ICC Digital Library Forum

I would like to ask you about a legal and usual market practice in Brazil: As per Brazilian Customs Legislation, corrections of Bill of Lading can be done through issuance of Amendments to the Bill of Lading: "Carta de COrreção do B/L" issued by Carrier (the same issuer of the B/L). Exporters in Brazil always send "carta de correção de B/L" in order to correct B/L. L/C does not describe this document. If I do not
accept the "Carta de Correção do B/L" exporters in Brazil will not agree.
Which are the possible procedures to be implemented in order to guarantee
"carta de Correção" will not be pointed as a discrepancy by Importer´s
Bank and Importer?

THIS IS THE JOB OF ICC BANKING COMMISSION

Whilst we agree that a carrier that issues a bill of lading has the right to make amendments to his bill of lading, this issue cannot be effectively resolved in the DC Pro Discussion Forum. It is the job of the ICC Banking Commission. We do not have such authority to change this trade practice from Brazil.

BRAZIL ICC NATIONAL COMMITTEE OR BANKING ASSOCIATION MAY HELP

Why not ask the Brazil ICC National Committee to write to ICC Paris? If there is no such National Committee, then the Bankers Association in Brazil may do the same job.

http://www.tolee.com

[edited 10/24/01 9:45:00 PM]

The "Letter of Correction" (in Portuguese: Carta de Correção - is required by the Customs Authority when an erasure or correction is effected in the Shipping Documents, mainly in the B/L.
For correction approval by
Customs Officer it is necessary that a letter from the shipowner or his agent,
declaring that the erasure or correction is approved ( this is the letter of correction).
This "letter of correction" must be issued by the Carrier/shipowners from the port of shipment and translated to Portuguese by its agent in the arrival port.

Generally the Customs Authorities also accept a Correction Letter issued by an authorized NVOCC. The importer must present the original Correction Letter together with the full set of shipping documents for the clearance of the goods.

In most instances an issuing bank will accept a corrected or amended B/L which after correction complies with the terms and conditions of the Credit and in doing so the issuing bank accept the Letter of Correction" (in Portuguese: Carta de Correção) as the authentication of these corrections.

Alternatively, If the errors or corrections appear to be authenticated on the face of the transport document by the party that signed or authenticated the document then the Letter of Correction which would not have been stipulated in the Credit as issued need not be examined by banks. In this instance according to UCP 500 sub-article 13a '… they shall return them to the presenter or pass them on without responsibility…'

Finally, an evolving practice. Sometimes the Letter of Credit will bear a clause on the lines of ' In the event of corrections or amendments to transport documents the corrections or amendments must be approved by a Letter of Correction " (in Portuguese: Carta de Correção) issued by the Carrier or their Agent. In this event the Letter of Correction must be treated as a documentary stipulation in the Credit as issued or amended and will be examined for compliance thereunder.

I hope this is of some assistance.

Vinnie

The letter of correction should not impinge upon DC operations. If a correction is necessary, this should be completed as normal by the carrier/agent for submission to the nominated bank (not in Brazil). Therefore if documents are in order (including correction in the usual European manner), the bene is paid and documents go to the issuing bank. In the meantime, the Portuguese version of the correction can be issued and sent directly to the applicant for use in Customs clearance when matched with the original B/L received in the usual way through the issuing bank.

Laurence