Application of Article 14J

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DarkKnight
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Application of Article 14J

Post by DarkKnight » Wed Jul 13, 2022 2:09 am

Dear Experts,

We, as the beneficiary, recently changed our address with all our documents including the BL shipper address reflecting our new address, however, all our LC's are established showing the old address.

I know article 14J is applicable if the address of the beneficiary and applicant on documents are not as per LC.

If the LC is explicitly stating all docs to show the name and address of the beneficiary as per the old address, can Article 14J be applied here Or LC supersedes the Ucp 600 14J.

Seeking opinions justifications to make me come out of this confusion :)

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picant
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Re: Application of Article 14J

Post by picant » Wed Jul 13, 2022 10:56 am

Hi Pal,

Art 1 UCP 600 states that "rules.....binding on all partiies thereto unless expressly modifed or excluded by the credit"
IMHO, the credit should contain the sentence "art 14 j excluded" but the content may be interpreted as a modification of such article, causing probably dispute by banks. To avoid it, it is better to quote new and old address, where necessary.
Other comments appreciated
Ciao

DarkKnight
Posts: 22
Joined: Tue May 22, 2012 10:29 am
First Name: Saif
Last Name: Ali
Organization: NBK
Filter: Two Plus Two =: 4
Location: Kuwait

Re: Application of Article 14J

Post by DarkKnight » Wed Jul 13, 2022 1:56 pm

Dear Picant,

Thank you for your comments.

Does this mean that if Article 14J is not excluded there are chances of disputing the address details using Article 14J?

I keep hearing the statement "LC supersedes the UCP 600", if it is so, then why was UCP 600 created in the first instance?

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picant
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Re: Application of Article 14J

Post by picant » Wed Jul 13, 2022 2:24 pm

Hi Pal,
the wording of the documentary credit is on the first level, UCP , ISBP and opinion on the second one . However I remember the case of" Transhipment prohibited but shipment effected by container", the result was that to avoid transhipment by container the UCP Article should have been excluded.One more question: reason to indicate the old address?.
In any case, if I have to prepare documents I try to follow the LC and add more than required, but if unfortunately documents have been already in the hands of confirming/issuing bank, in case of dicrepancy I will dispute and invoke Preliminary Consideration ISBP 745 para v, referring to ambiguity.
Ciao

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