Letter of Credit Forum

Hi,

We have shipment to Algeria under sight LC, where it has requested to send 1/3 BL to consignee directly alongwith the Original Invoice and Original COO. 

Is Consignee can clear the shipment by using One Original BL?

The LC is confirmed.  Is the Payment is secure?

Awaiting your valuable inputs.

Thanks and regards,

Nasar. K

 phill doran replies:

Hello Nasar K

(For mysterious technical reasons I cannot reply in the ‘normal manner to your post).

If you are working with a credit and will bills of lading, it is NEVER a good idea to let any of the ‘original’ documents travel outside of the credit certainly not to travel directly to your applicant/buyer who – as you have noted – can obtain release of the goods regardless of the credit working or not.

If it is operationally vital that the one bill travels outside of the credit, then first get the applicant to issue a waiver accepting all discrepancies – or more exactly waiving their right to object to a non-compliant presentation. Despite having a confirmation, you have no idea if you will actually get paid or not until you present your papers, and what would you position be if you have a ‘fatal’ discrepancy then? How do you motivate an amendment when the buyer already has the cargo?

I would say do not send the one bill directly to the buyer, but if it must happen, then do not send it until the waiver is accepted by the issuing bank and your confirming bank.

Just my thoughts

Cheers – I wish you well with this

phill
“...in the kingdom of the blind; what you see is what you get...”