GOVERNING LAWS:

1. Articles 1732-1763 of New Civil Code

SECTION 4. - Common Carriers (n)
SUBSECTION 1. - General Provisions

Art. 1732. Common carriers are persons, corporations, firms or associations engaged in the
business of carrying or transporting passengers or goods or both, by land, water, or air, for
compensation, offering their services to the public.

Art. 1733. Common carriers, from the nature of their business and for reasons of public policy, are
bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the
passengers transported by them, according to all the circumstances of each case.

Such extraordinary diligence in the vigilance over the goods is further expressed in Articles 1734,
1735, and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of the
passengers is further set forth in Articles 1755 and 1756.

SUBSECTION 2. - Vigilance Over Goods

Art. 1734. Common carriers are responsible for the loss, destruction, or deterioration of the
goods, unless the same is due to any of the following causes only:

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;

(2) Act of the public enemy in war, whether international or civil;

(3) Act of omission of the shipper or owner of the goods;

(4) The character of the goods or defects in the packing or in the containers;

(5) Order or act of competent public authority.

Art. 1735. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and 5 of the preceding
article, if the goods are lost, destroyed or deteriorated, common carriers are presumed to have
been at fault or to have acted negligently, unless they prove that they observed extraordinary
diligence as required in Article 1733.

Art. 1736. The extraordinary responsibility of the common carrier lasts from the time the goods
are unconditionally placed in the possession of, and received by the carrier for transportation until
the same are delivered, actually or constructively, by the carrier to the consignee, or to the
person who has a right to receive them, without prejudice to the provisions of Article 1738.

Art. 1737. The common carrier's duty to observe extraordinary diligence over the goods remains in
full force and effect even when they are temporarily unloaded or stored in transit, unless the
shipper or owner has made use of the right of stoppage in transitu.

Art. 1738. The extraordinary liability of the common carrier continues to be operative even during
the time the goods are stored in a warehouse of the carrier at the place of destination, until the
consignee has been advised of the arrival of the goods and has had reasonable opportunity
thereafter to remove them or otherwise dispose of them.
Art. 1739. In order that the common carrier may be exempted from responsibility, the natural
disaster must have been the proximate and only cause of the loss. However, the common carrier
must exercise due diligence to prevent or minimize loss before, during and after the occurrence of
flood, storm or other natural disaster in order that the common carrier may be exempted from
liability for the loss, destruction, or deterioration of the goods. The same duty is incumbent upon
the common carrier in case of an act of the public enemy referred to in Article 1734, No. 2.

Art. 1740. If the common carrier negligently incurs in delay in transporting the goods, a natural
disaster shall not free such carrier from responsibility.

Art. 1741. If the shipper or owner merely contributed to the loss, destruction or deterioration of
the goods, the proximate cause thereof being the negligence of the common carrier, the latter
shall be liable in damages, which however, shall be equitably reduced.

Art. 1742. Even if the loss, destruction, or deterioration of the goods should be caused by the
character of the goods, or the faulty nature of the packing or of the containers, the common
carrier must exercise due diligence to forestall or lessen the loss.

Art. 1743. If through the order of public authority the goods are seized or destroyed, the common
carrier is not responsible, provided said public authority had power to issue the order.

Art. 1744. A stipulation between the common carrier and the shipper or owner limiting the liability
of the former for the loss, destruction, or deterioration of the goods to a degree less than
extraordinary diligence shall be valid, provided it be:

(1) In writing, signed by the shipper or owner;

(2) Supported by a valuable consideration other than the service rendered by the common
carrier; and

(3) Reasonable, just and not contrary to public policy.

Art. 1745. Any of the following or similar stipulations shall be considered unreasonable, unjust and
contrary to public policy:

(1) That the goods are transported at the risk of the owner or shipper;

(2) That the common carrier will not be liable for any loss, destruction, or deterioration of
the goods;

(3) That the common carrier need not observe any diligence in the custody of the goods;

(4) That the common carrier shall exercise a degree of diligence less than that of a good
father of a family, or of a man of ordinary prudence in the vigilance over the movables
transported;

(5) That the common carrier shall not be responsible for the acts or omission of his or its
employees;

(6) That the common carrier's liability for acts committed by thieves, or of robbers who do
not act with grave or irresistible threat, violence or force, is dispensed with or diminished;
 (7) That the common carrier is not responsible for the loss, destruction, or deterioration of
goods on account of the defective condition of the car, vehicle, ship, airplane or other
equipment used in the contract of carriage.

