Home Uncategorized CARGO TO BE RELEASED WITH MORE THAN ONE BILL OF LADING TO BE SURRENDERED

CARGO TO BE RELEASED WITH MORE THAN ONE BILL OF LADING TO BE SURRENDERED

By Mr Old Man

Posted on September 10, 2013

3 min read

6,562

QUESTION

Dear Mr. Old Man,

We received two sets of documents with separate bills of lading, invoices, drafts… presented under two different LCs issued by the same bank.

Bill of lading No. 15452206178 states on its face the following clause:
ONE OF TWO PARTS CARGOES STOWED IN CONTAINER MOFU6713499 WITH OTHER PARTS UNDER B/L NO. 154452236260 CARGO TO BE RELEASED AGAINST PRESENTATION OF OBL NOS. 154452236260 AND 15452206178 UNDER VESSEL/VOY NYK VEGA/035W33.

Bill of lading No. 154452236260 states:
ONE OF TWO PARTS CARGOES STOWED IN CONTAINER MOFU6713499 WITH OTHER PARTS UNDER B/L NO. 15452206178 CARGO TO BE RELEASED AGAINST PRESENTATION OF OBL NOS. 154452236260 AND 15452206178 UNDER VESSEL/VOY NYK VEGA/035W33.

We refused the two sets of documents stating the same discrepancy: BILL OF LADING STATING CARGO TO BE RELEASED AGAINST PRESENTATION OF MORE THAN ONE BILL OF LADING. However, the presenter rejected the discrepancy arguing that the two sets of documents including bills of lading were presented to and received by us same day, hence, they form part of the same presentation.

Let us know if we were correct in our refusal.

Thank you in advance.

Best regards,
TD
————–

ANSWER

Hi,

Your refusal were correct. Please refer to paragraph E28 of ISBP 745, which says: “A bill of lading is not to expressly state that goods covered by that bill of lading will only be released upon its surrender together with one or more other bills of lading, unless all of the referenced bills of lading form part of the SAME PRESENTATION under the SAME CREDIT”.

The bills of lading in question did not form part of the SAME PRESENTATION UNDER THE SAME L/C.

Kind regards,
Mr. Old Man

19 Comments

Karim

April 13, 2017 at 5:07 am

Hi

I have a question please, how can it be a same presentation under the same LC if there is 2 sets of documents, 2 BLs…etc

Thanks

Reply

mroldman

April 14, 2017 at 1:53 pm

Hi,

A presentation may consist of more than one set of documents. You can present the two sets of documents under one covering schedule or letter.

Please note that when partial shipment is allowed, and more than one set of original bills of lading are presented as part of a single presentation made under one covering schedule or letter and incorporate different dates of shipment, on different vessels or the same vessel for a different journey, the earliest of these dates is to be used for the calculation of any presentation period, and each of these dates must fall on or before the latest shipment date stated in the L/C.

Kind regards,
Mr. Old Man

Reply

m3mpower

April 15, 2017 at 2:31 pm

Hi Mr Old Man.

The applicant bank has charged for discrepancies 250USD, and the first advisory bank also charged about 200 euros, for the following discrepancies :
-B/L:the mention (good only to be released against joint presentation of all originals Bs/L
(mscuvy127291,MSCUVY127317) is not acceptable (ISBP E28)
-EUR1:quoting vessel (vega epsilon)(different vessel than the one quoted on B/L).

This was a grouped merchandise, 2 exporters in one container and 2 LC, each exporter with its LC, exporter A and exporter B, and there was one applicant.

Now the shipping line say that they will always state that clause in their BL when there is more than one BL in the same container.
So how to avoid this discrepancy?

Also, the issuing bank of the 2 LC’s, has charged discrepancies from exporter A, and nothing from exporter B, why is that?

Thank you very much

Reply

mroldman

April 15, 2017 at 7:59 pm

This is LCL (Less Container Load) shipment and goods shared in the same container will be delivered at CFS (Container Freight Station). LCL shipment helps the shipper save the freight.
The discrepancy raised by the issuing bank is valid as per E28, which reads a bill of lading is not to expressly state that goods covered by that bill of lading will only be released upon its surrender together with one or more other bills of lading, unless all of the referenced bills of lading form part of the same presentation under the same credit.
The beneficiary should insist the carrier not to incorporate such statement in the B/L to avoid being refused.

Reply

Karim

April 16, 2017 at 6:14 pm

Hi Mr Old Man
Thank you for your reply.
May i ask you, you say this ” unless all of the referenced bills of lading form part of the same presentation under the same credit “.
How is it possible to do that?
For example importer X, opened a LC to exporter A, another LC to exporter B.
How is it possible for importer X to open one LC to both exporter A and exporter B?

Thank you
mroldman

April 17, 2017 at 11:12 am

It’s possible but should not as it is complicated and requires the content of many parties concerned.

Danushka

April 16, 2017 at 1:18 pm

Dear Mr.Old Man,

We (Issuing Bank) have requested for a port to port ocean bill of lading and the
BL presented from the beneficiary shows that there is a pre-carriage (Transhipment is allowed in the LC). So it is a fact that there has to be an extended onboard notation in the event of a pre-carriage. B/L Further states,

Pre-carriage by: OOCL Guangzhou V.082N
Ocean Vessel: Maersk Salina V.1704

On the BL body, it states,
Transhipment at Singapore on Vessel: Maersk Salina V.1704
Port of Loading: Tanjung Priok, Jakarta Indonesia
On vessel: OOCL Guangzhou V.082N
Shipped on Board Date: 06.04.2017

Is the extended onboard notation stated in the BL is acceptable?. Because I feel it has to be the main vessel and not the pre-carriage one.

