ICC Digital Library Forum

L/C issued on 10th march 2002 indicated some details as follows:
- Shipment from any port of China
- Ocean bill of lading should be presented.
Within L/C validity, issuing bank received the documents including ocean bill of lading that showed loading port as Hongkong port.
In your opinion, could issuing bank refuse payment with the reason "incorrect loading port" ?

Without liability/responsibility:

My understanding is that Hong Kong is legally part of ‘China’, and that its special status does not change this. Therefore, I personally believe the blading complies with the port of loading requirements of the credit.

Welcome to the discussion forum !

As I understand it, at the time of issue of the credit, Hong Kong was a Special Administrative Region of the People's Republic of China. Therefore, unless contra-indicated in the DC, shipment from any Chinese port would permit Hong Kong.

Of course, allowing shipment from any Chinese port would also permit shipment from Taiwan.

Laurence

POLITICAL BACKGROUND HAS TO BE CONSIDERED

Political background of a bank may affect the interpretation of "What is China?" or "What is a Chinese port?"

People's Republic of China refers to "China" as including Taiwan and deems it as a province rather than a country. But some Taiwanese may not share the same opinion. So we have terms like "The Greater China" to include both, the People's Republic of China (PRC) and the Republic of China (ROC).

In the same way, we have "The Greater Pearl River Delta" in which Hong Kong and Macau are all included as well as Shenzhen and Guangzhou.

In the same way, in North America, we have the term "The AmericaS" to mean more than just USA.

So before we make any comment on such issues, we have to clarify who is the issuing bank, from China, or from Taiwan? The standard used in examination may be different, particularly that the bank is owned by the government, in which case the political interpretation will come into play. For example, is Kaohsiung a port of China? or Taiwan?

Of course, it is not to be argued that the port of Hong Kong is now part of China. I was born and brought up there. So at least, I should know the place where I was born!

BEFORE 1ST JULY 1997 HONG KONG IS NOT A PORT OF CHINA

The banker who says it is not may refer to a presentation made before 1st July 1997, the date UK returned Hong Kong back to China. If the DC is subject to UCP 290/400, then Hong Kong may not be a port of China.

www.tolee.com

[edited 11/22/02 6:31:38 PM]