Delivery of goods to the importer against original bill of lading
Importers have to present at least one original copy of the bill of lading to the carrier's agent at the port of discharge in order to receive goods from the carrier if the bill of lading issued in negotiable form.
Question comes from Heidi, Hayward, California, USA: Can you please take a look at the following L/C language for the required documents of the B/Ls and confirm this will be manageable with the steamship lines?:
Full Set of clean on board bills of lading made out to the order of opening bank and marked "freight prepaid" and notify applicant. Bills of Lading to show the name and address and telephone/fax numbers of shipping company/agent representing them at port of destination. B/L to clearly indicate that the goods can only be delivered at destination port only on submission of all 3 sets of original bills of lading.
My answer is as belows: Thanks for your question. Please kindly keep in mind that I cannot confirm whether the conditions of the letter of credit is manageable or not. I can only share my knowledge with you, but I cannot not take any responsibility for your specific business. Please take your steps with your own risk. This is also true for all of my websites.
Once I have read the above text, I realized that it is a standard format text used by many banks when stating the conditions of the bill of lading under field 46-A- Documents Required in their letter of credit transactions. The only phrase that you should be double checking is the following one:
Bill of lading to clearly indicate that the goods can only be delivered at destination port only on submission of all 3 sets of original bills of lading.
I think the issuing bank would like to say:
Bill of lading to clearly indicate that the goods can only be delivered at destination port only on submission of all 3 original bills of lading.
Even the corrected one may contrary to the bill of lading terms and conditions, because once you submit one original bill of lading to the carrier remaining original bills of lading copies will be void. Correction or deletion of this condition will be advised as letter of credit condition clearly contradicts with the terms of the most bills of lading circulation in international trade. (see example wording from a well-known container carrier's bill of lading above picture)