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TO ORDER BILL OF LADING AND ENDORSEMENT

By Mr Old Man

Posted on March 6, 2010

4 min read

29,339

QUERY FROM POPBABI
Sent To: Mr. Old Man

B/L

If L/C require B/L to order endorsed of Issuing Bank , it is synonymous with requirement on B/L to be endorsed by Shipper ?

At that time, Consignee on B/L must be one of each cases:

– to order
– to order of shipper
– blank
– to bearer

——————————————–

COMMENT FROM MR. OLD MAN

Hi,

To tell the truth, I ‘m not sure I can understand what you mean by saying “B/L to order endorsed of Issuing Bank”. Hence, I will not give you a straight answer but try to approach the matter in my own understanding.
Bill of Lading made out to the order of Issuing Bank:

If LC requires the Bill of Lading made out to the order of the issuing bank, the phrase “to the order of a named issuing bank” must be indicated in the consignee box of the Bill of Lading. And it is the issuing bank that would endorse the Bill of Lading to enable the applicant to take up of the delivery of the cargo once the documents presented are complying or once the applicant accepts to pay the discrepant documents.

Bill of Lading made out to order blank endorsed:

If LC requires the Bill of Lading to be issued to order blank endorsed , the Bill of Lading must be issued “to order” or “to order of the shipper”. And it is the shipper that would endorse in blank on the back of the Bill of Lading by signing with authorized signature and stamping with the company’s chop. Please note that the name of the company on the chop should be identical to that in LC.

Blank endorsement to Bearer:

“Endorsed in blank” means “endorsed to Bearer”, that is to say, any party that is holding the Bill of Lading would become a holder in due course provided he has obtained it “in good faith” and “for value”. A person stealing it from the mail or pick up it by chance is not the holder in due course. He may face the risk of being prosecuted if he tries to take up the delivery of the cargo with the Bill of Lading that he stole or picked up by chance.

Hoping this can help you.
Best regards,
Mr. Old Man (Nguyen Huu Duc)

Ps: In reply to your query, Mr. Old Man referred to Mr. T.O Lee’s article: What “to order” and “blank endorsed” actually means? published in Lloyd’s of London Press Maritime Asia/Intermodal Magazine December 1993. …

61 Comments

anonymous

April 6, 2010 at 4:04 pm

Mary writes:Pls re-confirm "If LC requires the Bill of Lading to be issued to order blank endorsed , the Bill of Lading must be issued “to order” or “to order of the shipper”.. Because I understand that the nature of 02 items (“to order” or “to order of the shipper”.) is the same. However, L/C only requires Bill of Lading to be issued to order, so I think the consignee box of the Bill of Lading should be only indicated "to order" I/O “to order of the shipper”.Pls comment if understanding wrongly. TKS

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mroldmanvcb

April 6, 2010 at 10:04 pm

Hi,This is to re-confirm that BL made out to order or BL made out to the order of shipper is acceptable.I agree with you that if LC requires BL be issued to order then BL presented should indicate to order i/o to the order of shipper. Yet, you'll find no good reason to reject the documents if the BL is issued to the order of the shipper.Regards,Mr. Old Man

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anonymous

April 8, 2010 at 4:04 pm

Hiá»n Thá»¥c writes:That is not clear.If "to the order of shipper" that means, the commodity is not ready to be transferred to the consignee/buyer, so the right to dispose the goods too, even the buyer paid, the seller received money. How can say the deal is finish if one of the parties not follow the his respond that is transfer the goods that presented on the document!

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mroldmanvcb

April 8, 2010 at 5:04 pm

The issue should be understood in the context of LC requirement: BL made out to order blank endorsed.If LC requires the Bill of Lading to be issued to order blank endorsed , the Bill of Lading must be issued “to order” or “to order of the shipper”. It is the shipper that will endorse the b/l whether it is made out to order or to the order of the shipper.FYI: As said in Mr. Old Man's original post, in reply to the query he referred to Mr. T.O Lee’s article: What “to order” and “blank endorsed” actually means? published in Lloyd’s of London Press Maritime Asia/Intermodal Magazine December 1993. T.O Lee is one of the well-known experts in LC world.

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anonymous

April 22, 2010 at 6:04 pm

AK writes:Xin loi anh, cho em confirm lai la:Va nha xuat khau (chu khong phai nha nhap khau) co the ky theo dang "on behalf of shipper" nhu quy dinh tai ISBP para 102..Cam on anh!!!

