PHILIPPINES Law and Practice Contributed by: Valeriano Del Rosario, Daphne Ruby Grasparil, Patrick Sarmiento and Maria Francesca Bautista, VeraLaw
4. Maritime Liens and Ship Arrests 4.1 Ship Arrests The Philippines is not a party to any international convention regarding the arrest of vessels. The procedure for the arrest of vessels in the Philip - pines is governed by the Admiralty Rules. 4.2 Maritime Liens The Philippines recognises two types of mari - time 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 regard - less of its ownership based on Section 21 of the Ship Mortgage Decree. 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 disbursements; • repairs and other necessaries; • damage done by a ship and/or collision liabili - ties; • salvage; • loans on bottomry and respondentia; and • use of drydocks or marine railway or other necessaries furnished to the vessel. Under the Admiralty Rules, any of the foregoing maritime grounds can be used as a ground to arrest a vessel and can be enforced even if they result from chartering contracts.
At the time of writing, there is no jurisprudence involving a carrier’s claim against a shipper for misdeclaration of cargo. However, in the 2014 case of Philam Insurance Company v Heung-A Shipping Corporation, the shipper was consid - ered solidarily liable for damages with the carrier due to the shipper’s misdeclaration of the cargo. 3.5 Time Bar for Filing Claims for Damaged or Lost Cargo There are two sets of rules for filing a cargo claim. There is 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 dam - aged 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 par - ties but cannot be extended beyond ten years. In the case of foreign carriage, the COGSA pro - vides that the carrier shall be discharged from all liability in respect of cargo loss or damage unless suit is brought within one year after deliv - ery 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.
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