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Dear friends,
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With the request of applicant, we sometimes issue LC with term that original transport documents will accompany the goods and copies will be presented to bank. As per UCP 600 14 and ISBP 20, We know copy of transport documents are not considered as transport documents and UCP600 articles 19-25 not applied. As a document examiner, we change the LC term slightly and require one photocopy from original transport document to be presented to check the document accurately, i.e. signature, date, notations, corrections etc. If we see that the photocopy document not complying according to articles 19-25, can we raise discrepancy? Or by letting original not being presented to bank, do we renounce checking this document?

Regards

dear navi,

what are the exact changes that you make in your credit terms? as per UCP, copy of transport document is not a transport document and must not be examined under the transport article. if you want to examine the photocopy of the transport document under the UCP transport article, you should enter a clause to this effect in the original LC

Dear shahriar,
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By the changes in LC, I mean only requesting photocopy taken from the original document. But your post inspired me. Maybe, I will solve the problem by excluding articles UCP 600 14c and ISBP paragraph 20 and adding a clause that photocopy of transport document should comply relevant article.
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Thanks & regards

personally i always try to avoid copy of transport document as it may create severe problem. if at all require, i simply put a clause that the photocopy must be certified by the carrier as true copy and will be examined under the relevant transport article. the clause is not simple though. also need to go through some modification., but as i have mentioned earlier, it involve risk for the issuing bank. simple theory is never issue a shipping guarantee if the credit calls for a photocopy of bill of lading.

Hi Pals,

every l/c represents a risk for the bank, if it has a control on the goods having in hands bill of lading or other document of title, the risk is minor untill the documents are in possess of applicant.But a bank can issue l/c more risky, i.e. Truck Waybill CMR or AWB consigned to applicant, etc. In some case it is possible to issue an L/C requesting copy of transport documents, because the goods have been already delivered and the documents presented are only proof of that. In this case the credit facility granted is in blank, not funded.
Other comments appreciated
Ciao