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anonymous

April 22, 2010 at 6:04 pm

AK writes:Chao Anh Duc!Nho anh tu van giup em truong hop nay nhe:.Em co BCT xuat, B/L the hien "consignee: to order" nhung do L/C quy dinh Shipper phai the hien ten nha nhap khau..Theo anh, nha xuat khau co phai ky hau B/L nay khong?Va nha nhap khau co the ky theo dang "on behalf of shipper" nhu quy dinh tai ISBP para 102.Cam on anh nhieu!!!!!!!

Reply
mroldmanvcb

April 23, 2010 at 7:04 am

Dường như câu hỏi có chút nhầm lẫn, Mr. OM trả lời cho cả 2 trường hợp:Mr. Old Man cho rằng nếu BL được yêu cầu "to order, blank endorsed" với "shipper" là nhà xuất khẩu thì nhà xuất khẩu phải ký hậu BL để nhà nhập khẩu có thể đi nhận hàng. BL sẽ bất hợp lệ nếu không ký hậu.Trường hợp vận đơn yêu cầu phải thể hiện tên của shipper là nhà nhập khẩu thì LC không nên yêu cầu BL phải được ký hậu bởi tại thời điểm xuất trình người hưởng lợi (nhà xuất khẩu) không thế ký hậu. Tuy nhiên, nếu LC có yêu cầu như vậy thì nhà nhập khẩu nên chấp nhận BL đó vì khi nhận chứng từ từ NHPH nhà nhập khẩu có thể ký hậu để đi nhận hàng hoặc ký hậu cho bất kỳ bên nào khác.

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anonymous

April 23, 2010 at 6:04 pm

AK writes:Khong nham lan dau anh Duc ah.Truong hop cua em la "Trường hợp vận đơn yêu cầu phải thể hiện tên của shipper là nhà nhập khẩu". Neu khong ky hau em so NHPH bat bat hop le. Nhung em biet ky hau la khong dung vi Shipper khong phai la nha xuat khau. Do do, de tranh bi bat hop le em co the su dung ""on behalf of shipper" nhu quy dinh tai ISBP para 102" duoc khong anh? Nhan day anh co the giai thich cum tu ""on behalf of shipper" cu the la ai duoc khong anh?Cam on anh nhieu.

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mroldmanvcb

April 23, 2010 at 10:04 pm

ISBP para. 102: If a bill of lading is issued to order or to order of the shipper, it must be endorsed by the shipper. An endorsement indicating that it is made for or on behalf of the shipper is acceptable. "on behalf of shipper" được hiểu là bất kỳ bên nào được shipper ủy quyền để ký hậu. Nếu LC yêu cầu BL thể hiện nhà nhập khẩu là shipper và nhà nhập khẩu ủy quyền cho nhà xuất khẩu ký hậu BL thì nhà xuất khẩu có thể ký hậu miễn là sự ký hậu đỏ phải thể hiện là thay mặt shipper. Ví dụ: BL thể hiện shipper là ABC COMPANY, nhà xuất khẩu XYZ COMPANY được ủy quyền ký hậu có thể ký hậu như sau:For and on behalf of ABC COMPANY(signature)—————-XYZ COMPANY

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mroldmanvcb

April 24, 2010 at 8:04 am

Dung nhu vay. Ngan hang khong co nghia vu phai kiem tra giay uy quyen de xem thu viec ky hau do co hop thuc hay khong. Tuy nhien gia dinh rang co tranh chap lien quan den viec ky hau khong hop thuc va vu viec do duoc dua ra toa de xu ly thi nha xuat khau phai chung minh rang ho duoc nha nhap khau uy quyen ky hau.

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anonymous

April 24, 2010 at 8:04 am

AK writes:Da, Em cung hieu nhu anh vay. Tuy nhien, em co the xem viec uy quyen do la ben ngoai L/C va ngan hang khong co trach nhiem phai kiem tra duoc khong anh. Vi em so ngan hang phat hanh bat hop le la khong co su uy quyen o day..

