• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.43
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• pp.201-238
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• 2009

The purpose of this paper is to describe the contents and issues of the draft legislation of Part VI the Carriage by Air of Korean Commercial Code in respect of the domestic carriage of cargo by air, comparing to the related provisions of the Montreal Convention of 1999 for the unification of certain rules for international carriage by air and the related provisions of Korean Commercial Code in respect of the carriage by land and sea. The Montreal Convention in respect of the international carriage by air was adopted in 1999, and Korea has ratified the Montreal Convention in 2007. However, there is now no national legislation in respect of the carriage by air in Korea. Thus, the Ministry of Justice has prepared the draft legislation of Part VI the Carriage by Air of the Korean Commercial Code in July 2008, and the draft legislation is now being reviewed by the National Assembly. The draft provisions of Part VI the Carriage by Air are basically adopting most of the related provisions of the Montreal Convention in respect of the carriage of cargo by air and some draft provisions are applying the related provisions of the Korean Commercial Code in respect of the carriage of cargo by land and sea. In respect of the carriage of cargo by air, the contents of the draft legislation of Part VI the Carriage by Air are composed of the provisions in respect of the liability of the carrier, the rights of the consignor and consignee, the transport document and others. In respect of the carriage of cargo by air, the issues on the draft legislation of Part VI the Carriage by Air are the problems with respect to the extinguishment of the liability of the carrier, the application for the non-contractual claim, the liability limit of the servants or agents of the carrier, the right of disposition of cargo, the effect of breach of the provision in respect of the air transport document, the prescription of claim of the carrier, the immunity reasons from liability of the carrier for the loss or damage of the cargo, the making out of the air waybill, and the effect of the statement of the air transport document. In conclusion, the national legislation of Part VI the Carriage by Air of the Korean Commercial Code will protect the right and interest of the consignor and consignee, and clarify the right and duty of the parties to the air transport. Also it will contribute to the development of the air transport industry in Korea.

• Journal of Arbitration Studies
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• v.13 no.2
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• pp.377-401
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• 2004

Delay in the air transport occurs when passengers, baggage or cargo do not arrive at their destination at the time indicated in the contract of carriage. The causes of delay in the carriage of cargo are no reservation, lack of space, failure to load the cargo on board, loading the cargo on the wrong plane, failure to off-load the cargo at the right place, or to deliver the covering documents at the right place. The Montreal Convention of 1999 Article 19 provides that "The carrier is liable for damage occasioned by delay in the carriage by air of cargo. Nevertheless, the carrier shall not be liable for damage occasioned by delay if it proves that it and its servants and agents took all measures that could reasonably be required to avoid the damage or that it was impossible for it or them to take such measures." The Montreal Convention Article 22 provides liability limits of the carrier in case of delay for cargo. In the carriage of cargo, the liability of the carrier is limited to 17 SDR per kilogram unless a special declaration as to the value of the cargo has been made. The Montreal Convention Article 19 has shortcomings: it is silent on the duration of the liability for carriage. It does not give any indication concerning the circumstances to be taken into account in cases of delay, and about the length of delay. In conclusion, it is desirable to define the period of carriage with accuracy, and to insert the word 'unreasonable' in Article 19.

• The Korean Journal of Air & Space Law and Policy
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• v.24 no.2
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• pp.19-45
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• 2009

