QUERY

A documentary credit required the presentation of a copy of a bill of lading without any further condition. The issuing bank refused the documents citing the discrepancy:

b/l is signed by a forwarder i/o carrier, master or their agent.

It is seen from the face of the bill of lading that it is signed by a freight forwarder in the capacity of "forwarder" instead of the carrier, master or their named agent.

The beneficiary rejected the refusal of the issuing bank by referring to ISBP 745 paragraph A6:

When a credit requires the presentation of a copy of a transport document covered by UCP 600 articles 19-25, the relevant article is not applicable, as these articles only apply to original transport documents. A copy of a transport document is to be examined only to the extent expressly stated in the credit, otherwise according to UCP 600 sub article 14 (f).

The issuing bank did not accept the beneficiary’s rejection and stated:

It is not required for a copy of a transport document to be signed but if it is signed it should be in accordance with sub-art. 20 of UCP 600.

We would like to have an official opinion of the ICC Banking Commission as to the below questions;

1. Should the signing of the copy of the bill of lading in the capacity of "forwarder" make the presentation discrepant?

2. Whether it is a discrepancy if the copy of a transport document indicates that the goods are or will be loaded on deck or indicates a clause or notation expressly declaring a defective condition of the goods or their packaging?

ANALYSIS

UCP 600 sub-article 20 (a) (i) requires a bill of lading

to indicate the name of the carrier and be signed by:

• the carrier or a named agent for or on behalf of the carrier, or

• the master or a named agent for or on behalf of the master.

UCP 600 sub-article 20 (a) (iv) also states:

be the sole original bill of lading or, if issued in more than one original, be the full set as indicated on the bill of lading.

Requirements in UCP 600 article 20 only apply when a credit requires the presentation of at least one original bill of lading. A requirement for the presentation of a copy of a bill of lading would fall under UCP 600 sub-article 14 (f), which states:

If a credit requires presentation of a document other than a transport document, insurance document or commercial invoice, without stipulating by whom the document is to be issued or its data content, banks will accept the document as presented if its content appears to fulfil the function of the required document and otherwise complies with sub-article 14 (d).

This is clarified in ISBP 745 paragraph A6 (a) which states:

When a credit requires the presentation of a copy of a transport document covered by UCP 600 articles 19-25, the relevant article is not applicable, as these articles only apply to original transport documents. A copy of a transport document is to be examined only to the extent expressly stated in the credit, otherwise according to UCP 600 sub-article 14 (f).

Unlike an original bill of lading, a copy of a bill of lading does not serve the function of a negotiable document, which has to be surrendered in exchange for the goods. The function of a copy of a bill of lading is to provide information on the shipment. Therefore, unless a credit, which calls for a copy of bill of lading, also specifies the manner in which the copy is to be signed, the signature need not comply with the requirements of UCP 600 sub-article 20 (a) (i). A signature need not even appear at all on a copy of a bill of lading.

A copy of a bill of lading is not considered a transport document for the purpose of examination of documents under UCP. Therefore, requirements of UCP 600 sub-article 26 (a) (loading of goods on deck) and article 27 (clean transport document) do not apply to a copy of a bill of lading.

CONCLUSION

A copy of a bill of lading, signed by a freight forwarder in its capacity as forwarder, without acting on behalf of the carrier, is not discrepant.

A copy of a bill of lading which indicates that the goods are or will be loaded on deck or includes a clause or notation expressly declaring a defective condition of the goods or their packaging is not discrepant.