Carriage of Goods by Sea Act 1971

5 (a) Unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading, neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with the goods in an amount exceeding [F1 666.67 units of account] per package or unit or [F1 2 units of account per kilogramme] of gross weight of the goods lost or damaged, whichever is the higher. U.K.

(b) The total amount recoverable shall be calculated by reference to the value of such goods at the place and time at which the goods are discharged from the ship in accordance with the contract or should have been so discharged.

The value of the goods shall be fixed according to the commodity exchange price, or, if there be no such price, according to the current market price, or, if there be no commodity exchange price or current market price, by reference to the normal value of goods of the same kind and quality.

(c) Where a container, pallet or similar article of transport is used to consolidate goods, the number of packages or units enumerated in the bill of lading as packed in such article of transport shall be deemed the number of packages or units for the purpose of this paragraph as far as these packages or units are concerned. Except as aforesaid such article of transport shall be considered the package or unit.

[F2 (d) The unit of acount mentioned in this Article is the special drawing right as defined by the International Monetary Fund. The amounts mentioned in sub-paragraph (a) of this paragraph shall be converted into national currency on the basis of the value of that currency on a date to be determined by the law of the Court seized of the case].

(e) Neither the carrier nor the ship shall be entitled to the benefit of the limitation of liability provided for in this paragraph if it is proved that the damage resulted from an act or omission of the carrier done with intent to cause damage, or recklessly and with knowledge that damage would probably result.

(f) The declaration mentioned in sub-paragraph (a) of this paragraph, if embodied in the bill of lading, shall be prima facie evidence, but shall not be binding or conclusive on the carrier.

(g) By agreement between the carrier, master or agent of the carrier and the shipper other maximum amounts than those mentioned in sub-paragraph (a) of this paragraph may be fixed, provided that no maximum amount so fixed shall be less than the appropriate maximum mentioned in that sub-paragraph.

(h) Neither the carrier nor the ship shall be responsible in any event for loss or damage to, or in connection with, goods if the nature or value thereof has been knowingly mis-stated by the shipper in the bill of lading.

Textual Amendments

F1 Words substituted by Merchant Shipping Act 1981 (c. 10, SIF 111), s. 2(2)(3) (which amending Act was repealed (1.1.1996) by 1995 c. 21, s. 314, Sch. 13 para. 45(5)(a)(b)) and those same words substituted (1.1.1996) by 1995 c. 21, ss. 314(1), 316(2), Sch. 12 (with s. 312(1), Sch. 14 para. 1)

F2 Art. IV para. 5(d) substituted by Merchant Shipping Act 1981 (c. 10, SIF 111), s. 2(2)(4) (which amending Act was repealed (1.1.1996) by 1995 c. 21, s. 314, Sch. 13 para. 45(5)(c)) and that same Art. IV para. 5(d) substituted (1.1.1996) by 1995 c. 21, ss. 314(1), 316(2), Sch. 12 (with s. 312(1), Sch. 14 para. 1)

Modifications etc. (not altering text)

C1 Art. IV para. 5(d) amended by Merchant Shipping Act (c. 10, SIF 111), s. 2(5)

Art. IV para. 5(d) amended (1.1.1996) by 1995 c. 21, ss. 314(2), 316(2), Sch. 13 para. 45(6) (with s. 312(1), Sch. 14 para. 1)