Art. 1746. An agreement limiting the common carrier's liability may be annulled by the shipper or
owner if the common carrier refused to carry the goods unless the former agreed to such
stipulation.

Art. 1747. If the common carrier, without just cause, delays the transportation of the goods or
changes the stipulated or usual route, the contract limiting the common carrier's liability cannot
be availed of in case of the loss, destruction, or deterioration of the goods.

Art. 1748. An agreement limiting the common carrier's liability for delay on account of strikes or
riots is valid.

Art. 1749. A stipulation that the common carrier's liability is limited to the value of the goods
appearing in the bill of lading, unless the shipper or owner declares a greater value, is binding.

Art. 1750. A contract fixing the sum that may be recovered. by the owner or shipper for the loss,
destruction, or deterioration of the goods is valid, if it is reasonable and just under the
circumstances, and has been fairly and freely agreed upon.

Art. 1751. The fact that the common carrier has no competitor along the line or route, or a part
thereof, to which the contract refers shall be taken into consideration on the question of whether
or not a stipulation limiting the common carrier's liability is reasonable, just and in consonance
with public policy.

Art. 1752. Even when there is an agreement limiting the liability of the common carrier in the
vigilance over the goods, the common carrier is disputably presumed to have been negligent in
case of their loss, destruction or deterioration.

Art. 1753. The law of the country to which the goods are to be transported shall govern the
liability of the common carrier for their loss, destruction or deterioration.

Art. 1754. The provisions of Articles 1733 to 1753 shall apply to the passenger's baggage which is
not in his personal custody or in that of his employee. As to other baggage, the rules in Articles
1998 and 2000 to 2003 concerning the responsibility of hotel-keepers shall be applicable.

SUBSECTION 3. - Safety of Passengers

Art. 1755. A common carrier is bound to carry the passengers safely as far as human care and
foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all
the circumstances.

Art. 1756. In case of death of or injuries to passengers, common carriers are presumed to have
been at fault or to have acted negligently, unless they prove that they observed extraordinary
diligence as prescribed in Articles 1733 and 1755.

Art. 1757. The responsibility of a common carrier for the safety of passengers as required in
Articles 1733 and 1755 cannot be dispensed with or lessened by stipulation, by the posting of
notices, by statements on tickets, or otherwise.
Art. 1758. When a passenger is carried gratuitously, a stipulation limiting the common carrier's
liability for negligence is valid, but not for wilful acts or gross negligence.

The reduction of fare does not justify any limitation of the common carrier's liability.

Art. 1759. Common carriers are liable for the death of or injuries to passengers through the
negligence or wilful acts of the former's employees, although such employees may have acted
beyond the scope of their authority or in violation of the orders of the common carriers.

This liability of the common carriers does not cease upon proof that they exercised all the
diligence of a good father of a family in the selection and supervision of their employees.

Art. 1760. The common carrier's responsibility prescribed in the preceding article cannot be
eliminated or limited by stipulation, by the posting of notices, by statements on the tickets or
otherwise.

Art. 1761. The passenger must observe the diligence of a good father of a family to avoid injury to
himself.

Art. 1762. The contributory negligence of the passenger does not bar recovery of damages for his
death or injuries, if the proximate cause thereof is the negligence of the common carrier, but the
amount of damages shall be equitably reduced.

Art. 1763. A common carrier is responsible for injuries suffered by a passenger on account of the
wilful acts or negligence of other passengers or of strangers, if the common carrier's employees
through the exercise of the diligence of a good father of a family could have prevented or stopped
the act or omission.

2. Sections 349-379, 573-736, and 806-869 of Code of commerce

CODE OF COMMERCE OF THE PHILIPPINES

COMMERCIAL CONTRACTS FOR TRANSPORTATION
ARTICLE 349. A contract of transportation by land or water ways of any kind shall be considered commercial:

1. When it has for its object merchandise or any article of commerce.

2. When, whatever its object may be, the carrier is a merchant or is habitually engaged in transportation
for the public.

