COMMONWEALTH ACT No. 65 Section 1.

When used in this Act —

IN ACT TO DECLARE THAT PUBLIC ACT NUMBERED FIVE HUNDRED AND (a) The term "carrier" includes the owner or the charterer who enters into a contract of carriage
TWENTY-ONE, KNOWN AS "CARRIAGE OF GOODS BY SEA ACT," ENACTED with a shipper.
BY THE SEVENTY-FOURTH CONGRESS OF THE UNITED STATES, BE
ACCEPTED, AS IT IS HEREBY ACCEPTED BY THE NATIONAL ASSEMBLY (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
WHEREAS, the Seventy-fourth Congress of the United States enacted Public Act Numbered goods by sea, including any bill of lading or any similar document as aforesaid issued under or
Five hundred and twenty-one, entitled: 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.
"Carriage of Goods by Sea Act";
(c) The term "goods" includes goods, wares, merchandise, and articles of every kind
WHEREAS, the primordial purpose of the said Acts is to bring about uniformity in ocean bills whatsoever, except live animals and cargo which by the contract of carriage is stated as being
of lading and to give effect to the Brussels Treaty, signed by the United States with other carried on deck and is so carried.
powers;
(d) The term "ship" means any vessel used for the carriage of goods by sea.
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 (e) The term "carriage of goods" covers the period from the time when the goods are loaded on
and from Philippine ports; to the time when they are discharged from the ship.

WHEREAS, the said Act of Congress contains advanced legislation, which is in consonance RISKS
with modern maritime rules and the practices of the great shipping countries of the world;
Section 2. Subject to the provisions of section 6, under every contract of carriage of goods by
WHEREAS, shipping companies, shippers, and marine insurance companies, and various sea, the carrier in relation to the loading handling, stowage, carriage, custody, care, and
chambers of commerce, which are directly affected by such legislation, have expressed their discharge of such goods, shall be subject to the responsibilities and liabilities and entitled to the
desire that said Congressional Act be made applicable and extended to the Philippines; rights and immunities hereinafter set forth.
therefore,
RESPONSIBILITIES AND LIABILITIES
Be it enacted by the National Assembly of the Philippines:
Section 3. (1) The carrier shall be bound, before and at the beginning of the voyage, to exercise
Section 1. That the provisions of Public Act Numbered Five hundred and twenty-one of the due diligence to —
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 (a) Make the ship seaworthy;
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 (b) Properly man, equip, and supply the ship;
Commerce which is now in force, or as limiting its application.
(c) Make the holds, refrigerating and cooling chambers, and all other parts of the ship in which
Section 2. This Act shall take effect upon its approval. goods are carried, fit and safe for their reception carriage and preservation.

Approved: October 22,1936. (2) The carrier shall properly and carefully load, handle, stow, carry, keep, care for, and
discharge the goods carried.
An Act Relating to the Carriage of Goods by Sea.
(3) After receiving the goods into his charge the carrier, or the master or agent of the carrier,
Be it enacted by the Senate and House of Representatives of the United States of America in shall, on demand of the shipper, issue to the shipper a bill of lading showing among other
Congress assembled, That every bill of landing or similar document of title which is evidence things —
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. (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
TITLE I 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 Provided, That if the shipper shall have previously taken up any document of title to such
the end of the voyage. 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,
(b) Either the number of packages or pieces, or the quantity or weight, as the case may be, as master, or agent with name or name the names of the ship or ships upon which the goods have
furnished in writing by the shipper. 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.
(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, (8) Any clause, covenant, or agreement in a contract of carriage relieving the carrier or the ship
or weight which he has reasonable ground for suspecting not accurately to represent the goods from liability for loss or damage to or in connection with the goods, arising from negligence,
actually received, or which he has had no reasonable means of checking. 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
(4) Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods insurance in favor of the carrier, or similar clause, shall be deemed to be a clause relieving the
as therein described in accordance with paragraphs (3) (a), (b), and (c) of this section: carrier from liability.
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 RIGHTS AND IMMUNITIES
foreign commerce," approved August 29, 1916 (U. S. C. title 49, secs. 81-124), commonly
known as the "Pomerene Bills of Lading Act." 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
(5) The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of carrier to make the ship seaworthy, and to secure that the ship is properly manned, equipped,
shipment of the marks, number, quantity, and weight, as furnished by him; and the shipper and supplied, and to make to the holds, refrigerating and cool chambers, and all other parts of
shall indemnify the carrier against all loss damages, and expenses arising or resulting from the ship in which goods are carried fit and safe for their reception, carriage, and preservation in
inaccuracies in such particulars. The right of the carrier to such indemnity shall in no way limit accordance with the provisions of paragraph (1) of section 3. Whenever loss or damage has
his responsibility and liability under the contract of carriage or to any person other than the resulted from unseaworthiness, the burden of proving the exercise of due diligence shall be on
shipper. the carrier or other persons claiming exemption under the section.

