I BILL OF LADING & OTHER FORMALITIES

A. Definition of a Bill of Lading

- A bill of lading is a written acknowledgement, signed by the master of a vessel or

other authorized agent of the carrier, that he has recieved the described goods from
the shipper, to be transported on the expressed terms, to the described place of
destination, and to be delivered there to the designated consignee.

B. Natureof Bill of Lading (Art. 350,353,707-718 Code of Commerce; Sec. 3-4 COGSA;
Art. 1508-1510,1513,1515,1745 NCC)

A bill of lading operates both:

1. As a reciept for the goods shipped; recites the date and place of shipment,
describes the goods as to quantity, weight, dimensions, identification marks and
condition, quality and value.

2. As a contract to transport and deliver what is stipulated; it names the contracting

partes, fixes the route,destination and freight rates or charges, stipulates the
rights and obligations assumed by the parties.

3. A document of title that makes it a symbol of the goods

ARTICLE 350.

The shipper as well as the carrier of merchandise or goods may mutually demand that a
bill of lading be made, stating:

1. The name, surname and residence of the shipper.

2. The name, surname and residence of the carrier.

3. The name, surname and residence of the person to whom or to whose order the
goods are to be sent or whether they are to be delivered to the bearer of said bill.

4. The description of the goods, with a statement of their kind, of their weight,
and of the external marks or signs of the packages in which they are contained.

5. The cost of transportation.

6. The date on which shipment is made.

7. The place of delivery to the carrier.

8. The place and the time at which delivery to the consignee shall be made.

9. The indemnity to be paid by the carrier in case of delay, if there should be any
agreement on this matter.

ARTICLE 351. COC

In transportation made by railroads or other enterprises subject to regulation rate and time schedules, it
shall be sufficient for the bills of lading or the declaration of shipment furnished by the shipper to
refer, with respect to the cost, time and special conditions of the carriage, to the schedules and
regulations the application of which he requests; and if the shipper does not determine the schedule, the
carrier must apply the rate of those which appear to be the lowest, with the conditions inherent thereto,
always including a statement or reference to in the bill of lading which he delivers to the shipper.

ARTICLE 352. COC

The bills of lading, or tickets in cases of transportation of passengers, may be diverse, some for persons
and others for baggage; but all of them shall bear the name of the carrier, the date of shipment, the
points of departure and arrival, the cost, and, with respect to the baggage, the number and weight of the
packages, with such other manifestations which may be considered necessary for their easy identification.

ARTICLE 353. COC

The legal evidence of the contract between the shipper and the carrier shall be the bills of lading, by
the contents of which the disputes which may arise regarding their execution and performance shall be
decided, no exceptions being admissible other than those of falsity and material error in the drafting.
After the contract has been complied with, the bill of lading which the carrier has issued shall be
returned to him, and by virtue of the exchange of this title with the thing transported, the respective
obligations and actions shall be considered cancelled, unless in the same act the claim which the parties
may wish to reserve be reduced to writing, with the exception of that provided for in Article 366.
In case the consignee, upon receiving the goods, cannot return the bill of lading subscribed by the
carrier, because of its loss or of any other cause, he must give the latter a receipt for the goods
delivered, this receipt producing the same effects as the return of the bill of lading.

Sec. 3. COGSA

(1) The carrier shall be bound before and at the beginning of the voyage to exercise due diligence to —

(a) Make the ship seaworthy;

(b) Properly man,equip, and supply the ship;

(c) Make the holds, refrigerating and cooling chambers, and all other parts of the ship in which goods
are carried, fit and safe for their reception, carriage, and preservation.

(2) The carrier shall properly and carefully load, handle, stow, carry, keep, care for,and discharge the
goods carried.

(3) After receiving the goods into his carrier, or the master or agent of the carrier, shall, on demand
of the shipper, issue to the shipper a bill of lading showing among other things — chanrobles virtual law
library

(a) The loading marks necessary for identification of the goods as the same are furnished in writing by
the shipper before the loading of such goods starts, provided such marksare stamped or otherwise shown
clearly upon the goods if uncovered,in such a manner as should ordinarily remain legible until the end of
the voyage. chanrobles virtual law library

(b) Either the number of packages or pieces, or the quantity or weight, as the casemay be, as furnished
in writing by the shipper.

