International Standard Banking Practice

Introduction

International Standard Banking Practice (ISBP) first approved by the ICC Banking
Commission in 2002 (Publication 645) and updated in 2007 (Publication 681), has
developed into an invaluable aid to banks, corporates, logistics specialists and
insurance companies alike, on a global basis. Participants in ICC seminars and
workshops continue to indicate that rejection rates have decreased over the past 11
years, and it would be appropriate to acknowledge that a major contributing factor
is the application of the practices detailed in ISBP.

At the time ISBP Publication 645 was approved by the Banking Commission it was
stated by a number of national committees that its application had no relationship
with UCP 500, mainly due to UCP 500 having been implemented some 8 years
previous. With the approval of UCP 600 in October 2006, it became necessary to
provide an updated version of the ISBP. It is emphasized that this was an updated
version as opposed to a revision of ICC Publication 645. This publication is the first
revision of Publication 645.

As a means of overcoming the concerns expressed for Publication 645, and to

create a relationship between the UCP and ISBP, the introduction to UCP 600,
states: "During the revision process, notice was taken of the considerable work that
had been completed in creating the International Standard Banking Practice for the
Examination of Documents under Documentary Credits (ISBP), ICC Publication 645.
This publication has evolved into a necessary companion to the UCP for determining
compliance of documents with the terms of letters of credit. It is the expectation of
the Drafting Group and the Banking Commission that the application of the
principles contained in the ISBP, including subsequent revisions thereof, will
continue during the time UCP 600 is in force. At the time UCP 600 is implemented,
there will be an updated version of the ISBP to bring its contents in line with the
substance and style of the new rules."

The comments appearing in the introduction to UCP 600 have equal value today
with this revision of the ISBP. A number of the practices that are described herein
have not changed, materially or at all, since their inclusion in Publication 645.

The international standard banking practices documented in this publication are

consistent with UCP 600 and the Opinions and Decisions of the ICC Banking
Commission, with the exception of Opinions R751 and R766 for which ICC will make
a separate announcement.

It is important to note that this document does not amend UCP 600. It explains how
practices articulated in UCP 600 are to be applied by documentary credit
practitioners. This publication and the UCP should be read in their entirety and not
in isolation. To emphasize this point, paragraph i. of Preliminary Considerations
reads "This publication is to be read in conjunction with UCP 600 and not in
isolation." It is, of course, recognized that the law in some countries may compel a
different practice than those stated here.

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No single publication can anticipate all the terms or the documents that may be
used in connection with documentary credits or their interpretation under UCP 600
and the standard practice it reflects. However, the Drafting Group have reviewed
and revised this publication to conform to UCP 600.

It should be noted that any term in a documentary credit that modifies or excludes
the applicability of a provision of UCP 600 may have an impact on international
standard banking practice. Paragraph ii. of Preliminary Considerations emphasizes
this point "The practices described in this publication highlight how the articles of
UCP 600 are to be interpreted and applied, to the extent that the terms and
conditions of the credit, or any amendment thereto, do not expressly modify or
exclude an applicable article in UCP 600." This principle is implicit throughout this
publication. Where examples are given, these are solely for the purpose of
illustration and are not exhaustive.

In a similar vein, ISBP cannot anticipate situations created by poorly or

inappropriately drafted credits and the Drafting Group have been diligent in not
condoning such issues. The need for care at the application and issuance stage
under Preliminary Considerations and the paragraphs covering "Expressions not
defined in UCP 600" have been extended and refined.

This publication reflects international standard banking practice for all parties to a
documentary credit. Since applicants' obligations, rights and remedies depend upon
their undertaking with the issuing bank, the performance of the underlying
transaction and the timeliness of any objection under applicable law and practice,
applicants should not assume that they may rely on these provisions in order to
excuse their obligations to reimburse the issuing bank.

The incorporation of this publication into the terms of a documentary credit is

deemed inappropriate, as the requirement to follow agreed practices is implicit in
UCP 600.

The Drafting Group that brought this important text to fruition deserves special
mention. Their names are listed below:

R.V. Balasubramani, Director - Senior Advisor, Center of Excellence & Quality

Management, Global Trade Finance, BNP Paribas, India

Graham Christiansen, Regional Manager Business Risk, Global Trade and

Receivables Finance, Europe, HSBC Bank plc, UK

Carlo Di Ninni, Consultant to ICC Italy, former Consultant to Italian Bankers

Association, Italy

Wolfgang Heiter, (retired), Deutsche Bank, Germany

Ed Jongenelen, Managing Director, Energy, Commodities & Transportation

Services, ABN AMRO, The Netherlands

Iqbal Ibrahim Karmally, Senior Vice President, Head of Trade Finance, Sharjah
Islamic Bank, UAE
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David Meynell, Owner, TradeLC Advisory, Ex-Deutsche Bank, UK

Rene Mueller, Director, Credit Suisse AG, Switzerland

Kim Sindberg, Trade Finance Consultant, Sindberg Consult, Denmark

Charnell C. Williams, CDCS, Director, Citi Global Trade Services Product Manager,
USA

Zhongmin Zha, Deputy General Manager, Branch Manager of Beijing Branch, Head
of China Wholesale Banking, CITIC Bank International (China) Limited, China

The Drafting Group's appreciation is also due for the support, input and guidance
provided by the ISBP Consulting Group throughout this revision process and that
operated under the chairmanship of John Turnbull (UK) and King Tak Fung (Hong
Kong).

Gary Collyer
Chair, ISBP Drafting Group,
Managing Director, Collyer Consulting LLP, UK
April 2013

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PRELIMINARY CONSIDERATIONS

ISBP

Paragraph 1 to 7

Scope of the publication

i) This publication is to be read in conjunction with UCP 600 and not

in isolation.

ii) The practices described in this publication highlight how the

articles of UCP 600 are to be interpreted and applied, to the extent
that the terms and conditions of the credit, or any amendment
thereto, do not expressly modify or exclude an applicable article in
UCP 600.

The credit and amendment application, the issuance of the credit

and any amendment thereto

iii) The terms and conditions of a credit and any amendment

thereto are independent of the underlying sale or other contract
even if the credit or amendment expressly refers to that sale or
other contract. When agreeing the terms of the sale or other
contract, the parties thereto should be aware of the ensuing
implications for the completion of the credit or amendment
application.

iv) Many of the problems that arise at the document examination

stage could be avoided or resolved by the respective parties
through careful attention to detail in the credit or amendment
application and issuance of the credit or any amendment thereto.
The applicant and beneficiary should carefully consider the
documents required for presentation, by whom they are to be
issued, their data content and the time frame in which they are to
be presented.

v) The applicant bears the risk of any ambiguity in its instructions

to issue or amend a credit. An issuing bank may, unless the
applicant expressly instructs to the contrary, supplement or
develop those instructions in a manner necessary or desirable to
permit the use of the credit or any amendment thereto. An issuing
bank should ensure that any credit or amendment it issues is not
ambiguous or conflicting in its terms and conditions.

vi) The applicant and issuing bank should be fully aware of the
content of UCP 600 and recognize that articles such as 3, 14, 19,
20, 21, 23, 24, 28 (i), 30 and 31 define terms in a manner that may
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produce unexpected results. For example, a credit requiring
presentation of a bill of lading and containing a prohibition against
transhipment will, in most cases, have to exclude UCP 600 sub-
article 20 (c) to make the prohibition against transhipment
effective.

vii) A credit or any amendment thereto should not require

presentation of a document that is to be issued, signed or
countersigned by the applicant. If, nevertheless, a credit or
amendment is issued including such a requirement, the beneficiary
should consider the appropriateness of such a requirement and
determine its ability to comply with it, or seek a suitable
amendment.

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GENERAL PRINCIPLES

ISBP

Paragraph A1 to A41

Abbreviations

A1) Generally accepted abbreviations, such as, but not limited to, "Int'l"
instead of "International", "Co." instead of "Company", "kgs" or "kos"
instead of "kilograms" or "kilos", "Ind." instead of "Industry", "Ltd" instead
of "Limited", "mfr" instead of "manufacturer" or "mt" instead of "metric
tons" may be used in documents in substitution for a word or vice versa. A
credit that includes an abbreviation in its text allows a document to show
the same abbreviation or any other abbreviation that has the same
meaning, or to show the complete spelling of the word or vice versa.

A2) a. Virgules (i.e., slash marks "/") may result in different meanings and
should not be used as a substitute for a word. If, nevertheless, a virgule is
used and no context is apparent, this will allow the use of one or more of
the options. For example, a condition in a credit stating "Red/Black/Blue"
with no further clarification will mean only Red or only Black or only Blue or
any combination of them.

b. The use of a comma when indicating a range of data in a credit such as

ports of loading or discharge or countries of origin, may result in different
meanings and should not be used as a substitute for a word. If,
nevertheless, a comma is used and no context is apparent, this will allow
the use of one or more of the options. For example, when a credit allows
partial shipment and indicates the port of loading information as "Hamburg,
Rotterdam, Antwerp" with no further clarification, this will mean only
Hamburg or only Rotterdam or only Antwerp or any combination of them.

Certificates, Certifications, Declarations and Statements

A3) When a certificate, certification, declaration or statement is required by

a credit, it is to be signed.

A4) Whether a certificate, certification, declaration or statement needs to be

dated will depend on the type of certificate, certification, declaration or
statement that has been requested, its required wording and the wording
that appears within the document.

For example, when a credit requires the presentation of a certificate issued

by the carrier or its agent stating that the vessel is no more than 25 years

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old, the certificate may evidence compliance by indicating:

a. the date or year the vessel was built, and such date or year is no more
than 25 years prior to the date of shipment or the year in which shipment
was effected, in which case a date of issuance is not necessary, or

b. the wording as stated in the credit, in which case a date of issuance is

required, thereby certifying that as of that date the vessel was not more
than 25 years old.

A5) When a certification, declaration or statement is to appear in a

document which is to be signed and dated, it does not require a separate
signature or date when the certification, declaration or statement appears to
have been given by the same entity that issued and signed the document.

Copies of transport documents covered by UCP 600 articles 19-25

A6) a. When a credit requires the presentation of a copy of a transport

document covered by UCP 600 articles 19-25, the relevant article is not
applicable, as these articles only apply to original transport documents. A
copy of a transport document is to be examined only to the extent expressly
stated in the credit, otherwise according to UCP 600 sub-article 14 (f).

b. Any data shown on a copy of a transport document, when read in context

with the credit, the document itself and international standard banking
practice, need not be identical to, but must not conflict with, data in that
document, any other stipulated document or the credit.

c. Copies of transport documents covered by UCP 600 articles 19-25 are not
subject to the default presentation period of 21 calendar days stated in UCP
600 sub-article 14 (c) or any presentation period stated in the credit, unless
the credit explicitly states the basis for determining such presentation
period. Otherwise, a presentation may be made at any time, but in any
event no later than the expiry date of the credit.

Correction and alteration ("correction")

A7) a. i. Any correction of data in a document issued by the beneficiary,

with the exception of drafts (see paragraph B16)), need not be
authenticated.

ii. When a document issued by the beneficiary has been legalized, visaed,
certified, etc., any correction of data is to be authenticated by at least one
of the entities that legalized, visaed or certified, etc., the document. Such
authentication is to indicate the name of the entity authenticating the
correction either by use of a stamp incorporating its name, or by the
addition of the name of the authenticating entity accompanied by its
signature or initials.

b. i. Any correction of data in a document, other than in a document issued

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by the beneficiary, is to appear to have been authenticated by the issuer or
an entity acting as agent, proxy or for [or on behalf of] the issuer. Such
authentication is to indicate the name of the entity authenticating the
correction either by use of a stamp incorporating its name, or by the
addition of the name of the authenticating entity accompanied by its
signature or initials. In the case of authentication by an agent or proxy, the
capacity of acting as agent or proxy for [or on behalf of] the issuer is to be
stated.

ii. When a document other than one issued by the beneficiary has been
legalized, visaed, certified, etc., any correction of data is, in addition to the
requirements of paragraph A7) (b) (i), to be authenticated by at least one of
the entities that legalized, visaed or certified, etc., the document. Such
authentication is to indicate the name of the entity authenticating the
correction either by use of a stamp incorporating its name, or by the
addition of the name of the authenticating entity accompanied by its
signature or initials.

c. Any correction of data in a copy document need not be authenticated.

A8) When a document other than one issued by the beneficiary contains
more than one correction, either each correction is to be authenticated
separately, or one authentication is to indicate that it applies to all the
corrections. For example, when a document issued by XXX shows three
corrections numbered 1, 2 and 3, one statement such as "Correction
numbers 1, 2 and 3 authenticated by XXX" or similar, together with the
signature or initials of XXX, will satisfy the requirement for authentication.

A9) The use of multiple type styles, font sizes or handwriting within the
same document does not, by itself, signify a correction.

Courier receipt, post receipt and certificate of posting in respect of

the sending of documents, notices and the like

A10) When a credit requires the presentation of a document as evidence of

sending documents, notices and the like to a named or described entity, in
the form of a courier receipt, post receipt or certificate of posting, such
document is to be examined only to the extent expressly stated in the
credit, otherwise according to UCP 600 sub-article 14 (f) and not under UCP
600 article 25.