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. 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. 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. 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.
ARTICLE 354. In the absence of a bill of lading, disputes shall be determined by the legal proofs which the
parties may present in support of their respective claims, according to the general provisions established in
this Code for commercial contracts.
ARTICLE 355. The responsibility of the carrier shall commence from the moment he receives the
merchandise, personally or through a person charged for the purpose, at the place indicated for receiving
them.

ARTICLE 356. Carriers may refuse packages which appear unfit for transportation; and if the carriage is to
be made by railway, and the shipment is insisted upon, the company shall transport them, being exempt from
all responsibility if its objections, is made to appear in the bill of lading.

ARTICLE 357. If by reason of well-founded suspicion of falsity in the declaration as to the contents of a
package the carrier should decide to examine it, he shall proceed with his investigation in the presence of
witnesses, with the shipper or consignee in attendance.
If the shipper or consignee who has to be cited does not attend, the examination shall be made before a
notary, who shall prepare a memorandum of the result of the investigation, for such purposes as may be
proper.
If the declaration of the shipper should be true, the expense occasioned by the examination and that of
carefully repacking the packages shall be for the account of the carrier and in a contrary case for the account
of the shipper.
ARTICLE 358. If there is no period fixed for the delivery of the goods the carrier shall be bound to forward
them in the first shipment of the same or similar goods which he may make point where he must deliver them;
and should he not do so, the damages caused by the delay should be for his account.

ARTICLE 359. If there is an agreement between the shipper and the carrier as to the road over which the
conveyance is to be made, the carrier may not change the route, unless it be by reason of force majeure; and
should he do so without this cause, he shall be liable for all the losses which the goods he transports may
suffer from any other cause, beside paying the sum which may have been stipulated for such case.
When on account of said cause of force majeure, the carrier had to take another route which produced an
increase in transportation charges, he shall be reimbursed for such increase upon formal proof thereof.
ARTICLE 360. The shipper, without changing the place where the delivery is to be made, may change the
consignment of the goods which he delivered to the carrier, provided that at the time of ordering the change
of consignee the bill of lading signed by the carrier, if one has been issued, be returned to him, in exchange
for another wherein the novation of the contract appears.
The expenses which this change of consignment occasions shall be for the account of the shipper.
ARTICLE 361. [The merchandise shall be transported at the risk and venture of the shipper, if the contrary
has not been expressly stipulated.
As a consequence, all the losses and deteriorations which the goods may suffer during the transportation by
reason of fortuitous event, force majeure, or the inherent nature and defect of the goods, shall be for the
account and risk of the shipper. cdta
Proof of these accidents is incumbent upon the carrier.]
ARTICLE 362. Nevertheless, the carrier shall be liable for the losses and damages resulting from the causes
mentioned in the preceding article if it is proved, as against him, that they arose through his negligence or by
reason of his having failed to take the precautions which usage has established among careful persons, unless
the shipper has committed fraud in the bill of lading, representing the goods to be of a kind or quality different
from what they really were.
If, notwithstanding the precautions referred to in this article, the goods transported run the risk of being lost,
on account of their nature or by reason of unavoidable accident, there being no time for their owners to
dispose of them, the carrier may proceed to sell them, placing them for this purpose at the disposal of the
judicial authority or of the officials designated by special provisions.
ARTICLE 363. Outside of the cases mentioned in the second paragraph of Article 361, the carrier shall be
obliged to deliver the goods shipped in the same condition in which, according to the bill of lading, they were
found at the time they were received, without any damage or impairment, and failing to do so, to pay the
value which those not delivered may have at the point and at the time at which their delivery should have
been made.
If those not delivered form part of the goods transported, the consignee may refuse to receive the latter,
when he proves that he cannot make use of them independently of the others.
ARTICLE 364. If the effect of the damage referred to in Article 361 is merely a diminution in the value of
the goods, the obligation of the carrier shall be reduced to the payment of the amount which, in the judgment
of experts, constitutes such difference in value.