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anonymous

November 19, 2010 at 12:11 pm

Anonymous writes:Chao anh!Anh vui long tu van giup cho em van de nay nha. L/C yeu cau B/L made out to the order and blank endorsed. Nhu vay tren bill em se the hien "to the order" va ky hau? To the order –> ko biet la theo lenh cua ai? Nhu vay em co duoc the hien la "to the shipper's order" va ky hau duoc khong? Em da lam nhu vay va ngan hang ko chap nhan. Vay trong truong hop nay em phai lam nhu the nao de bo chung tu duoc hop le?Cam on anh

Reply
mroldmanvcb

November 19, 2010 at 4:11 pm

B/L made out to order is understood as B/L made out to the order of the shipper. It is the shipper that will endorse the B/L whether it is issued to order or to the order of the shipper. If LC requires B/L made out to order blank endorsed, B/L presented should be issued in such a manner, i.e., to order, and endorsed in blank by the shipper who is normally also the beneficiary.

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anonymous

November 26, 2010 at 9:11 pm

Anonymous writes:Chào anh!Cám ơn anh đã giải đáp thắc mắc của em.Anh có thể cho em biết dung sai cho phép tối đa của mặt hàng tính trọng lượng theo tấn trong một hợp đồng ngoại thương là bao nhiêu không?Em làm xuất khẩu cho mặt hàng thức ăn thủy sản. Chỉ xài hợp đồng ngắn hạn và giao hàng một lần. Trên hợp đồng có quy định dung sai cho phép về trọng lượng và số tiền là 5percents. Như vậy sau khi xuất hàng, số lượng thay đổi tương ứng với số tiền, nhưng vẫn nằm trong dung sai quy định 5percents. Như vậy em phải chuẩn bị chứng từ đi khai hải quan và chứng tử gủi hàng như thế nào?(tờ khai xuất khẩu, commercial invoice, packing list, CO form B).Trong trường hợp thanh toán LC, trên LC có quy định dung sai cho phép là 5percents như đã thỏa thuận trên hợp đồng, như vậy bộ chứng từ chênh lệch số lượng và số tiền so với LC trong khoảng dung sai đó là ok phải không anh?Thường thì đối với những lô hàng đăng ký kiểm dịch, thì phải chờ có kết quả kiểm dịch ok rồi mới được tiến hành xuất hàng phải không anh? Như vậy thì số lượng hàng phải xuất đúng theo số lượng đã đăng ký kiểm dịch?Cám ơn anh.

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mroldmanvcb

November 27, 2010 at 10:11 am

Số lượng hàng hóa được yêu cầu trong LC có thể biến động với dung sai +/-5%. Quy định này không áp dụng nếu LC quy định số lượng hàng hóa không được vượt quá hoặc giảm bớt, hoặc nếu LC quy định số lượng bằng đơn vị đóng gói hoặc mặt hàng riêng lẻ . Như vậy, đối với hàng hóa được tính bằng đơn vi tấn thì dung sai cho phép là +/- 5%.Khi khai báo hải quan, bạn phải xuất trình hóa đơn, vận đơn ghi rõ cụ thể số lượng hàng hóa. Hóa đơn hay vận đơn không thể hiện dung sai.Bạn có thể giao hàng sau khi đã được kiểm dịch. Số lượng cụ thể phải bảo đảm theo quy định của LC, nếu không chứng từ sẽ không phù hợp.

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anonymous

January 22, 2011 at 12:01 pm

Anonymous writes:Anh Mr. OM cho em hỏi. Em có lô hàng xuất khẩu, nhưng không đủ vốn để thanh toán cho người bán hàng cho em.Em mua hàng trong nước và xuất khẩu đó ạ.Vậy em muốn yêu cầu người mua nước ngoài mở L/C dài hạn và dùng L/C người mua phát hành cho em và bộ hồ sơ hoàn hảo để thế chấp ngân hàng khác vay tiền thanh toán trước cho người bán hàng trong nước cho em. Thì theo em nghĩ ban đầu mình phải liên hệ với ngân hàng mình vay tiền trước và trên B/L em sẽ để to order of ( ngân hàng em vay tiền) rồi sau khi vay tiền thanh toán thì ngân hàng em vay sẽ liên hệ với ngân hàng thông báo ban đầu để thanh toán lại vì bộ hồ sơ là hoàn hảo. Phần chênh lệch trừ tiền thế chấp sẽ là lợi nhuận bên em. Theo a như vậy đúng chưa ạ.