Dates

A11) a. Even when a credit does not expressly so require:

i. drafts are to indicate a date of issuance;

ii. insurance documents are to indicate a date of issuance or effectiveness of

the insurance coverage as reflected in paragraphs K10) (b) and K11); and

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iii. original transport documents, subject to examination under UCP 600
articles 19-25, are to indicate a date of issuance, a dated on board notation,
a date of shipment, a date of receipt for shipment, a date of dispatch or
carriage, a date of taking in charge or a date of pick up or receipt, as
applicable.

b. A requirement that a document, other than a draft, insurance document

or original transport document, be dated will be satisfied by the indication of
a date of issuance or by reference in the document to the date of another
document forming part of the same presentation (for example, by the
wording "date as per bill of lading number xxx" appearing on a certificate
issued by a carrier or its agent) or a date appearing on a stipulated
document indicating the occurrence of an event (for example, by the date of
inspection being indicated on an inspection certificate that otherwise does
not contain a date of issuance).

A12) a. A document, such as, but not limited to, a certificate of analysis,
inspection certificate or fumigation certificate, may indicate a date of
issuance later than the date of shipment.

b. When a credit requires a document to evidence a pre-shipment event (for

example, "pre-shipment inspection certificate"), the document, either by its
title, content or date of issuance, is to indicate that the event (for example,
inspection) took place on or prior to the date of shipment.

c. When a credit requires a document such as, but not limited to, an
"inspection certificate", this does not constitute a requirement that the
document is to evidence a pre-shipment event, and it need not be dated
prior to the date of shipment.

A13) A document indicating a date of issuance and a later date of signing is

deemed to have been issued on the date of signing.

A14) a. When a credit uses phrases to signify time on either side of a date
or an event, the following shall apply:

i. "not later than 2 days after (date or event)" means a latest date. If an
advice or document is not to be dated prior to a specified date or event, the
credit should so state.

ii. "at least 2 days before (date or event)" means that an act or event is to
take place not later than 2 days before that date or event. There is no limit
as to how early it may take place.

b. i. For the purpose of calculation of a period of time, the term "within"

when used in connection with a date or event excludes that date or the
event date in the calculation of the period. For example, "within 2 days of
(date or event)" means a period of 5 days commencing 2 days prior to that
date or event until 2 days after that date or event.

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ii. The term "within" when followed by a date or a reference to a
determinable date or event includes that date or event date. For example,
"presentation to be made within 14 May" or "presentation is to be made
within credit validity (or credit expiry)" where the expiry date of the credit is
14 May, means 14 May is the last day upon which presentation is allowed,
provided that 14 May is a banking day.

A15) The words "from" and "after" when used to determine a maturity date
or period for presentation following the date of shipment, the date of an
event or the date of a document, exclude that date in the calculation of the
period. For example, 10 days after the date of shipment or 10 days from the
date of shipment, where the date of shipment was 4 May, will be 14 May.

A16) Provided that the date intended can be determined from the document
or from other documents included in the presentation, dates may be
expressed in any format. For example, the 14th of May 2013 could be
expressed as 14 May 13, 14.05.2013, 14.05.13, 2013.05.14, 05.14.13,
130514, etc. To avoid any risk of ambiguity, it is recommended that the
month be stated in words.

Documents and the need for completion of a box, field or space

A17) The fact that a document has a box, field or space for data to be
inserted does not necessarily mean that such box, field or space is to be
completed. For example, data are not required in the box titled "Accounting
Information" or "Handling Information" commonly found on an air waybill.
Also see paragraph A37) in respect of the requirements for a signature to
appear in any box, field or space.

Documents for which the UCP 600 transport articles do not apply

A18) a. Documents commonly used in relation to the transportation of

goods, such as but not limited to, Delivery Note, Delivery Order, Cargo
Receipt, Forwarder's Certificate of Receipt, Forwarder's Certificate of
Shipment, Forwarder's Certificate of Transport, Forwarder's Cargo Receipt
and Mate's Receipt are not transport documents as defined in UCP 600
articles 19-25. These documents are to be examined only to the extent
expressly stated in the credit, otherwise according to UCP 600 sub-article 14
(f).

b. i. For documents referred to in paragraph A18) (a), a condition of a credit

that presentation is to occur within a certain number of days after the date
of shipment will be disregarded, and presentation may be made at any time,
but in any event no later than the expiry date of the credit.

ii. The default presentation period of 21 calendar days stated in UCP 600
sub-article 14 (c) only applies to a presentation including one or more
original transport documents covered by UCP 600 articles 19-25.

c. For a presentation period to apply to a document referred to in paragraph

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A18) (a), the credit should specify that presentation is to be made within a
certain number of days after the issuance date of the respective document,
or a date that is to be mentioned in the document (for example, when a
credit requires the presentation of a document titled cargo receipt,
"documents to be presented no later than 10 days after the date of the
cargo receipt").

Expressions not defined in UCP 600

A19) The expressions "shipping documents", "stale documents acceptable",

"third party documents acceptable", "third party documents not acceptable",
"exporting country", "shipping company" and "documents acceptable as
presented" should not be used in a credit, as they are not defined in UCP
600. If, nevertheless, they are used, and their meaning is not defined in the
credit, they shall have the following meaning under international standard
banking practice:

a. "shipping documents" - all documents required by the credit, except

drafts, teletransmission reports and courier receipts, postal receipts or
certificates of posting evidencing the sending of documents.

b. "stale documents acceptable" - documents may be presented later than

21 calendar days after the date of shipment as long as they are presented
no later than the expiry date of the credit. This will also apply when the
credit specifies a period for presentation together with the condition "stale
documents acceptable".

c. "third party documents acceptable" - all documents for which the credit or
UCP 600 do not indicate an issuer, except drafts, may be issued by a named
person or entity other than the beneficiary.

d. "third party documents not acceptable" - has no meaning and is to be

disregarded.

e. "exporting country" - one of the following: the country where the

beneficiary is domiciled, the country of origin of the goods, the country of
receipt by the carrier or the country from which shipment or dispatch is
made.

f. "shipping company" - when used in the context of the issuer of a

certificate, certification or declaration relating to a transport document - any
one of the following: carrier, master or, when a charter party bill of lading is
presented, the master, owner or charterer, or any entity identified as an
agent of any one of the aforementioned, regardless of whether it issued or
signed the presented transport document.

g. "documents acceptable as presented" - a presentation may consist of one

or more of the stipulated documents provided they are presented within the
expiry date of the credit and the drawing amount is within that which is
available under the credit. The documents will not otherwise be examined
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for compliance under the credit or UCP 600, including whether they are
presented in the required number of originals or copies.

Issuer of documents

A20) When a credit requires a document to be issued by a named person or

entity, this condition is satisfied when the document appears to be issued by
the named person or entity by use of its letterhead, or when there is no
letterhead, when the document appears to have been completed or signed
by, or for [or on behalf of], the named person or entity.

Language

A21) a. When a credit stipulates the language of the documents to be

presented, the data required by the credit or UCP 600 are to be in that
language.

b. When a credit is silent with respect to the language of the documents to

be presented, the documents may be issued in any language.

c. i. When a credit allows two or more acceptable languages, a confirming

bank or a nominated bank acting on its nomination may restrict the number
of acceptable languages as a condition of its engagement in the credit, and
in such a case the data contained in the documents are only to be in the
acceptable language or languages.

ii. When a credit allows a document to contain data in two or more

acceptable languages and a confirming bank or a nominated bank acting on
its nomination does not restrict the language or the number of acceptable
languages as a condition of its engagement in the credit, it is required to
examine the data in all of the acceptable languages appearing in the
documents.

d. Banks do not examine data that have been inserted in a language that is
additional to that required or allowed in the credit.

e. Notwithstanding paragraphs A21) (a) and (d), the name of a person or

entity, any stamps, legalization, endorsements or similar, and the pre-
printed text shown on a document, such as, but not limited to, field
headings, may be in a language other than that required in the credit.

Mathematical calculations

A22) When the presented documents indicate mathematical calculations,

banks only determine that the stated total in respect of criteria such as
amount, quantity, weight or number of packages, does not conflict with the
credit or any other stipulated document.

Misspellings or typing errors

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A23) A misspelling or typing error that does not affect the meaning of a
word or the sentence in which it occurs does not make a document
discrepant. For example, a description of the goods shown as "mashine"
instead of "machine", "fountan pen" instead of "fountain pen" or "modle"
instead of "model" would not be regarded as a conflict of data under UCP
600 sub-article 14 (d). However, a description shown as, for example,
"model 123" instead of "model 321" will be regarded as a conflict of data
under that sub-article.

Multiple pages and attachments or riders

A24) When a document consists of more than one page, it must be possible
to determine that the pages are part of the same document. Unless a
document provides otherwise, pages which are physically bound together,
sequentially numbered or contain internal cross references, however named
or titled, will meet this requirement and are to be examined as one
document, even if some of the pages are regarded as an attachment or
rider.

A25) When a signature or endorsement is required to be on a document

consisting of more than one page, and the credit or the document itself does
not indicate where a signature or endorsement is to appear, the signature
or endorsement may appear anywhere on that document.

Non-documentary conditions and conflict of data

A26) When a credit contains a condition without stipulating a document to

indicate compliance therewith ("non-documentary condition"), compliance
with such condition need not be evidenced on any stipulated document.
However, data contained in a stipulated document are not to be in conflict
with the non-documentary condition. For example, when a credit indicates
"packing in wooden cases" without indicating that such data is to appear on
any stipulated document, a statement in any stipulated document indicating
a different type of packing is considered to be a conflict of data.

Originals and copies

A27) A document bearing an apparently original signature, mark, stamp or

label of the issuer will be considered to be an original unless it states that it
is a copy. Banks do not determine whether such a signature, mark, stamp
or label of the issuer has been applied in a manual or facsimile form and, as
such, any document bearing such method of authentication will satisfy the
requirements of UCP 600 article 17.

A28) Documents issued in more than one original may be marked

"Original", "Duplicate", "Triplicate", "First Original", "Second Original", etc.
None of these markings will disqualify a document as an original.

A29) a. The number of originals to be presented is to be at least the number

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required by the credit or UCP 600.

b. When a transport document or insurance document indicates how many

originals have been issued, the number of originals stated on the document
is to be presented, except as stated in paragraphs H12) and J7) (c).

c. When a credit requires presentation of less than a full set of original

transport documents, (for example, "2/3 original bills of lading"), but does
not provide any disposal instructions for the remaining original bill of lading,
a presentation may include 3/3 original bills of lading.

d. When a credit requires, for example, presentation of:

i. "Invoice", "One Invoice", "Invoice in 1 copy" or "Invoice - 1 copy", it will

be understood to be a requirement for an original invoice.

ii. "Invoice in 4 copies" or "Invoice in 4 fold" will be satisfied by the

presentation of at least one original invoice and any remaining number as
copies.

iii. "photocopy of invoice" or "copy of invoice" will be satisfied by the

presentation of either a photocopy, copy or, when not prohibited, an original
invoice.

iv. "photocopy of a signed invoice" will be satisfied by the presentation of

either a photocopy or copy of the original invoice that was apparently signed
or, when not prohibited, a signed original invoice.

A30) a. When a credit prohibits the presentation of an original document by

stating, for example, "photocopy of invoice - original document not
acceptable in lieu of photocopy" or the like, only a photocopy of an invoice
or an invoice marked copy is to be presented.

b. When a credit requires the presentation of a copy of a transport

document and indicates a disposal instruction for all originals of that
document, a presentation is not to include any original of such document.

A31) a. Original documents are to be signed when required by the credit,

the document itself (except as stated in paragraph A37)) or UCP 600.

b. Copies of documents need not be signed nor dated.

Shipping marks

A32) When a credit specifies the details of a shipping mark, documents

mentioning the shipping mark are to show those details. The data in a
shipping mark indicated on a document need not be in the same sequence
as those shown in the credit or in any other stipulated document.

A33) A shipping mark indicated on a document may show data in excess of

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what would normally be considered a "shipping mark", or which is specified
in the credit as a "shipping mark", by the addition of information such as,
but not limited to, the type of goods, warnings concerning the handling of
fragile goods or net and gross weight of the goods.

A34) a. Transport documents covering containerized goods often only show

a container number, with or without a seal number, under the heading
"Shipping mark" or similar. Other documents that show a more detailed
marking will not be in conflict for that reason.

b. The fact that some documents show additional information as mentioned

in paragraphs A33) and A34) (a), while others do not, will not be regarded
as a conflict of data under UCP 600 sub-article 14 (d).

Signatures

A35) a. A signature, as referred to in paragraph A31) (a), need not be

handwritten. Documents may also be signed with a facsimile signature (for
example, a pre-printed or scanned signature), perforated signature, stamp,
symbol (for example, a chop) or any mechanical or electronic method of
authentication.

b. A requirement for a document to be "signed and stamped" or a similar

requirement is satisfied by a signature in the form described in paragraph
A35) (a) and the name of the signing entity typed, stamped, handwritten,
pre-printed or scanned on the document, etc.

c. A statement on a document such as "This document has been

electronically authenticated" or "This document has been produced by
electronic means and requires no signature" or words of similar effect does
not, by itself, represent an electronic method of authentication in
accordance with the signature requirements of UCP 600 article 3.

d. A statement on a document indicating that authentication may be verified

or obtained through a specific reference to a website (URL) constitutes a
form of electronic method of authentication in accordance with the signature
requirements of UCP 600 article 3. Banks will not access such websites to
verify or obtain authentication.

