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PUBLIC ACT NO.

521
CARRIAGE OF GOODS BY SEA ACT


Secton 1. That the provsons of Pubc Act No. 521 of the 7th Congress of the
Unted States, approved on Apr 16, 1936, be accepted, as t s hereby accepted
to be made appcabe to a contracts for the carrage of goods by sea to and from
Phppne ports n foregn trade: Provded, that nothng n ths Act sha be
construed as repeang any exstng provson of the Code of Commerce whch s
now n force, or as mtng ts appcaton.
Sec. 2. Ths Act sha take effect upon ts approva. (Approved October 22, 1936).

TITLE I

Sec. 1. When used n ths Act -
(a) The term "carrer" ncudes the owner or the charterer who enters nto a
contract of carrage wth a shpper.
(b) The term "contract of carrage" appes ony to contracts of carrage by
covered by a b of adng or any smar document of tte, nsofar as such
document reates to the carrage of goods by sea, ncudng any b of adng or
any smar document as aforesad ssued under or pursuant to a character party
from the moment at whch such b of adng or smar document of tte reguates
the reatons between a carrer and a hoder of the same.
(c) The term "goods" ncudes goods, wares, merchandse, and artces of every
knd whatsoever, except ve anmas and cargo whch by the contract of carrage
s stated as beng carred on deck and s so carred.
(d) The term "shp" means any vesse used for the carrage of goods by sea.
(e) The term "carrage of goods" covers the perod from the tme when the goods
are oaded to the tme when they are dscharged from the shp.

RISKS

Sec. 2. Sub|ect to the provsons of Secton 6, under every contract of carrage of
goods by sea, the carrer n reaton to the oadng, handng, stowage, carrage,
custody, care, and dscharge of such goods sha be sub|ect to the responsbtes
and abtes and entted to the rghts and mmuntes herenafter set forth.

RESPONSIBILITIES AND LIABILITIES

Sec. 3. (1) The carrer sha be bound before and at the begnnng of the voyage
to exercse due dgence to -
(a) Make the shp seaworthy;
(b) Propery man,equp, and suppy the shp;
(c) Make the hods, refrgeratng and coong chambers, and a other parts of the
shp n whch goods are carred, ft and safe for ther recepton, carrage, and
preservaton.
(2) The carrer sha propery and carefuy oad, hande, stow, carry, keep, care
for,and dscharge the goods carred.
(3) After recevng the goods nto hs carrer, or the master or agent of the carrer,
sha, on demand of the shpper, ssue to the shpper a b of adng showng
among other thngs -
(a) The oadng marks necessary for dentfcaton of the goods as the same are
furnshed n wrtng by the shpper before the oadng of such goods starts,
provded such marksare stamped or otherwse shown ceary upon the goods f
uncovered,n such a manner as shoud ordnary reman egbe unt the end of
the voyage.
(b) Ether the number of packages or peces, or the quantty or weght, as the
casemay be, as furnshed n wrtng by the shpper.
(c) The apparent order and condtons of the goods: Provded, that no carrer,
master, or agent of the carrer, sha be bound to state or show n the b of adng
any marks, number, quantty, or weght whch he has reasonabe ground for
suspectng not accuratey to represent the good actuay receved or whch he has
had no reasonabe means of checkng.
(4) Such a b of adng sha be prma face evdence of the recept by the carrer
of the goods as theren descrbed n accordance wth paragraphs (3) (a), (b), and
(c), of ths secton: (The rest of the provson s not appcabe to the Phppnes).
(5) The shpper sha be deemed to have guaranteed to the carrer the accuracy
at the tme of shpment of the marks, number, quantty, and weght, as furnshed
by hm; and the shpper sha ndemnfy the carrer aganst a oss, damages, and
expenses arsng or resutng from naccuraces n such partcuars. The rght of
the carrer to such ndemnty sha n no way mt hs responsbty and abty
under the contract of carrage to any person other than the shpper.
(6) Uness notce or oss or damage and the genera nature of such oss or
damage by gven n wrtng to the carrer or hs agent at the port of dscharge or
at the tme of the remova of the goods nto the custody of the person entted to
devery thereof under the contract of carrage, such remova sha be prma face
evdence of the devery by the carrer of the goods as descrbed n the b of
adng. If the oss or damage s not apparent, the notce must be gven wthn
three days of the devery.
Sad notce of oss or damage may be endorsed upon the recept for the goods
gven by the person takng devery thereof.
The notce n wrtng need not be gven f the state of the goods has at the tme of
ther recept been the sub|ect of |ont survey or nspecton.
In any event the carrer and the shp sha be dscharged from a abty n
respect of oss or damage uness sut s brought wthn one year after devery of
the goods or the date when the goods shoud have been devered: Provded, that,
f a notce of oss or damage, ether apparent or conceaed, s not gven as
provded for n ths secton, that fact sha not affect or pre|udce the rght of the
shpper to brng sut wthn one year after the devery of the goods or the date
when the goods shoud have been devered.
In the case of any actua or apprehended oss or damage, the carrer and the
recever sha gve a reasonabe factes to each other for nspectng and tayng
the goods.
(7) After the goods are oaded the b of adng to be ssued by the carrer,
master, or agent of the carrer to the shpper sha f the shpper so demands, be a
"shpped" b of adng: Provded, that f the shpper sha have prevousy taken up
any document of tte to such goods, he sha surrender the same as aganst the
ssue of the "shpped" b of adng, but at the opton of the carrer such document
of tte may be noted at the port of shpment by the carrer, master, or agent wth
the name or names of the shp or shps upon whch the goods have been shpped
and the date or dates of shpment, and when so noted the same sha for the
purpose of ths secton be deemed to consttute a "shpped" b of adng.
(8) Any cause, covenant, or agreement n a contract of carrage reevng the
carrer of the shp from abty for oss or damage to or n connecton wth the
goods, arsng from neggence, faut, or faure n the dutes and obgatons
provde n ths secton or essenng such abty otherwse than as provded n ths
Act, sha be nu and vod and of no effect. A beneft of nsurance n favor of the
carrer, or smar cause, sha be deemed to be a cause reevng the carrer from
abty.