(c) The apparent order and conditions of the goods: Provided, that no carrier, master, or agent of the
carrier, shall be bound to state or show in the bill of lading any marks, number, quantity, or weight
which he has reasonable ground for suspecting not accurately to represent the good actually received or
which he has had no reasonable means of checking. chanrobles virtual law library

(4) Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods as
therein described in accordance with paragraphs (3) (a), (b), and (c), of this section: (The rest of the
provision is not applicable to the Philippines).

(5) The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of shipment of
the marks, number, quantity, and weight, as furnished by him; and the shipper shall indemnify the carrier
against all loss, damages, and expenses arising or resulting from inaccuracies in such particulars. The
right of the carrier to such indemnity shall in no way limit his responsibility and liability under the
contract of carriage to any person other than the shipper. chanrobles virtual law library

(6) Unless notice or loss or damage and the general nature of such loss or damage by given in writing to
the carrier or his agent at the port of discharge or at the time of the removal of the goods into the
custody of the person entitled to delivery thereof under the contract of carriage, such removal shall be
prima facie evidence of the delivery by the carrier of the goods as described in the bill of lading. If
the loss or damage is not apparent, the notice must be given within three days of the delivery. chanrobles
virtual law library

Said notice of loss or damage may be endorsed upon the receipt for the goods given by the person taking
delivery thereof.

The notice in writing need not be given if the state of the goods has at the time of their receipt been
the subject of joint survey or inspection.

In any event the carrier and the ship shall be discharged from all liability in respect of loss or damage
unless suit is brought within one year after delivery of the goods or the date when the goods should have
been delivered: Provided, that, if a notice of loss or damage, either apparent or concealed, is not given
as provided for in this section, that fact shall not affect or prejudice the right of the shipper to bring
suit within one year after the delivery of the goods or the date when the goods should have been
delivered.
In the case of any actual or apprehended loss or damage, the carrier and the receiver shall give all
reasonable facilities to each other for inspecting and tallying the goods.chanrobles virtual law library

(7) After the goods are loaded the bill of lading to be issued by the carrier, master, or agent of the
carrier to the shipper shall if the shipper so demands, be a "shipped" bill of lading: Provided, that if
the shipper shall have previously taken up any document of title to such goods, he shall surrender the
same as against the issue of the "shipped" bill of lading, but at the option of the carrier such document
of title may be noted at the port of shipment by the carrier, master, or agent with the name or names of
the ship or ships upon which the goods have been shipped and the date or dates of shipment, and when so
noted the same shall for the purpose of this section be deemed to constitute a "shipped" bill of lading.

(8) Any clause, covenant, or agreement in a contract of carriage relieving the carrier of the ship from
liability for loss or damage to or in connection with the goods, arising from negligence, fault, or
failure in the duties and obligations provide in this section or lessening such liability otherwise than
as provided in this Act, shall be null and void and of no effect. A benefit of insurance in favor of the
carrier, or similar clause, shall be deemed to be a clause relieving the carrier from liability.

Sec. 4. COGSA

(1) Neither the carrier nor the ship shall be liable for loss or damage arising or resulting from
unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship
seaworthy and to secure that the ship is properly manned, equipped, and supplied, and to make the holds,
refrigerating and cooling chambers, and all other parts of the ship in which goods are carried fit and
safe for their reception, carriage, and preservation, in accordance with the provisions of paragraph (1)
of Section (3). Whenever loss or damage has resulted from unseaworthiness, the burden of proving the
exercise of due diligence shall be on the carrier or other person claiming exemption under this
section. chanrobles virtual law library

(2) Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from —

(a) Act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the
navigation or in the management of the ship;

(b) Fire, unless caused by the actual fault or privity of the carrier; chanrobles virtual law library