The purpose of this paper is to research the contents and issues of the draft legislation of Part VI the Carriage by Act of Korean Commercial Code in respect of the liability of the carrier in the carriage of cargo by air, comparing to the related provisions of the Montreal Convention of 1999. The Montreal Convention in respect of the international carriage by air was adopted in 1999, and Korea has ratified the Montreal Convention in 2007. However, there is now no national legislation in respect of the carriage by air in Korea. Thus, the Ministry of Justice has prepared the draft legislation of Part VI the Carriage by Air of the Korean Commercial Code in July 2008, and the draft legislation is now being reviewed by the National Assembly. The draft provisions of Part VI the Carriage by Air are basically adopting most of the related provisions of the Montreal Convention in respect of the carriage of cargo by air and some draft provisions are applying the related provisions of the Korean Commercial Code in respect of the carriage of cargo by land and sea. In respect of the liability of the carrier in the carriage of cargo by air, the contents of the draft legislation of Part VI the Carriage by air are composed of the provisions in respect of the cause of the liability of the and the application for the non-contractual claim, the limit of liability, the exoneration from liability, the extinguishment of liability, the notice of damage to cargo, the liability of the agents and servants of the carrier, and the liability of the actual carrier and successive carrier. The draft legislation of the Carriage by Air of Korean Commercial Code is different from the provisions of the Montreal Convention is respect of the liability of the carrier in the carriage of cargo by air as follows : the draft Article 913 paragraph 1 provides additionally the riot, civil war and quarantine as the exoneration causes from the liability for damage to the cargo of the carrier in the Article 18 paragraph 2 of the Montreal Convention. In respect of the liability of the carrier in carriage of cargo by air, the draft legislation of Part VI the Carriage by Air does not provide the settlement by arbitration of dispute relating to the liability of the carrier and the requirement of adequate insurance covering the liability of the carrier which are provided in the Montreal Convention. In author's opinion, it is desirable that the above mentioned provisions such as the arbitration and the insurance shall be inserted into the draft legislation of the Carriage by Air of Korean Commercial Code. In conclusion, the legislation of Part VI the Carriage by Air of the Korean Commercial Code shall be made by the National Assembly as soon as possible for the smooth and equitable compensation for damage to cargo arising during the carriage by air.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.49
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• pp.283-324
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• 2011

The purpose of this paper is to research the air waybill and the carrier's liability in respect of the carriage of cargo by air under the Montreal Convention of 1999. The Warsaw Convention for the unification of certain rules for international carriage by air was adopted in 1929 and modified successively in 1955, 1961, 1971, 1975 and 1999. The Montreal Convention of 1999 modernized and consolidated the Warsaw Convention and related instruments. Under the Montreal Convention, in respect of the carriage of cargo, the air waybill shall be made out by the consignor. If, at the request of the consignor, the carrier makes it out, the carrier shall be deemed to have done so on behalf of the consignor. The air waybill shall be made out in three orignal parts. Under the Montreal Convention, the consignor shall indemnify the carrier against all damages suffered by the carrier or any other person to whom the carrier is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statement furnished by the consignor or on its behalf. The air waybill is not a document of title or negotiable instrument. Under the Montreal Convention, the air waybill is prima facie evidence of the conclusion of the contract, of the acceptance of the cargo and of the conditions of carriage. If the carrier carries out the instructions of the consignor for the disposition of the cargo without requiring the production of the part of the air waybill, the carrier will be liable, for any damage which may be accused thereby to any person who is lawfully in possession of the part of the air waybill. Under the Montreal Convention, the carrier is liable by application of principle of strict liability for the damage sustained during the carriage of cargo by air. The carrier is liable for the destruction or loss of, or damage to cargo and delay during the carriage by air. The period of the carriage by air does not extend to any carriage by land, by sea or by inland waterway performed outside an airport. Under the Montreal Convention, the carrier's liability is limited to a sum of 17 Special Drawing Rights per kilogramme. Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in this Convention shall be and void. Under the Montreal Convention, if the carrier proves that the damage was caused by the negligence or other wrongful act or omission of the person claiming compensation, or the person from whom he derives his rights, the carrier shall be wholly or partly exonerated from ist liability to the claimant to the extent that such negligence or wrongful act or omission caused the damage. Under the Montreal Convention, any action for damages, however founded, whether under this Convention or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in this Convention. Under the Montreal Convention, in the case of damage the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and at the latest, within fourteen days from the date of receipt of cargo. In the case of delay, the complaint must be made at the latest within twenty-one days from the date on which the cargo has been placed at his disposal. if no complaint is made within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on its part. Under the Montreal Convention, the right to damage shall be extinguished if an action is not brought within a period of two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped. In conclusion, the Montreal Convention has main outstanding issues with respect to the carrier's liability in respect of the carriage of cargo by air as follows : The amounts of limits of the carrier's liability, the duration of the carrier's liability, and the aviation liability insurance. Therefore, the conditions and limits of the carrier's liability under the Montreal Convention should be readjusted and regulated in detail.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.20
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• pp.213-239
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• 2003

