A major palm oil exporter in Johore recently lost almost RM20 million due to a discrepancy in the bill of lading under a export LC!!!
Yes! All it takes is just ONE discrepancy in export documentation under LC to WIPE OUT a few years or all your past years’ profit! According to a survey, about 80% of discrepancies in Letters of Credit are from transport documents especially the Bill of Lading.
The main reason being many shipping agents and freight forwarders are still not familiar with the strict requirements under UCP600 and ISBP (the international rules governing LC transactions) with regards to how bills of lading are to be issued. Even many of the bankers in Malaysia are also not fully conversant with the requirements of UCP600 and ISBP.
Traders and those involved in international trade must therefore arm themselves with a wealth of knowledge to protect their own interest.This advance course is for those involved in sea freight.
- The compulsory requirements of UCP600 and ISBP on the preparation Bills of Lading, Charter Party Bill of Lading, Non-Negotiable Bill of Lading & Multi-Modal Transport Documents viz:
- The meaning and practical usage of “To Order of Shipper” in the consignee column.
- Authoritative case studies published by ICC on BL rejected by banks due to discrepancies created by shipping agents and freight forwarders.
- The different ways in which Shipping Lines and the ICC define Pre-Carriage, Ocean Vessel, and Feeder Vessel.
- How data are often being wrongly put in the Place of Receipt, Port of Loading, Port of Discharge and Final Destination on the BL when the journey also involved a land bridge?
- Telex Release of Goods– Risk Implications for the carrier, exporters and banks
- Recent fraud cases involving shipping lines, and banks using bills of lading and shipping guarantees
- The use of Sea Waybills in LC– Advantages and Risk implications for exporters, importers and banks.