Pollution Liabilities in Brazil
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The Brazilian cargo delivery system is quite different from most jurisdictions elsewhere in the world where the carrier delivers the cargo in exchange for the original bill of lading or a delivery note. In Brazil, the carrier discharges import cargo into Customs-bonded facilities that take over the duty to safe-keep the cargo and hand it over to the consignee on completion of the clearance formalities and upon authority from the Customs.
Apart from fines for incorrect or untimely declared cargo manifest, there have been recent regulatory changes in that it is possible, under certain circumstances, for importers to take delivery without the need to surrender the original bill of lading. These changes in contrast with international delivery practices and, indeed, the standing legal system, have caused great concern amongst carriers who completely lose control over the cargo once it is discharged and have little or no say on whether and to whom it can be delivered.
The peculiarities of the Brazilian cargo delivery system in contrast with other countries bring about numerous queries from carriers trading in the country on the responsibility for cargo reporting procedures, delivery and determination of liabilities for cargo loss or damage.
Based on our hands-on experience, we prepared this guidance with a practical introduction to the Brazilian Customs regulations and practice pertaining to cargo import, clearance and delivery, the statutes governing cargo manifest reporting requirements and the apportionment of liability between carriers and bailees. The guide also covers the issue of Customs penalties and the defences and limitations available to the carriers.
