In this Code, the meanings of the terms set forth in the following items are as prescribed respectively in those items:

A freight transportation contract becomes effective by virtue of a carrier promising to receive goods from a shipper and deliver them to a consignee, and the shipper promising to pay freight charges for that outcome.

①A shipper must issue a document containing the following information (referred to as an "invoice" in the following paragraph) at the request of a carrier:

②In lieu of issuing an invoice, the shipper referred to in the preceding paragraph may provide the information that is required to be contained in an invoice by electronic or magnetic means (meaning a means of using an electronic data processing system, or of otherwise employing information and communications technology, which is specified by Ministry of Justice Order; the same applies hereinafter), with the carrier's consent, pursuant to the provisions of Ministry of Justice Order. In this case, the shipper is deemed to have issued an invoice.

If the goods to be transported are goods of an inflammable, explosive or otherwise dangerous nature, a shipper, before delivering them, must notify a carrier of this fact and of the information necessary for their safe transportation, including the product name and nature of the goods.

①Freight charges must be paid at the time the goods are delivered at the destination.

②If goods are lost or damaged due to the nature of or defect in the goods, the shipper may not refuse to pay freight charges.

A carrier may retain goods only against the freight charges, ancillary costs, and money advanced receivable for the goods (hereinafter referred to as "freight charges and other receivables" in this Section), until the carrier is paid for these in full.

If, between the receipt of goods and their delivery, those goods are lost or damaged or something occurs that causes them to be lost or damaged, or if their arrival is delayed, a carrier is liable to compensate for the resulting loss or damage; provided, however, that this does not apply if a carrier proves that it did not neglect to exercise due care in the receipt, transportation, storage, or delivery of the goods.

①The amount of damages in the event of loss of or damage to goods is determined by the market price of the goods (or by quotations on an exchange, for goods for which this is applicable) at the place and time at which the goods are to be delivered; provided, however, that if there is no market price, this is determined by the normal price of goods of the same type and with the same quality at that place and time.

②Costs, including freight charges that are no longer payable due to the loss or damage to goods, are deducted from the amount of compensation for loss or damage referred to in the preceding paragraph.

③The provisions of the preceding two paragraphs do not apply if the loss or damage to goods arises at the carrier's intention or due to the carrier's gross negligence.

①A carrier is not liable for damages for loss of, damage to, or delayed arrival of cash, negotiable instruments, or other valuables, unless the shipper notifies the carrier of the type and value of the items in entrusting the carrier with transporting them.

②The provisions of the preceding paragraph do not apply in the following cases:

①The liability of a carrier to compensate for loss or damage arising as a result of loss, damage, or delay (meaning loss of, damage to, or delay in the arrival of the goods; hereinafter the same applies in this Section) if it has undertaken two or more modes of transportation from among land transportation, marine transportation, and air transportation under a single contract is to be governed by the provisions of Japanese laws and regulations or treaties which Japan has signed that are to be applied to each mode of transportation if the thing that causes the loss, damage, or delay occurs during that mode of transportation.

②The provisions of the preceding paragraph apply mutatis mutandis if a carrier, under a single contract, undertakes land transportation to which two or more different laws and regulations apply for each segment.

①If two or more carriers transport goods or passengers over land in succession, the second or subsequent carrier bears the obligation to exercise the rights of the previous carrier on its behalf.

②In the case referred to in the preceding paragraph, if the subsequent carrier pays the preceding carrier in full, the subsequent carrier acquires the rights of the previous carrier.

③If, for the benefit of a shipper, a second carrier, in succession, undertakes a part of the land transportation that a first carrier has undertaken, these carriers are jointly and severally liable to compensate for loss or damage arising as a result of loss, damage, or delay.

④The provisions of the preceding three paragraphs apply mutatis mutandis to marine transportation and air transportation.

A shipper may request a carrier to take measures such as discontinuing transportation or changing the consignee. In this case, a carrier may demand payment of freight charges, ancillary costs, money advanced, and costs incurred for the measures, in proportion to the transportation already completed.

①Once the goods arrive at the destination, or if all of the goods are lost, the consignee acquires the same rights as those of the shipper that have arisen based on a freight transportation contract.

②In the case referred to in the preceding paragraph, if the consignee seeks the delivery of goods or files a claim for damage to goods, the shipper may not exercise those rights.

③Once a consignee receives goods, the consignee bears the obligation to pay freight charges and other receivables to the carrier.

①A carrier may deposit goods with an official depository if the carrier is unable to ascertain the identity of the consignee.

②In the case referred to in the preceding paragraph, if the carrier demands that the shipper instruct it as to how to handle the goods within a reasonable period of time but the shipper does not give any such instructions, the carrier may put the goods up for auction.

③If the price of goods is likely to decline for reasons such as damage, the carrier may put the goods up for auction without making the demand referred to in the preceding paragraph.

④If a carrier puts goods up for auction pursuant to the provisions of the preceding two paragraphs, the carrier must deposit the proceeds from the auction with an official depository; provided, however, that this does not preclude the carrier from allocating all or part of the proceeds to cover the freight charges and other receivables.

⑤Once a carrier deposits goods with an official depository or puts goods up for auction pursuant to the provisions of paragraphs (1) through (3), the carrier must notify the shipper of this without delay.