NOTIFY PARTY ON BILL OF LADING

QUESTION

Dear Mr. Old Man,

LC states as follows:

– Field 50 (Applicant):

AAA Company

… Hong Kong

– Field 46A:  (Documents required)

…

Full set of clean on board original ocean bill of lading made out to the order of ABC Bank Ltd notify applicant, marked “freight prepaid”.

…

– Field 47A (Additional conditions):

All documents must state notify party as BBB Company … Hong Kong”

I want to know whether the bill of lading should indicate notify party as “AAA Company … Hong Kong” or as “BBB Company … Hong Kong”.

Thank you in advance.

Best regards,

PT

————

ANSWER

Hi,

It is obvious that  with regard to the notify party to be indicated on the bill of lading, the provision in Field 47A conflicts with that in Field 46A.

If the applicant’s intention is that the bill of lading is to indicate only “AAA Company … Hong Kong” as notify party,  the LC should stipulates as follows:

QUOTE

Field 46A:  Full set of clean on board original ocean bill of lading made out to the order of ABC Bank Ltd notify applicant (“AAA Company … Hong Kong”)…

Field 47A: “All documents EXCEPT BILL OF LADING must indicate “BBB Company … Hong Kong” as notify party.

UNQUOTE

If the applicant’s intention is that the bill of lading is to indicate “BBB Company … Hong Kong” as an additional notify party to “AAA Company … Hong Kong” , the LC should stipulates as follows:

QUOTE

Field 46A:  Full set of clean on board original ocean bill of lading made out to the order of ABC Bank Ltd notify “AAA Company … Hong Kong” and “BBB Company … Hong Kong” …

Field 47A: “All documents must indicate notify party as “BBB Company … Hong Kong”.

UNQUOTE

The applicant bears the risk of any ambiguity in its instructions. So, in my opinion, it is acceptable even when the bill of lading in question indicates notify party as  “AAA Company … Hong Kong”.

However, to avoid dispute, it is advisable that the bill of lading should indicate both “AAA Company … Hong Kong” and “BBB Company … Hong Kong” as notify parties. ISBP 745 paragraph E14(a) allows bill of lading to indicate one or more additional notify parties when the LC stipulates the details of one or more additional notify parties.

Kind regards,

Mr. Old Man