Dear members
Would like to know the disadvantage of having BL consigned to apiicant in a Lettef of Credit
Disadvantage Bill Of Lading Consigned To Applicant
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TradeLaporte
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KRISH
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Disadvantage BL consigned to applicant
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
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
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yousufsyed22
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Disadvantage BL consigned to applicant
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.
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.
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tituisrt
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BL consigned to applicant
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
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