(1) With respect to damage resulting from the loss of or damage to cargo, a carrier shall be liable only when the damage was incurred during carriage by air (including the period of time when the carrier takes custody of the cargo; hereafter the same shall apply in this Article): Provided, That the carrier shall not be liable when it proves that the loss of or damage to the cargo was caused by any of the following:
1. An inherent defect, extraordinary character, or hidden defect of the cargo;
2. Inappropriate packaging or incomplete marking of the cargo done by a person other than a carrier, its employees, or agents;
3. War, riot, rebellion or armed conflict;
4. Action taken by a public organization that is associated with the arrival and departure of the cargo, quarantine, or customs procedures;
5. Force majeure.
(2) No carriage by air prescribed in paragraph (1) shall include any carriage by land, by sea, or by inland waterway performed outside an airport: Provided, That where such carriage is performed for loading, delivering, or trans-shipping cargo as part of performance of a contract of carriage, it shall be presumed carriage by air.
(3) With respect to carriage scheduled to be made by air in accordance with an agreement between a carrier and a consignor, where the carrier substitutes other means of carriage for the whole or any part of the scheduled carriage by air without the consent of the consignor, the carriage by other means shall be deemed carriage by air.[This Article Newly Inserted by Act No. 10696, May 23, 2011]