A36) a. A signature on the letterhead paper of a named person or entity is

considered to be the signature of that named person or entity unless
otherwise stated. The named person or entity need not be repeated next to
the signature.

b. When a signatory indicates it is signing for [or on behalf of] a branch of

the issuer, the signature will be considered to be that of the issuer.

A37) The fact that a document has a box, field or space for a signature does
not in itself mean that such box, field or space is to be completed with a
signature. For example, a signature is not required in the space titled
15 | P a g e
"Signature of shipper or their agent" commonly found on an air waybill or
"Signature of shipper" on a road transport document. Also see paragraph
A17) in respect of the requirements for data to appear in a box, field or
space.

A38) When a document includes wording such as "This document is not

valid unless countersigned [or signed] by (name of the person or entity)" or
words of similar effect, the applicable box, field or space is to contain a
signature and the name of the person or entity that is countersigning the
document.

Title of documents and combined documents

A39) Documents may be titled as called for in the credit, bear a similar title
or be untitled. The content of a document must appear to fulfil the function
of the required document. For example, a requirement for a "Packing List"
will be satisfied by a document containing packing details whether it is titled
"Packing List", "Packing Note", "Packing and Weight List", etc., or bears no
title.

A40) Documents required by a credit are to be presented as separate

documents. However, and as an example, a requirement for an original
packing list and an original weight list will also be satisfied by the
presentation of two original combined packing and weight lists, provided
that such documents state both packing and weight details.

A41) A document required by a credit that is to cover more than one

function may be presented as a single document or separate documents
that appear to fulfil each function. For example, a requirement for a
Certificate of Quality and Quantity will be satisfied by the presentation of a
single document or by a separate Certificate of Quality and Certificate of
Quantity provided that each document appears to fulfil its function and is
presented in the number of originals and copies as required by the credit.

DRAFTS AND CALCULATION OF MATURITY DATE

ISBP

Paragraph B1 to B18

Basic requirement

B1) a. A draft, when required, is to be drawn on the bank stated in the

16 | P a g e
credit.

b. Banks only examine a draft to the extent described in paragraphs B2)-

B17).

Tenor

B2) a. The tenor stated on a draft is to be in accordance with the terms of

the credit.

b. When a credit requires a draft to be drawn at a tenor other than sight or

a certain period after sight, it must be possible to establish the maturity
date from the data in the draft itself.

For example, when a credit calls for drafts at a tenor 60 days after the bill
of lading date, and when the date of the bill of lading is 14 May 2013, the
tenor is to be indicated on the draft in one of the following ways:

i. "60 days after bill of lading date 14 May 2013", or

ii. "60 days after 14 May 2013", or

iii. "60 days after bill of lading date" and elsewhere on the face of the draft
state "bill of lading date 14 May 2013" or

iv. "60 days date" on a draft dated the same day as the date of the bill of
lading, or

v. "13 July 2013", i.e., 60 days after the bill of lading date.

c. When the tenor refers to, for example, 60 days after the bill of lading
date, the on board date is deemed to be the bill of lading date even when
the on board date is prior to or later than the date of issuance of the bill of
lading.

d. The words "from" and "after" when used to determine maturity dates of
drafts signify that the calculation of the maturity date commences the day
following the date of the document, shipment or the date of an event
stipulated in the credit, for example, 10 days after or from 4 May is 14 May.

e. i. When a credit requires a bill of lading and drafts are to be drawn, for
example, at 60 days after or from the bill of lading date and a bill of lading
is presented evidencing unloading and reloading of the goods from one
vessel to another, and showing more than one dated on board notation and
indicating that each shipment was effected from a port within a permitted
geographical area or range of ports, the earliest of these dates is to be
used for the calculation of the maturity date. For example, a credit requires
shipment from any European port, and the bill of lading evidences on board
vessel "A" from Dublin on 14 May, with transhipment effected on board
vessel "B" from Rotterdam on 16 May. The draft should reflect 60 days
17 | P a g e
after the earliest on board date in a European port, i.e., 14 May.

ii. When a credit requires a bill of lading and drafts are to be drawn, for
example, at 60 days after or from the bill of lading date, and a bill of lading
is presented evidencing shipment of goods on the same vessel from more
than one port within a permitted geographical area or range of ports, and
shows more than one dated on board notation, the latest of these dates is
to be used for the calculation of the maturity date. For example, a credit
requires shipment from any European port, and the bill of lading evidences
part of the goods loaded on board vessel "A" from Dublin on 14 May and
the remainder on board the same vessel from Rotterdam on 16 May. The
draft should reflect 60 days after the latest on board date, i.e., 16 May.

iii. When a credit requires a bill of lading and drafts are to be drawn, for
example, at 60 days after or from the bill of lading date, and more than one
set of bills of lading is presented under one draft, the on board date of the
latest bill of lading will be used for the calculation of the maturity date.

B3) While the examples in paragraphs B2) (e) (i-iii) refer to bill of lading
dates, the same principles apply to any basis for determining a maturity
date.

Maturity date

B4) When a draft states a maturity date by using an actual date, that date
is to reflect the terms of the credit.

B5) For drafts drawn, for example, "at 60 days sight", the maturity date is
established as follows:

a. in the case of a complying presentation, the maturity date will be 60

days after the day of presentation to the bank on which the draft is drawn,
i.e., the issuing bank, confirming bank or a nominated bank that agrees to
act on its nomination ("drawee bank").

b. in the case of a non-complying presentation:

i. when such drawee bank has not provided a notice of refusal, the maturity
date will be 60 days after the day of presentation to it;

ii. when the drawee bank is the issuing bank and it has provided a notice of
refusal at the latest 60 days after the date the issuing bank accepts the
waiver of the applicant;

iii. when the drawee bank is a bank other than the issuing bank and it has
provided a notice of refusal, at the latest 60 days after the date of the
acceptance advice of the issuing bank. When such drawee bank does not
agree to act on the acceptance advice of the issuing bank, the undertaking
to honour on the due date is that of the issuing bank.

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c. The drawee bank is to advise or confirm the maturity date to the
presenter.

B6) The method of calculation of tenor and maturity dates, as shown

above, also applies to a credit available by deferred payment or, in some
cases, negotiation, i.e., when there is no requirement for a draft to be
presented by the beneficiary.

Banking days, grace days, delays in remittance

B7) Payment is to be made in immediately available funds on the due date

at the place where the draft or documents are payable, provided that such
due date is a banking day in that place. When the due date is a non-
banking day, payment is due on the first banking day following the due
date. Delays in the remittance of funds, for example grace days, the time it
takes to remit funds, etc., are not to be in addition to the stated or agreed
due date as defined by the draft or documents.

Drawing and signing

B8) a. A draft is to be drawn and signed by the beneficiary and to indicate a

date of issuance.

b. When the beneficiary or second beneficiary has changed its name, and
the credit mentions the former name, a draft may be drawn in the name of
the new entity provided that it indicates "formerly known as (name of the
beneficiary or second beneficiary)" or words of similar effect.

B9) When a credit indicates the drawee of a draft by only stating the SWIFT
address of a bank, the draft may show the drawee with the same details or
the full name of the bank.

B10) When a credit is available by negotiation with a nominated bank or

any bank, the draft is to be drawn on a bank other than the nominated
bank.

B11) When a credit is available by acceptance with any bank, the draft is to
be drawn on the bank that agrees to accept the draft and is thereby willing
to act on its nomination.

B12) When a credit is available by acceptance with:

a. a nominated bank or any bank, and the draft is to be drawn on that

nominated bank (which is not a confirming bank), and it decides not to act
on its nomination, the beneficiary may choose to:

i. draw the draft on the confirming bank, if any, or request that the

19 | P a g e
presentation be forwarded to the confirming bank in the form as presented;

ii. present the documents to another bank that agrees to accept a draft
drawn on it and thereby act on its nomination (applicable only when the
credit is available with any bank); or

iii. request that the presentation be forwarded to the issuing bank in the
form as presented with or without a draft drawn on the issuing bank.

b. a confirming bank, and the draft is to be drawn on that confirming bank

and the presentation is non-complying, and it decides not to reinstate its
confirmation, the beneficiary may request that the presentation be
forwarded to the issuing bank in the form as presented, with or without a
draft drawn on the issuing bank.

Amounts

B13) A draft is to be drawn for the amount demanded under the

presentation.

B14) The amount in words is to accurately reflect the amount in figures

when both are shown, and indicate the currency as stated in the credit.
When the amount in words and figures are in conflict, the amount in words
is to be examined as the amount demanded.

Endorsement

B15) A draft is to be endorsed, if necessary.

Correction and alteration ("correction")

B16) Any correction of data on a draft is to appear to have been

authenticated with the addition of the signature or initials of the
beneficiary.

B17) When no correction of data is allowed in a draft, an issuing bank

should have included a suitable stipulation in its credit.

Drafts drawn on the applicant

B18) a. A credit must not be issued available by a draft drawn on the

applicant.

b. However, when a credit requires the presentation of a draft drawn on the

applicant as one of the required documents, it is to be examined only to the
extent expressly stated in the credit, otherwise according to UCP 600 sub-
article 14 (f).

INVOICES

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ISBP

Paragraph C1 to C15

Title of invoice

C1) a. When a credit requires presentation of an "invoice" without further

description, this will be satisfied by the presentation of any type of invoice
(commercial invoice, customs invoice, tax invoice, final invoice, consular
invoice, etc.). However, an invoice is not to be identified as "provisional",
"pro-forma" or the like.

b. When a credit requires presentation of a "commercial invoice", this will

also be satisfied by the presentation of a document titled "invoice", even
when such document contains a statement that it has been issued for tax
purposes.

Issuer of an invoice

C2) a. An invoice is to appear to have been issued by the beneficiary or, in

the case of a transferred credit, the second beneficiary.

b. When the beneficiary or second beneficiary has changed its name and
the credit mentions the former name, an invoice may be issued in the name
of the new entity provided that it indicates "formerly known as (name of
the beneficiary or second beneficiary)" or words of similar effect.

Description of the goods, services or performance and other general

issues related to invoices

C3) The description of the goods, services or performance shown on the

invoice is to correspond with the description shown in the credit. There is
no requirement for a mirror image. For example, details of the goods may
be stated in a number of areas within the invoice which, when read
together, represent a description of the goods corresponding to that in the
credit.

C4) The description of goods, services or performance on an invoice is to

reflect what has actually been shipped, delivered or provided. For example,
when the goods description in the credit indicates a requirement for
shipment of "10 trucks and 5 tractors", and only 4 trucks have been
shipped, an invoice may indicate shipment of only 4 trucks provided that
the credit did not prohibit partial shipment. An invoice indicating what has
21 | P a g e
actually been shipped (4 trucks) may also contain the description of the
goods stated in the credit, i.e., 10 trucks and 5 tractors.

C5) An invoice showing a description of the goods, services or performance

that corresponds with that in the credit may also indicate additional data in
respect of the goods, services or performance provided that they do not
appear to refer to a different nature, classification or category of the goods,
services or performance.

For example, when a credit requires shipment of "Suede Shoes", but the
invoice describes the goods as "Imitation Suede Shoes", or when the credit
requires "Hydraulic Drilling Rig", but the invoice describes the goods as
"Second Hand Hydraulic Drilling Rig", these descriptions would represent a
change in nature, classification or category of the goods.

C6) An invoice is to indicate:

a. the value of the goods shipped or delivered, or services or performance

provided.

b. unit price(s), when stated in the credit.

c. the same currency as that shown in the credit.

d. any discount or deduction required by the credit.

C7) An invoice may indicate a deduction covering advance payment,

discount, etc., that is not stated in the credit.

C8) When a trade term is stated as part of the goods description in the
credit, an invoice is to indicate that trade term, and when the source of the
trade term is stated, the same source is to be indicated. For example, a
trade term indicated in a credit as "CIF Singapore Incoterms 2010" is not to
be indicated on an invoice as "CIF Singapore" or "CIF Singapore
Incoterms". However, when a trade term is stated in the credit as "CIF
Singapore" or "CIF Singapore Incoterms", it may also be indicated on an
invoice as "CIF Singapore Incoterms 2010" or any other revision.

C9) Additional charges and costs, such as those related to documentation,

freight or insurance costs, are to be included within the value shown
against the stated trade term on the invoice.

C10) An invoice need not be signed or dated.

C11) Any total quantity of goods and their weight or measurement shown
on the invoice is not to conflict with the same data appearing on other
documents.

C12) An invoice is not to indicate:

22 | P a g e
a. over-shipment (except as provided in UCP 600 sub-article 30 (b)), or

b. goods, services or performance not called for in the credit. This applies
even when the invoice includes additional quantities of goods, services or
performance as required by the credit or samples and advertising material
and are stated to be free of charge.

