Article 10

Documents vs. Goods / Services / Performances

a.    Goods should be despatched directly to the address of a bank or consigned to or to the order of a bank without prior agreement on the part of that bank.

Nevertheless, in the event that goods are despatched directly to the address of a bank or consigned to or to the order of a bank for release to a drawee against payment or acceptance or upon other terms and conditions without prior agreement on the part of that bank, such bank shall have no obligation to take delivery of the goods, which remain at the risk and responsibility of the party despatching the goods.

b.    Banks have no obligation to take any action in respect of the goods to which a documentary collection relates, including storage and insurance of the goods even when specific instructions are given to do so. Banks will only take such action if, when, and to the extent that they agree to do so in each case. Notwithstanding the provisions of Sub-ARTICLE 1 c this rule applies even in the absence of any specific advice to this effect by the collecting bank.

c.    Nevertheless, in the case that banks take action for the protection of the goods, whether instructed or not, they assume no liability or responsibility with regard to the fate and/or conditions of the goods and/or for any acts and/or omissions on the part of any third parties entrusted with the custody and/or protection of the goods. However, the collecting bank must advise without delay the bank from which the collection instruction was received of any such action taken.

d.    Any charges and/or expenses incurred by banks in connection with any action taken to protect the goods will be for the account of the party from whom they received the collection.

e.1. Notwithstanding the provisions of sub-article 10 a. where the goods are consigned to or to the order of the collecting bank and the drawee has honoured the collection by payment, acceptance or other terms and conditions and the collecting bank arranges for the release of the goods, remitting bank shall be deemed to have authorised the collecting bank to do so.

    2. Where a collecting bank on the instructions of the remitting bank or in terms of sub-article 10 e (1.) above arranges for the release of the goods, the remitting bank shall indemnify such collecting bank for all damages and expenses incurred.