Bill of Lading

What Does Full Set of Bills of Lading Mean?

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What does full set of bill of lading mean?

Under an ordinary letter of credit, the issuing bank demands a full set of clean shipped on board ocean bills of lading from the beneficiary.

But what is a full set of bill of lading according to the letter of credit rules? How does a beneficiary make sure that he presents a full set of bills of lading?

Most of the transport documents, that is subject to international transportation, issued in more than one originals.

For example, a CMR road consignment note is issued in 3 original copies. The first copy for the exporter, the second to accompany the goods; and the third for retention by the carrier. (1)

Understanding the Reasons Behind the Issuance of Multiple Original Transport Documents:

International transport documents can be classified under two main groups: Negotiable transport documents and non-negotiable transport documents.

 

Multiple Original Transport Documents

Negotiable transport document is a title of goods, such as an original bill of lading, which can be transferred to another party by endorsement.

At least one original negotiable transport document must be surrendered to the carrier by the consignee at the place of destination to collect the goods.

Negotiable transport documents are issued in more than one originals in order to prevent lost of documents.

Non-negotiable transport document is a not a title of property and the consignment is placed at the disposal of the stipulated consignee against a proof of identity without further need to surrendering any original transport document.(2)

Non-negotiable transport documents are issued in more than one originals mainly for operational purposes as some of the original copies of these documents are traveling with the goods.

Full Set of Ocean Bills of Lading Under a Letter of Credit

According to the letter of credit rules, a bill of lading is to indicate the number of originals that have been issued and all of the originals stated on the bill of lading have to be presented by the beneficiary to the issuing bank, unless otherwise indicated in the credit.

For example, container carriers issue bills of lading in a set of 3 original and 3 copies as an established tradition for decades.

The letter of credit rules taking into account only the original bills of lading as a transport document by disregarding the non-negotiable copies.

Example:

  • A letter of credit issued asking for a full set of clean ”shipped on board” negotiable bill of lading showing freight prepaid made out/endorsed to the issuing bank, notifying the issuing bank and the applicant with full address.
  • The bill of lading indicated that it has issued in 3 originals.
  • The beneficiary has presented all of the 3 originals as a full set of bills of lading.

Important Note: The beneficiary could have presented 3 originals and 3 copies of the bills of lading without any problem.

Letter of Credit Rules:

UCP 600 – Article 20 – Bill of Lading
iv- Be the sole original bill of lading or, if issued in more than one original, be the full set as indicated on the bill of lading.

ISBP 2007 – Full set of originals Paragraph 93
As per UCP 600 article 20 transport document must indicate the number of originals that have been issued. Transport documents marked “First Original”, “Second Original”, “Third Original”, “Original”, “Duplicate”, “Triplicate”, etc., or similar expressions are all originals. Bills of lading need not be marked “original” to be acceptable as an original bill of lading. In addition to UCP 600 article 17, the ICC Banking Commission Policy Statement, document 470/871(Rev), titled “The determination of an ‘Original’ document in the context of UCP 500 sub-Article 20(b)” is recommended for further guidance on originals and copies and remains valid under UCP 600. The content of the Policy Statement appears in the Appendix of this publication, for reference purposes. (Please keep in mind that ISBP 2007 has been updated and is not the effective version as of July 2013.)

References:

  1. The CMR Convention, The British International Freight Association (BIFA) Website, Retrieved: 21.06.2018
  2. Shipping and Incoterms, Practice Guide, UNDP Practice Series, Page:50

Clean on Board Notation on Bills of Lading

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clean on board

What is clean on board?

A clean transport document or a “clean on board” clause relates to the condition of the goods and/or packaging.

If, on receipt of the goods, the carrier finds that the packaging or the goods are defective, he will make a notation on the transport document to this effect to avoid being subsequently held responsible for such defect.

Hence, the document is no longer clean, and any objections or claims for damages will have to be directed to the consignor. (1)

If the word “clean” appears on a bill of lading and subsequently it has been deleted, the bill of lading will not be deemed to be claused or unclean unless it specifically bears a clause or notation declaring that the goods or packaging are defective.

Clauses or notations on the bills of lading, which expressly declare a defective condition of the goods or packaging are not acceptable by the letter of credit rules.