C13) The quantity of goods required in the credit may be indicated on an

invoice within a tolerance of +/-5%. A variance of up to +5% in the
quantity of the goods does not allow the amount demanded under the
presentation to exceed the amount of the credit. The tolerance of +/-5% in
the quantity of the goods will not apply when:

a. a credit states that the quantity is not to be exceeded or reduced; or

b. a credit states the quantity in terms of a stipulated number of packing

units or individual items.

C14) When no quantity of goods is stated in the credit, and partial

shipments are prohibited, an invoice issued for an amount up to 5% less
than the credit amount will be considered to cover the full quantity and not
a partial shipment.

Instalment drawings or shipments

C15) a. i. When a drawing or shipment by instalments within given periods

is stipulated in the credit, and any instalment is not drawn or shipped
within the period allowed for that instalment, the credit ceases to be
available for that and any subsequent instalment. Given periods are a
sequence of dates or timelines that determine a start and end date for each
instalment. For example, a credit requiring shipment of 100 cars in March
and 100 cars in April is an example of two periods of time that start on 1
March and 1 April and end on 31 March and 30 April respectively.

ii. When partial drawings or shipments are allowed, any number of

drawings or shipments is permitted within each instalment.

b. When a credit indicates a drawing or shipment schedule by only

indicating a number of latest dates, and not given periods (as referred to in
paragraph C15) (a) (i):

i. this is not an instalment schedule as envisaged by UCP 600, and article

32 will not apply. The presentation is to otherwise comply with any
instructions in respect of the drawing or shipment schedule and UCP 600
article 31;

ii. when partial drawings or shipments are allowed, any number of drawings
or shipments is permitted on or before each latest date for a drawing or
23 | P a g e
shipment to occur.

TRANSPORT DOCUMENT COVERING AT LEAST TWO DIFFERENT

MODES OF TRANSPORT ("multimodal or combined transport
document")

ISBP

Paragraph D1 to D32

Application of UCP 600 article 19

D1) a. A requirement in a credit for the presentation of a transport

document, however named, covering movement of goods utilizing at least
two different modes of transport means that UCP 600 article 19 is to be
applied in the examination of that document.

b. i. A multimodal or combined transport document is not to indicate that

shipment or dispatch has been effected by only one mode of transport, but
it may be silent regarding some or all of the modes of transport utilized.

ii. A multimodal or combined transport document is not to contain any

indication of a charter party as described in paragraphs G2) (a) and (b).

c. When a credit requires the presentation of a transport document other

than a multimodal or combined transport document, and it is clear from the
routing of the goods stated in the credit that more than one mode of
transport is to be utilized, for example, when an inland place of receipt or
final destination are indicated, or the port of loading or discharge field is
completed but with a place which is in fact an inland place and not a port,
UCP 600 article 19 is to be applied in the examination of that document.

D2) In all places where the term "multimodal transport document" is used
within this publication, it also includes the term "combined transport
document". The transport document presented need not be titled
"Multimodal transport document" or "Combined transport document" or
words of similar effect even when the credit so names the required
document.

Issuance, carrier, identification of the carrier and signing of a

multimodal transport document

D3) a. A multimodal transport document may be issued by any entity other

than a carrier or master (captain) provided it meets the requirements of
UCP 600 article 19.

b. When a credit indicates "Freight Forwarder's Multimodal Transport

24 | P a g e
Document is acceptable" or "House Multimodal Transport Document is
acceptable" or words of similar effect, a multimodal transport document
may be signed by the issuing entity without it being necessary to indicate
the capacity in which it has been signed or the name of the carrier.

D4) A stipulation in a credit that "Freight Forwarder's Multimodal Transport

Documents are not acceptable" or "House Multimodal Transport Documents
are not acceptable" or words of similar effect has no meaning in the context
of the title, format, content or signing of a multimodal transport document
unless the credit provides specific requirements detailing how the
multimodal transport document is to be issued and signed. In the absence
of these requirements, such a stipulation is to be disregarded, and the
multimodal transport document presented is to be examined according to
the requirements of UCP 600 article 19.

D5) a. A multimodal transport document is to be signed in the form

described in UCP 600 sub-article 19 (a) (i) and to indicate the name of the
carrier, identified as the carrier.

b. When a multimodal transport document is signed by a named branch of

the carrier, the signature is considered to have been made by the carrier.

c. When an agent signs a multimodal transport document for [or on behalf

of] the carrier, the agent is to be named and, in addition, to indicate that it
is signing as "agent for (name), the carrier" or as "agent on behalf of
(name), the carrier" or words of similar effect. When the carrier is identified
elsewhere in the document as the "carrier", the named agent may sign, for
example, as "agent for [or on behalf of] the carrier" without naming the
carrier again.

d. When the master (captain) signs a multimodal transport document, the

signature of the master (captain) is to be identified as the "master"
("captain"). The name of the master (captain) need not be stated.

e. When an agent signs a multimodal transport document for [or on behalf

of] the master (captain), the agent is to be named and, in addition, to
indicate that it is signing as "agent for the master (or captain)" or as "agent
on behalf of the master (or captain)" or words of similar effect. The name
of the master (captain) need not be stated.

On board notation, date of shipment, place of receipt, dispatch,

taking in charge, port of loading or airport of departure

D6) The issuance date of a multimodal transport document will be deemed

to be the date of receipt, dispatch, taking in charge or shipment on board
and the date of shipment, unless it bears a separate dated notation
evidencing receipt, dispatch, taking in charge or shipment on board from
the place, port or airport stated in the credit. In the latter event, such date
will be deemed to be the date of shipment whether that date is before or
after the issuance date of the multimodal transport document. A separate
25 | P a g e
dated notation may also be indicated in a designated field or box.

D7) When a credit requires shipment to commence from a port, i.e., when
the first leg of the journey, as required by the credit, is by sea, a
multimodal transport document is to indicate a dated on board notation,
and in this event paragraph E6) (b-d) will also apply.

D8) In a multimodal transport document, when a credit requires shipment

to commence from a port, the named port of loading should appear in the
port of loading field. However, it may also be stated in the field headed
"Place of receipt" or words of similar effect, provided there is a dated on
board notation evidencing that the goods were shipped on board a named
vessel at the port stated under "Place of receipt" or words of similar effect.

D9) A multimodal transport document is to indicate the place of receipt,

dispatch, taking in charge, port of loading or airport of departure stated in
the credit. When a credit indicates the place of receipt, dispatch, taking in
charge, port of loading or airport of departure by also stating the country in
which the place, port or airport is located, the name of the country need
not be stated.

D10) When a credit indicates a geographical area or range of places of

receipt, dispatch, taking in charge, ports of loading or airports of departure
(for example, "Any European Country" or "Hamburg, Rotterdam, Antwerp
Port"), a multimodal transport document is to indicate the actual place of
receipt, dispatch, taking in charge, port of loading or airport of departure,
which is to be within that geographical area or range of places. A
multimodal transport document need not indicate the geographical area.

D11) Terms such as "Shipped in apparent good order", "Laden on board",

"Clean on board" or other phrases that incorporate "shipped" or "on board"
have the same effect as the words "Shipped on board".

Place of final destination, port of discharge or airport of destination

D12) a. In a multimodal transport document, when a credit requires

shipment to be effected to a port, the named port of discharge should
appear in the port of discharge field.

b. However, the named port of discharge may be stated in the field headed
"Place of final destination" or words of similar effect provided there is a
notation evidencing that the port of discharge is that stated under "Place of
final destination" or words of similar effect. For example, when a credit
requires shipment to be effected to Felixstowe, but Felixstowe is shown as
the place of final destination instead of the port of discharge, this may be
evidenced by a notation stating "Port of discharge Felixstowe".

D13) A multimodal transport document is to indicate the place of final

destination, port of discharge or airport of destination stated in the credit.
When a credit indicates the place of final destination port of discharge or
26 | P a g e
airport of destination by also stating the country in which the place or port
is located, the name of the country need not be stated.

D14) When a credit indicates a geographical area or range of places of final

destination, ports of discharge or airports of destination (for example, "Any
European Country" or "Hamburg, Rotterdam, Antwerp Port"), a multimodal
transport document is to indicate the actual place of final destination, port
of discharge or airport of destination, which is to be within that
geographical area or range of places. A multimodal transport document
need not indicate the geographical area.

Original multimodal transport document

D15) a. A multimodal transport document is to indicate the number of

originals that have been issued.

b. Multimodal transport documents marked "First Original", "Second

Original", "Third Original", or "Original", "Duplicate", "Triplicate" or similar
expressions are all originals.

Consignee, order party, shipper and endorsement, and notify party

D16) When a credit requires a multimodal transport document to evidence

that goods are consigned to a named entity, for example, "consigned to
(named entity)" (i.e., a "straight" multimodal transport document or
consignment) rather than "to order" or "to order of (named entity)", it is
not to contain the expressions "to order" or "to order of" preceding the
named entity, or the expression "or order" following the named entity,
whether typed or pre-printed.

D17) a. When a multimodal transport document is issued "to order" or "to

order of the shipper", it is to be endorsed by the shipper. An endorsement
may be made by a named entity other than the shipper, provided the
endorsement is made for [or on behalf of] the shipper.

b. When a credit requires a multimodal transport document to evidence

that goods are consigned "to order of (named entity)", it is not to indicate
that the goods are straight consigned to that named entity.

D18) a. When a credit stipulates the details of one or more notify parties, a
multimodal transport document may also indicate the details of one or
more additional notify parties.

b. i. When a credit does not stipulate the details of a notify party, a

multimodal transport document may indicate the details of any notify party
and in any manner (except as stated in paragraph D18) (b) (ii)).

ii. When a credit does not stipulate the details of a notify party, but the
details of the applicant appear as notify party on a multimodal transport
document, and these details include the applicant's address and contact
27 | P a g e
details, they are not to conflict with those stated in the credit.

D19) When a credit requires a multimodal transport document to evidence

goods consigned to or to the order of "issuing bank" or "applicant" or notify
"applicant" or "issuing bank", a multimodal transport document is to
indicate the name of the issuing bank or applicant, as applicable, but need
not indicate their respective addresses or any contact details that may be
stated in the credit.

D20) When the address and contact details of the applicant appear as part
of the consignee or notify party details, they are not to conflict with those
stated in the credit.

Transhipment, partial shipment and determining the presentation

period when multiple sets of multimodal transport documents are
presented

D21) In multimodal transport transhipment will occur. Transhipment is the

unloading and reloading of goods from one means of conveyance to another
means of conveyance (whether or not in different modes of transport)
during the carriage of those goods from the place of receipt, dispatch or
taking in charge, port of loading or airport of departure to the place of final
destination, port of discharge or airport of destination stated in the credit.

D22) Shipment on more than one means of conveyance (more than one
truck [lorry], vessel, aircraft, etc.) is a partial shipment, even when such
means of conveyance leaves on the same day for the same destination.

D23) a. When a credit prohibits partial shipment, and more than one set of
original multimodal transport documents are presented covering receipt,
dispatch, taking in charge or shipment from one or more points of origin
(as specifically allowed, or within a geographical area or range of places
stated in the credit), each set is to indicate that it covers the carriage of
goods on the same means of conveyance and same journey and that the
goods are destined for the same destination.

b. When a credit prohibits partial shipment, and more than one set of
original multimodal transport documents are presented in accordance with
paragraph D23) (a) and incorporate different dates of receipt, dispatch,
taking in charge, or shipment, the latest of these dates is to be used for the
calculation of any presentation period and must fall on or before the latest
date of receipt, dispatch, taking in charge or shipment stated in the credit.

c. When partial shipment is allowed, and more than one set of original
multimodal transport documents are presented as part of a single
presentation made under one covering schedule or letter and incorporate
different dates of receipt, dispatch, taking in charge or shipment, on
different means of conveyance, the earliest of these dates is to be used for
the calculation of any presentation period, and each of these dates must fall
on or before the latest date of receipt, dispatch, taking in charge or
28 | P a g e
shipment stated in the credit.

Clean multimodal transport document

D24) A multimodal transport document is not to include a clause or clauses

that expressly declare a defective condition of the goods or their packaging.

For example:

a. A clause on a multimodal transport document such as "packaging is not

sufficient for the sea journey" or words of similar effect is an example of a
clause expressly declaring a defective condition of the packaging.

b. A clause on a multimodal transport document such as "packaging may

not be sufficient for the sea journey" or words of similar effect does not
expressly declare a defective condition of the packaging.

D25) a. It is not necessary for the word "clean" to appear on a multimodal

transport document even when the credit requires a multimodal transport
document to be marked "clean on board" or "clean".

b. Deletion of the word "clean" on a multimodal transport document does

not expressly declare a defective condition of the goods or their packaging.

Goods description

D26) A goods description indicated on a multimodal transport document

may be in general terms not in conflict with the goods description in the
credit.

Indication of name and address of delivery agent at destination

D27) When a credit requires a multimodal transport document to indicate

the name, address and contact details of a delivery agent or words of
similar effect, at or for the place of final destination or port of discharge,
the address need not be one that is located at the place of destination or
port of discharge or within the same country as that of the place of
destination or port of discharge.

