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Dear Expert,

May I ask for your opinion of the following :

B/L at preprint field :

“Freight to be paid at”
input “Shanghai”

L/C port of loading is at shanghai.

L/C called for B/L marked freight prepaid.

I treat B/L is discrepant without marked “Freight prepaid”


Please comment.

Thank you for your assistance.

Regards,
ucp 800

Dear UCP800

I think its definetely discrepant as the B/L does not evidence that freight has actually been paid (as per LC requirements). The words 'freight to be paid shanghai' does not evidence payment.

Rgds,
Ljo

I am in full consonance with the reply by m/s LJO.

hi 800,
As per my knowledge place of loading is shanghai and the term freight to be paid shanghai so freight paid is not a discrepant.
As the word freight paid/to be paid will be used for shipping company weather to collect the freight charges or not, please inform me if i am wrong in this.

If credit calls for BL to evidence mark "freightprepaid", it has to be so. Conversely it will be a descrepancy.

Still open to opinion

Phani Krishna wrote:hi 800,
As per my knowledge place of loading is shanghai and the term freight to be paid shanghai so freight paid is not a discrepant.
As the word freight paid/to be paid will be used for shipping company weather to collect the freight charges or not, please inform me if i am wrong in this.

dear krishna,

where freight to be paid and when the freight to be paid is two different issue. when a credit calls for a bill of lading indicating freight prepaid, it means that the document has to indicate that the freight payment event has already occur. for example,

port of lading XXX and port of discharge YYY. if the credit calls for freight prepaid notation, then the following would be acceptable -

Freight to be paid at port YYY
[notation] Freight Prepaid [/notation]