MBL Vs HBL

[Sharif]

Hi all

Will appreciate much if any remove my confusion on the below..

As we know several HBL could be issued to several seller against one MBL. So who will be the consignee of the MBL? Again How the goods be release from the customs as there are several buyer against one MBL? Is HBL enough to release goods?

Thanks and regards
Sharif

[Mehdi]

Several HBLs in case of LCL cargo can be consolidated into a FCL under a single MBL. But as per rules of the land, BL issued by carrier needs to be issued in favor of exporters' bank. As such there requires individual MBL for individual HBL. Shippinglines, so far as it is known, in BD follow this process as per GFET (Ch22, Para8). But international practice requires MBL under which different shipments are consoled to be issued favoring forwarders/MTOs.

As per rules, there requires MBL, being issued to the order of bank, to be endorsed by bank to release goods. On the other hand, if the MBL is issued favoring forwarders, endorsement of HBL is enough to release goods from shippinglines as well as customs. In this case, forwarder releases shipping docs and endorses MBL to the importer on receipt of endorsement of HBL by bank to him.

It appears that the existing regulation is fine for unimodal transportation. But what will be the solution in case a shipment from Dhaka ICD moved through a MBL to CMB and from CMB, the shipment forwarded to final destination through another MBL is not available. It is possible to issue MBL to the order of bank from Dhaka. But is it possible to issue in the same way from CMB?

It may be a food for further discussion. The members having practical knowledge should come forward to share their experiences.

REgards......Mehdi

[Sharif]

Dear Mehdi

Thanks for your prompt reply.

Its true that where several HBL is issued against one MBL, then the MBL is consigned to the forwarder. Though its seems against the land law there must be some rules under which this HBL are issued. Otherwise BB must have been taken care of the MBL issuers. What are those rules??

Again if HBL are enough to release the goods then why the MBL is issued??? Here MBL is of no use. Need some practitioner to ans this. How the forwarder would endourse the MBL as there are several buyers and several HBL.

Regards
Sharif

[iLC]

hi sharif!

i do not understand how it is possible to release the goods of MBL against a HBL.

i take u have already understood FF, LCL and FCL and consolidation.

what actually happen at a FF consolidation is Upon arrival of the ocean vessel, the freight forwarder or its local agent then claims the whole container from the CY (Container Yard) area in the container depot in the port of discharge because the container is shipped in FCL (Full Container Load) mode. After receipt, the container is then striped (opened) by the freight forwarder or its agent in its warehouse. The cargoes are separated into separate heaps, earmarked to identify the different consignees. The consignees then claim the goods from the freight forwarder or its agent with the house bills of lading.

If consolidation is otherwise done by the ocean carrier, when the shipper deals directly with the ocean carrier, the container will be executed in LCL (Less Than Container Load) mode and loaded from and discharged in the CFS (Container Freight Station) area. A LCL/CFS bill of lading will be issued by the ocean carrier to the shipper. The container will be striped in the CFS area in the port of discharge by the ocean carrier or its local agent. The goods are separated into heaps earmarked to identity the different consignees

what you are talking about possibly means that its actaully LCL/CY shipment where the consignee of a part of the cargo can claim the whole container. even then it seems impossible as custom clearing will be difficult without the knowledge of the good.

iLC

[Sharif]

Dear iLC

Thanks fort your nice and clear reply. It really hepled me to understand the procedure.

I also agree with you. My confusion arises related HBL and MBL because one of my client (exporter) claims that the goods has been released from the customs by the connection of Freight forwarder and buyer even the HBL has yet not been released from the bank. We sent the document at 30 days DA basis and already have ask the buyer's bank the status of the document and got reply that they are yet to be accepted by the buyer. So how it is possible the buyer release the goods?

From the procedure it is clear that if u have good connection with the agent of forwarder you can easily release the goods even not having the HBL....Is it ???

Thanks
Sharif

[Mehdi]

It may happen if the MBL is issued showing local forwarder as exporter and forwarder at destination as consignee/importer. In this case, the goods belong to forwarder in the eyes of shippinglines who can release the goods favoring importer if the FF allows such.

Normally, FF at Bangladesh makes shipping instructions to its overseas counterpart to release documents favoring importer on receipt of endorsement of concerned bank as per HBL. But such is not found in the subjected case; rather overseas FF releases docs violating instructions.

The situation may lead proceeds realization in danger. As such, the local FF needs to bring under legal action.

Regards.........Mehdi