The information provided here is part of Import Export course online
How does original Bill of Lading work in Sight LC
Can Original Bill of lading be surrendered under LC at sight
This is one of the common questions among traders – Can Original Bill of Lading be surrendered under sight LC? Can an exporter release Sea way bill under LC at sight? Is Original Bill of Lading must to be enclosed along with other shipping documents under Letter of Credit at Sight?
Before finding answer on whether OBL can be surrendered at load port under LC at sight terms, let us find how LC at sight works.
What is Sight LC and how does it work?
Under sight LC, the payment of export proceeds sent to seller’s bank by buyer’s bank immediately up on receipt of original shipping documents as per the terms and conditions mentioned on LC, on acceptance of documents by buyer. Here, the buyer accepts original documents from his bank for clearance of goods under import.
If the buyer and seller agrees to surrender bill of lading at port of loading and such clause has been added in the terms and conditions of letter of credit, seller can surrender original bill of lading at load port and arrange to send release message to buyer to take delivery of goods. However, in a payment term LC at sight, LC opening bank also does not prefer to surrender OBL at load port, as buyer can take delivery of goods, as carrier does not insist for original bill of lading. The opening bank remits amount of sale of goods mentioned in commercial invoice to the seller’s bank immediately up on receipt of shipping documents which satisfy with all terms and conditions of Letter of Credit at Sight.
So under most of the terms under Letter of credit at sight requires Original Bill of Lading as one of the shipping documents to be enclosed by exporter after export of goods at load port. Hence, surrender of OBL at load port under LC at sight is not permitted, unless otherwise agreed between buyer and seller. The release of Sea way bill also not permitted under Letter of Credit at Sight, unless otherwise buyer and seller mutually agreed.
Also read - Can Bill of Lading be surrendered at port of loading? Can Bill of Lading be surrendered on LC terms? Can Original Bill of lading be surrendered under DP terms of payment? Surrender of Bill of Lading – Some facts
Do you wish to add more information about this subject – ‘ Can Original Bill of Lading can be surrendered under a shipment of LC at sight?’
Write below your experience and thoughts on this article about surrender of OBL / Release of Sea way bill under a shipment of Letter of credit at sight.
The above information is a part of Online Export Import course
Comment below about the surrender of Original Bill of Lading under Letter of Credit at Sight.
STALE BILL OF LADING What does it mean? Difference between Clean On Board Bill of Lading and Shipped On Board Bill of Lading. Can Original Bill of lading be surrendered under DP terms of payment Can Original Bill of lading be surrendered under LC at sight Can Bill of Lading be surrendered on LC terms How to obtain a duplicate BL, if original bill of lading lost? Can a Bill of Lading be consigned to a customs broker? Can I get bill of lading before loading cargo Can two consignments meant for one buyer be shipped together under one Bill of Lading? Consignee To Order in Bill of Lading How to avoid delay in receiving OBL Original Bill of Lading? Amendment of Bill of Lading How to amend shipper details in Bill of Lading?. How to surrender HBL House Bill of Lading Surrender of Bill of Lading Some facts . How does Bill of Lading work in Sight LC. How does Bill of Lading work in DP payment terms? Can a Bill of Lading (BL) be predated for LC negotiation? What is the earliest date can be mentioned on Bill of Lading. Can BL date and let export date be same day? Can shipping line predate Bill of Lading,What is the earliest date can be mentioned on Bill of Lading. What is Said to weigh in Bill of Lading What is Shipper Load, stow and count in Bill of Lading What is said to contain in Bill of Lading. Can an importer take delivery of goods without original bill of lading? What is House BL House Bill of Lading Can Bill of Lading (BL) be before date of Certificate of origin GSP? What is Express Release Bill of Lading? Can Bill of Lading be surrendered at port of loading? Transferability of Bill of Lading What is charter party bill of lading ? How transshipment bill of lading works? What is Combined Bill of Lading / Multi model Bill of Lading Unclean Bill of Lading/Claused bill of lading/foul bill of lading/Dirty Bill of Lading What is Clean on board Bill of Lading? Is received for shipment Bill of Lading sufficient for LC negotiation? Different types of Bill of Lading 3 Reasons under Importance of bill of lading in international trade When can an exporter get bill of lading from shipping company?
Other post about import export cauching