Terms and Conditions for Mail Boxes Etc. Hong Kong Shipping Services

v.1 2025-08-08

Executive Summary and Risk Assessment

The current Shipping Order Form (SOF) contains several high-risk legal deficiencies that expose Creative Investment Holding Limited to significant liability under Hong Kong law. Key issues include vague appointment clauses, inadequate liability exclusions, and missing consumer protection compliances. The following analysis provides a comprehensive revision aligned with Hong Kong legislation and international best practices.[1][2][3]

Critical Legal Deficiencies in Current SOF

High-Risk Issues Requiring Immediate Attention

1. Non-Compliant Liability Exclusions

The current clause "(4) Expect the cases of willful misconduct and gross negligence, the liability of MBE is regulated by the following conditions" contains multiple legal deficiencies under Hong Kong's Control of Exemption Clauses Ordinance (Cap 71). The reasonableness test under Section 3 requires that exemption clauses be "fair and reasonable" considering all circumstances. Current blanket exclusions fail this test.[4][5][6]

2. Inadequate Time Limitations

Hong Kong law imposes standard limitation periods of six years for contract claims and three years for personal injury. The absence of specific claim notification periods creates uncertainty and potential unlimited liability exposure.[7]

3. Missing Consumer Protection Compliance

Under the Unconscionable Contracts Ordinance (Cap 458), standard form contracts dealing with consumers are subject to unconscionability review. The current terms lack adequate consumer protection safeguards.[8][9][10]

4. Trade Descriptions Ordinance Violations

The Trade Descriptions Ordinance (Cap 362) requires accurate goods declarations. Current terms inadequately address customer obligations for proper goods description and dangerous goods identification.[11][12][13]

Comprehensive Revised Terms and Conditions

1. DEFINITIONS AND APPOINTMENT

1.1 Definitions

· "MBE" means Mail Boxes Etc. operating through Creative Investment Holding Limited, acting as forwarding agent and intermediary, not as carrier

· "Customer" means the person requesting shipping services, including consignor, consignee, or their authorized representative

· "Goods" means items accepted for shipment, including packaging and documentation

· "Carrier" means the actual transportation company (UPS, FedEx, DHL, SF Express, etc.)

· "Services" means forwarding, packing, documentation, and related shipping arrangement services

1.2 Appointment and Authority

The Customer hereby appoints MBE as forwarding agent to arrange transportation services with selected Carriers. MBE acts solely as intermediary and not as carrier. Customer authorizes MBE to:

· Select appropriate Carriers based on Customer requirements

· Sign shipping documents as Customer's agent

· Arrange insurance when requested

· Handle documentation and customs requirements

2. CUSTOMER OBLIGATIONS AND DECLARATIONS

2.1 Goods Declaration[12][11]

Customer must provide complete and accurate information regarding:

· Full description, weight, dimensions, and value of Goods

· Contents declaration complying with Trade Descriptions Ordinance (Cap 362)

· Dangerous goods classification under applicable regulations[14]

· Customs documentation and commercial invoices

2.2 Dangerous Goods

Customer warrants that no Goods are dangerous, hazardous, prohibited, or restricted without proper declaration and documentation. False declaration may result in penalties under Hong Kong law.[15][11]

2.3 Packaging and Marking

Customer is responsible for proper packaging, marking, and labeling to withstand normal transportation handling unless MBE specifically agrees to provide packing services.

3. MBE SERVICES AND OBLIGATIONS

3.1 Standard of Care

MBE will provide Services with reasonable care and skill in accordance with the Supply of Services (Implied Terms) Ordinance. MBE's obligations are limited to:[2]

· Selecting appropriate Carriers using reasonable care

· Arranging transportation according to Customer instructions

· Providing packing services when specifically requested

· Handling documentation with reasonable care

3.2 Agency Limitations

MBE acts as forwarding agent only. Transportation is performed by independent Carriers under their respective terms and conditions.[16][17][18]

4. LIABILITY AND LIMITATIONS

4.1 Liability Framework[5][19][4]

Subject to Hong Kong Control of Exemption Clauses Ordinance (Cap 71), MBE's liability is limited as follows:

4.2 Excluded Liability

MBE is not liable for:

· Loss or damage during actual transportation (Carrier responsibility)

· Delays in delivery beyond MBE's control

· Customs duties, taxes, or government charges

· Consequential or indirect damages

· Loss due to Customer's incorrect or incomplete information

4.3 Limited Liability

Where MBE is found liable for Services negligently performed, liability is limited to:

· Packing Services: Lesser of HK$5,000 or declared value

· Documentation errors: Cost of re-documentation

· Other Services: HK$2,000 per incident

4.4 Statutory Compliance[3][2]

Nothing in these terms excludes or restricts:

· Liability for death or personal injury caused by negligence

· Rights under consumer protection legislation

· Statutory implied terms where Customer deals as consumer

5. CLAIMS AND TIME LIMITS

5.1 Claim Notification[20][21]

Customer must provide written notice of claims to MBE within:

· Loss or damage: 7 days from delivery date or expected delivery date

· Service defects: 30 days from service completion

· All supporting documentation must be provided within 90 days

5.2 Limitation Period

All claims against MBE are barred unless proceedings are commenced within two years from the date of loss or service provision.

