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Bill of Lading

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Wed, 02/01/2012 - 00:39
oxygen
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Hello, hope my question is of current interest of many users. Does anybody know why the Applicant requires to separate B/L Originals set, consisted of 3 pieces? I.e., 1/3 original should be sent directly to Applicant and  2/3 Originals will be sent to designated bank - this the requirement reflected in the L/C. Is this condition a threat for Beneficiary? I mean, if the Applicant will receive 1/3 of B/L Original is it possible for him to get the cargo in the port of destination or he needs full set of B/L originals? Cause in case he gets the cargo against 1 original of B/L he does not need the remaining 2 originals and he just could not release payment from the L/C . Hence, Beneficiary will not receive his payment. 

And in general regarding different countries: does the consignee need full set of B/L originals  to receive cargo from the port? Or it is variable depending on the specific country?

Will be obliged  for every piece of advise.

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Wed, 02/01/2012 - 02:05
#1
phill doran
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b/l outside the credit

Hello Oxygen

(wow, your name’s quite a gas!)

In a short sea journey, the common frustration is that the cargo arrives before the paperwork and this is perhaps the commercial reason why your client wants one bill tendered outside of the credit.

However, once your client has access to the cargo, you will be exposed should the credit fail.

You could accommodate your client by getting them to sign a waiver wherein they accept all and any discrepancies etc. But if you go this route, be sure the waiver is in place before you remit the 1/3 directly.

If you are in any doubt, do NOT accept the terms of the credit and insist that you will only remit (all) the bills via the bank.

If there is detention and demurrage, then this is the effective cost of doing business with people you do not trust or who do not trust you.

On your second point, it is rare for a country law to require the presentation of all ‘originals’ – when such a demand is made it is generally made by the carrier in reaction to a specific risk they may have identified.

I hope this helps...

Cheers

phill

“in the kingdom of the blind, what you see is what you get”

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Mon, 02/06/2012 - 23:45
#2
oxygen
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B/L

Thank you very much for your comment Phill, it's pretty helpful for me. But would you please explain what do you mean when say "be sure the waiver is in place"? Thank you in advance.

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Mon, 02/06/2012 - 23:49
#3
phill doran
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caution

Hello there

I mean don’t act until your bank tells you that the waiver has been lodged (with the issuing bank). So, don’t send the cargo on the applicant’s ‘promise’ of the waiver being done.

 

Cheers

 

phill

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