Clauses or notations which do not expressly declare a defective condition of the goods or packaging (e.g., “packaging may not be sufficient for the sea journey”) do not constitute a discrepancy.

However, a statement on the transport document declaring that the packaging “is not sufficient for the sea journey” would not be acceptable.

One of my reader is asking below question from Belgium. She is director of a shipping company. She would like to know more about clean on board notations on bills of lading.

We have a persistent shipper who insists to have the word ‘clean’ added before shipped on board in their B/Ls. Have tried to explain that a B/L without clauses/remarks is a clean B/L. Can you refer to a certain part on your website where I can find official explication to convince them ?

Thanks in advance.

director of XYZ Shipping Company

Dear Director,

I can suggest you to inform below UCP 600 article to your shipper.

UCP 600 – Article 27

Clean Transport Document

A bank will only accept a clean transport document. A clean transport document is one bearing no clause or notation expressly declaring a defective condition of the goods or their packaging. The word “clean” need not appear on a transport document, even if a credit has a requirement for that transport document to be “clean on board”.

UCP 600 defines below documents as transport documents :

  • Transport Document Covering at Least Two Different Modes of Transport
  • Bill of Lading
  • Non-Negotiable Sea Waybill
  • Charter Party Bill of Lading
  • Air Transport Document
  • Road, Rail or Inland Waterway Transport Documents
  • Courier Receipt, Post Receipt or Certificate of Posting

References:

  1. Documentary credits in practice, Reinhard Längerich, Second edition – 2009, Published by: Nordea, Page: 146
  2. Shipping and Incoterms, Practice Guide, UNDP Practice Series, Page:12

What are the differences between received for shipment bill of lading and pre-printed shipped bill of lading?

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What are the differences between received for shipment bill of lading and pre-printed shipped bill of lading?

There are two types of bills of lading circulating around the globe in terms of pre-printed notifications:

  • Received for shipment bills of lading: Goods have been received by the carrier but not on board of a named vessel.
  • Shipped on board bills of lading: Goods have been received by the carrier and laden on board of a named vessel.

Received for Shipment Bill of Lading:

This bill of lading states that goods are received by the carrier in apparent good order.

Unless received for shipment bill of lading contains an additional “on board notation”, it does not confirms that the goods have been shipped on board to a named vessel.

Traditionally, received for shipment bills of lading does not give enough assurance to the banks in letter of credit, bank guarantee or standby letter of credit transactions.

Banks prefer to have a pre-printed shipped on board bills of lading.

Alternatively received for shipment bill of lading can be accepted with an “On Board Notation“.

Received for Shipment Bill of Lading Example:

Received for shipment bills of lading clause can be seen on the face of the bill of lading generally at the right bottom side of the page.

Without an additional on board notation, received for shipment bill of lading does not confirm that goods shipped on board a named vessel.

RECEIVED by the Carrier from the Shipper in apparent good order and condition unless otherwise indicated herein, the Goods, or package(s) said to contain the Goods, to be carried subject to all the terms and conditions herein.

Pre-Printed Shipped Bills of Lading:

Pre-printed shipped bills of lading not only confirm that goods have been received by the carrier, but also they have been shipped on board of a named vessel.

Banks accept pre-printed shipped bill of lading in trade finance transactions such as under commercial letters of credit, bank guarantee or standby letter of credit operations.

Pre-Printed Shipped Bill of Lading Example:

Pre-printed shipped bills of lading clause can be seen on the face of the bill of lading generally at the right bottom side of the page.

Pre-printed shipped bill of lading will be accepted by banks under most trade finance solutions.

Pre-printed shipped bill of lading confirms that goods shipped on board a named vessel as required by the letter of credit rules.

SHIPPED, as far as ascertained by reasonable means of checking, in apparent good order and condition unless otherwise stated herein, the total number or quantity of Containers or other packages or units indicated in the box entitled “Carrier’s Receipt” for carriage from the Port of Loading (or the Place of Receipt, if mentioned above) to the Port of Discharge (or the Place of Delivery, if mentioned above), such carriage being always subject to the terms, rights, defenses, provisions, conditions, exceptions, limitations, and liberties hereof (INCLUDING ALL THOSE TERMS AND CONDITIONS ON THE REVERSE HEREOF NUMBERED 1-26 AND THOSE TERMS AND CONDITIONS CONTAINED IN THE CARRIER’S APPLICABLE TARIFF) and the Merchant’s attention is drawn in particular to the Carrier’s liberties in respect of on deck stowage (see clause 18) and the carrying vessel (see clause 19).

