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Published Prices & Bol Alternatives

The law of the sea.

Published Prices & Bol Alternatives

Postby curran » Wed Nov 09, 2016 1:15 pm

Q.1.

Is there ANYTHING besides a BOL that a carrier can create which doesn't show consigNOR information and is documentary proof carrier received merchandise @ port destined for delivery to my client/consignee(GR? or SDF?) ??

Q.2.

Out of mere curiosity, I assume with proper language an LC can allow a seller to price/invoice/collect against a specific published price COMEX/CBOT/etc. etc of a commodity on the ship date, would you agree or have you ever heard of the practice?
curran
 
Posts: 46
Joined: Sat Apr 02, 2011 9:17 am

Published Prices & Bol Alternatives

Postby Brooks » Thu Nov 10, 2016 4:48 pm



Dear Milke

I'm not sure what you mean??? - I think below may cross the paths in answering your questions. Big question - Can meander all over the place.I'll try and keep it relevant. 1/ Yes! You can -  not in our business - EXW deals and FAS deals don't need a BOL. In a FOB deal the buyer obtains the BOL - but he has the right to ask the seller to secure it on his behalf.

To write a FOB contract defining as much is difficult and not many intermediaries would be able to do such- accordingly the intermediary FOB seller simply controls the situation, by ensuring they do collect the BOL and endorse such for the buyer- and leave it to the buyer to stipulate that they will secure a BOL thus remaining  true to FOB incoterms delivery rules.

The BOL is the main document of TITLE- we buy ad sell titles to goods along with supporting 'DELIVERY DOCUMENTS ' as per FOB, FCA. CFR or CIF, CIP incoterms rules.

The irrevocable aspects of a the DLC protects our position- Once the supplier is exposed to the end buyer-which will happen- the IDLC cannot be revoked, unless the product offered is fake. Only fraud can cancel a IDLC. So what if the supplier finds out - you've just made a million bucks legally? Plenty of supplier out there-and if you do a good job of it - the end buyer night still use your services later anyway.

As Buyer we apply to 'ORDER good in our own Name(FTN Exporting) as party to be notified.If we don't do as much we can't 'endorse" the DLC to the end buyer- Because once you don't use the ' 'Notify Party " application - then in fact the name of the  consignee must be apparent on the BOL - meaning he has obtained the BOL directly without our help.

In our "Notify party"application we  endorse in BLANK the BOL - meaning it cannot be "transfered "to anyone else but the end buyer -If the end buyer secure the BOL and does not Blank endorse it -such can resell the goes down a long line of traders until the final person- the end user gets the blank endorsement on the BOL to apply

So it a safely application as well - We can't use a waybill as that's only a 'receipt on board ship' as sellers we 'need to assure 'something" hence we guarantee the title and delivery docuemtns as our way to ensure the supply given is real. All these matters are advised in our doctrine. We can't use a Bill of Exchange to allow supplier to collect funds on production of such  and lets say a Proforma invoice - because there is no uniformity is the issuance of a BOE. Law of the country applies-

Unlike UCP and Incoterms which are world wide uniform application supported by rules.So the doctrine uses the rules of delivery in place long ago to support and protect our own trading position and everyone else we are trading with as buyer/seller.

2// No Language DLC - You are suggesting in   using the aspects of a SLC not DLC hence we are not allowed to accept a SLC for the purchase of goods nor selling of goods as it lacks the required security already defined above. If you think someone is going to advise the unconditional aspects of an SLC for goods worth lets say 100,000,000 dollar - it's never  going to happen. An SLC is unconditional payment instrument - an DLC is a conditional payments- based on the production of contracted documents.

It bad enough trying to close deals using superior safe proceedings - anything less is simply not  viable as it applies to the nature of business we are in.

Try and secure a SLC from a end buyer in where you are offering a Invoice and other documents except the title documents- They will laugh at you. An SLC may be used for P.G applications  and is issued after YOU have first advised and acceptable DLC to the supplier.

Sure end buyer may deal in any way they wish when dealing directly with supplier -That's why the law books are full of so many court challenges in this business-we only use safe acceptable procedures for one reason only - So we don't end up in prison should goods secured prove to be fake.We avoid prison because for all our very best efforts and safe procedures, its nearly impossible for a fake offer to be plied by us- and if one fake offer does slip through the cracks , then following all proper safe procedures will still protect us.

Your intent is not good if you offered goods to an end buyer which does not exist, if for instance you accepted an offer from another intermediary without obtaining and checking suppliers details...Offering goods without title leaves  you open to scams. The rules of agency are very clear here-parts of which are understood nearly universally.  If you 'offer goods from an undisclosed source" then you require to hold "ostensible authority " which allows you to make an offer to the end buyer.

"Ostensible authority " defined to imply that YOU have in your hands an written  offer to BUY goods  from a "supplier in possession of such."

if you have a real supplier and you sell such goods to a real end buyer  and the end buyer opens a DLC to YOU and the supplier does not supply- then you are safe. If the supplier does supply , then title documents is what you are selling to your end buyer.

3// Above is what a good informed intermediary must understand- ill informed intermediaires as seen on the net have no idea of the above.

4// You cannot simply present a Pro form invoice and a few other documents and not the primary document of title. If  you were buying a Book and the seller advises a pro forma invoice for 80 dollars - in where once payment is made, the book is forward to the purchaser- You can't do that in a multi million dollars deals - Scammers try such application , not genuine traders.

Also note , speculative prices are based on the buying and selling of stocks usually for supporting goods  at FOB ' loaded on board vessel' in effect the goods are on "water" hence it's a SPOT deal.

We can't deal in spot offer - we can only deal in Future contract applications in where first delivery is at least 80/90 days in advance of offer made or 60 days in advance  of DLC lodgment.

Meaning thats how long it will tale to seal contract with YOUR supplier while closing contract and securing a DLC from YOUR end buyer- assume and expect  its more rather than 90 days that is needed often prevails. We do not have 100 million dollars in our bank account to buy SPOT products in 7 days or so- We have to work hard to secure contract with supplier and end buyer then secure a DLC form the end buyer.We have no other choice as genuine import export intermediaries.

I hoped I crossed the path requiring to give you an answer required.There is more but above should suffice.

Kind Regards

Davide Giovanni Papa

www.ftnexporting.com

www.smice.net

www.ftnx.9f.com

www.itsi.itgo.com  
Brooks
 
Posts: 43
Joined: Tue Mar 25, 2014 2:58 pm

Published Prices & Bol Alternatives

Postby Chenche » Mon Nov 14, 2016 6:35 pm

Q.1.

Is there ANYTHING besides a BOL that a carrier can create which doesn't show consigNOR information and is documentary proof carrier received merchandise @ port destined for delivery to my client/consignee(GR? or SDF?) ??

Q.2.

Out of mere curiosity, I assume with proper language an LC can allow a seller to price/invoice/collect against a specific published price COMEX/CBOT/etc. etc of a commodity on the ship date, would you agree or have you ever heard of the practice?
Chenche
 
Posts: 51
Joined: Thu Jan 30, 2014 9:48 pm


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