CANADA SHIPPING ACT
PART XI

Table of Contents

PART XI

• Delivery of Goods
  • Shipowner to enter and land goods
  • Goods placed on wharf or in warehouse
  • Owner may land and enter goods
  • Assorting goods on discharge
  • Notice to owner before landing goods
  • Lien for freight on landing goods
  • Discharge of lien
  • Deposits and notice by owners of goods
  • Payment or tender to shipowner
  • Repayment to owner
  • Warehouseman discharged
  • Sale of goods by warehouseman
  • Notice
  • Title to goods
  • Application of proceeds of sale
  • and the surplus, if any, shall be paid to the owner of the goods.
  • Warehouseman's rent and expenses
  • Warehouseman's protection
  • Saving for powers under local Acts

PART XI

DELIVERY OF GOODS

Delivery of Goods and Lien for Freight

Shipowner to enter and land goods

596. (1) Where the owner of any goods imported in any ship into Canada fails to make entry thereof or, having made entry, to land the goods or take delivery thereof, and to proceed therewith with all convenient speed, by the times mentioned in this Part, the owner of the ship may make entry of and land or unship the goods at the following times:

(a) if a time for the delivery of the goods is expressed in the charter party, bill of lading or agreement, at any time after the time so expressed; and

(b) if no time for the delivery of the goods is expressed in the charter party, bill of lading or agreement, at any time after the expiration of seventy-two hours, exclusive of a holiday, from the time of the report of the ship.

Goods placed on wharf or in warehouse

(2) Where the owner of a ship lands goods pursuant to this section, he shall place them, or cause them to be placed,

(a) if any wharf or warehouse is named in the charter party, bill of lading or agreement as the wharf or warehouse where the goods are to be placed and if they can be conveniently there received, on that wharf or in that warehouse; and

(b) in any other case, on some wharf or in some warehouse on or in which goods of a like nature are usually placed, the wharf or warehouse being, if the goods are dutiable, a wharf or warehouse duly approved by the Minister of National Revenue for the landing of dutiable goods.

Owner may land and enter goods

(3) Where at any time before the goods are landed or unshipped the owner of the goods is ready and offers to land or take delivery of them, he shall be allowed to do so, and his entry shall in that case be preferred to any entry that may have been made by the owner of the ship.

Assorting goods on discharge

(4) Where any goods are, for the purpose of convenience in assorting them, landed at the wharf where the ship is discharged, and the owner of the goods at the time of that landing has made entry and is ready and offers to take delivery thereof and to convey them to some other wharf or warehouse, the goods shall be assorted at landing, and shall, if demanded, be delivered to the owner thereof within twenty-four hours after assortment, and the expense of and consequent on that landing and assortment shall be borne by the owner of the ship.

Notice to owner before landing goods

(5) Where at any time before any goods are landed or unshipped the owner thereof has made entry for the landing and warehousing of them at any particular wharf or warehouse other than that at which the ship is discharging, and has offered and been ready to take delivery thereof, and the owner of the ship has failed to make that delivery, and has failed at the time of that offer to give to the owner of the goods correct information in respect of the time at which the goods can be delivered, the owner of the ship shall, before landing or unshipping the goods, pursuant to this section, give to the owner of the goods or the wharf or warehouse twenty-four hours notice in writing of his readiness to deliver the goods, and shall, if he lands or unships the goods without that notice, do so at his own risk and expense.

Lien for freight on landing goods

597. Where, at the time any goods are landed from a ship and placed in the custody of any person as a wharfinger or warehouseman, the owner of the ship gives to the wharfinger or warehouseman notice in writing that the goods are to remain subject to a lien for freight or other charges payable to the owner of the ship to an amount mentioned in the notice, the goods shall, in the hands of the wharfinger or warehouseman, continue to be subject to the same lien, if any, for those charges as they were subject to before their landing, and the wharfinger or warehouseman receiving them shall retain them until the lien is discharged, and shall, if he fails to do so, make good to the owner of the ship any loss thereby occasioned to him.

Discharge of lien

598. The lien for freight and other charges referred to in section 597 shall be discharged

(a) on the production to the wharfinger or warehouseman of a receipt for the amount claimed as due, and the delivery to the wharfinger or warehouseman of a copy thereof or of a release of freight from the owner of the ship, and

(b) on the deposit by the owner of the goods with the wharfinger or warehouseman of a sum of money equal in amount to the sum claimed by the owner of the ship,

but in the latter case the lien shall be discharged without prejudice to any other remedy that the owner of the ship may have for the recovery of the freight.