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mroldmanvcb

January 22, 2011 at 3:01 pm

Nếu LC cho phép chiết khấu tại ngân hàng bất kỳ và bạn đã giao hàng theo L/C, bạn có thể xuất trình chứng từ cho ngân hàng của bạn để chiết khấu trên cơ sở có truy đòi (tương tự như vay thế chấp bộ chứng từ làm đảm bảo) và sử dụng số tiền chiết khấu đó thanh toán cho người bán hàng.Bạn lưu ý rằng vận đơn lập theo lệnh của ai là do L/C quy định, bạn không thể tự tiện lập theo lệnh của ngân hàng khác với ngân hàng hoặc bên được LC quy định.Cũng xin lưu ý thêm rằng bạn chiết khấu chứng từ xuất trình theo L/C, chứ không phải là thế chấp L/C. L/C không phải là chứng từ có giá, do vậy, không được chấp nhận là tài sản thế chấp.

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anonymous

January 24, 2011 at 11:01 am

Anonymous writes:Em cảm ơn anh nhiều lắm, em hiểu 90% cách làm việc rồi. Nhưng em còn 2 thắc mắc:Một là: Ngân hàng em chiết khấu chứng từ thì sẽ dựa vào bộ chứng từ để truy đòi ngân hàng phát hành hay ngân hàng thông báo, và việc chuyển tiền trong trường hợp đó như thế nào, em và Ngân hàng em chiết khấu sẽ có HĐ ràng buộc gì ạ.Hai là :Về mặt thời hạn phát hành L/C gốc, mình nên thông báo cho người mua nước ngoài mở L/C khi nào là tốt nhất, hàng đã thông quan hay hàng đã lên tàu. Thời hạn hiệu lực của L/C như thế nào để kịp hoàn thành xong hết các thủ tục chiết khấu thanh toán và truy đòi để kịp thời hạn của L/C. Theo em nghĩ thời hạn của L/C nên tính bao gồm: thời gian đợi ngày closing time để hàng lên tàu + thời gian tàu đi trên biển (T/T) + thời gian làm chiết khấu bên này( có thể làm song song với lúc tàu chạy vì mình đã có bộ hồ sơ) + thời gian truy đòi và thời gian ngân hàng thông báo check với ngân hàng phát hành . Em sợ nếu quá hạn L/C gốc thì sẽ không được thanh toán và lúc đó lại nảy sinh rắc rối, anh cho em ý kiến ạ. Thật sự nó rắc rối quá , em cảm ơn ạ

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mroldmanvcb

January 24, 2011 at 10:01 pm

Thành thật xin lỗi bạn nhưng qua câu hỏi của bạn tôi thấy rằng bạn chưa hiểu nhiều về phương thức thanh toán L/C. Một câu trả lời ngắn chắc không thể làm bạn hiểu hết vấn đề, do vậy, tôi đề nghị bạn tìm đọc kỹ về phương thức thanh toán này qua sách giáo khoa. Sau khi đọc kỹ rồi mà bạn vẫn còn một vài chỗ chưa hiểu, bạn có thể hỏi và tôi sẵn sàng trả lời.

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anonymous

July 29, 2011 at 2:07 pm

Anonymous writes:Anh giúp em trường hợp này được ko:LC của em là LC transfer. Buyer là Japan, transfer qua ngân hàng trung quốc, với trung gian là công ty HongKong. Trên LC yêu cầu BL to order blank endorsed. Vậy em là nhà XK có bị trường hợp công ty HONG KOng và Japan cấu kết lấy hàng của em rồi ko thanh toán ko?

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mroldmanvcb

July 29, 2011 at 11:07 pm

Nếu L/C yêu cầu BL to order blank endorsed thì nên yêu cầu 3/3 BL gốc xuất trình qua ngân hàng để hạn chế rủi ro. Lưu ý không chấp nhận 1/3 BL gửi cho người mua.

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mroldmanvcb

June 7, 2013 at 9:06 am

Chắc chắn BL ghi như vậy là có vấn đề. Lẽ ra phải thể hiện tên cụ thể của consignee. Mr. Old Man e rằng hãng tàu sẽ khó dễ nhưng đây là lỗi của hãng tàu chắc họ sẽ tìm cách giải cho bạn.

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anonymous

June 7, 2013 at 9:06 am

Anonymous writes:Chào a Đức, cho e hỏi em là nhà nhập khẩu, trên bill lấy hàng thể hiện là TO THE ORDER OF CONSIGNEE thì khi lấy hàng có trục trặc gì không a?