Corrections and alterations ("corrections")

D28) Any correction of data on a multimodal transport document is to be

authenticated. Such authentication is to appear to have been made by the
carrier, master (captain) or any one of their named agents, who may be
different from the agent that may have issued or signed a multimodal
transport document, provided they are identified as an agent of the carrier
or master (captain).

D29) Non-negotiable copies of a multimodal transport document need not

include authentication of any corrections that may have been made on the

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original.

Freight and additional costs

D30) A statement appearing on a multimodal transport document indicating

the payment of freight need not be identical to that stated in the credit, but
is not to conflict with data in that document, any other stipulated document
or the credit. For example, when a credit requires a multimodal transport
document to be marked "freight payable at destination", it may be marked
"freight collect".

D31) a. When a credit states that costs additional to freight are not
acceptable, a multimodal transport document is not to indicate that costs
additional to the freight have been or will be incurred.

b. An indication of costs additional to freight may be made by express

reference to additional costs or by the use of trade terms which refer to
costs associated with the loading or unloading of goods, such as, but not
limited to, Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In
and Out Stowed (FIOS).

c. Reference in a multimodal transport document to costs which may be

levied, for example, as a result of a delay in unloading the goods, or after
the goods have been unloaded (demurrage costs) or costs covering the late
return of containers (detention costs) is not an indication of costs additional
to freight.

Release of goods with more than one multimodal transport

document to be surrendered

D32) A multimodal transport document is not to expressly state that goods

covered by that multimodal transport document will only be released upon
its surrender together with one or more other multimodal transport
documents, unless all of the referenced multimodal transport documents
form part of the same presentation under the same credit.

For example, "Container XXXX is covered by B/L No. YYY and ZZZ, and can
only be released to a single merchant upon presentation of all multimodal
transport documents of that merchant" is considered to be an express
statement that one or more other multimodal transport documents, related
to the referenced container or packing unit, must be surrendered prior to
the goods being released.

BILL OF LADING

ISBP

30 | P a g e
Paragraph E1 to E28

Application of UCP 600 Article 20

E1) a. A requirement in a credit for the presentation of a transport

document, however named, only covering a port-to-port shipment, i.e., a
credit that contains no reference to a place of receipt or taking in charge or
place of final destination means that UCP 600 article 20 is to be applied in
the examination of that document.

b. A bill of lading is not to contain any indication of a charter party as

described in paragraphs G2) (a) and (b).

E2) A bill of lading need not be titled "marine bill of lading", "ocean bill of
lading", "port-to-port bill of lading" or words of similar effect even when the
credit so names the required document.

Issuance, carrier, identification of the carrier and signing of a bill of

lading

E3) a. A bill of lading may be issued by any entity other than a carrier or
master (captain), provided it meets the requirements of UCP 600 article 20.

b. When a credit indicates "Freight Forwarder's Bill of Lading is acceptable"

or "House Bill of Lading is acceptable" or words of similar effect, a bill of
lading may be signed by the issuing entity without it being necessary to
indicate the capacity in which it has been signed or the name of the carrier.

E4) A stipulation in a credit that "Freight Forwarder's Bills of Lading are not
acceptable" or "House Bills of Lading are not acceptable" or words of similar
effect has no meaning in the context of the title, format, content or signing
of a bill of lading unless the credit provides specific requirements detailing
how the bill of lading is to be issued and signed. In the absence of these
requirements, such a stipulation is to be disregarded, and the bill of lading
presented is to be examined according to the requirements of UCP 600
article 20.

E5) a. A bill of lading is to be signed in the form described in UCP 600 sub-
article 20 (a) (i) and to indicate the name of the carrier, identified as the
carrier.

b. When a bill of lading is signed by a named branch of the carrier, the

signature is considered to have been made by the carrier.

c. When an agent signs a bill of lading for [or on behalf of] the carrier, the
agent is to be named and, in addition, to indicate that it is signing as
"agent for (name), the carrier" or as "agent on behalf of (name), the
carrier" or words of similar effect. When the carrier is identified elsewhere
in the document as the "carrier", the named agent may sign, for example,
as "agent for [or on behalf of] the carrier" without naming the carrier again.

31 | P a g e
d. When the master (captain) signs a bill of lading, the signature of the
master (captain) is to be identified as the "master" ("captain"). The name
of the master (captain) need not be stated.

e. When an agent signs a bill of lading for [or on behalf of] the master
(captain), the agent is to be named and, in addition, to indicate that it is
signing as "agent for the master (or captain)", or as "agent on behalf of the
master (or captain)" or words of similar effect. The name of the master
(captain) need not be stated.

On board notation, date of shipment, pre-carriage, place of receipt

and port of loading

E6) a. When a pre-printed "Shipped on board" bill of lading is presented, its

issuance date will be deemed to be the date of shipment unless it bears a
separate dated on board notation. In the latter event, such date will be
deemed to be the date of shipment whether that date is before or after the
issuance date of the bill of lading. The on board date may also be indicated
in a designated field or box.

b. Notwithstanding that a credit may require a bill of lading to evidence a

port-to-port shipment:

i. when a bill of lading indicates a place of receipt that is the same as the
port of loading, for example, place of receipt Rotterdam CY and the port of
loading Rotterdam, and there is no indication of a means of pre-carriage
(either in the pre-carriage field or the place of receipt field); or

ii. when a bill of lading indicates a place of receipt different from the port of
loading, for example, place of receipt Amsterdam and port of loading
Rotterdam, and there is no indication of a means of pre-carriage (either in
the pre-carriage field or the place of receipt field), then:

(a) when a bill of lading is pre-printed "shipped on board", the date of issue
will be deemed to be the date of shipment, and no further on board
notation is required.

(b) when a bill of lading is pre-printed "received for shipment", a dated on

board notation is required, and the date appearing in the notation will be
deemed to be the date of shipment. The on board date may also be
indicated in a designated field or box.

c. Notwithstanding that a credit may require a bill of lading to evidence a

port-to-port shipment, when a bill of lading:

i. indicates a place of receipt different from the port of loading, for

example, place of receipt Amsterdam and port of loading Rotterdam, and
there is an indication of a means of pre-carriage (either in the pre-carriage
field or the place of receipt field), regardless of whether it is pre-printed
"shipped on board" or "received for shipment", it is to bear a dated on
32 | P a g e
board notation which also indicates the name of the vessel and the port of
loading stated in the credit. Such notation may also appear in a designated
field or box. The date appearing in the on board notation or designated field
or box will be deemed to be the date of shipment.

ii. indicates a means of pre-carriage (either in the pre-carriage field or the

place of receipt field), no matter if no place of receipt is stated or whether it
is pre-printed "shipped on board" or "received for shipment", it is to bear a
dated on board notation which also indicates the name of the vessel and
the port of loading stated in the credit. Such notation may also appear in a
designated field or box. The date appearing in the on board notation or
designated field or box will be deemed to be the date of shipment.

d. When a bill of lading indicates wording such as "When the place of

receipt box has been completed, any notation on this bill of lading of "on
board", "loaded on board" or words of similar effect shall be deemed to be
on board the means of transportation performing the carriage from the
place of receipt to the port of loading" or words of similar effect, and if, in
addition, the place of receipt box is completed, a bill of lading is to bear a
dated on board notation. The dated on board notation is also to indicate the
name of the vessel and the port of loading stated in the credit. Such
notation may also appear in a designated field or box. The date appearing
in the on board notation or designated field or box will be deemed to be the
date of shipment.

e. The named port of loading, as required by the credit, should appear in

the port of loading field on a bill of lading. However, it may also be stated
in the field headed "Place of receipt" or words of similar effect, provided
there is a dated on board notation evidencing that the goods were shipped
on board a named vessel at the port stated under "Place of receipt" or
words of similar effect.

f. A bill of lading is to indicate the port of loading stated in the credit. When
a credit indicates the port of loading by also stating the country in which
the port is located, the name of the country need not be stated.

g. When a credit indicates a geographical area or range of ports of loading

(for example, "Any European Port" or "Hamburg, Rotterdam, Antwerp
Port"), a bill of lading is to indicate the actual port of loading, which is to be
within that geographical area or range of ports. A bill of lading need not
indicate the geographical area.

h. When a bill of lading indicates more than one port of loading, it is to

evidence an on board notation with the relevant on board date for each port
of loading, regardless of whether it is pre-printed "received for shipment" or
"shipped on board". For example, when a bill of lading indicates that
shipment has been effected from Brisbane and Adelaide, a dated on board
notation is required for both Brisbane and Adelaide.

E7) Terms such as "Shipped in apparent good order", "Laden on board",

33 | P a g e
"Clean on board" or other phrases that incorporate "shipped" or "on board"
have the same effect as the words "Shipped on board".

Port of discharge

E8) a. The named port of discharge, as required by the credit, should

appear in the port of discharge field within a bill of lading.

b. However, the named port of discharge may be stated in the field headed
"Place of final destination" or words of similar effect provided there is a
notation evidencing that the port of discharge is that stated under "Place of
final destination" or words of similar effect. For example, when a credit
requires shipment to be effected to Felixstowe, but Felixstowe is shown as
the place of final destination instead of the port of discharge, this may be
evidenced by a notation stating "Port of discharge Felixstowe".

E9) A bill of lading is to indicate the port of discharge stated in the credit.
When a credit indicates the port of discharge by also stating the country in
which the port is located, the name of the country need not be stated.

E10) When a credit indicates a geographical area or range of ports of

discharge (for example, "Any European Port" or "Hamburg, Rotterdam,
Antwerp Port"), a bill of lading is to indicate the actual port of discharge,
which is to be within that geographical area or range of ports. A bill of
lading need not indicate the geographical area.

Original bill of lading

E11) a. A bill of lading is to indicate the number of originals that have been
issued.

b. Bills of lading marked "First Original", "Second Original", "Third Original",

or "Original", "Duplicate", "Triplicate" or similar expressions are all
originals.

Consignee, order party, shipper and endorsement, and notify party

E12) When a credit requires a bill of lading to evidence that goods are
consigned to a named entity, for example, "consigned to (named entity)"
(i.e., a "straight" bill of lading or consignment) rather than "to order" or "to
order of (named entity)", it is not to contain the expressions "to order" or
"to order of" preceding the named entity, or the expression "or order"
following the named entity, whether typed or pre-printed.

E13) a. When a bill of lading is issued "to order" or "to order of the
shipper", it is to be endorsed by the shipper. An endorsement may be made
by a named entity other than the shipper, provided the endorsement is

34 | P a g e
made for [or on behalf of] the shipper.

b. When a credit requires a bill of lading to evidence that goods are

consigned "to order of (named entity)", it is not to indicate that the goods
are straight consigned to that named entity.

E14) a. When a credit stipulates the details of one or more notify parties, a
bill of lading may also indicate the details of one or more additional notify
parties.

b. i. When a credit does not stipulate the details of a notify party, a bill of
lading may indicate the details of any notify party and in any manner
(except as stated in paragraph E14) (b) (ii)).

ii. When a credit does not stipulate the details of a notify party, but the
details of the applicant appear as notify party on a bill of lading, and these
details include the applicant's address and contact details, they are not to
conflict with those stated in the credit.

E15) When a credit requires a bill of lading to evidence goods consigned to

or to the order of "issuing bank" or "applicant" or notify "applicant" or
"issuing bank", a bill of lading is to indicate the name of the issuing bank or
applicant, as applicable, but need not indicate their respective addresses or
any contact details that may be stated in the credit.

E16) When the address and contact details of the applicant appear as part
of the consignee or notify party details, they are not to conflict with those
stated in the credit.

Transhipment, partial shipment and determining the presentation

period when multiple sets of bills of lading are presented

E17) Transhipment is the unloading and reloading of goods from one vessel
to another during the carriage of those goods from the port of loading to
the port of discharge stated in the credit. When a bill of lading does not
indicate unloading and reloading between these two ports, it is not
transhipment in the context of the credit and UCP 600 sub-articles 20 (b)
and (c).

E18) Shipment on more than one vessel is a partial shipment, even if each
vessel leaves on the same day for the same destination.

E19) a. When a credit prohibits partial shipment, and more than one set of
original bills of lading are presented covering shipment from one or more
ports of loading (as specifically allowed, or within a geographical area or
range of ports stated in the credit), each set is to indicate that it covers the
shipment of goods on the same vessel and same journey and that the
goods are destined for the same port of discharge.

b. When a credit prohibits partial shipment, and more than one set of
35 | P a g e
original bills of lading are presented in accordance with paragraph E19) (a)
and incorporate different dates of shipment, the latest of these dates is to
be used for the calculation of any presentation period and must fall on or
before the latest shipment date stated in the credit.

c. When partial shipment is allowed, and more than one set of original bills
of lading are presented as part of a single presentation made under one
covering schedule or letter and incorporate different dates of shipment, on
different vessels or the same vessel for a different journey, the earliest of
these dates is to be used for the calculation of any presentation period, and
each of these dates must fall on or before the latest shipment date stated
in the credit.

Clean bill of lading

E20) A bill of lading is not to include a clause or clauses that expressly

declare a defective condition of the goods or their packaging.

