Mr Old Man Q&A FREIGHT FORWARDER’S BILL OF LADING By Mr Old Man Posted on September 21, 2018 4 min read 8 0 7,791 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, I have one question and need your answer please. There are situations where Freight Forwarder Bill of Lading is required instead of Ocean Bill of Lading. Will appreciate if you could mention these situations. Awaiting your answer. Thanks & Regards, Ziyad —– ANSWER Hi, Regarding Freight Forwarder’s Bill of Lading, I would like to note the following: Freight forwarder’s bill of lading, which is also known as House Bill of lading, is a transport document which is issued by the freight forwarder. Freight forwarder’s bill of lading would be issued on a pre-printed form of the freight forwarder company’s bill of lading. It states the terms and conditions of the freight forwarder company, as a result consignee will not be having a legal protection in case the goods are damaged or lost in transit. This is the reason why issuing bank/applicant would not accept Freight Forwarder’s Bills of Lading. If LC requires Freight Forwarder’s Bill of Lading, then Bill of Lading signed by Freight Forwarder is acceptable. Freight Forwarder’s Bill of Lading may be signed by Freight Forwarder without it being necessary to indicate the capacity in which it has been signed or the name of the carrier. Regarding the clause “Freight Forwarder’s Bill of Lading is acceptable” or “Freight Forwarder’s Bills of Lading are not acceptable”, please refer to ISBP 745 E3 (b) and E4, which are quoted below for your easy reference: E3 (b). When a credit indicates “Freight Forwarder’s Bill of Lading is acceptable” or “House Bill of Lading is acceptable” or words of similar effect, a bill of lading may be signed by the issuing entity without it being necessary to indicate the capacity in which it has been signed or the name of the carrier. E4. A stipulation in a credit that “Freight Forwarder’s Bills of Lading are not acceptable” or “House Bills of Lading are not acceptable” or words of similar effect has no meaning in the context of the title, format, content or signing of a bill of lading unless the credit provides specific requirements detailing how the bill of lading is to be issued and signed. In the absence of these requirements, such a stipulation is to be disregarded, and the bill of lading presented is to be examined according to the requirements of UCP 600 article 20. Kind regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?