Monday 13 October 08 - 22:21
 

Insurance, Legal & Finance

Secure the Supply Chain, Say Marine Solicitors

The Commission of European Communities has issued a proposal, the purpose of which is to enhance maritime transport security in the European Union.

What containers are said to contain is best established at the start of the supply chain. (Photo courtesy of the Port of Felixstowe).
What containers are said to contain is best established at the start of the supply chain. (Photo courtesy of the Port of Felixstowe).

In its proposal, the Commission calls for greater clarity and transparency in the logistic chain, noting that ''Security must be built in at all stages of maritime transport operations.

It is clear that in the biggest ports in the Community in particular where there is a steady flow of containers, not all containers can be inspected even using x-ray equipment. On the other hand, it seems equally inconceivable to accept that in the future the content of these containers should be described as 'said to contain'.'' The Commission seem to have taken a similar position to the United States on transportation of goods and the use of the term "said to contain".

In previous reports prepared by the Marine and Goods in Transit division of London law firm Davies Lavery, it was noted that exporters will eventually be affected as much as, if not more than the vessel owners, NVOCCs or the party in charge of giving information to US Customs. The Commission's position shows the same will be the case of any port in the European Community.

The firm's recent reports also recognised that letters of indemnity were already being sought by carriers to pass any potential liability back down the contractual chain with regard to the provision of incorrect or insufficient information. Samuel Perez-Goldzveig of the Marine and Goods in Transit team said, "This clearly shows that security must commence from the moment the goods are transported for the export/import market, at harvest, slaughter, or whichever process takes place immediately before packing. Each party involved from the producer onwards needs to be able to verify security."

Davies Lavery says the question for consideration is, does the Commission account for the pre-packing process as part of the transportation? The time when the goods are put inside the package and then in the container is the only time when the contents are truly known. The one in charge of the packing is, in reality, the only one who can certify the contents.

Kay Pysden, head of the Marine and Goods in Transit division, added, " Said to contain' is not necessarily the problem, but rather the unwillingness to properly secure the supply chain back to the original source. It is of course easier to place liability with the supplier of the information at the port rather than the original supplier or producer."

MJ Information No: 18339

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What containers are said to contain is best established at the start of the supply chain. (Photo courtesy of the Port of Felixstowe).

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