(6) Unless notice of loss or damage and the general nature of such loss or damage be given in (2) Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting
writing to the carrier or his agent at the port of discharge before or at the time of the removal of from —
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 (a) Act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the
as described in the bill of lading. If the loss or damage is not apparent, the notice must be given navigation or in the management of the ship;
within three days of the delivery.
(b) Fire, unless caused by the actual fault or privity of the carrier;
Said notice of loss or damage maybe endorsed upon the receipt for the goods given by the
person taking delivery thereof. (c) Perils, dangers, and accidents of the sea or other navigable waters;

The notice in writing need not be given if the state of the goods has at the time of their receipt (d) Act of God;
been the subject of joint survey or inspection.
(e) Act of war,
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 (f) Act of public enemies;
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 (g) Arrest or restraint of princes, rulers, or people, or seizure under legal process;
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 (h) Quarantine restrictions;

In the case of any actual or apprehended loss or damage the carrier and the receiver shall give (i) Act or omission of the shipper or owner of the goods, his agent or representative;
all reasonable facilities to each other for inspecting and tallying the goods.
(j) Strikes or lockouts or stoppage or restraint of labor from whatever cause, whether partial or
(7) After the goods are loaded the bill of lading to be issued by the carrier, master, or agent of general; Provided, That nothing herein contained shall be construed to relieve a carrier from
the carrier to the shipper shall, if the shipper so demands, be a "shipped" bill of lading responsibility for the carrier's own acts;
 for all damages and expenses directly or indirectly arising out of or resulting from such
(k) Riots and civil commotions 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
(l) Saving or attempting to save life or property at sea; innocuous by the carrier without liability on the part of the carrier except to general average, if
any.
(m) Wastage in bulk or weight or any other loss or damage arising from inherent defect,
quality, or vice of the goods; SURRENDER OF RIGHTS AND IMMUNITIES AND INCREASE OF RESPONSIBILITIES
AND LIABILITIES
(n) Insufficiency of packing;
Section 5. A carrier shall be at liberty to surrender in whole or in part all or any of his rights
(o) Insufficiency of inadequacy of marks; 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.
(p) Latent defects not discoverable by due diligence; and
The provisions of this Act shall not be applicable to charter parties; but if bills of lading are
(q) Any other cause arising without the actual fault and privity of the carrier and without the issued in the case of a ship under charter party, they shall comply with the terms of this Act.
fault or neglect of the agents or servants of the carrier, but the burden of proof shall be on the Nothing in this Act shall be held to prevent the insertion in a bill of lading of any lawful
person claiming the benefit of this exception to show that neither the actual fault or privity of provision regarding general average.
the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss
or damage. SPECIAL CONDITIONS

(3) The shipper shall not be responsible for loss or damage sustained by the carrier or the ship Section 6. Notwithstanding the provisions of the preceding sections, a carrier, master or agent
arising from any cause without the act, fault, or neglect of the shipper, his agents, or servants. 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,
(4) Any deviation in saving or attempting to save life or property at sea, or any reasonable and as to the rights and immunities of the carrier in respect of such goods, or his obligation as
deviation shall not be deemed to be an infringement or breach of this Act or of the contract of to seaworthiness (so far as the stipulation regarding seaworthiness is not contrary to public
carriage, and the carrier shall not be liable for any loss or damage resulting therefrom: policy), or the care or diligence of his servants or agents in regard to the loading, handling
Provided, however, That if the deviation is for the purpose of loading cargo or unloading cargo stowage, carriage, custody, care, and discharge of the goods carried by sea: Provided, That in
or passengers it shall, prima facie, be regarded as unreasonable. 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.
(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 Any agreement so entered into shall have full legal effect: Provided, That this section shall not
package lawful money of the United States, or in case of goods not shipped in packages, per apply to ordinary commercial shipments made in the ordinary course of trade but only to other
customary freight unit, or the equivalent of that sum in other currency, unless the nature and shipments where the character or condition of the property to be carried or the circumstances,
value of such goods have been declared by the shipper before shipment and inserted in the bill terms, and conditions under which the carriage is to be performed are such as reasonably to
of lading. This declaration, if embodied in the bill of lading, shall be prima facie evidence, but justify a special agreement.
shall not be conclusive on the carrier.
Section 7. Nothing contained in this Act shall prevent a carrier or a shipper from entering into
By agreement between the carrier, master, or agent of the carrier, and the shipper another any agreement, stipulation, condition, reservation, or exemption as to the responsibility and
maximum amount than that mentioned in this paragraph may be fixed: Provided, That such liability of the carrier or the ship for the loss or damage to or in connection with the custody
maximum shall not be less than the figure above named. In no event shall the carrier be liable and care and handling of goods prior to the loading on and subsequent to the discharge from
for more than the amount of damage actually sustained. the ship on which the goods are carried by sea.

