Date of shipment is one of the key definitions in a letter of credit transaction. It is used to determine
- whether shipment made on time or not (in other words a late shipment has been effected or not)
- whether documents presented within the presentation period or not (in other words a late presentation has been effected or not)
- maturity date of the time draft
- maturity date of a deferred payment letter of credit.
Date of shipment can be determined in two ways on a multimodal bill of lading according to the letter of credit rules.
- In the first scenario we will face a situation where multimodal bill of lading does not contain any date of dispatch, taking in charge or shipped on board notation.
- In the second scenario we will be having a multimodal bill of lading which contains a date of dispatch, taking in charge or shipped on board notation.
Option 1 => There is no shipped on board or taking in charge notation exists on the multimodal bill of lading:
- The date of issuance of the multimodal bill of lading will be deemed to be the date of shipment.
Option 2=> Multimodal bill of lading indicates, by stamp or notation, a date of dispatch, taking in charge or shipped on board: Notation date will be deemed to be the date of shipment as specified below:
- Date of dispatched notation/stamp => this date will be deemed to be the date of shipment
- Date of taken in charge notation/stamp => this date will be deemed to be the date of shipment
- Date of shipped on board notation/stamp => this date will be deemed to be the date of shipment
Important Note: Only applies when the notation is in respect of dispatch, taking in charge or shipped on board at the place or port named in the credit for the commencement of the carriage.
