Article 1The provisions of this Act (excluding Article 16) apply to the carriage of goods by ships with a port of loading or port of discharge that is outside Japan, and the provisions of Article 16 apply to the liability of a carrier and its employees to compensate for damage in tort.

Article 2(1)The term "ship" as used in this Act means a ship provided for in Article 684 of the Commercial Code (Act No. 48 of 1899).

(2)The term "carrier" as used in this Act means a person that undertakes the carriage referred to in the preceding Article.

(3)The term "shipper" as used in this Act means a person that entrusts another person with the carriage referred to in the preceding Article.

(4)One "unit of account" as used in this Act means an amount of money equivalent to one special drawing right, based on the special drawing rights prescribed in Article 3, paragraph (1) of the Articles of Agreement of the International Monetary Fund.

Article 3(1)A carrier is liable for damages for loss of, damage to, or delay in delivery of the goods which resulted from the failure of the carrier or a servant of the carrier to exercise care in receiving, loading, stowing, carrying, storing, discharging, or delivering goods.

(2)The provisions of the preceding paragraph do not apply to damage arising from an act performed by a master, crew member, pilot, or other servant of a carrier in navigating or handling a ship, or from a fire on a ship (other than a fire that the carrier intended to occur or a fire occurring due to the carrier's negligence).

Article 4(1)A carrier may not be released from the liability referred to in the preceding Article unless it proves that it has exercised the care referred to in that Article.

(2)Notwithstanding the provisions of the preceding paragraph, a carrier is released from the liability referred to in the preceding Article if it proves that any of the following facts were present or occurred and that the damage arising in connection with the goods is what would normally arise from this; provided, however, that this does not apply if it is proved that the damage could have been avoided if the carrier had exercised the care referred to in the preceding Article, but that it did not do so:

(3)The provisions of the preceding paragraph do not preclude the application of Article 760 of the Commercial Code.

Article 5A carrier is liable for damages for loss of, damage to, or delay in delivery of the goods arising from the following things being insufficient at the time of the ship's departure; provided, however, that this does not apply if the carrier proves that it and its servant did not fail to exercise care with regard to those things at that time:

Article 6(1)Goods that have flammable, explosive, or other such dangerous properties of which the carrier, master, and carrier's agents were unaware at the time of loading may be discharged, destroyed, or rendered innocuous at any time.

(2)The provisions of the preceding paragraph do not preclude a carrier from filing a claim against a shipper for damages.

(3)Goods that have flammable, explosive, or other such dangerous properties of which the carrier, master, or carrier's agent was aware at the time of loading may be discharged, destroyed, or rendered innocuous if there comes to be a risk of the goods harming the ship or the cargo.

(4)A carrier is not liable for damages in connection with the goods as a result of the handling referred to in paragraph (1) or the preceding paragraph.

Article 7(1)If goods are partially lost or damaged, the consignee or the holder of the bill of lading must issue a written notice to the carrier concerning the general nature of the loss or damage at the time of receipt; provided, however, that if the loss or damage is something that it is not possible to immediately discover, it is sufficient for the consignee or holder to issue that notice within three days from the date of receipt.

(2)If the notice referred to in the preceding paragraph has not been issued, the goods are presumed to have been delivered without any loss or damage.

(3)The provisions of the preceding two paragraphs do not apply if the condition of the goods is confirmed at the time of delivery in the presence of the parties.

(4)If it is suspected that goods have been lost or damaged, the carrier and the consignee or the holder of the bill of lading must provide each other with the accommodations needed to inspect the goods.

Article 8(1)The amount of damages in connection with goods is determined by the market price of the goods (or by the quotations for them on an exchange, if applicable) at the place and time at which the goods should be discharged; provided, however, that if there is no market price, the amount of compensation is determined by the normal price of goods of the same kind and quality at that place and time.

(2)The provisions of Article 576, paragraph (2) of the Commercial Code apply mutatis mutandis to the case referred to in the preceding paragraph.

Article 9(1)A carrier's liability for goods is limited to the larger of the following amounts:

(2)The unit of account referred to in each item of the preceding paragraph is the last one publicized on the date on which the carrier pays the damages arising in connection with the goods.

(3)To apply the provisions of paragraph (1) when goods are carried using a container, pallet, or similar article of transport (hereinafter referred to as "article of transport" in this paragraph), the number of articles of transport is deemed to be the number of packages or units of the goods, unless the number of packages or units of the goods or the volume or weight of the goods is enumerated in a bill of lading or sea waybill.

(4)If, pursuant to the provisions of Article 16, paragraph (3), a carrier's employee's liability arising in connection with the goods is reduced to the extent that the carrier's liability is reduced pursuant to the provisions of the preceding three paragraphs as applied mutatis mutandis pursuant to paragraph (1) of that Article, and the carrier's employee has paid compensation for the damage, the carrier's liability arising in connection with the goods under the preceding three paragraphs is further reduced by up to the amount of money that the carrier's employee has paid as compensation.

(5)The provisions of the preceding paragraphs do not apply if the kind and value of the goods appear on the bill of lading, and if the shipper notifies a carrier of the kind and value of the goods and delivers the bill of lading when entrusting the carrier with their carriage.

