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This statment is also available in the ICC Policy Statments section of DC-PRO.

Karl,

Hope you’re well and that it’s not too chilly in Vienna.

If you’ve not already seen them, I’ve already expressed some personal views on the subject elsewhere on DC-Pro. Those below are also purely personal.

As I was not there, and have yet to see the minutes, I can only assume that those at the meeting took a literal approach to the provisions of Article 23. Certainly in the U.K. the view that (what I have decided to call) ‘non-surrender bills of lading’ were discrepant was very much in the minority, at least among the major U.K. banks. Also, both I, individually, and the ICC U.K. banking committee, were subject to heavy lobbying by lawyers acting for the carrier that I think can be considered to be at the origin of this problem (nudge, nudge, wink, wink). Perhaps this was also a factor in New Delhi?

I have to admit I’ve never been convinced by the argument that doc credits should receive special treatment under Basel, given that there is frequently no control by the banks over the goods and that a credit is no more self liquidating than factoring or invoice discounting. When it comes to (what I consider) ‘true’ trade finance, I believe issuing banks will simply have to expressly exclude non-surrender bills of lading in the credit terms, if they want a true document of title, from now on (which I do not think should to too onerous).

Lastly, my may concern frankly was that the Commission adopted a clear published position quickly, rather than with what that position actually was.

Regards, Jeremy

If, as I understand, the question was handed by the Banking Commission to the Transport Commission, it is logical that the latter would decide in favour of it's participants needs and not necessarily in respect to the Banking community needs. Since I was not at the meeting in December, I would wonder how many banking commission members were advised/consulted before the publication of this -- to my mind --unfortunate decision.

Judith

P.S. I have yet to find "such terms and conditions" on the back of any bills of lading that I have seen which allowed delivery of goods without presentation of the negotiable B/Ls. I wonder if anyone else had found them there previously.

Judith

I'm sure the ICC studied the back of every available bill of lading before issuing their statement!