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QUERY
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Hi Mr Old Man,
Could you pls clarify the para 159 ISBP latest version concerning Railway Bill as follows: International standard banking practice is to accept a railway bill evidencing date stamp by the railway company or railway station of departure without showing the name of the carrier…
. I wonder that if there is only date inside the stamp without name of railway company acceptable as per para 159?
. Pls share us experience about railway bill as the issuing bank does not control the goods (RWB mostly evidences the consignee as the importer)
Thanks
Ms NH
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COMMENT
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Hi NH,
If the railway bill has been identified to be signed by the carrier or an agent on behalf of the carrier, the date stamp that includes the date only (without showing the name of the carrier or a named agent signing for or on behalf of the carrier) is acceptable. This reflects a common practice in the railway industry.
It is true and correct that a railway bill is not a document of title which can be transferred by endorsement as an ocean bill of lading. Therefore, the railway bill should be consigned to a named consignee, i.e., the applicant/ importer, and not to order or to the order of any party.
If the bank wishes to control the goods, it can require a railway bill consigned to its name and then authorizes the applicant to take delivery of the goods by issuing a letter of authorization. But this bad practice is not encouraged. What’s more. The bank may encounter unexpected difficulties when the goods are consigned to its name. If you can not control the goods you must be able to control the applicant/importer. So, KYC measure is recommended.
Best regards,
Mr. Old Man
ansaren
May 6, 2011 at 1:05 am
dear mr. old man,First of all let me thank you for your comments on l/c. i really learned a lot of it.thank syou so much for your blog.i have a question:i am currently working in a bank as a new staaf, namely l/c depart ment. i would like to know how we cna best issue an l/c to import goods from china, while the exporter want to be paid 30% advance paymnet and 70% in lc at sight. should we mention that the total value is 100,000 or 70,000 in the l/c.best regards,hassan jama
mroldmanvcb
May 6, 2011 at 6:05 am
L/C value should be 70% of the contract; the advance payment of 30% should be settled outside L/C. The draft if any shall be 70% of invoice value. We often issue L/C of this type.