Charter Party Bill of Lading

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charter party bill of lading

On this page I will try to explain you “Charter Party Bill of Lading” and its applications in letters of credit transactions.

Charter Party Bill of Lading is one of the transport documents that is specifically governed by the letter of credit rules.

The international shipping industry is responsible for the carriage of around 90% of world trade.

Shipping is the life blood of the global economy. Without shipping, intercontinental trade, the bulk transport of raw materials, and the import/export of affordable food and manufactured goods would simply not be possible.(1)

International sea transportation can be divided into 3 main cargo groups:

  • containers,
  • liquid bulk cargo (or “wet” trades such as crude oil, petroleum products and gas) and
  • solid bulk cargo (or “dry” trades such as coal, iron ore and grain).(2)

sea transportation sub-groupes

Maritime container transportation is carried out by container ship operators, who produce negotiable bill of loading or non-negotiable sea waybill as transport documents.

Unlike container transportation, bulk cargo shipment requires special types of vessels and is not suitable for liner services.

As a result, bulk cargo transportation is carried out via hired vessels. In maritime glossary, hiring a vessel is called “Charter Party”.

Definition of Charter Party and Charter Party Bill of Lading

Charter Party Bill of Lading is the transport document of the shipments, which made via vessels subject to charter party contracts.

How to Use Charter Party Bill of Lading in Letters of Credit Transactions:

Charter party bill of lading is covered under article 22 of UCP 600.

A bill of lading, however named, containing an indication that it is subject to a charter party (charter party bill of lading), must appear to:

  1. be signed by:
    – the master or a named agent for or on behalf of the master, or
    – the owner or a named agent for or on behalf of the owner, or
    – the charterer or a named agent for or on behalf of the charterer.

Any signature by the master, owner, charterer or agent must be identified as that of the master, owner, charterer or agent.

Any signature by an agent must indicate whether the agent has signed for or on behalf of the master, owner or charterer.

An agent signing for or on behalf of the owner or charterer must indicate the name of the owner or charterer.

2. indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit

3. indicate shipment from the port of loading to the port of discharge stated in the credit. The port of discharge may also be shown as a range of ports or a geographical area, as stated in the credit.

4. be the sole original charter party bill of lading or, if issued in more than one original, be the full set as indicated on the charter party bill of lading.

A bank will not examine charter party contracts, even if they are required to be presented by the terms of the credit. (source : UCP 600)

Special Hints Regarding the Charter Party Bill of Lading From ISBP (International Standard Banking Practice):

  1. If a credit requires presentation of a charter party bill of lading or if a credit allows presentation of a charter party bill of lading and a charter party bill of lading is presented UCP 600 article 22 is applicable.
  2. A transport document containing any indication that it is subject to a charter party is a charter party bill of lading under UCP 600 article 22.
  3. If a credit does not state a notify party, the respective field on the charter party bill of lading may be left blank or completed in any manner.

References:

  1. International Chamber of Shipping, http://www.ics-shipping.org/shipping-facts/shipping-and-world-trade (Retrived: 06.April.2018)
  2. Dry bulk cargo shipping — An overlooked threat to the marine environment? Matthias Grotea, Nicole Mazureka, Carolin Gräbscha, Jana Zeilingerb, Stéphane Le Flochc, Dierk-Steffen Wahrendorfd, Thomas Höfera, https://www.sciencedirect.com/science/article/pii/S0025326X16303861 (Retrived: 06.April.2018)

Bill of Lading

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bill of lading

The transport document covering the carriage of goods by sea is called a bill of lading. B/L is the most frequently used abbreviation of the bill of lading.

Actually, the bill of lading is the generic name of the transport document, which is used in sea shipments.

There are several types of bills of lading in circulation such as multimodal bill of lading, charter party bill of lading and non-negotiable bill of lading etc. Each type of bill of lading has unique characteristics.

