Best Trade Solution

Hi,

As per ISBP # 3 " .....a credit requiring presentation of a bill of lading and containing a prohibition against transhipment will, in most cases, have to exclude UCP 600 sub-article 20(c) to make the prohibition against transhipment effective."
So what is normally done is while issuing a credit, if Transhipment is not meant to be allowed, L/C states " Article 20(c) is not applicable" to make "prohibition of transhipment" effective.

However, Article 20(c) says "A bill of lading indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barge as evidenced by the bill of lading."
Question : If transhipment is prohibited by non-applicability of Article 20( c ) and “prohibition” itself is negated “….if the goods have been shipped in a container, trailer or LASH barge as evidenced by the bill of lading." , then how will this work?
It appears that making Article 20( c) specifically non applicable does not actually prohibit transhipment completely - it remains allowed for containers, trailer or LASH Barge. Is this understanding correct? Please help!

The ISBP para 3 articulates the strength of art 1 of UCP600 which will prevail over the other articles by stating:
'They are binding on all parties thereto unless expressly modified or excluded by the credit"
Consequently , the exclusion of art 20(c) will be effective and binding on all parties to the credit and a bill of lading showing shipment in container and transhipment shall be treated as a discrepancy.
Good luck!

Thanks a lot!