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hi ! all
should someone make me clear in case of l/c not show third party docs acceptable, which docs can issue by benef?

in this case I draw your attention to following articles:
ISBP 681
Expressions not defined in UCP 600
21) Expressions such as ....“third party documents acceptable” ..... should not be used as they are not
defined in UCP 600. If used in a credit, their meaning should be made apparent. If not,
they have the following meaning under international standard banking practice:
a) ...................
b)......................
c) “third party documents acceptable” – all documents, excluding drafts but
including invoices, may be issued by a party other than the beneficiary. If it is
the intention of the issuing bank that the transport or other documents may
show a shipper other than the beneficiary, the clause is not necessary because
it is already permitted by sub-article 14(k).
d) .......................

UCP 600
Article 14 Standard for Examination of Documents
k. The shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit.

great dear hassan. you have rightly quoted the text. i would just like to clarify it.

first of all, there is no direct correlation between a "third party document acceptable" clause and "documents to be issued by the beneficiary". in fact third party document acceptable means that those documents which are to be issued by the beneficiary can be issued by someone else. however that would exclude draft.

which document can be issued by the beneficiary depends on the LC terms. a general rule is -

1. if LC is silent about the issuing authority, it can be issued by anybody
2. if LC says a document to be issued by competent authority (or similar wording), it can be issued by anybody except the beneficiary
3. if the LC is specific about the issuer, then the document must be issued by that named issuer.

this is a general rule may get complicated if the document in question is a certificate of origin or a transport document.

again back to third part document acceptable; there is actually no need to include this clause if your intention is to get the cargo shipped by someone else (may be the ultimate supplier). UCP already allows any party to be shown as the shipper.

Dear ilc,
thank you for well clarifing the case. I think there is a slight mistake in clarification. you have mentioned :
........... in fact third party document acceptable means that those documents which are to be issued by the beneficiary can be issued by someone else. however that would exclude invoice and draft..........
considering following text in ISBP 681 :
QUOTE c) “third party documents acceptable” – all documents, excluding drafts but
including invoices, may be issued by a party other than the beneficiary.UNQUOTE
in such case even the invoice can be issued by a party other than beneficiary.
thank you,

Great hassan! Thanks :oops:

Hassan, I guess you have covered the subject in question in full,

thanks, 8-)
ybattia