For example:

a. A clause on a bill of lading such as "packaging is not sufficient for the sea
journey" or words of similar effect is an example of a clause expressly
declaring a defective condition of the packaging.

b. A clause on a bill of lading such as "packaging may not be sufficient for

the sea journey" or words of similar effect does not expressly declare a
defective condition of the packaging.

E21) a. It is not necessary for the word "clean" to appear on a bill of lading
even when the credit requires a bill of lading to be marked "clean on board"
or "clean".

b. Deletion of the word "clean" on a bill of lading does not expressly declare
a defective condition of the goods or their packaging.

Goods description

E22) A goods description indicated on a bill of lading may be in general

terms not in conflict with the goods description in the credit.

Indication of name and address of delivery agent at port of

discharge

E23) When a credit requires a bill of lading to indicate the name, address
and contact details of a delivery agent or words of similar effect, at or for
the port of discharge, the address need not be one that is located at the
port of discharge or within the same country as that of the port of
discharge.

36 | P a g e
Corrections and alterations ("corrections")

E24) Any correction of data on a bill of lading is to be authenticated. Such

authentication is to appear to have been made by the carrier, master
(captain) or any one of their named agents, who may be different from the
agent that may have issued or signed a bill of lading, provided they are
identified as an agent of the carrier or the master (captain).

E25) Non-negotiable copies of a bill of lading need not include

authentication of any corrections that may have been made on the original.

Freight and additional costs

E26) A statement appearing on a bill of lading indicating the payment of

freight need not be identical to that stated in the credit, but is not to
conflict with data in that document, any other stipulated document or the
credit. For example, when a credit requires a bill of lading to be marked
"freight payable at destination", it may be marked "freight collect".

E27) a. When a credit states that costs additional to freight are not
acceptable, a bill of lading is not to indicate that costs additional to the
freight have been or will be incurred.

b. An indication of costs additional to freight may be made by express

reference to additional costs or by the use of trade terms which refer to
costs associated with the loading or unloading of goods, such as, but not
limited to, Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In
and Out Stowed (FIOS).

c. Reference in a bill of lading to costs which may be levied, for example, as

a result of a delay in unloading the goods, or after the goods have been
unloaded (demurrage costs) or costs covering the late return of containers
(detention costs) is not an indication of costs additional to freight.

Release of goods with more than one bill of lading to be

surrendered

E28) A bill of lading is not to expressly state that goods covered by that bill
of lading will only be released upon its surrender together with one or more
other bills of lading, unless all of the referenced bills of lading form part of
the same presentation under the same credit.

For example, "Container XXXX is covered by B/L No. YYY and ZZZ and can
only be released to a single merchant upon presentation of all bills of lading
of that merchant" is considered to be an express statement that one or
more other bills of lading, related to the referenced container or packing
unit, must be surrendered prior to the goods being released.

NON-NEGOTIABLE SEA WAYBILL

37 | P a g e
ISBP

Paragraph F1 to F25

Application of UCP 600 Article 21

F1) a. A requirement in a credit for the presentation of a non-negotiable

sea waybill, covering a port-to-port shipment only, i.e., a credit that
contains no reference to a place of receipt or taking in charge or place of
final destination means that UCP 600 article 21 is to be applied in the
examination of that document.

b. A non-negotiable sea waybill is not to contain any indication of a charter

party as described in paragraphs G2) (a) and (b).

Issuance, carrier, identification of the carrier and signing of a non-

negotiable sea waybill

F2) a. A non-negotiable sea waybill may be issued by any entity other than
a carrier or master (captain) provided it meets the requirements of UCP
600 article 21.

b. When a credit indicates "Freight Forwarder's non-negotiable sea waybill

is acceptable" or "House non-negotiable sea waybill is acceptable" or words
of similar effect, a non-negotiable sea waybill may be signed by the issuing
entity without it being necessary to indicate the capacity in which it has
been signed or the name of the carrier.

F3) A stipulation in a credit that "Freight Forwarder's non-negotiable sea

waybill is not acceptable" or "House non-negotiable sea waybill is not
acceptable" or words of similar effect has no meaning in the context of the
title, format, content or signing of a non-negotiable sea waybill unless the
credit provides specific requirements detailing how the non-negotiable sea
waybill is to be issued and signed. In the absence of these requirements,
such a stipulation is to be disregarded, and the non-negotiable sea waybill
presented is to be examined according to the requirements of UCP 600
article 21.

F4) a. A non-negotiable sea waybill is to be signed in the form described in

UCP 600 sub-article 21 (a) (i) and to indicate the name of the carrier,
identified as the carrier.

b. When a non-negotiable sea waybill is signed by a named branch of the

carrier, the signature is considered to have been made by the carrier.

c. When an agent signs a non-negotiable sea waybill for [or on behalf of]
the carrier, the agent is to be named and, in addition, to indicate that it is
signing as "agent for (name), the carrier" or as "agent on behalf of (name),
the carrier" or words of similar effect. When the carrier is identified
38 | P a g e
elsewhere in the document as the "carrier", the named agent may sign, for
example, as "agent for [or on behalf of] the carrier" without naming the
carrier again.

d. When the master (captain) signs a non-negotiable sea waybill, the

signature of the master (captain) is to be identified as the "master"
("captain"). The name of the master (captain) need not be stated.

e. When an agent signs a non-negotiable sea waybill for [or on behalf of]
the master (captain), the agent is to be named and, in addition, to indicate
that it is signing as "agent for the master (or captain)", or as "agent on
behalf of the master (or captain)" or words of similar effect. The name of
the master (captain) need not be stated.

On board notation, date of shipment, pre-carriage, place of receipt

and port of loading

F5) a. When a pre-printed "Shipped on board" non-negotiable sea waybill is

presented, its issuance date will be deemed to be the date of shipment
unless it bears a separate dated on board notation. In the latter event, such
date will be deemed to be the date of shipment whether that date is before
or after the issuance date of the non-negotiable sea waybill. The on board
date may also be indicated in a designated field or box.

b. Notwithstanding that a credit may require a non-negotiable sea waybill

to evidence a port-to-port shipment:

i. when a non-negotiable sea waybill indicates a place of receipt that is the

same as the port of loading, for example, place of receipt Rotterdam CY
and the port of loading Rotterdam, and there is no indication of a means of
pre-carriage (either in the pre-carriage field or the place of receipt field); or

ii. when a non-negotiable sea waybill indicates a place of receipt different

from the port of loading, for example, place of receipt Amsterdam and port
of loading Rotterdam, and there is no indication of a means of pre-carriage
(either in the pre-carriage field or the place of receipt field), then:

(a) when a non-negotiable sea waybill is pre-printed "shipped on board",

the date of issue will be deemed to be the date of shipment, and no further
on board notation is required.

(b) when a non-negotiable sea waybill is pre-printed "received for

shipment", a dated on board notation is required, and the date appearing in
the notation will be deemed to be the date of shipment. The on board date
may also be indicated in a designated field or box.

c. Notwithstanding that a credit may require a non-negotiable sea waybill to

evidence a port-to-port shipment, when a non-negotiable sea waybill:

i. indicates a place of receipt different from the port of loading, for

39 | P a g e
example, place of receipt Amsterdam and port of loading Rotterdam, and
there is an indication of a means of pre-carriage (either in the pre-carriage
field or the place of receipt field), regardless of whether it is pre-printed
"shipped on board" or "received for shipment", it is to bear a dated on
board notation which also indicates the name of the vessel and the port of
loading stated in the credit. Such notation may also appear in a designated
field or box. The date appearing in the on board notation or designated field
or box will be deemed to be the date of shipment.

ii. indicates a means of pre-carriage (either in the pre-carriage field or the

place of receipt field), no matter if no place of receipt is stated or whether it
is pre-printed "shipped on board" or "received for shipment", it is to bear a
dated on board notation which also indicates the name of the vessel and
the port of loading stated in the credit. Such notation may also appear in a
designated field or box. The date appearing in the on board notation or
designated field or box will be deemed to be the date of shipment.

d. When a non-negotiable sea waybill indicates wording such as "When the

place of receipt box has been completed, any notation on this non-
negotiable sea waybill of "on board", "loaded on board" or words of similar
effect shall be deemed to be on board the means of transportation
performing the carriage from the place of receipt to the port of loading" or
words of similar effect, and if, in addition, the place of receipt box is
completed, a non-negotiable sea waybill is to bear a dated on board
notation. The dated on board notation is also to indicate the name of the
vessel and the port of loading stated in the credit. Such notation may also
appear in a designated field or box. The date appearing in the on board
notation or designated field or box will be deemed to be the date of
shipment.

e. The named port of loading, as required by the credit, should appear in

the port of loading field on a non-negotiable sea waybill. However, it may
also be stated in the field headed "Place of receipt" or words of similar
effect, provided there is a dated on board notation evidencing that the
goods were shipped on board a named vessel at the port stated under
"Place of receipt" or words of similar effect.

f. A non-negotiable sea waybill is to indicate the port of loading stated in

the credit. When a credit indicates the port of loading by also stating the
country in which the port is located, the name of the country need not be
stated.

g. When a credit indicates a geographical area or range of ports of loading

(for example, "Any European Port" or "Hamburg, Rotterdam, Antwerp
Port"), a non-negotiable sea waybill is to indicate the actual port of loading,
which is to be within that geographical area or range of ports. A non-
negotiable sea waybill need not indicate the geographical area.

h. When a non-negotiable sea waybill indicates more than one port of

loading, it is to evidence an on board notation with the relevant on board
40 | P a g e
date for each port of loading, regardless of whether it is pre-printed
"received for shipment" or "shipped on board". For example, when a non-
negotiable sea waybill indicates that shipment has been effected from
Brisbane and Adelaide, a dated on board notation is required for both
Brisbane and Adelaide.

F6) Terms such as "Shipped in apparent good order", "Laden on board",

"Clean on board" or other phrases that incorporate "shipped" or "on board"
have the same effect as the words "Shipped on board".

Port of discharge

F7) a. The named port of discharge, as required by the credit, should

appear in the port of discharge field within a non-negotiable sea waybill.

b. However, the named port of discharge may be stated in the field headed
"Place of final destination" or words of similar effect provided there is a
notation evidencing that the port of discharge is that stated under "Place of
final destination" or words of similar effect. For example, when a credit
requires shipment to be effected to Felixstowe, but Felixstowe is shown as
the place of final destination instead of the port of discharge, this may be
evidenced by a notation stating "Port of discharge Felixstowe".

F8) A non-negotiable sea waybill is to indicate the port of discharge stated

in the credit. When a credit indicates the port of discharge by also stating
the country in which the port is located, the name of the country need not
be stated.

F9) When a credit indicates a geographical area or range of ports of

discharge (for example "Any European Port" or "Hamburg, Rotterdam,
Antwerp Port"), a non-negotiable sea waybill is to indicate the actual port of
discharge, which is to be within that geographical area or range of ports. A
non-negotiable sea waybill need not indicate the geographical area.

Original non-negotiable sea waybill

F10) a. A non-negotiable sea waybill is to indicate the number of originals

that have been issued.

b. Non-negotiable sea waybills marked "First Original", "Second Original",

"Third Original", or "Original", "Duplicate", "Triplicate" or similar
expressions are all originals.

Consignee, order party, shipper, and notify party

F11) a. When a credit requires a non-negotiable sea waybill to evidence

that goods are consigned to a named entity, for example, "consigned to
(named entity)", it is not to contain the expressions "to order" or "to order
of" preceding the named entity, or the expression "or order" following the

41 | P a g e
named entity, whether typed or pre-printed.

b. When a credit requires a non-negotiable sea waybill to evidence that

goods are consigned "to order of (named entity)", it may indicate that the
goods are consigned to that entity, without mentioning "to order of".

c. When a credit requires a non-negotiable sea waybill to evidence that

goods are consigned "to order" without naming the entity to whose order
the goods are to be consigned, it is to indicate that the goods are consigned
to either the issuing bank or the applicant, without the need to mention the
words "to order".

F12) a. When a credit stipulates the details of one or more notify parties, a
non-negotiable sea waybill may also indicate the details of one or more
additional notify parties.

b. i. When a credit does not stipulate the details of a notify party, a non-
negotiable sea waybill may indicate the details of any notify party and in
any manner (except as stated in paragraph F12) (b) (ii)).

ii. When a credit does not stipulate the details of a notify party, but the
details of the applicant appear as notify party on a non-negotiable sea
waybill, and these details include the applicant's address and contact
details, they are not to conflict with those stated in the credit.

F13) When a credit requires a non-negotiable sea waybill to evidence goods

consigned to "issuing bank" or "applicant" or notify "applicant" or "issuing
bank", a non-negotiable sea waybill is to indicate the name of the issuing
bank or applicant, as applicable, but need not indicate their respective
addresses or any contact details that may be stated in the credit.

F14) When the address and contact details of the applicant appear as part
of the consignee or notify party details, they are not to conflict with those
stated in the credit.

Transhipment, partial shipment and determining the presentation

period when multiple sets of non-negotiable sea waybills are
presented

F15) Transhipment is the unloading and reloading of goods from one vessel
to another during the carriage of those goods from the port of loading to
the port of discharge stated in the credit. When a non-negotiable sea
waybill does not indicate unloading and reloading between these two ports,
it is not transhipment in the context of the credit and UCP 600 sub-articles
21 (b) and (c).

