BILL OF LADING

BILL OF LADING CLAUSES

The Paramount Clause

The paramount determines which legislation is applicable to the bill of lading.

Practically all national legislations have a provision which imposes the insertion of the Paramount clause in the bill of lading.

In the "Carriage of Goods by Sea Act 1971 we find the following:

"(6) Without prejudice to Article X (c) of the Rules, the Rules shall have the force of law in relation to:

(a) any bill of lading if the contract contained in or evidenced by it expressly provides that the Rules shall govern the contract, and
....
.... "

Most maritime countries have ratified the Hague Rules. For the status of ratification of the Hague Rules, see web site: http://www.comitemaritime.org/ratific/brus/bru05.html

A number of countries such as Belgium and Great Britain have enacted the Hague Rules in their legislation without any appreciable changes. Other countries only accepted the principles of the law and changed the rules quite considerably. Some countries did not accept the Hague Rules. A number of bills of lading contain a Paramount Clause without bothering about the application of the national legislation.

From the preceding we see clearly that it is of capital importance to read the Paramount Clause very carefully.

The CONLINEBILL has a typical Paramount Clause. According to this clause, the Hague Rules have to be applied as enacted in the country of shipment. When the Hague Rules have not been enacted in the country of shipment, the corresponding legislation of the country of destination shall apply. In case no such enactments are compulsory, the terms of the Hague Rules shall apply.