AWB Consigned To Collecting Bank

[marcostt]

Has someone had a case like this?
Imports Collection Covering Diamonds
Diamonds financed by the Remitting banks
AWB consigned to the Collecting bank
Key Point 1: Diamonds released to importers (by the shipping companies) without the authorization of the Collecting bank.
Key Point 2: There is no agreement between the Collecting bank and the importers/remitting banks, in regards to the goods consigned to the collecting banks.
Question 1: Should the Collecting Bank be concerned about their liability over the goods released to the importers without their authorization? Taking into consideration that the Collecting bank did not provide their prior agreement, as suggested by URC 522.
Question 2: Should the Remitting banks provide their specific authorization "deliver goods"? They are using the standard instructions: "deliver documents against acceptance". Given the apparent conflicting articles 4ai and 10ei of the URC 522. 4ai indicates that collecting banks "are only permitted to act upon the instructions given .." and 10e1 indicates that when the collecting banks release the goods then "the remitting bank shall be deemed to have authorized the collecting bank to do so". Notice that there is a difference between a remitting bank actually authorizing the release of the goods and a remitting bank being deemed to have authorized such release.
Question 3: If the event that the remitting banks cannot recover their money, can they sue the collecting banks on the grounds that they (the remitting banks) never provided their authorization to release the diamonds to the importers? Although the instruction "deliver documents" might be interpreted as "deliver goods" it is still an interpretation and and a lack of specificity. Can this lack of specificity and grey ground be an opening to a possible lawsuit? In special since there is no agreement that protects the collecting bank who is the consignee of the diamonds and the remitting banks financed the diamonds?
Please provide your comments. If the collecting banks should be concerned, what protecting measures should they take?
Thanks

[picant]

Hi Pal,
just to start
n. 1 shipping company is liable, we have to check the way they release the goods.
n. 2 OK, but this happens every day
Collecting bank acted correctly , it is the shipping company that made a mistake in delivering the goods to a different consignee. A collecting bank is authorized , after having delivered the documents against payment or acceptance to issue a bank release to permit the drawee to take up the goods under a general authorization contained in URC 522, without liability.
Other comments appreciated
Ciao

[mskhan42]

Dear friend,
100% Agreed with picant + also investigate with carrier/agent may be possession taken by importer by misrepresentation (fraud) at carrier/agent.
Regards,
M. Saqib khan