description of the goods

[hull]

Hey!

Is it mandatory to show the description of the goods on the bill of lading or other transport document?

[silver]

Dear Hull

According to Querry 251 (Collected Opinions 1995-2001 ICC banking commission), unless the credit states otherwise, there is no requirement that a description of goods (full of in general terms) must appear on all document (ofcouse including transporation docs). However, a bank requires to see some form of "linkage" between the docs presented and/or the letter credit terms. A goods description, in full or general terms would be one mean of achieving this.

Regards,

[loankim]

Hi Silver,
I also read Querry 251 after receiving a notice from the issuing bank basing on that to refuse our docs. But they only deduct the discrepancy fee and not refuse the goods, if not we will bring this matter to court because we believe that we are right and "linkage" between the docs presented doesn't persuade us to agree with them. We also have got the comments of famous specialist- Mr Gary Collyer for this matter:
"It must be appreciated that there are some opinions given under UCP 500, and published by ICC, that will equally apply under UCP 600 and others that will not. The opinion, 251, was one that I did not agree with at the time and still do not. But, the majority of ICC national committees voted at the time for that opinion to be given. My view has and always will be that a bank can only refuse on the basis of a document not complying to the credit or the UCP. If a document complies to the credit and the UCP but does not have linkage to other documents or the credit, there are no grounds for refusal. If there is to be linkage between documents then this should be a condition stated in the credit, with the data that is required to appear on each document.

When we revised the UCP 500 there were a number of countries looking for UCP 600 to include reference to linkage and the requirement for documents to have data that links them together. The drafting group resisted this and there is no reference in UCP 600 to that effect. In the ICC publication "Commentary on UCP 600", at page 65, it is stated "UCP 600 does not refer to, require or imply that linkage is necessary between or among documents".
The opinion 251, given under UCP 500, is not applicable under UCP 600. "

Hoping that we will meet at common view !
Rgds,

[jmitra]

my first question is what is the extent of your "description"? do you mean in detail or any short of general description. if you are taking about detail, then its not must in UCP600. but the transport document must show some description. UCP 600 allows description of goods in general terms but dont allow to omit them entirely

[Navi]

UCP600 14e, states that "in documents other than commercial invoice, description of goods, if stated, may be in general terms..."

From this article I understand that it is not an obligatory to state description of goods on other documents...

[iLC]

dear friends,

its not always wise to look only into UCP for every answer when you want the correct one. here is some relevant quote from hague visby rule

3. After receiving the goods into his charge the carrier or the master or agent of the carrier shall, on demand of the shipper, issue to the shipper a bill of lading showing among other things:

(a) The leading marks necessary for identification of the goods as the same are furnished in writing by the shipper before the loading of such goods starts, provided such marks are stamped or otherwise shown clearly upon the goods if uncovered, or on the cases or coverings in which such goods are contained, in such a manner as should ordinarily remain legible until the end of the voyage.

(b) Either the number of packages or pieces, or the quantity, or weight, as the case may be, as furnished in writing by the shipper.

(c) The apparent order and condition of the goods. Provided that no carrier, master or agent of the carrier shall be bound to state or show in the bill of lading any marks, number, quantity or weight which he has reasonable ground for suspecting not accurately to represent the goods actually received, or which he has had no reasonable means of checking.

5 (a) Unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading, neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with the goods in an amount exceeding the equivalent of 666.67 units of account per package or unit or units of account per kilo of gross weight of the goods lost or damaged, whichever is the higher.

[dholat]

thanks for the quote ilc. but i could not find anything inside that makes the description of the good on the bill of lading compulsory

[loankim]

Hi all,
Commentary on UCP 600/ pages 65 says that " ....By using the words "if stated", it also emphasizes that there is no need for a goods description to appear on every document....."
The complying presentation on artice 2,the international standard banking practice as seen in this definition is wider than the pubplication and there are a number of “practices” that are carried out by banks globally that are not encompassed within the ISBP pubplication. So that, i don't think that iLC's opinion is not good if you want to have a correct one. But there are practices that will exist in trade transactions between two countries that are considered to be international as goods and payment flow across borders, that will not find their way into the ISBP or any valuable resources as other countries do not have similar transactions. Because yr L/C applies UCP 600, you have to consider that the UCP is full of international standard banking practices in article 14 that are not in the ISBP or other resources .
.
Have a nice day !:-)