Is it regular for an importer to ask the bank to issue a documentary credit, calling for the following transport document ? :
-Truck Waybill CMR, showing irrevocable despatch of goods to applicant, signed by the applicant for receipt of goods at destination.
Your comments appreciated
i have seen such terms in a number of cases but all of them was inland LC. this a local practice in some countries. in these cases the transaporter is nt well established one and generally well know to the exporter. the general practice it that the seller will load the goods and the truck will carry it to the importer and get a sign from him. only then the truck company is paid by the seller though it doesnt go with the freigh prepaid concept.
Fully agree with Frammi and I would never accept any condition which lead me to be dependable on applicant's will.
More over the same logic is transparently recomended in ISBP for UCP 600
The Application and Issuance of the Credit
4. A credit should not require presentation of documents that are to be issued or countersigned by the applicant. If a credit is issued including such terms, the beneficiary must either seek amendment or comply with them and bear the risk of failure to do so.
If correctly delivered, but applicant refuses to countersign the CMR, the beneficiaries won't receive any money!
-Each long journey starts with a small step-