It is a guarantee cum indemnity issued by the bank in favour of the shipping company. When shipping documents against L/C are not received by the bank but the ship carrying the goods arrives at the port of destination and the shipping company is not willing to release the goods without the relative shipping documents but the importer may like to take delivery of the goods to avoid warehousing cost and demurrage charge against an agreement indemnifying the shipping company for any loss which it may sustain for delivery of goods without the relative bill of lading.
Guarantees given by bank to shipping companies for release of goods in the absence of Shipping Documents in case of goods arrive before receipt of the documents.
No comments:
Post a Comment