| The contents of credit states, that it should be carried out by multimodal transport of the intended vessel. Upon receiving a shipping document, there was a clause "May loaded on deck" and "the unknown clause" for quantity and also, the shipper and the beneficiary's name was inconsistent. So the payment refusal notification was made.
Case study
1. On deck for the container shipping
According to the U.C.P., article indicating for the two shipping method in original B/L "Either may be carried on Deck or will be carried" are to be refused. But the shipping documents are acceptable if it states in a provision which reads "The goods may be carried on deck". (The Sub-Article 31(I) of U.C.P 500)
2. Unknown clause in original B/L
The unknown clauses within the credit, which is a document that doesn't have prohibition wording in the credit should accept clauses such as "shipper's load and contain"or "said by shipper to contain". (The Sub-Article 31(ii)of U.C.P 500). This clause means, a shipper loaded products and confirmed so that the recorded contents by forwarder and the shipper is recognized as is.
3. The title of shipper and the beneficiary
In case if products that are in transport is to be sold to the third party, the person taking over the products but not a shipper may issue a original B/L as a beneficiary, and sometimes, a freight forwarder can issue a master B/L. At this time, the actual shipper and the beneficiary can be inconsistent, and such shipping documents should be accepted. (The Sub-Article 31(iii) of U.C.P 500)
Conclusion
Payment rejection for this case is reasonable because this is a multimodal transport based on the container transportation and it has inconsistent shipper's name, beneficiary's name and unknown clause such as on deck carried.
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