Standard Guidelines for Consignee Billing

Standard Guidelines for Consignee Billing 1. Consignee Billing is a contractual service between two UPS account holders. If either party is not an account holder, they will need to establish a Daily Pickup or Occasional Ground account prior to using the UPS Consignee Billing program. Services charges for accounts are supplied upon request by the UPS Consignee Billing department. The consignee is required to send the shipper a routing letter, which indicates they are a contracted location and gives authorization to the shipper to use this service. The routing letter may be in the form of a purchase order, fax, or email. Upon receipt of this information, the shipper must contact the Consignee Billing department at 1-800-354-7527 to get set up for this program. 2. After the shipper s account number has been contracted, the shipper must determine what method of package recording they will use. If the shipper is currently set up, or interested in being set up, with UPS Online Shipping Software, detailed instructions will be provided on how to record the package as Consignee Billing. If the shipper is currently using, or is interested in using, a manual recording method, a separate book and labels must be ordered. This can take up to 10 business days to receive. For immediate shipping needs, instructions can be supplied for shipping via the Internet if this is available to the shipper. All pickup requests must be scheduled one business day in advance. 3. Consignee Billing does not require the use of the consignee s UPS account number. The charges are billed to the contracted address of the customer. For this reason, it is important that the shipper verify the destination address with the Consignee Billing department. The address label must match the UPS Billing system exactly (i.e. punctuation, spaces, abbreviations), including the Company Name line. However, the Attention Line does not have to be exact. If the address label does not match the billing system, a charge back will result to the shipper for the entire freight charges plus an additional $10 fee per package. 1

CONSIGNEE BILLING OVERVIEW Description of Service Consignee Billing is a contractual agreement in which the receiver pays for shipping charges (including oversize and DIM weight) and Additional Handling Charges; the shipper pays for all other charges. Note: POD charges are paid for by the account requesting Proof of Delivery. Yes! The following are available: Pickup and delivery in the 50 states and Puerto Rico Hundredweight Pricing Early A.M., 1DA, and 1DA Saver 2 nd Day Air A.M. and 2 nd Day Air 3 Day Select and Ground No, the following are not available: No International Shipments No C.O.D.s No Prepaid Letters No On Call Air No Call Tags 01/30/2003 You may e-mail Consignee Billing at: consigneebilling@ups.com Consignee Billing Charges Consignee Billed For Shipping (includes oversize/dim weight charges) Additional Handling - $6.50- $8.00 if not in a cardboard box, etc. Shipper Billed For All other applicable charges: Weekly Service Charge Declared Value Hazmat Surcharge Saturday Delivery/Pickup Delivery Confirmation Address Correction 01/30/2003 Service Explanation Shipper & Consignee The following paragraphs contain the general rules and regulations under which United Parcel Service through its affiliates (the carrier ) is engaged in the transportation 2

of small packages. Service is provided between all points in the United States and Puerto Rico. Qualifying Conditions Shipments for which the package transportation charges are to be billed to the consignee will be accepted by the carrier in its UPS Next Day Air, UPS 2 nd Day Air, UPS 3 Day Select and ground services subject to the following conditions: (a) The consignee participates in UPS Consignee Billing under a continuing contract with the carrier. (b) The shipper is authorized by the consignee to make collect shipments to the consignee under the terms of UPS Consignee Billing. (c) The carrier has provided the shipper with an UPS Consignee Billing Pickup Record and UPS Consignee Billing labels. (d) Each package is recorded and identified according to the carrier s instructions for preparing UPS Consignee Billing packages. (e) The shipper will prepare and retain a business record showing the Consignee Billing Tracking number, the date of the shipment and the consignee address for each Consignee Billing package. This business record is required for claim payment. In the event that a package is shipped using UPS Consignee Billing and the qualifying conditions or restrictions are not complied with, the package will be delivered and the package transportation charges on the then current UPS Rate Chart ( rate chart ) will be billed to the shipper; and an Unauthorized Consignee Billing Package Charge of $10.00 (ten dollars) per package. UPS Next Day Air / UPS 2 nd Day Air Tracking Guarantee The carrier guarantees a verbal report of the status of UPS Next Day Air shipments and UPS 2nd Day Air shipments within 30 minutes of a tracking inquiry. All terms and conditions, as stated in the service explanation in effect at the time of shipping for UPS Next Day Air and UPS 2nd Day Air, shall apply. Service Guarantee The carrier guarantees onschedule delivery of any package sent via UPS Next Day Air, UPS 2nd Day Air or UPS 3- Day Select. In the event the carrier fails to complete delivery or attempt delivery within the time commitment published at the time of shipment, the carrier, at the carrier s option, will credit or refund the shipping charges, upon request, subject to all terms and conditions as stated in the service explanations in effect at the time of shipping for UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select service. Service Days Carrier will provide automatic daily pickup service during carrier s business days. Deliveries Attempted Three Times without Extra Charge If the carrier is unable to make delivery of a package, a nondelivery notice will be left at the consignee s address stating that the delivery has been attempted. Thereafter, a second and, if necessary, a third attempt to deliver the package will be made without additional charge. Interruption of Service The carrier shall not be liable for any interruption of delivery service due to a cause beyond its control, or to strikes, lockouts or labor disputes. Refused Packages Returned Packages refused by the consignee or which for any other reason cannot be delivered, will be promptly returned to the shipper without additional charge for return; however, the package transportation charge, as stated on the then current rate chart, will be billed to the consignee. Payment of Transportation Charges All package transportation charges will be paid by the consignee. All other charges including charges for Declared Value will be paid by the shipper in accordance with the rate chart in effect at the time of shipping. Shipper Hazardous Materials Shipments containing hazardous materials must be prepared according to the requirements set forth in the Code of Federal Regulations Title 49 and the UPS Guide for Shipping Ground and Air Hazardous Materials. For each hazardous materials package requiring shipping papers under 49 C.F.R. Section 172.200, an additional charge, as stated on the rate chart in effect at the time of shipping, will be assessed to the shipper. If a hazardous materials package is refused by the consignee or is damaged, it will be returned to the shipper, if possible. The carrier reserves the right to charge the shipper for all costs resulting from improperly packed hazardous 3