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 366. Within the twenty-four hours following the receipt of the merchandise, the claim against the
carrier for damage or average be found therein upon opening the packages, may be made, provided that the
indications of the damage or average which gives rise to the claim cannot be ascertained from the outside
part of such packages, in which case the claim shall be admitted only at the time of receipt.
After the periods mentioned have elapsed, or the transportation charges have been paid, no claim shall be
admitted against the carrier with regard to the condition in which the goods transported were delivered.
ARTICLE 367. If doubts and disputes should arise between the consignee and the carrier with respect to the
condition of the goods transported at the time their delivery to the former is made, the goods shall be
examined by experts appointed by the parties, and, in case of disagreement, by a third one appointed by the
judicial authority, the results to be reduced to writing; and if the interested parties should not agree with the
expert opinion and they do not settle their differences, the merchandise shall be deposited in a safe warehouse
by order of the judicial authority, and they shall exercise their rights in the manner that may be proper.

ARTICLE 368. The carrier must deliver to the consignee, without any delay or obstruction, the goods which
he may have received, by the mere fact of being named in the bill of lading to receive them; and if he does
not do so, he shall be liable for the damages which may be caused thereby.

ARTICLE 369. If the consignee cannot be found at the residence indicated in the bill of lading, or if he refuses
to pay the transportation charges and expenses, or if he refuses to receive the goods, the municipal judge,
where there is none of the first instance, shall provide for their deposit at the disposal of the shipper, this
deposit producing all the effects of delivery without prejudice to third parties with a better right.

ARTICLE 370. If a period has been fixed for the delivery of the goods, it must be made within such time,
and, for failure to do so, the carrier shall pay the indemnity stipulated in the bill of lading, neither the shipper
nor the consignee being entitled to anything else.
If no indemnity has been stipulated and the delay exceeds the time fixed in the bill of lading, the carrier shall
be liable for the damages which the delay may have caused.
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 372. The value of the goods which the carrier must pay in cases if loss or misplacement shall be
determined in accordance with that declared in the bill of lading, the shipper not being allowed to present
proof that among the goods declared therein there were articles of greater value and money.
Horses, vehicles, vessels, equipment and all other principal and accessory means of transportation shall be
especially bound in favor of the shipper, although with respect to railroads said liability shall be subordinated
to the provisions of the laws of concession with respect to the property, and to what this Code established as
to the manner and form of effecting seizures and attachments against said companies.
ARTICLE 373. The carrier who makes the delivery of the merchandise to the consignee by virtue of combined
agreements or services with other carriers shall assume the obligations of those who preceded him in the
conveyance, reserving his right to proceed against the latter if he was not the party directly responsible for
the fault which gave rise to the claim of the shipper or consignee.
The carrier who makes the delivery shall likewise acquire all the actions and rights of those who preceded him
in the conveyance.
The shipper and the consignee shall have an immediate right of action against the carrier who executed the
transportation contract, or against the other carriers who may have received the goods transported without
reservation.
However, the reservation made by the latter shall not relieve them from the responsibilities which they may
have incurred by their own acts.
ARTICLE 374. The consignees to whom the shipment was made may not defer the payment of the expenses
and transportation charges of the goods they receive after the lapse of twenty-four hours following their
delivery; and in case of delay in this payment, the carrier may demand the judicial sale of the goods
transported in an amount necessary to cover the cost of transportation and the expenses incurred.

ARTICLE 375. The goods transported shall be especially bound to answer for the cost of transportation and
for the expenses and fees incurred for them during their conveyance and until the moment of their delivery.
This special right shall prescribe eight days after the delivery has been made, and once prescribed, the carrier
shall have no other action than that corresponding to him as an ordinary creditor.
ARTICLE 376. The preference of the carrier to the payment of what is owed him for the transportation and
expenses of the goods delivered to the consignee shall not be cut off by the bankruptcy of the latter, provided
it is claimed within the eight days mentioned in the preceding article.

ARTICLE 377. The carrier shall be liable for all the consequences which may arise from his failure to comply
with the formalities prescribed by the laws and regulations of the public administration, during the whole
course of the trip and upon arrival at the point of destination, except when his failure arises from having been
led into error by falsehood on the part of the shipper in the declaration of the merchandise. If the carrier has
acted by virtue of a formal order of the shipper or consignee of the merchandise, both shall become
responsible.

