Customs Delays and Demurrage: Who Bears the Cost?
Prepared by the Maritime & Admiralty Team at Soliman Advocates
This article has been prepared by the firm's maritime lawyers as part of Soliman Advocates' Maritime Legal Insights series, drawing on the team's experience in Egyptian maritime law and shipping disputes.
A vessel may be delayed at an Egyptian port because cargo has not been released by Customs due to a dispute over valuation, classification, documentation, inspection or clearance requirements.
The resulting loss is not limited to customs duties. The delay may generate demurrage, storage charges, port expenses and additional operating costs.
However, the fact that customs clearance was delayed does not automatically make one party liable.
Liability depends on the actual cause of the delay, the party responsible for completing the relevant procedures or providing the required documents, the charterparty or contract of carriage, and the respective obligations of the shipper, charterer, receiver and other cargo interests.
For grain and bulk cargoes, the consequences may be particularly significant because of discharge and storage operations. For containerised cargo, delays may instead result in detention, storage or additional port charges.
Determining liability therefore requires assessment of the actual cause of the delay, sequence of events, correspondence, customs and shipping documents and applicable contracts.
Legal Disclaimer
This article is provided for general information only and does not constitute legal advice or a legal opinion on any specific matter. Liability and procedures may vary depending on the cargo, contractual arrangements, facts and applicable regulations. For advice concerning a specific matter, professional legal consultation is recommended.
Facing a live maritime matter?
Our team is available 24/7 for urgent ship arrest and time-critical applications in all Egyptian ports.