• The Korean Journal of Air & Space Law and Policy
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• v.4
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• pp.65-85
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• 1992

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. 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", it shall be signed by the consignor and by the carrier and shall accompany the goods. The third part shall be signed by the carrier and handed by him to the consignor, after the goods have been accepted. According to the original Warsow Convention article 8, the air waybill must contain 17 particulars or items. However, the Hague Protocol reduced to three the number of particulars required to appear on the air waybill. Only one item is obligatory, namely, the notice that the carriage is subject to the rules of the Warsaw Convention. The absence of the air waybill entails unlimited liability of the carrier because it deprives him of the right to avail himself of the provisions of the Warsaw Convention which exclude or limit his liability. The consignor shall be liable for all damages suffered by the carrier or any other person by reason of the irregularity, incorrectness or incompleteness of the particulars and statements in the air waybill. Although the contract of the carriage of goods by air is not a formal contract, the document of carriage is issued. The issue of air wayhill is not essential for the existence or validity of the contract, but serves merely as a means of proof. The Hague Protocol has lessened the consequences of the carrier's neglect to faithfully accomplish the required formalities. Henceforth, these formalities no longer constitute legal obligations. The air waybill is the consignment note used for the carriage of goods by air. It is often called an air consignment note and is not a document of title or transferable/negotiable instrument. It is basically a receipt for the goods for despatch and is prima facie evidence of the conditions of carriage. 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 cosignee of his rights under the contract of carriage. Oveall, it is an usage that under a documentary letter of credit, the consignee on the air waybill is the opening bank of the letter of credit, and the notify party is the importer who applied for the letter of credit. In Korea there is an usage as to process of cargo delivery in air transportation as follows: The carrier carries the cargo into the bonded area of the airport and gives both the notice of arrival of the cargo and the consignee's air waybill to the notify party who is the importer. Then the notify party obtains the Letter of Guarantee from the opening bank in exchange for reimbursing the amount of the letter of credit or tendering the security therefor to the opening bank. The notify party then presents this document to the customs authorities for the process of customs clearance. The opening bank becomes a consignee only to ensure repayment of the funds it has expended, and the only interest of the opening bank as consignee is the reimbursement of the money paid to the exporter under the documentary letter of credit. Just as the bill of lading in maritime law, the air waybill has always been considered negotiable although the Warsaw Convention does not emphasize this aspect of negotiability. However, the Hague Protocol article 4 corrected the situation by stating that "nothing in this Convention prevents the issue of a negotiable air waybill." This provision officially recognizes that the air waybill must meet the needs of the present day business circles by being a negotiable instrument. Meanwhile, Montreal Additional Protocol no. 4 has brought important changes. Registration by computer is acceptable and the parties to the contract of carriage are allowed to replace the air waybill with a receipt for the goods. In conclusion, as the Warsaw Convention has not details of provisions relating to the issuing of the negotiable air waybill, it is hoped that there should be supplement to the Warsaw Convention and establishment of international commercial usage with regard to the negotiable air waybill.

• 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 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 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 Korean Journal of Air & Space Law and Policy
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• v.13
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• pp.151-166
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• 2001

• The Korean Journal of Air & Space Law and Policy
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• v.19 no.1
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• pp.213-233
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• 2004

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.45
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• pp.85-109
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• 2010

