Dear members
How do you handle a transaction where the AWb is consigned to our bank and the terms are DA ? AWb should not be endorse
DA AWB Consigned To Collecting Bank
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TradeLaporte
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picant
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Bank release
Hi Pal,
a part that a document of transport must not be consigned to a bank without its permission, if it happened a bank will instruct the carrier to deliver the goods to the true destinatary by a bank release. AWB is not negotiable as indicated in the document itsself, so the consignee, a bank, will fill a form addressed to "TO WHOM IT MAY CONCERN" for delivery of cargo.The collection instructions will regulated such delivery, D/P or D/A. In case of D/A, the role of collecting bank is to make the draft accepted by the drawee, and its undertaking is over. The collecting bank may be instructed to hold the accepted draft for payment at maturity or return it to drawers' bank.
I know that, in some Countries, collecting bank is more involved and considered liable for the payment at maturity.
This is outside URC 522, as it is stating that documents may be delivered against acceptance, backed by a bank guarantee.
In Italy, Airlines and forwarders agreed in wording a document that gathers terms and conditions for delivery of goods under a transport document consigned to a bank, LIBERATORIA ABI (release ABI-ITALIAN BANKERS ASSOCIATION)
That's all folk!
Ciao
a part that a document of transport must not be consigned to a bank without its permission, if it happened a bank will instruct the carrier to deliver the goods to the true destinatary by a bank release. AWB is not negotiable as indicated in the document itsself, so the consignee, a bank, will fill a form addressed to "TO WHOM IT MAY CONCERN" for delivery of cargo.The collection instructions will regulated such delivery, D/P or D/A. In case of D/A, the role of collecting bank is to make the draft accepted by the drawee, and its undertaking is over. The collecting bank may be instructed to hold the accepted draft for payment at maturity or return it to drawers' bank.
I know that, in some Countries, collecting bank is more involved and considered liable for the payment at maturity.
This is outside URC 522, as it is stating that documents may be delivered against acceptance, backed by a bank guarantee.
In Italy, Airlines and forwarders agreed in wording a document that gathers terms and conditions for delivery of goods under a transport document consigned to a bank, LIBERATORIA ABI (release ABI-ITALIAN BANKERS ASSOCIATION)
That's all folk!
Ciao
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TradeLaporte
- Posts: 165
- Joined: Sat Nov 24, 2012 12:40 pm
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Bank release
Thanks Picant
Your comments are very valuable . Any advice for taking Cdcs certification. I have to be active for about 9 years before retire and I was working for 16 years in systems And since lost the job I am coming back to trade but my employer want us to take this certification . Any hints to get ready for it appreciated it
Your comments are very valuable . Any advice for taking Cdcs certification. I have to be active for about 9 years before retire and I was working for 16 years in systems And since lost the job I am coming back to trade but my employer want us to take this certification . Any hints to get ready for it appreciated it
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TradeLaporte
- Posts: 165
- Joined: Sat Nov 24, 2012 12:40 pm
- First Name: ART
- Last Name: TRATADOLIBRE
- Organization: Trade Co
- Filter: Two Plus 4 - 2 =: 4
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is the Collecting bank obligated to pay at maturity
IS a collecting bank endorsed the BL to drawee after acceptance of the bill of exchange . at maturity drawee did not pay is the collecting bank obligated to pay because it endorsed the BL?
Your comments highly appreciated it
Your comments highly appreciated it
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
No...
Hi Pal,
Art 10 e, URC 522 is quite clear. I know that some banks consider the endorsement as an involving action, so they grant a sort of credit line, but is not so. The Italian Banking Association provided a clause to insert in the endorsement to clear that the bank was only a mean to facilitate this service. However it is better to have a legal advice onhow it works in your Country.
Ciao
Art 10 e, URC 522 is quite clear. I know that some banks consider the endorsement as an involving action, so they grant a sort of credit line, but is not so. The Italian Banking Association provided a clause to insert in the endorsement to clear that the bank was only a mean to facilitate this service. However it is better to have a legal advice onhow it works in your Country.
Ciao