Velco Enterprises Ltd v SS “Zim Kingston” and Ors - US District Court (SDNY) (Sprizzo DJ) - 20 July 1994

Cargo claim - Shipowners discharged cargo into custody of Dominican Port Authority as required by Dominican law but without production of bill of lading - Whether shipowners liable for misdelivery of cargo

The defendant shipowners carried a cargo of polyethylene on board their vessel Zim Kingston from Houston, Texas to Santo Domingo, Dominican Republic under a bill of lading dated 13 March 1990. The vessel arrived in the Dominican Republic at the port of Rio Haina on 27 June 1990 whereupon the cargo was discharged into the custody of the Dominican Port Authority pursuant to port regulations. On 16 July 1990 the ship’s port agent authorised the release of the cargo by signing a “tarja”, a receipt issued by the Dominican Port Authority to the ship’s port agent to verify receipt of the manifested cargo. According to port custom, the tarja was not issued until the consignee came to take delivery. The cargo could not be delivered from the terminal without a tarja having been completed.