Neither the carrier nor the ship shall be responsible in any event for loss or damage to or in Section 8. The provisions of this Act shall not affect the rights and obligations of the carrier
connection with the transportation of the goods if the nature or value thereof has been under the provisions of the Shipping Act, 1916, or under the provisions of section 4281 to
knowingly and fraudulently misstated by the shipper in the bill of lading. 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
(6) Goods of an inflammable, explosive, or dangerous nature to the shipment whereof the limitation of the liability of the owners of seagoing vessels.
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 TITLE II
innocuous by the carrier without compensation, and the shipper of such goods shall be liable
Section 9. Nothing contained in this Act shall be construed as permitting a common carrier by such suspension of Title I hereof, and any provisions thereof which may have been suspended
water to discriminate between competing shippers similarly place in time and circumstances, shall thereby be reinstated and again apply to contracts thereafter made for the carriage of
either (a) with respect to the right to demand and receive bills of lading subject to the goods by sea. Any proclamation of suspension or rescission of any such suspension shall take
provisions of this Act; or (b) when issuing such bills of lading, either in the surrender of any of effect on a date named therein, which date shall be not less than ten days from the issue of the
the carrier's rights and immunities or in the increase of any of the carrier's responsibilities and proclamation.
liabilities pursuant to section 6, title I, of this Act or (c) in any other way prohibited by the
Shipping Act, 1916, s amended. 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
Section 10. Section 25 of the Interstate Commerce Act is hereby amended by adding the provisions of law now or hereafter applicable to that part of Title I which may have thus been
following proviso at the end of paragraph 4 thereof: "Provided, however, That insofar as any suspended.
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 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
Section 11. Where under the customs of any trade the weight of any bulk cargo inserted in the contract for the carriage of goods by sea, made before the date on which this Act is approved,
bill of lading is a weight ascertained or accepted by a third party other than the carrier or the nor to any bill of lading or similar document of title issued, whether before or after such date of
shipper, and the fact that the weight is so ascertained or accepted is stated in the bill of lading, approval in pursuance of any such contract as aforesaid.
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 Section 16. This Act may be cited as the "Carriage of Goods by Sea Act."
lading, and the accuracy thereof at the time of shipment shall not be deemed to have been
guaranteed by the shipper. Approved, April 16, 1936.

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
 Republic of the Philippines (f) Foreign container van refers to a container van, whether empty or loaded with foreign
Congress of the Philippines cargo, which belongs to a foreign vessel;
Metro Manila
(g) Foreign port refers to any seaport outside the jurisdiction of the Philippines;
Sixteenth Congress
(h) Foreign ship operator refers to a citizen, partnership, or corporation, whether foreign or
Second Regular Session local, owning or chartering a foreign vessel;

Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two (i) Foreign vessel refers to a ship registered or documented in a flag registry other than that of
thousand fourteen. the Philippines;

[REPUBLIC ACT NO. 10668] (j) Import cargo refers to goods, articles, commodities or merchandise of foreign origin carried
in a foreign vessel which are intended to be cleared before the Bureau of Customs for delivery
AN ACT ALLOWING FOREIGN VESSELS TO TRANSPORT AND CO-LOAD to the port of final destination within the jurisdiction of the Philippines;
FOREIGN CARGOES FOR DOMESTIC TRANSSHIPMENT AND FOR OTHER
PURPOSES (k) Philippine port refers to any port within the Philippines authorized by a government
contract to handle domestic import or export cargo;
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled: (l) Port Authorities refer to entities engaged in the development and operation of seaports
including, but not limited to, Philippine Ports Authority, Cebu Port Authority, PHIVIDEC
SECTION 1. Declaration of Policy. – It is the policy of the State: Industrial Authority, Cagayan Special Economic Zone Authority, Aurora Special Economic
Zone Authority, Bases Conversion and Development Authority, Authority of the Free Port
(a) To assist importers and exporters in enhancing their competitiveness in light of intensifying Area of Bataan and Subic Bay Metropolitan Authority; and
international trade; and
(m) Transshipment refers to the transfer of cargo from one (1) vessel or conveyance to another
(b) To lower the cost of shipping export cargoes from Philippine ports to international ports vessel for further transit to complete the voyage and carry the cargo to its final destination.
and import cargoes from international ports for the benefit of the consumers.
SEC. 3. Scope. – This Act shall apply exclusively to foreign vessels carrying foreign container
SEC. 2. Definition of Terms. – As used in this Act: vans or foreign cargoes.

