Dear all,
under the covering letter of Remitting bank said that shipment to the order of our bank.
Under URR522, we have right to refuse this collection.
But if it is D/P at sight conditions, there are none risks.
In your opinions, Should we require the drawee present "The requirement of endorsement B/" in order to avoiding all risks if happening for the collecting bank?
thanks
endorsement of B/L
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shahriar
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its quite common i think
dear dua,
i think you want to refuse it under URC, not URR. yes you can refuse it anytime. but i think the practice is becoming quite common now a days. in fact most of the economy which are short of foreign currency force their exporter to issue BL to the order of remitting bank which is further responsible to endorse it to the order of collecting bank. endorsement to the order of the actual importer is only possible only when the 100% payment has been made in advance which is obviously not covered by URC.
i agree with you, under D/P payment there is no such risk for the bank. in fact there is no risk for the collecting bank as long as the bank maintain the collection instruction
regd
shahriar
i think you want to refuse it under URC, not URR. yes you can refuse it anytime. but i think the practice is becoming quite common now a days. in fact most of the economy which are short of foreign currency force their exporter to issue BL to the order of remitting bank which is further responsible to endorse it to the order of collecting bank. endorsement to the order of the actual importer is only possible only when the 100% payment has been made in advance which is obviously not covered by URC.
i agree with you, under D/P payment there is no such risk for the bank. in fact there is no risk for the collecting bank as long as the bank maintain the collection instruction
regd
shahriar
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Re: endorsement of B/L
Hi Pals,
URC522 art. 10 regulates the present case, but what is your behaviour when an Air Way Bill is consigned to your bank, and collection schedule states that documents (and Goods) have to be delivered against acceptance of a draft or better against drawee's irrevocable written undertaking to pay at ......days? What is the bank responsability in this case?
p.s. In Italy, banks usually endorse Bill of lading adding a clause "The bank is endorsing this bill of lading as collecting agent only and has no responsability on the goods" or the like. Is this behaviour used in your Country too?
Comments really appreciated.
Ciao
URC522 art. 10 regulates the present case, but what is your behaviour when an Air Way Bill is consigned to your bank, and collection schedule states that documents (and Goods) have to be delivered against acceptance of a draft or better against drawee's irrevocable written undertaking to pay at ......days? What is the bank responsability in this case?
p.s. In Italy, banks usually endorse Bill of lading adding a clause "The bank is endorsing this bill of lading as collecting agent only and has no responsability on the goods" or the like. Is this behaviour used in your Country too?
Comments really appreciated.
Ciao
-
shahriar
- Posts: 923
- Joined: Fri May 16, 2008 1:03 am
- First Name: Shahriar
- Last Name: Masum
- Organization: Mutual Trust Bank
- Filter: Two Plus Two =: 4
- Location: Bangladesh
Re: endorsement of B/L
as a collecting bank there should have been no responsibility unless the draft is drawn on the collecting bank and accepted by the same. in my country AWB must be issued to the order... and goods can not be released without the endorsement from the bank. this is true even if the AWB is consigned to the importer. thus banks become responsible in anyway... 