L/C provides the exporter and the importer with safe assurance in the exchange of goods for payment in international trade. It involves a number of parties. Although the parties may have confidence in their client, bad faith or ignorance of international banking practice by any of these parties could cause the failure of transaction, which makes international trade a risky business. Most of the risks are found in transport document, which can cause disputes. There are many factors in the risk of transport documents under L/C transaction. One most common risk factor for the beneficiary in all transport documents is even if there is no discrepancy in document, the issuing bank or the applicant refuses to pay or delay payment insisting there is a discrepancy. In some very rare cases, the beneficiary may not get paid due to unfair injunction of the local court of the applicant. For the applicant, most common risk factors are fake bill and fraud. Risks classified according to the sorts of transport documents are as follows. 1. In B/L, payment can be refused because it is regarded as charter party B/L, although there is no real charter party contract. And the applicant can bear the potential risk of the loss or deterioration of cargo through transhipment of the cargo loaded on board in container if transhipment is prohibited without excluding of UCP 600 article 20 (c). 2. In charter party B/L, the applicant may take delivery without paying when charter party B/L is signed by charterer, which can result in a big loss for the beneficiary and the negotiating bank. And risks may arise when cargo is seized because the charterer does not pay the hire. The applicant and the issuing bank are also vulnerable to a risk - Against whom should they file a suit when cargo gets damaged during transportation? 3. In multimodal transport document, which is subject to a conflict because there is a big difference in viewpoints between transport industry and banks, conflicts may also arise when L/C requires ocean B/L and accepts multimodal transport document at the same time, but does not specify the details. 4. In air waybill, where the consignee is not the issuing bank but the applicant, risks may take place to the beneficiary when the applicant takes delivery but refuses to pay asserting minor discrepancies in document. The applicant may also bear the risk when cargo may not be loaded because air waybill is a received bill. Another risk may arise when although the applicant prohibits transhipment without excluding UCP 600 article 23 (c), the cargo may be transhipped, provided that the entire carriage is covered by one and the same air waybill.

• The Korean Journal of Air & Space Law and Policy
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• v.30 no.2
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• pp.177-199
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• 2015

Commerce enriches human life enriched and within commerce, transportation of cargo is arguably the most important in business transactions. Traditionally, marine transport has been major commercial transaction, but carriage cargo by air is on the increase. While the fare for freight in comparison with that of ocean is higher, air freight has many benefits that justify the higher shipping fee; lower insurance premium, packing charges, inventory control, cost management and especially speed. Therefore, air freight transport is accumulating gradually. An air waybill(AWB) is needed in the air transport flow. It is a nonnegotiable security, so the holder cannot transfer of a right to a third party. Some scholars suggest that a negotiable AWB is needed. However, it seems nearly impossible to do so; an e-AWB use shows a gain in numbers, even if it has not met expectations. Going forward, it would appear reasonable to conduct a follow-up study on the utility and legal problem for e-AWB. After sending goods, the consignor has the right of disposition of cargo in some cases, and more research is necessary, because it is related to change of ownership and a trade settlement. According to WATS (World Airlines Transport Statistics), the Korean Air took third place in international freight in 2014, and fifth in total, domestic and international to great acclaim. However, there is a lack of research supporting the business showing. It is hope that more studies on e-AWB, stoppage in transit, and a risk of outstanding amount, etc. connect to develop Korean air freight industry.

• The Korean Journal of Air & Space Law and Policy
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• v.31 no.1
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• pp.3-36
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• 2016

Recently, the Supreme Court of Korea delivered a milestone judgment about air related multimodal transport. At there, the mattered cargo, some expensive jewellery, was transported from Qingdao, China to downtown office of consignee at Seoul via Incheon airport in Korea. As an air waybill was issued in this case, there was an air transport agreement between consignor and air courier operator. After arriving at Incheon airport, the shipment was transport by land arranged by the air courier operator, who was a defendant in this case. Upon arriving at the final destination, it was found that the jewellery was lost partly and based on circumstantial evidence, the damage presumed to be occurred during the land transport. As a subrogee, the insurance company who paid for consignee filed an action against the air courier operator for damage compensation. Defendant contended that Montreal convention should be applicable in this case mainly for limited liability. The lower court of this case confirmed that applying the limited liability clause under Montreal Convention is improper under the reason that the damage in this case was or presumed to be occurred during surface transport. It was focused on the Montreal Convention article 18 which says that 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. However, the Supreme Court overturned the lower court's decision. The delivered opinion is that the terms of condition on the air waybill including limited liability clause should be prevailed in this case. It seems that the final judgment was considered the fact that the only contract made in this case was about air transport. This article is for analysis the above decisions from the perspective that it is distinguishable between a pure multimodal transport and an expanded air transport. The main idea of this article is that under the expanded air transport, any carriage by land, sea or inland waterway only for the performance of a contract for carriage by air, for the purpose of loading, delivery or transhipment is still within the scop of air transport.

• 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.