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7/19/13
bill of lading promising that the consignment will be delivered at the agreed destination. At this point the consignment is handled by the transportation system and can involve the usage of port facilities, warehouses, rail or trucks segments depending on the concerned transport chain. 3. The seller can then present the bill of lading to its bank as an additional condition being meet to secure final payment. It is important to underline that payment is not necessarily provided to the seller immediately after the bill of lading is provided, but after the buyer has taken ownership of the consignment and confirmed that it meets the specification stated in the contract (quantity, quality and condition). The bill of lading is then forwarded to the buyer's bank in exchange of payment and afterwards to the buyer so that the consignment can be claimed once delivered. 4. The buyer is finally able to provide the bill of lading to the shipper and claim the consignment. After it has been confirmed, often by a neutral third party, that the consignment meets the terms of the contract the seller can claim final payment from its bank from the funds that were previously deposited. It is estimated that large commercial banks finance about 90% of all global trade transactions. If for any reason the letter of credit cannot be cleared and the payment made the transaction cannot take place.
Home | Contents | Media | Glossary | Links | About | Contact | Purchase Copyri ght 1998-2013, Dr. Jea n-Pa ul Rodri gue, Dept. of Global Studies & Geography , Hofs tra Uni vers i ty, New York, USA. Thi s ma teri a l (i ncl udi ng gra phi cs ) ca nnot be copi ed or redi s tri buted, i n whol e or i n pa rt, i n ANY FORM (pri nted or el ectroni c) a nd on ANY MEDIA. For s peci fi c us es permi s s i on MUST be reques ted a nd the ma teri a l mus t be ci ted.
people.hofstra.edu/geotrans/eng/ch7en/conc7en/creditlading.html
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