RIGHTS AND IMMUNITIES

Sec. 4. (1) Nether the carrer nor the shp sha be abe for oss or damage
arsng or resutng from unseaworthness uness caused by want of due dgence
on the part of the carrer to make the shp seaworthy and to secure that the shp
s propery manned, equpped, and supped, and to make the hods, refrgeratng
and coong chambers, and a other parts of the shp n whch goods are carred ft
and safe for ther recepton, carrage, and preservaton, n accordance wth the
provsons of paragraph (1) of Secton (3). Whenever oss or damage has resuted
from unseaworthness, the burden of provng the exercse of due dgence sha be
on the carrer or other person camng exempton under ths secton.
(2) Nether the carrer nor the shp sha be responsbe for oss or damage arsng
or resutng from -
(a) Act, negect, or defaut of the master, marner, pot, or the servants of the
carrer n the navgaton or n the management of the shp;
(b) Fre, uness caused by the actua faut or prvty of the carrer;
(c) Pers, dangers, and accdents of the sea or other navgabe water;
(d) Act of God;
(e) Act of war;
(f) Act of pubc enemes;
(g) Arrest or restrant of prnces, ruers, or peope, or sezure under ega process;
(h) Ouarantne restrctons;
() Act or omsson of the shpper or owner of the goods, hs agent or
representatve;
(|) Strkes or ockouts or stoppage or restrant of abor from whatever cause,
whether parta or genera: Provded, that nothng heren contaned sha be
construed to reeve a carrer from responsbty for the carrer's own acts;
(k) Rotsand cv commotons;
() Savng or attemptng to save fe or property at sea;
(m) Wastage n buk or weght or any other oss or damage arsng from nherent
defect, quaty, or vce of the goods;
(n) Insuffcency or packng;
(o) Insuffcency or nadequacy of marks;
(p) Latent defects not dscoverabe by due dgence; and
(q) Any other cause arsng wthout the actua faut and prvty of the carrer and
wthout the faut or negect of the agents or servants of the carrer, but the
burden of proof sha be on the person camng the beneft of ths excepton to
show that nether the actua faut or prvty of the carrer nor the faut or negect
of the agents or servants of the carrer contrbuted to the oss or damage.
(3) The shpper sha not be responsbe for oss or damage sustaned by the
carrer or the shp arsng or resutng from any cause wthout the act, or negect
of the shpper, hs agents, or hs servants.
(4) Any devaton n savng or attemptng to save fe or property at sea, or any
reasonabe devaton sha not be deemed to be an nfrngement or breach or ths
Act or of the contract of carrage, and carrer sha not be abe for any oss or
damage resutng therefrom: Provded, however, that f the devaton s for the
purpose of oadng or unoadng cargo or passengers t sha, prma face, be
regarded as unreasonabe.
(5) Nether the carrer nor the shp sha n any event be or become abe for any
oss or damage to or n connecton wth the transportaton of goods n an amount
exceedng $500 per package of awfu money of the Unted States, or n case of
goods not shpped n packages, per customary freght unt, or the equvaent of
that sum n other currency, uness the nature and vaue of such goods have been
decared by the shpper before shpment and nserted n the b of adng. Ths
decaraton, f emboded n the b of adng, sha be prma face evdence, but
sha not be concusve on the carrer.
By agreement between the carrer, master or agent of the carrer, and the shpper
another maxmum amount than that mentoned n ths paragraph may be fxed:
Provded, that such maxmum sha not be ess than the fgure above named. In no
event sha the carrer be abe for more than the amount of damage actuay
sustaned.
Nether the carrer nor the shp sha be responsbe n any event for oss damage
to or n connecton wth the transportaton of the goods f the nature or vaue
thereof has been knowngy and frauduenty msstated by the shpper n the b of
adng.
(6) Goods of an nfammabe, exposve, or dangerous nature to the shpment
whereof, the carrer, master or agent of the carrer, has not consented wth
knowedge of ther nature and character, may at any tme before dscharge be
anded at any pace or destroyed or rendered nnocuous by the carrer wthout
compensaton, and the shpper of such goods sha be abe for a damages and
expenses drecty or ndrecty arsng out of or resutng from such shpment. If
any such goods shpped wth such knowedge and consent sha become a danger
to the shp or cargo, they may n ke manner be anded at any pace, or destroyed
or rendered nnocuous by the carrer wthout abty on the part of the carrer
except to genera average f any.

