Paramount Clause

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PARAMOUNT CLAUSE - GENERAL

Paramount Clause

[All Bills of Lading under this Charter Party shall contain the following clauses]
The International Convention for the Unification of Certain Rules of Law relating
to Bills of Lading signed at Brussels on 25 August 1924 (“the Hague Rules”) as
amended by the Protocol signed at Brussels on 23 February 1968 (“the Hague-
Visby Rules”) and as enacted in the country of shipment shall apply to this
Contract.

When the Hague-Visby Rules are not enacted in the country of shipment, the
corresponding legislation of the country of destination shall apply, irrespective of
whether such legislation may only regulate outbound shipments.

When there is no enactment of the Hague-Visby Rules in either the country of


shipment or in the country of destination, the Hague-Visby Rules shall apply to
this Contract save where the Hague Rules as enacted in the country of shipment
or if no such enactment is in place, the Hague Rules as enacted in the country of
destination apply compulsorily to this Contract.

The Protocol signed at Brussels on 21 December 1979 (“the SDR Protocol 1979”)
shall apply where the Hague-Visby Rules apply, whether mandatorily or by this
Contract.

The Carrier shall in no case be responsible for loss of or damage to cargo arising
prior to loading, after discharging, or while the cargo is in the charge of another
carrier, or with respect to deck cargo and live animals.

Compiled by : Capt. Naveen C Tewari, ARI Saket. New Delhi. (1/16) 1


PARAMOUNT CLAUSE - GENERAL

Purpose

The main function of a Paramount Clause is to ensure that bills of lading issued
for cargo carried under the charter party are subject to the provisions of the
Hague-Visby Rules.

The Hague-Visby Rules will often apply compulsorily to claims brought by cargo
receivers.

The Paramount Clause will make sure that, even if the Rules are not apply
compulsory, they will apply by contract. The aim is that cargo claims will always
be subject to the same uniform legal regime and that carriers will always have
the benefit of the defenses and limitations contained in the Rules.

Compiled by : Capt. Naveen C Tewari, ARI Saket. New Delhi. (1/16) 2

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