Blank Endorsement refers to the holder of a negotiable instrument (such as a bill of exchange, bill of lading, warehouse receipt, etc.) signing on the back of the instrument without designating an endorsee, i.e., merely signing one's own name without specifying the transferee's name. This type of endorsement makes the instrument a 'bearer instrument,' and any person holding the instrument may claim rights. In foreign trade, blank endorsement is commonly seen in the transfer of bills of lading: the shipper (or consignor) endorses the bill of lading in blank on the back, then delivers it to the bank or buyer, facilitating the circulation and transfer of the bill of lading in the market. Usage scenarios include letter of credit settlement, documentary collection, and resale of goods. Precautions: Blank endorsement carries higher risk because if lost, the finder can take delivery of the goods based on the endorsement; therefore, it is often used in conjunction with 'special endorsement' or 'order endorsement.' The difference from 'special endorsement' is that special endorsement designates an endorsee, and only that designated person can take delivery of the goods; whereas blank endorsement requires no designation, and the bearer can take delivery. The difference from 'order endorsement' is that order endorsement requires the words 'to order' to be written. Foreign trade practitioners should use blank endorsement with caution to ensure the security of documents.
📝 Examples
1. In letter of credit settlement, the seller makes the ocean bill of lading a blank endorsement, then submits it along with other documents to the bank, which then forwards them to the buyer, who takes delivery of the goods with this bill of lading. (Note: Blank endorsement facilitates the circulation of the bill of lading between the bank and the buyer, but the risk of loss must be guarded against.)
2. Exporter Company A resells a batch of goods to Company B. Company A endorses the bill of lading in blank on the back and directly delivers it to Company B, who can then take delivery of the goods at the destination port with the bill of lading. (Note: Blank endorsement enables rapid transfer of the bill of lading and is suitable for intermediary transactions.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
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