(Why is both 17SDR and 19SDR shown in 3.2 Valuation Charge of TACT Rules Book?)
Q.
In 3.2 Valuation Charge of the TACT Rules Book, both 17SDR and 19SDR is shown on the Table. It is understood that liability for cargo is set at 19SDR per kg. When would one apply 17SDR for claims compensation? Per Article 24 of MC99, due to the review of the yardstick every 5 years, from 2009, the liability was changed from 17SDR to 19SDR, and there would be no chance to use 17SDR. Thence, why is 17SDR still shown in TACT rules? However, the language of the conventions and protocols are not changed and they still carry 17SDR. Therefore, with the every 5 year review, there may be an instance where the liability limits may change further but never less than 17SDR as it is the ceiling limit. Please guide us on this question.

Furthermore, 17SDR or 19SDR may be used per stipulations of the applicable convention or protocol, we take that carriers who may elect not to be bound by IATA Resolutions, choose to use 17SDR as spelled out in the convention/protocol or by non-IATA carriers.  (31 Mar 16)
A.
You are totally incorrect. The local currency value of 17SDR and 19SDR shown in TACT Rules 2.3 Valuation Charge is for computation of Valuation Charges and the table is not for determining cargo liability payments. Valuation charges are calculated using 17SDR or 19SDR as the applicable convention/protocol may dictate. Instead of using the day-to-day SDR exchange rate, conversion is done by using the IATA Clearing House rate which changes only 3 times a year to simplify the conversion and yet arriving at a Valuation Charge within the ball park. Actual computation of cargo liability is decided by the SDR value on the day a compromise is finalized, or on the day of last hearing in the case of a court proceeds. However, per Article 4 of the AWB Conditions of Carriage, IATA has arbitrarily set 19SDR per kg as liability regardless of which convention/protocol may apply. If in the case of a court proceeding, the claimant may insist in applying the liability amount spelled out in the applicable convention/protocol, and the court has accepted (e.g., in the case of 250 French Gold Francs), the market value of pure gold on 3/18/2016 was JPY 4,909 per gram, 250 FGF will equate to JPY 72,346. If the court decides otherwise, settlement will be per 19SDR (e.g. JPY2,974 on 3/18/2016).

TACT 3.2 Valuation Charge has nothing to do with cargo liability payments. IATA decision of 19SDR per Article 4 of AWB Conditions of Carriage has not changed the wording of the original conventions/protocols, therefore Warsaw, Hague and Guadalajara are at 250 FGF on assumed liability, MP4 at 17SDR on absolute liability, and MC99 at 19SDR at absolute liability. Although, there would be less and less shipments moving under Warsaw/Hague, TACT 3.2 Valuation Charge should not be mixed up with the computation of cargo liability. Lastly, future review of liability (every 5 years) may come up with an amount less than 17SDR or more than 19SDR depending on the world consumer market. 17SDR is not an absolute yardstick.

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