This paper intends to describe the liability regime of the air carrier under the Montreal Convention of 1999 for the international cargo, comparing to those of the existing Warsaw Convention system. Also this paper deals with main issues of the Montreal Convention which are relevant for the carrier's liability in the carriage by air of cargo. The Warsaw Convention was adopted in 1929 and modified successively in 1955, 1961, 1971, 1975, and 1999. The Montreal Convention of 1999 modernized and consolidated the Warsaw Convention and related instruments. International air carrier is liable by application of principle of strict liability as stated in the Montreal Convention : The carrier is liable for the destruction or loss of, or damage to cargo and delay during the carriage by air, and the carrier's liability is limited to a sum of 17 Special Drawing Rights per kilogramme. However, the Montreal Convention has main outstanding issues with respect to the liability of the air carrier : potential conflicts between the Montreal Convention and the Warsaw Convention, the amounts of limits of the carrier's liability, the duration of the carrier's liability, the exessive litigation, and the aviation insurance. Therefore, the conditions and limits of the carrier's liability under the Montreal Convention should be readjusted and regulated in detail.

• The Korean Journal of Air & Space Law and Policy
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• v.21 no.2
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• pp.71-96
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• 2006

This paper intends to describe the carrier's duty for the delivery of international air cargo and the carrier's liability for the illegal delivery of cargo under the Montreal Convention, lATA Conditions of Carriage for Cargo and judicial precedents. Under the Article 13 of Montreal Convention, the consignee is entitled, on arrival of the cargo at the place of destination, to require the carrier to deliver the cargo to it, on payment of the charge due and on complying with the conditions of carriage. And unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the cargo arrives. Under the Article 18 of Montreal Convention, the carrier is liable for damage sustained in the event of the destruction or less of or damage to, cargo upon condition only that the event which caused the damage so sustained took place during the carriage by air. And the carriage by air comprises by the period during which the cargo is in the carriage of the carrier. Under the Article 11 of lATA Conditions of Carriage for Cargo, carrier is liable to shipper, consignee of any other person for damage sustained in the event of destruction of loss of, or damage to, or delay in the carriage of cargo only if the occurrence which caused to the damage so sustained took place during the carriage as defined under Article 1. According to the precedent of Korean Supreme Court sentenced on 22 July 2004, the freight forwarder as carrier was not liable for the illegal delivery of cargo to the notify party (actual importer) on the airway bill by the bonded warehouse operator because the freight forwarder did not designate the bonded warehouse and did not hold the position of employer to the bonded warehouse operator. In conclusion, the carrier or freight forwarder should pay always attention the movement and condition of the cargo not to be liable for the illegal delivery of cargo.

• The Korean Journal of Air & Space Law and Policy
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• v.1
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• pp.193-222
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• 1989

