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Keep Customs in the loop when changing bookings, say insurers
[ July 5, 2022 // Chris Lewis ]Do not forget to inform customs after making changes to ocean freight bookings, warns the International Transport Intermediaries Club (ITIC), after it handled a recent claim.
In this instance, a Colombian-based agent was asked to amend a booking on behalf of the carrier. Originally, the booking was split over two bills of lading but the carrier requested that it be consolidated into a single bill, well before the cargo arrived in Colombia.
The agent made the changes on the carrier’s system, but omitted to make similar amendments on the local customs system.
When the cargo receiver presented the import declaration and paid the taxes on the cargo, it was not possible to link the payment with the consolidated single bill of lading included in the import declaration as the local customs system was still showing two separate bills.
To rectify the problem, the receiver was asked to provide a new import declaration but was unsure whether to agree with the request and, during this delay, container detention and warehousing costs were escalating.
The receiver eventually agreed but the cargo had been delayed by almost a month. As a result, it made a claim against the carrier who then made a counter-claim against the agent for $32,000.
Unsurprisingly, the agent had no defence as the negligence on their part for not updating the customs system was undisputed. Local legal representation, arranged by ITIC, was successful in eliminating the possibility of a customs fine and ITIC settled the claim on behalf of the agent.
ITIC is keen to raise this case as a warning to intermediaries to check and re-check amendments to bookings and to ensure all relevant paperwork is raised and authorities are duly notified when changes are made.
Tags: International Transport Intermediaries Club, ITIC