The shipper who handles the letter of credit isShipped on boardThe bill of lading has a great deal of weight, and if there is a conflict between the item description, customer details, or bill of lading, there is often a lot of discussion, controversy, or refusal from the bank. Shipment date, Stamp or signature.
They are so strict in documentation that it is not surprising that banks check to see if the cargo covered by the bill of lading is actually loaded onto the ship.
Currently, in the shipping and freight industry, shipping-related entities (shipping companies, Carrier, Clearing agencies, etc.) operate independently of trade and financial entities (banks, insurance companies, chambers of commerce, etc.).
Therefore, there is no way for the bank to check if the goods are physically loaded.
Bank verification consists simply by checking the documents as needed. Letter of credit It will be submitted correctly.
The bank is not expected or able to confirm whether the cargo was actually shipped on the vessel listed on the bill of lading.
In fact, with containerized shipments, even shipping companies do not actually recognize and verify what is inside the container.
Well, if you’re wondering if a bank justifies paying money without actually checking if the item was actually shipped, well,
UCP 600 – Article 5 – Document v.Goods, services, or performance are clearly stated
The bank handles the document, but not the goods, services, or performance that the document may be associated with.
The UCP 600-Article 34-Document Validity Disclaimer further enhances this as follows:
Banks are liable or obligated with respect to the form, sufficiency, accuracy, authenticity, falsification, or legal effect of the document, or the general or specific conditions set forth in or superimposed on the document. Shall not bear. We are also not responsible for any description, quantity, weight, quality, condition, packaging, delivery, value or existence, or integrity or act or omission of the goods, services or other performances shown in the documentation. The solvency, performance, or status of a shipper, carrier, carrier, consignee, goods insurer, or other person.
The basis of a bank is that the bill of lading submitted to the bank is issued by a shipping company that is only authorized to issue it after confirming it.
1) The container is customs cleared
2) Containers are physically loaded onto the vessel / voyage from the port of loading listed on the bill of lading.
Therefore, the bank considers the bill of lading issued by the shipping company to be genuine and proceeds with the verification of other documents (commercial invoices, packing lists, etc.). Certificate of origin Etc.) Submitted according to LC requirements.
As for the product specifications, the bank does not physically check the cargo, so again it is not possible to verify that the cargo specifications on the bill of lading or commercial invoice are physically correct.
Of course, in the case of break bulk or bulk cargo, there are reports such as mate receipt or outturn reports from the port that may be used as evidence and may be used as evidence by the bank.
The bank will verify that the item description on the bill of lading and commercial invoice, as well as any other documents submitted, match the item description on the LC.
If there is a difference between these two descriptions, they will reject the wrong document.
So if you’re misunderstood that the bank is actually checking to see if the cargo covered by the letter of credit is loaded, you’ll know the answer.
So if you are the recipient of the goods and are wondering How do I know if an item has actually been shipped?, There are several ways to establish it.
Article republished with some important updates
Does the bank check if the cargo is actually loaded on the ship .. ??
https://www.shippingandfreightresource.com/do-banks-verify-if-cargo-is-actually-loaded-on-a-ship/ Does the bank check if the cargo is actually loaded on the ship .. ??