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Dear Experts,

We have received a LC with confirmation request from the issuing bank located in Ecuador. Please Is the LC workable?
LC structure as follows.

:45A:(Goods desc)
xxxxxxx EX WORKS USA

:46A:(Documents reqd)
+ FULL SET OF CLEAN ON BOARD BILL OF LADING, MARKED FREIGHT
COLLECT CONSIGNED TO THE ORDER OF xxxxxxxx
+ COMMERCIAL INVOICE IN ORIGINAL AND THREE COPIES

:71B:(Charges)
CHARGES OUTSIDE ECUADOR ARE FOR
BENE ACCOUNT
Regards
Dinesh.

Hi Pal,

we are insisting with exporter to forget Incotem EXW, but without success.
The buyer is contracting transport and should be indicated in the b/l as shipper, but we have to ask for documents valid for the l/c. Ship agent will supply exporter/beneficiary with a proper bill of lading. Some banks inform beneficiary in the l/c that such document has been required under a buyer and seller agreement.
To remark that banks without bills of lading are not controlling the goods!!
Other comments appreciated
Ciao

I have submited this kind of LC eventhough im already advised the applicant that this kind of LC will bring trouble to the beneficiary, and my prediction is correct.

The applicant have a trouble sending back fullset bill of lading to beneficiary because one bill of lading is already used to retrieved the goods at port of discharge, and another one is used for custom clearance. Beneficiary only have 1/3 BL and the document itself is almost late for presentation, because the beneficiary must wait for the applicant to sent back 1/3 BL.

In order to make this LC workable, applicant must give the BL to beneficiary eventhough the shipper name mentioned in BL is applicant. In my experience, there is no way applicant will give fullset BL to beneficiary. they ussually retrieved the goods using 1/3 BL.

This LC structure is almost not workable

You have not indicated whether or not there is a 44A inclued in the credit and you have to present a multimodal B.L
Even if there is a requirement of port to port B/L , where is the problem with the "workability" of BL

EXW will impose least responsibility on the seller. Pre carriage from sellers ware house and Main carriage from port to port to be beared by applicant. As the main carriage willbe beared by appliacant the shipper name in the BL would be that of applicant and there will be no control of goods for the beneficiary. Even in order to make a presentation Beneficiary would require a BL which he would get from applicant once the goods are shipped and BL is generated. In this case presentation would be late. And please note EXW is not used for sea shipments and if it is a sea shipment lc would not be workable.