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Shipping Documents

Shipping documents is a set of foreign trade related documents that is used to realize foreign trade business between buyers and sellers.In foreign trade process seller presents a set of shipping documents or import documents to buyers bank for payment realization. Importer’s bank checked these documents and make payment effective to seller’s bank.

Foreign Trade Documents Discrepancies

 1)Late shipment.
2) Late presentation of documents.
3) Early shipment i.e. shipment made prior to issuance of LC or time stipulated in LC.
4) LC expired.
5) LC overdrawn /Amount Exceeded.
6) Part shipment or Transshipment effected in contrary to LC terms.
7) Cutting / alternations in documents not authenticated
8) Documents inconsistent with each other.
9) Description of documents on collection schedule differs with documents
presented. 

Bill of Exchange:

1) Amount of bill of exchange differs with that of invoice
2) Not drawn on LC issuing Bank.
3) Not signed.
4) Tenor of Bill of Exchange not identical with LC
5) Amount in figures corresponds exactly with the amount in words.
6) Bill of exchange is not endorsed correctly.
7) Bill of exchange payable on an interminable date.

Invoice:

1) Invoice Not issued by the beneficiary /or as stipulated in the LC
2) Not made out in the name of the applicant.
3) Description, unit price, quantity etc. differs with the LC terms or not mentioned
4) Not marked as “Original”
5) Other discrepancies not comply with LC terms.

Packing List:

1) Packing list not submitted.
2) Gross weight, Net weight and measurement, number of packages differ  with those of BL.
3) Not marked as “Original”
4) Shipping marks differ with that BL
5) Other discrepancies not comply with LC terms.

Bill of Lading:

1) Full set of Bill of Lading (BL) not submitted.
2) Bill of Lading is not drawn /endorsed to the order of issuing bank.
3) “Shipped on Board” “Freight Prepaid” etc. notations are not marked on
the Bill of Lading.
4) Name and address of the Notify Party (ies) are not mentioned or not as
per Letter of Credit (LC) stipulation.
5) Bill of Lading does not indicate the name and capacity of the party i.e carrier of
master, on whose behalf the agent is signing the BL.
6) “Shipped on Board notation not showing name of intended vessel.
7) Short form Bill of Lading.
8) Third party Bill of Lading submitted (Unless stipulated in the LC).
9) Charter party Bill of Lading (unless stipulated in the LC).
10) Description of goods in B/L does not agree with that of invoice and packing list.
11) Alteration on Bill of Lading not authenticated.
12) Loaded on Deck (goods shipped on deck-unless stipulate in the LC).
13) Claused (unclean) bill of lading.
14) ON BOARD notation in Bill of lading undated/ unauthenticated.
15) Shipment effected from port other than the stipulated in the credit.
16) Certificate notifying insurance company of shipment not presented.
17) Shipping marks and numbers differ between documents.
18) Bill of lading does not evidence whether freight is paid or not.
19) Forwarder’s cargo receipt not acceptable (unless provided in the L/C).

Shipping Certificates:

  1. Certificate of Origin /Consular Invoice
    a) That the merchandise covered therein is the merchandise coverage
    by the invoice.
    b) That the weight and description shown in the Consular documents
    are identical with those shown in other documents
  2. Non-negotiable documents not forwarded as per LC terms.
  3. Inadequate number of invoice, packing list, BL etc. are submitted.
  4. Short shipment certificate not submitted.
  5. Certificate of origin differs with LC terms.
  6. Shipping company certificate regarding ownership of vessel, number of LCAF Form, IRC, H.S Code and export LC number are not written in all the documents as per LC terms.
  7. Insurance documents are not endorsed correctly
  8. Absence of documents called for in the credit.
  9. Absence of signature, where required, on documents presented.
  10. Pre-shipment inspection certificate not submitted
  11. Health/Fumigation certificate not submitted.
  12. Weight list / inspection certificate not sub

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