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anonymous

January 16, 2014 at 11:01 am

Tuan Hoang writes:Hi A Đức, nhờ a Đức tư vấn giúp e vấn đềtrong LC có yêu cầu: "BL made out or endorse to our order marked: freight payable at destination and notify party: applicant"thì trên bill phần consignee và notify nên thể hiện như thế nào cho đúng

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anonymous

January 16, 2014 at 3:01 pm

Tuan Hoang writes:Thanks a Đức nhìu nhé 🙂

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No name

November 23, 2016 at 10:03 pm

Dear Mrs Old Man,
Sorry I can’t find the topic relating to “bearer B/L” and had no idea how to start a topic, so I just want to have questions here:
1. If I have ” To Order” B/L but not endorsed at all on the back side of B/L. Will the Bearer be able to collect the Goods?
2. If bank receives docs with “bearer B/L”(aka blank information in the box “Consignee”), is this valid if the shipper has endorsed it to order of issuing bank, provided that LC requires B/L made out to order of issuing bank.
3. Since I am confused about “bearer B/L”. Is this “to order B/L” is to be considered as “bearer B/L”?
Thanks

Reply

mroldman

November 24, 2016 at 9:37 am

1. To order B/L is to be endorsed by the shipper to enable the holder to take delivery of the goods. An endorsement may be made by a named entity other than the shipper, provided the endorsement is made for [or on behalf of] the shipper.
So, you know what to do to take delivery of the goods in this case, don’t you?

2. It is acceptable.

3. A bearer B/L states that delivery will be made to whoever holds the bill (no endorsement is required) while a to order B/L is to be endorsed by the shipper to enable the holder to take delivery of the goods.

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mroldman

December 21, 2016 at 8:18 pm

1) No. The B/L must be endorsed by the shipper
2) Yes
3) Bearer B/L and to order B/L duly endorsed are to some extent the same, that is to say, the holder in due course can take delivery of the goods when submitting the b/l to the shipping company or its agent.

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Naima

December 21, 2016 at 5:57 pm

To whom the Bill of lading in Letter of Credit is to Order of:

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mroldman

December 21, 2016 at 8:12 pm

Where L/C requires B/L to be made out to order blank endorsed, the B/L is to be issued “To order” and endorsed in blank
Where L/C requires B/L to be made out to the order of a party, e.g., to the order of the issuing bank, the B/L is to be issued to the order of the issuing bank

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Naima

December 22, 2016 at 2:03 pm

Hi ,,

Thank you for your reply but sometimes i have one L/C Swift showing a name of the issuing Bank ( Sender )
XXX BANK , NAME OF THE CITY , NAME OF THE COUNTRY
But in the Required documents :
Field 46A:
They are asking for the TRANSPORT DOCUMENT TO BE ISSUED OR ENDORSED TO THE ORDER OF THE XXX BANK ( the same name stated in the Sender of the message ) but no informations about the city name or the country name
1. So the question is it the same bank ( even no informations about the city or the country ).
2. For the name of the Consignee to be put in the other required documents
( Commercial Invoice , Packing List and Certificate of Origin ) shall i put the same informations as the Bill of Lading ( XXX BANK ) or is it the one shown in the Sender , Issuing Bank ( XXX BANK , NAME OF THE CITY , NAME OF THE COUNTRY )
3. The question the consignee for the B/L is the same to be put in the other documents even no informations about the city and the country are there )
4. If we have only the name of the Bank in the B/L that to be order to , is it the same as in the Sender , Issuing Bank in the swift message.
This is the fourth message i am sending and i am not finding any reply and it is deleted also.
Can you please reply

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mroldman

December 28, 2016 at 9:38 am

Branches of a bank in different countries are considered to be separate banks. I think banks in your case are in the same country. No discrepancy. Consignee shown as TO THE ORDER OF THE SAUDI INVESTMENT BANK is ok.

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Naima

December 22, 2016 at 12:30 pm

Ok thank you , but sometimes in the L/C ( Swift Message ) ,the Transport document shall be issued or endorsed to the order of a named bank e.g.. TO THE ORDER OF THE SAUDI INVESTMENT BANK.
The Issuing Bank ( Sender ) of the same L/C is :
SAUDI INVESTMENT BANK, THE RIYADH SA
Here is the consignee the same one or is it a branch ?
Shall i put the name of the consignee in the other documents ( Invoice , Packing list and Certificate Of Origin ) same as in the B/L : THE SAUDI INVESTMENT BANK or it will be the sender ( Issuing bank ).
Here i am confused about the Consignee in B/L is TO THE ORDER OF THE SAUDI INVESTMENT BANK ( here there is no address , no country mentioned ) ,
so is it the same one means the issuing Bank as mentioned in the swift message ( Sender ).
Please can you help me in that as no one is giving me a clear answer

Reply

mroldman

December 28, 2016 at 9:32 am

Branches of a bank in different countries are considered to be separate banks. I think banks in your case are in the same country. No discrepancy. Consignee shown as TO THE ORDER OF THE SAUDI INVESTMENT BANK is ok.

