Safety of Life at Sea (SOLAS) Verified Gross Mass (VGM) Enforced on 1 July, 2016 MOL Xiamen Office

2 Content I.Background & Introduction II.Definition & General Guidance III.VGM workflow in Hong Kong IV.Checklist as “Shipper” V.VGM portal & EDI enhancement VI.Appendix I.Background II.Core Principle III.Permissible Methods for Weighing IV.Checklist as “Shipper” & Info for Submission V.VGM Submission Channel VI.VGM submission Cut-off time

3 Background of SOLAS VGM  Introduction – The amendment to SOLAS Chapter VI, Regulation 2 regarding the verified gross mass of a container carrying cargo (packed container) was adopted at the 94 th MSC session in November 2014 will be enforced globally on 1 st July Terminal Carrier Shipper

Core Principles In November 2014 the International Maritime Organization (IMO) adopted mandatory amendments to the International Convention for the Safety of Life at Sea (SOLAS) Chapter VI, Part A, regulation 2 - Cargo information. New SOLAS amendments basic principles 1.Before a packed container can be loaded onto a ship, its weight must be determined through weighing – A verified weight is a condition for loading a packed container onto a ship. No Verified Weight means No Load. All extra cost, risk and liability incurred as a consequence of failure to meet VGM requirements shall be accountable by shipper. 2.Estimating weight is not permitted. Shippers must weigh or arrange for weighing of packed container or its contents. The carrier does not need to be a “verifier” of the shipper’s weight verification. 3.Two permissible methods for weighing: Method 1: Weigh the packed container. Method 2: Weigh the cargo and other contents and add tare mass of the container. (Packages that have the accurate mass clearly and permanently marked on their surfaces do not need to be weighed again when they are packed into the container.) 4.Shipper may rely on beneficial cargo owners (BCO’s) or other forwarders’ properly derived weights, using Method 1 or 2. But -- shippers remain responsible for verified weight. “Shipper” means the party identified on the maritime carrier’s Bill of Lading. 5.Governments may apply enforcement tolerance limits. Does not relieve the shipper from obligation to provide verified weight obtained from weighing. 6.Lack of signed shipper weight verification can be remedied by weighing the packed container at port or elsewhere. Subject to the Carriers and port terminals agreement on how such situations will be handled. 7.Government implementation - Commercial parties need to understand and arrange for compliance with national/local requirements (e.g., certification and documentation.) SOLAS convention is applicable global law. The SOLAS amendments become effective on July 1, 2016 for packed containers received for transportation (gate-in or off-rail).

5 Permissible Methods for Weighing 1. Method 1: Weighted the Packed Container Shipper VGM Terminal VGM TerminalCarrier Terminal / Approved Weighing Scale 2. Method 2: Weigh the cargo and other contents and add tare mass of the container Carrier VGM Shipper VGM

6 Checklist for “Shipper” 5. Seek information and contact MOL representative as always if you have inquiry 4. Be aware of MOL in-house rule, terminal & local guidance including inspection and penalty 3. Obtain your VGM data and submit it to MOL by accessible channel before VGM cut off 2. Evaluate the options feasibility for M1 or M2 – Cost, procedure & local ops practice 1. Determine who is the legal entity of “Shipper” – Exporter/Importer or NVOCC/Co-loader Steps to be followed by “Shipper”

7 Info required for VGM  Info required for VGM submission by any kind of channels:  Container number (Mandatory)  Booking / Bill of Lading number (Mandatory)  VGM (Mandatory)  Unit of Measurement (KG or LB) (Mandatory)  Authorized identity signature (in Capital) (Mandatory)  Method of Weighing (M1 or M2) (Mandatory)  Weighing Date/Time (Mandatory)  Shipper info (Optional)  Date of Declaration (Optional)  Weighing Party info (Optional)  Additional info required by local authorities (Optional) (ID Registration, Weighing Party Certificate etc.)  Info required for VGM submission by any kind of channels:  Container number (Mandatory)  Booking / Bill of Lading number (Mandatory)  VGM (Mandatory)  Unit of Measurement (KG or LB) (Mandatory)  Authorized identity signature (in Capital) (Mandatory)  Method of Weighing (M1 or M2) (Mandatory)  Weighing Date/Time (Mandatory)  Shipper info (Optional)  Date of Declaration (Optional)  Weighing Party info (Optional)  Additional info required by local authorities (Optional) (ID Registration, Weighing Party Certificate etc.)

8 Tare Weight of Container Tare weight of container mass at right door panel Tare weight of container mass at MOL Power enquiry feature

9 VGM Submission Channel VGM Submission Penavico E-portal Pls refer to “ 厦门外代电子商务网站提交 VGM 操作介 绍（ MOL 测试版） ” to get to know how to submit VGM. Testing could be taken in below website: If you want to use other portals, Molpower or EDI, pls contact with MOL Xiamen office for consultant.

10 VGM Submission cut-off time VGM submission cut-off time = Customs closing time ( 海关截申报时间） VGM submission cut-off time = Customs closing time ( 海关截申报时间） * Pls be noted that we are implementing “No VGM, No Loading”. To ensure smoothly operation, pls submit correct VGM data before VGM cut-off time. We would suggest not to amend VGM data after VGM cut-off time. If it’s a must, pls consult with MOL Xiamen office in advance.

11 SOLAS VGM For updated Information of VGM, please keep watch on our further notice, Or contact your MOL Representative for more. For updated Information of VGM, please keep watch on our further notice, Or contact your MOL Representative for more.