This course is a sub-division of IB CLINIC dealing with the case studies of exporter and importer with Shipping Line, Air Line, Cargo Forwarders, NVOCC, Logistic Companies and other Custom Clearing service providers.
This course covers two segments;
1) Shipping – Logistics – Forwarding agencies / service providers.
2) Customs clearing. In customs clearing again there are two agencies involved:
a) Customs House Agent (CHA) and
b) Customs Department of any government.
In this division, we will try to do the analysis of the cases contested by Importer or Exporter with 1) and 2) a) while 2) b) that is Cases of exporter / importer with Government Customs Departments will be dealt in a division named Cases with Government Departments.
For whom:
1) Students, professors and academicians in Custom Clearing Training or Shipping & Logistics Training
2) Important for them who want to develop in depth understanding about Shipping and Logistics Management.
3) Useful for Custom Clearing Agents (Customs House Agents - CHAs) who are in Custom Clearing Business of import export cargo.
4) Useful for them who want to develop their future in Custom Clearing Business Career.
5) Exporter - Importer willing to develop insight into cases related to Logistics, Shipping, Forwarding or Customs clearing.
6) For them who want to develop detailed insight in Custom Clearing Education.
7) Importer – Exporter who want to know about their legal rights and obligations to their services providers.
8) Shipping, Logistics, NVOCC, Forwarding, Customs Clearing etc service providers who want to know their rights and obligations to their clients.
Let us explore and go deep into the sea to get the pearls.
This is an unique case in which a manufacturer exporter was forced to stop his exports and even manufacturing factory due to one wrong step taken by the cargo handling agency / air line.
Exporter from Delhi got an order from Europen Importer in year 2000 of USD 55,000/- on payment terms of irrevocable and confirm but usance L/C of 60 days from date of presentation of documents.
Exporter dispatched the goods in 3 consignments by through Lufthansa Cargo after paying necessary freight charges to the line.
Post shipment documents were submitted to the negotiating bank. Negotiating Bank acquired lien on goods. Sale proceeds were credited to account of the exporter by Negotiating Bank.
Thereafter exporter through Negotiating Bank sent invoice, Packing List, original Air Way Bill, Certificate of Origin, Bill of Exchange etc documents (i.e. bill) in respect of all three consignments to Issuing Bank for being presented to their buyer Europe for acceptance.
After that the exporter receive a letter from buyer / Importer in Europe alleging that goods supplied by exporter were defective & therefore buyer demanded a discount in price.
It means that buyer got the custody of goods though in normal course Negotiating Bank should have received acceptance advice (AA) from Issuing Bank regarding acceptance of documents by buyer for collection of said goods by buyer from Lufthansa.
On the same day, exporter contacted to Negotiating Bank informing that buyer was in possession of goods & had refused to make payment to complainant & therefore requested the Negotiating Bank to intervene in the matter.
Negotiating Bank sent a message to Issuing Bank enquiring dates of Bill of Exchange, which was replied by Issuing Bnak confirming that all docs in respect of said goods are still lying with them as buyer has not accepted Bill of Exchange.
Exporter immediately rushed to Customers Relation Department of Lufthansa enquiring about the status of consignment. Lufthansa alleged that Luthansa’s Vienna office has received two fax messages from exporter’s Germany (European) Division authorizing Lufthansa to deliver the first two consignments to the buyer. Lufthansa also informed the exporter that third consignment was delivered to one agent Gebruder Weiss without informing the grounds for delivering the same.
It is the case of complainant / exporter that they did not have any Germany (European) Division though they had their agents named Gentle Germany (European) Division in Germany, who occasionally procure business in the international markets for complainant / exporter. This agent is nowhere related to the current transaction.
It is further the case of complainant / exporter that Opponent - Lufthansa released goods without obtaining any Bank Release Order (BRO) or any Bank Guarantee (BG) from Issuing Bank (through importer) against delivery of goods.
After that, complainant / exporter negotiated with the said buyer to salvage the claim & tried to recover value of the said goods but buyer insisted for a discount as the goods were alleged to be defective.
A lot of correspondence was exchanged between complainant exporter & opponent Lufthansa.
Meanwhile, Negotiating Bank who had a lien on said goods, addressed to Lufthansa and informed that Issuing Bank by its email has confirmed that Issuing Bank was still is holding all documents. Therefore, Negotiating Bank sought an explanation from opponent - Lufthansa as to why the said goods were delivered to the said buyer.
In the meanwhile, Bill of Exchange discounted by exporter with Negotiating Bank had become overdue for payment as the buyer had failed & neglected to accept the same on presentation. Therefore, the exporter had no other option but to accept the offer of buyer / importer of 32% discount in total invoice of 55,000 USD.
By their letter, exporter registered a claim with Opponent - Lufthansa for payment of entire outstanding amount of USD 55,000 as the goods were unauthorized delivered to buyer by the Lufthansa.
Due to non-payment of said dues by importer or Lufthansa, Negotiating Bank reversed amount received by complainant through credit facilities enjoyed by complainant with Negotiating Bank. Negotiating Bank also froze credit limit enjoyed by complainant / exporter. Therefore, eventually manufacturer exporter / complainant was forced to close their production & business operations.
The complainant therefore prays as follows:-
That this Hon’ble Court be pleased to order & direct the respondent Lufthansa to pay
- Full amount with further interest on full amount @ rate of 25% p.a. from 10/5/2000 till payment realization; &
- Rs.1 crore with further interest of 25% p.a. from the dt of filing of complaint till payment &/or realization.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.
Please contact on 7069883001 to read this case.