I have a problem with some required documents under a L/C. The L/C itself states:
Freight payment receipt and invoice in original must be attached.
x
As there is no regulation about the issuer of these documents, i would sort these documents under art. 21, so they might be also issued by the beneficiary. The delivery term of the L/C is CFR and the bill of lading must show freight prepaid.
x
I kindly search for opinions about this case and would be very thankful to get supported.
Freight invoice and freight payment receipt
Freight invoice and freight payment receipt
Gerhard,
I would suggest Opinion R340 and the related -I assume- last sentence of paragraph 197 of ISBP are relevant to the issue of whether a document covered by Article 21 may be issued by the beneficiary (even though they relate to certificates of origin).
In the example you quote, I wonder if there are other terms of the credit that are relevant. I would not be surpised if -taken as a whole- the credit required the ‘Freight payment receipt and invoice’ to be issued by the carrier (or its agent).
[edited 7/20/2006 11:18:35 AM]
I would suggest Opinion R340 and the related -I assume- last sentence of paragraph 197 of ISBP are relevant to the issue of whether a document covered by Article 21 may be issued by the beneficiary (even though they relate to certificates of origin).
In the example you quote, I wonder if there are other terms of the credit that are relevant. I would not be surpised if -taken as a whole- the credit required the ‘Freight payment receipt and invoice’ to be issued by the carrier (or its agent).
[edited 7/20/2006 11:18:35 AM]
Freight invoice and freight payment receipt
There is no other clause in the L/C that says that these documents have to issued by the freight forwarder, therefore i wonder why they should not be issued by the beneficiary?
Freight invoice and freight payment receipt
Gerhard,
You have not said to what the ‘Freight payment receipt and invoice’ must be attached. If it is the transport document I could see that it is possible that it is an implied term of the Credit that these documents are issued by the carrier, notwithstanding Article 21. Overall, I am not in a position to express an unequivocal opinion.
You have not said to what the ‘Freight payment receipt and invoice’ must be attached. If it is the transport document I could see that it is possible that it is an implied term of the Credit that these documents are issued by the carrier, notwithstanding Article 21. Overall, I am not in a position to express an unequivocal opinion.
Freight invoice and freight payment receipt
IN the L/C the text is as follows under documents required:
...
e) bill of lading etc.
f) freigt payment receipt and invoice in original must be attached.
x
Does this constitute the freight payment receipt and invoice to be issued by the forwarder ?
...
e) bill of lading etc.
f) freigt payment receipt and invoice in original must be attached.
x
Does this constitute the freight payment receipt and invoice to be issued by the forwarder ?
Freight invoice and freight payment receipt
Gerhard,
Sorry, I cannot say with any certainty. Perhaps there are others more confident of their judgement than me?
Obviously, if you have not presented documents -or have time to cure refused documents- the prudent thing to do is have receipt and invoice issued by the carrier.
Sorry, I cannot say with any certainty. Perhaps there are others more confident of their judgement than me?
Obviously, if you have not presented documents -or have time to cure refused documents- the prudent thing to do is have receipt and invoice issued by the carrier.
Freight invoice and freight payment receipt
Gerhard,
I have negotiated a credits with a similar stipulation, where the freight invoice has been issued by the bene without any objection from the issuing bank. However a freight payment receipt in my view should be issued by the person actually receiving the payment. I feel that a payment receipt issued by the bene would fulfil the functional utility of the document which is to evidence the actual payment of freight.
regards
Khalid
[edited 7/20/2006 1:07:44 PM: Incomplete post]
I have negotiated a credits with a similar stipulation, where the freight invoice has been issued by the bene without any objection from the issuing bank. However a freight payment receipt in my view should be issued by the person actually receiving the payment. I feel that a payment receipt issued by the bene would fulfil the functional utility of the document which is to evidence the actual payment of freight.
regards
Khalid
[edited 7/20/2006 1:07:44 PM: Incomplete post]
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RolandLeupi
- Posts: 115
- Joined: Fri Apr 05, 2019 5:26 pm
Freight invoice and freight payment receipt
I would say that even if there is no special requirement by whom has to issue the document a freight invoice can only be issued by the carrier/agent
Roland
Roland
Freight invoice and freight payment receipt
This might be right, but which regulation is the base for this opinion. Under the said circumstances, if there will be presented these documents issued by the beneficiary, what reasons for an advice of refusal would become effective ?
Freight invoice and freight payment receipt
Gerhard,
To me the only justification -under English law- for refusing a freight payment receipt and (freight- I assume) invoice issued by the beneficiary would be on the basis of an implied (as opposed to an express) term of the Credit. I suspect the law applicable to the Credit / the courts that accept jurisdiction in the event of litigation could well be determinant in deciding the ‘correct’ position.
To me the only justification -under English law- for refusing a freight payment receipt and (freight- I assume) invoice issued by the beneficiary would be on the basis of an implied (as opposed to an express) term of the Credit. I suspect the law applicable to the Credit / the courts that accept jurisdiction in the event of litigation could well be determinant in deciding the ‘correct’ position.