Document background
The Ad Valorem Bill of Lading is a critical document in maritime trade, particularly relevant in the Philippine jurisdiction where sea transport is fundamental to commerce. This document type is specifically used when parties need to declare the actual value of goods being shipped, unlike standard bills of lading where value declaration is optional. It serves multiple purposes: as a receipt confirming the carrier's acceptance of goods, as a document of title enabling the transfer of ownership, and as a contract of carriage outlining transport terms. The declared value affects both freight charges (typically calculated as a percentage of the cargo's value) and liability limits. In the Philippines, this document must comply with local maritime regulations, the Civil Code, and international conventions ratified by the Philippine government. It's particularly important for high-value shipments, insurance purposes, and when required by letters of credit or other financial instruments.
