Storage of Goods
The bank may act as in intermediary to deliver the goods from the exporter to the importer. In the process, it may need to store the goods at the importer's expense. This is so, if agreement was concluded with the exporter and after the bank had paid the price of the goods and sent the papers to the importer on the arrival of the goods. Should the importer delay taking delivery of the goods, the bank stores them in a safe place at the expense of the importer. The bank may carry out the storage at the expense of the exporter, if the goods were sent through the bank without prior contract and agreement with an importer. In this case, the bank approaches an importer with the documentation. If a buyer is not found within the country that is importing the goods, the storage expenses shall be debited to the account of the exporter.
It is permissible for the bank to charge a fee for storing the goods in the two cases discussed above. This is so when it is done at the request of either the exporter or the importer of the goods. This is also true if the bank has included such a condition in the contract, such as sale contract, albeit it is implicit. Otherwise, no compensation shall be due.
Share this article