Ravi Mehta
1945-2007

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  The Power of arguments

by Kim Christensen
 


 

  Exclusively for lcviews.com Kim Christensen has written an 8 page analysis on the topic "place of receipt different from the port of loading".

Also included are expert comments from Jia Hao, Bogdan Ilie and ND George
 

[return to Place of receipt <> port of loading]


 
Download:

Kim Christensen:
The Power of arguments
- An analysis of UCP 600 article 20,a,iii versus UCP 500 article 23,a,ii
(PDF - 85 kb)


 

 

Expert comments:
 


ND George (see bio)

It was a well presented piece of article that you wrote on the subject. Also, the piece from the Chinese banker was hilarious. Clearly a room has been provided in UCP for a potential for dispute to the benefit of consultants (I am not one of them or at least not yet) who generally make their money out of other people’s misery!  Honestly, I was under the impression that the old article was no longer applicable and in practical terms the bankers were not to be concerned with the place of receipt issue as long as port of shipment and on board is present. I am learning. Learning never stops, is it not? Now reading Gary’s comments, let me give a different spin to the issue.

  • If place of receipt is different but no vessel name is given against it (e.g. only mentions ‘rail’ or ‘truck’), place of receipt will be ignored, provided Port of shipment box is filled in with the stipulated port and the B/L is pre-printed as “On Board” and if not there is a separate On Board notation with a date only.  I take this position because in shipping trade “On Board” is specific to sea shipment and not a term used in overland conveyance. So, there is no confusion whether the on board notation relates to loading on truck or a vessel.

 

  • If there is vessel name appearing against place of receipt and there appears vessel name in the port of loading as well i.e. two vessel names are there in the B/L, then the on board notion should have vessel name and date in order to satisfy the requirement that the presented document is a port to port B/L from the port of loading mentioned in the credit.


Jia Hao (see bio)
 

It is surprising to know that the drafting group of UCP600 did not intend to change the practice stipulated in UCP500 Art 23(a)(ii) although this article is clearly removed from the UCP600.

It is dangerous and unreasonable when they insist the "extended on board notation" while there is no such requirement/stipulation in UCP600. It will cause great troubles when it is challenged in the court, because at least UCP600 requires nothing in clear wording about such extended on board notation.

From common sense when compared UCP500 with UCP600 as well as ISBP subject to UCP500 with ISBP subject to UCP600 the requirement for such extended on board notation has been clearly removed from the UCP600.

It is plain and easy for a reasonable person to understand and interpret UCP600 as changing the practice of UCP500 which requires extended on board notation.

However, from perspective of transport practice, as explained in ICC R282 and the Argument 2 by Mr. Gary Collyer, the on board notation possibly relates to being on board from place of receipt another carrier rather than the vessel in port of loading, and the on board date will be possibly the date of leaving from the place of receipt instead of the port of loading stipulated in the credit. However, to my knowledge, in most cases the on board notation on a bill of lading which indicates clearly the port of loading and only one vessel just relates to the vessel leaving from the port of loading. That is why I accept the UCP500 Art 23(a)(ii) to be removed considering UCP just covers common practice. Nonetheless, the prudent way is to require the on board notation to state clearly the on board vessel at the port of loading, and in my opinion, it is improper for the drafting group to remove the Art 23a(ii) requirement and ISBP (subject to UCP500) paragraph 82 if they have no idea of changing the practice.

And congratulations for you providing us with a good article with logical analyses from full multi-perspectives.


Bogdan Ilie (LC Specialist from Romania)

It is indeed very welcome and I think you pointed very well all the issues.

If you don't mind I wish to share with you my questions.

Mr.Collyer wrote that "the structure of this article should reflect the role of a bill of lading i.e. to cover shipment from a port to a port. On this basis...was seen to actually encourage a bill of lading to evidence pre-carriage (whereas if this were the intention, the credit should have called for a combined or multimodal type document)"

I understand that the intention was to issue an article exclusively for a port-to-port bill of lading. In such a case why the Drafting Group didn't just act so, stating that a port-to-port bill of lading MUST NOT evidence any place/port of receipt and/or of final destination even if an on board notation indicating the port of loading and vessel's name is stated separately ?! Wouldn't it have been better and easier to do it so?

At least the traders would have known that if any place/port of receipt and/or final destination will be involved the LC will not ask for a b/l subject to art.20 - port-to-port bill of lading.

This is the impression I have after reading Mr.Collyers arguments.

I might be very, very wrong but I'm still wondering: Was this really the intention or is just an excuse offered as a reply to the many questions raised?

Now we have the UCP600's article 20(a)(iii), and for me is crystal clear: There is nothing to interpret as Mr. Jiao Hao very well pointed out.