Cargo Liability: High-Value, High-Tax Goods

This podcast episode discusses a legal case involving a stolen shipment of cigarettes and the subsequent dispute over who should pay for the excise duty. The case revolves around the interpretation of Article 23.4 of the CMR Convention and the question of whether excise duty on stolen goods should be considered as 'other charges' under the convention. The UK Supreme Court ultimately upheld a previous decision that carriers should be responsible for paying the excise duty. The episode highlights the importance of appropriate cargo insurance coverage, understanding international conventions, and being prepared for legal battles in the logistics industry.

Takeaways

• Cargo Liability Insurance coverage should reflect not just the value of goods, but potential tax liabilities as well.
• Understanding the interpretation of international conventions can significantly impact the outcome of legal disputes in the logistics industry.
• Following guidelines for delivering 'Thief attractive goods' can be crucial for insurance coverage.
• Legal consequences in international shipping can far exceed the value of stolen goods, highlighting the importance of being prepared and having comprehensive insurance coverage.

Links to source:

• New Judgment: JTI POLSKA Sp. Z o.o. and others v Jakubowski and others [2023] UKSC 19 – UKSCBlog

Chapters

• 1:23 The Question of Excise Duty Payment
• 3:36 Interpreting Article 23.2 of the CMR Convention
• 4:35 Cargo Liability Insurance Considerations for High-Value Goods
• 5:25 The Impact of Jurisdiction in Legal Disputes
• 6:25 The Importance of Comprehensive Insurance Coverage