The purpose of this study is to review the rights and duties of cargo owners, the party to the contract of international carriage of goods by air under the Warsaw Convention System and the IATA conditions. It is generally known that air freight is the most-cost mode of transportation. However, should there be considerations of total distribution cost, the use of air freight leads exporters to be advantageous in physical distribution. The Warsaw Convention System defined and limited the rights and duties of cargo owners and air carriers paticipating in the international carriage of goods, but it does not regulate every aspect of air transportation. Therefore, the unregulated parts are governed by national laws and by individual contracts of carriage. The International Air Transport Association(lATA), a worldwide organization of airlines, has formulated model conditions of contract for the carriage of cargo. These models are not uniformly followed but they serve as a basis for many of the individual standard form of contracts prepared by air carriers. The contract of air carriage of goods is a contract of adhesion, 'the consignor recognizing and accepting the conditions laid down by the carrier'. There are consignors and carriers as the parties to the contract of international carriage of goods. In addition to his basic right, implied in Warsaw Convention Article 18 and 19, to require devery of the goods in good condition and at the date agreed upon, the consignor has the right to dispose the goods in the course of the journey up to the moment when the consignee is entitled to require delivery. If it is impossible to carry out the orders of the consignor, the carrier must so inform him forthwith. The right conferred on the consignor ceases at the moment when that of the consignee begins in accordance with Warsaw Convention Article 13. Nevertheless, if the consignee declines to accept the air waybill or the goods, or if he cannot be communicated with, the consignor resumes his right of disposition. Unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the goods arrive. The consignee is entitled, on arrival of the goods at the place of destination, to require the carrier to hand over to him the air waybill and to deliver the goods to him, on payment of the charges due and on complying with the conditions of carriage set out in the air waybill. The air waybill is supposed to be made out by the consignor. If the carrier makes it out, he is deemed, subject to proof to the contrary, to have done so on behalf of the consignor, whether there is one air waybill or several, each must be made out in three original parts. The first is for the carrier, the second is for the consignee, and the the third is handed to the consignor when the shipment has been accepted. The consignor is responsible for the correctness of the particulars and statement concerning the cargo appearing in the air waybill. Each of the original parts of the air waybill has evidential value and possession of his part is a condition for the exercise by the consignor or consignee of his rights under the contract of carriage. Hague Protocol set forth in Article 9 that nothing in this. Convention prevents the issue of a negotiable air waybill, but Montreal Additional Protocol No. 4 deleted this article. All charges applicable to a shipment are payable in cash at the time of acceptance thereof by the carrier in case of a prepaid shipment or at the time of delivery thereof by the carrier in case of a collect shipment. The carrier shall have lien the cargo for unpaid charges and, in the event of non-payment thereof, shall have the right to dispose of the cargo at public or private sale and pay itself out of the proceeds of such sale any and all such amounts. In conclusion, the Warsaw Convention System has the character of ambiguity in various respects, not only in the part of the forms of documents but also in conditions of contract. Accordingly, the following propositions might be considered: (1) If the carrier does not obey the orders of the consignor for the disposition of the goods without proper reasons, he will be liable strictly for any damage which may be caused thereby to the cargo owner. The special agreement and carrier's conditions of carriage which limit unreasonably the consignor's right of disposition of the goods will be nullified. (2) The instrument of the Warsaw Convention System which is not yet in force(Montreal Additional Protocol No. 4) would considerably simplfy the processing and keeping of computerized records of the carriage. Until this instrument enters into force, the airlines will be faced with practical problems preventing them to substitute computerized data processing techniques for the formal issuance of the documents. Accordingly, Montreal Additional Protocol No. 4 should become effective as soon as posisble. From a practical point of view in the international trade, the issuance of negotiable air waybill should be permitted for the security of the bank.

• The Korean Journal of Air & Space Law and Policy
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• v.23 no.2
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• pp.67-92
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• 2008