ARTICLE 378. Agents for transportation shall be obliged to keep a special registry, with the formalities
required by Article 36, in which all the goods the transportation of which is undertaken shall be entered in
consecutive order of number and dates, with a statement of the circumstances required in Article 350 and
others following for the respective bills of lading.

ARTICLE 379. The provisions contained in Articles 349 and following shall be understood as equally
applicable to those who, although they do not personally effect the transportation of the merchandise, contract
to do so through others, either as contractors for a particular and definite operation, or as agents for
transportations and conveyances.
In either case they shall be subrogated in the place of the carriers themselves, with respect to the obligations
and responsibility of the latter, as well as with regard to their rights.
3. Carriage of Goods by sea act. Specially Section 3(6)

COMMONWEALTH ACT No. 65

IN ACT TO DECLARE THAT PUBLIC ACT NUMBERED FIVE HUNDRED AND TWENTY-ONE,
KNOWN AS "CARRIAGE OF GOODS BY SEA ACT," ENACTED BY THE SEVENTY-FOURTH
CONGRESS OF THE UNITED STATES, BE ACCEPTED, AS IT IS HEREBY ACCEPTED BY THE
NATIONAL ASSEMBLY

WHEREAS, the Seventy-fourth Congress of the United States enacted Public Act Numbered Five
hundred and twenty-one, entitled:

"Carriage of Goods by Sea Act";

WHEREAS, the primordial purpose of the said Acts is to bring about uniformity in ocean bills of
lading and to give effect to the Brussels Treaty, signed by the United States with other powers;

WHEREAS, the Government of the United States has left it to the Philippine Government to decide
whether or not the said Act shall apply to carriage of goods by sea in foreign trade to and from
Philippine ports;

WHEREAS, the said Act of Congress contains advanced legislation, which is in consonance with
modern maritime rules and the practices of the great shipping countries of the world;

WHEREAS, shipping companies, shippers, and marine insurance companies, and various chambers
of commerce, which are directly affected by such legislation, have expressed their desire that said
Congressional Act be made applicable and extended to the Philippines; therefore,

Be it enacted by the National Assembly of the Philippines:

Section 1. That the provisions of Public Act Numbered Five hundred and twenty-one of the Seventy-
fourth Congress of the United States, approved on April sixteenth, nineteen hundred and thirty-six,
be accepted, as it is hereby accepted to be made applicable to all contracts for the carriage of goods
by sea to and from Philippine ports in foreign trade: Provided, That nothing in the Act shall be
construed as repealing any existing provision of the Code of Commerce which is now in force, or as
limiting its application.

Section 2. This Act shall take effect upon its approval.

Approved: October 22,1936.

An Act Relating to the Carriage of Goods by Sea.

Be it enacted by the Senate and House of Representatives of the United States of America in
Congress assembled, That every bill of landing or similar document of title which is evidence of a
contract for the carriage of goods by sea to or from ports of the United States, in foreign trade, shall
have effect subject to the provisions of the Act.

TITLE I
Section 1. When used in this Act —

(a) The term "carrier" includes the owner or the charterer who enters into a contract of
carriage with a shipper.

(b) The term "contract of carriage" applies only to contracts of carriage covered by a bill of
lading or any similar document of title, insofar as such document relates to the carriage of
goods by sea, including any bill of lading or any similar document as aforesaid issued under
or pursuant to a charter party from the moment at which such bill of lading or similar
document of title regulates the relations between a carrier and a holder of the same.

(c) The term "goods" includes goods, wares, merchandise, and articles of every kind
whatsoever, except live animals and cargo which by the contract of carriage is stated as
being carried on deck and is so carried.

(d) The term "ship" means any vessel used for the carriage of goods by sea.

(e) The term "carriage of goods" covers the period from the time when the goods are loaded
on to the time when they are discharged from the ship.

RISKS

Section 2. Subject to the provisions of section 6, under every contract of carriage of goods by sea,
the carrier in relation to the loading handling, stowage, carriage, custody, care, and discharge of
such goods, shall be subject to the responsibilities and liabilities and entitled to the rights and
immunities hereinafter set forth.

