Queries

[ok12]

Hi experts,

I have some queries pertaining to the following articles:

1. UCP600 Article 14(l) - Can interpret it as transport documents is allowable to be issued by any parties inclusives of beneficiary?

2. UCP600 Article 20(c) - L/C clearly stated transhipment is prohibited and B/L presented also clearly indicated that transhipment incurred between port of loading and port of discharge and goods are shipped in containerised. Can we quote it as discrepancy?

3. ISBP Article 49 - Under which circumstances should the draft be endorsed?

4. ISBP Article 13 - If a B/L only showing an dated on board notation without the issue date, is it acceptable?

Regards

[iLC]

1. UCP600 Article 14(l) - Can interpret it as transport documents is allowable to be issued by any parties inclusives of beneficiary?

the sub article only allows the transport document to be issued by any party, but not signed. thus a transport document may be issued on the letter head of the beneficiary but must be signed by the carrier or agent. a beneficiary may act as a carrier or agent. hummm.. how about beneficiary acting as a master?

2. UCP600 Article 20(c) - L/C clearly stated transhipment is prohibited and B/L presented also clearly indicated that transhipment incurred between port of loading and port of discharge and goods are shipped in containerised. Can we quote it as discrepancy?

unless the entire sub article is excluded, its not a discrepancy.

4. ISBP Article 13 - If a B/L only showing an dated on board notation without the issue date, is it acceptable?

yes. ICC opinion 634

From the example of the bill of lading presented under this request for Opinion, there is no field for a place and/or date of issue. There is only a field labeled "Shipped on Board Date". The structure of a transport document is not governed by the UCP; this is for each shipping company or agent to determine. From the details relating to this particular bill of lading, there is no requirement for a date of issuance; therefore, completion of the shipped on board date serves two purposes: (1) the date of issuance of the document and (2) the date that the goods were shipped on board.
A document issued in the format provided is not discrepant if it does not contain a date of issuance. The shipped on board date would constitute the date of the bill of lading for the purpose of ISBP publication 681 paragraph 13.

[ok12]

Hi iLC,

Good one. Thanks for the reply. May allow me to ask further.

Point no. 2 - Agreed that alot of comments given where said unless the entire sub article is exclude in LC terms. But why?

Point no. 3 - Any comments?

Point no. 4 - In the event if B/L has an issue date field but not being filled up? Can it be quoted as discrepancy then?

Hope you are not feel bore with my questions.

Regards

[jmitra]

A draft has three parties; drawer, drawee and payee. when a draft is endorsed, the payee changes. considering this basic theory, under a letter of credit initially a beneficiary is the drawer and payee of the draft while issuing bank or nominated bank is the drawee. now say a document is presented at the counter of the nominated bank for negotiation. in this case issuing bank is the drawee. since the payment is to be made to the nominated bank, the beneficiary needs to endorse the draft to the order of nominated bank. thus nominated bank will become the payee.

[jim]

dear sir,

if the draft is drawn on the nominated bank who has honored a presentation, it is necessary to endorse the draft?

[rockets]

Yes

[cristiand969]

if the draft is drawn on the nominated bank who has honored a presentation, it is necessary to endorse the draft?

and

Yes
Yes

.
The draft cannot be drawn on the nominated bank unless the credit is available by acceptance.
If credit available by payment there is no draft required
If the credit is available by negotiation the draft is drawn on a bank OTHER than the nominated bank (art.2 of UCP600)