SURRENDER OF RIGHTS AND IMMUNITIES AND INCREASE OF RESPONSIBILITIES
AND LIABILITIES

Sec. 5. A carrer sha be at berty to surrender n whoe or n part a or any of
hs rghts and mmuntes or to ncrease any of hs responsbtes and abtes
under ths Act, provded such surrender or ncrease sha be emboded n the b of
adng ssued to the shpper.
The provsons of ths Act sha not be appcabe to charter partes; but f bs of
adng are ssued n the case of a shp under a charter party, they sha compy
wth the terms of ths Act. Nothng n ths Act sha be hed to prevent the nserton
n a b of adng of any awfu provsons regardng genera average.

SPECIAL CONDITIONS

Sec. 6. Notwthstandng the provsons of the precedng secton, a carrer, master
or agent of the carrer, and a shpper sha, n regard to any partcuar goods be at
berty to enter nto any agreement n any terms as to the responsbty and
abty of the carrer for such goods, and as to the rghts and mmuntes of the
carrer n respect to such goods, or hs obgaton to seaworthness, (so far as the
stpuaton regardng seaworthness s contrary to pubc pocy), or the care or
dgence of hs servants or agents n regard to the oadng, handng, stowage,
carrage, custody, care and dscharge of the goods carred by sea; provded, that
n ths case no b of adng has been or sha be ssued and that the terms agreed
sha be a non-negotabe document and sha be marked as such.
Any agreement so entered nto sha have fu ega effect: Provded, that ths
secton sha not appy to ordnary commerca shpments made n the ordnary
course of trade but ony to other shpments where the character or condton of
the property to be carred or the crcumstances, terms and condtons under whch
the carrage s to be performed are such as reasonaby to |ustfy a speca
agreement.
Sec. 7. Nothng contaned n ths Act sha prevent a carrer or a shpper from
enterng nto any agreement, stpuaton, condton, reservaton, or exempton as
to the responsbty and abty of the carrer or the shp for the oss or damage
to or n connecton wth the custody and care and handng of goods pror to the
oadng on and subsequent to the dscharge from the shp on whch the goods are
carred by sea.
Sec. 8. The provsons of ths Act sha not affect the rghts and obgatons of the
carrer under the provsons of the Shppng Act, 1916, or under the provsons of
Sectons 4281 to 4292, ncusve, of the Revsed Statutes of the Unted States, or
of any amendments thereto, or under the provsons of any other enactment for
the tme beng n force reatng to the mtaton of the abty of the owners of
seagong vesses.

