<1> Summary
- Depends on the transportation, the level of cargo's safety is different. UCP
defines the following requisites of transportation documents per transportation
method. |
| 1. Marine transportation documents (The Article No. 23-24 of UCP) |
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| - Ocean Bill of Lading, Non-negotiable Seaway bill |
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| 2. Mail transportation documents (The Article No. 29 of UCP) |
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| - Post Receipt(PR), Certificate of Posting, Courier Receipt |
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| 3. General transportation documents (The Article No. 26-28 of UCP) |
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| - Combined Transport Document(CTD), Airway bill(AWB),
Land transportation documents (Railroad cargo way bill,
Truck company transportation cargo way bill) |
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<2> Marine transportation |
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a. Evidence of contract
b. cargo receipt(transportation goods's shipping and evidence of documents received)
c. Entitled document(The right of bill )
d. Transfer acknowledgement based on endorsement (Order bill) |
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| 2. Acceptance conditions for marine transportation documents |
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| a. Automatically accepting transportation documents |
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| - Automatically accepted by a bank if the transportation documents are equipped with the following terms |
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- Should be issued by the person in charge of transportation
(Actual Carrier) or the representative.
- Wording proving the goods on board shipping should be indicated.
- Full set of issued original transportation documents should be presented.
- Fulfil terms required by L/C. |
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| b. Transportation documents that are not rejectable for acceptance |
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| - If B/L is equipped with requisites of transportation documents which will be
accept by B/L automatically, unless L/C refuse to accept in witting, banks should accept the documents. |
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- Combined Transport Bill of Lading
- Short from B/L
- B/L displaying a place of receipt different from a shipping or a final
destination different from unloading port
- B/L issued subject to a cargo loaded in a transportation instrument like
a container. (unitized - cargo B/L)
- Intended clause B/L that added on board notation indication for on board
shipping. |
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| c. Special B/L accept by bank |
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- Through B/L : When transship is unavoidable, covering the whole sea route
by a single B/L (Almost all combine carrier uses this B/L)
- Third party B/L : B/L that display third parties as a consignee not an
exporter as in L/C (Intermediary Trade, Transfer L/C uses this B/L)
- Insurance covering Red B/L : A B/L with insurance coverage should mark
the necessary regulations with a red ink.
- Short Form N/L : B/L that omitted printing clause on the back side.
Accepting means, automatic acceptance as long as there is no specific
restrictions in L/C. |
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| d. The kinds of B/L that are refuse to be accepted by a bank in principle. |
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1. charter party B/L : If the B/L issuer is a lessee not the owner of a vessel.
2. Sailing B/L : If the operating vessel is old vessel that operates only with a
sail (carrying vessel propelled by sail only B/L),
3. Stale B/L : If presenting to a bank after more than 21 days have been
elapsed from the B/L issue date.
4. Foul B/L or Dirty B/L : If defect status is indicated in the comment
section of a B/L.
5. Forwarder's B/L issued by transportation mediator: If the drawer of B/L is
a transport agent instead of a vessel company. |
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- If indicates it as agent for (qualified for representative), it is
acceptable.
- For transportation companies, there are the shipping companies that
equipped with a vessel or without a vessel and it is called FORWARDER, NVOCC(transportation brokerage) and if coinclude a transportation contract with a transportation brokerage (shipping request(S/R)) the transportation brokerage should conclude another transportation contract with a shipping company (Re-S/R)
cf-Contractual Carrier and Actual Carrier |
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6. Intended clause B/L) or Received B/L : If the shipping date is omitted
from the actual B/L but it has wording 'intended to be on board'. If add
shipping completion after loading on board, then it is acceptable.
1~3 are, either payment is unconditionally paid or refused as long as there
is no permission provision on L/C but 4~6 are B/L that are possible to correct vice by presenting supplementing documents. |
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| e. Received B/L acceptance |
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- If a written provision requesting on board on L/C: Simple received B/L (the one without 'on board notation' ) may not be accepted.
- If there is not mention about on board but permits combined transportation:
Received B/L is acceptable. |
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| 2. B/L terms required by L/C |
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| a. full set B/L(The Sub-Article No. 23-A-iv of UCP) |
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- 3 sets of B/L are issued in general, and a vessel company use 1 set of
those to delivery cargo, an purchasing bank request full sets(3 sets) to
secure the said goods guarantee.
- If using air shipment method for transportation : Although L/C request full
set of B/L, it is possible to just present one set of AWB(for shipper)
because, on the original 3 sets of AWB, the each purpose for usage is
indicated and when shipped, a airline company do not send the full set
(3 sets of AWB) to an exporter. |
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- When receiving cargo for shipping, a vessel company indicates for any
incomplete packing condition if found any in the remark section of B/L and such B/L is called Foul B/L(Dirty B/L) which bank refuse to accept.
(The Article No. 32 of UCP)
- For Foul B/L, a Letter of Indemnity(L/I) is to be present to a vessel
company to receive a clean B/L so a bank may accept.
- L/I is a memorandum to change a foul B/L to clean B/L presented to a
vessel company by an exporter, and the reason for the detail is for a
consignee to take over all the responsibility if there is any problem caused by the damaged cargo.
