When the Charterer's Cargo Creates a Customs Problem for the Shipowner

The cargo carried by a vessel may belong to the charterer, shipper or importer, yet a customs issue concerning that cargo may nevertheless affect the vessel or expose the shipowner to claims or proceedings.

The issue may concern the description, documentation, value, classification or customs clearance of the cargo, matters that may not be directly within the shipowner's control.

However, the fact that the problem concerns the charterer's cargo does not, by itself, determine liability. The position may depend on the nature of the customs action, each party's role, the charterparty, cargo documents and the capacity in which the agent or other representative acted before the authorities.

The issue becomes particularly important where the dispute results in cargo detention, delayed discharge, prolonged port stay or costs and claims affecting the vessel or shipowner.

Protecting the shipowner therefore begins with clearly defining the respective responsibilities of the charterer, shipper and cargo interests, and ensuring that instructions, documentation and actions taken on behalf of the vessel are properly controlled.