TITLE II

Sec. 9. Nothng contaned n ths Act sha be construed as permttng a common
carrer by water to dscrmnate between competng shppers smary paced n
tme and crcumstances, ether (a) wth respect to ther rght to demand and
receve bs of adng sub|ect to the provsons of ths Act; or (b) when ssung such
bs of adng ether n the surrender of any of the carrer's rghts and mmuntes
or n the ncrease of any of the carrer's responsbtes and abtes pursuant to
Secton 5, Tte I, of ths Act; (c) n any other way prohbted by the Shppng Act,
1916, as amended.
Sec. 10. (Not appcabe to the Phppnes.)
Sec. 11. When under the custom of any trade the weght of any buk cargo
nserted n the b of adng s a weght ascertaned or accepted by a thrd party
other than the carrer or the shpper and the fact that the weght as ascertaned or
accepted s stated n the b of adng, then notwthstandng anythng n ths Act,
the b of adng sha not be deemed to be prma face evdence aganst the
carrer of the recept of goods of the weght so nserted n the bs of adng, and
the accuracy thereof at the tme of shpment sha not be deemed to have been
guaranteed by the shpper.
Sec. 12. (Not appcabe to the Phppnes.)
Sec. 13. Ths Act sha appy to a contracts for carrage of goods by seas to or
from ports of the Unted States n foregn trade. As used n ths Act the term
"Unted States" ncudes ts dstrcts, terrtores, and possessons: Provded,
however, that the Phppne Legsature may by aw excude ts appcaton to
transportaton to or from ports of the Phppne Isands. The term "foregn trade"
means the transportaton of goods between the ports of the Unted States and
ports of foregn countres. Nothng n ths Act sha be hed to appy to contracts
for carrage of goods by sea between any port of the Unted States or ts
possessons and any other port of the Unted States or ts possessons: Provded,
however, that any b of adng or smar document of the tte whch s evdence
of a contract for the carrage of goods by sea between such ports, contanng an
express statement that t sha be sub|ect to the provsons of ths Act; sha be
sub|ected hereto as fuy as f sub|ect hereto by the express provsons of ths Act:
Provded, further, that every b of adng or smar document of tte whch s
evdence of a contract for the carrage of goods by sea from ports of the Unted
States n foregn trade, sha contan a statement that t sha have effect sub|ect
to the provsons of ths Act.
Sec. 14. Upon the certfcaton of the Secretary of Commerce that the foregn
commerce of the Unted States n ts competton wth that of foregn natons s
pre|udced by the provsons, or any of them, of the Tte I of ths Act, or by the
aws of any foregn country or countres reatng to the carrage of goods by sea,
the Presdent of the Unted States may, from tme to tme by procamaton,
suspend any or a provsons of Tte I of ths Act for such perods of tme or
ndefntey as may be desgnated n the procamaton. The Presdent may at any
tme rescnd such suspenson of Tte I hereof, and any provsons thereof whch
may have been suspended sha thereby be renstated and agan appy to
contracts thereafter made for carrage of goods by sea. Any procamaton of
suspenson or rescsson of any such suspenson sha take effect on the date
named theren, whch date sha be not ess than ten days from the ssue of the
procamaton.
Any contract for the carrage of goods by sea, sub|ect to the provsons of ths Act,
effectve durng any perod when Tte I hereof, or any part thereof, s suspended,
sha be sub|ect to a provsons of aw now or hereafter appcabe to that part of
Tte I whch may have thus been suspended.
Sec. 15. Ths Act sha take effect nnety days after the date of ts approva; but
nothng n ths Act sha appy durng a perod not to exceed one year foowng ts
approva to any contract for the carrage of goods by sea, made before the date
on whch ths Act s approved nor to any b of adng or smar document of tte
ssued, whether before or after such date of approva n pursuance of any such
contract as aforesad.
Sec. 16. Ths Act may be cted as the "Carrage of Goods by Sea Act."
Approved: Apr 16, 1936