![]() In that scenario, the nominated party must also verify the good condition of the goods shipped. The endorsement becomes particularly important if the bill is a clean bill of lading. Without the endorsement of the bill of lading, the trust deficit between the importer and exporter will remain intact. The purpose of the endorsement serves as the legal transaction acknowledging the delivery of the goods with specified terms. The endorsement may come directly or through the issuing bank or any third-party. The final endorsement needs to come from the buyer (importer) of the goods though. The possession of the goods from originating place to the shipment and consignee changes hands. Negotiable bills of lading usually take the form of the blank endorsement with multiple original copies. ![]() READ: Revolving Letter of Credit Why Endorse Negotiable Bill of Lading? The bank usually endorses the bill of lading with large trade volumes where the release of funds through LC takes place. Goods carrier or freight forwarders can only endorse the bill of lading if it is blank or nominated. The exporter may nominate the issuing bank to endorse the bill of lading. ![]() ![]() To Order of the Bank: International trades take place through the use of a Letter of credits and guarantees.To order of the consignee: The consignee or the trade recipient of the goods will make the endorsement of the bill.To Order of the Shipper: It states the shipper of the goods must endorse the bill of lading.Usually, the goods transporters (carriers or freight forwarders) would make such endorsements and return an original copy to the shipper. The holder of the original bill of lading can endorse the receipt of the goods. Blank Endorsement: it happens when the negotiable bill of lading does not specify the recipient.For example, the consignee may validate the goods are in good condition before making the endorsement.Īs there are different forms of negotiable bills of lading, the endorsement party will vary according to the type of negotiable bill.Īn endorsement of Bill of Lading will happen as: Depending on the terms agreed upon by both parties, the endorsement will require different steps. In many cases, the release of trade payment is linked with the delivery of the goods. The endorsement like the B/L and other trade documents also serves as the legal transaction. With a negotiable bill of lading, the recipient is left blank hence the endorsement can take place from several parties. When the bill of lading is non-negotiable only the recipient mentioned in the bill can receive and endorse the bill of lading. Who Should Endorse Negotiable Bill of Lading?Īn endorsement of a bill of lading is the acknowledgment of the possession of the shipment. ![]() The blank recipient column makes it possible to deliver the goods to a third-party. In long-distance shipments, the contract can be used by the carriers from the originators and the freight forwarding agents. In international trade, it can happen when the importer (intermediary) is different from another buyer. The transferability clause of a negotiable bill of lading makes it possible for the buyer (importer) to consign the shipped goods to another party. As the receiver changes hands before the goods reach the final destination, the term negotiable comes into play. In a blank or open recipient bill of lading, the holder of the original bill can take possession of the goods. The shipper (exporter) of the goods may explicitly nominate the recipient of the goods as the importer only, or keep the nominated open. Any bill of lading serves as the acknowledgment of the delivery of the goods. In a negotiable bill of lading, the holder of the original bill can claim the possession of the goods shipped. Negotiable Instrument - Order or Bearer Paper What is a Negotiable Bill of Lading? ![]()
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