The Japan P&I Club has issued circular to provide information on things to know when dealing with cargo shortage claim in China.
Under Chinese law, there are certain kinds of import or export cargo that are subject to statutory inspection by China Entry-Exit Inspection and Quarantine Bureau (“CIQ”). In practice, sometimes CIQ will entrust its subsidiary company —- China Certification & Inspection (Group) Co Ltd (“CCIC”) to conduct statutory survey on their behalf.
For cargo that is not subject to statutory inspection in accordance with relevant regulations, the cargo receivers can apply to CIQ or CCIC for commercial inspection of the cargo to ascertain its quantity or quality. Normally CIQ report carries more weight in eyes of local judge compared with other survey firms. But this doesn’t mean owners cannot contest CIQ figure; if effective evidences can be provided, CIQ figure may be refused by court.
In China, draft survey is a most common method adopted by CIQ or CCIC to ascertain the quantity of dry bulk cargo discharged, though at some ports for some types of cargo the authorities may use shore scale to weigh the quantity of the cargo.
Sometimes disputes may arise during the process of drafty surveys as a result of the following factors:
- Draft reading
- The sea condition
- Vague draft mark
- Obstacle to draft mark
- Aground
- Personal factors
- Density of sea water
- Sea water of berth
- Ballast water
- Ship’s table/documentation
- Ship’s constant
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Source: The Japan P&I Club
