Airway Bill Neither Document of Title nor Negotiable Document

Airway Bill Neither Document of Title nor Negotiable Document

Airway Bill Neither Document of Title nor Negotiable DocumentThe airway bill is not a document of title to goods and, in consequence, not a negotiable document, unlike Bill of Lading. If the airway bill is prepared in the name of consignee, the consignee can take delivery of goods even, without producing copy of airway bill. It is a risky way to prepare the airway bill in the name of the buyer unless the buyer's integrity is unquestionable or advance payment has been received. It is highly desirable to consign to a third party like the issuing bank and mention the bank as consignee. In such an event, the bank takes delivery of goods and keeps the parcel (small size that can be kept in a cupboard) with it, till receipt of payment. After making the payment to the bank, the buyer can get delivery of the parcel from the bank. If this procedure is not adopted, the other can obtain the goods from the carrier at destination, without paying the issuing bank or the consignor. Therefore, unless the exporter has received cash payment or integrity not doubted, consigning goods directly to the importer is totally risky.

For air consignment to certain destinations, it is possible to arrange payment on a COD (cash on delivery) basis and consign the goods directly to the importer. If this procedure is adopted, the goods are released to the importer only after the importer makes the payment and complies with the instructions in the AWB. In USA, under Uniform Commercial Code, airway hill a document of title to the goods.


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