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Unit 10: Containerization and Leasing Practices

The Shipping Line's Durban Agents Notes

Upon contacting the shipping line’s Durban agents, we were advised that they were not
prepared to comment, or to provide any information whatsoever. We were further advised
that the matter was in the hands of their liability insurers.
The Banks
We turned our attention to three local banks, which had been named as the Consignees on
the various Bills of Lading. Assuming that original Bills of Lading had been presented to
the shipping line’s agents for release of the containers, it followed that someone must
have paid for the goods in order to obtain the original Bills of Lading from the banks.

The banks advised us that the original Bills of Lading, Supplier’s Invoices, Packing Lists
and Certificates of Insurance had been returned to the shipper’s bank.
There had been a considerable exchange of correspondence between the banks and,
ostensibly, the purported buyer, well after the containers had been removed. The
correspondence related to requests by the purported buyer for extensions and/or
amendments to the terms of payment.
We concluded that the shipping line’s Durban agents had apparently released the containers
without production of the original Bills of Lading.

The Container Terminal
A Container Terminal Order (CTO) must be issued for containers to be released by the
Container Terminal.
During the investigation, meetings were held with the Administration Manager at the
Container Terminal. He stated that to his recollection, all the CTO’s pertaining to the
containers in question had been issued by the shipping line’s local agents in Durban.

He was unable to provide us with copies of the CTO’s or indeed any other documentation
relating to the containers. He explained that he simply did not have the documentation,
that he assumed this had been taken by the Police in the course of their investigation, and
that no copies had been left on file.
He stated that the containers appeared to have been released in the normal manner.
Customs Documentation
The Bill of Entry is a Customs clearance document, which is framed by the importer or his
agent and presented to Customs & Excise.
The requirement for presentation of these documents is to prevent the release of containers
before Customs duties have been paid.
We obtained copies of the Bills of Entry issued in respect of the containers, and noted the
following:

1. Each Bill of Entry contained a Customs Export stamp.
2. The remover was shown as a company based in Mozambique.
3. The Bills of Entry were signed, ostensibly, by the South African buyer.
4. All the Bills of Entry were in the same handwriting and issued on the same date.
In discussions with representatives from the Department of Customs & Excise, it was
confirmed to us that the Bills of Entry were fraudulent. We were advised that the Department
was conducting its own investigation into the matter.

Contd...

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