hi sirs,
seek ur guidance/views i following case.
.
one of our client approached us and presented a bill of lading drawn on us(bank) for endorsemnt in favour of notify party shown on it.
we have no prior understanding/arrangement with consignor to handle the shipping doc.
what risks are there for the bank
1) if a susequent claim is recieved from consignor's bank.??
2) how risks involved can be mitigated( e.g client becoming insolvent)..??
thanks and regards.
bank's risk
-
snk
- Posts: 23
- Joined: Tue May 31, 2011 3:06 pm
- First Name: shah zad
- Last Name: naeem.khokhar
- Organization: NBP
- Filter: Two Plus Two =: 4
- Location: ISLAMABAD
-
picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
No URC 522 issue
Hi Pal,
I am involved in the same problem, bank release of goods with an Air Waybill, consigned to a bank.The last opinion in my hands regarding this issue is the Official Opinion TA711. Naturally the URC 522 cannot be applied to the bank behaviour before getting the document for collection. This issue is regulated by the applicable law in the import Country. Moreover is the bank sure of the risk incurred, bill of lading or air waybill dont show the goods value, so you allow the delivery of goods and tomorrow you could receive a collection for a bigger amount. Your customer will not pay demurrage et warehousing costs but is exposing the bank to a unspecified risk.
For Air waybill I advised the shipper to indicate in the handling information box that goods can be delivered by a bank release worthing the invoice attached to the transport document, so nobady could change the cards on the table.
Other comments appreciated
Ciao
I am involved in the same problem, bank release of goods with an Air Waybill, consigned to a bank.The last opinion in my hands regarding this issue is the Official Opinion TA711. Naturally the URC 522 cannot be applied to the bank behaviour before getting the document for collection. This issue is regulated by the applicable law in the import Country. Moreover is the bank sure of the risk incurred, bill of lading or air waybill dont show the goods value, so you allow the delivery of goods and tomorrow you could receive a collection for a bigger amount. Your customer will not pay demurrage et warehousing costs but is exposing the bank to a unspecified risk.
For Air waybill I advised the shipper to indicate in the handling information box that goods can be delivered by a bank release worthing the invoice attached to the transport document, so nobady could change the cards on the table.
Other comments appreciated
Ciao
-
mustafadogan
- Posts: 11
- Joined: Wed Dec 28, 2011 11:49 pm
- First Name: mustafa
- Last Name: dogan
- Organization: Albarakaturk a.s.
- Filter: Two Plus Two =: 4
- Location: Turkey
same problem
We have the same problem. Our customer insists on issuing B/L to the order of our bank, and in his instructions, tries to make us a party in CAD transaction. We refuses again and again. Hovewer, We couldn't stop him doing that.
-
rajeshh
- Posts: 3
- Joined: Tue Jan 03, 2012 11:52 pm
- First Name: Rajesh
- Last Name: Kutripali
- Organization: state bank of india
- Filter: Two Plus Two =: 4
- Location: india
a better way
I think this is a good faith problem. If drawer has some doubts, requesting a L/C would be a better way to trade.
.
.
-
mentis
- Posts: 107
- Joined: Fri Jan 06, 2012 1:22 am
- First Name: Doka
- Last Name: Rosso
- Organization: İstanbul BB.
- Filter: Two Plus Two =: 4
- Location: Turkey
risk
We have a different situation as remitting bank. We have sent 2 set of original documents in one DHL corrier, but drawee claims that bills of lading of one set are missing. I wrote a message and requested from collecting bank to confirm number of docs, especially B/L. Fortunately, it is a CAD transaction and risk is minumum for a bank.