CONSIGNEE IN SURRENDERED BILL OF LADING

QUESTION

Dear Mr. Old Man,

We are arguing about consignee in Surrendered Bill of Lading and need your expert opinion. The case is as follows:

L/C issued on 15 August, 2017  required Bill of Lading made out to the order of issuing bank.

Amendment  issued on 20 August, 2017 states “Surrendered Bill of Lading acceptable”

The beneficiary presented  Surrendered Bill of Lading indicating consignee as the applicant.

We want to know whether we can raise the discrepancy “Consignee in Surrendered Bill of Lading not as required by LC”?

Thank you in advance.

Best regards,

PT

——

ANSWER

Hi,

It is common practice that surrendered bill of lading  is consigned to the applicant. Therefore, it is almost impossible to insist a surrendered bill of lading to indicate consignee as “to the order of issuing bank”. When issuing amendment allowing the presentation of surrendered bill of lading, the issuing bank should know this practice, and therefore, should not raise such a discrepancy.

It is further noted that surrendered bill of lading is not a transport documents covered by UCP 600 articles 19-25. It is examined only to the extent expressly stated in the L/C, otherwise according to UCP 600 sub-article 14(f).

Kind regards,

Mr. Old Man

P/s: For more information about surrendered bill of lading, please follow the following link:

https://nhducdng.wordpress.com/2015/08/03/whether-article-20-is-applicable-to-surrendered-bill-of-lading/