PHILIPPINES Law and Practice Contributed by: Valeriano Del Rosario, Daphne Ruby Grasparil, Patrick Sarmiento and Maria Francesca Bautista, VeraLaw
declares the nature and value of such before shipment and inserts it in the bill of lading. The foregoing limitation may be availed of by either the ship-owner or charterer. 4.4 Misdeclaration of Cargo The carrier can set up a claim against the shipper for misdeclaration of cargo. The carrier acting under a contract of carriage is entitled to damages arising from the natural and probable consequences of the misdeclaration. Furthermore, if the misdeclaration was made in apparent bad faith – ie, made with a dishonest purpose and the conscious commission of a wrong – the shipper shall be responsible for all damages which may be reasonably attributed to the misdeclaration. At the time of writing, there is no jurisprudence involv - ing a carrier’s claim against a shipper for misdeclara - tion of cargo. However, in the 2014 case of Philam Insurance Company v Heung-A Shipping Corporation , the shipper was considered solidarily liable for dam - ages with the carrier due to the shipper’s misdeclara - tion of the cargo. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo There are two sets of rules for filing a cargo claim: a rule for domestic carriage and another for foreign carriage. In the case of domestic carriage, notice of loss or damage to the goods must be provided by the cargo owner to the carrier within 24 hours from the delivery of the goods or the date when the goods should have been delivered. This notice is a condition precedent to filing a claim for damaged or lost cargo. If notice of loss or damage has been timely given, the cargo owner has ten years within which to file its cargo claim. This period can be reduced by agreement of the parties but cannot be extended beyond ten years. In the case of foreign carriage, the COGSA provides that the carrier shall be discharged from all liability in respect of cargo 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. Failure to provide a notice of loss or damage shall not affect
or prejudice the right of the shipper to bring suit within said one-year period after the delivery of the goods or the date when the goods should have been delivered. 5. Maritime Liens and Ship Arrests 5.1 Ship Arrests The Philippines is not a party to any international con - vention regarding the arrest of vessels. The procedure for the arrest of vessels in the Philippines is governed The Philippines recognises two types of maritime liens, namely damage done by a ship and services rendered to the ship. Indemnities for crew injuries is not a recognised maritime lien. For purposes of arresting a ship, a maritime lien holder for services to a ship may arrest it regardless of its ownership based on Section 21 of the Ship Mortgage Decree. by the Admiralty Rules. 5.2 Maritime Liens In general, a ship may be arrested for maritime liens and maritime claims. The grounds for arresting a ship under the Admiralty Rules are as follows: • preferred mortgage liens; • pilot, tonnage and port dues and other similar charges; • the wages of the crew, Master’s wages and dis - bursements; • repairs and other necessaries; • damage done by a ship and/or collision liabilities; • salvage; • loans on bottomry and respondentia; and • use of drydocks or marine railway, or other neces - saries furnished to the vessel. Under the Admiralty Rules, any of the foregoing mari - time grounds can be used as a ground to arrest a vessel and can be enforced even if they result from chartering contracts.
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