AWB to order / to the Issuing Bank

LC VIEWS - Single Window Q&A No. 29 - Feb 6, 2008

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Question:
As far as I understand the AWB / HAWB is non negotiable. I have seen some AWBs where the consignee is a nominated bank which later endorses it to the order of issuing bank / directly consigned to the issuing bank
This is mainly because in many Asian countries, the local law says "any export shipment must be made to the order of a bank". As far as B/L is concern there is no problem, but how will you deal with such local laws? Moreover for the same reasons, in all the collection documents including transport document, the collecting bank is shown as consignee who is not with the spirit of URC.
Your comments on this will be highly appreciated.

Response from T.O. Lee:
If you go into the local legislations, the international conventions, Incoterms 2000, and the like, it is not a surprise to find some inconsistencies or conflicts amongst them. The reason is simple. The drafters of the laws, rules, and conventions do not know the other trade practices.
Those who point this out may be seen as the black sheep in a particular industry and may carry nicknames such as "loose cannon", "cannon ball" as they do not think this is a problem or they simply do not understand the underlying reasons or consequences. It will take great courage to become a black sheep and this is not easy too as he or she must know trade practices beyond a certain industry.
That is life.
T. O.

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