ICC Digital Library Forum

Where a credit calls for presentation of -only- a copy of transport doc and presented doc bears a shipment date which is after the latest date of shipment allowed in the credit.

Would it constitute a discrepancy ?

Bear in mind the fact that copy of transport docs are not transport docs defined in UCP Arts and they are not reviewed under requirements of UCP Arts. Regards,
Yahya
[edited 6/7/2007 3:12:24 PM]

Dear Yahya,

My view is that if such ”latest shipment date” were to have any effect on that LC – then the LC must describe rather precisely how to determine “shipment”.

Bear in mind that UCP hold 7 “definitions” for “shipment” – one in each of the transport articles – and as you correctly mentions then these are not the basis for the examination. Consequently you would not know how to determine shipment.

E.g. article 23 says defines “shipment” as “loaded on board or shipped on a named vessel”. If requiring copy of B/L – then there would be no requirement that the documents must show this – and if not; then how to determine shipment?

Best regards
Kim

I think Opinion TA582rev might be of relevance.

Dear Kim ,
I'm not sure that I get your point.
You may mean that the credit should have stated a definition in regards with the shipment date to be stated on the copies of transport doc. And if there is no such specific requirement in the credit , consequently, any shipment date stated on any transport doc has NOT to be taken into consideration.

I think I should give more information about the case.
There is no specific requirement in the Credit how to determine the date of shipment.
The credit calls for presentation of copy B/L and indicates a date in field 44c of MT700 as latest date of shipment.The presented doc is a photocopy of org B/L (covering sea shipment only) indicating an on board notation which bears a date later than the latest date of shipment that allowed in the credit.

Dear Jeremy ,
I already checked Opinion TA582rev and i consider that this opinion has no CLEAR statement in regards with establisment
of a shipment date from a photocopy of a TD but a presentation period.
This opinion just repeats the fact that any presentation period stated in a Credit or in art 43 of UCP applies only to the credits
calling for original of transport docs defined in UCP arts unless there is no specific requirement for the calculation of any
presentation period on the copies of transport docs.


I am aware of the concept that copies of transport doc.are not transport docs and cannot be reviewed under relevant transport arts of UCP But I also think that this concept leads us to the conclusion that we should ignore a fact that a shipment which had been delayed.
I agree that if there were no dated on board notation nor an issuance date on the copy of transport doc. I could have no basis to determine a delayed shipment, but in this case I have an evidence which I have to take into consideration.

Regards ,
Yahya

This is a very good question. I would try to respond to it by referring to another document which is not a transport document. If a letter of credit requires a delivery note and specifies latest date of delivery, would we accept a document showing delivery after the latest date stated in the credit? I believe not. Similarly, a copy of a bill of lading should at least show the details required in the credit. The mere request of a copy may be just to ensure that the shipment date is met.

regards
Abdulkader

Hi everyone.
I remind you art.2(iii) of UCP500
"provided that the terms and conditionsof the credit are complied with".
l/c's latest date of shipment clause is a condition.the condition of goods being shipped latest this date.
The fact that a copy/photocopy b/l hasn't to be checked under art.23
doesn't mean that I have to ignore everything.
What if such a b/l copy i/o being issued to iss.bank's order is consigned to applicant, would you accept it ?(lets say no other doc indicates consignee part).
A COPY B/L MUST BE CHECKED NOT BASED ON UCP500 ART.23 BUT BASED ON L/C'S TERMS AND CONDITIONS.
Regards,
Bogdan.

I agree with AbdulKader, latest date of shipment is a term of the credit compliance of which is generally determined from the transport documents. However, in the absence of a transport document this may be determined from any document called for under credit be it invoice or copy of the transport document.
Regards
Khalid

Dear Khalid,

I do not agree that you can just determine “shipment” from the invoice if no transport document is presented. To me shipment (in LC terminology) is an abstract concept – depending entirely on which transport document (described in the UCP) the LC calls for.

Just saw a Forwarders Certificate of Receipt – which had 3 dates:

Date of issue of FCR: 06.06.2007

Goods received date: 30.05.2007

Goods dispatch date 05.06.2007

So please tell me which date is “shipment”?

Please also note UCP 600 article 14 (c) – where it is clear that the presentation period on 21 days only apply when the presentation includes one or more original transport documents subject to articles 19, 20, 21, 22, 23, 24 or 25.
To me the reason is that this period is based on “shipment” – and you need to be able to determine “shipment” in order to calculate the period of presentation.

Best regards
Kim

If the LC doesn't call for a transport document but requires that the invoice to show the shipment date, would there be a problem? I don't think so. Likewise, I believe we agree that f the LC in this case mentions a latest date of shipment, the date of shipment stated in the invoice should not be later than the latest date of shipment provided in the credit.

Regards
Abdulkader

Dear Abduakader,

Agree of course that if the LC contains specific requirements in that respect – that should be reflected in the documents presented.

However – I am not sure that I agree on the second part of your posting – but it may be that one would need to see a more specific example.

I any case: An LC that does not require a transport document as per UCP 500/600 and mentions a latest date of shipment I would consider ambiguous – and would certainly not look for the shipment date on the invoice.

Best regards
Kim