(6)In the case referred to in the preceding paragraph, if the shipper intentionally notifies the carrier of a value that is significantly higher than the real value of the goods, the carrier is not liable for damages arising in connection with the goods.

(7)In the case referred to in paragraph (5), if the shipper intentionally notifies the carrier of a value that is significantly lower than the real value of the goods, the value of which the shipper has notified the carrier is deemed to be the value of the goods as it concerns damage arising in connection with the goods.

(8)The provisions of the preceding two paragraphs do not apply if the carrier has knowledge of the real value of the goods.

Article 10Notwithstanding the provisions of Article 8 and paragraphs (1) through (4) of the preceding Article, if the damage arising in connection with the goods is something that the carrier caused intentionally or if it is due to a reckless act that the carrier took with the knowledge that damage could result, the carrier is liable to provide compensation for all damage.

Article 11(1)Any special agreement that is incompatible with the provisions of Articles 3 through 5 or Article 7 through the preceding Article of this Act or the provisions of Article 585, 759, or 760 of the Commercial Code, and disadvantageous to a shipper, consignee, or the holder of a bill of lading is void. The same applies to a contract that transfers rights arising under an insurance policy for goods to a carrier, or any similar contract.

(2)The provisions of the preceding paragraph do not preclude the conclusion of a special agreement that is disadvantageous to a carrier. In such a case, the shipper may demand that the special agreement appear on the bill of lading.

(3)The provisions of paragraph (1) do not apply to damage arising from a fact that occurs or is present before the loading or after the discharge of the goods.

(4)If a special agreement referred to in paragraph (1) has been made with regard to the damage referred to in the preceding paragraph but that agreement does not appear on the bill of lading, the carrier may not assert the agreement against the holder of the bill of lading.

Article 12The provisions of paragraph (1) of the preceding Article do not apply if all or part of a ship is the subject matter of a contract of carriage; provided, however, that this does not apply as it concerns the relationship between a carrier and the holder of a bill of lading.

Article 13The provisions of the preceding Article apply mutatis mutandis to carriage of goods in connection with which it is found to be appropriate to release the carrier from liability for the goods or to reduce the carrier's liability for the goods, due to the special nature or condition of the goods or the special circumstances under which the goods are carried.

Article 14(1)The provisions of Article 11, paragraph (1) do not apply to carriage of live animals or carriage of goods loaded on the deck.

(2)If a special agreement referred to in Article 11, paragraph (1) has been made with regard to the carriage referred to in the preceding paragraph but that agreement does not appear on the bill of lading, the carrier may not assert that agreement against the holder of the bill of lading. The same applies to carriage of goods loaded on the deck if this does not appear on the bill of lading.

Article 15Except for the provisions of Article 575 of the Commercial Code and of Article 576, Article 584, Article 587, Article 588, Article 739, paragraph (1) (including as applied mutatis mutandis pursuant to Article 756, paragraph (1) of that Code) and paragraph (2), Article 756, paragraph (2), and Article 769 of that Code, the provisions of Part II, Chapter VIII, Section 2, and Part III, Chapter III of the Commercial Code apply to the carriage of goods referred to in Article 1.

Article 16(1)The provisions of Article 3, paragraph (2), Article 6, paragraph (4), and Articles 8 through 10 of this Act and Articles 577 and 585 of the Commercial Code apply mutatis mutandis to the liability of a carrier toward a shipper, consignee, or the holder of a bill of lading to compensate for damage in tort arising in connection with goods. In such a case, the term "the preceding paragraph" in Article 3, paragraph (2) is deemed to be replaced with "the main clause of Article 715, paragraph (1) of the Civil Code (Act No. 89 of 1896) and Article 690 of the Commercial Code (including cases in which the ship lessee is deemed to have the same rights and obligations as the shipowner pursuant to the provisions of Article 703, paragraph (1) of the Commercial Code)".

(2)The provisions of the preceding paragraph do not apply to the liability of a carrier toward a consignee if the carrier undertakes carriage of goods from a shipper, notwithstanding that the consignee has previously refused to allow the goods to be carried based on the shipper's entrustment to another person.

(3)If a carrier is granted release from or reduction of liability arising in connection with goods pursuant to the provisions of paragraph (1), the carrier's employee is also granted release from or reduction of the liability that employee has to the shipper, consignee, or holder of the bill of lading to compensate for damage in tort arising in connection with the goods, to the extent of the release from or reduction of the carrier's liability.

(4)If the carrier's liability arising in connection with goods is reduced pursuant to Article 9, paragraphs (1) through (3) (including as applied mutatis mutandis pursuant to paragraph (1) of this Article), the provisions of Article 9, paragraph (4) apply mutatis mutandis to the liability of a carrier's employee that arises in connection with goods when the carrier has provided compensation for the damage.

(5)The provisions of the preceding two paragraphs do not apply if the damage arising in connection with the goods is something that the carrier's employee caused intentionally or if it is due to a reckless action the carrier's employee took with the knowledge that damage could result.

Article 17This Act does not apply to carriage of postal items.