F16) Shipment on more than one vessel is a partial shipment, even if each
vessel leaves on the same day for the same destination.

F17) a. When a credit prohibits partial shipment, and more than one set of
42 | P a g e
original non-negotiable sea waybills are presented covering shipment from
one or more ports of loading (as specifically allowed, or within a
geographical area or range of ports stated in the credit), each set is to
indicate that it covers the shipment of goods on the same vessel and same
journey and that the goods are destined for the same port of discharge.

b. When a credit prohibits partial shipment, and more than one set of
original non-negotiable sea waybills are presented in accordance with
paragraph F17) (a) and incorporate different dates of shipment, the latest
of these dates is to be used for the calculation of any presentation period
and must fall on or before the latest shipment date stated in the credit.

c. When partial shipment is allowed, and more than one set of original non-
negotiable sea waybills are presented as part of a single presentation made
under one covering schedule or letter and incorporate different dates of
shipment, on different vessels or the same vessel for a different journey,
the earliest of these dates is to be used for the calculation of any
presentation period, and each of these dates must fall on or before the
latest shipment date stated in the credit.

Clean non-negotiable sea waybill

F18) A non-negotiable sea waybill is not to include a clause or clauses that

expressly declare a defective condition of the goods or their packaging.

For example:

a. A clause on a non-negotiable sea waybill such as "packaging is not

sufficient for the sea journey" or words of similar effect is an example of a
clause expressly declaring a defective condition of the packaging.

b. A clause on a non-negotiable sea waybill such as "packaging may not be

sufficient for the sea journey" or words of similar effect does not expressly
declare a defective condition of the packaging.

F19) a. It is not necessary for the word "clean" to appear on a non-

negotiable sea waybill even when the credit requires a non-negotiable sea
waybill to be marked "clean on board" or "clean".

b. Deletion of the word "clean" on a non-negotiable sea waybill does not

expressly declare a defective condition of the goods or their packaging.

Goods description

F20) A goods description indicated on a non-negotiable sea waybill may be

in general terms not in conflict with the goods description in the credit.

Indication of name and address of delivery agent at port of

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discharge

F21) When a credit requires a non-negotiable sea waybill to indicate the

name, address and contact details of a delivery agent or words of similar
effect, at or for the port of discharge, the address need not be one that is
located at the port of discharge or within the same country as that of the
port of discharge.

Corrections and alterations ("corrections")

F22) Any correction of data on a non-negotiable sea waybill is to be

authenticated. Such authentication is to appear to have been made by the
carrier, master (captain) or any one of their named agents, who may be
different from the agent that may have issued or signed a non-negotiable
sea waybill, provided they are identified as an agent of the carrier or the
master (captain).

F23) Copies of a non-negotiable sea waybill need not include authentication

of any corrections that may have been made on the original.

Freight and additional costs

F24) A statement appearing on a non-negotiable sea waybill indicating the

payment of freight need not be identical to that stated in the credit, but is
not to conflict with data in that document, any other stipulated document or
the credit. For example, when a credit requires a non-negotiable sea waybill
to be marked "freight payable at destination", it may be marked "freight
collect".

F25) a. When a credit states that costs additional to freight are not
acceptable, a non-negotiable sea waybill is not to indicate that costs
additional to the freight have been or will be incurred.

b. An indication of costs additional to freight may be made by express

reference to additional costs or by the use of trade terms which refer to
costs associated with the loading or unloading of goods, such as, but not
limited to, Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In
and Out Stowed (FIOS).

c. Reference in a non-negotiable sea waybill to costs which may be levied,

for example, as a result of a delay in unloading the goods, or after the
goods have been unloaded (demurrage costs) or costs covering the late
return of containers (detention costs) is not an indication of costs additional
to freight.

CHARTER PARTY BILL OF LADING

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ISBP

Paragraph G1 to G27

Application of UCP 600 article 22

G1) When there is a requirement in a credit for the presentation of a

charter party bill of lading, or when a credit allows presentation of a charter
party bill of lading and a charter party bill of lading is presented, UCP 600
article 22 is to be applied in the examination of that document.

G2) a. A transport document, however named, containing any indication

that it is subject to, or any reference to, a charter party is deemed to be a
charter party bill of lading.

b. A transport document, however named, indicating expressions such as

"freight payable as per charter party dated (with or without mentioning a
date)", or "freight payable as per charter party", will be an indication that it
is subject to a charter party.

G3) A transport document, however named, containing a code name or

form name usually associated with a charter party bill of lading, for
example, "Congenbill" or "Tanker Bill of Lading" without any further
indication or reference to a charter party, is not by itself an indication of, or
reference to, a charter party.

Signing of a charter party bill of lading

G4) a. A charter party bill of lading is to be signed in the form described in

UCP 600 sub-article 22 (a) (i).

b. When the master (captain), owner or charterer signs a charter party bill
of lading, the signature of the master (captain), owner or charterer is to be
identified as "master" ("captain"), "owner" or "charterer".

c. When an agent signs a charter party bill of lading for [or on behalf of]
the master (captain), owner or charterer, the agent is to be named and, in
addition, to indicate that it is signing as agent for [or on behalf of] the
master (captain), owner or charterer as the case may be.

i. When a charter party bill of lading is signed by an agent for [or on behalf
of] the master (captain), the name of the master (captain) need not be
stated.

ii. When a charter party bill of lading is signed by an agent for [or on behalf
of] the owner or charterer, the name of the owner or charterer is to be

45 | P a g e
stated.

On board notation, date of shipment, pre-carriage, place of receipt

and port of loading

G5) a. When a pre-printed "Shipped on board" charter party bill of lading is

presented, its issuance date will be deemed to be the date of shipment
unless it bears a separate dated on board notation. In the latter event, such
date will be deemed to be the date of shipment whether that date is before
or after the issuance date of the charter party bill of lading. The on board
date may also be indicated in a designated field or box.

b. Notwithstanding that a credit may require a charter party bill of lading to

evidence a port-to-port shipment:

i. when a charter party bill of lading indicates a place of receipt that is the
same as the port of loading, for example, place of receipt Rotterdam CY
and the port of loading Rotterdam, and there is no indication of a means of
pre-carriage (either in the pre-carriage field or the place of receipt field); or

ii. when a charter party bill of lading indicates a place of receipt different
from the port of loading, for example, place of receipt Amsterdam and port
of loading Rotterdam, and there is no indication of a means of pre-carriage
(either in the pre-carriage field or the place of receipt field), then:

(a) when a charter party bill of lading is pre-printed "shipped on board", the
date of issue will be deemed to be the date of shipment, and no further on
board notation is required.

(b) when a charter party bill of lading is pre-printed "received for

shipment", a dated on board notation is required, and the date appearing in
the notation will be deemed to be the date of shipment. The on board date
may also be indicated in a designated field or box.

c. Notwithstanding that a credit may require a charter party bill of lading to

evidence a port-to-port shipment, when a charter party bill of lading:

i. indicates a place of receipt different from the port of loading, for

example, place of receipt Amsterdam and port of loading Rotterdam, and
there is an indication of a means of pre-carriage (either in the pre-carriage
field or the place of receipt field), regardless of whether it is pre-printed
"shipped on board" or "received for shipment", it is to bear a dated on
board notation which also indicates the name of the vessel and the port of
loading stated in the credit. Such notation may also appear in a designated
field or box. The date appearing in the on board notation or designated field
or box will be deemed to be the date of shipment.

ii. indicates a means of pre-carriage (either in the pre-carriage field or the

46 | P a g e
place of receipt field), no matter if no place of receipt is stated, or whether
it is pre-printed "shipped on board" or "received for shipment", it is to bear
a dated on board notation which also indicates the name of the vessel and
the port of loading stated in the credit. Such notation may also appear in a
designated field or box. The date appearing in the on board notation or
designated field or box will be deemed to be the date of shipment.

d. When a charter party bill of lading shows wording such as "When the
place of receipt box has been completed, any notation on this charter party
bill of lading of "on board", "loaded on board" or words of similar effect
shall be deemed to be on board the means of transportation performing the
carriage from the place of receipt to the port of loading" or words of similar
effect, and if, in addition, the place of receipt box is completed, a charter
party bill of lading is to bear a dated on board notation. The dated on board
notation is also to indicate the name of the vessel and the port of loading
stated in the credit. Such notation may also appear in a designated field or
box. The date appearing in the on board notation or designated field or box
will be deemed to be the date of shipment.

e. The named port of loading, as required by the credit, should appear in

the port of loading field on a charter party bill of lading. However, it may
also be stated in the field headed "Place of receipt" or words of similar
effect, provided there is a dated on board notation evidencing that the
goods were shipped on board a named vessel at the port stated under
"Place of receipt" or words of similar effect.

f. A charter party bill of lading is to indicate the port of loading stated in the
credit. When a credit indicates the port of loading by also stating the
country in which the port is located, the name of the country need not be
stated.

g. When a credit indicates a geographical area or range of ports of loading

(for example, "Any European Port" or "Hamburg, Rotterdam, Antwerp
Port"), a charter party bill of lading is to indicate the actual port or ports of
loading, which are to be within that geographical area or range of ports. A
charter party bill of lading need not indicate the geographical area.

h. When a charter party bill of lading indicates more than one port of
loading, it is to evidence an on board notation with the relevant on board
date for each port of loading, regardless of whether it is pre-printed
"received for shipment" or "shipped on board". For example, when a charter
party bill of lading indicates that shipment has been effected from Brisbane
and Adelaide, a dated on board notation is required for both Brisbane and
Adelaide.

G6) Terms such as "Shipped in apparent good order", "Laden on board",

"Clean on board" or other phrases that incorporate "shipped" or "on board"
have the same effect as the words "Shipped on board".

47 | P a g e
Port of discharge

G7) a. The named port of discharge, as required by the credit, should

appear in the port of discharge field within a charter party bill of lading.

b. However, the named port of discharge may be stated in the field headed
"Place of final destination" or words of similar effect provided there is a
notation evidencing that the port of discharge is that stated under "Place of
final destination" or words of similar effect. For example, when a credit
requires shipment to be effected to Felixstowe, but Felixstowe is shown as
the place of final destination instead of the port of discharge, this may be
evidenced by a notation stating "Port of discharge Felixstowe".

G8) A charter party bill of lading is to indicate the port of discharge stated
in the credit. When a credit indicates the port of discharge by also stating
the country in which the port is located, the name of the country need not
be stated.

G9) When a credit indicates a geographical area or range of ports of

discharge (for example, "Any European Port" or "Hamburg, Rotterdam,
Antwerp Port"), a charter party bill of lading may indicate the actual port of
discharge, which is to be within that geographical area or range of ports, or
it may show the geographical area or range of ports as the port of
discharge.

Original charter party bill of lading

G10) a. A charter party bill of lading is to indicate the number of originals

that have been issued.

b. Charter party bills of lading marked "First Original", "Second Original",

"Third Original", or "Original", "Duplicate", "Triplicate" or similar
expressions are all originals.

Consignee, order party, shipper and endorsement, and notify party

G11) When a credit requires a charter party bill of lading to evidence that
goods are consigned to a named entity, for example, "consigned to (named
entity)" (i.e., a "straight" charter party bill of lading or consignment) rather
than "to order" or "to order of (named entity)", it is not to contain the
expressions "to order" or "to order of" preceding the named entity or the
expression "or order" following the named entity, whether typed or pre-
printed.

G12) a. When a charter party bill of lading is issued "to order" or "to order
of the shipper", it is to be endorsed by the shipper. An endorsement may
be made by a named entity other than the shipper, provided the
endorsement is made for [or on behalf of] the shipper.

b. When a credit requires a charter party bill of lading to evidence that

48 | P a g e
goods are consigned "to order of (named entity)", it is not to indicate that
the goods are straight consigned to that named entity.

G13) a. When a credit stipulates the details of one or more notify parties, a
charter party bill of lading may also indicate the details of one or more
additional notify parties.

b. i. When a credit does not stipulate the details of a notify party, a charter
party bill of lading may indicate the details of any notify party and in any
manner (except as stated in paragraph G13) (b) (ii)).

ii. When a credit does not stipulate the details of a notify party, but the
details of the applicant appear as notify party on a charter party bill of
lading, and these details include the applicant's address and contact details,
they are not to conflict with those stated in the credit.

G14) When a credit requires a charter party bill of lading to evidence goods
consigned to or to the order of "issuing bank" or "applicant" or notify
applicant" or "issuing bank", a charter party bill of lading is to indicate the
name of the issuing bank or applicant, as applicable, but need not indicate
their respective addresses or contact details that may be stated in the
credit.

G15) When the address and contact details of the applicant appear as part
of the consignee or notify party details, they are not to conflict with those
stated in the credit.

Partial shipment and determining the presentation period when

multiple sets of charter party bills of lading are presented

G16) Shipment on more than one vessel is a partial shipment, even if each
vessel leaves on the same day for the same destination.

