Transhipment in letter of credit best trade solution. Oleg, a lash bill of lading relates to goods that have been shipped using lash lighter aboard ship bargescertain customers add such clauses on the lc to maybe ensure that cargo is not transhipped onto lash barges but ucp 600 article 20 c says as below. International standard banking practice for the examination. The banks ability to confirm any credit will be subject to there being an appropriate confirmation facility in place for the issuing. It is the most comprehensive online training available in letters of credit and ucp 600. The buyer should consider whether the goods can be delivered in partial. The articles in ucp 600 covering transport documents may permit transhipment even if prohibited within the credit. Hi, if the port of lading on the bill of lading is as per the port of loading of the lc, they the case you described is not a discrepancy. Ucp 600 rules changing letter of credit business for international traders. The beneficiary requests that the confirming bank purchase the documents and prepay against its undertaking. A road, rail or inland waterway transport document, however named, must appear to.
A beneficiary presents complying documents to a confirming bank under a documentary credit available by deferred payment. The bank as a confirming bank the confirmation of a documentary credit is governed by article 8 of ucp 600. For the purpose of this article, transhipment means unloading from one means of conveyance and reloading to another means of conveyance whether or not in different modes of transport during the carriage from the place of dispatch, taking in charge or shipment to the place of final destination stated in the credit. The uniform customs and practice for documentary credits ucp is a set of rules on the issuance and use of letters of credit. It should be noted that ucp 82 was not the first set of published rules to. Jul 12, 2018 transhipment articles 19 to 24 of ucp 600 allow transhipment even if the credit specifically prohibits transhipment. E18 shipment on more than one vessel is a partial shipment, even if each vessel leaves on the same day for the same destination. A ucp 600 article 20 transport document must indicate the number of originals that have been issued. Please somebody can explain to me with relevant examples to understand this sub article correctly. Ppt ucp 600 powerpoint presentation free to view id. Oct 15, 2011 20 c ii is applicable where the lc prohibits transhipment, and recognises the modern method of selfcontained cargo shipment in containers, with very little risk of cargo damage where transhipment occurs i. Like ucp 500 did, ucp 600 will allow a bill indicating that the goods will or may be transhipped, provided the entire carriage is covered by one. A nonnegotiable sea waybill, however named, must appear to. Care should be taken however and it may be easier to permit transhipment, as transport is a complex business these days.
Pdf ucp 600 rules changing letter of credit business for. It explains how the practices articulated in ucp 600 are applied by documentary practitioners. Letters of credit checklist and guide for export sales executives download pdf edition file size. Letter of credit and transhipment in international trade. Reasons behind ucp600 article 20 transhipment best trade. Exporter guide to documentary credits under ucp 600 may be in a position to advise the reasons to you. An accompaniment to the ucp 600 is the international standard banking practice for the examination of documents under documentary credits isbp, icc publication 745. Road transport document road consignment note is covered under article 24 of ucp 600. We had one similar case few days back wherein the bl mentioned transhipment occurring at singapore with all conditions as detailed above and we had quoted that as a discrepancy. The uniform customs and practice for documentary credits ucp is a set of rules on the this practice has been standardized by the icc international chamber of commerce by application of the principles contained in the isbp, including subsequent revisions thereof, will. This publication and the ucp should be read in their entirety and not in isolation. The 39 articles of ucp 600 are a comprehensive and practical working aid to bankers, lawyers, importers, and exporters, transport executives, educators, and everyone involved in letter of credit transactions worldwide. Aug 09, 2015 when a bill of lading does not indicate unloading and reloading between these two ports, it is not transhipment in the context of the credit and ucp 600 subparticles 20 b and c. Application of ucp the uniform customs and practice for documentary credits, 2007 revision, icc publication no.
