Liability of Logistics Service Enterprises: To What Extent?

Liability of Logistics Service Enterprises: To What Extent?
Le Hai

Limit of liability is the maximum threshold that the logistics service provider is responsible for compensating the customer for any losses incurred during the process of organizing and performing logistics services.

At Article 5 of Decree 163/2017/ND-CP, it is stipulated that in cases where relevant laws provide for limitations on the liability of traders providing logistics services, the provisions of the relevant laws shall apply.

However, if the relevant laws do not stipulate any limitation on liability, the limitation of liability of traders providing logistics services shall be determined by the agreement between the parties.

In cases where there is no agreement between the parties, the following shall apply:

- In cases where the customer does not inform in advance about the value of the goods, the maximum liability limit shall be 500 million VND for each claim.- In cases where the customer has informed in advance about the value of the goods and the trader providing logistics services has confirmed it, the liability limit shall not exceed the value of the goods.

The limitation of liability in cases where the trader providing logistics services performs multiple stages with different liability limits shall be the highest liability limit among the stages.

See more at Decree 163/2017/ND-CP which takes effect from February 20, 2018.

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