- While transporting container, a vessel is to indicate an unknown clause as
"Shipper's Load & Count" in the remark section of B/L and the B/L is
consider as a Clean one (The Article No. 31 of UCP). |
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-B/L as received B/L, there are Shipped B/L(On Board B/L) are received B/L (Received B/L).
- Received B/L or Intended clause B/L : B/L issued while an export cargo is
not loaded in a transportation vessel. - Combine transportation or container carrier : On board terms are very much
mitigated to accept even received B/L.(The Sub-Article No. 32-c of UCP)
- On board B/L : It should be issued when the goods are loaded on board
but usually, it is likely to be issued at the time of arrival in another words, the controllable time CY(container yard) which is after the transported goods are delivered by the carrier.
cf. Advance issued B/L and back-dated B/L |
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| - In order to secure the negotiability of B/L, request transferable order B/L
according to an endorsement. |
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| e. For notify party, it should be either an importer or a customs broker
nominated by an importer |
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- An exporter becomes normally, when a cargo arrive, a vessel sends a
arrival notice to a Notify Party. |
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| 3. The kinds of endorsement of B/L |
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| - Indicate ".. endorsed to the order of xxBank 'Ltd". The consignee of B/L
is to be indicated in full name, and the nominated person by the
consignee's endorsement become a grantee of B/L . (Order with registering indication ) |
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| - A method to endorse in simple "order of A" or 'A or order' for endorsee
and the consignee of B/L is not to be indicate here. |
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| - Endorse after indicating "A or bearer" |
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| - If "endorsed in blank" or "blank endorsed' is indicated in L/C: Endorse bill, B/L or insurance documents without nominating a endorsee. |
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<3> Other transportation documents |
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- Air line transportation bill is only a proof of consign. Unlike B/L, it does not
have a character like marketable securities, it is issued only as registered
and received method.
- Kinds |
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1. House AWB--transportation broker issue to a shipper.
2. Master AWB--A custom for airline to issue to the transportation broker.
Be advise that if there is not representative indication for the airline company, acceptance will be refuse. (The Sub-Article No. 27-a-i of UCP) |
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- Per IATA regulation, transship of cargo is a general rule with air transportation,
therefore, even of L/C prohibits transship in L/C in written statement, banks
accepts the transportation documents if it combined the whole transportation
as one transportation documents.(The Sub-Article No. 27-c of UCP)
- Original IATA airway bill |
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- Only For shipper portion can be presented even if L/C request full
set(3 sets).
1. original 1(for carrier) 2. original 2(for consignee) 3. original 3(for shipper) |
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| b. CTD or MTD(combined(multimodel) |
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- combined transportation refers to a transportation that a cargo is transporting
using land road, sea route or waterway. Because of its special trait which
one person takes responsible to transport for the entire route, and that it
issue single transportation L/C, UCP also regulates this method separately
from marine transportation.
- Those Intended B/L, and Forwarder's B/L that are likely to be refused for
acceptance in marine transportation as a general rule, combined
transportation permit the acceptance and it takes Received B/L for granted
and also acknowledges a special case in transship(Transshipment).
(The Article No. 26 of UCP)
- The following details are the reason why the combined transportation are
handled differently from marine transportation in UCP. |
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1. The transportation documents are issued from the combine carrier taking
in charge point and as long as L/C is not requesting in written statement, it doesn't necessary need to receive on board notation.
2. The carrier that received a initial cargo takes uniform liability of the
entire transportation route.
3. Acceptable even if there is an indications "intended" related to vessel,
shipping port and unloading port. But if L/C prohibits "intended" indication or if the name of vessel, shipping port and unloading port are clearly stated : Can not be accepted if on board notation is not received in the later time.
4. Acceptable even if L/C prohibits transship in written statement.
Because combined transportation is preconditioning transship as per its
character. |
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1. Forwarder's B/L issued by a forwarder
2. FIATA B/L(international air transport association)
3. common carrier(NVOCC) B/L |
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| c. Non-negotiable seaway bill(non-negotiable marine transportation) |
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- B/L(Bill of Lading) is marketable securities for Seaway bill is a proof of documents of marine transportation that denied negotiation.
- The function is a simple consign of cargo and documents to proof
documents received.(The Article No. 24 of UCP).
- Acceptance requisites for Sea waybills |
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1. Should be issued as the carrier , a commender or a qualified
representative.
2. On the transportation form, there should be clear indication that the goods
are on board of vessel.
3. If "Intended" indication is on the vessel, port, on board section of the ransportation form, supplement this as a on board notation.
4. Original full set issued should be presented.
5. Charter or a sailor boat should not be indicated in transportation form. |
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| d. road, rail or inland waterway transport document |
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- If marine transportation is impossible due to import location is in the center
of inland, the cargos may be transport using land road or waterways.
- Requirements for the transportation documents (The Article No. 28 of UCP) |
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1. should be issued as the carrier or the qualified representative.
2. While transportation, I received of cargo date is indicated, it is regarded
as the cargo loaded date.
