216 - 10/01 - Fraudulent Shipping of Used Vehicle Tyres - Ex USA - India

Recently, several major ocean carriers of containerised cargo contracted to ship used tyres from New York to Nhava Sheva, India. All of the several hundred containers involved were shipped by one shipper to several Indian consignees. Upon delivery of the containers in India, the consignees named on the bills of Lading unequivocally denied having knowledge of the shipments or shipper, and refused to accept delivery or pay outstanding freight.

The containers were seized by Indian Customs because the import of used tyres to India requires a special permit that had not been obtained by the shipper. It has been reported that the shipper has no permanent address or assets.

The result is that the ocean carriers have not been paid freight; lost the use, at least temporarily, of the containers; are liable for customs fines, mounting storage costs, and disposal costs for the tyres, for which there is no market.

Extreme caution must be exercised when contracting to carry used vehicle tyres.

Source of Information: David Perks (J1) David Grammas (New Jersey)

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