South American Clause Law and Legal Definition

South American Clause is a clause in a cargo policy defining when coverage terminates on shipments to South America. On such shipments, this clause overrides both the Warehouse to Warehouse Clause and the Marine Extension Clauses and extends coverage after discharge from the overseas vessel. Coverage under South American Clause ends when the cargo is delivered at the final warehouse at the destination named in the policy, or 60 days after discharge from the overseas vessel, or 90 days after discharge from the overseas vessel on shipments via the Magdalena River.