![]() In this article I have explained about the importance of Bill of Lading under LC at sight. Also read Can Original Bill of lading be surrendered under LC at sight Is Airway bill a documents of title to us under LC at sight? Before issuing delivery order, bank confirms receipts of payment from his customer (buyer) against the Letter of Credit. The carrier of goods can release cargo to the buyer only after receiving such delivery order issued by the bank mentioned on Bill of Lading. In short, without remitting the amount as per letter of credit, the buyer can not take delivery of goods.Īs per agreed terms with supplier, if buyer agreed to mention opening bank’s name as consignee or ‘To Order’, the opening bank (buyer’s bank) has to issue a ‘Delivery order ‘ to the buyer. So, buyers bank (LC opening bank) delivers original bill of lading only after receiving the export proceeds (value of goods shipped). ![]() As per sight LC conditions, LC opening bank has to remit amount of shipment to beneficiary bank, on acceptance of documents by buyer. Here the point is, without original bill of lading, the buyer can not take delivery of goods. He surrenders original bill of lading with the carrier and takes delivery of goods. The buyer accepts documents and arrange for import customs clearance to take delivery of goods. The buyer’s bank notifies buyer and instructs him to accept documents. After satisfying with the terms and conditions of letter of credit, the authorized bank negotiate documents and sends the documents to overseas buyers bank. The said original bill of lading along with other shipping documents are submitted along with Letter of Credit with his bank for negotiation. Once after completion of export formalities at customs, exporter collects original Bill of Lading from carrier of goods. Letter of credit at sight is one of the payment terms in international trade. How does Bill of Lading work under sight LC? How does bank handle Bill of Lading under LC at sight? In this article let us discuss about the mechanism of Bill of Lading under Sight LC. How does Bill of Lading function in Sight Letter of Credit? ![]() ![]() The information provided here is part of Guide on howtoexport and import “A bill of lading need not be titled “marine bill of lading”, “ocean bill of lading”, “port‐to‐port bill of lading” or words of similar effect even when the credit so names the required document.”Īs a result title of the bill of lading is not important when checking the documents under the letter of credit transactions.Posted on 01 June 2022 Category : Bill of Lading It is highly likely to be working with a shipping company who has a marine bill(s) of lading pre-printed form where credit calls for an ocean bill of lading or vice versa.Īccording to latest letter of credit rules Some shipping lines are using ocean bills of lading and others are using marine bill(s) of lading.
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