Do I Need To Write Full Goods Descriptions In B/L, Certificate Of Origin

[Umadevi]

Hi,

I have few question related to the L/C i received:

1. Goods Desc
CFR ......

ABC BRAND,........ TOTAL 2595 AS FOLLOWS:

SR.DESCRIPTION QUANTITY UNIT PRICE TOTAL AMOUNT
1. ............. ......... .......... ..........

Beneficiary must certify so on the invoices

Do i need to write all this decsriptions in Bill Of Lading, Certificate Of Origin & Packing List ?

2. B/L made out to the shipper's order and endoresed to the order of the ABC Bank.
How do i write this in Bill Of LAding ?

Kindly assist me asap..

Thanks.

[ucp800]

QUERY 1
When L/C specifically required “Beneficiary must certify so on the invoices”
Complete goods description as per L/C 45A must be shown on invoice,

Other than this case, generally, the following should be applied on invoice:

UCP 600 article 18(c) reads:
The description of the goods, services or performance in a commercial invoice must correspond with that appearing in the credit.
ISBP 745 paragraph C3 reads
The description of the goods, services or performance shown on the invoice is to correspond with the description shown in the credit. There is no requirement for a mirror image. For example, details of the goods may be stated in a number of areas within the invoice which, when read together, represent a description of the goods corresponding to that in the credit.
So technically all the goods description information must be in the invoice – someway or the other.
It is a requirement of UCP 600 sub-article 18 (c) that a description of the goods, services or performance appearing in an invoice is to correspond with that shown in the credit.
ICC Opinion R584 (TA564rev) indicates that there is no requirement for a mirror image.
The description of the goods, services or performance need not be restricted to one area of an invoice. Provided that the data collectively corresponds with that in the credit, the description will comply.

Referring B/L, the following Mr. E case (for your reference) and also ICC opinion R729 should be a guidance


B/L – not showing goods description,
R729
QUESTION

Quote
A bill of lading presented does not show description of goods but only related LC number.
Is it ok?
Regards,
Mr. E


ANSWER
Whether a description of goods is required to appear on a bill of lading?
The following is ICC’s analysis and conclusion on a question similar to Mr. E’s case :
QUOTE
Official Opinion R729 / TA681rev
Analysis
It is general shipping practice that the carrier will not take responsibility for the description of goods shown on the bill of lading. Wording such as “said to contain”, “shippers load and count”, “particulars furnished by the shipper, carrier not responsible” or similar, are common features of bills of lading. The term and condition, “Which description the carrier has no reasonable means of checking and is not part of the BL”, is a similar form of wording.
Although sub-article 20 (a) (ii) includes the wording: “indicate that the goods have been shipped on board … “, this does not imply that a description of goods is to appear.
Conclusion
The UCP does not require a goods description to appear on any document other than the invoice (sub-article 14 (e) refers). However, it is transport industry practice that a form of description will appear, and that description should not conflict with the description in the credit. The wording quoted on the bill of lading i.e., “and is not part of the BL” is similar to terms quoted in article 26, i.e., ‘shipper’s load and count’ and “said by shipper to contain”.
UNQUOTE
In view of the above, the bill of lading in question is acceptable.

Referring Cert. of Origin :

Cert. of origin must show general goods description or any linkage with other documents etc.

Please refer the following ICC Opinion:


Quote

Subject: Document 470/TA.747rev

We kindly ask for your official opinion to the following query related to documents presented under a documentary credit issued subject to UCP 600.

The documentary credit calls for a “Certificate of Origin”. The credit does not stipulate by whom the document is to be issued or its data content.

Part of the presentation is a document (with no letterhead / header / footer) that (only) includes the following information:

Quote
We certify that the goods are of French origin.

Company AB
[Signature]

Unquote

Company AB is the beneficiary to the documentary credit.

The presentation is refused citing the following discrepancy:
“The certificate of origin shows no linkage to the LC or the transaction”.

We ask you kindly to advise if the discrepancy cited by the issuing bank is correct.

ANALYSIS

The credit did not specify any required data content in respect of the Certificate of Origin.

UCP 600 sub-article 14 (e) states: “n documents other than the commercial invoice, the description of the goods, services or performance, if stated, may be in general terms not conflicting with their description in the credit.” (emphasis added)

The use of “if stated” in sub-article 14 (e) does not require a description of goods to appear on every stipulated document. However, international standard banking practice for the completion and examination of a Certificate of Origin, as reflected in ISBP Publication 681 Paragraph 183, highlights a specific requirement - “[T]he certificate of origin must appear to relate to the invoiced goods. The goods description in the certificate of origin may be shown in general terms not in conflict with that stated in the credit or by any other reference indicating a relation to the goods in a required document.” (emphasis added)

There must be an indication of the goods to which the Certificate of Origin relates. This can be achieved in a number of ways, including:
- a goods description that corresponds to that stated in the credit;
- a goods description shown “in general terms” not conflicting with the description stated in the credit; or
- by any other reference indicating a relationship to the goods that are described in a stipulated document such as by reference to the invoice number, or data contained in the transport or delivery document presented under the credit such as a bill of lading number, air waybill number, etc.

The Certificate of Origin was presented with the words “We certify that the goods are of French origin” and bore the name of the beneficiary and a signature. There was no relationship to the invoiced goods and therefore the document does not satisfy the requirements of international standard banking practice by fulfilling the function of the document as required by UCP 600 sub-article 14 (f).

CONCLUSION

The discrepancy is valid.

unquote

In view of above ICC opinion,

When there is no reference to the Letter of Credit, Invoice and
the other required documents,
By referring to the ISBP*** Art. L4 states:
"A certificate of origin is to appear to relate to the invoiced goods,
for example, by:
a. goods description that corresponds to that in the credit or a
description shown in general terms not in conflict with the
goods description in the credit; or
b. referring to a goods description appearing in another
stipulated document or in a document that is attached to,
and forming an integral part of, the certificate of origin.”
In this case, there is no clear reference to the L/C and the other
documents.
Therefore, the documents could indeed be refused by the issuing bank.




Goods Description On Packing List?

A Packing List does not have to include any description of the goods, merely sufficient data to provide ‘linkage’ with other documents. (ICC Opinion R237)



Query 2

At the back of B/L bearing endorsement by the shipper as follows :


e.g. Shipper is DEF Co Ltd

the endorsement is :


Endorsed to the order of the ABC Bank.
DEF Co Ltd. (and Signed)