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Sec. for Legal Affairs

 

Organization of American States

 

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  Inter-American convention on Contracts for Carriage of Goods
  » Summary

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CIDIP: This Convention was adopted at the Fourth Inter-America Specialized Conference on Private International Law (CIDIP-IV), held in Montevideo, Uruguay - July 1989.  

Ratifications: To date, the following countries have ratified this Convention: [click here] 

Objective: This Convention establishes a framework concerning Contracts for the International Carriage of Goods, including definitions, necessary documentation, Jurisdiction and Arbitration.  

Summary: This Convention applies to contracts concerning the international carriage of goods, provided that the place of origin and delivery are both party to the Convention.  The  Convention does not limit the rules of bilateral or multilateral conventions between the States Parties concerning the international transportation of goods or more favorable practices followed by those States in relation there to.

This Convention governs the documentation, requiring that the contract for international carriage of goods by road be embodied in a document known as a bill of lading.  The carrier, at the request of the shipper, must issue the bill of lading at the time the carrier receives possession of the goods.  When the freight to be carried comprises different types or lots of goods, as many bills of lading may be issued as there are different types or lots of goods.  Likewise, at the election of the shipper, the bill of lading may be negotiable or non-negotiable.

This Convention establishes the basic requirements for the bill of landing.  However, the Convention provides that the omission of one or more of these requirements shall not affect the existence of the contract.  In case there is a problem with the goods, the Convention allows the carrier to note reservations in the bill of lading.  However, if no such reservation is made, there is a refutable presumption that the goods were delivered to the shipper as stated in the bill of lading.  The Convention provides that a carrier who willfully enters incorrect inaccurate information in the bill of lading shall be liable for damages caused thereby to the shipper, the consignee or a third party and prohibits provisions that limit this liability.  The Convention establishes that the holder of the bill of lading has the right to request changes in the place of delivery and consignee.

Furthermore, this Convention governs liability, jurisdiction and arbitration under these types of contracts.  Accordingly, the carrier shall be liable for any loss or damage to the goods and for delay in delivering or failure to deliver the goods, except for cases of acts of God, inherent defects in the goods, negligence by the shipper or consignor, or other special circumstances with respect to the instructions on the bill of lading.  The carrier shall be liable for the acts or omissions of his agents and servants, and of third parties to whom all or part of the service is entrusted.  In the event of joint carriage, the initial and final carriers will be jointly and severally liable.

The Convention provides great discretion concerning the election of courts in case of controversy.  In such cases, the plaintiff may elect the court where the defendant has its domicile or habitual place of residence, principal place of business or the branch, agency or affiliate through which the bill of lading was issued, location from which the goods were shipped, location designated for delivery of the goods or transit point where the carrier has a representative if the carrier is the defendant.

Finally, the Convention allows the parties to submit arbitral decision any differences that may arise or have arisen between them to arbitration.  

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