BILL OF LADING

By: Atty. Lissa Belle M. Villanueva

SCOPE
Applicable Laws

International Law Philippine Law

Definition
Functions Form

Presentment
Claim for Damage

INTERNATIONAL LAWS
The International Convention for the

Unification of Certain Rules of Law Relating to Bills of Lading

Hague Rules Adopted on August 25, 1924 Adopted at Brussels Entered into Force on June 2, 1924

INTERNATIONAL LAWS
Protocol to Amend the International Convention

for the Unification of Certain Rules of Law Relating to Bills of Lading

Hague-Visby Rules Signed on August 25, 1924 Adopted on February 23, 1968 Adopted in Brussels Entered into Force on June 23, 1977 Approximately 42 countries are signatory to this Protocol making it the most widely followed Rules

INTERNATIONAL LAWS
United Nations Convention on the

Carriage of Goods by Sea

Hamburg Rules Adopted on March 31, 1978 Adopted at Hamburg Entered into Force on November 1, 1992 Approximately 25 countries are party to these Rules

PHILIPPINE LAW
Code of Commerce

Articles 352-379

Civil Code

Articles 1766, 1507-1520

WHAT IS A BILL OF LADING?

It is a written acknowledgment, signed by the master of a vessel, that he has received the goods therein described, from the shipper, to be transported on the terms therein expressed, to the described place of destination, and there to be delivered to the consignee or parties therein designated. It is a receipt as to the quantity and description of the goods shipped and a contract to transport and deliver the goods to the consignee or other person therein designated and upon the terms specified in the same instrument.

WHAT ARE ITS FUNCTIONS?

A bill of lading has three functions:
it is an evidence that there is a contract

of affreightment between the shipper and the shipowner; It is an acknowledgment by the ship owner that he received the cargo It is a document of title to the cargo

FORM OF BILL OF LADING

No particular form is prescribed for a bill

of lading.
Both International and Philippine Laws,

however, require certain information to be contained in every bill of lading

Contents of a Bill of Lading

Under HagueVisby Rules

Leading

marks necessary for the identification of the goods as the same are furnished in writing by the shipper before the loading of the 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

Contents of a Bill of Lading

Under HAGUEVISBY RULES

Either the number of packages or pieces, or the

quantity, or weight, as the case may be, as furnished in writing by the shipper
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.

Contents of Bill of Lading

under CODE OF COMMERCE

1, name, registry, tonnage of vessel 2. Name of captain and his domicile 3. Port of loading and unloading 4. Name of shipper 5. Name of consignee, if issued to a specified person 6. Quantity, quality, number of packages and marks of merchandise 7. Freightage stipulated

Negotiation of Bill of Lading

If bill of lading issued to bearer negotiable,

must actually deliver or give the bill of lading to the person

If bill of lading issued to order negotiable,

there should be an indorsement on the bill

If bill of lading is made in favor of a definite

consignee, not to bearer or to the order of the consignee bill is non negotiable and merchandise may be delivered only to the named consignee

Duty of Carrier
under Hague Visby Rules

Subject to exceptions, the carrier shall

properly and carefully load, handle, stow, carry, keep, care for and discharge the goods discharged. Carrier or ship is not liable for damage caused by unseaworthiness of the ship Exception: If the carrier failed to make the ship seaworthy in terms of equipment, manning, supplies & technical conditions

Duty of Carrier
under Hague Visby Rules

Neither carrier nor ship liable for loss or damage resulting from: a. Act, neglect, or default of the master, mariner, pilot or servants of the carrier in the navigation or in the management of the ship b. Fire, unless caused by the actual fault or privy of the carrier c. Perils, dangers and accidents of the sea or other navigable waters d. Act of God

Duty of Carrier
under Hague Visby Rules

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. Strike or lock-outs or stoppage or restraint of labor from whatever cause, whether partial or general

Duty of Carrier
under Hague Visby Rules

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

Duty of Carrier
under Hague Visby Rules

n. Insufficiency of packing o. Insufficiency or inadequacy of marks p. Latent defects not discoverable by due diligence q. Any other cause arising without the actual fault or privity of the carrier or without the fault or neglect of the agents or servants of the carrier

Duty of Carrier
under Philippine law

except when the goods are damaged or

impaired by reason of accident, force majeure or by virtue of their nature or defects, the carrier shall be obliged to deliver the goods transported in the same condition in which, according to the bill of lading, they were at the time of their receipt, without any damage or impairment

Duty of Carrier
under Philippine law

If the carrier fails to deliver the goods in

the condition that they were accepted, except in cases specified by law, he shall be obliged to pay the value of the goods not delivered at the point where they should have been and at the time the delivery should have taken place.

Claim for Damage

under Hague Visby Rules

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.

Claim for Damage

under Hague Visby Rules

If loss or damage to the goods is not

apparent or cannot be seen from outside, the notice must be given within 3 days of the delivery of the goods.
Notice in writing is not required if the

condition of the goods has, at the time of receipt, been the subject of join survey or inspection by consignee and carrier.

Claim for Damage

under Philippine law

Under Philippine Code of Commerce, within 24

hours from receipt of the merchandise, a claim for damage may be made against the carrier on account of damage or average found upon opening the packages, provided that the indications of damage giving rise to the claim cannot be seen from the exterior of the packages. If damage can be seen from the exterior of the packages, the claim against the carrier must be made upon receipt of the packages.

Claim for Damage

under Philippine law

If damage is obvious from the exterior of

the package, verbal claim is acceptable If damage cannot be seen from the exterior of the package, claim should be in writing and given within 24 hours from receipt

Next Topic: Some Basic Statutory Regulations