B/L V/S SWB

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smmujeeb
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Joined: 07/29/2008
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Good Morning

LC asked 3 Non negotiable Seaway bill... But bene has presented 3/3 original B/L.. we have rejected the documents on the ground that B/L presented I/O SWB.

But presenting bank has sent a cable stating discrepancy is invalid.

According to UCP bank can accept a transport document homever named.

But we are not agree as seaway bill always issued in copies, and original 3/3 B/L presented, morever the characteristics of a SWB and B/L are different.

 2)When LC called for SWB and if copies of B/L presented can we accept it.

 Looking ahead for your valuable comments.

Thanks

Mujeeb

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Armagedo
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Joined: 09/10/2007
Hi! IMHO. -------LC asked

Hi!

IMHO.

-------LC asked 3 Non negotiable Seaway bill... But bene has presented 3/3 original B/L.. we have rejected the documents on the ground that B/L presented I/O SWB. -----

But presenting bank has sent a cable stating discrepancy is invalid.

You was obliged to check the document as per Article 21 of UCP600.

What discrepancies You have found?

If the document "Bill of Lading" had met all the requirements of Article 21 then "howere named" is applicable due to Article 21(a).

---------But we are not agree as seaway bill always issued in copies, and original 3/3 B/L presented--------

Wrong.

Who has said You that SWB cannot be issued in originals?

--- morever the characteristics of a SWB and B/L are different.----

That's why there is Article 21 under which You should check this document.

---2)When LC called for SWB and if copies of B/L presented can we accept it-----

If LC called for "NN SWB" then it is to be understood that required is an ORIGINAL document meeting requirements of Article 21 and so 21(a)(iv): "be the sole ORIGINAL non-negotiable sea waybill or, if issued in more than one original, be the full set as indicated on the non-negotiable sea waybill"

It means that copies against originals are not acceptable.

But the ORIGINAL document named as 'Bill of Lading' and otherwise fully complying with requirements of Article 21, IMHO, to be acceptable.

Good luck

cristiand
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Joined: 08/10/2007
Agree

I fully agree with Armagedo's point of view and the comprehensive explanations he has added. You have to make distinction of what a non-negotiable seawaybill is vs bill of lading. While the former is a document involving straight consignment to a named party the latter is a title of property of goods and is always issued to THE ORDER OF a named party. The title of document is not important as the document must fulfill the function of that required document.

brgds

Cristian

smmujeeb
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Joined: 07/29/2008
agree but....

Dear Armagado.

 Truely appreciate your comments... but

My question is when LC asked for NNSWB and bene has presented original B/L, do we need to pick it as a disp as original B/L presented I/O NNSWB. As origina SWB will be issued at the place of destination, moremove the characteristic of SWB and B/L are different.

 Looking ahead for your comments.

Armagedo's picture
Armagedo
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Joined: 09/10/2007
Dear Cristian! ---While the

Dear Cristian!

---While the former <NN SWB> is a document involving straight consignment to a named party the latter <B/L> is a title of property of goods and is always issued to THE ORDER OF a named party.---

"is always" very categorical, but incorrect statement.

It to be replaced with "can be".

And 'straigtness' of SWB is not the only difference.

The most important is that the goods under SWb will be delivered to the consignee WITHOUT presentation of any original SWB whether or not it was issued. Carrier will only identify consignee or its agent for whom the goods will be released.

Herebelow is brief extract found in internet

"Processing of bills of lading is quite time consuming and can result in the consignee receiving them only after the goods have arrived at the port of destination. The non-negotiable sea waybill prevents this delay as (similar to air waybills) the goods can be delivered to the consignee without handing over the waybill."

Good luck

 

 

Frammi
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Joined: 08/17/2007
Perfect Answers so far

I just miss a notation that a presentation of originals is not okay, if the credit requires a proof that the documents have been disposed off in another way, for example: original B/Ls not to be presented, if a certificate is required to the effect that the original B/Ls have been sent directly to applicants .

   -Each long journey starts with a small step-

Best regards

Frammi

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