(c) Perils, dangers, and accidents of the sea or other navigable water; chanrobles virtual law library

(d) Act of God; chanrobles virtual law library

(e) Act of war; chanrobles virtual law library

(f) Act of public enemies;

(g) Arrest or restraint of princes, rulers, or people, or seizure under legal process;

(h) Quarantine restrictions; chanrobles virtual law library

(i) Act or omission of the shipper or owner of the goods, his agent or representative;chanrobles virtual
law library

(j) Strikes or lockouts or stoppage or restraint of labor from whatever cause, whether partial or
general: Provided, that nothing herein contained shall be construed to relieve a carrier from
responsibility for the carrier's own acts; chanrobles virtual law library

(k) Riotsand civil commotions; chanrobles virtual law library

(l) Saving or attempting to save life or property at sea; chanrobles virtual law library

(m) Wastage in bulk or weight or any other loss or damage arising from inherent defect, quality, or vice
of the goods;

(n) Insufficiency or packing;

(o) Insufficiency or inadequacy of marks; chanrobles virtual law library

(p) Latent defects not discoverable by due diligence; and chanrobles virtual law library

(q) Any other cause arising without the actual fault and privity of the carrier and without the fault or
neglect of the agents or servants of the carrier, but the burden of proof shall be on the person claiming
the benefit of this exception to show that neither the actual fault or privity of the carrier nor the
fault or neglect of the agents or servants of the carrier contributed to the loss or damage.

(3) The shipper shall not be responsible for loss or damage sustained by the carrier or the ship arising
or resulting from any cause without the act, or neglect of the shipper, his agents, or his
servants. chanrobles virtual law library

(4) Any deviation in saving or attempting to save life or property at sea, or any reasonable deviation
shall not be deemed to be an infringement or breach or this Act or of the contract of carriage, and
carrier shall not be liable for any loss or damage resulting therefrom: Provided, however, that if the
deviation is for the purpose of loading or unloading cargo or passengers it shall, prima facie, be
regarded as unreasonable. chanrobles virtual law library

(5) Neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or
in connection with the transportation of goods in an amount exceeding $500 per package of lawful money of
the United States, or in case of goods not shipped in packages, per customary freight unit, or the
equivalent of that sum in other currency, unless the nature and value of such goods have been declared by
the shipper before shipment and inserted in the bill of lading. This declaration, if embodied in the bill
of lading, shall be prima facie evidence, but shall not be conclusive on the carrier. chanrobles virtual
law library

By agreement between the carrier, master or agent of the carrier, and the shipper another maximum amount
than that mentioned in this paragraph may be fixed: Provided, that such maximum shall not be less than the
figure above named. In no event shall the carrier be liable for more than the amount of damage actually
sustained.chanrobles virtual law library

Neither the carrier nor the ship shall be responsible in any event for loss damage to or in connection
with the transportation of the goods if the nature or value thereof has been knowingly and fraudulently
misstated by the shipper in the bill of lading. chanrobles virtual law library

(6) Goods of an inflammable, explosive, or dangerous nature to the shipment whereof, the carrier, master
or agent of the carrier, has not consented with knowledge of their nature and character, may at any time
before discharge be landed at any place or destroyed or rendered innocuous by the carrier without
compensation, and the shipper of such goods shall be liable for all damages and expenses directly or
indirectly arising out of or resulting from such shipment. If any such goods shipped with such knowledge
and consent shall become a danger to the ship or cargo, they may in like manner be landed at any place, or
destroyed or rendered innocuous by the carrier without liability on the part of the carrier except to
general average if any. c

1508-

1510,1513,1515,1745 NCC

Art. 1508. A negotiable document of title may be negotiated by delivery:

(1) Where by the terms of the document the carrier, warehouseman or other bailee issuing the same
undertakes to deliver the goods to the bearer; or

(2) Where by the terms of the document the carrier, warehouseman or other bailee issuing the same
undertakes to deliver the goods to the order of a specifi ed person and such person or a subsequent
indorsee of the document has indorsed it in blank or to the bearer.

