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Video instructions and help with filling out and completing what is a bill of lading and what is its purpose

Instructions and Help about what is a bill of lading and what is its purpose

In this case we've been looking at the risk of using fo B for an exporter let us take a look at the facts of the case in the next slide an imported Atlanta entered into a sales and purchase contract with the exporter a manufacturer of fine woven carpets in India for 700 thousand US dollars on fo B basis the method of payment is by D P when the goods was ready the importer requested the exporter who passed the container load of goods to his NVOCC in Mumbai NVOCC stands for non vessel operating can command carrier which is a common carrier that holds itself out to the public to provide ocean transportation issues its own house bill of lading or equivalent document and does not operate the vessel by which ocean transportation is provided after the exporter transferred the goods to NVOCC 1 it issued an NVOCC bill of lading also commonly known as the house bill of lading or freight for this bill of lading to the exporter exporter prepared a collection instruction and attach the NVOCC BL together with other documents such as invoice and packing lists and submit it to his remitting bank the exporter requests the remitting bank to send the documents to the importer in atlanta and collect payment on their behalf the remitting bank forwarded the documents to the collected bank for it to collect payment from the importer meantime the NVOCC one ships out the container through a shipping agent in mumbai once the container of goods are loaded onto the vessel the shipping agent issue an ocean BL which miss the NVOCC one as the shipper and the NVOCC two in Atlanta as a consigning Music subsequently NVOCC one forwards the ocean bl2 NVOCC to when the goods landed in Atlanta it was released by the pot to NVOCC two using the ocean bill of lading there was folded by NVOCC one and the importer taken possession of the goods when the documents arrived at Atlanta the collecting Bank was unable to contact them porter as the importer had apparently gone missing the collecting bank informed the remaining bank who notified the exporter that they were not able to contact them porter the exporter also tried to contact them potter but to his horror the importers not picking up his call the importer had gone missing him exporters subsequently made investigations and found out that the goods which has landed in atlanta had been released by the part through the ocean bill of lading which was released by NVOCC to to the importer who had taken possession of the goods the importer of fraudster he had set up a non-existent NVOCC with a purpose of perpetuating fraud the important had bill up the relationship with exporter over the last six months buying small quantities and always made advance payment to build up the confidence of the exporter he then convinced the exporter to sell him a huge.