Dear members
Why is risky to have an exworks LC call for a cargo receipt ? Will it be better a full set of BL ?
If discrepancy arise on BL and Beneficiary is not party responsible for shipment how he still be sure to get pay under LC?
Your comments highly appreciated it
Exwork LC Calls For Cargo Receipt
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TradeLaporte
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gegeeee
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- First Name: Gega CITF, CDCS
- Last Name: Topadze
- Organization: Bank of Georgia
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Banks require B/L
Hy,
Actually Cargo receipt is not a document of title and nowadays Banks requre Full set of B/L. From beneficiary's side it is disadvantage because under LC if B/L is required it has to present this document and if it turns out to be discrepant may not receive payment from applicant.
.
Actually from bene's side my recommendation will be first to find out who, which company will ship the goods and require the sample of Bill of lading, i mean in manner how it will be issued to negotiate earlier with nomintaed bank. Experts in Nominated bank will consult reagrding B/L how must it be made not te become Discrepant.
Best,
Gega
Actually Cargo receipt is not a document of title and nowadays Banks requre Full set of B/L. From beneficiary's side it is disadvantage because under LC if B/L is required it has to present this document and if it turns out to be discrepant may not receive payment from applicant.
.
Actually from bene's side my recommendation will be first to find out who, which company will ship the goods and require the sample of Bill of lading, i mean in manner how it will be issued to negotiate earlier with nomintaed bank. Experts in Nominated bank will consult reagrding B/L how must it be made not te become Discrepant.
Best,
Gega
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Incoterm EXW etc
Hi Pals,
recently at Pisa Chamber of Commerce, a speaker stated that EXW is not suitable for international sales, than at the last Incoterms revision someone tried to cancell it.
A l/c for an EXW sales should not require a bill of lading, first of all because the transport contract will be signed by the buyer and the carrier than the goods will be taken up by buyer or its servants at the seller premisesn against a simple cargo receipt. If the issuing bank want to control the goods may require a declaration in such receipt that the goods in the relevant bill of lading will be consigned to its order.
However, notwithstanding notice to seller and buyer, bank continue to require bill of lading in their credit, sometime indicating that the transport document presentation has been agreed by the sales parties.
Many credits containg originary mistakes, banks will arrange to correct them or ask for issuing's bank approval.
Other comments appreciated
Ciao
PS I intentianally omit to speak about other risks concerning EXW: proof of export of the goods, VAT problems etc.
recently at Pisa Chamber of Commerce, a speaker stated that EXW is not suitable for international sales, than at the last Incoterms revision someone tried to cancell it.
A l/c for an EXW sales should not require a bill of lading, first of all because the transport contract will be signed by the buyer and the carrier than the goods will be taken up by buyer or its servants at the seller premisesn against a simple cargo receipt. If the issuing bank want to control the goods may require a declaration in such receipt that the goods in the relevant bill of lading will be consigned to its order.
However, notwithstanding notice to seller and buyer, bank continue to require bill of lading in their credit, sometime indicating that the transport document presentation has been agreed by the sales parties.
Many credits containg originary mistakes, banks will arrange to correct them or ask for issuing's bank approval.
Other comments appreciated
Ciao
PS I intentianally omit to speak about other risks concerning EXW: proof of export of the goods, VAT problems etc.