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Documents Misplaced by Bank

Posted: Wed Feb 20, 2019 3:41 pm
by amit
HI there!
A document sent for collection under the incoterm DP at sight is refused by the clients bank and returned to the collecting back, however a duplicate set of documents are received by the bank instead of the original.

The party the goods had been shipped to, has gotten hold of the documents and released the goods.

What can be done in this case?

Re: Documents Misplaced by Bank

Posted: Wed Mar 20, 2019 11:24 am
by picant
Hi Pal,

contact your banks, forwarders and carriers for advices and explications.
A bank may refuse to handle documents on collection, someone could obtain by a court seizure of
documents, buyer could get the goods against letter of indemnity, just to mention a few of possiblities.
Other comments appreciated

Re: Documents Misplaced by Bank

Posted: Sun Apr 14, 2019 2:23 am
by LLawrence
That's a tricky one! First thing that needs to be done is your bank needs to contact them via SWIFT.
Secondly, the other bank may have facility such as DIT (Dcument in Trust) where they will send the docs to importer (their customer) before the payment has been made. In other words, they may realised the docs to their customer under the DIT and now no longer are holding the originals. Hence why they sent you with copies.
Solution is: Note & Protest, then court. But the easiest way is if you speak to importer. Note that the other banks duty is to follow Bank Schedule as well. I am not sure what was stated on the bank schedule?