Credit requires bene in M'sia to advise details of shipment to applicant's insurer in Singapore by airmail,a copy to be submitted.
LC mentioned insurance is covered by buyer under cover note 1234.
Is it necessary for the bene's advice to be dated on the very same day of shipment i.e. BL on-board date or it doesn't matter.
The credit is silent on this.
Would been grateful for your comments.
Thanks!
[edited 6/5/01 3:23:53 AM]
Issuance date of advice to applicant's insurer
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chungmingchang
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larryBacon
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Issuance date of advice to applicant's insurer
It is not necessary for bene's advice to be dated the same as shipment date. In fact this may be impossible to do without fraud. One cannot say for certain that goods have been shipped until the relevant vesssel has sailed. For example, in tidal ports, the vessel may have a short perion of time in which to sail. Suppose that this is between 11.00 p.m. on day 1 and 01.00 a.m. on day two. Obviously if it sails before midnight the B/l will be dated on day one; otherwise it will be day two.
Laurence A. J. Bacon
Laurence A. J. Bacon
Issuance date of advice to applicant's insurer
Since the buyer has already covered the insurance risk with a cover note issued well before shipment, then it does not matter which date the shipment advice is sent for insurance purpose. The insurance will be held covered by the cover note subject to later report of shipment details. Hence the "late" declaration or advice of shipment details has no material effect on the underlying transaction.
If the insurance is covered by an annual open cover, then the shipment details can be reported to the insurer once a month, usually at the end of that month, because they are automatically covered anyway.
Hence we must examine documents with common sense and with adequate knowledge about insurance practice.
I am from www.tolee.com and this comment is sent from the Hong Kong Public Library, whilst I visit Hong Kong to deliver lc and insurance lecture there.
[edited 2/2/02 6:57:53 PM]
If the insurance is covered by an annual open cover, then the shipment details can be reported to the insurer once a month, usually at the end of that month, because they are automatically covered anyway.
Hence we must examine documents with common sense and with adequate knowledge about insurance practice.
I am from www.tolee.com and this comment is sent from the Hong Kong Public Library, whilst I visit Hong Kong to deliver lc and insurance lecture there.
[edited 2/2/02 6:57:53 PM]