THIRD PARTY

ABDURRAHMANO · Post by **ABDURRAHMANO** » Mon Jun 30, 2003 1:00 am

What is the “third party documents are acceptable” condition in a credit to the transport documents after ISBP. As per ISBP new meaning of that popular expression is that; ) “third party documents acceptable” – all documents, excluding drafts but including invoices, may be issued by a party other than the beneficiary. If the issuing bank’s intent is that the transport document(s) may show a shipper other than the beneficiary, the clause is not necessary because it is already permitted by UCP sub-Article 31(iii).

By this description or explanations in the ISBP I am still not clear with the matter of its effect on the transport documents’ issuer if have or not. Clearly I want to learn that where the “third party docs acceptable” clause had used in a credit , the issuer of the transport documents may be yet a party other than that carrier or its agent rwhich has been in 23-28 articles of UCP. What is the effect of that clause to the transport or insurance documents after ISBP?

NigelHolt · Post by **NigelHolt** » Tue Jul 01, 2003 1:00 am

Without liability/responsibility, my personal views are:

As para 22c confirms, the expression:

1. Only has application to documents, except drafts, that are required (by the credit terms/UCP) to be produced by the beneficiary.

2. Has NO effect on documents that have to be issued by a party other than the beneficiary, e.g. transport and insurance documents, and the terms of the credit/UCP continue to apply to them unchanged.

PavelA · Post by **PavelA** » Wed Jul 30, 2003 1:00 am

I agree with the explanation given above. True is, that ISBP could be clearer, here and in some other places as well!

Best Regards,

Pavel Andrle

larryBacon · Post by **larryBacon** » Sun Aug 03, 2003 1:00 am

A statement like "third party documents acceptable" is, as intimated, unnecessary. This has been reiterated many times, but is still found in many credits. The major difficulty with it has been an interpretation of to which documents does this apply or not ? ISBP seeks to answer this by applying it to all except drafts, unless contraindicated.

Laurence

ABDURRAHMANO · Post by **ABDURRAHMANO** » Thu Aug 07, 2003 1:00 am

Mr.Laurance,

Your reply made me confuse again. You are saying that ISBP seeks to answer this by applying it to all. Ýf you purpose by this only the documents which are to issued by the beneficiary (not transport and insurance docs.) I agree with you, otherwise you are in conflict with other comments which has been given to this matter. Also, as you know the certificate of origin can be issued by the beneficiary or chamber of commerce as per ISBP. What is your opinion as to the effect of the “third party acceptable” clause to certificate of origin under ISBP provisions.

regards

larryBacon · Post by **larryBacon** » Thu Aug 07, 2003 1:00 am

Transport & insurance documents in addition to c/o can be issued by third parties. UCP does not address this issue, but ISBP does.

Laurence

DonSmith · Post by **DonSmith** » Mon Aug 11, 2003 1:00 am

And ISBP reflects the ICC Opinions and the banking commission discussion and the input from the national committees to the ISBP.
Regards,
Don Smith
US

ABDURRAHMANO · Post by **ABDURRAHMANO** » Tue Aug 12, 2003 1:00 am

my question was regarding to the transport and insurance documents if can be issued by a party other than carrier or insurance company. in brief that is to say, after ISBP still the issuer of the a/m documents are uncertain? first comments on this matter was clear and I were agree, but last comment made me confuse and still I am not clear whether the third party clause in a credit effects the issuer of the transport, insurance or c/o documents or not. henceforh,after ISBP, are we have a chance to use this claus in safe by knowing that it only effects the documents such us invoice, packing list, weight list, c/o(if issuers are beneficiary). thank in advance for all commnets. regards

larryBacon · Post by **larryBacon** » Wed Aug 13, 2003 1:00 am

Your latest question is quite different to your first.
Generally, transport documents can only be issued by the carrier or its agent. There are some specific exceptions such as a master signing B/L.
Insurance certificates may be issued by the shipper under an open policy, with the prior approval of the insurance co.

These examples are not necessarily comprehensive.

Laurence