Managing Retention of Title Claims under Insolvency Moratoria
Statutory moratoria freeze physical stock recovery, requiring immediate inventory audits, precise batch tracing, and structured practitioner settlements.
Landed Inventory Recovery
Meaning
Retrieval of imported goods that have reached a port or terminal but remain under the control of a third party. Procurement officers initiate landed inventory recovery when a supplier becomes insolvent before the final delivery. This operation focuses on clearing the goods through customs and securing physical possession.
Physical Possession
Transfer of the shipment from the carrier to the buyer requires the presentation of a bill of lading. In landed inventory recovery, the buyer must prove that the title passed before the seller entered administration.
Customs Clearance
Duties and taxes must be settled before the port authority releases the containers. Delays in landed inventory recovery often stem from unpaid tariffs or missing certificates of origin.
Title Verification
Legal review of the purchase agreement confirms the point of ownership transfer. For successful landed inventory recovery, the contract must state that the risk and title moved to the buyer at the port of departure. A failure to clarify these terms allows a liquidator to claim the stock as part of the seller’s estate, and the cost of demurrage can eventually exceed the value of the goods.
The bill of lading is the primary document used to assert control.