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Drawee for an Avalized document

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Sun, 10/25/2015 - 04:25
nasar_kakkadath
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Joined: 03/20/2008
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Dear Experts,

I had submitted an avalized document (Export Shipping Documents) to our Bank to send the Consignee's Bank. 

The Draft (B/E) has been drawn on the name of Collection Bank (Consignee's Bank).  But our Bank has rejected the same and they have advised us to make the Draft drwan on Consignee's Name instead of their Bank.

Is it good practice and safe as a Shipper/Beneficiary?

Thanks for your valuable advice.

Regards,

Nasar.

 

 

‹ Waiver of discrepancy BILL OF LADING SHIPPER REQUIRE LC OPENER ›
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Sun, 10/25/2015 - 23:22
#1
pan
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Joined: 09/13/2007
Aval..

Hi Friend,

Aval is an additional guarantee, someone, person or entity will back the drawee undertaking, so it is correct to to draw the bill of exchange(draft) on consignee, but ask the bank to deliver shipping documents against acceptance by the drawee and aval by the collecting bank.

So I understood!

Ciao

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Wed, 10/28/2015 - 06:01
#2
nasar_kakkadath
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Joined: 03/20/2008
Dear Ciao, Well

Dear Ciao,

Well noted....

Thanks for your clarification and valuable input.

Have a good day..

Regards,

Nasar.

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