SHIPPING GUARANTEE FOR RELEASE OF CARGOES WITHOUT PRODUCTION OF ORIGINAL BL

QUESTION

Respected Sir

I have a query with regard to release of shipment without BoL , is it possible or what steps do we need to take to facilitate this pl. your thoughts would be much appreciated really .

Regards

Basskar Verma
AISL
——————
ANSWER

Hi,

The carrier would only release the cargoes against a duly endorsed original BL. If the importer wishes to take up delivery of the cargoes without production of original bills of lading, he must furnish the carrier with a bank guarantee i.e., a shipping guarantee issued by a bank.

A bank would agree to issue such a bank guarantee if the importer satisfies the following basic conditions:

1. The importer submits a request for issuing a bank guarantee for release of cargoes without presentation of original bill of lading together with a copy of bill of lading and invoice.

2. If it is an L/C transaction, the importer must undertake to pay irrespective of any discrepancies that may be contained the documents presented.

3. The importer must deposit funds (if the transaction is self financed) or submit promissory notes (if the transaction is financed by the bank) to cover the payment.

For documentary collection transactions, to avoid unexpected risks such as fraud, the bank would only agree to issue a shipping guarantee if there are evidences that documents including bills of lading issued to their order will be sent to them for collection and the importer is their good and reliable customer.

You may approach your bank for further information.

Best regards,

Mr. Old Man.