SHIPPING

GUARANTEES AND
ADVANCED
DOCUMENTS
SANGEETHA SAMARAWICKREMA
 We issue Shipping
Guarantees and Advanced
Doc ments in the Absence of
Documents
Original
g Shipping
pp g Documents.
( Documents which are
received by the Issuing bank/
Collecting Bank )
DOCUMENTS REMEDIES
AVAILABLE AVAILABLE
Copy of B/L + Copy of SHIPPING G’TEE
I
Invoice
i
One original B/L ( 1/3 ADVANCED
B/L ) + Invoice DOCUMENTS
Copy of Air Way Bill / ADVANCED
Consignee’s
Consignee s copy of Air DOCUMENTS
Way Bill + Invoice
 Documents required to
issue,
SHIPPING GUARANTEE ADVANCED
DOCUMENTS
Bank Shipping Guarantee Bank Advance Document
Indemnity Form Indemnity Form
L
Locall Shi
Shipping
i A
Agent’s
t’ 3 copies
i off IInvoices
i
Indemnity Form
3 copies of Invoices 2 copies of AWB
2 Copies of B/L Original B/L
Risks we face as a Bank
when issuing Shipping
Guarantee OR Advanced
Documents…..
 If you do not receive original
D
Documents t llater,
t to t effect
ff t Payment
P t
and close the Transaction.
 If Beneficiary / Drawer fails to submit
the original B/L for purpose of
cancelling the Shipping G’tee.
 If we receive original documents for
a different
a)) Invoice value ( Higher
g value )
b) Tenor of the Bill ( D/A --- DP )
 If p
presented collection DA documents
for which Shipping G’tee / Advance
Docs have been released under Nil
margin after become matured f or
p y
payment.
 If combine with an uncleared Shipping
documents
docu e sa anddppresented
ese ed as o one
e L/C
/C
negotiation or Collection bill.
 If local
l l Shi
Shipping
i A Agent’s
t’ IIndemnity
d it
form is
a) Addressed to their parent company
domisiled in some other country.
b) Govern by a foreign Jurisdiction
c) Incorrect format or does not refer the
relevant nature of transaction.

 If the shipment has been effected 14

daysy beyond
y the shipment
p date stated
in the Credit.
 If Invoice value exceeds the L/C value
or unutilized value
value.
PROCEDURE OF
SHIPPING
GUARANTEE
APPLICANT/ ISSUING BK/ ISSUANCE OF
DRAWEE COPIES OF COLLECTING APPROVAL SHIPPING G’TEE
SHIPPING DOCS BK WITH/ WITHOUT
MARGIN

SUBMITS OF
SHIPPING
G’TEE

SRI LANKA APPLICAN LOCAL SHIPPING

CUSTOMS T/DRAWEE ISSUE AGENT
CUSDEC+DELIVER
CUSDEC DELIVER
Y DELIVERY
ORDER+INVOICES ORDER

CLEARANCE OF CARGO
CANCELLATION OF
SHIPPING
GUARANTEE
BENEFICIAR ISSSUING APPLICANT/
Y/ ORIGINAL BK/COLLECTING ORIGINAL DRAWEE
DRAWER SHIPPING BK SHIPPING
DOCUMENTS DOCUMENTS

ORIGINAL
B/L

ISSUING BK/ APPLICANT/ LOCAL

COLLECTING BK DRAWEE SHIPPING
SUBMIT TO SURRENDE
R AGENT
CANCEL ORIGINAL
SHIP. G’TEE/ ORG. B/L &
INDEMNITY CANCEL
SHIP. G’TEE