JBT Hails New ‘Low-Cost’ Memo Filing Service

RAPAPORT… The Jewelers Board of Trade (JBT) has launched an automated service enabling select members to protect their memo goods at a fraction of the usual price.

The new offering helps businesses carry out a Uniform Commercial Code (UCC) filing — a legal document declaring that goods on consignment to a customer are the property of the supplier. This lets the company recover the merchandise more easily should the consignee go bankrupt while in possession of the items.

“The current process for filing a UCC is too time-intensive and expensive,” JBT president Erich Jacobs said in a statement Friday. “Our new program takes the pain and high cost out of the equation entirely, which ultimately makes this a no-brainer for our members.”

The JBT, which rates jewelers’ credit history and provides industry data, has long been advising members to file a UCC when supplying goods on memo. However, many jewelry businesses don’t do this because the process is cumbersome and legal costs are significant, the organization explained.

Starting this fall, companies with “enhanced” JBT membership will be able to execute the filing online through specialist firm CLAS Information Services. The process is quick, costs “less than half the fees charged by a lawyer,” and enables the UCC to be filed in 47 states, according to the JBT.

Image: Polished diamonds. (Shutterstock)