Reply
Naima

December 28, 2016 at 12:55 pm

Hi,,

Thank you for your reply.
Yes the banks are in the same country.
So as i understood , the Consignee shown in the other documents ( Commercial Invoice , Packing List and Certificate of Origin ) will be THE SAUDI INVESTMENT BANK ( same one in the Bill of Lading ).

Or
The Consignee in the B/L is TO THE ORDER OF THE SAUDI INVESTMENT BANK
and i will put for the Other required documents the Consignee as the Issuing bank ( Sender in the Swift message ) SAUDI INVESTMENT BANK, THE RIYADH SA

So there will be no discrepancy for both cases

Reply

mroldman

December 28, 2016 at 2:30 pm

With regard to information about consignee on other documents, it is ok to just state “THE SAUDI INVESTMENT BANK”

Reply

Danushka

December 24, 2016 at 12:50 am

Dear Mr. Old Man,

Can you explain what do you mean by Forwarder B/L, House B/L & Master B/L (With examples) as I’m a bit confused with them?.

Reply

mroldman

December 28, 2016 at 9:39 am

Please google for understanding. Sorry but I have no much time to answer alot of question at one time

Reply

Naima

January 9, 2017 at 12:52 pm

Hi Mr Old Man,,

Please sometimes i am having L/C that are confusing me as in the Documents Required 46A,,

The Bill of Lading is to be to the order of a named bank e.g.. TO THE ORDER OF THE BANK MUSCAT SAOG etc…..

The Issuing Bank in the Swift Message is
BMUSOMRXXXX
BANKMUSCAT SAOG
MUSCAT OM

My Question is
1.When a Bill of Lading is to the order of a named bank is it always the Issuing bank ?
So why the banks are not putting the full name of the Issuing Bank in to the order of in Bill of Lading.

2. For the Other Documents Required , as Commercial Invoice , Packing List , Certificate of Origin etc to be presented along with the Transport document the Consignee shown on those documents will be the same as in the Bill of Lading ?

3. Can you please tell me what are the the parties that are Consignee in the L/C (
To Order of Bill of Lading )

4. For the Bank above the Consignee shown on the other documents will be THE BANK MUSCAT SAOG ?

Reply

mroldman

January 9, 2017 at 2:27 pm

Hi,

1. BL must show consignee as required by the L/C.
Where the L/C requires BL to be issued to the order of the issuing bank (and the issuing bank’s name is, for example, ABC Bank), then the BL must be issued to the order of ABC Bank.
Where the L/C requires BL to be issued to the order of a named bank other than the issuing bank (and that bank’s name is, for example, XYZ Bank), then the BL must be issued to the order of XYZ Bank.
BL and LC are separate documents. It is agreed that the L/C should clearly state the name of the issuing bank to the oder of which the BL is made.

2. No need when L/C required BL to be issued to the order…
Please refer to ISBP 745 L5) Consignee information, when shown, is not to conflict with the consignee information in the transport document. However, when a credit requires a transport document to be issued “to order”, “to the order of shipper”, “to order of issuing bank”, “to order of nominated bank (or negotiating bank)” or “consigned to issuing bank”, a certificate of origin may show the consignee as any entity named in the credit except the beneficiary. When a credit has been transferred, the first beneficiary may be stated to be the consignee.
This also applies to other documents.

3. It depends on the L/C requirement.
The consignee can be a named party, e.g., the applicant (Straight BL).
It can be to order blank endorsed (the holder in due course is entitled to the goods shipped).
It can be to the order of the negotiating bank and endorsed to the order of of the issuing bank.
It can be to the order of the issuing bank.
….

