For an importer in North India, bad news usually arrives at the depot, not the port. The container left the port of discharge sealed and on time. Only when the doors open at ICD Tughlakabad, Dadri, Patparganj or Garhi Harsaru do the wet cartons, crushed pallets or short count come to light.

What you do in the next 72 hours decides most of what you can recover later. This is the checklist we work through when a client calls us from a depot.

Why the first three days matter

Most bills of lading bring in the Hague or Hague-Visby Rules. Under Article III rule 6 of those rules, visible damage should be noted in writing when the goods are taken over. Damage that is not visible should be notified in writing to the carrier within three days. A claim against the carrier must be brought within one year of delivery.

Missing the three-day notice does not always end a claim. But without it, the delivery itself counts as first evidence that the goods arrived as described in the bill of lading, and you have to prove otherwise. The one-year time bar is far less forgiving.

Your cargo policy adds its own duty. Clause 16 of the Institute Cargo Clauses, the standard wording in most marine cargo policies, asks you to take reasonable steps to avoid or reduce the loss. It also asks you to make sure that rights against carriers and others are “properly preserved and exercised”. If a delay on your side loses the recovery against the carrier, expect your insurer to raise it.

The checklist

  1. Stop before you sign. Do not sign a clean delivery receipt. Write what you see on the delivery documents, for example “container damaged”, “seal broken” or “cargo wet”, with the date and time. Ask the depot to sign or stamp it.
  2. Photograph before de-stuffing. Take the container number, the seal and its condition, the doors, roof and floor, and then the cargo as it sits inside. Take wide shots first, then close-ups. Keep the original files, because they carry the date and time.
  3. Pause de-stuffing if the damage is serious. Ask the depot to hold the container as it is until a surveyor attends. Every carton moved before the survey is a carton whose condition can be argued about later.
  4. Give written notice the same day. Email the shipping line or its agent, and the depot or CFS operator. Describe the damage, quote the bill of lading and container numbers, and hold them responsible. Keep it short and factual.
  5. Tell your insurer or broker straight away. Ask whether they will appoint a surveyor. For claims above a set amount, Indian insurers rely on the report of an IRDAI-licensed surveyor, so expect them to send one.
  6. Invite the carrier to a joint survey. A survey attended by both sides is much harder to dispute. If the carrier declines, keep a record that it was invited.
  7. Keep the damaged cargo and packing. Do not destroy, sell or repack anything until the surveyors agree. The packing often shows the cause: condensation, a hole in the roof, poor stuffing.
  8. Ask Customs about abatement of duty. Under section 22 of the Customs Act, 1962, duty on imported goods damaged before or during unloading in India, or damaged after unloading but before examination by an accident that was not your fault, can be reduced in proportion to the loss in value. Raise it with the proper officer before you pay full duty on goods that are no longer worth their invoice value.

The documents you will need

  • Commercial invoice and packing list
  • Bill of lading, including any through or multimodal bill to the depot
  • Delivery documents carrying your remarks
  • Photographs and survey reports
  • Your notice letters and any replies
  • The insurance policy or certificate
  • Records of repair, salvage or sale that show the loss in value

Carrier, depot or packer?

Damage found at a depot can start anywhere: at stuffing, on the vessel, during rail haulage or in the depot yard. Where it started decides who you claim against. Condensation damage behind an intact seal points one way. A punctured container roof points another. A careful survey on the first day is what tells them apart.

This is also why you may need your own record of the cause. The insurer’s surveyor assesses your loss under the policy. A recovery from the party responsible needs evidence of how the damage happened, collected while it can still be seen.

Where Lex Dux fits

We are based in Delhi NCR, close to the inland depots where much North India cargo is opened. We attend for the cargo owner, record the damage, prepare the claim file and support recovery from the carrier. We do not sell insurance, and we do not act as your insurer’s surveyor.

If your cargo is damaged now, use our Report a Cargo Loss form or call +91 98714 19797. Our approach is set out on the Cargo Claims & Insurance Advisory page.

This article is general guidance for cargo owners. It is not legal advice. The rules that apply depend on your bill of lading, your policy and the facts of the loss.

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