RESPONSIBILITIES AND LIABILITIES

Section 3. (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 charge the 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 —

(a) The leading 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 marks are stamped or otherwise shown clearly upon the goods if uncovered, or
on the cases or coverings in which such goods are contained, in such a manner as
should ordinarily remain legible until the end of the voyage.
 (b) Either the number of packages or pieces, or the quantity or weight, as the case
may be, as furnished in writing by the shipper.

(c) The apparent order and condition 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 goods actually received, or which he has had no
reasonable means of checking.

(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:
Provided, That nothing in this Act shall be construed as repealing or limiting the application
of any part of the Act, as amended, entitled "An Act relating to bills of lading in interstate and
foreign commerce," approved August 29, 1916 (U. S. C. title 49, secs. 81-124), commonly
known as the "Pomerene Bills of Lading Act."

(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 or to any person other than
the shipper.

(6) Unless notice of loss or damage and the general nature of such loss or damage be given
in writing to the carrier or his agent at the port of discharge before 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 maybe 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.

(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 name or name the 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 or 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 provided 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.

RIGHTS AND IMMUNITIES

Section 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 to the holds, refrigerating and cool 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
persons claiming exemption under the 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 waters;

(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) Riots and 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 of packing;

(o) Insufficiency of 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.

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

(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 of this Act or of the contract of
carriage, and the carrier shall not be liable for any loss or damage resulting therefrom:
Provided, however, That if the deviation is for the purpose of loading cargo or unloading
cargo or passengers it shall, prima facie, be regarded as unreasonable.

(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 $600
per package 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.

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.

Neither the carrier nor the ship shall be responsible in any event for loss or 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.

(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.
 SURRENDER OF RIGHTS AND IMMUNITIES AND INCREASE OF RESPONSIBILITIES AND
LIABILITIES

Section 5. A carrier shall be at liberty to surrender in whole or in part all or any of his rights and
immunities or to increase any of his responsibilities and liabilities under this Act, provided such
surrender or increase shall be embodied in the bill of lading issued to the shipper.

The provisions of this Act shall not be applicable to charter parties; but if bills of lading are issued in
the case of a ship under charter party, they shall comply with the terms of this Act. Nothing in this
Act shall be held to prevent the insertion in a bill of lading of any lawful provision regarding general
average.

SPECIAL CONDITIONS

Section 6. Notwithstanding the provisions of the preceding sections, a carrier, master or agent of the
carrier, and a shipper shall, in regard to any particular goods be at liberty to enter into any
agreement in any terms as to the responsibility and liability of the carrier for such goods, and as to
the rights and immunities of the carrier in respect of such goods, or his obligation as to
seaworthiness (so far as the stipulation regarding seaworthiness is not contrary to public policy), or
the care or diligence of his servants or agents in regard to the loading, handling stowage, carriage,
custody, care, and discharge of the goods carried by sea: Provided, That in this case no bill of lading
has been or shall be issued and that the terms agreed shall be embodied in a receipt which shall be
a non-negotiable document and shall be marked as such.

Any agreement so entered into shall have full legal effect: Provided, That this section shall not apply
to ordinary commercial shipments made in the ordinary course of trade but only to other shipments
where the character or condition of the property to be carried or the circumstances, terms, and
conditions under which the carriage is to be performed are such as reasonably to justify a special
agreement.

Section 7. Nothing contained in this Act shall prevent a carrier or a shipper from entering into any
agreement, stipulation, condition, reservation, or exemption as to the responsibility and liability of the
carrier or the ship for the loss or damage to or in connection with the custody and care and handling
of goods prior to the loading on and subsequent to the discharge from the ship on which the goods
are carried by sea.

Section 8. The provisions of this Act shall not affect the rights and obligations of the carrier under
the provisions of the Shipping Act, 1916, or under the provisions of section 4281 to 4289, inclusive,
of the Revised Statutes of the United States, or of any amendments thereto; or under the provisions
of any other enactment for the time being in force relating to the limitation of the liability of the
owners of seagoing vessels.

