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transport documents

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Fri, 09/10/2010 - 01:44
LB
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When a credit calls for those transport documents which are not the documents of titles (CMR, Airwaybili, etc) how should the BNF prevent the risk of taking the goods by the applicant and not paying? (in case the documents are discrepant and the issuing bank does not have the obligation to pay BNF, but the applicat already holds the goods and is also unwilling to pay). 

 

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Fri, 09/10/2010 - 02:08
#1
LB
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air waybill

how does the exporter prevent the buyer from getting the merchandise without paying for it?

as I researched the airwaybill consignee should be listed as the buyer's bank, but with bank's permission only.

But many banks do not wish to impose these obligations of dealing with goods. So what would you suggest?

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Fri, 09/10/2010 - 02:01
#2
LB
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transport document

as I was reading in UCP 600 article 24 b i)

"a road transport document must appear to be the original for the consignor or shipper or bear no marking indicating for whom the document has been prepared"

ii)  document marked "duplicate" will be accepted as an original.

does this mean that the applicant can not take the goods if he does not hold the duplicate or the original for the consignor?

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Sun, 09/12/2010 - 11:54
#3
Abrar
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Transport document

For anything other than "documents of title" such as Bills of lading, goods may be released by the carrier to a properly identifid consignee, even without production of the transport document.  However, it has always been the practice under LC presentations to require presentation of an original document, as prima facie evidence of a contract of carriage.

Unless the issuing bank is looking to the underlying goods as security for payment default by the applicant, it is unlikely to wish to be nominated as a consignee under the transport document, especially since the bank would then be potentially liable for taking delivery if the buyer and seller were to exit the contract and did not provide disposal instructions. However, consigning goods to the bank with a subsequent "release"effected after payment by the applicant, seems to be the only viable option

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