What are the liability limits of an airline in the case of cargo damage or loss? What is the compensation amount?

According to Article 4 of the Administrative Regulation No.11/2004, an airline should compensate the consignor in the case of destruction, loss, damage or delay in carriage of cargo, as long as such damages occur on board the aircraft or at any other moment in which the airline is responsible for the cargo. In addition, two points must be noted here: 1. If the situation is due to the characteristics, quality or defect of the cargo, defective packing, an act of war or an armed conflict or an an act of public authority carried out in connection with the entry, exit or transit of the cargo the liability of the airline can be waived or limited. 2. If the airline can prove that it took all reasonably required measures to avoid the occurrence of such damages or losses or if it demonstrates that taking such measures was impossible, the airline is not held responsible for the delay. Bad weather and air traffic control delays are situations that the airline cannot prevent. Therefore, when the delay is due to bad weather or air traffic control reasons the airline is not liable for damages caused by the delay of carriage of cargo.

In what regards the actual amount of compensation, the airline will define the amount after analyzing the impact of the situation on the passenger. According to Article 8 of the Administrative Regulation No. 11/2004 as amended by the Administrative Regulation No.19/2011, the uppermost limit to be paid by the airline is 170 Special Drawing Rights per kg (Please click  to refer to the USD-equivalent, and then exchange to MOP-equivalent), unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the consignor's actual interest in delivery at destination