You are here:

Logistics/Supply Chain/trucks standing at border due to customer

Advertisement


Question
i have a small transport business and had 2 trucks standing at the border of tanzania for more than 33days due to customer that has not paid the import duties and import taxes of tanzania. can i hold customer liable for standing time and loss of income?

Answer
Dear Elizabeth
All will depend on the INCOTERM you dealt the business. The incoterm will define who is responsible for what in a given operation. If you dealt FCA for example, then the buyer will be responsible for demurrage etc as he is the one who contracted the carrier. If you dealt CIP Border, you will be going to pay the demurrage for the truck company. Loss of income is something that you can forget. If you shipped stuff for someone who cant pay, it is your problem. Of course you can always try the courts but I doubt 2 truck loads will worth the case. It seems to me you failed in evaluating the buyers financial capability. Take back the trucks or sell to someone else near the border asap in order to mitigate your losses.

Logistics/Supply Chain

All Answers


Answers by Expert:


Ask Experts

Volunteer


John Laurino

Expertise

I can assist people interested in exploring both operational and logistics issues in projects concerned to various industry segments in Brazil.

Experience

I have been working as a international business advisor for 12 years.

Organizations
Unit Brazil

Education/Credentials
MBA

©2016 About.com. All rights reserved.