Age of vessel and Cargo Handling Gear and Tackle Cert.

SladjanaSkakic · Post by **SladjanaSkakic** » Mon Jun 01, 2009 1:00 am

I kindly ask for your opinions regarding the following issue:

L/C requirements:
+ Insurance covered locally with Arab Orient Insurance Company ... The beneficiary must inform full details of shipment including ... the name and age of vessel ...The copy of shipment advice to be presented ...
.
+ In case the vessel is between 20 to 25 years of age, the original documents must accompany copy of valid Cargo Handling Gear and Tackle Certificate issued by a classification society, certifying that the carrying vessel is well equipped with cargo handling gear and deck machineries and the same are in good working order and condition.

Documents presented:
+ Shipment advice stated age of vessel 29 years.
.
+ Copu of Cargo Handling Gear and Tackle Certificate not presented

Question:
+ Should you accept documents as presented OR refuse them due to age of vessel and
non-presentation of a copy of Handling Gear and Tackle Certificate?

I am looking forward your opinions.

[edited 6/1/2009 11:53:43 AM]
[edited 6/1/2009 11:54:46 AM]

SladjanaSkakic · Post by **SladjanaSkakic** » Tue Jun 02, 2009 1:00 am

Somebody who wants to make a comment?
Thanks in advance.

DanielD · Post by **DanielD** » Tue Jun 02, 2009 1:00 am

I think the documents are acceptable but, unfortunately, due to the fact that the credit is poorly issued.
Daniel

JudithAutié · Post by **JudithAutié** » Tue Jun 02, 2009 1:00 am

Hi,
Yes, the credit is probably very poorly issued, however check and make sure that the B/L doesn't have a requirement that the vessel age be less than 25 yrs old. Very often that info is tucked in with B/L instructions.
Good luck
Judith

GlennRansier_ · Post by **GlennRansier_** » Tue Jun 02, 2009 1:00 am

Based on what I am regarding, it would appear to be discrepant. You have a clear indication of the vessel age on a required LC document and a documentary requirement based upon the vessel's age. I admit the credit is poorly structured but in this case it would seem that the gear and tackle certificate is needed.

ThuHoangAnh_ · Post by **ThuHoangAnh_** » Wed Jun 03, 2009 1:00 am

Hi,

It should be agreed that when incorporating the requirement “In case the vessel is between 20 to 25 years of age…” into the credit the applicant did not intend to accept the vessel over 25 years of age. However, such poorly-construed requirement does not appear to convey his intention fully or clearly.

I think in this particular case the issuing bank should refuse the documents due to the said discrepancies but it is possible that the presenter will reject by arguing that:

• The vessel 29 years of age is acceptable as the credit does not have a clear provision prohibiting the vessel over 25 years of age.

• Copy of Cargo Gear and Tackle Certificate is understood to be required only in case the vessel is between 20 to 25 years of age. Such a document is not required in case the vessel is under 20 years of age or over 25 years of age.

The presenter’s reasoning seems right but I do believe he will lose if the case is brought to the court.

Best regards,
N.H. Duc.

DanielD · Post by **DanielD** » Thu Jun 04, 2009 1:00 am

N.H.Duc,

Quite so.
Suffice to cancel paragraph 2 in the ISBP and to add in UCP article 2 - complying presentation -"and also possible reasonings of courts"
Regards
Daniel