Please advise whether we need to consgin the goods in the name of bank when the term is DP at sight.
We had sent the original documents thru our bank and it is understand from the forwarder that the buyer has cleared the consignment submitting the original house bill of lading.But we have not received the payment. How it is possible? Can buyer's bank release the original docs without making the payment in the case of DP at sight draft?
Whom we approach now to get our payment.
Also note, the consignee mentioned in the BL is the buyer it self. Should have we need to shown the consignee as bank and notify as the buyer?
If it is import shipments .. Where the BL consignee address consigned to .. Whether consignee's bank or shipper's bank ... Plz reply
I read many comments about this question, but has been made all, following URC 522 , art 10? Than ,was the original House bill of lading , negotiable or not, claused with "If required by the carrier , one original must be presented..........." or not?
I agreed that copy of remittance letter is necessary to state who made a mistake, moreover only banks full branches have expertise to deal with foreign trade transactions.
by consigning the goods to the bank and ordering your bank to "deliver documents at goods against payment", you will gain an additional security as goods will only be received by the importer upon payment of the documentary collection.
If you addressed the goods to the buyer directly, he might receive the goods but refuse to honour the d/p because he doesn't need the documents anymore after receipt of the goods.
See here thing is a little different.
Even though we consigned directly to the buyer in B/L we sent all the original docs thru our bank and buyer has presented the original B/L while clearing the customs. That means they have collected the original docs from the bank and have not made the payment. My question is that when the term in DP AT SIGHT, how the buyer got the docs without making our payment?
Hope you are clear now.
Also I would like to know whether an importer can clear the custom with scanned / photostat copies of bill of lading- its a general question. (In the above mentioned case, they have submitted the original bill of lading)
Regards / Ravindran
Dear Mr. Ravindran,
You have correctly mentioned buyer name as consignee
DP means Documents can only be given to your buyer by bank if your buyer makes the stated payment.
Where can be mistake?
Your bank might have made mistake in its' covering letter while sending shipping documents to buyer bank, You Bank might have Tick Marked DA in place of DP.
Kindly meet your overseas branch manager. Get a xerox copy of banks covering letter.
Then only you will come to know the truth.
You can ask your buyer for payment, if Buyer is your regular customer
Thank you Mr. Doshi,
We have already approached our buyer with the mail we got from the forwarder saying the buyer cleared the customs with original house bill of lading.
Bank is chasing it. Will let you know the out come.
In the meantime, will check the covering letter also.
Regards / Ravindran
At last, we received the payment !
According to the forwarder, they released the consignmet on 28th October and the payment effected was on 28th November.
Smell some thing wrong?
We strongly believe there was a mistake from the Bank. It was DP at sight and how we got the payment after one month?
Whom should we approach to know what actually happened? Can we take legal action against the bank. If so, which law is applicable? Are we eligible to get the interest for one month?
Thanx & Regards,
I think there is some mistake happened by your bank. please ask your bank to check there incoming transation.
Once a time our Company M/s. DEL ENTERPRISE foreign bills was wrongly credited to our Group's another firm M/s. DEL POLYESTER. It may be possible that same mistake has been happed with you.