Buyers’ refusal to accept the cargo on CIF terms due to discrepancies in EUR 1

The Client, large foreign trader, applied to Interlegal upon the issue of demurrage recovery under the Sales Contract of agricultural products over 3,000.00 MT on CIF terms, the Italian port. The goods were exported within the EU customs territory.

The dispute arose due to discrepancies in the data of contractual documents and remarks of the Italian customs service against the Certificate EUR 1. The Buyer refused to discharge the cargo for the reason of initiated investigation and official prohibition of the customs service. In addition, the Buyer required the Seller to deposit nearly 300,000.00 EUR to the customs service’s account as guarantee of the goods origin and validity of contractual documents.

The parties’ ineffective attempts to settle the dispute caused the vessel idle stay for over two weeks and demurrage accrual by the Shipowner.

The Seller applied to Interlegal experts for help.

Interlegal lawyers promptly made complex analysis of the situation, assessed lawfulness of each party’s requirements, provided practical instructions to the Client in respect of submitting the contractual set of documents, contacted the associated office in Italy and drafted the defense line and the legal position upon demurrage recovery.

The active work of Interlegal resulted in immediate acceptance of documents by the Buyer and the customs service. The vessel was discharged without any delay, with full amicable settlement of the demurrage dispute in favour of the Client.

Interlegal lawyer Olena Ptashenchuk under general supervision of the partner Natalya Myroshnychenko led the case.