PHILIPPINES Law and Practice Contributed by: Valeriano Del Rosario, Daphne Ruby Grasparil, Patrick Sarmiento and Maria Francesca Bautista, VeraLaw
the Republic Act 12021, entitled “An Act Provid - ing for the Magna Carta of Filipino Seafarers”, was enacted in September 2024. This Magna Carta of Filipino Seafarers primar - ily benefits seafarers on international vessels. Domestic seafarers are principally covered by the Labour Code of the Philippines; however, nine chapters of the Magna Carta also apply to them, including, among others, the chapter on seafarers’ rights. The Philippine Carriage of Goods by Sea Act (COGSA) was enacted during the period when the Philippines was a commonwealth of the US and brought into force in the Philippines the US Carriage of Goods by Sea Act, which is effec - tively the Hague Rules. As for the general law governing carriage by sea involving common carriers, this is covered by the general provisions of the New Civil Code. 3.2 Title to Sue on a Bill of Lading 3. Cargo Claims 3.1 Bills of Lading The New Civil Code (Articles 1507–1520) defines a bill of lading as a negotiable document of title and provides the rights emanating therefrom. The valid holder of a bill of lading would be enti - tled to sue the carrier. Under Article 1518, the holder of a bill of lading in good faith and for value would be a valid holder thereof. The New Civil Code defines a valid holder as: • the named consignee in the bill of lading; • in the case of a bearer bill of lading, the holder of the bill of lading transferred by deliv - ery; and
• in the case of a “to order” bill of lading, the holder of the bill of lading transferred by endorsement and delivery. 3.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages For domestic carriage, the liability of the carrier is governed primarily by the Civil Code. Under the Code, a common carrier cannot limit its lia - bility for its own loss or loss to goods where such injury or loss was caused by its own negligence. In the absence of negligence, a ship-owner can limit its liability for domestic carriage to its inter - est in the vessel in keeping with the well-settled doctrine of the real and hypothecary nature of maritime law. In the case of foreign carriage, neither the car - rier nor the ship shall be liable for any loss or damage in an amount exceeding USD500 per package, or in the case of goods not shipped in packages, per customary freight unit, or the equivalent of that sum in another currency. The exception to this is when the shipper 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 The carrier can set up a claim against the ship - per for misdeclaration of cargo. The carrier act - ing under a contract of carriage is entitled to damages arising from the natural and probable consequences of the misdeclaration. Further - more, if the misdeclaration was made in appar - ent bad faith, ie, made with a dishonest purpose and the conscious commission of a wrong, then the shipper shall be responsible for all damages which may be reasonably attributed to the mis - declaration. either the ship-owner or charterer. 3.4 Misdeclaration of Cargo
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