Bill of lading is a very important transport document, because it is suppose to evidence of contract of carriage, a receipt of goods by the carrier and a document of title to the goods.
In order a bill of lading functions as it is suppose to function, it must be completed and signed by a reliable carrier.
According to the current letter of credit rules a bill of lading must identify the name of the carrier and be signed by carrier, master or their agents.
A bill of lading, however named, must appear to indicate the name of the carrier and be signed by:
- the carrier or a named agent for or on behalf of the carrier, or
- the master or a named agent for or on behalf of the master.
If the issuing bank finds out that the name of the carrier not identified on the bill of lading, then the issuing bank will raise a “Carrier Not Identified” discrepancy.
If the issuing bank finds out that the bill of lading has not been signed by the carrier, master or their named agents on behalf of either the carrier or master, then the issuing bank will raise a “Bill of Lading not Signed as per UCP” discrepancy.
- Example of Carrier Not Identified Discrepancy:
A letter of credit has been issued in SWIFT format, subject to UCP latest version, with the following details:
Letter of Credit Conditions
Field 46A: Documents Required: Full set of shipped on board bill of lading marked freight collect made out to order of Commercial Bank of Kuwait notify Applicant Company with full address and contact details as indicated in the credit.
Bill of Lading
The beneficiary presented a bill of lading in which carrier name not identified. Issuing bank raises carrier not identified discrepancy.
2.Example of Bill of Lading not Signed as per UCP Discrepancy:
A letter of credit has been issued in SWIFT format, subject to UCP latest version, with the following details:
Letter of Credit Conditions
Field 46A: Documents Required: Full set of shipped on board bill of lading marked freight prepaid made out to order of Burgan Bank, Kuwait notify Applicant Company with full address and contact details as indicated in the credit.
Bill of Lading
The beneficiary presented a bill of lading, which is signed as seen on the below picture.
According to letter of credit rules a bill of lading must be signed by the carrier or a named agent for or on behalf of the carrier, or the master or a named agent for or on behalf of the master. Sample bill of lading not signed as per letter of credit rules, UCP 600.
The issuing bank raises bill of lading not signed as per UCP discrepancy.
