Commonwealth Act. No.

65
CARRIAGE OF GOODS BY SEA ACT
 HISTORICAL BACKGROUND OF
COGSA
October 22, 1936 August 30, 1950
APRIL 16, 1936

74th US Congress enacted the COGSA was made applicable to
COGSA through Public Act No. 521 Philippines upon the election and
approval of Commonwealth Act. No.
55 by the National Assembly of the
Commonwealth Government.
The New Civil Code came into effect
which became the primary law on
goods that are being transported
from a foreign port to the
Philippines.
 IMPORTANT FEATURES OF COGSA
The following are important features of the Carriage of Goods by Sea Act:
 
1.) It acts as a supplement to the Civil Code and applies to all contracts of carriage of goods coming to
or from Philippine ports in foreign trade.
 
2.) When there is damage to the goods, notice must be given by the recipient to the carrier or his
agent upon receipt of the goods. But if the damage is apparent/externally visible, notice must be
given within 3 days from receipt of the goods.
 
3.) Failure of the recipient to notify the carrier will not prevent the filing of a suit for the loss/damage
of the goods.
 
4.) The maximum liability is US$500.00 per package/customary freight unit unless the shipper or
owner of the goods declares a higher value. It may be lowered by agreement put down in the bill of
lading.
 REQUISITES FOR APPLICABILITY:

• There must be a contract of carriage between the

ship-owner or its agent and the shipper;
• The contract must be for the carriage of goods;
• For transportation by sea; and
• In foreign trade, UNLESS expressly agreed upon by the
parties to apply in domestic shipping.
PARTIES COVERED BY COGSA

CARRIER
AND
SHIPPER
GOVERNING LAWS
TO THE PHILIPPINES
PRIVATE CARRIER COMMON CARRIER
FIRST: COGSA FIRST: CIVIL CODE
SECOND: CODE OF SECOND: COGSA
COMMERCE THIRD: CODE OF
THIRD: CIVIL CODE COMMERCE
PROVISIONS ON TORTS
AND DAMAGES

TO A FOREIGN COUNTRY
PRIVATE CARRIER COMMON CARRIER
LAW OF COUNTRY OF DESTINATION
UNLESS THERE IS AN EXPRESS
AGREEMENT BETWEEN THE PARTIES
 DUTIES OF THE CARRIER

Section 3.
(1) Seaworthiness
(2) Cargoworthiness
STANDARD OF DILIGENCE
(3) Issue to the shipper a bill of lading
REQUIRED:
EXTRAORDINARY
DILIGENCE
 DOCUMENT OF TITLE REQUIRED
• Sec 1 (b) COGSA provides that the term “contract of
carriage” applies only to contracts of carriage by sea
covered by a bill of lading or any similar document of
title insofar as such document relates to the carriage
of goods by sea.

• Sec 3(7) provides that the bill of lading to be issued

by the carrier to the shipper shall be a “shipped” bill
of lading.
• The bill of lading shall be prima facie evidence of the
BILL OF LADING
receipt by the carrier of the goods as therein
described.
NOTICE OF CLAIM

• Notice of claim must be made within 3

days from delivery if the damage is
apparent.
PRESCRIPTIVE PERIOD
• Gen. Rule: The carrier and the agent shall
be discharged from liability in respect of
loss or damaged to goods carried by sea
unless suit is brought within 1 year:
• In case of damaged goods: after delivery
was made.
• In case of non-delivery of goods: after the
date when the goods should have been
delivered or the date when the ship left
the port of destination.
PRESCRIPTIVE PERIOD
Why 1 year?
• To meet the exigencies of maritime
hazards;
• To provide the carrier time to look for the
lost goods.
• To discover who was at fault; and
• To determine when and where the
damage occurred in case of
transshipment.
PRESCRIPTIVE PERIOD
In case of MIDELIVERY:
• Breach of a Written contract
• 10 years from the time the right of
action accrues (Art. 1144, NCC)
• Quasi-Delict
• 4 years from the time the right of
action accrues. (Art. 1146, NCC)
 DEFENSES
• COGSA: Carrier shall not be liable for loss
or damage arising from unseaworthiness.

• New Civil Code: The carrier will not be

liable only if it can present proof that
unseaworthiness was caused exclusively
by any of the circumstances in Art. 1734
of the Civil Code.

• The prescriptive period does not apply to

cases of misdelivery or conversion.
 DEFENSES
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
 DEFENSES
• COGSA: Carrier shall not be liable for loss
or damage arising from unseaworthiness.
• New Civil Code: The carrier will not be
liable only if it can present proof that
unseaworthiness was caused exclusively
by any of the circumstances in Art. 1734
of the Civil Code.
• The presumption is that unseaworthiness
is due to the negligence of the carrier and
its agent.
IMMUNITIES
• Section 4(2)

• Controlling only if embraced under any of

the defenses in Art. 1734 of the Civil
Code.

• Sec. 4(2)[b][c][d] are valid if it meets all

the requisites of a fortuitous event.
IMMUNITIES

• Deviation can be an immunity.

• Saving or attempting to save life or

property at sea or any reasonable
deviation.
 WAIVER

• The shipowner and the ship agent may

waive the benefit of any of the defenses
in its favor provided not only under
COGSA but also under other laws.
LIMITING PROVISION
Any stipulation limiting the liability shall be
null and void.

Gen. Rule: Shipper can only recover $500 per

package. If there is damage, only up to the
extent of the damage.
Exception: If there is a special declaration of
the real value of the goods.
RIGHT TO DISCHARGE DANGEROUS
CARGO
The Carrier can discharge the good if it is
dangerous, inflammable or are explosives.

Provided that the carrier did not give its

consent to the carriage of such cargoes.