Where by the terms of a negotiable document of title the goods are deliverable to bearer or where a
negotiable document of title has been indorsed in blank or to bearer, any holder may indorse the same to
himself or to any specifi ed person, and in such case the document shall thereafter be negotiated only by
the endorsement of such indorsee.

Art. 1509. A negotiable document of title may be negotiated by the indorsement of the person to whose
order the goods are by the terms of the document deliverable. Such indorsement may be in blank, to bearer
or to a specifi ed person. If indorsed to a specifi ed person, it may be again negotiated by the
indorsement of such person in blank, to bearer or to another specifi ed person. Subsequent negotiations
may be made in like manner.

Art. 1510. If a document of title which contains an undertaking by a carrier, warehouseman or other bailee
to deliver the goods to bearer, to a specifi ed person or order of a specifi ed person or which contains
words of like import, has placed upon it the words “not negotiable,” “non-negotiable” or the like, such
document may nevertheless be negotiated by the holder and is a negotiable document of title within the
meaning of this Title. But nothing in this Title contained shall be construed as limiting or defi ning the
effect upon the obligations of the carrier, warehouse man, or other bailee issuing a document of title or
placing thereon the words “not negotiable,” “non-negotiable,” or the like.

Art. 1513. A person to whom a negotiable document of title has been duly negotiated acquires thereby:

(1) Such title to the goods as the person negotiating the document to him had or had ability to convey to
a purchaser in good faith for value and also such title to the goods as the person to whose order the
goods were to be delivered by the terms of the document had or had ability to convey to a purchaser in
good faith for value; and

(2) The direct obligation of the bailee issuing the document to hold possession of the goods for him
according to the terms of the document as fully as if such bailee had contracted directly with him.

Art. 1515. Where a negotiable document of title is transferred for value by delivery, and the indorsement
of the transferor is essential for negotiation, the transferee acquires a right against the transferor to
compel him to indorse the document unless a contrary intention appears. The negotiation shall take effect
as of the time when the indorsement is actually made.

Art. 1745

C. Three-fold Character of a Bill of Lading

D. Parties in the Bill of Lading

The shipper and the carrier. However, a consignee altough not a signatory to the
contract of carriage between the shipper and carrier, becomes a party to the bill of
lading by reason of:

1. The relationship of agency between consignee and the shipper

2. The unequivocal acceptance of the bill of lading delivered to the consignee, w/

full knowledge of its contents

3. Availment of the stipulation pour autrui

E. Period of Delivery of Goods

F. Instances when the consignee may refuse to receive goods (Art. 365,371,687 of Code of
Commerce)

ARTICLE 365.

If, in consequence of the damage, the goods are rendered useless for sale and consumption
for the purposes for which they are properly destined, the consignee shall not be bound to
receive them, and he may have them in the hands of the carrier, demanding of the latter
their value at the current price on that day.
If among the damaged goods there should be some pieces in good condition and without any
defect, the foregoing provision shall be applicable with respect to those damaged and the
consignee shall receive those which are sound, this segregation to be made by distinct and
separate pieces and without dividing a single object, unless the consignee proves the
impossibility of conveniently making use of them in this form.
The same rule shall be applied to merchandise in bales or packages, separating those parcels
which appear sound.
ARTICLE 371.

In case of delay through the fault of the carrier, referred to in the preceding articles,
the consignee may leave the goods transported in the hands of the former, advising him
thereof in writing before their arrival at the point of destination.
When this abandonment takes place, the carrier shall pay the full value of the goods as if
they had been lost or mislaid.
If the abandonment is not made, the indemnification for losses and damages by reason of the
delay cannot exceed the current price which the goods transported would have had on the day
and at the place in which they should have been delivered; this same rule is to be observed
in all other cases in which this indemnity may be due.

Article 687

The charterers and shippers cannot abandon merchandise damaged on account of its own
inherent defect or fortuituos event for the payment of the freightage and other expenses.
The abandonement shall be proper however if the cargo should consist of liquids and should
they have leaked out, there remaining in the containers not more than one quarter of their
contents.

