Clean on Board Bill of Lading

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andibiola
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Joined: 08/18/2008
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Dear LC Experts,

 

I have an L/C requesting: 'Full set clean on board bill of lading made out to ...'

 

Beneficiary presented transport document with header 'Ocean Bill of Lading'. However it shows:

Port of Discharge: Rotterdam

Place of Delivery: Lisbon

 

I understand that UCP600 Art.27 said that 'Clean' only refer to undefective condition of the goods or their packaging.

 

What I need to know is whether I should automatically clarify the requirement as a Marine/Ocean Bill of Lading (as per UCP600 Art.20), or since the lack of clear condition, I may assume that it will refer to all transport document related articles (i.e Art.19-22).

 

Thanks for your kind explanation.

 

Andy

Mohammed Imam
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Joined: 08/25/2008
Re:clean on board bill of lading

Dear Andy

In such case Marine/ocean bill of lading will meet the requirment of the L/C  and article 20 of UCP 600 will apply.

Concerning the word "Clean" the L/C experts gave a complet explanation and clarification.

Regards

Mohammed Imam

Frammi
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Joined: 08/17/2007
Dear Andy please clarify your question more precisely

If your questiuon is only whether  a clean transport B/L needs a special declaration as clean or not showing any defects it is no!

"Clean" is defined in art. 27 of UCP 600:

"Article 27 Clean Transport Document

A bank will only accept a clean transport document. A clean transport document is one bearing no clause or notation expressly declaring a defective condition of the goods or their packaging. The word "clean" need not appear on a transport document, even if a credit has a requirement for that transport document to be "clean on board".

Transport documents are the docs described in art. 19 to 26 of UCP 600.

Para 19 of ISBPs 681 rules:

"19 Some documents commonly used in relation to the transportation of goods, e.g., Delivery Order, Forwarder's Certificate of Receipt, Forwarder's Certificate of Shipment, Forwarder's Certificate of Transport, Forwarder's Cargo Receipt and Mate's Receipt, do not reflect a contract of carriage and are not transport documents as defined in UCP 600 articles 19-25. As such, UCP 600 sub-article 14(c) would not apply to these documents. Therefore, these documents will be examined in the same manner as other documents for which there are no specific provisions in UCP 600, i.e., under sub-article 14(f). In any event, documents must be presented not later than the expiry date for presentation as stated in the credit."

   -Each long journey starts with a small step-

Best regards

Frammi

andibiola
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Joined: 08/18/2008
Clean on board bill of lading

Dear Frammi,

 

My problem is whether I should automatically classify the Bill of Lading required as ocean/marine bill of lading, or I may accept other type of bill of lading (i.e. Multimodal b/l, sea waybill, charter party b/l) as well.

If I treat the bill of lading as an ocean bill of lading, then the condition of:

Port of Discharge: Rotterdam

Place of Delivery: Lisbon

will be unacceptable, and I may consider it as a discrepant document, isn't it? Or should I accept it as a multimodal bill of lading, despite of the L/C requirement?

Thanks,

Andy

Frammi
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Joined: 08/17/2007
Ocean B/L

Dear Andy,

As long as the required stipulations of the credit and of Art. 20 of UCP 600 are fulfilled, you could also accept a document being titled "öjsälfkajsdfkjdhskgj ehsdo" or showing a master B/L no. or being titled "House B/L"

      -Each long journey starts with a small step-

Best regards

Frammi

manaadiar's picture
manaadiar
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Joined: 12/13/2008
Clean on board bill of lading

Hi Andy, in general, almost all banks require an "ocean bill of lading".. This is generally the bill of lading issued by the actual carrier who carries the cargo.. Not the freight forwarder or indenting agent, but the actual carrier..

In this scenario generally house bills of ladings and other types are not allowed.. In the case of an L/C seaway bills are also not allowed because that is in general issued for shipments between company to company where they have an internal arrangement for settling the monies and do not involve and L/C or banks..

 

Regards

Hariesh Manaadiar

http://theworldofshipping.wordpress.com

http://shippinginsouthafrica.wordpress.com

andibiola
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Joined: 08/18/2008
Clean on board bill of lading

Hi All,

Thanks for your kind replies.

Cheers,

Andy

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