On this page you can find information regarding the bill of lading that is mostly used containerized, port to port shipments.

Although most banks define this type of bill of lading as marine bill of lading or ocean bill of lading, we better to use the exact definition from the letter of credit rules and call this transport document simply as bill of lading.

What are the Functions of a Bill of Lading?

The bill of lading is the authentic receipt delivered by a carrier, confirming that the goods therein specified (markings, types of goods, number of packages, etc.) have been loaded or taken in charge for loading on a designated vessel for carriage to a specified port. (1)

A bill of lading is an instrument in writing, signed by a carrier or his agent, describing the freight so as to identify it, stating the name of the consignor, the terms of the contract for carriage, and agreeing or directing that the freight be delivered to the order or assigns of a specified person at a specified place. (2)

functions of a bill of lading

The bill of lading fulfills three basic functions :

  • bills of lading are receipts for the goods;
  • bills of lading evidence the terms of the contract of carriage (by way of clauses usually printed on one side of the document);
  • they are said to be “negotiable documents of title” (except for the nominative or “straight” bill of lading) (3)

Important Note: Letter of credit rules, UCP 600, define the bill of lading as a transport document used only port-to-port sea shipments. Which means that you can not use the bill of lading with air or land shipments. Also if transportation take place more than one mode of transport, then letter of credit should call for a multimodal bill of lading or combined bill of lading.

How to Use Bill of Lading in Letters of Credit Transactions:

The rules related to the multimodal bill of lading can be found under article 20 of UCP 600.

A bill of lading, however named, must appear to:

  1. 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.
  2. indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by:
    • pre-printed wording, or
    • an on board notation indicating the date on which the goods have been shipped on board.
  3. indicate shipment from the port of loading to the port of discharge stated in the credit.
  4. be the sole original bill of lading or, if issued in more than one original, be the full set as indicated on the bill of lading.
  5. contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage (short form or blank back bill of lading).
  6. contain no indication that it is subject to a charter party. (4)

Special Hints Regarding the Bill of Lading From ISBP (International Standard Banking Practice):

  1. To comply with UCP 600 article 20, a bill of lading must appear to cover a port-to-port shipment but need not be titled “marine bill of lading”, “ocean bill of lading”, “port-to-port bill of lading” or similar.
  2. If a credit requires presentation of a bill of lading (“marine”, “ocean” or “port-to-port” or similar) covering sea shipment only, UCP 600 article 20 is applicable.
  3. If a credit states “Freight Forwarder’s Bill of Lading is acceptable” or uses a similar phrase, then the bill of lading may be signed by a freight forwarder in the capacity of a freight forwarder, without the need to identify itself as carrier or agent for the named carrier. In this event, it is not necessary to show the name of the carrier.

Bill of Lading Example?

You can find a bill of lading example below, that is evidencing a frozen meat shipment from Poland to Saudi Arabia.

bill of lading example

Letter of Credit Documents

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letter of credit documents

After reading this post, you should understand why documentation is very important under letters of credit.

Additionally, most frequently used document links have been supplied on later parts of this article.

There are many important points in a typical letter of credit transaction that need to be taken care of professionally.

However, documentation is much more important than any other aspects of the letters of credit transactions, because the documentation forms the backbone of the letters of credit structure.

In order to understand the importance of the documentation, please assume that you are an exporter, whom has just shipped an order.

How can you prove to the issuing bank that you have make the shipment according to the letter of credit terms?

Which means that;

  • you have shipped the goods on time, not late
  • you have shipped the right goods, not wrong ones
  • you have shipped the goods in good condition, no apparent defect on the packing
  • you have delivered the goods to the carrier for transportation from port of loading to the port of discharge indicated in the credit etc.

In order to prove above points to the issuing bank, you have to supply a relevant transport document.

Furthermore, let us also consider that the delivery term was CIF Incoterms 2010, which obligates the exporter, which is you, to arrange and pay the insurance for the shipment.

Once again, you have to supply an insurance policy to fulfill your insurance responsibility.

The examples can be extended, but perhaps the main idea is very clear. Letters of credit transactions are related to the documents only, not actions.

importance of letter of credit documentation

The importance of the documentation is stated in UCP 600 article 5 as follows:

Banks deal with documents and not with goods, services or performance to which the documents may relate.