materials, or the cost of disposal if the shipper refuses to accept a returned item. Delivery Confirmation At the time a shipper tenders a package to the carrier, the shipper may attach a special label, approved by the carrier, requesting Delivery Confirmation Service. Each Confirmation of Delivery response will include the date of delivery and either the name of the recipient or the disposition of the package; or, in the event of a return, the response will indicate the reason for the return and the date processed. All responses will be consolidated and provided to the shipper weekly in printed or electronic format. An additional charge, as stated on will be assessed to the shipper for each Delivery Confirmation response. A shipper may instruct the carrier to obtain the recipient s signature and to include it on the response at an additional charge, as stated on the then current rate chart. A shipper may elect to direct the response to a return address specified on the label. In such case, the response will be mailed individually and an will be assessed. FAX P.O.D. (Proof of Delivery) Upon request, the carrier will provide proof of delivery via facsimile transmission. The request must include a FAX number, including area code, for an operating FAX machine. An will be assessed for each successfully transmitted FAX P.O.D. Saturday Pickup of UPS Next Day Air and UPS 2nd Day Air The carrier offers optional Saturday pickup of UPS Next Day Air and UPS 2nd Day Air shipments from most locations in the United States and Puerto Rico. UPS Next Day Air and UPS 2nd Day Air shipments picked up on Saturday receive the same time commitments for delivery as UPS Next Day Air and UPS 2nd Day Air shipments picked up on Friday. Saturday pickup service is provided by the following methods: (a) A shipper may request Saturday pickup by contacting the carrier s Customer Service office on each Saturday, excluding holidays, that the service is needed. (b) At the shipper s option, the carrier will call at the shipper s premises every Saturday, excluding holidays, to pick up UPS Next Day Air and UPS 2nd Day Air shipments. A service charge, as stated on the rate chart in effect at the time of shipping, will be assessed to the shipper whenever the carrier calls at the shipper s premises on Saturday and there are no packages to be picked up that day. An additional charge, as stated on the rate chart in effect at the time of shipping, will be assessed to the shipper for each UPS Next Day Air and UPS 2nd Day Air package tendered to the carrier on Saturday. The shipper should contact the carrier s Customer Service office for information regarding the carrier s Saturday pickup area. Saturday Delivery of UPS Next Day Air The shipper may request optional Saturday delivery of UPS Next Day Air shipments to the destinations identified in the UPS Air Service Guide by attaching a Saturday Delivery routing label (provided by the carrier) to each package. An will be assessed to the shipper for each UPS Next Day Air package received for Saturday delivery. Correction of Wrong Address If the carrier is unable to deliver any package because of an incorrect address, the carrier will refer to the telephone directory and make every other reasonable effort to secure the correct address. If the correct address is secured, the carrier will make another attempt at delivery and the shipper will be notified of the correction of address. An will be assessed to the shipper for delivery or attempted delivery to the correct address. If the correct delivery address cannot be secured, the package will be promptly returned to the shipper and the package transportation charges, as stated on the then current rate chart will be billed to the shipper. Responsibility for Loss or Damage Unless a greater value is declared in writing in the space provided on the UPS Consignee Billing Pickup Record, the shipper declares the released value of each package to be no greater than $100. For each $100 or fraction thereof of declared value per package in excess of $100, an additional charge, as stated on the rate chart in effect at the time of 4

