Short answer. It can matter a great deal. Article 1749 of the Civil Code allows a stipulation limiting the common carrier's liability to the value stated in the bill of lading, and that stipulation is binding unless you declare a greater value. Leaving the declared value low can cap what you recover if the shipment is lost or damaged.
What the law says
A stipulation that the common carrier's liability is limited to the value of the goods appearing in the bill of lading, unless the shipper or owner declares a greater value, is binding.
Civil Code, Article 1749 — Value in the Bill of Lading. Read the full provision →
The stipulation the article recognizes as valid
Article 1749 confirms that carriers and shippers may agree to a cap on liability: a stipulation that the common carrier's liability is limited to the value of the goods appearing in the bill of lading, unless the shipper or owner declares a greater value, is binding. This tells you that a limitation-of-liability clause tied to the declared value is not automatically void or unenforceable — the law treats it as a legitimate part of the shipping contract, provided the condition attached to it is met.
The declared value is the escape hatch
The clause the article validates has a built-in exception: unless the shipper or owner declares a greater value. Declaring a higher value is the specific mechanism the article gives you to avoid being bound by whatever figure already appears on the bill of lading. If you say nothing and the document already states a value, that stated figure is what the carrier's liability can be limited to if something goes wrong — the article does not require the carrier to guess at, or independently verify, what the shipment was really worth.
Why the number on the document matters more than what you believe
Because the binding cap is tied to the value of the goods appearing in the bill of lading, what actually controls is the figure written on that document, not your private understanding of what the shipment is worth. A shipment genuinely worth far more than the figure declared on paper can still leave you recovering only that lower, declared amount if loss or damage occurs — the article makes the paper figure, not the real value, the operative one once the stipulation is in place.
What this means before you ship
If the value of what you are shipping exceeds what would ordinarily be written on the bill of lading, Article 1749 gives you a clear reason to declare the higher figure before the shipment moves, since that declaration is what keeps the stipulated cap from applying to your loss. Reviewing the bill of lading for a limitation-of-liability clause, and checking the value it states against what the shipment is genuinely worth, is the concrete step this article points toward.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Philippines Charter Insurance Corp. vs. Neptune Orient Lines/Overseas Agencies Services, Inc, G.R. No. 145044, June 12, 2008 — read the decision on LawPhil →
- Edgar Cokaliong Shipping Lines, Inc., vs. UCPB General Insurance Company, Inc, G.R. No. 146018, June 25, 2003 — read the decision on LawPhil →
- Everett Steamship Corporation vs. Court of Appeals, et al, G.R. No. 122494, October 8, 1998 — read the decision on LawPhil →