Home Mr Old Man SUSPECTION OF FRAUD

SUSPECTION OF FRAUD

2 min read
0
0
3,641

QUESTION

L/C allows shipment from USA to India.

In the B/L, both the place of receipt and port of loading indicate “New Jersey” and port of discharge and place of destination as name of Indian port.

B/L only states a vessel name of xxxx. No indication that any transhipment has been made. No mention of any second vessel name in the B/L.

On enquiry, it found that goods are loaded to new vessel yyy (from vessel xxx) at Seoul, Korea port on the way to the India.

Can we consider this as “fraud”? Shipping company may intentionally hide such “transhipment” information from the banks.

Your thoughts, please.

——–

ANSWER

Hi,

A nominated bank acting on its nomination, a confirming bank (if any) or the issuing bank shall examine the documents to determine, on the basis of the documents alone, whether or not the documents appear on their face to constitute a complying presentation. If the presentation is complying, it must honour. It cannot refuse to honor based on its suspicion of fraud unless it gets a court order preventing it from honouring the LC.

Kind regards,

Mr. Old Man

Check Also

INVOICE NOT CERTIFYING WHAT HAS NOT BEEN SHIPPED

QUESTION Dear Sir, LC allows both AIR and SEA shipment. Amount: USD 100,000 Shipment by AI…