Legal Issues On Bill Of Lading In International Financial Settlement Of Letter Of Credit

Concerning with international financial settlement, letter of credit is the usual way ,and bill of lading is the most important documents. So it is very important to make it clear about the legal relationship between code of letter of credit settlement and marine law.The independent policy and fraudulent exception policy are two basic ones about letter credit settlement. And bill of lading is subject to marine law. So how to balance them, which is serious to exporter, to deal with the potential risk.There are a lot of problems about above-mentioned issue, but two terms are key entry: the title of cargo and out of hand of bill of lading.The above includes as follows: the options and decisions of Shipper, the audits of terms of letter of credit about consignee, i.e. straight bill of lading, anti-dated bill of lading and questions of fraudulent, advanced bill of lading, release cargo without bill of lading.From the view of exporter, some explanation and analysis of basic legal issues were given, so that exporters can deal with all kinds of difficult, avoiding risks in the process of L/C financial settlement. The following conclusions were made: the premise and frame for financial settlement are two basis principles of L/C. and maritime law is the one to control risks; the safety of bill of lading is the premise for the audit and confirmation of terms of L/C; the temporarily out of control of bill of lading is the emphasis of L/C settlement, which have to be cautious to deal with the problems when the bill of lading is be transferred in the process of L/C financial settlement.