In addition, every condition stated in the letter of credit must be connected to a document. This point is also clearly indicated in UCP 600 article 14 as below.

If a credit contains a condition without stipulating the document to indicate compliance with the condition, banks will deem such condition as not stated and will disregard it.

Documents Most Frequently Used Under Letters of Credit Transactions:

Transport Documents:

Insurance Documents:

Financial Documents:

Commercial Documents:

Official Documents:

Bill of Lading Discrepancies

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bill of lading discrepancies

On this post, you can find most common bill of lading discrepancy examples.

Discrepancy can be defined as an error or defect, according to the issuing bank, in the presented documents compared with the documentary credit, the UCP 600 rules or other documents that have been presented under the same letter of credit.

Bill of lading is a transport document. UCP 600 defines 4 types of bills of lading:

  • Multimodal Transport Document: Multimodal transport document is covering shipments by at least two different modes of transport. This document should be treated as a multimodal bill of lading, only when one transportation leg is carried out by sea.
  • Ocean Bill of Lading: Issued by container liners for port-to-port sea shipments.
  • Charter Party Bill of Lading: Shippers may, when large or bulk cargoes are concerned, lease the carrying vessel for a stated time or specific voyage under a charter party contract with the owner. Goods carried are then covered under a form of bill of lading issued by the charterer and indicate as being shipped, subject to the term and conditions of the charter party.
  • Non-Negotiable Sea Waybill: Works just like the ocean bill of lading, other than that this transport document is not a title of property.

The discrepancies on this post are related to ocean bill of lading.

Bill of Lading Discrepancies

Tips to Prepare Discrepancy Free Bills of Lading:

  • According to latest UCP 600 letter of credit rules a marine bill of lading should not bear any indication that it is subject to a charter party.
  • A bill of lading should indicate the number of originals that have been issued. All original marine bills of lading issued by the carrier must be presented to the issuing bank by the beneficiary.
  • Transshipment is defined as the unloading and reloading of goods from one vessel to another during the carriage of goods from the port of loading to the port of discharge. A bill of lading indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment, if the goods have been shipped in a container, trailer or lash barge as evidenced by the bill of lading.
  • Bill of lading should be regarded as a negotiable transport document unless it is consigned to a named consignee.
  • More than one notify parties could be stated in a bill of lading without any problem.
  • ‘To Order’ or ‘To the order of shipper’ means that bill of lading should be endorsed by the shipper as per letter of credit instructions.

Intended Vessel Discrepancy

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intended vessel discrepancy

There are two main types of bills of lading available on the market, in terms of shipment notations: “Received for shipment…” bill of lading and “Shipped … on board” bill of lading.

If you want to understand, which type of bill of lading you have in your hand, please simply look at the right bottom or right top corner of the bill of lading.

You will (most probably) see a small rectangular, which contains an abstract of contract of carriage.

Please keep in mind that full details of the terms and conditions of the carriage will be placed on the back side of the bill of lading, of course, if it is not a blank-back or short form bill of lading.

  • If the abstract of contract of carriage contains a phrase like “Received by the carrier…“, then the bill of lading is a “Received for shipment…” bill of lading;
  • If the abstract of contract of carriage contains a phrase like “Shipped, in apparent good order and condition…“, then the bill of lading is a “Shipped … on board” bill of lading.

Received for shipment bill of lading confirms that the carrier has taken charge of the goods.

However, received for shipment bills of lading do not confirm that the container has been shipped on board a named vessel. As a result, these kind of bills of lading require an additional “shipped on board” notation.

Because of the fact that the name of the actual vessel is not determined at the time of the issuance of the received for shipment bill of lading, the carrier may define the vessel as an “intended vessel“.

Unfortunately, the letter of credit rules accept intended vessel notation as a discrepancy in the absence of an on board notation.

The only way to get your payment from the issuing bank under letter of credit transaction is to make a discrepancy free presentation. So, you must understand what an intended vessel discrepancy is.

Why Intended Vessel Clause Inserted on the Bill of Lading?