The purpose of this paper is to research the requirements and effect of the document of carriage in respect of the carriage of cargo by air under the Montreal Convention of 1999, IATA Conditions of Carriage for Cargo, and the judicial precedents of Korea and foreign countries. Under the Article 4 of Montreal Convention, in respect of the carriage of cargo, an air waybill shall be delivered. If any other means which preserves a record of the carriage are used, the carrier shall, if so requested by the consignor, deliver to the consignor a cargo receipt. Under the Article 7 of Montreal convention, the air waybill shall be made out by the consignor. If, at the request of the consignor, the carrier makes it out, the carrier shall be deemed to have done so on behalf of the consignor. The air waybill shall be made out in three original parts. The first part shall be marked "for the carrier", and shall be signed by the consignor. The second part shall be marked "for the consignee", and shall be signed by the consignor and by the carrier. The third part shall be signed by the carrier who shall hand it to the consignor after the goods have been accepted. Under the Article 5 of Montreal Convention, the air waybill or the cargo receipt shall include (a) an indication of the places of departure and destination, (b) an indication of at least one agreed stopping place, (c) an indication of the weight of the consignment. Under the Article 10 of Montreal Convention, the consignor shall indemnify the carrier against all damages suffered by the carrier or any other person to whom the carrier is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statement furnished by the consignor or on its behalf. Under the Article 9 of Montreal Convention, non-compliance with the Article 4 to 8 of Montreal Convention shall not affect the existence of the validity of the contract, which shall be subject to the rules of Montreal Convention including those relating to limitation of liability. The air waybill is not a document of title or negotiable instrument. Under the Article 11 of Montreal Convention, the air waybill or cargo receipt is prima facie evidence of the conclusion of the contract, of the acceptance of the cargo and of the conditions of carriage. Under the Article 12 of Montreal Convention, if the carrier carries out the instructions of the consignor for the disposition of the cargo without requiring the production of the part of the air waybill or the cargo receipt, the carrier will be liable, for any damage which may be accused thereby to any person who is lawfully in possession of that part of the air waybill or the cargo receipt. According to the precedent of Korea Supreme Court sentenced on 22 July 2004, the freight forwarder as carrier was not liable for the illegal delivery of cargo to the notify party (actual importer) on the air waybill by the operator of the bonded warehouse because the freighter did not designate the boned warehouse and did not hold the position of employer to the operator of the bonded warehouse. In conclusion, as the Korea Customs Authorities will drive the e-Freight project for the carriage of cargo by air, the carrier and freight forwarder should pay attention to the requirements and legal effect of the electronic documentation of the carriage of cargo by air.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.40
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• pp.97-144
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• 2008

The purpose of this paper is to review the text of national legislation relating to the carrier's liability in respect of the carriage of passengers, baggage and cargo by air in major states such as United Kingdom, Germany, France, Canada, Russia and China, and to compare the air carrier's liability under the national legislations of above states with them under the Warsaw System relating to the international carriage by air. Also this paper reviews the text of the draft legislation relating to the carrier's liability in respect of the carriage by air in Korea. The Warsaw Convention for the Unification of Certain Rules Relating to International Carriage was adopted in 1929. In 1999, the ICAO adopted the Montreal Convention for the Unification of Certain Rules for International Carriage by Air vastly modernizing the unification of private air law. The Montreal Convention replaced the instruments of the “Warsaw System”, and came into force on 4 November 2003. The Montreal Convention is not only an international convention. It has also exercised a considerable influence on national legislation. A the Convention, or certain of its principles, with the object of regulating their national air transport. The main feature of the liability regime of the air carrier under the Montreal Convention is the two-tier liability system for death or injury of the passenger with strict liability up to 100,000 SDR and presumptive liability with a reversed burden of proof without any limit above that threshold. The principles of the liability of the air carrier under the Montreal Convention have been adopted into national legislations by the United Kingdom, Germany, France, Canada, Russia and China. Now the Ministry of Justice of Korea is proceeding to make a new national legislation relating to the liability of the air carrier in respect of the carriage by air. The draft legislation of the Part VI the Carriage by Air of the Commercial Code of Korea has adopted the main principles of the liability of the air carrier under the Montreal Convention. In conclusion, the national legislation relating to the liability of the air carrier in Korea will contribute to settle efficiently the dispute on the carrier's liability in respect of the carriage of passengers, baggage and cargo by air.

• International Commerce and Information Review
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• v.12 no.2
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• pp.385-405
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• 2010

The purpose of this study is to investigate liability risk of air cargo carrier and suggests ideas for solving problems which could be happen to air transporters on the future. because of Air transport remains one of the world's fastest growing and most important industries. And important treaties and contracts specifying transporters' responsibility regarding big scale aircraft accidents are such as Warsaw Convention in 1929, Hague Protocol in 1955, Montreal Convention in 1999. The Montreal Convention, formally the Convention for the Unification of Certain Rules for International Carriage, is a treaty adopted by Diplomatic meeting of ICAO member states in 1999. It amended important provisions of the Warsaw Convention's concerning compensation for the victims of air disasters. In conclusion, suggests to the method of air cargo security and cargo legal liability insurance which is for air cargo carrier's risk management.