LC compliance

UCP600 Article 19: Transport Document Covering at Least Two Different Modes of Transport Explanation

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UCP600 Article 19: Transport Document Covering at Least Two Different Modes of Transport

Clause (a): Requirements for Transport Document

Clause (a)(i): Indication and Signature

  • Clause: “A transport document covering at least two different modes of transport (multimodal or combined transport document), 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. Any signature by the carrier, master or agent must be identified as that of the carrier, master or agent. Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master.”
  • Explanation: The transport document must indicate the name of the carrier and be signed by the carrier, the master, or a named agent on behalf of the carrier or the master. The signature must clearly identify the signer as the carrier, master, or agent and specify on whose behalf the agent is signing.
  • Example:
  • A multimodal transport document shows the carrier as “ABC Shipping Co.” and is signed by “John Doe, Agent for ABC Shipping Co.”
  • A multimodal transport document shows the carrier as “ABC Shipping Co.” and is signed by “ABC Shipping Co.”
  • A multimodal transport document shows the carrier as “XYZ Maritime” and is signed by “Jane Smith, Master of MV Oceanic.”

Clause (a)(ii): Indication of Dispatch, Taking in Charge, or Shipped on Board

  • Clause: “indicate that the goods have been dispatched, taken in charge or shipped on board at the place stated in the credit, by:
    • pre-printed wording, or
    • a stamp or notation indicating the date on which the goods have been dispatched, taken in charge or shipped on board. The date of issuance of the transport document will be deemed to be the date of dispatch, taking in charge or shipped on board, and the date of shipment. However, if the transport document indicates, by stamp or notation, a date of dispatch, taking in charge or shipped on board, this date will be deemed to be the date of shipment.”
  • Explanation: The document must indicate that the goods have been dispatched, taken in charge, or shipped on board at the place specified in the credit. This can be shown through pre-printed wording, a stamp, or a notation indicating the date. The date of issuance is considered the date of dispatch unless another date is specified.
  • Example:
  • A multimodal B/L states “Shipped on board MV Horizon on 15th July 2024.” Date of issuance as 08th July 2024. Then 15th July 2024 will be considered as shipment date
  • A multimodal B/L with pre-printed text “Shipped on board” and the date of issuance as 20th July 2024, will have 20th July 2024 as the shipment date unless an on board notation specifies a different date.
  • A multimodal B/L states date is issuance as 08th July 2024 and does not contain any separate onboard notation then issuance date will be considered as shipment date

Clause (a)(iii): Indication of Place of Dispatch and Final Destination

  • Clause: “indicate the place of dispatch, taking in charge or shipment and the place of final destination stated in the credit, even if: a. the transport document states, in addition, a different place of dispatch, taking in charge or shipment or place of final destination, or b. the transport document contains the indication “intended” or similar qualification in relation to the vessel, port of loading or port of discharge.”
  • Explanation: The transport document must show the place of dispatch and the final destination as stated in the credit, even if it mentions other places or uses terms like “intended.”
  • Example: A document shows “Place of Dispatch: Mumbai, Final Destination: New York,” but also mentions “intended final destination: Los Angeles.” This is acceptable as the primary places match the credit terms.

Clause (a)(iv): Sole Original or Full Set

  • Clause: “be the sole original transport document or, if issued in more than one original, be the full set as indicated on the transport document.”
  • Explanation: The document must be the sole original or, if issued in multiple originals, the full set as indicated on the document.
  • Example: If a transport document states “Three originals,” all three must be presented. If only one original exists, it should be the one presented.

Clause (a)(v): Terms and Conditions of Carriage

  • Clause: “contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage (short form or blank back transport document). Contents of terms and conditions of carriage will not be examined.”
  • Explanation: The document must include or reference terms and conditions of carriage, but the content of these terms is not subject to examination.
  • Example:
  • A B/L mentions the detailed Terms and Conditions conditions in the back side of documents.
  • A B/L references “Terms and Conditions available at www.abcshipping.com.”

Clause (a)(vi): No Charter Party Indication

  • Clause: “contain no indication that it is subject to a charter party.”
  • Explanation: The document must not indicate that it is subject to a charter party.
  • Example: A document stating “Subject to charter party” is unacceptable. It must not contain such indications. Because there is a separate article available in UCP 600 for checking charter party bill of lading

Clause (b): Definition of Transhipment

  • Clause: “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.”
  • Explanation: Transhipment refers to unloading from one conveyance and reloading to another during the carriage from the dispatch point to the final destination.
  • Example: Goods are unloaded from a ship at Singapore and reloaded onto a truck to continue to the final destination. This is considered transhipment.

Clause (c)(i): Transhipment Indication

  • Clause: “A transport document may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same transport document.”
  • Explanation: The document may indicate that transhipment will or may occur as long as the entire journey is covered by one transport document.
  • Example: A document states, “Transhipment may occur at Singapore,” but it covers the entire journey from Mumbai to New York under one document. It is acceptable.

Clause (c)(ii): Acceptability Despite Prohibition

  • Clause: “A transport document indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment.”
  • Explanation: A transport document indicating possible transhipment is acceptable even if the credit prohibits transhipment.
  • Example: Even if a credit states “No transhipment allowed,” a document indicating “Transhipment may occur” is acceptable as per UCP600 Article 19.