The actual vessel may not be determined when the carrier receives the goods from the shipper, especially in “Received for shipment” types of bills of lading.

It has therefore become common practice to indicate the name of an intended vessel in the bill of lading, thus making it clear that a different vessel finally be selected.

Therefore, the bill of lading, as originally issued, does not indicate that the goods have been shipped on board a named vessel. (Gary Collyer, The Guide to Documentary Credits, 3rd Revision, Page: 205)

What the Letter of Credit Rules Say About Intended Vessel?

According to UCP 600 “If the bill of lading contains the indication “intended vessel” or similar qualification in relation to the name of the vessel, an on board notation indicating the date of shipment and the name of the actual vessel is required.”

Absence of such an on board notation will make the bill of lading discrepant.

Example intended vessel discrepancy on a bill of lading under a letter of credit:

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 original bill of lading shipped on board marked freight collect made out to the order of Bank Millennium S.A, Poland notify applicant.

The beneficiary presented a bill of lading among other documents as shown on the below picture:

intended vessel clause

Costs Additional to Freight Discrepancy

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costs additional to freight

Letter of credit rules allow transport documents to show costs additional to freight.

However, some banks especially in certain countries, prohibit costs additional to freight to be mentioned on the transport documents, by cancelling the related article of UCP 600.

If a letter of credit indicates that costs additional to freight is not acceptable, then the transport document presented must not indicate that costs additional to the freight have been or will be incurred.

How Could Costs Additional to Freight Discrepancy Occur?

Tere are the three requirements of a costs additional to freight discrepancy.

  1. A letter of credit, that expressly prohibits cost additional to freight and cancels related article of UCP 600.
  2. A transport document, that is presented with a cost additional to freight expression such as FIFO, FILO, FIO etc…
  3. A discrepancy raised by the issuing bank due to the transport document shows charges additional to freight contrary to l/c terms.

Costs Additional to Freight Discrepancy Example:

A letter of credit has been issued in SWIFT format, subject to UCP latest version, with the following details:

Letter of Credit Conditions

46A: Documents Required

  1. Full set of at least 3/3 long form original (clean on board) bill of lading on the printed forms of carrier plus one non-negotiable copy issued or endorsed to the order of Expo Arab Bank Plc, notify applicant showing freight prepaid and showing full name and address of the shipping company agent or his representative in Bahrain.
  2. Bill of lading showing charges additional to the freight mentioned in article 26 (c) of the UCP, 2007 revision, publication no. 600 are not acceptable except where such additional charges are demurrage fees for containers.
  3. Short form or blank back bill of lading are not acceptable.

The beneficiary presented a bill of lading, that contains a clause stating that “Carriage Term: Free In & Liner Out”

Bill of Lading

costs additional to freight discrepancy

Discrepancy:

The documents refused by the issuing bank due to the discrepancy indicated on the following advice of refusal.

————————————-Message Header——————————————-
Swift OUTPUT FIN 734 Advice of Refusal
Sender: EXPOBHBMMAN
EXPO ARAB BANK PLC
MANAMA BH

Receiver: IHRKTRISXXX
TURKIYE IHRACAT BANKASI T.A.S
ISTANBUL TR
—————————————-Message Text——————————————-
20: Sender’s TRN
2002RML2AI2A3369

21: Presenting Bank’s Reference
18208L23R109

32A: Date and Amount of Utilization
Date: 28 December 2012
Currency: USD (US DOLLAR)
Amount: #285.600,00#

33A: Total Amount Claimed
Date: 07 January 2013
Currency: USD (US DOLLAR)
Amount: #285. 600,00#

72: Sender to Receiver Information

Documents refused by us due to discrepancies stated below. We notified the applicant, we shall revert upon hearing from them.

77J: Discrepancies

  1. B/L shows additional charges to the freight not authorized under L/C.

77B: Disposal of Documents
/ HOLD /
————————————-Message Trailer——————————————–

Carrier Not Identified and Bill of Lading Not Signed As Per UCP 600 Discrepancy

Ozgur Eker (CDCS) Bill of Lading Discrepancies, Letter of Credit Discrepancies , , , ,
carrier not identified discrepancy

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.

  1. 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.

bill of lading not signed as per ucp 600 discrepancy

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.