February 2001

Product descriptions might seem obvious, but if you're trying to get the product through Customs, legal correspondent Owen Keane warns that it can pay dividends to make sure everyone knows what they mean

"You didn't tell me."

"But you didn't ask!"

How often do we say things like this in everyday life? Unfortunately, in a commercial environment this type of exchange usually means things have gone wrong, and frequently represents the opening salvo in a series of more unwelcome exchanges that can end in claims for compensation.

The world of logistics exacerbates these situations, since any gap in information is magnified as it passes among all the parties involved. Naturally the scope of information required can be as varied as the items conveyed.

In a recent incident, a prototype product was delayed by Italian Customs because the carrier had not completed all the information required for the carnet covering it. As a result, the research exercise for which it was intended had to be aborted, and substantial wasted expenses were run up. These ranged from the cost of hiring an exhibition hall and research team to the ultimate delay in actually starting production of the item. How much of such costs would be recoverable would depend on the precise circumstances, but it can be expected that there would be repercussions.

At its heart, the root cause of such a situation is a lack of communication. The right information was not available, and that raises a fundamental question: why not? For carriers, the issue can be expressed quite simply. Is there anything about the consignment which they would want to know, and which is not obvious or that they might not expect?

Whilst prototypes are only transported occasionally, there are many items which have characteristics that require special handling, and which need to be identified. In some instances this might be obvious, as would be the case with glass or potentially dangerous items. That's a very different matter from delays caused by issues such as incomplete Customs declarations, which are wholly dependent on the particular requirements of the individual country involved. But the fact is that both types of special consideration require action as soon as they become evident.

Whilst many carriers use the short-form Customs declaration for their consignments, and rely on this for the smooth passage of an item, the carrier should have a process for ensuring that all the information required to ensure a smooth delivery is obtained at the time of despatch.

For example, if a customer who completes the description part of a declaration simply writes "bulbs", does this mean electric light bulbs or Dutch tulips? In either case, special care is required. If they're electric lights, they demand suitable packaging; if they're plants, the carrier needs to ensure that the destination country does not prohibit their import, and that any special requirements have been complied with (the UK, for instance, has strict controls on bulb imports). There should be clear policy on what to do about such matters. The bulbs may in fact be unsuitable for transport in the first place because it would be illegal.

So who bears the burden of providing the information? The simple answer is that there should be a balance. When the description is completed, the carrier needs to consider whether sufficient information has been given before accepting the item. It is at this stage that the onus moves from the customer to the carrier, who has effectively been "put on notice". From the customer's perspective the issue is simple; as soon as the item is accepted by the carrier their involvement finishes, and the rest is down to the carrier.

Clearly, training and education are essential to ensure that the collection or receiving agent recognises potential problems early on, and is able to resolve any questions before either delays or worse eventualities occur. Carriers must also be clear about the allocation of responsibilities; errors may lead to disputes and the loss of future contracts, even where the carrier reasonably considers itself wholly blameless. By resolving any questions early the carrier can ensure a high-quality service, and avoid potentially costly delays for all involved.