ICC Digital Library Forum

Hello Experts,

LC states : Partial Shipment prohibited

Description : 2000 Qty of XYZ

Bene has presented 2 FCR covering 1000 Qty in 1 FCR and 1000 in 2nd FCR.

Both both the FCR shows same vessel name and same destination

As FCR is not a transport document, therefore UCP article 31(b), will not be applicable.

As such, can we reject the document stating "Partial shipment effected"

Hi,

I see UCP 600 Article 31 (b) has nothing to do with your case.

Although FCRs presented are not transport documents, however, I believe such documents are acceptable based on ISBP para. 105. No partial shipment.

Best regards,
N.H. Duc

Hi,

that para 105 talks about B/L, where as in this case FCR presented.

Pleae check and advice

Hi Mujeeb,

It’s true that FCR is not a transport document but a receipt that should not include details of shipment such as on board date, name of vessel, port of loading, port of discharge … L/C should always call for a transport document, e.g., a bill of lading, as it would evidence receipt and details of shipment on which we can base to determine whether the shipment is complying with
L/C terms and conditions.

It is understood from your description that no bill of lading but FCR is called for. If L/C expressly requires such details of shipment to be indicated in FCR, then the documents can be checked based on ISBP para. 105 to determine whether or not partial shipment is effected.

More comments from other experts are needed.

Best regards,
N.H. Duc

If the LC required a FCR and not a transport document then the FCR must be examined in accordance with the LC and UCP article 14. As you know, calling for a FCR in an LC requires the beneficiary to deliver the goods to the forwarder and not necessarily to undertake to ship the goods. A LC requiring "partial shipments prohibited" when no shipment is meant to occur against the LC is an improper issuance. Having said this, it would appear that the FCR does comply with 14 d., e. and f. and if otherwise in accordance with the LC terms, I do not see how they can be refused.

Although an FCR is not defined as a transport document under the UCP and Paragraph 105 of the ISBP specifically addresses the bill of lading, there is consensus on when there is or is not a partial shipment.

I refer to query 470/GE.46 and R369 which deal with delivery by truck and train respectively. It is clear that, if it can be determined that the goods have been shipped on the same means of conveyance and for the same voyage, there is no partial shipment effected.

To me that basic understanding is of importance rather than from what document the shipment details are to be determined.

Regards,

Rob Reissner