I don't know if a regulation exists in this connection. However even if it does in case of problem things could be very long and the end decision surprising. Therefore art. 21 which is one of my ennemy, sounds to be a protection for bankers but is in the practice not sustainable since it's application vary from case to case.
Roland
Freight invoice and freight payment receipt
-
RolandLeupi
- Posts: 115
- Joined: Fri Apr 05, 2019 5:26 pm
Freight invoice and freight payment receipt
Gerhard,you ask for the possible reason of a refusal.I understand that just beloew the b/l,under point f) l/c require for presentation of freight invoice and f.receipt.
You should understand that the 2 docs are related to b/l,attached to b/l and therefore issued either by carrier or by carrier's agent.
Who's paying the freight? Bnf,right?
On what base? Based on freight invoice received from the carrier's agent.Also,the carrier's agent is the one issuing a freight receipt attesting they received the funds.
This is to prove that the freight included in the cfr price of goods have been paid by the bnf.
The l/c's bnf is buying carrier's agent services,he pays for the services and get the invoice from the agent.Logical,right?
So,even if l/c doesn't specify the issuer of the 2 docs.is clear the issuer cannot be the bnf.
bogdan.
Bogdan.
You should understand that the 2 docs are related to b/l,attached to b/l and therefore issued either by carrier or by carrier's agent.
Who's paying the freight? Bnf,right?
On what base? Based on freight invoice received from the carrier's agent.Also,the carrier's agent is the one issuing a freight receipt attesting they received the funds.
This is to prove that the freight included in the cfr price of goods have been paid by the bnf.
The l/c's bnf is buying carrier's agent services,he pays for the services and get the invoice from the agent.Logical,right?
So,even if l/c doesn't specify the issuer of the 2 docs.is clear the issuer cannot be the bnf.
bogdan.
Bogdan.
Freight invoice and freight payment receipt
Jeremy,
I agree with you that as far as the freight receipt is concerned the term is implied, but I am not too convinced on the freight invoice. I have seen many CFR credits requiring the bene to draw separate invoices on the applicant for FOB value of the goods and freight and the drawing under the freight invoice to be supported by a freight receipt issued by the transporters. This seems to me the only logical reason why the credit is asking for two separate documents. If the intention is to secure a confirmation of actual freight than the presentation of either documents should suffice. I would be interested to know if you would still refuse the documents if the beneficiary had drawn the F/Invoice on the applicant and a supporting freight receipt issued by the transporters was presented to support the drawing.
Regards
Khalid
I agree with you that as far as the freight receipt is concerned the term is implied, but I am not too convinced on the freight invoice. I have seen many CFR credits requiring the bene to draw separate invoices on the applicant for FOB value of the goods and freight and the drawing under the freight invoice to be supported by a freight receipt issued by the transporters. This seems to me the only logical reason why the credit is asking for two separate documents. If the intention is to secure a confirmation of actual freight than the presentation of either documents should suffice. I would be interested to know if you would still refuse the documents if the beneficiary had drawn the F/Invoice on the applicant and a supporting freight receipt issued by the transporters was presented to support the drawing.
Regards
Khalid
Freight invoice and freight payment receipt
Khalid,concerning what you wrote to Jeremy allow me to say that as long as l/c states that freight invoice and receipt are attached to b/l you may think that the 2 docs are to be issued by same entity that issued/signed the b/l,i.e. carrier or agent of carier.
If you present a freight invoice issued by bnf f/o applicant you might have the surprise of a rejection from issuing bank.
the issue here is that isn't enough to think only based on what art.21-ucp500 states but also have to find out the logical answer.
why should issuing bank specify "attached" if the 2 docs aren't to be issued by carrier or his agent? issuing bank make a clear connection between b/l,freight inv.and freight receipt.
what put them together,attached to each other ? the issuer.
well,this is my opinion.
bogdan.
If you present a freight invoice issued by bnf f/o applicant you might have the surprise of a rejection from issuing bank.
the issue here is that isn't enough to think only based on what art.21-ucp500 states but also have to find out the logical answer.
why should issuing bank specify "attached" if the 2 docs aren't to be issued by carrier or his agent? issuing bank make a clear connection between b/l,freight inv.and freight receipt.
what put them together,attached to each other ? the issuer.
well,this is my opinion.
bogdan.
Freight invoice and freight payment receipt
Khalid,
I am not expressing a definite opinion one way or the other. All I can say is that I could understand how the apparent requirement that the ‘Freight payment receipt and invoice’ are actually attached to the bill of lading could be taken as indicating that both documents must be issued by the carrier. In other words -for whatever reason- the issuing bank, on behalf of the applicant, requires both the invoice from the carrier to the consignor for the freight and the carrier’s confirmation the invoice has been paid. I certainly have some sympathy Bogdan’s reasoning.
Incidentally, that bill of lading looked to me as if it was signed by the carrier.
Lastly, I’m off on my hols to la belle France for 2 weeks tomorrow so you won’t be hearing from me for the duration.
Jeremy
I am not expressing a definite opinion one way or the other. All I can say is that I could understand how the apparent requirement that the ‘Freight payment receipt and invoice’ are actually attached to the bill of lading could be taken as indicating that both documents must be issued by the carrier. In other words -for whatever reason- the issuing bank, on behalf of the applicant, requires both the invoice from the carrier to the consignor for the freight and the carrier’s confirmation the invoice has been paid. I certainly have some sympathy Bogdan’s reasoning.
Incidentally, that bill of lading looked to me as if it was signed by the carrier.
Lastly, I’m off on my hols to la belle France for 2 weeks tomorrow so you won’t be hearing from me for the duration.
Jeremy
Freight invoice and freight payment receipt
Jeremy,
From what I understand from Gerhard’s posting the credit required
“Freight payment receipt and invoice in original must be attached”. I do not see any requirement that they be attached to the B/L or form a part of the B/L. As far as I am concerned even if they are attached together it would constitute a compliant presentation.
Freight Payment receipt and Invoice are separate documentary requirements for which no issuer is specified. Hence the issuance of a Freight Payment receipt issued by the shipping company in support of the Freight Invoice drawn by the beneficiary should suffice compliance in terms of Art 21.
Regards Khalid
From what I understand from Gerhard’s posting the credit required
“Freight payment receipt and invoice in original must be attached”. I do not see any requirement that they be attached to the B/L or form a part of the B/L. As far as I am concerned even if they are attached together it would constitute a compliant presentation.
Freight Payment receipt and Invoice are separate documentary requirements for which no issuer is specified. Hence the issuance of a Freight Payment receipt issued by the shipping company in support of the Freight Invoice drawn by the beneficiary should suffice compliance in terms of Art 21.
Regards Khalid