Food Import Claims Guide: Cargo Damage, Shortage, Insurance & Customs

For companies importing food products, whether for the first time or with prior experience, common issues such as damaged goods, quality defects, and quantity discrepancies frequently occur upon arrival. Examples include:

Partial shipment of frozen foods
Products with shorter-than-agreed remaining shelf life
Product damage due to broken packaging or temperature control failures

In food imports, the speed of initial response and accuracy of documentation are crucial for minimizing losses and ensuring successful claims with suppliers or insurers.

This guide provides a practical overview of handling quality and quantity issues, insurance claims, and the roles of warehouses and marine surveyors in food import operations.

Contents

1. Common Problems in Food Imports and Their Causes
2. Practical Response Flow When Problems Occur
3. Preventive Measures to Avoid Import Problems
4. Summary
- References

1. Common Problems in Food Imports and Their Causes

1-1. Quality Defects

Typical Cases

Differences in color, shape, taste, or odor from agreed specifications
Deterioration caused by thawing or refreezing of frozen or chilled goods
Contamination due to damaged packaging

Causes

Manufacturing or quality control errors at overseas factories
Temperature fluctuations or physical shocks during international transport (FAO: Cold Chain Management)
Explains the importance of temperature control in food transport, as outlined by the UN Food and Agriculture Organization
Inadequate inspection before shipment or upon arrival

For frozen and chilled products, any break in the cold chain can be critical. Objective evidence is required when filing insurance claims (ICC Marine Cargo Insurance)
Official ICC guidance on marine cargo insurance and Incoterms® rules.

1-2. Quantity Discrepancies (Shortage or Over-Shipment)

Typical Cases

Fewer units than ordered
Outer carton count matches, but inner contents are incomplete

Causes

Packing or picking errors at the supplier’s warehouse
Loss or theft during transportation
Discrepancies between shipping documents (Commercial Invoice, Packing List) and actual goods (U.S. Customs and Border Protection: Importing Food Products)
Official US CBP guidance on managing food import documentation and quantities

Quantity discrepancies can also affect customs clearance, as declared quantities must match the physical shipment.

1-3. Inspection and Food Safety Issues

Typical Cases

Shipments rejected or destroyed due to non-compliance with food safety regulations (FDA Food Import Guidance)
Authoritative reference on US FDA food import regulations
Failure to maintain proper temperature control for frozen or chilled goods
Incorrect or missing labeling for ingredients, allergens, or country of origin

In all countries, health authorities typically conduct inspections either before or after customs clearance.

2. Practical Response Flow When Problems Occur

2-1. Inspection at the Time of Receipt (Critical Step)

Checkpoints

Number of cartons and units
Condition of outer and inner packaging
Signs of thawing, condensation, or temperature abuse
Expiration dates and lot numbers

Best Practices

Take photos and videos before and during unpacking
Instruct warehouse staff to report any abnormalities immediately
Retain temperature data loggers if used (FAO: Temperature Data Loggers for Food Transport)
Explains methods and importance of recording transport temperatures

Accurate records are essential for supplier negotiations and insurance claims.

2-2. Reporting to the Supplier

Notify the supplier in writing immediately after confirming a problem.
Include:
- Objective facts (e.g., “Ordered 50 cartons, received 45; 3 cartons damaged”)
- Photos, videos, and temperature records
- Proposed resolution (replacement, refund, or price adjustment)

Avoid emotional language and focus on objective information to facilitate smoother negotiations.

2-3. Insurance Claims and the Role of Marine Surveyors

If damage or loss likely occurred during transport, consider filing a marine cargo insurance claim under ICC clauses.

Claim Process

Notify the insurer or broker immediately (Lloyd’s Marine Insurance)
Official Lloyd’s guidance on marine cargo insurance
Submit required documentation (Bill of Lading, Commercial Invoice, Packing List, photos)
Arrange inspection by a marine surveyor
Damage assessment and settlement

A surveyor provides an independent evaluation of the cause and extent of damage. Insufficient evidence may reduce or deny claims.

Insurance coverage depends on Incoterms® (FOB, CIF, etc.), so confirm when the risk transfers from seller to buyer (ICC Incoterms Rules)
Official ICC explanation of Incoterms® rules.

2-4. Coordination with Customs and Regulatory Authorities

Procedures for returning, destroying, or abandoning damaged or non-compliant goods (World Customs Organization: SAFE Framework)
WCO framework for secure and compliant import operations
Handling of customs documentation and import permits
Amendment of declarations when quantities differ
Ensuring consistency of HS codes, declared values, and Certificates of Origin (COO)

3. Preventive Measures to Avoid Import Problems

3-1. Clear Contracts and Purchase Orders

Product specifications and allowable tolerances
Quantities and permissible variance
Minimum remaining shelf life
Transport temperature requirements
Responsibility and procedures for defective or short shipments (UNCTAD: Contract Guidelines)
UNCTAD guidance on drafting clear trade contracts

3-2. Sample Approval and Pre-Shipment Inspection

Approve product samples before mass production
Use third-party pre-shipment inspection services (SGS Pre-Shipment Inspection)
Information on third-party inspection services for export quality verification
Obtain inspection reports and photos

These measures are especially effective when sourcing from suppliers with variable quality.

3-3. Insurance and Transportation Management

Arrange sufficient marine cargo insurance (e.g., ICC(A) clauses)
Use temperature-controlled containers for frozen and chilled goods
Maintain clear communication among warehouse operators, freight forwarders, and customs brokers (International Maritime Organization: Cargo Transport)
IMO guidance on safe and secure cargo transportation

4. Summary

Inspection and documentation at receipt are critical
Warehouse staff play a key role in identifying and recording issues
Marine surveyors provide independent evaluation for insurance claims
Coordination with customs and regulatory authorities is essential
Preventive measures—contracts, inspections, insurance, and documentation—significantly reduce risks

With accurate record-keeping and close collaboration among logistics, customs, and insurance partners, food import problems can be managed efficiently.