Dear All Friend,
Why Bill of lading issues more than one original ( Negotiable) ?. If issue more than one then Bank only endorse B/L on only ONE ?.
What is purpose of Other 2 original B/L?
Thanking you
Pradip Bhavsar
Why Bill Of Lading Is Issued In 3 Originals
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mando@vsnl.net
- Posts: 34
- Joined: Sun Feb 15, 2009 11:08 am
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ghubshawi
- Posts: 30
- Joined: Tue Jun 24, 2008 12:51 pm
Why more than one
Dear Friend,
Normally B/Ls are issued in 2 or 3 negotiable originals each of them is enough to claim delivery of goods and, some times, are marked as first original, second original ... etc. IMHO, the purpose behind this is to facilitate the delivery of goods in case one of the originals is lost, mutilated ..etc.
As for your second query, of course, the bank is keen to limit the fraudulent claims of goods.
To add, upon surrendering the endorsed original, the other originals will become null and void.
I hope this helps you out.
Ghubshawi
Normally B/Ls are issued in 2 or 3 negotiable originals each of them is enough to claim delivery of goods and, some times, are marked as first original, second original ... etc. IMHO, the purpose behind this is to facilitate the delivery of goods in case one of the originals is lost, mutilated ..etc.
As for your second query, of course, the bank is keen to limit the fraudulent claims of goods.
To add, upon surrendering the endorsed original, the other originals will become null and void.
I hope this helps you out.
Ghubshawi
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iLC
- Posts: 504
- Joined: Thu Jun 26, 2008 10:33 pm
How many original is issued
i agree with the answer given. just to add that there is not guarantee that bill of lading will be issued in more than one copy. unless requested by the credit, its not uncommon to have a bill of lading issued in single copy; especially for charter party bill of lading.
to understand the purpose of other 2 originals, you need to understand the reason behind issuance of three bill of lading. earlier when mail system was erratic, it was felt safe to send the three bill of lading using different mail service or date. however now a days with the development of mail service, there is hardly any reason to take such precaution. in my opinion, if all the bill of lading are send in one mail, there is no reason to issue bill of lading in three folds.
i have seen cases where the second original bill of lading is endorsed by the issuing bank or consignee, the carrier often inquires for the reason behind such action and often ask for special letter from the endorser.
to understand the purpose of other 2 originals, you need to understand the reason behind issuance of three bill of lading. earlier when mail system was erratic, it was felt safe to send the three bill of lading using different mail service or date. however now a days with the development of mail service, there is hardly any reason to take such precaution. in my opinion, if all the bill of lading are send in one mail, there is no reason to issue bill of lading in three folds.
i have seen cases where the second original bill of lading is endorsed by the issuing bank or consignee, the carrier often inquires for the reason behind such action and often ask for special letter from the endorser.