- 20 Marks
ITF – APR 2024 – L3 – Q6 – Assistance for Clearing Imported Equipment without Bill of Lading
Explain how the bank can assist in clearing imported equipment from the port when bills of lading are missing and the precautions to take.
Question
- Sam Cheff Mining Ltd is your customer dealing in Mineral Prospecting in the Northern Region of Ghana. The company’s team of engineers has identified a particular site along the TamaleBolgatanga Highway which they believe could have huge deposit of Gold. When the feasibility and sample details of Analysis Reports were submitted to the Board of Directors, they quickly took a decision to allow the company to import a state-of-the-art equipment to enable full scale drilling start as soon as possible.
The Managing Director called on you today to discuss issues affecting the company’s business. He tells you that the equipment imported has arrived but is still at the Tema Harbour, unable to be cleared because the Bills of Lading involved have gone missing. As a result, the equipment has started incurring demurrage charges at the port, while at the same time, the company is incurring unnecessary labour cost due to idle time, as the workers are waiting for these machines to work with.
The Managing Director is visibly worried as he sits at the oval desk in your office, wondering what could be done to protect the company from these costs.
REQUIRED
Explain how the bank can help Sam Cheff Mining Ltd to clear the equipment from the port and the precautions the bank should take. [20 Marks]
Find Related Questions by Tags, levels, etc.
- Tags: demurrage, Indemnity, missing bill of lading, port clearance, precautions, shipping guarantee
- Level: Level 3
- Topic: Risk inherent in granting periods of credit
- Series: APR 2024
