Notify party is the institution, to whom the shipping company informs the arrival of the cargo.
A transport document covering at least two different modes of transport is regarded as a multimodal bill of lading according to the letter of credit rules.
The notify party field on the multimodal bill of lading can be completed mainly in 2 different ways.
- In most cases, the notify party is the applicant or the importer on the multimodal bill of lading.
- In some rare occasions, the applicant and the issuing bank are both required to be stated as notify parties on the multimodal bills of lading.
The notify party field can be seen on the following transport documents : Bill of lading, multimodal bill of lading, charter party bill of lading, sea waybill, air transport document (air waybill), road transport document (CMR) and rail transport document etc.
If the issuing bank finds out that the notify party field of a multimodal bill of lading has not been completed as per letter of credit terms, then the issuing bank will issue a discrepancy, which is known as notify party different than the letter of credit.
Letter of Credit Discrepancy Example: Notify Party Different Than Letter of Credit on a Multimodal Bill of Lading
A letter of credit has been issued in SWIFT format, subject to UCP Latest Version, with the following details:
Letter of Credit Conditions
Field 50: Applicant: Al Ghazali Sons Trading Co P.O. Box No. 3268, Alkhobar 31771 Saudi Arabia. Fax: (03) 8962022 Tel: (03) 8773344
Field 46A: Documents Required: Full set of ‘clean on board’ multimodal bill of lading issued by Applicant’s Forwarder M/S. Fast Transocean Intl. Ltd., issued to the order of Banque Saudi Fransi, Alkhobar, marked ‘freight collect’ and notify applicant, evidencing shipment from any port in Spain to Dammam Port, Saudi Arabia.
The multimodal bill of lading must show the name, address and telephone number of shipping agent at the port of discharge.
The beneficiary presented a multimodal bill of lading with the following data:
Multimodal Bill of Lading
Consignee: To the order of Banque Saudi Fransi, Alkhobar
Notify: Al-Bingazhi Trading Co. Ltd. P.O. Box No. 3118, Riyad 31551 Saudi Arabia. Fax: (03) 8964042 Tel: (03) 8775544
Discrepancy: Multimodal bill of lading shows a notify company which is different than what is required in the letter of credit.
Reason for Discrepancy: If a letter of credit states the details of notify parties such as company name and address, a multimodal transport document may also indicate the details of notify party.
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