Disadvantage Bill Of Lading Consigned To Applicant

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TradeLaporte
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Disadvantage Bill Of Lading Consigned To Applicant

Post by TradeLaporte » Wed Nov 19, 2014 12:49 pm

Dear members

Would like to know the disadvantage of having BL consigned to apiicant in a Lettef of Credit

KRISH
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Disadvantage BL consigned to applicant

Post by KRISH » Wed Nov 19, 2014 3:41 pm

Hello,

As the Bill of lading is a document of Title of Goods, if the B/l is Endorsed to Applicant before the beneficiary is paid he can simply take ownership of the Goods, which is not beneficial to the beneficiary.


Hope to have answered to your question.


Regards,
Kris

yousufsyed22
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Disadvantage BL consigned to applicant

Post by yousufsyed22 » Thu Nov 20, 2014 10:53 am

Hi,

Since, Bill of Lading is Negotiable document usually all bank requests to consgin the BL to themselves reason being, If any one of the issued BL gets in to the hand of Applicant (if BL consigned to Applicant) they can clear the goods without any further endorsement.

Its always safe to consign the goods to Issuing Bank only.

tituisrt
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BL consigned to applicant

Post by tituisrt » Sun Nov 23, 2014 10:39 am

Dear,

If the tittle of goods directly goes to the applicant issuing Bank will may not be able to recover the paid amount.
Also noted that In a Letter Of Credit applicant is not a party and issuing Bank has to Pay.
So, its a serious disadvantage for the issuing bank.

Thanks & Regards

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