The eucp shall apply where the credit indicates that it is subject to the eucp eucp credit. A free powerpoint ppt presentation displayed as a flash slide show on id. It assists with understanding whether a document complies with the terms of letters of credit. Transhipment criterion based on ucp 600 letter of credit bill of. Sep 03, 2015 ucp 600 comes into effect on 01 july 2007. Letters of credit checklist and guide for export sales. This was one of the questions asked by a reader of this blog a basic but an important question simply put, transhipment the act of offloading a container from one ship and loading it onto another ship. Pdficc uniform customs and practice for documentary. As ucp 600 only refers to a carrier, master, owner, charterer or any of their agents, in the context of. Ucp 600 is prepared by international chamber of commerces icc commission on banking technique and practice. International standard banking practice icc publication 745.
In the light of these provisions, it is up to the banks to act prudently as per instructions of applicant and to allow transhipments wherever credit allows combined transport. New online training in letters of credit and ucp 600 icc. Transhipment criterion based on ucp 600 letter of credit. Ucp 600 is the latest version of the rules that govern letters of credit transactions worldwide. Where the following terms are used in the ucp, for the purposes of applying the ucp to an electronic record presented under an eucp credit, the term. Aug 04, 2008 ucp 600 the latest revision of ucp is the sixth revision of the rules since they were first promulgated in 1933. A transport document indicating that transhipment will or may take. Banks can now accept an insurance document that contains reference to any exclusion clause, refer to subarticle. Uniform customs and practice for documentary credits. Ucp 600 and letters of credit tfg 2020 guide free infographic.
Transport document covering at least two different modes of transport. As per swift message format, this clause is mandatory. During the revision process, notice was taken of the considerable work that had been completed in creating the international standard banking practice for the examination of documents under documentary credits isbp, icc publication 645. International standard banking practice isbp 745 is the most up to date, comprehensive guide to handling and examining trade documents under documentary credits. Ucp 600 article 23 to article 27 icc ucp, lc rules, letter of credit, ucp 600, ucp 600 articles, ucpdc ucp 600 article 23 air transport document a. This letter of credit definition is taken from the ucp 600 icc uniform customs and practice for documentary credits which is the latest version of the rules published by icc international chamber of commerce regulating the letters of credit operations all around the world. In accordance with ucp 600, which of the following may be the correct courses of action for the confirming bank.
For the purpose of this article, transhipment means unloading from one vessel and reloading to another vessel during the carriage from the port of loading to the port of discharge stated in the credit. Like ucp 500 did, ucp 600 will allow a bill indicating that the goods will or may be transhipped, provided the entire carriage is covered by one and the same bill. While going through above article, i have little bit understanding problem about this particular subarticle. Proper completion of bills of lading involving transhipment. To comply with ucp 600 article 20, a bill of lading must appear to cover a porttoport shipment but need not be titled marine bill of lading, ocean bill of lading, porttoport bill of lading or similar. Condition of no transshipment in letter of credit no trans. Ucp 600 by icc the uniform customs practices for documentary credits or foreign trade. Ucp 600 article 23 air transport document date in a. If issued in more than one original, all originals are required.
A copy can be downloaded for personal noncommercial. However, a bill of lading showing the port of transhipment as port of discharge is not acceptable under ucp 600 because the bankers fear that this might mean that carriers responsibility for cargo is limited only to the period up to transhipment so that if the cargo is lost or damaged during the carriage from the port of transhipment. Ucp 600 article 20 to article 22 icc ucp, lc rules, letter of credit, ucp 600, ucp 600 articles, ucpdc ucp 600 article 20 bill of lading a. It is published by the international chambers of commerce icc and the latest version of this publication is ucp600. Some 1115% of international trade utilizes letters of credit, totaling over a trillion dollars us each year. A bill indicating that transhipment will or may take place is also acceptable under ucp 600, even if the credit prohibits transhipment, but only if the goods have been shipped in a. Transhipment criterion based on ucp 600 free download as pdf file. For the purpose of this article, transhipment means unloading from one means of conveyance and reloading to. International standard banking practice icc publication 745 a selection of screens from the 12 segments of the isbp. Ucp 600 how the new rules on documentary credits may af. Mentor 600 contains over 12 hours of online training and is designed to be a fast track to proficiency in letter of credit work.