3. Although orignal indication is not on transportation documents,
regard it as original and accept.
4. Although transship prohibition indication is in L/C, as long as entire
transportation route is covered by the same transportation documents, the
transship prohibition exception is acknowledged. |
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| e. courier and post receipts |
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- Small cargo and documents are to be delivery by courier and post delivery
companies as a practice. In respecting the practice of circles UCP accepts
the contents. (The Article No. 29 of UCP)
- Acceptance requisites for the documents |
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- The nominated post office by L/C should stamp on a post receipt
- Post receipt date is regarded as the dispatching date. |
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- The service rendering company's name should be on the delivery receipt
by kind of stamps.
- Cargo received date should be on the receipt, ad the part is regarded
as the dispatching date. |
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| f. Transport document issued by freight forwarders |
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- Forwarder's B/L and House B/L issued by a transportation broker will be
refused by a bank for acceptance if not equipped with the special requisites
- UCP Article No. 30 regulates the acceptance requisites of the transportation
documents issued by Forwarders in the separate text. |
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1. The name of the transportation broker should be indicated as the carrier or
as a qualified representative.
2. Must meet all the terms required by L/C. |
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<4> L/G Nego (Nego shipping documents with vice)
- If there is non-conforming items in a bill of change and transportation documents
to the L/C terms, an purchasing bank may choose the following method according to the negotiation applicant credibility. |
1. Pay if payment came in after collecting a bill of change. (Collection Basis)
2. Notify the details of vice to the L/C opening bank to inquiry about Nego
condition using cable. (Cable Nego)
3. Nego after amending L/C as shipping documents.
4. Nego after L/G is requested for a refund in case if payment is rejected. |
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<5> Indicating items |
| a. Court mentioning items |
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- The name of vessel and the number of tons,
- Name of master of the ship
- The kind of cargo, weight or capacity, kinds of package, Numbers and
symbols,
- Name of a shipper or a consignee or the name of company,
- shipping port, unloading port.
- B/L prepared location, prepared date, issued sets and a seal of issuer,
- Freight charge. |
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- Voyage No.: A voyage no of a vessel that was selected by a shipping
company on voluntary.
- Notify Party.
- B/L No. : A serial number by the carrier on voluntary.
- Location to pay freight charge and foreign currency rate
- Remark : Shipping location for cargo, indicate damage and more or less
condition.
- Waive provision: Refer to the carrier's waiver clause, can in replaced with the
black clause of B/L. |
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<6> Preparation method
- Describe concentrating on combined B/L. |
a. Shipper--a shipper's name or the company name. If likely to develope
confusion, indicate address.
b. Consignee--Indicate words written in L/C.
c. Notify party--Indicated as Notify Accountee in L/C. applicant of L/C, importer
or a representative nominated by importer.
d. Ocean Vessel--Indicate the name of marine transportation vessel that
transports.
e. Port of Loading--Name of port to ship the cargo and the country name.
f. Place of Receipt--A location to receive the cargo from the carrier shipped by
a shipper.
g. Voyage No.--A voyage no of a vessel that was selected by a shipping
company on voluntary.
h. Port of Discharge--The unloading port and the name of country for the cargo.
i. Place of Delivery--Location where the carrier delivery goods to a consignee.
j. Final Destination--Indicate final destination of cargo.
k. B/L No.--A serial number by the carrier on voluntary.
l. Flag--Registered country of the vessel
m. container No.--Container No. of the cargo to be loaded.
n. Seal No.--Seal No. of the cargo that would be seal to be loaded in a
Container.
o. No. of Containers or Pkgs., Description of goods--Goods contents that are listed on a Packing List and Invoice.
p. Gross Weight, Measurement-- If the weight and the capacity measured by
registering weight company are not correspond to the Packing List and the
Invoice, attach Remark and if there is any problem with cargo, send Letter of
Indemnity : L/I) to the shipper.
q. Total Number of container or Packages(In Words)--The quantity and the
number of Full Container o goods are indicated in English. The meaning of In Words is for the B/L issuer because the goods can not be confirmed by the person for the assuming meaning that the quantity would be definite.
r. Freight and Charge--For the incidental expense statement of the goods
transportation freight, C.A.F., B.A.F., C.F.S. Charge, Wharfage are indicated in
general and for the Through B/L, Inland charge is to be indicated.
s. Revenue Tons--Between the weight and the capacity whichever one that
results with high freight charge is to be chosen for the indication.
t. Rate--Freight unit price per Revenue ton and C.F.S. Charge, Wharfage,
B.A.F., C.A.F. Percent are to be indicated.
u. Per--Per capacity or per weight, For Full Container indicate per Van.
v. Prepaid, Collect--For the export on C.I.F.term, compute fright charge in the
Prepaid section. For F.O.B. term export compute and indicate in the Collect
section.
w. Freight Prepaid At--Location where freight is to be paid for C.I.F. export term.
x. Freight Payable At--If freight charge is for a consignee to shoulder, indicate
freight paying location.
y. No. of Original B/L--Indicate the issuing sets of original B/L. |
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L/C(Letter of Credit)
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