9 December 1998 TO ALL MEMBERS Dear Sirs BILLS OF LADING - DELIVERY OF CARGO STANDARD FORMS OF LETTERS OF INDEMNITY TO BE GIVEN IN RETURN FOR: (A)Delivering cargo without production of the original Bill of Lading (B)Delivering cargo at a port other than that stated in the Bill of Lading (C)Delivering cargo at a port other than that stated in the Bill of Lading and without production of the original Bill of Lading The International Group has undertaken a review of the wording of the letters of indemnity which have been recommended for use by their Members in circumstances where they are requested to give delivery of cargo without production of the original Bill of Lading or to give delivery at a port other than that stated in the Bill of Lading. In addition, consideration has been given to the need, on occasions, for a single letter of indemnity to cover both these situations. The three standard wordings now recommended by the International Group are attached to this Circular and a Circular in similar terms is being sent by all the other Clubs in the International Group. Apart from the creation of a wording to cover the eventuality of delivery of cargo at a port other than that stated in the Bill of Lading and without production of the original Bill of Lading, the intention behind the revisions has been, firstly, to provide Members with a clearer indication of the details which are required to be inserted when the forms are being completed, secondly, to make the wordings that much more acceptable to the indemnifier on account of clarifying the circumstances under which an indemnifier may be required to provide bail or security and in incorporating an express limitation of the liability of the indemnifier to 200% of the CIF value of the cargo, and thirdly, generally to clarify the wording. The Managers would remind Members that, unless the Committee otherwise determines in the exercise of its sole discretion, there is no cover in respect of liabilities arising out of the delivery of cargo without production of at least one original Bill of Lading and/or the delivery of cargo at a port other than that stated in the Bill of Lading and that, in such circumstances, Members are strongly advised to ensure they are fully satisfied with the financial standing of those who are to issue these indemnities. Yours faithfully A BILBROUGH & CO LTD (MANAGERS) 5:264 (A) STANDARD FORM LETTER OF INDEMNITY TO BE GIVEN IN RETURN FOR DELIVERING CARGO WITHOUT PRODUCTION OF THE ORIGINAL BILL OF LADING To:[insert name of Owners] the Owners of the [insert name of ship] Dear Sirs Ship:[insert name of ship] Voyage:[insert load/discharge port, as stated in the Bill of Lading] Cargo:[insert description of cargo] Bill(s) of Lading:[insert identification number, date, place of issue] The above cargo was shipped on the above vessel by [insert name of shipper] and consigned to [insert name of consignee or to whose order the Bill of Lading is made out, as appropriate] for delivery at the port of [insert name of discharge port stated in the Bill of Lading] but the Bills of Lading have not arrived and we, [insert name of party requesting delivery], hereby request you to give delivery of the said cargo to [insert name of party to whom delivery is to be made] without production of the original Bill(s) of Lading. In consideration of your complying with our above request, we hereby agree as follows: 1.To indemnify you, your servants and agents and to hold all of you harmless in