Hello everybody,
Can i have your expert comments on the situation given, below:
- L/C issued by X bank calling for "Full set of Clean On Board Ocean B/Ls made out to order and blank endorsed....."
- Documents presented to (and negotiated by) Y Bank in Hong Kong with B/Ls consigned "to order of shipper" and blank endorsed by shipper.
- Documents refused by X bank due to the following discrepancy: "irregular consignee".
Can i get your opinion on the above as i contend the B/Ls are in order for the following reason: "made out to order" means made out to order of shipper and nobody else.
Is there any ICC opinion available with anybody ? If so please mail me at the e-mail address mentioned, below.
Shahed
Toronto
aziz_shahed@hotmail.com
B/L blank endorsed
B/L blank endorsed
Dear Shahed,
It is my opinion that "made out to order" under instrument law (U.S. and most countries) means a bearer instrument and it (B/L) may be negotiated by transfer of possession alone until specially endorsed. It is also a practice that the shipper will endorsed in blank when L/C requires "made out to order and blank endorsed". I don't see any different in either case because the B/L was endorsed by the shipper in blank and will not impact the right of the holder.
Regards,
Albert
[edited 11/23/2007 8:19:01 PM]
It is my opinion that "made out to order" under instrument law (U.S. and most countries) means a bearer instrument and it (B/L) may be negotiated by transfer of possession alone until specially endorsed. It is also a practice that the shipper will endorsed in blank when L/C requires "made out to order and blank endorsed". I don't see any different in either case because the B/L was endorsed by the shipper in blank and will not impact the right of the holder.
Regards,
Albert
[edited 11/23/2007 8:19:01 PM]
B/L blank endorsed
Shahed
You dont need an expert view or an ICC opinion on this one.
'Irregular consignee' what next?
The BL is in compliance.
Vin
[edited 11/24/2007 10:21:23 AM]
You dont need an expert view or an ICC opinion on this one.
'Irregular consignee' what next?
The BL is in compliance.
Vin
[edited 11/24/2007 10:21:23 AM]
B/L blank endorsed
I couldn't understand what the discrepancy is.Irregular consignee doesn't mean anything to me.
Doc is compliant
Regards,
Doc is compliant
Regards,
B/L blank endorsed
Dear Shahed,
ISBP681-para.102 clearly states
"if a bill of lading is issued to order or to order of the shipper,it must be endorsed by the shipper."
Since the b/l you're writing about is made out to order of shipper and blank endorsed by the shipper the b/l is ok, even if the l/c ask for made out to order b/l.
The transfer of possesion isn't affected at all.
I would reject the discrepancy based on ISBP681-p.102 and UCP600-art.14d.
Regards,
Bogdan
ISBP681-para.102 clearly states
"if a bill of lading is issued to order or to order of the shipper,it must be endorsed by the shipper."
Since the b/l you're writing about is made out to order of shipper and blank endorsed by the shipper the b/l is ok, even if the l/c ask for made out to order b/l.
The transfer of possesion isn't affected at all.
I would reject the discrepancy based on ISBP681-p.102 and UCP600-art.14d.
Regards,
Bogdan