Partial Drawings or Shipments
Clause (a): Partial drawings or shipments are allowed.
Explanation: This clause means that under a letter of credit, shipments can be made in parts. There is no requirement for the entire shipment to be made in one go. Each part of the shipment can be drawn upon separately, and the exporter can present documents for each partial shipment to claim payment.
Example: An exporter has a letter of credit for $100,000 to be shipped to a buyer. The exporter sends $40,000 worth of goods in the first shipment and $60,000 worth in the second. The exporter can present the documents for the $40,000 shipment, get paid for it, and later present the documents for the $60,000 shipment to get paid for the remaining amount.
Clause (b): A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch. If the presentation consists of more than one set of transport documents, the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment.
Explanation: If multiple sets of transport documents are presented for shipments that start on the same means of transport and are headed to the same destination, it will not be considered as partial shipments. This holds true even if the documents indicate different shipment dates, different ports of loading, or places of taking charge. The latest shipment date on any of the transport documents will be considered as the shipment date.
Example: An exporter ships goods using the same vessel but loads goods at different ports on different dates. The vessel then proceeds to the same destination. The exporter presents multiple sets of bills of lading indicating these different loading ports and dates. Since all the goods are on the same vessel going to the same destination, it is not considered a partial shipment. The latest date on the bills of lading will be the official shipment date.
Clause (b) continued: A presentation consisting of one or more sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will be regarded as covering a partial shipment, even if the means of conveyance leave on the same day for the same destination.
Explanation: If the shipment is made using multiple means of transport within the same mode (e.g., multiple trucks, ships, or planes), even if they leave on the same day for the same destination, it will be considered a partial shipment.
Example: An exporter sends goods using two different ships departing on the same day to the same destination. Each ship carries part of the total consignment. Since the shipment is on different vessels, it is considered a partial shipment even though they are headed to the same place on the same day.
Clause (c): A presentation consisting of more than one courier receipt, post receipt or certificate of posting will not be regarded as a partial shipment if the courier receipts, post receipts or certificates of posting appear to have been stamped or signed by the same courier or postal service at the same place and date and for the same destination.
Explanation: Multiple courier or postal receipts indicating shipments from the same service, stamped or signed at the same place and date for the same destination, will not be considered partial shipments. This implies that the entire consignment is viewed as a single shipment, despite being sent in separate packages.
Example: An exporter sends goods in three different packages using the same courier service. All packages are stamped at the same location and on the same date, and all are addressed to the same destination. Although there are three receipts, it will not be considered a partial shipment since all receipts show the same courier service, place, date, and destination.