Sunday, March 14, 2010

interNational Trade Law

The Hague-Visby Rules are a set of international rules for the carriage of goods by sea. The official title is "International Convention for the Unification of Certain Rules of Law relating to Bills of Lading" and was drafted in Brussels in 1924. After being amended by the Visby Amendments (officially the "Protocol to Amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading") in 1968, the Rules became known as the Hague-Visby Rules. A final amendment was made in the SDR Protocol in 1979.

The premise of the Hague-Visby Rules (and of the earlier English Common Law) is that a carrier has far greater bargaining power than the shipper; and that to protect the interests of the shipper/cargo-owner, the law should impose minimum obligations upon the carrier.

The Hague-Visby Rules were incorporated into English law by the Carriage of Goods by Sea Act 1971; and English lawyers should note the provisions of the statute as well as the text of the rules. For instance, although Article I(c) of the Rules exempts live animals and deck cargo, section 1(7) restores those items into the category of "goods". Also, although Article III(4) declares a bill of lading to be a mere "prima facie evidence of the receipt by the carrier of the goods", the Carriage of Goods by Sea Act 1992 section 4 upgrades a bill of lading to be "conclusive evidence of receipt".

Under Article X, the Rules apply if ("a) the bill of lading is issued in a contracting State, or (b) the carriage is from a port in a contracting State, or (c) the contract (of carriage) provides that(the) Rules ... are to govern the contract". If the Rules apply, the entire text of Rules is incorporated into the contract of carriage, and any attempt to exclude the Rules is void under Article III (8).