I previously answered a question from a reader “Can there be multiple notify party in a bill of lading..??“..
There are a few other questions as below from another interested reader.. 🙂
1) The role and responsibility of multiple notify parties
2) How are they different or similar
3) What is the reason for multiple notify parties
4) Are there different restrictions for this in different countries
Whether it is one or multiple notify parties, the main role and responsibility of a notify party stays the same and that is to receive notification about the arrival of the cargo covered in the bill of lading.. A Notify Party is merely someone that needs to be notified about the arrival of the cargo covered in the bill of lading ..
Multiple notify parties are similar only in the role and responsibility.. There maybe different reasons as to why they have been shown as notify party..
Some of the entities that are commonly shown as Notify Parties in the bill of lading are :
- Actual receiver of the cargo
- Freight Forwarder or Clearing Agent of the buyer/receiver
- Trader or Indenting agent
- Buyer’s bank that issues the L/C (Issuing Bank)
If multiple notify parties are chosen, say for example
- Consignee : To order of XYZ Bank
- Notify 1 : Actual receiver
- Notify 2 : Clearing agent
In this example, the beneficiary of the L/C (normally the receiver of the cargo) might have chosen to show both themselves and their clearing agent as notify parties so that both have the information about the arrival of the cargo and can organize their documentation, funds etc in readiness to receive the cargo..
- Consignee : ABC Customer
- Notify 1 : Freight Forwarder of ABC Customer
- Notify 2 : Indenting Agent
In this example, the receiver might have chosen to show their Freight Forwarder and their Indenting agent as notify parties so that the Forwarder can arrange to secure the release of the cargo and the Indenting agent that brokered the deal/shipment knows that the shipment is being delivered as per the deal..
In terms of restrictions in different countries, since the notify party does not have any legal obligation or contract in the shipment process in terms of the bill of lading or customs, port and other authorities, there should not be any specific restrictions related to showing multiple notify parties on the bill of lading..
However, there maybe some countries where multiple notify parties are not allowed, and if anyone has come across this restriction in your country, please do comment..
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