shipping, will be billed to the shipper. Except if otherwise directed by the shipper, the carrier will remit excess valuation charges to an insurance company or companies as a premium for shipper s interest cargo insurance for the shipper s account and on its behalf. When the carrier does so, claims for loss of or damage to the shipper s property will be filed with and settled by the carrier on behalf of the applicable insurance company. Shipper s Interest Cargo Policies are available for inspection at the office of the carrier. Claims not made within nine months after delivery of the package, or, in the case of non-delivery, within nine months after a reasonable time for delivery has elapsed, shall be deemed waived. The carrier shall not be liable for any special, incidental or consequential damages. Weekly Service Charge When pickup service is requested and furnished, a weekly service charge, as stated on the rate chart in effect at the time of shipping, will be applied. The carrier will call at the shipper s premises once each business day to pick up packages for delivery to all points served without special delivery request and whether or not any packages are available for delivery. When On Demand Consignee Billing pickup service is requested and furnished, the weekly service charge will be applied. Commodities Handled and Restrictions upon Service The carrier holds itself out to transport general commodities, except those of unusual value, classes A and B explosives, household goods, commodities in bulk, commodities requiring special equipment, and those injurious or contaminating to other lading, subject to the following restrictions: (a) No service shall be rendered in the transportation of articles of unusual value. The maximum value or declared value per package is $50,000 and the maximum liability per package is $50,000. (b) No service shall be rendered in the transportation of any package or article weighing more than 150 pounds, or exceeding 108 inches in length, or exceeding a total of 130 inches in length and girth combined. Each package or article shall be considered as a separate and distinct shipment. (c) The maximum weight for a hazardous materials package is 70 pounds unless further restricted in the UPS Guide for Shipping Ground and Air Hazardous Materials. (d) The carrier does not provide a protective service for the transportation of perishable commodities or of commodities requiring protection from heat or cold. Such commodities will be accepted for transportation solely at shipper s risk for damage occasioned by exposure to heat or cold. (e) C.O.D. and Call Tag services are not provided. (f) International shipments are not accepted. Right of Inspection The carrier reserves the right to open and inspect any package tendered to it for transportation. Use of the ZIP Code The ZIP Code is an important part of the address. Therefore, to assure dependable service, it is essential that the ZIP Code is included in the delivery address. Refusal of Unsafe Packages The carrier reserves the right to refuse any package which by reason of the dangerous or other character of its contents is liable, in the judgement of the carrier, to soil, taint or otherwise damage other merchandise or equipment, or which is economically or operationally impracticable to transport, or which is improperly packed or wrapped. Packages must be so packed or wrapped as to pass the tests set forth in National Safe Transit Project 1-A. Consignee Payments for Service The carrier s credit terms require payment of all charges within seven days after receipt of carrier s bill. Rates See rate chart for current rates. The minimum charge for any package measuring over 84 inches in length and girth combined will be equal to the charge for a package weighing 30 pounds. All package charges are based on the gross weight of the package and its contents. Fractions of a pound will be increased to the next full pound. Additional Handling Charge An Additional Handling Charge, as stated on the then current rate chart, will be assessed for the transportation of the following: 5

(a) Any article that is not fully encased in an outside shipping container. (b) Any article that is encased in an outside shipping container made of metal or wood. (c) Cans or pails that are not fully encased in a shipping container made of corrugated cardboard. (d) Any package that exceeds 60 inches in length. All shipments are subject to the terms and conditions contained in the UPS tariff, which is maintained at local UPS offices. How to Ship UPS Consignee Billing on the Internet 1. Go to www.ups.com and log in with your User ID and password. If you are new to our site, click on Register which is on the top right of the screen. If you are already registered, please skip to Step 7. 2. Once you have logged in, click on My UPS at the top right corner of your screen. 3. The screen that appears is separated into four groups. The first one on the left side is Manage My UPS. Inside this box is Account Summary. Click on that. 4. On this new screen titled Account Summary, you will see a blue link; Add a UPS Account, click on this. 5. Enter your account information in the provided spaces, and click on Add. 6. If you entered your information correctly, your next screen should read, Account Added. 7. Now at the top right of your screen you will see the Address Book button, click on this. 8. When this page loads, please click on Add Address. 9. Enter the ship to address exactly as our UPS Consignee Billing department provided it to you. ***Keep in mind, the company name and body of the address must be exactly as it appears in the UPS database. If the address is not entered exactly, it may result in your account being charged for the shipping as well as a $10 unauthorized Consignee Billing charge back. 10. At the bottom of this page, click on the box indicating Consignee Billable, then click on Save. 11. You are now back at the beginning screen of your Address Book. 12. Now click on the Shipping Tab at the top left corner of your screen. Choose the Create a Shipment link that appears in the tab. 13. On this page choose the address you just added from the drop down menu that says Select One. 14. You will see a message appear across the top of this screen, Your payment method has been set to UPS Consignee Billing. This means everything you ve done so far is correct! 15. Fill out this entire page with your package information. 16. Finally, click on Ship Now and follow the prompts from there. 6

If you have any technical problems while processing this, please contact UPS Technical Support at 1 877 289 6418. If you have any questions about these instructions, please contact UPS Consignee Billing at 1 800 354 7527. Online Worldship 1. Choose Tools from the menu bar at the top of the screen, and then select Address Book Editor. 2. Click on the pull down arrow next to Company or Name. 3. Choose the appropriate customer from your database or type in a new customer. 4. Click on the Consignee Billed option at the bottom of this screen. 5. Select Modify Address, or Add New Address, then Close. 6. Record and label the Consignee Billing package as any other package. Consignee Billing tracking labels are not necessary when entering your shipping information into the Worldship program. If you need technical assistance for this system, please call (888) 553-1118. 7