WHERE THE BILL OF LADING IS SIGNED BY A BRANCH OF THE CARRIER

2 Comments

1. 

   phongcachsophie

   May 28, 2015 at 1:59 pm

   Dear Mr Old man,
   Pls help me clarify the 3 below cases:
   1/ The beneficiary wants the l/c to be added the clause “negotiation of the letter of credit with other copy documents (cert of origin, phytosanitary cert, and fumigation cert) except draft, commercial invoice, b/l, p/l acceptable. In case of credit is negotiated using copy documents, the original documents (cert origin, phytosanitary certificate, fumigation certificate) and copy of draft, invoice, b/l, p/l must be couried to the applicant”.
   Is this clause risky to the applicant and the issuing bank ? If yes, in what extends?
   2/ L/C states: B/L must show name, address and tel/fax no. of shipping agent in Vietnam.
   The original B/L presented show shipping agent in Singapore i/o in Vietnam. Is this discrepancy?
   3/ Letter of credit covers shipment of goods A,B and C. Partial shipment allowed. Presentation of invoice for goods A and B while bill of lading shows a description of goods as A,B and C.
   Is this discrepancy?
   .
   I am very confused about these cases. Look forward to hearing from you soon.
   Best regards,

   Reply

• 

  mroldman

  May 28, 2015 at 10:30 pm

  Hi,

  1) I believe that the issuing bank would agree to issue an LC that requires presentation of originals of Draft, Commercial Invoice, Bill of Lading and Packing List only.

  I see that the requirement is strange but the issuing bank has no good reason to refuse to issue an LC with such a strange requirement.

  For the applicant, if such a requirement is not from him, he would ask himself why the beneficiary insists on such a requirement. If documents like Certificate of Origin, Phytosanitary Certificate, Fumigation Certificate are part of documents required for customs clearance, the applicant should require them to be presented under the LC.

  What if such documents are not required to be presented under the LC and the beneficiary fails to send them directly to the applicant? The applicant cannot clear the customs.

  What I explain is based my assumption. In practice, such a requirement may be accepted if the issuing bank or the applicant understand why and for what purpose that the beneficiary insists on such a requirement.

  2) Those who follows strict-compliance doctrine would raise the discrepancy based on sub-article 14 (d) data in the BL conflicts with that in the LC.

  3) The bill of lading may contain the description of goods stated in the LC. However, it must indicate what has actually shipped. It is a discrepancy if the bill of lading does not indicate what actually been shipped, (i.e., Goods A and Goods B).

  Kind regards,
  Mr. Old Man

  Reply