G. Claim for damage and how made

H. Prescriptive period for filing action.

II. CARRIAGE OF GOODS BY SEA ACT

A. Application in the Philippines

Section 1 of COGSA:

Xx.. to be made applicable to all contracts for the carriage of goods by sea to and
from PH ports in foreign trade..xx

B. When COGSA provisions applicable

When the new civil code took effect, it became the primary law on carriage of goods by
sea. Among its provisions on common carriers is art. 1753: “the law which the goods
are to be transported shall govern the liability of the common carrier for their
LDD(loss, destruct,deterioration). Thus the NCC is the primary law on goods being
transported from a foreign port to PH. Nevertheless, the COGSA remains to be a
suppletory law for such type of transportation.

C. Notice Requirement

D. Period to Give Notice

E. Absence of notice of claim

(6)Unless notice or loss or damage and the general nature of such loss or damage by
given in writing to the carrier or his agent at the port of discharge or at the time
of the removal of the goods into the custody of the person entitled to delivery
thereof under the contract of carriage, such removal shall be prima facie evidence of
the delivery by the carrier of the goods as described in the bill of lading. If the
loss or damage is not apparent, the notice must be given within three days of the
delivery. Said notice of loss or damage may be endorsed upon the receipt for the goods
given by the person taking delivery thereof.

The notice in writing need not be given if the state of the goods has at the time of
their receipt been the subject of joint survey or inspection.

In any event the carrier and the
respect of loss or damage unless
goods or the date when the goods
notice of loss or damage, either
in this section, that fact shall
bring suit within one year after
should have been delivered.
ship shall be discharged from all liability in
suit is brought within one year after delivery of the
should have been delivered: Provided, that, if a
apparent or concealed, is not given as provided for
not affect or prejudice the right of the shipper to
the delivery of the goods or the date when the goods

F. Prescriptive period for filing an action; Extension

G. Failure to bring action w/n Prescriptive period

H. Limitation liability

Sec. 4. (1) Neither the carrier nor the ship shall be liable for loss or damage
arising or resulting from unseaworthiness unless caused by want of due diligence on
the part of the carrier to make the ship seaworthy and to secure that the ship is
properly manned, equipped, and supplied, and to make the holds, refrigerating and
cooling chambers, and all other parts of the ship in which goods are carried fit and
safe for their reception, carriage, and preservation, in accordance with the
provisions of paragraph (1) of Section (3). Whenever loss or damage has resulted from
unseaworthiness, the burden of proving the exercise of due diligence shall be on the
carrier or other person claiming exemption under this section.

(2) Neither the carrier nor the ship shall be responsible for loss or damage arising
or resulting from —

(a) Act, neglect, or default of the master, mariner, pilot, or the servants of the
carrier in the navigation or in the management of the ship;

(b) Fire, unless caused by the actual fault or privity of the carrier;

(c) Perils, dangers, and accidents of the sea or other navigable water; chanrobles
virtual law library

(d) Act of God;

(e) Act of war;

(f) Act of public enemies;

(g) Arrest or restraint of princes, rulers, or people, or seizure under legal

process;

(h) Quarantine restrictions;

(i) Act or omission of the shipper or owner of the goods, his agent or
representative;

(j) Strikes or lockouts or stoppage or restraint of labor from whatever cause,

whether partial or general: Provided, that nothing herein contained shall be construed
to relieve a carrier from responsibility for the carrier's own acts;

(k) Riotsand civil commotions;

(l) Saving or attempting to save life or property at sea;

(m) Wastage in bulk or weight or any other loss or damage arising from inherent
defect, quality, or vice of the goods;

(n) Insufficiency or packing;

(o) Insufficiency or inadequacy of marks;

(p) Latent defects not discoverable by due diligence; and

(q) Any other cause arising without the actual fault and privity of the carrier and
without the fault or neglect of the agents or servants of the carrier, but the burden
of proof shall be on the person claiming the benefit of this exception to show that
neither the actual fault or privity of the carrier nor the fault or neglect of the
agents or servants of the carrier contributed to the loss or damage.