5.3 Carrier Claims

Claims related to transportation loss or damage must be pursued directly with the Carrier under their terms and conditions. MBE will provide reasonable assistance in pursuing such claims.

6. INSURANCE AND VALUATION

6.1 Insurance Options

· Basic Carrier coverage applies unless additional insurance requested

· Extended coverage available for additional premium

· Customer must declare correct value for insurance purposes

6.2 Valuation Limits

Unless higher value declared and insured:

· Documents: HK$100 per shipment

· Goods: Lesser of actual value or HK$500 per kilogram

7. FORCE MAJEURE

MBE is not liable for failure to perform due to circumstances beyond reasonable control including acts of God, government action, strikes, natural disasters, pandemic restrictions, or Carrier operational disruptions.

8. GENERAL PROVISIONS

8.1 Governing Law and Jurisdiction[19]

These terms are governed by Hong Kong law. Hong Kong courts have exclusive jurisdiction for disputes, subject to arbitration clauses in specific service agreements.

8.2 Consumer Rights[2][8]

Where Customer deals as consumer, statutory consumer rights under Hong Kong law cannot be excluded and prevail over inconsistent terms.

8.3 Severability

Invalid provisions do not affect remaining terms' validity.

8.4 Independent Franchisee

MBE Centers are operated by independent entrepreneurs under MBE trademark. MBE Worldwide S.P.A. is not liable for local franchise operations.[22]

Comparative Analysis with International Best Practices

MBE UK Terms Comparison[23][24][16]

The revised terms align with MBE UK's approach of:

· Clear forwarding agent status definition

· Reasonable liability limitations

· Proper consumer protection compliance

· Defined claim procedures

Carrier Integration[17][18][25]

Terms properly integrate with major carrier conditions (UPS, FedEx, DHL) while maintaining clear delineation of responsibilities.

Implementation Recommendations

1. Immediate Actions

· Replace current SOF terms with revised version

· Train staff on new liability limitations and claim procedures

· Update insurance coverage to align with liability caps

· Implement customer education program on proper goods declaration

2. Ongoing Compliance

· Regular legal review of terms (annually)

· Monitor Hong Kong legislative changes

· Maintain documentation for reasonableness test compliance

· Update terms based on operational experience and legal precedents

3. Risk Management

· Implement proper goods acceptance procedures

· Document dangerous goods handling protocols

· Maintain adequate professional indemnity insurance

· Establish clear escalation procedures for complex claims

Conclusion

The revised terms and conditions provide comprehensive protection while ensuring compliance with Hong Kong law. Key improvements include proper liability framework under the Control of Exemption Clauses Ordinance, consumer protection compliance, and alignment with international forwarding industry standards. Regular review and updates ensure continued legal compliance and operational effectiveness.[26][27][8][4][5][2]

The terms balance commercial practicality with legal requirements, providing clear guidance for both customers and MBE operations while minimizing legal exposure through proper risk allocation and statutory compliance.

1. https://www.hfw.com/insights/limitation-of-liability-in-hong-kong-breaking-news-october-2017/

2. https://www.tannerdewitt.com/the-hong-kong-market-entry-playbook-consumer-protection/

3. https://familyclic.hk/en/topics/daily-lives-legal-issues/consumer-rights/unreasonable-exemption-clauses-and-unfair-contract-terms/

4. https://www.hkreform.gov.hk/en/publications/rexemption.htm

5. https://www.clic.org.hk/en/topics/businessAndCommerce/setting_up_business_in_Hong_Kong/making_a_business_contract/q4

6. https://www.elegislation.gov.hk/hk/cap71!en/s3?_lang=en

7. https://www.hfw.com/app/uploads/2024/04/SLR-7_Hong-Kong.pdf

8. https://www.consumer.org.hk/en/press-release/p-554-unconscionable-contracts-ordinance

9. https://www.elegislation.gov.hk/hk/cap458

10. https://www.elegislation.gov.hk/hk/cap458!en-zh-Hant-HK?INDEX_CS=N

11. https://www.customs.gov.hk/en/service-enforcement-information/consumer-protection/trade-desc/index.html

12. https://oelawhk.lib.hku.hk/items/show/3342