Adoption of U.S. Carriage of Goods by Sea Act

The primary purpose is to implement advanced maritime legislation that harmonizes with existing global maritime rules and practices.
The law acknowledges that shipping companies, shippers, marine insurance companies, and chambers of commerce directly impacted by maritime trade support adopting this legislation.
It reflects the Philippine Government’s decision to exercise discretion granted by the U.S. Government to accept the Act.

The Act specifically applies to carriage of goods by sea involving Philippine ports engaged in foreign trade.
It governs contracts relating to such carriage, focusing on ocean bills of lading and related shipping arrangements.

The law explicitly states that its acceptance does not repeal or limit any existing provisions of the Philippine Code of Commerce presently in force.
This safeguard ensures that existing local maritime and commercial laws complement rather than conflict with the newly incorporated COGSA provisions.

The law takes effect immediately upon approval, signifying prompt implementation of the reforms introduced by the Act.

Uniformity in maritime contracts: Ensuring consistency in terms and conditions across international shipping contracts involving Philippine ports.
International treaty compliance: Aligning local law with international maritime treaties, such as the Brussels Treaty.
Contractual regulation: Providing a legal framework safeguarding the rights and liabilities of carriers and shippers under sea carriage contracts.

Shipping companies must adhere to standardized liabilities and responsibilities established under the Act.
Shippers gain clearer, uniform rules protecting their interests in the carriage of goods by sea.
Marine insurance companies benefit from predictable standards reducing ambiguity in coverage related to maritime transport risks.
Chambers of commerce and trade organizations find improved legal certainty and consistency in foreign trade shipping operations involving the Philippines.