I. Package limitation rule

(5)Neither the carrier nor the ship shall in any event be or become liable for any
loss or damage to or in connection with the transportation of goods in an amount
exceeding $500 per package of lawful money of the United States, or in case of goods
not shipped in packages, per customary freight unit, or the equivalent of that sum in
other currency, unless the nature and value of such goods have been declared by the
shipper before shipment and inserted in the bill of lading. This declaration, if
embodied in the bill of lading, shall be prima facie evidence, but shall not be
conclusive on the carrier.

J. Doctrine of Inscrutable Fault

III. WARSAW CONVENTION

A. Application in the PH

The warsaw convention to which PH is a party and which has the force and effect of law
in this country applies to all international carriage of persons, baggage, or cargo
performed by aircraft gratuitously or for hire.

The carrier is liable in international air transportation in the ff instances:

Article 17

The carrier is liable for damage sustained in the event of the death or wounding of a
passenger or any other bodily injury suffered by a passenger, if the accident which
caused the damage so sustained took place on board the aircraft or in the course of
any of the operations of embarking or disembarking.

Article 18
1. The carrier is liable for damage sustained in the event of the destruction or loss
of, or damage to, any registered baggage, if the occurrence which caused the damage so
sustained took place during the carriage by air.

4. The carriage by air within the meaning of the preceding paragraphs of this Article
comprises the period during which the baggage or cargo is in the charge of the
carrier, whether in an airport or on board an aircraft, or, in the case of a landing
outside an airport, in any place whatsoever.

5. The period of the carriage by air does not extend to any carriage by land, by sea
or by river performed outside an airport. If, however, such carriage takes place in
the performance of a contract for carriage by air, for the purpose of loading,
delivery or transhipment, any damage is presumed, subject to proof to the contrary, to
have been the result of an event which took place during the carriage by air.

Article 19 The carrier is liable for damage occasioned by delay in the

transportation by air of passengers, baggage, or cargo.

B. Objective of the convention and coverage

it seeks to accommodate or balance the interests of passengers seeking recovery for

personal injuries and the interests of air carriers seeking to limit potential
liability.

It employs a scheme of strict liability favoring passengers and imposing damage caps
to benefit air carriers. Its cardinal purpose is to provide uniformity of rules
governing claims arising from international air travel; thus it precludes a passenger
from maintaining an action for personal injury damages under local law when his claim
does not satisfy the conditions of liability under this convention.

C. Limitation liability

Passengers, checked in baggage, hand carried baggage

Passengers = 125,000 francs

Checked bagged or goods = 250 francs/kilogram, unless declaration of value

Hand carried baggage = 5000 francs per passenger

D. Liability for misconduct

E. Notice Requirement

Article 26

1. Receipt by the person entitled to the delivery of baggage or cargo without

complaint is prima facie evidence that the same have been delivered in good condition
and in accordance with the document of carriage.
2. In the case of damage, the person entitled to delivery must complain to the carrier
forthwith after the discovery of the damage, and, at the latest, within 3 days from
the date of receipt in the case of baggage and

7 days from the date of receipt in the case of goods.

In the case of delay the complaint must be made at the latest within 14 days from the
date on which the baggage or cargo have been placed at his disposal.

3. Every complaint must be made in writing upon the document of carriage or by

separate notice in writing dispatched within the times aforesaid.

4. Failing complaint within the times aforesaid, no action shall lie against the
carrier, save in the case of fraud on his part.

F. Prescriptive Period; exception

Article 29

1. The right to damages shall be extinguished if an action is not brought within 2

(two) years, reckoned from the date of arrival at the destination, or from the date on
which the aircraft ought to have arrived, or from the date on which the carriage
stopped. 2. The method of calculating the period of limitation shall be determined by
the law of the court seised of the case.

G. Bumping-off of passengers

H. Over-booking