TITLE II

Section 9. Nothing contained in this Act shall be construed as permitting a common carrier by water
to discriminate between competing shippers similarly place in time and circumstances, either (a) with
respect to the right to demand and receive bills of lading subject to the provisions of this Act; or (b)
when issuing such bills of lading, either in the surrender of any of the carrier's rights and immunities
or in the increase of any of the carrier's responsibilities and liabilities pursuant to section 6, title I, of
this Act or (c) in any other way prohibited by the Shipping Act, 1916, s amended.
Section 10. Section 25 of the Interstate Commerce Act is hereby amended by adding the following
proviso at the end of paragraph 4 thereof: "Provided, however, That insofar as any bill of lading
authorized hereunder relates to the carriage of goods by sea, such bill of lading shall be subject to
the provisions of the Carriage of Goods by Sea Act."

Section 11. Where under the customs of any trade the weight of any bulk cargo inserted in the bill of
lading is a weight ascertained or accepted by a third party other than the carrier or the shipper, and
the fact that the weight is so ascertained or accepted is stated in the bill of lading, then,
notwithstanding any thing in this Act, the bill of lading shall not be deemed to be prima facie
evidence against the carrier of the receipt of goods of the weight so inserted in the bill of lading, and
the accuracy thereof at the time of shipment shall not be deemed to have been guaranteed by the
shipper.

Section 12. Nothing in this Act shall be construed as superseding any part of the Act entitled "An act
relating to navigation of vessels, bills of lading, and to certain obligations, duties, and rights in
connection with the carriage of property," approved February 13,1893, or of any other law which
would be applicable in the absence of this Act, insofar as they relate to the duties, responsibilities,
and liabilities of the ship or carrier prior to the time when the goods are loaded on or after the time
they are discharged from the ship.

Section 13. This Act shall apply to all contracts for carriage of goods by sea to or from ports of the
United States in foreign trade. As used in this Act the term "United States" includes its districts,
territories, and possessions: Provided, however, That the Philippine legislature may by law exclude
its application to transportation to or from ports of the Philippine Islands. The term "foreign trade"
means the transportation of goods between the ports of the United States and ports of foreign
countries. Nothing in this Act shall be held to apply to contracts for carriage of goods by sea between
any port of the United States or its possessions, and any other port of the United States or its
possession: Provided, however, That any bill of lading or similar document of title which is evidence
of a contract for the carriage of goods by sea between such ports, containing an express statement
that it shall be subject to the provisions of this Act, shall be subjected hereto as fully as if subject
hereto as fully as if subject hereto by the express provisions of this Act: Provided, further, That every
bill of lading or similar document of title which is evidence of a contract for the carriage of goods by
sea from ports of the United States, in foreign trade, shall contain a statement that it shall have effect
subject to the provisions of this Act.

Section 14. Upon the certification of the Secretary of Commerce that the foreign commerce of the
United States in its competition with that of foreign nations is prejudiced the provisions, or any of
them, of Title I of this Act, or by the laws of any foreign country or countries relating to the carriage of
goods by sea, the President of the United States, may, from time to time, by proclamation, suspend
any or all provisions of Title I of this Act for such periods of time or indefinitely as may be designated
in the proclamation. The President may at any time rescind such suspension of Title I hereof, and
any provisions thereof which may have been suspended shall thereby be reinstated and again apply
to contracts thereafter made for the carriage of goods by sea. Any proclamation of suspension or
rescission of any such suspension shall take effect on a date named therein, which date shall be not
less than ten days from the issue of the proclamation.

Any contract for the carriage of goods by sea, subject to the provisions of this Act, effective during
any period when title I hereof, or any part thereof, is suspended, shall be subject to all provisions of
law now or hereafter applicable to that part of Title I which may have thus been suspended.

Section 15. This Act shall take effect ninety days after the date of its approval; but nothing in this Act
shall apply during a period not to exceed one year following its approval to any contract for the
carriage of goods by sea, made before the date on which this Act is approved, nor to any bill of
lading or similar document of title issued, whether before or after such date of approval in pursuance
of any such contract as aforesaid.

Section 16. This Act may be cited as the "Carriage of Goods by Sea Act."

Approved, April 16, 1936.

4. Warsaw convention
5. Public service act