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 Road Transport Document.
- In the first scenario we will face a situation where road transport document does not contain any date of receipt or a date of shipment notation.
- In the second scenario we will be having a road transport document which contains a date of receipt or a date of shipment notation.
Option 1 => There is no notation of a date of receipt or a date of shipment on the Road Transport Document:
- The date of issuance of the road transport document will be deemed to be the date of shipment.
Option 2=> Road transport document indicates, by notation, a date of receipt or a date of shipment:
- Date of receipt notation/stamp => this date will be deemed to be the date of shipment.
- Date of shipment notation/stamp => this date will be deemed to be the date of shipment.
