ISM Code Certificate

UmarF · Post by **UmarF** » Tue May 24, 2005 1:00 am

L/C called for a certificate from the shipping Company, Carrier or from Owner/Master of the Vessel or their Agent stating that the Carrying Vessel is ISM (International Safety Management) Code Certified

However the certificate presented among original documents from the Shipping Line Agent stating that “ The Vessel is exempted from SOLAS Convention requirements and is not to have a certificate of conformity to the ISM Code OR Has a current ISM code certificate if the carrying vessel is subject to SOLAS"

Is this certificate acceptable? I would like to have your comments.

CSchneiderbauer · Post by **CSchneiderbauer** » Wed May 25, 2005 1:00 am

I think that you first have to clarify whether this vessel is subject to SOLAS or not (by means of a separate certificat or maybe mentioned in the B/L). If she is, I would accept this document. If not, I would consider this document as discrepant.

NigelHolt · Post by **NigelHolt** » Wed May 25, 2005 1:00 am

My impression is that:
1. the credit requires an ‘affirmative’ statement that that the carrying vessel is ‘ISM Code Certified’.
2. the certificate presented fails to do this.
3. the certificate is therefore discrepant.

[edited 5/25/2005 11:17:56 AM]

larryBacon · Post by **larryBacon** » Wed May 25, 2005 1:00 am

I agree with Jeremy. Whether or not the vessel is permitted to operate without the ISM cert is not relevant to the LC. The LC calls for the ISM certificate. Without it, the presentation is discrepant.

Laurence

VijayalakshmiK · Post by **VijayalakshmiK** » Thu May 26, 2005 1:00 am

Hi

Below is a variation of the same question, please let me know your views.

LC requires:
Certificate from shipping co. confirming that vessel is either A) Exempt from the SOLAS convention requirements and is not required to have certificate of conformity to the ISM code OR B) Has a current ISM Code certificate, if the carrying vessel is subject to SOLAS.

Document presented:
Shipping Company certificate stating - We confirm that the named vessel is either A) Exempt from SOLAS Convention requirements and is not required to have a certificate of conformity to the ISM code, Or B) has a current ISM Code Certificate, if the carrying vessel is subject to SOLAS.

Should the shipping company certificate be specific on which of the condition will apply? OR
Can we take it that vessel complies with atleast one of the conditions?

[edited 5/26/2005 10:04:49 AM]

KimChristensen · Post by **KimChristensen** » Thu May 26, 2005 1:00 am

Dear Vijaya,

Perhaps a bit academic – but (unfortunately) not unrealistic

I would follow the principle laid out in e.g. ISBP paragraph 106. So if this information is available (A or B) then the document should be specific. In this case (assuming the specific vessel is known) then the shipping line should choose.
I would require that in any case.

Best regards
Kim

VijayalakshmiK · Post by **VijayalakshmiK** » Thu May 26, 2005 1:00 am

Dear Kim,

Thanks for your reply. Can you clarify why the shipping company should choose?

Will it matter to us whether vessel is subject to SOLAS or not subject to SOLAS as L/C seems to be ok with both.

larryBacon · Post by **larryBacon** » Thu May 26, 2005 1:00 am

I must disagree with Kim. ISBP par. 106 relates specifically to ports of loading and discharge. It does not state or imply any such "principle".
The document presented gives you exactly what is asked for in the LC & is therefore compliant. If the issuer of the LC wanted to know which of the two options apply, this should have been called for in the LC.
If you don't ask, you don't get !

Laurence

KimChristensen · Post by **KimChristensen** » Fri May 27, 2005 1:00 am

Well – I guess that you can argue both ways, and I could not find any better argumentation than ISBP paragraph 106

I am not saying that 106 implies that this principle would be valid in every circumstance, only that I found it logical to refer to in this case.

I must admit that I find it hard to come up with any precise UCP argumentation; but I do think that “choices” like this one are usually placed in the credit to help the beneficiary, and I think it would be natural to show the specific choice where this is clearly known; like in this case where you know which vessel is carrying the goods …

I have no idea if it makes a difference whether vessel is subject to SOLAS or not subject to SOLAS – and again I think you can argue both ways as to the relevance for the presentation under the documentary credit – so I will not go down that road

Have a nice Friday & weekend

Best regards
Kim

[edited 5/27/2005 7:57:44 AM]