(a) Co-loading refers to agreements between two (2) or more international or domestic sea SEC. 4. Carriage of a Foreign Cargo by a Foreign Vessel. – A foreign vessel:
carriers whereby a sea carrier bound for a specified destination agrees to load, transport, and
unload the container van or cargo of another carrier bound for the same destination; (a) Arriving from a foreign port, shall be allowed to carry a foreign cargo to its Philippine port
of final destination, after being cleared at its port of entry;
(b) Container van refers to a standardized reusable steel box used for the safe, efficient and
secure storage and movement of materials and products within an intermodal freight transport (b) Arriving from a foreign port, shall be allowed to carry a foreign cargo by another foreign
system where the cargo carried in the container van can be moved from one (1) mode of vessel calling at the same port of entry to the Philippine port of final destination of such foreign
transport to another without having to unload or reload the contents of such container van; cargo;

(c) Domestic cargo refers to goods, articles, commodities or merchandise which are intended to (c) Departing from a Philippine port of origin through another Philippine port to its foreign port
be shipped from one (1) Philippine port to another Philippine port, even if, in the carriage of of final destination, shall be allowed to carry a foreign cargo intended for export; and
such cargo, there may be an intervening foreign port;
(d) Departing from a Philippine port of origin, shall be allowed to carry a foreign cargo by
(d) Export cargo refers to goods, articles, commodities or merchandise carried in foreign another foreign vessel through a domestic transshipment port and transferred at such domestic
vessels and duly declared before the Bureau of Customs at the port of origin as cargoes for transshipment port to its foreign port of final destination.
shipment to a port outside the jurisdiction of the Philippines;
For purposes of this Act, an empty foreign container van going to or coming from any
(e) Foreign cargo refers to import or export cargo carried by a foreign vessel; Philippine port, or going to or coming from a foreign port, and being transshipped between two
(2) Philippine ports shall be allowed.
SEC. 5. Authority of the Commissioner of Customs. – The Commissioner of Customs, upon SEC. 12. Repealing Clause. – Section 1009 of Presidential Decree No. 1464, otherwise known
such reasonable conditions as may be imposed, may do the following acts: as the “Tariff and Customs Code of 1978” and all laws, decrees, orders, rules and regulations,
and other issuances, or parts thereof, inconsistent with the provisions of this Act are hereby
(a) Authorize the conveyance of foreign cargo brought from abroad by a foreign vessel; repealed or modified accordingly.

(b) Allow a foreign vessel to take cargo intended for export at any Philippine port and convey SEC. 13. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the
the same upon such foreign vessel to a foreign port; and Official Gazette or in a newspaper of general circulation.

(c) Authorize the transshipment of such foreign cargo intended for import or export through Approved,
another Philippine port1 by another foreign vessel to the cargo’s port of final destination.

Provided, That such acts shall not diminish or impair any existing and valid government
contract covering the handling of import and export cargo: Provided, further, That the
Commissioner of Customs shall have the authority to impose penalties to foreign ship
operators found to have violated any provision of this Act and to take measures to address
illegal activities, including smuggling.

SEC. 6. Application of the Carriage of Goods by Sea Act. – Carriage conducted in accordance
with this Act shall be governed by Commonwealth Act No. 65, otherwise known as the
“Carriage of Goods by Sea Act” with respect to the liability of the carrier for the loss of, or
damage to, goods carried.

SEC. 7. Carriage by Foreign Vessels Not a Public Service, Foreign Vessels Not Common
Carriers. – Foreign vessels engaging in carriage conducted in accordance with this Act shall
not be considered common carriers as provided in Republic Act No. 386, otherwise known as
the “Civil Code of the Philippines”; neither shall such foreign vessels be considered as offering
a public service and thus shall fall outside the coverage of Republic Act No. 9295, otherwise
known as the “Domestic Shipping Development Act of 2004”.

SEC. 8. Prohibitions. – Foreign ship operators shall submit their cargo manifest to the Port
Authorities to ensure that no domestic cargoes are carried by the foreign ship. No foreign
vessel shall be allowed to carry any domestic cargo or domestic container van, whether loaded
or empty, even if such domestic container van may contain foreign cargo.

SEC. 9. Fines and Penalties. – The Bureau of Customs, upon due notice, hearing and
determination of the existence of any breach or violation of the provisions of this Act or any
rule and regulation issued pursuant thereto, shall impose a penalty or fine on any erring foreign
ship operator in accordance with applicable provisions of the Tariff and Customs Code of the
Philippines and other related laws.

SEC. 10. Implementing Rules and Regulations. – Within sixty (60) days from the approval of
this Act, the Department of Finance, the Bureau of Customs, the Department of Trade and
Industry, the Bureau of Immigration, and all Port Authorities, shall promulgate such rules and
regulations necessary for the effective implementation of this Act.

SEC. 11. Separability Clause. – If any provision of this Act is subsequently declared invalid or
unconstitutional, other provisions hereof which are not affected thereby shall remain in full
force and effect.