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B/L showing "free out" & freight collect

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Sun, 09/12/2010 - 07:43
guoking
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Dear all,

L/C requirement : FOB XX for USDxx

                           : B/L ..... marked freight collect......

                            :47a : UCP Art. 26C not applicable.

Presented B/L showing "freight collect" and also showing "CY FO "

(pls note that other than "CY FO' wording there's no  mentioning of charges in additional to freight

Query : Is it justify to raise the discrepancy for " B/L showing FO (free out) which is not allowed under L/C 47a?"

Thanks & regards

 

 

 

 

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Mon, 09/13/2010 - 06:42
#1
bob_exports
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B/L showing "free out" & freight collect

How can a freight collect B/L indicate CY FO when the transaction is FOB? The charges at the destination clearly can not be for the seller. I think we need to know just a little more about this to give any help. Was it containerised or breakbulk, who issued the B/L (ie container shipping line as carrier, forwarder as carrier, master of breakbulk vessel on a Congen or similar B/L prepared by the seller, or....)?

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Sun, 09/12/2010 - 12:15
#2
Abrar
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FREE OUT

See this link:

http://letterofcreditforum.com/content/free-out

However, I am not convinced that a FO term falls within the scope of sub-art 26 c.

On a more general point, if sub-art 26 c is stated to be not applicable, this could be interpreted as the clause not existing, and therefore a substitution clause would need to be included in the LC, expressly prohibiting "transport documents bearing a reference, by stamp or otherwise, to charges additional to the freight"

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Tue, 09/14/2010 - 07:45
#3
Abrar
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FO

Ok. Para 113 of ISBP does in fact indicate that terms such as "FO" will be considered as evidencE of charges additional to freight charges, and will thus not be accepted if the LC prohibits. However, mere removal of the provision of Art 26C does not automatically imply that the opposite of the clause is invoked.

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