Thanks in Advance

Danushka

Reply

mroldman

April 17, 2017 at 11:08 am

Where the bill of lading shows 2 vessels, the on board notation must indicate the date , the port of loading and the name of the vessel that leaves the port of loading. The case in question would occur in container transportation. The correct on board notation should indicate the name of the ocean vessel, i.e., Maersk Salina as goods in container are shipped on Maersk Salina at Tanjung priok.
However, in practice I would also come across on board notation as described, especially in container transportation

Reply

Danushka

April 19, 2017 at 11:40 pm

Thx Mr. Old Man

Reply

m3mpower

April 17, 2017 at 5:20 pm

Hi Mr Old Man

When the applicant, instructs his issuing bank to accept the discrepancies, at the time of opening the LC, is it normal the the issuing bank still charges fees for the discrepancies?

Thank you

Reply

mroldman

April 17, 2017 at 7:49 pm

Please note that even the applicant waives the discrepancies, the issuing bank still refuses the documents. What’s more? The applicant is not a party to the L/C, so he is not in position to instruct the issuing bank to accept the discrepancies. The issuing bank is entitled to discrepancy fee when the documents presented contained discrepancies.

Reply

m3mpower

April 18, 2017 at 4:14 am

Hi Mr Old Man

So what is the difference between when the applicant waives the discrepancies and when he does not?

Also, when the documents are presented with discrepancies, is it normal that the issuing bank detects them, and the first advisory bank or second advisory bank does not detect them?
I say this because the documents go through a revision before being sent to the issuing bank.

Regards

Reply

mroldman

April 18, 2017 at 8:40 am

When an issuing bank determines that a presentation does not comply, it may in its sole judgement approach the applicant for a waiver of the discrepancies. The issuing bank would honour when it receives from the applicant the waiver that is acceptable to the issuing bank. It is entitled to refuse and return the discrepant documents to the presenter even when it has received the waiver from the applicant (rarely but possible).

Reply

m3mpower

April 18, 2017 at 3:53 pm

Hi Mr Old Man

So if there are discrepancies, there are two possibilities for the issuing bank, refuse the documents and send them back to the advisory bank, or refuse the payment of the LC, is that correct?

Also, please answer this question, is it normal that the advisory bank does not detect discrepancies in the documents and the issuing bank does detect them?

Reply

mroldman

April 18, 2017 at 4:30 pm

Hi,

I would like to use the correct term “the presenter” instead of “the advisory bank”.

If the documents comply the issuing bank must honor. If the documents do not comply and the issuing bank decides to refuse it must give a single notice of refusal to the presenter. In the notice, it must state that it refuses to honour, discrepancies inrespectof which it refuses to honour and
(i) that the bank is holding the documents pending further instructions from the presenter; or
(ii) that the issuing bank is holding the documents until it receives a waiver from the applicant and AGREES TO ACCEPT IT, or receives further instructions from the presenter prior to agreeing to accept a waiver; or
(iii) that the bank is returning the documents; or
(iv) that the bank is acting in accordance with instructions previously received from the presenter.

Kind regards,
Mr. Old Man

Reply

m3mpower

April 18, 2017 at 4:47 pm

Hi Mr Old Man

I don’t think you understood my question.
First, you told me that the bank that notifies the LC, is called “first advisory bank” or “second advisory bank”.
The exporter, presents the documents to his bank or to the intermediary bank, which then revises the documents and sends them to the issuing bank.
Normally, when there is discrepancies, the bank of the exporter informs the exporter BEFORE sending the documents to the issuing bank.
My question is, is it normal that the bank of the exporter does not see any discrepancies? and that the issuing bank see discrepancies?
I mean, are not all the banks working under the same regulations ?

Thanks
mroldman

April 18, 2017 at 5:38 pm

You need to read article 3 UCP 600 to understand the terms advising bank, nominated bank, presenter…
It is quite normal that the exporter’s bank may not find the documents to contain discrepancies but the issuing bank may find some. It is also common that the exporter’s bank has found some discrepancies and advised the beneficiary of the same but the beneficiary cannot have the documents corrected and therefore, asks his bank to send the documents as they are to the issuing bank.
Last but not least, sometimes the issuing bank can raise disputable discrepancies . It is part of L/C transaction.
m3mpower

April 18, 2017 at 9:53 pm

Thank you very much for the explanation.

Is it a discrepancy, that the EUR1 quoted vessel is not the same vessel quoted on the BL ?

Best regards

mroldman

April 18, 2017 at 4:38 pm

Hi,

I would like to use the correct term “the presenter” instead of “the advisory bank”.

If the documents comply the issuing bank must honor.

If the documents do not comply and the issuing bank decides to refuse it must give a single notice of refusal to the presenter. In the notice, it must state that it refuses to honour, discrepancies inrespectof which it refuses to honour and
(i) that the bank is holding the documents pending further instructions from the presenter; or
(ii) that the issuing bank is holding the documents until it receives a waiver from the applicant and AGREES TO ACCEPT IT, or receives further instructions from the presenter prior to agreeing to accept a waiver; or
(iii) that the bank is returning the documents; or
(iv) that the bank is acting in accordance with instructions previously received from the presenter.
Kind regards,
Mr. Old Man

Reply