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Contract and Commercial Law Act 2017

Other commercial matters - Power for shipowner to enter and land goods, and lien for freight

338: How money arising from sale is to be applied

You could also call this:

“How to use money from selling stored goods”

If you sell goods stored at a wharf or warehouse, you need to use the money from the sale in a specific order. First, if the goods are sold for use in New Zealand, you must pay any customs or excise duties owed on the goods. Next, you need to pay for the costs of the sale. After that, you pay the rent, rates, and other charges owed to the wharf or warehouse owner for storing the goods. Then, you pay the shipowner for freight or other charges related to the goods. If there’s any money left over, you give it to the owner of the goods.

Sometimes, the wharf or warehouse owner and the shipowner might have an agreement about who gets paid first. If they do, you follow that agreement instead of the order described above. If they don’t have an agreement, you stick to the order given.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844753.

Topics:
Business > Industry rules Money and consumer rights > Consumer protection
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337: Notices of sale to be given, or

"Telling people about selling goods from your wharf or warehouse"

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339: Wharf owner’s or warehouse owner’s rent and expenses, or

"Paying for storing and caring for your stuff at a wharf or warehouse"

Part 5 Other commercial matters
Power for shipowner to enter and land goods, and lien for freight

338How money arising from sale is to be applied

  1. A wharf owner or a warehouse owner must apply the money received from a sale of goods under section 336 in the following order:

  2. if the goods are sold for home consumption, in payment of any customs or excise duties owing in respect of the goods:
    1. in payment of the expenses of the sale:
      1. in the absence of an agreement between the wharf owner or the warehouse owner and the shipowner concerning the priority of their respective charges, in payment of the rent, rates, and other charges due to the wharf owner or the warehouse owner in respect of the goods:
        1. in payment of the amount claimed by the shipowner as due for freight or other charges in respect of the goods:
          1. the surplus (if any) must be paid to the owner of the goods.

            1. Despite subsection (1)(c) and (d), in the case of an agreement between the wharf owner or the warehouse owner and the shipowner that concerns the priority of their respective charges, those charges have priority according to the terms of the agreement.

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