following provisions and charges:
At the time of shipment the following information must appear on the bill of lading: Collect on Delivery$__________________and remit to __________________.
If consignor desired to forward invoice or collection papers they must be securely attached to the shipping order copy of the bill of lading and the shipping order must show the following information:
“Attached invoice (invoices) to accompany shipment to destination.”
COD shipments will not be accepted if:
A. Instructions require payment from party other than consignee.
B. COD is subject to inspection, trial by consignee or if CSA is requested to make a partial delivery.
C. The maximum amount of COD to be collected and CSA’s liability to the shipper or originator of the COD amount shall be limited to a maximum amount of $20,000. COD’s over $20,000 will be collected if mutually agreed upon by CSA and the shipper, subject to no liability on the part of CSA.
Only the following forms of payment will be accepted; (1) cash up to a maximum of $500.00 (2) bank cashier’s cheque (3) bank certified cheque (4) money order or (5) personal cheque of the consignee when so authorized in writing by theconsignor. All cheques and money orders shall be made payable to the consignor.
ITEM 541 TERMS OF PAYMENTS
1. The bill of lading constitutes the contract of carriage between CSA and the shipper pertaining to the payer of the charges for the shipment and the particulars as to the commodities and weight being shipped. The signed bill of lading or shipping order received by CSA at time of pick-up must specify the terms of shipping and payment of freight charges.
2. The shipper and consignee are jointly responsible for payment of all freight charges. If one defaults for whatever reason the other party will be held liable.
3. Whereas between the shipper and the consignee it is intended that the freight ship on a credit arrangement to be billed to the shipper’s account, the bill of lading shall be marked “prepaid” in which event CSA agrees to first look to the shipper for payment for freight charges and to extend to the shipper whatever credit arrangements might be agreed upon between them. This agreement in no way detracts from the ultimate liability of the consignee in the event of default of payment
by the shipper.
4. Whereas between the shipper and the consignee it is intended that the consignee shall pay the freight charges, the bill of lading shall be marked “collect” in which event CSA agrees to extend credit to the consignee on whatever terms might be agreed upon between the two, or to first look to the consignee for payment of freight charges but this shall in no way relieve the shipper from liability for freight charges in the event of default by the consignee.
5. Where a bill of lading is not marked either prepaid or collect CSA is to consider that the freight is moving on a collect basis in accordance with the preceding rule.
6. If, as between the shipper and the consignee or either of them it is intended that a third party pay the freight charges in respect of a shipment then the bill of lading must be marked prepaid and a notation thereon made referring to the name and address of the third party to be billed. In such cases CSA agrees to carry such freight upon whatever credit terms might be agreed upon between the third party and CSA, in the absence of such agreement CSA agrees to first look to the third party for payment of freight charges, but in no event shall this relieve the shipper or the consignee from liability for freight charges as hereinbefore stated.
7. CSA is not obligated to accept corrected bills of lading or letters authorizing a charge pertaining to payment of freight charges after commencement of carriage.
8. The charges for collecting and remitting the requested amount for COD shipments will be collected from the party responsible for the freight charges.
9. The charges for collecting and remitting each COD bill will be 5% of the COD amount subject to a minimum charge of $90.00.
10. CSA will upon written authorization from consignor change the form of payment of COD amounts to accept consignee’s personal cheque when such form of payment was not originally authorized. Consignor must guarantee payment of the charge for redelivery, if any.
11. When tendering a Collect on Delivery shipment the letters “COD” must be inserted on the bill of lading or shipping documents in large, easy to read writing.
ITEM 542 Uncollectible Charges
CSA at its discretion may take possession of goods being shipped as a specific lien, retaining possession of the shipment until payment has been made for such shipment, or as a general lien retaining shipments in its possession until full payment of any customer debt whether the debt was incurred with respect to those shipments or past shipments. After taking possession CSA will provide the customer fifteen (15) days notice of its intention to dispose of the merchandise unless payment is received in full. Proceeds from such disposal will be applied toward satisfying the outstanding debt. In the event of a shortfall the customer will be held liable for any remaining balance outstanding.
ITEM 543 Applicable Fuel Surcharges
Please visit this CSA web page: http://csatransportation.com/resources/fuel-surcharge to view CSA’s applicable surcharge amount for the current month, based on the U.S. National Average.