Stale Bill of Lading

Stale Bill of Lading

Stale Bill of Lading

 

A bill of lading that is not presented within 21 days after shipment of the vehicle is called a Stale Bill of Lading. In other words, the stale bill of lading is a type of bill of lading that is presented to the nominated bank after the presentation period.

A Bill of Lading can be treated as ‘Stale’ if it is presented long after sailing of vessel pertaining to a shipment at the port of loading. Such a presentation of the Bill of Lading could be with the Supplier’s Bank, Discounting Bank, Negotiating Bank, Buyer’s Bank, or buyer. The term ‘Stale Bill of Lading’ is also used when a bill of lading is presented with a bank after the expiry date of credit.

According to international commercial practice, the Bill of Lading along with other shipping documents must be presented to the bank not later than twenty-one days of the date of shipment as given in the Bill of Lading. In some events, the Importer may indicate the number of days within which the documents are to be presented from the date of shipment. The exporter has to comply with the stipulation period of time indicated. Differently, the Bill of Lading becomes stale and is not accepted by the bank for payment. A stale bill of lading is one which is tendered to the presenting bank so late a date that it is impossible for the bank to dispatch to the consignee’s place, in time, before the goods arrive at the destination port. In other words, the bank finds it impossible to see the documents reach before the ship reaches the destination. Here, the Bill of Lading reaches after goods reach the destination. If a bill of lading presented to a consignee or a bank after the last date specified in the documentary credit becomes stale. So a Stale Bill of Lading can be rejected by the bank wherein such a Bill of lading is presented for negotiation under the documentary credit.

 

Stale Bill of Lading Points:

 

  • A Bill of Lading can be treated as ‘Stale’,

  • If it is presented long after sailing of vessel with reference to a shipment at port of loading.

  • Such presentation of Bill of Lading could be with the Supplier’s Bank, Discounting Bank, Negotiating Bank, Buyer’s Bank or buyer. The term ‘Stale Bill of Lading’ is also used when a bill of lading is presented with a bank after expiry date of credit.

 

 

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