QUESTION
Dear Mr. Old Man!
It is understood that where a bill of lading is made out to the order of the issuing bank, the certificate of origin may indicate the L/C applicant as consignee. I wonder whether this is also applicable to other documents like insurance policy, invoice, packing list…
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Thank you.
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ANSWER
Hi,
According to ISBP 745 paragraph L5, consignee information, when shown, is not to conflict with the consignee information in the transport document. However, when LC requires a transport document to be issued “to order”, “to the order of shipper”, “to order of issuing bank”, “to order of nominated bank (or negotiating bank)” or “consigned to issuing bank”, a certificate of origin may show the consignee as any entity named in the LC except the beneficiary. When LC has been transferred, the first beneficiary may be stated to be the consignee.
This principle equally applies to documents other than certificate of origin. Please see ICC opinion R699/TA607 quoted below:
QUOTE
In any event, whilst the practice highlighted in paragraph 199 (now paragraph 184) of ISBP concerning the construction of the consignee (or similar) fields on a certificate of origin when such transport document is issued “to order” or “to order of [named issuing bank]” is included under the heading “Certificate of Origin”, the principle equally applies to other documents on which there is consignee information completed. There is no discrepancy.
UNQUOTE
Best regards,
Mr. Old Man
Asif
February 20, 2023 at 5:37 pm
Dear Mr. Old Man, please let me know your comment on the following:
Scenario 01: Credit requires Bill of Lading issued to the order of Bank A (issuing Bank) and a certificate of origin with other docs.
Presentation includes Bill of Lading issued to the order of Bank A (issuing Bank) and a certificate of origin with consignee shown as ABC Co. (Applicant of the credit) with other docs.
Question: Can Bank A refuse the presentation under ISBP 745, Paragraph L-5 as consignee information of Certificate of Origin inconsistent with that mentioned in the B/L.
Scenario 02: Credit requires Bill of Lading issued to the order of ABC Co. (Applicant of the credit) and a certificate of origin with other docs.
Presentation includes Bill of Lading issued to the order of ABC Co. and a certificate of origin with consignee shown as Bank A (Issuing bank of the credit) with other docs.
Question: Can Bank A refuse the presentation under ISBP 745, Paragraph L-5 as consignee information of Certificate of Origin inconsistent with that mentioned in the B/L.
Mr Old Man
February 20, 2023 at 7:37 pm
Scenario 1: No.C/O comples with L5
Scenario 2: Yes. C/O is discrepant, not complying with L5