Dear all,
L/C requires the following document:
WAREHOUSE RECEIPT AND DECLARATION FROM BENEFICIARY
THAT 14 DAYS HAVE PASSED SINCE THE GOODS REACHED
THE PORT OF LOADING
We have presented a document called "Warehouse Receipt" with following wording: "We herewith confirm storage of the goods since 2012-10-05." Document also shows name and address of Warehouse.
Stamped and signed by beneficiary.
We now received the following discrepancy from confirming bank: "Warehouse receipt: issued by beneficiary instead of
warehouse Wallmann & Co Hamburg.
We have refused the discrepancy with the argument, that issuer is not defined in the L/C and therefore article 14f applies, but confirming will not follow our argument.
What is your opinion. Thanks in advance.
Warehouse Receipt
Warehouse Receipt
Unless there is some relevant term of the credit you have omitted, my opinion is that the confirming bank clearly does not understand how to examine documents for facial compliance, as non-issue by a party not named in the credit is totally irrelevant to the compliance of a document.
On the other hand, I think it is arguable that –when read in context- the credit requires two documents, (1) a warehouse receipt and (2) a declaration from beneficiary and not a combined document. Whether the ‘content’ of a warehouse receipt issued by the beneficiary (the issuer logically being part of the content) appears to fulfil the function of the required document –per 14(f)- is to me questionable. (Incidentally, I think it would be dangerous to place much reliance of ISBP681, para 2.) Had the confirming bank simply refused on these grounds –e.g. absence of warehouse receipt or warehouse receipt not apparently issued by a warehouse- I would have said they may well be correct. But they did not.
On the other hand, I think it is arguable that –when read in context- the credit requires two documents, (1) a warehouse receipt and (2) a declaration from beneficiary and not a combined document. Whether the ‘content’ of a warehouse receipt issued by the beneficiary (the issuer logically being part of the content) appears to fulfil the function of the required document –per 14(f)- is to me questionable. (Incidentally, I think it would be dangerous to place much reliance of ISBP681, para 2.) Had the confirming bank simply refused on these grounds –e.g. absence of warehouse receipt or warehouse receipt not apparently issued by a warehouse- I would have said they may well be correct. But they did not.
Warehouse Receipt
Dear JSmith,
thanks for your explanation.
Some more informations:
-Beneficiary presented a Warehouse Receipt and the required declaration. Both issued by beneficiary.
-Warehouse receipt shows: "Warehouse area:Wallmann & Co., Hamburg."
thanks for your explanation.
Some more informations:
-Beneficiary presented a Warehouse Receipt and the required declaration. Both issued by beneficiary.
-Warehouse receipt shows: "Warehouse area:Wallmann & Co., Hamburg."
Warehouse Receipt
That explains the seemingly bizarre discrepancy quoted by the confirming bank.
Overall, I agree with the confirming bank’s seeming position that a warehouse receipt must appear to be issued by a warehouse. With respect to 14(f) I incline to the view that the words ‘warehouse receipt’ of themselves do stipulate by whom the document must be issued.
[edited 10/25/2012 4:27:54 PM]
Overall, I agree with the confirming bank’s seeming position that a warehouse receipt must appear to be issued by a warehouse. With respect to 14(f) I incline to the view that the words ‘warehouse receipt’ of themselves do stipulate by whom the document must be issued.
[edited 10/25/2012 4:27:54 PM]