{"id":6005,"date":"2019-06-02T02:44:02","date_gmt":"2019-06-02T06:44:02","guid":{"rendered":"https:\/\/www.letterofcredit.biz\/?p=6005"},"modified":"2019-06-05T06:10:25","modified_gmt":"2019-06-05T10:10:25","slug":"letter-of-credit-condition-bill-of-lading-with-multiple-notify-party","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2019\/06\/02\/letter-of-credit-condition-bill-of-lading-with-multiple-notify-party\/","title":{"rendered":"Letter of Credit Condition: Bill of Lading with Multiple Notify Party"},"content":{"rendered":"<p><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/01\/15\/what-is-letter-of-credit\/\">Letter of credit<\/a>, in a broad perspective, is one of the <a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/02\/20\/payment-methods-in-international-trade\/\">payment methods in international trade.<\/a><\/p>\n<p><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/04\/02\/bill-of-lading\/\">Bill of lading<\/a> is a transport document covering the carriage of goods by sea.<\/p>\n<p><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/05\/31\/notify-party-of-a-bill-of-lading\/\">Notify party<\/a>\u00a0means a person that should be notified by the\u00a0<a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/04\/03\/parties-on-a-bill-of-lading-shipper-consignee-notify-party-and-carrier\/\">carrier<\/a>\u00a0along with the\u00a0<a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/05\/15\/consignee-of-a-bill-of-lading\/\">consignee<\/a>\u00a0when the shipment arrives at\u00a0<a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/09\/21\/field-44f-port-of-discharge-airport-of-destination\/\">port of discharge<\/a>.<\/p>\n<p>Letter of credit is a conditional payment method.<\/p>\n<p>The <a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/08\/18\/field-59-beneficiary\/\">beneficiary<\/a> of a letter of credit will receive the payment as long as he presents documents in comply with the terms and conditions of the letter of credit.<\/p>\n<p>Some letters of credit especially the ones issued in Bangladesh request bills of lading that contain not one but multiple notify parties.<\/p>\n<p>On my previous post I have explained that <a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/05\/31\/what-are-the-differences-between-consignee-and-notify-party-fields-of-bills-of-lading\/\">multiple notify parties on a single bill of lading is possible<\/a>.<\/p>\n<p>Let me explain the situation with an example.<\/p>\n<p><span style=\"color: #ff6600;\"><strong>Multiple Notify Party Example:<\/strong><\/span><\/p>\n<p>A textile fabric paint exporter in <a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/01\/24\/italy-letter-of-credit-transactions\/\">Italy<\/a> signs a trade deal with an importer in Bangladesh.<\/p>\n<p>According to the national law of Bangladesh all imports must be paid by letters of credit. As a result an issuing bank in Bangladesh issues a letter of credit against <a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/04\/26\/proforma-invoice\/\">the proforma invoice<\/a> of the Italian exporter.<\/p>\n<p>The letter of credit contains a condition as below:<\/p>\n<blockquote class=\"td_quote_box td_box_center\">\n<p style=\"text-align: left;\">Full set original clean on board ocean bills of lading, plus three non-negotiable copies issued by the carrier or its agent drawn or endorsed to the order of Bangladesh Islamic Bank showing &#8221;Freight Prepaid&#8221; marked <span style=\"text-decoration: underline;\"><strong>notify applicant and the issuing bank.<\/strong><\/span><\/p>\n<\/blockquote>\n<p>The bill of lading must show two notify parties:<\/p>\n<ul>\n<li>Notify 1: Applicant (importer company)<\/li>\n<li>Notify 2: Issuing bank<\/li>\n<\/ul>\n<h4><strong>Related Articles:<\/strong><\/h4>\n<ul>\n<li><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/05\/31\/notify-party-of-a-bill-of-lading\/\">Notify Party of a Bill of Lading<\/a><\/li>\n<li><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/05\/15\/consignee-of-a-bill-of-lading\/\">Consignee of a Bill of Lading<\/a><\/li>\n<li><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/05\/10\/how-to-complete-a-bill-of-lading-under-a-letter-of-credit-payment\/\">How to Complete a Bill of Lading under a Letter of Credit Payment?<\/a><\/li>\n<li><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/04\/03\/parties-on-a-bill-of-lading-shipper-consignee-notify-party-and-carrier\/\">Parties on a Bill of Lading: Shipper, Consignee, Notify Party and Carrier<\/a><\/li>\n<li><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2019\/02\/25\/to-order-and-blank-endorsed-bill-of-lading\/\">To Order and Blank Endorsed Bill of Lading<\/a><\/li>\n<li><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/12\/02\/what-are-the-differences-between-a-bill-of-lading-and-a-charter-party-bill-of-lading\/\">What are the Differences Between a Bill of Lading and a Charter Party Bill of Lading?<\/a><\/li>\n<li><a href=\"https:\/\/www.letterofcredit.biz\/index.php\/2018\/11\/25\/freight-forwarders-bill-of-lading-not-acceptable\/\">Freight Forwarder\u2019s Bill of Lading Not Acceptable<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Letter of credit, in a broad perspective, is one of the payment methods in international trade. Bill of lading is a transport document covering the carriage of goods by sea. Notify party\u00a0means a person that should be notified by the\u00a0carrier\u00a0along<\/p>\n","protected":false},"author":1,"featured_media":6012,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[152,150],"tags":[107,162,503],"class_list":["post-6005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bill-of-lading","category-letter-of-credit-documents","tag-bill-of-lading","tag-letter-of-credit-documents","tag-notify-party"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/6005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=6005"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/6005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/6012"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=6005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=6005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=6005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}