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Requirement to show Freight Collect or Prepaid on the L/C

Posted: Fri May 11, 2007 1:00 am
by Shahed
Can i get your opinion whether it is mandatory to ask in the L/C, to state Freight Collect or Prepaid on the transport documents when the terms of purchase (FOB/CNF) is mentioned in the L/C.

Requirement to show Freight Collect or Prepaid on the L/C

Posted: Sun May 13, 2007 1:00 am
by DanielD
Sean,
No, and the more so since UCP 500 art. 33 has not been reintroduced in UCP 600
Daniel

Requirement to show Freight Collect or Prepaid on the L/C

Posted: Sun May 13, 2007 1:00 am
by KimChristensen
Dear Sean,

The short answer is: this is not mandatory – although common.

There are few cases where these things do not go hand in hand. Vital is that the LC reflects what has been agreed / what is expected to happen.

If you provide more info – you may get a more precise answer.

Best regards
Kim