U.S. Customs clarifies “said to contain” prohibition

U.S. Customs clarifies “said to contain” prohibition

U.S. Customs clarifies “said to contain” prohibition

   U.S. Customs and Border Protection has confirmed that the prohibition of the clause “said to contain” in vessel manifests submitted to the authorities does not also apply to bills of lading issued by ocean carriers, the Through Transport Club reported.
   The TT Club, an insurance mutual based in London, sought the clarification from U.S. Customs after its members expressed concern that the ban on the use of the traditional clause would expose them to financial liabilities when the cargoes shipped in containers did not match exactly those described in the B/L.
   However, U.S. Customs has told the TT Club that the Automated Manifest System rules “do not control the language of the bill of lading,” but only the type of reporting that has to be made to customs.
   Providing that there is an adequate description of the goods, the words “said to contain” may still be used in B/Ls, the mutual club has advised its members.
   The term “said to contain” on B/Ls “is an important protection against certain types of cargo claim … and the clarification will help dispel fears about the loss of this defense,” the TT Club said.
   Normally an ocean carrier is responsible for any shortages in cargo, discovered at destination, based on the quantity originally stated in the bill of lading. However, using containers, carriers cannot check every shipment, and rely on the shipper’s description of the cargoes to produce the B/L that is claused as “said to contain.”
   “While the exact cargo details, weight and seal number must be replicated on the advance manifest system, that does not preclude the format of the wording on the bill of lading from varying slightly, for example to comply with the terms of a letter of credit,” said Andrew Trasler, claims director of the TT Club.