Special Endorsement

Special Endorsement refers to a method of endorsement where the holder of a negotiable instrument or bill of lading, when endorsing, explicitly designates the name of the endorsee (transferee). In foreign trade, it is commonly used for the transfer of transferable documents such as bills of lading, bills of exchange, and promissory notes. The specific operation is: the endorser signs on the back of the document and writes words such as 'Deliver to XXX Company' or 'Pay to XXX Company', then signs. Usage scenarios include: transfer of bills of lading under letter of credit settlement, circulation of documents under documentary collection, and discounting of instruments in trade finance. Precautions: After special endorsement, only the designated endorsee can take delivery of goods or receive payment; if further transfer is required, the endorsee must endorse again; unlike blank endorsement, which only bears a signature without designating a transferee, special endorsement is safer but less flexible; unlike order endorsement, which is made to 'order', special endorsement directly designates a specific entity. Foreign trade practitioners must ensure that the chain of endorsement is continuous and accurate to avoid disputes over title to goods or bank refusal due to endorsement errors.