Deposits and notice by owners of goods

599. (1) When a deposit described in section 598 is made with a wharfinger or warehouseman, the person making the deposit may, within fifteen days after making it, give to the wharfinger or warehouseman notice in writing to retain it, stating in the notice the sums that he admits to be payable to the owner of the ship or that he does not admit any sum to be so payable, but if no notice is given, the wharfinger or warehouseman may, at the expiration of the fifteen days, pay the sum deposited over to the owner of the ship.

Payment or tender to shipowner

(2) Where a notice is given under subsection (1), the wharfinger or warehouseman shall immediately inform the owner of the ship of the notice, and shall pay or tender to him out of the sum deposited the sum, if any, admitted by the notice to be payable, and shall retain the balance or, if no sum is admitted to be payable, the whole of the sum deposited, for thirty days from the date of the notice.

Repayment to owner

(3) At the expiration of thirty days unless legal proceedings have been instituted by the owner of the ship against the owner of the goods to recover the balance or sum, or for the settlement of any dispute that may have arisen between them concerning the freight or other charges, and notice in writing of those proceedings has been served on the wharfinger or warehouseman, the wharfinger or warehouseman shall pay the balance or sum to the owner of the goods.

Warehouseman discharged

(4) A wharfinger or warehouseman is by any payment under this section discharged from all liability in respect thereof.

Sale of goods by warehouseman

600. (1) Where the lien referred to in section 597 is not discharged and no deposit is made pursuant to section 598, the wharfinger or warehouseman may, and if required by the owner of the ship, shall, at the expiration of ninety days from the time when the goods were placed in his custody, or, if the goods are of a perishable nature, at such earlier period as in his discretion he thinks fit, sell by public auction, either for home use or for exportation, the goods or so much thereof as may be necessary to satisfy the charges mentioned in this Part.

Notice

(2) Before making the sale the wharfinger or warehouseman shall give notice thereof by advertisement in two local newspapers circulating in the neighbourhood, and, if the address of the owner of the goods has been stated on the manifest of the cargo, or on any of the documents that have come into the possession of the wharfinger or warehouseman, or is otherwise known to him, shall send notice of the sale to the owner of the goods by post.

Title to goods

(3) The title of a bona fide purchaser of the goods is not invalidated by reason of the omission to send the notice required by this section, nor is that purchaser bound to inquire whether the notice has been sent.

Application of proceeds of sale

601. The proceeds of any sale referred to in section 600 shall be applied by the wharfinger or warehouseman as follows, and in the following order:

(a) if the goods are sold for home use, in payment of any customs or excise duties owing in respect thereof,

(b) in payment of the expenses of the sale,

(c) in payment of the charges of the wharfinger or warehouseman and the owner of the ship according to such priority as may be determined by the terms of the agreement, if any, in that behalf between them, or, if there is no agreement,

(i) in payment of the rent, rates and other charges due to the wharfinger or warehouseman in respect of the goods, and

(ii) in payment of the amount claimed by the owner of the ship as due for freight or other charges in respect of the goods,

and the surplus, if any, shall be paid to the owner of the goods.

Warehouseman's rent and expenses

602. Whenever any goods are placed in the custody of a wharfinger or warehouseman under the authority of this Part, the wharfinger or warehouseman is entitled to rent in respect of the goods, and has the power, at the expense of the owner of the goods, to do all such reasonable acts as in the judgment of the wharfinger or warehouseman are necessary for the proper custody and preservation of those goods, and has a lien thereon for the rent and expenses.

Warehouseman's protection

603. Nothing in this Part compels any wharfinger or warehouseman to take charge of any goods that he would not have been liable to take charge of if this Act had not been passed, nor is he bound to see to the validity of any lien claimed by any owner of a ship under this Part.

Saving for powers under local Acts

604. Nothing in this Part

(a) takes away or abridges any powers given by any special Act to any harbour commission whereby they are enabled to expedite the discharge of ships or the landing or delivery of goods; or

(b) takes away or diminishes any rights or remedies given to any owner of a ship or wharfinger or warehouseman by any Act.

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