QUESTION
Dear Mr. Old Man,
Sea waybill has been asked in LC instead of negotiable bill of lading. Now when the original documents are received, submitted sea waybill is presented in photocopy. When enquired about the same, the supplier is replying that
Quote
Since SWB will be surrendered at the time of issue, Sea Waybill will never come in Original.
Unquote
Is this the one? Don’t original sea waybill has to be submitted?
Anticipating your prompt response please.
Thanks
Person Pradhan
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ANSWER
Hi,
The supplier’s explanation about the non-negoatiable Sea Waybill is correct. It is said that the sea waybill bridges the gap between a paper bill of lading and an electronic one. It is used for a very short journey where the document cannot be available at the port of discharge at the time the vessel arrives. It is not issued to order but straight to a named consignee and it is deemed to be surrendered at the time of issue.
Therefore, the consignee can take delivery of the goods without presenting an original sea waybill provided he proves himself to be the consignee indicated on the sea waybill.
LAST BUT NOT LEAST, the issuing bank may not agree to issue an LC that requires presentation of non-negotiable sea waybills unless the applicant pledges cash deposit to secure the payment under the LC.
Best regards,
Mr. Old Man