Ramlan 9 ginting, 2007 availability of lc under ucp 600, article 6. We recommend becoming familiar with the key clauses and their relevance or impact for your practices and procedures for conducting your international trade. Certified documentary credit specialist cdcs ucp 600. Ucp 600 1 foreword this revision of the uniform customs and practice for documentary credits commonly called ucp is the sixth revision of the rules since they were first promulgated in 1933. Allow one of the worlds leading experts to steer you clear of a rough experience with ucp 600 transport documents.
Article pdf available in international journal of economics and business research 12 january 2009 with 15,401. International standard banking practice isbp for the. Uniform customs and practice for documentary credits ucp 600 is. Transhipment, partial shipment and determining the. Icc uniform customs and practice for documentary credits article 1 application of ucp pasal 1 the uniform costums and practice for documentary credits 2007 revision, icc publication no. The ucp remain the most successful set of private rules for trade ever developed. Exporter guide to documentary credits under ucp 600 introduction with the implementation of ucp 600 a little over 2 years ago, this is an opportune time to reinforce some of the principles that should be adopted by exporters when handling a documentary credit and the subsequent presentation of documents.
An invaluable source of practical information for trade finance professionals and academics. A topic that we have seen emerging over the last 18 months revolves around the possibility or requirement for a revision of ucp 600. Its full name is 2007 revision of uniform customs and practice for documentary credits, ucp 600, and icc publication no. The eucp supplements the uniform customs and practice for documentary credits 2007 revision, icc publication no.
It is the fruit of more than three years of work by the iccs commission on banking technique and practice. The ucp 600 are the latest revision of the uniform customs and practice for documentary credits. Cdcs video lectures ucp 600 article 19 part 4 multimodal. Credits that are issued and governed by ucp 600 will be interpreted in line with the. Transhipment and partial shipment 104 transhipment is the. Suarticle a iii permits the transport document to indicate other. Knowledge and skills that have traditionally taken years of experience to acquire can now be attained in a matter of days. G1 when there is a requirement in a credit for the presentation of a charter party bill of lading, or when 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 to be applied in the examination of that document. Ucp 600 the latest revision of ucp is the sixth revision of the rules since they were first promulgated in 1933. Some 1115% of international trade utilizes letters of. The following points need attention in this regard.
For the purpose of this article, transhipment means unloading and reloading from one aircraft to another aircraft during the course of carriage from the airport of departure to the airport of destination stipulated in the credit. The 39 articles of ucp 600 are a comprehensive and practical working aid to bankers, lawyers, importers, and exporters, transport executives, educators, and everyone involved in letter of credit. In that case the beneficiary of the lc the seller must familiarize themselves with article 20c ucp 600 according to which, a bl that indicates that transhipment will or may take place is acceptable, even if the lc prohibits transhipment, as long as the cargo has been shipped in a container, trailer or lash barge as evidenced by the bl. A free powerpoint ppt presentation displayed as a flash slide show on. Ucpdc 600uniform customs and practice for documentary credits 600 ucpdc ucpdc 600 bangla ucpdc article 1 application of ucp the uniform customs and practice for documentary credits, 2007 revision, icc publication no. Transhipment and partial shipment 104 transhipment is the unloading from one from ucp 600 at university of chittagong. Ucp 600 and the opinions and decisions of the icc banking commission. Lc must state the bank with which it is available, or lc may be available with any bank. Ucp 600 are the latest revision of the uniform customs and practice that. As a means of creating a relationship between the ucp and isbp, the introduction to ucp 600, states. When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank determines that a presentation does not comply, it may refuse to honour or negotiate. Practice for documentary credits, the ucp 600, by a unanimous vote. Between us, we have been involved in numerous icc working groups drafting, revising and publishing icc rules and standards for the past 25 years. Global rules icc international chamber of commerce.