4. Other documents should show any party named in the L/C except the beneficiary.

Kind regards,
Mr. Old Man

Reply

Naima

January 10, 2017 at 12:53 pm

Good Day Mr.Old Man,,

Thank you very much for your reply, but still i did not get as when an L/C is asking for a Bill of Lading to be to the order of a named bank e.g
TO THE ORDER OF THE BANK MUSCAT SAOG

The Issuing Bank in the Swift Message is
BMUSOMRXXXX
BANKMUSCAT SAOG
MUSCAT OM

Please is it the same Bank so is it a sufficient Information to put only in the case of the consignee in the Bill of Lading:
TO THE ORDER OF THE BANK MUSCAT SAOG

As you are seeing here the Bill of Lading is to THE ORDER OF ( ONLY THE NAME OF THE BANK and it is the same name as the Issuing Bank ) so the Consignee in this case is the Issuing Bank
SO
TO THE ORDER OF THE BANK MUSCAT SAOG
AND
BMUSOMRXXXX
BANKMUSCAT SAOG
MUSCAT OM
ARE SAME???

Is the Consignee here the Issuing Bank : (BANKMUSCAT SAOG MUSCAT OM ) even when the B/L is to the Order only for the Name of the Bank TO THE ORDER OF THE BANK MUSCAT SAOG ?

4. Other documents should show any party named in the L/C except the beneficiary. Please can you inform me who is this named party in the L/C

Reply

mroldman

January 10, 2017 at 2:15 pm

1) Don’t make it too complicated. If the L/C requires BL to be issued TO THE ORDER OF THE BANK MUSTCAT SAOG, then the BL must show consignee as TO THE ORDER OF THE BANK MUSTCAT SAOG.

BMUSOMRXXXX is Swift code of THE BANK MUSTCAT SAOG. The BL should indicate the name of the bank instead of its Swift code, i.e., TO THE ORDER OF BMUSOMRXXXX. However, in my opinion, I do not raise any discrepancy even when the BL indicates consignee as TO THE ORDER OF BMUSOMRXXXX.

2) It may be the applicant or any other name shown in the L/C as the ultimate receiver of the goods.

Reply

Naima

April 3, 2017 at 12:31 pm

Good Day Mr.Old Man ,,

I hope that you are doing well,,please Mr.OLd Man i have one L/C which is asking for Shipment details to be sent to the Insurance Company ( name) , please can you tell me what are these details to put in that document.

Thank you

Reply

mroldman

April 3, 2017 at 2:57 pm

For shipment details to be provided, please refer to marine cargo insurance form. You may requested to provide vessel name, port of loading, port of discharge, bill of lading number, description of goods, ETA, ETD….

Reply

Naima

April 3, 2017 at 4:55 pm

Hi,,

Thank you but how to refer to marine cargo insurance form , can you please send me this form so that i can know all the details to put in the Shipment Details.

Reply

mroldman

April 4, 2017 at 9:53 am

You can google “marin insurance form” to have it!

Reply

Naima

April 4, 2017 at 12:08 pm

Hi,,

Thank you for the reply, but i did not find any thing in the Google when i searched for the Marine Cargo Insurance Form to find out the details of shipments so that i have asked you.

Reply

mroldman

April 4, 2017 at 1:39 pm

Hi,

Details of shipment may include the following information:

• Description of goods: Description of goods should be mentioned on the shipment advice in accordance with the description of goods stated on the commercial inoice.
• Invoice Value of Goods: Total amount as shown on the commercial invoice should be mentioned on the shipment advice as well. This is an important part of the document, because this information is required for marine insurance coverage.
• Letter of Credit Number: If payment term is L/C, then letter of credit number should be stated on the shipping advice along with L/C Date of issue.
• Name of the Carrier: Irrespective of mode of transport, carrier’s name should be mentioned on the certificate of shipment.
• Name of Vessel and Voyage Number: In case of sea shipment name of vessel and voyage number should be indicated. In case of air shipment flight number and in case of land shipment plate number should be added to the certificate of shipment.
• Consignee and Notify Party: Consignee and notify party should be mentioned on the shipment advice as indicated on the transport document. (Bill of Lading, Air Waybill, CMR Transport Document etc.)
• Bill of Lading No : Together with the container number, bill of lading no lets importer to track the consignment. (in case of air shipments air waybill no, in case of land shipments CMR no can be written)
• Container Number : Together with the bill of lading no, container number lets importer to track the consignment.
• Shipped on Board Date: Shipped on board date evidences shipment date, which is a vital information for the insurance companies. (sea shipments)
• Seal Number: Seal number of the container. (sea shipments)
• Gross Weight: Gross weight of the consignment.
• Net Weight: Net weight of the consignment.
• Packages: Total number of packages as seen on the transport document.
• Shipper: shipper company name as seen on the transport document.

