Section 3 of the The Carriage of Goods by Sea Act 2025 Application of Schedule

Section 3 of the The Carriage of Goods by Sea Act 2025 Application of Schedule

Visual Summary

Executive Summary

This section is the core trigger of the Act. It states that the detailed ‘applicable rules’ found in the Schedule of the Act automatically apply to any goods being transported by ship from a port in India to any other port in the world, including other ports within India. In simple terms, if your cargo leaves an Indian port by sea, these rules govern the responsibilities and rights of the shipping company.

In-Depth Analysis of the Section

Section 3 establishes the scope of the Act’s primary rules. It’s a short but powerful clause that defines exactly when the complex regulations on carrier liability, rights, and responsibilities come into play.

The key phrase is ‘from any port in India to any other port, whether in or outside India’. This means the Act governs all ‘outward-bound’ sea cargo. It covers both international exports and domestic coastal shipping that originates from an Indian port.

The term ‘Schedule’ refers to an appendix of the Act which contains the detailed international rules (based on the Hague-Visby Rules) for sea carriage. Section 3 makes this Schedule legally binding for the specified journeys. This ensures a uniform standard for liability and documentation, aligning Indian law with global maritime practices.

Practical Example:
Imagine a small business in Jaipur exports handcrafted furniture to a buyer in Australia. The furniture is packed into a container and loaded onto a ship at the Mundra Port in Gujarat. The moment the goods are set to be carried from Mundra, Section 3 of this Act kicks in. The ‘applicable rules’ in the Schedule now govern the contract between the Jaipur business (the shipper) and the shipping line (the carrier). This determines who is responsible if the furniture is damaged during the voyage, what needs to be on the bill of lading, and the time limits for making a claim.

In conclusion, Section 3 is the gateway provision. It clearly defines the geographical and operational trigger for the Act’s main rules, ensuring that all goods shipped by sea from India are protected by a standardized legal framework.

Related Provisions

Understanding Section 3 is enhanced by looking at other sections that build upon its foundation. Here are a few key related provisions:

• Section 2: Definitions – This section is crucial as it defines key terms used in Section 3, such as ‘applicable rules’ and ‘Schedule’, providing the necessary context to understand what is being applied.
• Section 5: Statement as to application of Schedule to be included in bills of lading – This is a direct consequence of Section 3. Because the rules apply to shipments from India, Section 5 mandates that the shipping documents (bill of lading) must explicitly state this fact.
• Section 4: No implied absolute undertaking in contracts to which applicable rules apply – This section clarifies a specific legal point about the carrier’s duty for contracts where the rules apply, directly connecting to the scope established by Section 3.

Learning Aids

Mnemonics

• SEA: Schedule Effective Anywhere (when shipping from India). This helps remember that the Schedule’s rules apply to all sea journeys starting in India, regardless of destination.
• PORT: Provisions Of Rules Triggered (from an Indian port). This emphasizes that the starting point of the journey is what activates the law.

Mind Map

Frequently Asked Questions

Test Your Knowledge