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Goods Realse without Original AWB

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Fri, 01/20/2012 - 01:10
aliimrancma
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Joined: 08/21/2011
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Hi, Dear All,

we have an air shipment to Hong Kong under Sight LC. AWB consigned to customer(ABC Co,.). Original discrepant docs+AWB laying with bank unaccepted. forwarder says shipment released. WHAT IS THE USE OF ORIGINAL AWB??? issuing bank says shipper may recall the documents. to whom we should ask for payment. can customer get released the goods with a copy AWB only. An early advice will be highly appreciated.

 

Regards

Imran

‹ pro rata Stamp & Seal in ORiginal BL ›
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Fri, 01/20/2012 - 06:11
#1
ImranUmer
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Joined: 12/30/2007
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ImranUmer

Hello Mr. Imran,

If you are from Pakistan, call me, I will help you to prepare LC compliant documents at a very nominal fee.

Thanks,

ImranUmer
IamImranUmer@gmail.com
Cell : 0300-2559649

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Fri, 01/20/2012 - 02:07
#2
phill doran
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Joined: 02/10/2009
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waybills

Hello Imran

Yes, this question comes up at regular intervals:
An original of an airwaybill is NOT required to obtain release of goods – that’s what the word ‘waybill’ is telling you.

The ‘buyer’ needs only to apply for release along with evidence of customs clearance. Customs clearance can be arranged on copy documents (and to be honest, if it only requires a commercial invoice [i.e. no other specialist documents] then clearance can be arranged on a commercial invoice created by the buyer, without the seller’s knowledge).

Bear in mind that the credit existed before airfreight – the credit was created around seafreight and the use of ‘title’ documents so if you use a credit in airfreight, you are taking a risk anyway but in order to overcome this inadequacy ‘trade’ has allowed for the following process (i.e. I know of no formal agreement which allows the follwing but it is certainly 'global' trade practice)

You consign the airwaybill to the issuing bank – NOT the consignee. The buyer can now arrange import clearance but cannot get the cargo as they are not the consignee. So, they need to apply to the issuing bank for a letter (a ‘release letter’) where the bank instructs or allows the carrier to release to the buyer. This places the bank in-between the buyer and the cargo. The bank will not give the buyer the release letter unless –

a. The buyer pays for the documents either absolutely or by way of a draft or
b. Where document are not yet available, the buyer (as applicant) signs a waiver against all and any discrepancies.

Your position now is simply one of a seller with a defaulting buyer; you will have recourse through your sales contract. However, as beneficiary, you have no recourse through the credit.

I am sorry you are in this position –
phill

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Fri, 01/20/2012 - 05:26
#3
aliimrancma
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Joined: 08/21/2011
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AWB

Hi Phill,

thanks for your kind advice, i m not a professional just a student and my bank and my forwarder both were unable to reply my question. thanks a lot, i owe you for this kind assistance.(this is not a very big shipment and my agent at destination is in contact with customer to settle the bill, i am happy i could learn this lesson for a small shipment not for a big one)

have a nice day

A bundle of thanks and best regards

Imran

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Mon, 01/23/2012 - 02:38
#4
kimsindberg
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Joined: 01/23/2012
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More on the AWB

Dear Imran,

 

I just want to add a few ”layers” to the issue of AWB’s. They are (as Phill points out) waybills – but that does not mean they are worthless :-)

 

First of all they are proof of the contract of carriage between the airline company and the shipper. The idea is that goods are delivered to the consignee (who of course must identify himself as the consignee) upon arrival, and upon collection of the freight amount.

 

The original AWB is not required before the release of the goods – but still the original has a purpose. The party in possession of it can dispose over the goods up until the goods has been released to the consignee.

Disposing over the goods would include changing the consignee, changing destination or asking the airline to return the goods.

So at least the shipper (who is normally the beneficiary to the LC) cannot dispose over the goods when the original AWB has been presented under the LC.

This is (as an example) different from the non-negotiable sea waybill, where the shipper can in fact dispose over the goods at any time up and to delivery to the consignee regardless if the non-negotiable sea waybill has been presented under an LC (unless of course that right of control as been waived on the non-negotiable sea waybill).

 

If terms of the AWB versus LC’sthe solution is (as Phill suggests) to have the AWB consigned to the issuing bank.

 

I hope this helps you.

 

Best regards

Kim

www.remburs.com

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