If requested by the insurance company, you can provide them with the shipping advice with the above information.

Kind regards,
Mr. Old Man

Reply

Naima

April 4, 2017 at 2:09 pm

Hi,,

Thank you very much , please i have one more question if you do not mind:
-Name of the Carrier: Irrespective of mode of transport, carrier’s name should be mentioned on the certificate of shipment.
If the shipment is done by the Agent of the Carrier so it will be :

(AGENT NAME) As Agent for the Carrier (CARRIER NAME)

Reply

mroldman

April 4, 2017 at 5:10 pm

Ok provided the carrier’s name is mentioned

Reply

Naima

April 4, 2017 at 6:25 pm

Hi Mr.Old Man ,,

Thank you very much for your reply.
Please for the shipment details , if no requirements are mentioned in the L/C , means if L/C is only asking to send the shipment details to the insurance company without stipulating what are those details , so i can add or delete parts of your template .

Thanks in advance

Reply

mroldman

April 5, 2017 at 5:45 pm

Ok

Reply

Naima

April 5, 2017 at 6:17 pm

Thank you very much

Reply

Naima

August 8, 2017 at 1:30 pm

Good Day Mr. Old Man,,

I hope that you are doing well and that you recovred .
Please , i have one L/C where for the documents required ,
46A/ DOCUMENTS REQUIRED:
1. FULL SET OF CLEAN ON BOARD OCEAN BILL OF LADING MADE OUT TO THE ORDER OF SAMBA FINANCIAL GROUP SAUDI ARABIA.
Please my question here is that the B/L is made out to the order of the bank but the word bank is not mentioned only the name.

For your information the SAMBA FINANCIAL GROUP IS a financial services groups
So now is it OK for the consignee in the B/L that will be the name without the word of bank or the word :bank :must be in all to the order of any bank.

Reply

mroldman

August 9, 2017 at 9:45 pm

If LC requires Bill of Lading made out to the order of Samba Fiancial Fiancial Group Saudi Arabi (without the word “bank”), the Bill of Lading presented should be issued to the order of Samba Finacial Fiancial Group Saudi Arabi. It is ok even when without the word “bank”

Reply

Naima

August 10, 2017 at 11:29 am

Thanks

Reply

Naima

October 24, 2017 at 3:45 pm

Hi Mr.Old Man,,

Please i have sent you one request but you did not reply to me.
Please i want to know what is the impact of the punctuation in the L/C Documents.
What i know is only for Comma and Virgules but for the dots what about please.
I am receiving L/CS that are starting and finishing with dots for the description of goods , finishing with dots for other details like for the Consignee in the B/L ( bank is finishing by a dot )
ex Bill of Lading made out to the order of SAMBA FINANCIAL GROUP, SAUDI ARABIA.
Email of the notify is finishing with a dot , so my question is it necessary to mention every thing as in the L/C especially for the Bill of Lading ( article 14 j ) or it will not make any discrepancy if we are not adding the dots (….)

Thank you for replying to me .

Reply

mroldman

October 24, 2017 at 5:40 pm

Sorry I missed your question.
I don’t think the absence of a dot or dots makes the documents discrepant.

Reply

Naima

October 24, 2017 at 7:16 pm

Thanks

Reply

Vinuki

June 22, 2022 at 4:45 pm

Cear Mr. Old man

First or all i wanna thank you for sharing your valuable knowledge with us. I have gained lot of knowledge reading ur articles and ur answers to the questions.
My question is when doing bill dscounting (poat shipment financing ) under open account what if the BL consignee name differs with the commercial invoice .? What r the situations that It could get differ
Thanks in advance

Reply

Mr Old Man

June 23, 2022 at 2:44 am

I think it is acceptable if the consignee name in the biil of lading is different form that in the invoice. As it depends on the nature of the transaction that the consignee is not the buyer, especially when the buyer is just a middle man in the transaction.
The important things that you need to pay attention to are:
– Whether the seller is capable to repay you in the event the buyer fails to pay the invoice when due ( if the financing is on a with recourse basis)
– Whether the buyer is capable to pay the invoice when due ( if the financing is on a without recourse basis)
– Whether the account receivales guaranteed by a bank.

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