Is received for shipment Bill of Lading sufficient for LC negotiation?
Let us discuss, what is received for shipment Bill of Lading? How does received for shipment bill of lading work?
As I have explained in detail in my previous article, the bill of lading is issued by carrier as a proof of receipt of goods from shipper. The earliest time of issuing bill of lading is on completion of export customs formalities and receipt of original ‘let export order’ copy of shipping bill from customs house agent or from the shipper by the carrier of goods. If cargo is loaded in a CFS (dry port) away from sea port of loading, the multimodal transport carrier has to move the goods to port and then load the goods to the ship. However the “Received for Shipment” bill of lading can be issued by carrier immediately up on receipt of goods from shipper after completion of customs clearance.
Is Received for shipment Bill of Lading sufficient for LC negotiation‘Received for shipment’ bill of lading can be issued to shipper immediately up on receipt of goods by the carrier after necessary export customs clearance procedures of exporting country. In other words, the goods need not be gone ‘on board’ Vessel. In other words, if customs location of export is at an Inland destination, far away from sea port of loading, the exporter opts to complete necessary export legal customs formalities at such location for smooth clearance. The carrier can issue bill of lading – Received for Shipment Bill of lading – immediately up on receipt of goods after completion of export clearance procedures at such location.
Does Bank accept ‘Received for shipment’ bill of lading under LC negotiation? Can bank accept bill of lading issued before shipment gone on board the vessel?
Normally the overseas buyer instructs the seller (exporter) through Letter of Credit, to send clean shipped on board bill of lading. However, in some cases, as per the agreed terms between buyer and seller, buyer arranges to mention on letter of credit to accept ‘Received for shipment Bill of Lading’. If the Letter of credit just says ‘Bill of Lading’, ‘Received for shipment Bill of Lading’ is much enough to negotiate buyer’s document, as bank can not find this as a ‘discrepancy’. However, if Letter of Credit insists to produce ‘on board bill of lading’, the shipment must be gone on board the vessel and there after such ‘on board’ bill of lading has to be obtained by shipper from carrier of goods.
.