TO ORDER(Banking Group) for account of(Bank in the Group)

Ella · Post by **Ella** » Thu Apr 15, 2010 11:11 pm

Hi, everybody,

Thanks again to all posting here, sharing encountered problems on LCs and even more, thanks to those sharing their valuable experience in the field and helping with comments and advices. I have learned a lot of things watching this forum, and many information has been of great help to me.

I'm asking a piece of advice again, if you have had such a situation, in one LC I have the BL to be issued "TO THE ORDER OF ( here is the name of the banking group) FOR THE ACCOUNT OF ( and here's the name of the issuing bank, member of this banking group)". The shipping company is telling me that they cannot write like this. Is this a wrong wording ( and then, why on earth the applicant bank put it like that, I wonder). If it's forbidden to have this ( which I am not aware of), can I put "TO THE ORDER OF "BANKING GROUP NAME" - "ISSUING BANK NAME (MEMBER OF THIS GROUP)". Will this be considered discrepancy?
It's an urgent matter, thanks in advance for any piece of advice or comment.

Best regards,
Ella

iLC · Post by **iLC** » Fri Apr 16, 2010 11:22 am

to me for account of has similar effect to "on behalf of". that() means if you issue a bill of lading like that, it would mean that it is consigned to (Bank Group) who is the agent of the (issuing bank).

i found this total weird. the only reason i could imagine is that the entire bank group has a single operation center and wants to make the endorsement process easy.

of course you have to follow the credit terms; no matter how impossible it is. otherwise you run the risk of facing valid discrepancies.

Ella · Post by **Ella** » Fri Apr 16, 2010 1:56 pm

Hi,

Thank you, iLC, yes, it is exactly this situation : it is a big banking group resulted from the merger of two other big banking groups... and what I guess is that they have now a central department for all the foreign trade transactions,transactions which are actually handled independently by the various banking entities in the group.
If they put like this in LC, I should have that wording, I guess, and I'll be trying to convince the shipping company to follow the initial instructions.

Thanks and good luck to all.

Kind regards,
Ella