G17) a. When a credit prohibits partial shipment, and more than one set of
original charter party bills of lading are presented covering shipment from
one or more ports of loading (as specifically allowed, or within a
geographical area or range of ports stated in the credit), each set is to
indicate that it covers the shipment of goods on the same vessel and same
journey and that the goods are destined for the same port of discharge,
geographical area or range of ports.

b. When a credit prohibits partial shipment, and more than one set of
original charter party bills of lading are presented in accordance with
paragraph G17) (a) and incorporate different dates of shipment, or one set
of original charter party bills of lading is presented indicating different dates
of shipment, the latest of these dates is to be used for the calculation of
any presentation period and must fall on or before the latest shipment date
stated in the credit.

c. When partial shipment is allowed, and more than one set of original
49 | P a g e
charter party bills of lading are presented as part of a single presentation
made under one covering schedule or letter and incorporate different dates
of shipment, on different vessels or the same vessel for a different journey,
the earliest of these dates is to be used for the calculation of any
presentation period, and each of these dates must fall on or before the
latest shipment date stated in the credit.

Clean charter party bill of lading

G18) A charter party bill of lading is not to include a clause or clauses that
expressly declare a defective condition of the goods or their packaging.

For example:

a. A clause on a charter party bill of lading such as "packaging is not

sufficient for the sea journey" or words of similar effect is an example of a
clause expressly declaring a defective condition of the packaging.

b. A clause on a charter party bill of lading such as "packaging may not be

sufficient for the sea journey" or words of similar effect does not expressly
declare a defective condition of the packaging.

G19) a. It is not necessary for the word "clean" to appear on a charter

party bill of lading even when the credit requires a charter party bill of
lading to be marked "clean on board" or "clean".

b. Deletion of the word "clean" on a charter party bill of lading does not
expressly declare a defective condition of the goods or their packaging.

Goods description

G20) A goods description indicated on a charter party bill of lading may be

in general terms not in conflict with the goods description in the credit.

G21) A charter party bill of lading may indicate that the goods are part of a
larger consignment loaded onto the named vessel by reference to "without
segregation", "commingled" or words of similar effect.

Corrections and alterations ("corrections")

G22) Any correction of data on a charter party bill of lading is to be

authenticated. Such authentication is to appear to have been made by the
master (captain), owner, charterer or any one of their named agents, who
may be different from the agent that may have issued or signed a charter
party bill of lading, provided they are identified as an agent of the master
(captain), owner or charterer.

G23) Non-negotiable copies of a charter party bill of lading need not include
authentication of any corrections that may have been made on the original.

50 | P a g e
Freight and additional costs

G24) A statement appearing on a charter party bill of lading indicating the

payment of freight need not be identical to that stated in the credit but is
not to conflict with data in that document, any other stipulated document or
the credit. For example, when a credit requires a charter party bill of lading
to be marked "freight payable at destination", it may be marked "freight
collect".

G25) a. When a credit states that costs additional to freight are not
acceptable, a charter party bill of lading is not to indicate that costs
additional to the freight have been or will be incurred.

b. An indication of costs additional to freight may be made by express

reference to additional costs or by the use of trade terms which refer to
costs associated with the loading or unloading of goods, such as, but not
limited to, Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In
and Out Stowed (FIOS).

c. Reference in a charter party bill of lading to costs which may be levied,

for example, as a result of a delay in unloading the goods or after the
goods have been unloaded (demurrage costs) is not an indication of costs
additional to freight.

Release of goods with more than one charter party bill of lading to
be surrendered

G26) A charter party bill of lading is not to expressly state that goods
covered by that charter party bill of lading will only be released upon its
surrender together with one or more other charter party bills of lading,
unless all of the referenced charter party bills of lading form part of the
same presentation under the same credit.

For example, "[Cargo XXXX] is covered by B/L No. YYY and ZZZ, and can
only be released to a single merchant upon presentation of all charter party
bills of lading of that merchant" is considered to be an express statement
that one or more other charter party bills of lading, related to the
referenced cargo, must be surrendered prior to the goods being released.

Charter party contracts

G27) Unless UCP 600 sub-article 22 (b) is specifically excluded and the
credit specifically indicates the data that are to be examined and to what
extent, banks do not examine any content of a charter party contract, even
when such contract is required as a stipulated document under the credit.

AIR TRANSPORT DOCUMENT

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ISBP

Paragraph H1 to H27

Application of UCP 600 article 23

H1) A requirement in a credit for the presentation of an air transport

document, however named, covering an airport-to-airport shipment means
that UCP 600 article 23 is to be applied in the examination of that
document.

H2) An air transport document need not be titled "air waybill", "air
consignment note" or words of similar effect even when the credit so names
the required document.

Issuance, carrier, identification of the carrier and signing of an air

transport document

H3) a. An air transport document may be issued by any entity other than a
carrier provided it meets the requirements of UCP 600 article 23.

b. When a credit indicates "Freight Forwarder's air waybill is acceptable" or

"House air waybill is acceptable" or words of similar effect, an air transport
document may be signed by the issuing entity without it being necessary to
indicate the capacity in which it has been signed or the name of the carrier.

H4) A stipulation in a credit that "Freight Forwarder's air waybill is not

acceptable" or "House air waybill is not acceptable" or words of similar
effect has no meaning in the context of the title, format, content or signing
of an air transport document unless the credit provides specific
requirements detailing how the air transport document is to be issued and
signed. In the absence of these requirements, such a stipulation is to be
disregarded, and the air transport document presented is to be examined
according to the requirements of UCP 600 article 23.

H5) a. An air transport document is to be signed in the form described in

UCP 600 sub-article 23 (a) (i) and to indicate the name of the carrier,
identified as the carrier.

b. When an air transport document is signed by a named branch of the

carrier, the signature is considered to have been made by the carrier.

c. The carrier is to be identified by its name instead of an IATA airline code,

for example, British Airways instead of BA, Lufthansa instead of LH.

H6) When an agent signs an air transport document "for [or on behalf of]
the carrier", the agent is to be named and, in addition, to indicate that it is
signing as "agent for (name), the carrier" or as "agent on behalf of (name),
the carrier" or words of similar effect. When the carrier is identified
52 | P a g e
elsewhere in the document as the "carrier", the named agent may sign, for
example, as "agent for [or on behalf of] the carrier" without naming the
carrier again.

Goods accepted for carriage, date of shipment and requirement for

an actual date of shipment

H7) An air transport document is to indicate that the goods have been
accepted for carriage or words of similar effect.

H8) a. An air transport document is to indicate a date of issuance. This date

will be deemed to be the date of shipment unless an air transport document
contains a specific notation of the actual date of shipment. In the latter
event, the date stated in the notation will be deemed to be the date of
shipment whether that date is before or after the issuance date of the air
transport document.

b. In the absence of a specific notation containing the actual date of

shipment, any other information appearing on an air transport document
relative to this information (including, for example, in a box labeled "For
Carrier Use Only", "Required Flight Date" or "Routing and Destination") is to
be disregarded in the determination of the date of shipment.

Airports of departure and destination

H9) An air transport document is to indicate the airport of departure and

airport of destination stated in the credit. When a credit indicates either of
these airports by also stating the country in which the airport is located, the
name of the country need not be stated.

H10) The airport of departure and airport of destination may also be

indicated by the use of IATA codes instead of evidencing the airport name
in full (for example, LAX instead of Los Angeles).

H11) When a credit indicates a geographical area or range of airports of

departure or destination (for example, "Any Chinese Airport" or "Shanghai,
Beijing, Guangzhou airport"), an air transport document is to indicate the
actual airport of departure or destination, which is to be within that
geographical area or range of airports. An air transport document need not
indicate the geographical area.

Original of an air transport document

H12) An air transport document is to appear to be the original for consignor

or shipper. When a credit requires a full set of originals, this is satisfied by
the presentation of an air transport document indicating that it is the
original for consignor or shipper.

Consignee, order party and notify party

53 | P a g e
H13) a. When a credit requires an air transport document to evidence that
goods are consigned "to order of (named entity)", it may indicate that the
goods are consigned to that entity, without mentioning "to order of".

b. When a credit requires an air transport document to evidence that goods

are consigned "to order" without naming the entity to whose order the
goods are to be consigned, it is to indicate that the goods are consigned to
either the issuing bank or the applicant, without the need to mention the
words "to order".

H14) a. When a credit stipulates the details of one or more notify parties,
an air transport document may also indicate the details of one or more
additional notify parties.

b. i. When a credit does not stipulate the details of a notify party, an air
transport document may indicate the details of any notify party and in any
manner (except as stated in paragraph H14) (b) (ii)).

ii. When a credit does not stipulate the details of a notify party, but the
details of the applicant appear as notify party on an air transport document,
and these details include the applicant's address and contact details, they
are not to conflict with those stated in the credit.

H15) When a credit requires an air transport document to evidence goods

consigned to "issuing bank" or "applicant" or notify "applicant" or "issuing
bank", an air transport document is to indicate the name of the issuing
bank or applicant, as applicable, but need not indicate their respective
addresses or any contact details that may be stated in the credit.

H16) When the address and contact details of the applicant appear as part
of the consignee or notify party details, they are not to conflict with those
stated in the credit.

Transhipment, partial shipment and determining the presentation

period when multiple air transport documents are presented

H17) Transhipment is the unloading and reloading of goods from one

aircraft to another during the carriage of those goods from the airport of
departure to the airport of destination stated in the credit. When an air
transport document does not indicate unloading and reloading between
these two airports, it is not transhipment in the context of the credit and
UCP 600 sub-articles 23 (b) and (c).

H18) Dispatch on more than one aircraft is a partial shipment, even if each
aircraft leaves on the same day for the same destination.

H19) a. When a credit prohibits partial shipment, and more than one air
transport documents are presented covering dispatch from one or more
airports of departure (as specifically allowed, or within a geographical area
or range of airports stated in the credit), each air transport document is to
54 | P a g e
indicate that it covers the dispatch of goods on the same aircraft and same
flight and that the goods are destined for the same airport of destination.

b. When a credit prohibits partial shipment, and more than one air
transport documents are presented in accordance with paragraph H19) (a)
and incorporate different dates of dispatch, the latest of these dates is to be
used for the calculation of any presentation period and must fall on or
before the latest shipment date stated in the credit.

c. When partial shipment is allowed, and more than one air transport
documents are presented as part of a single presentation made under one
covering schedule or letter and incorporate different dates of dispatch or
different flights, the earliest of these dates is to be used for the calculation
of any presentation period, and each of these dates must fall on or before
the latest shipment date stated in the credit.

Clean air transport document

H20) An air transport document is not to include a clause or clauses that

expressly declare a defective condition of the goods or their packaging.

For example:

a. A clause on an air transport document such as "packaging is not

sufficient for the air journey" or words of similar effect is an example of a
clause expressly declaring a defective condition of the packaging.

b. A clause on an air transport document such as "packaging may not be

sufficient for the air journey" or words of similar effect does not expressly
declare a defective condition of the packaging.

H21) a. It is not necessary for the word "clean" to appear on an air

transport document even when the credit requires an air transport
document to be marked "clean".

b. Deletion of the word "clean" on an air transport document does not

expressly declare a defective condition of the goods or their packaging.

Goods description

H22) A goods description indicated on an air transport document may be in

general terms not in conflict with the goods description in the credit.

Corrections and alterations ("corrections")

H23) Any correction of data on an air transport document is to be

authenticated. Such authentication is to appear to have been made by the
carrier or any one of its named agents, who may be different from the
agent that may have issued or signed the air transport document, provided

55 | P a g e
they are identified as an agent of the carrier.

H24) Copies of an air transport document need not include authentication

of any corrections that may have been made on the original.

Freight and additional costs

H25) A statement appearing on an air transport document indicating the

payment of freight need not be identical to that stated in the credit, but is
not to conflict with data in that document, any other stipulated document or
the credit. For example, when a credit requires an air transport document
to be marked "freight collect", it may be marked "freight payable at
destination".

H26) An air transport document may contain separate boxes, which by their
pre-printed headings indicate that they are for freight charges "prepaid"
and for freight charges "collect".

a. When a credit requires an air transport document to show that freight

has been prepaid, this will also be fulfilled by an indication of the freight
charges under the heading "Freight Charges Prepaid" or words of similar
effect.

b. When a credit requires an air transport document to show that freight is

to be collected or paid at destination, this will also be fulfilled by an
indication of the freight charges under the heading "Freight Charges
Collect" or words of similar effect.

H27) a. When a credit states that costs additional to freight are not
acceptable, an air transport document is not to indicate that costs
additional to the freight have been or will be incurred.

b. Reference in an air transport document to costs which may be levied, for

example, as a result of a delay in unloading the goods or after the goods
have been unloaded, is not an indication of costs additional to freight.

ROAD, RAIL OR INLAND WATERWAY TRANSPORT DOCUMENTS

ISBP

Paragraph J1 to J20

Application of UCP 600 article 24

J1) A requirement in a credit for the presentation of a transport document

covering movement of goods by either road or rail or inland waterway
means that UCP 600 article 24 is to be applied in the examination of that

56 | P a g e
document.

Carrier, identification of the carrier and signing of a road, rail or

inland waterway transport document

J2) a. A road, rail or inland waterway transport document is to be signed in

the form described in UCP 600 sub-article 24 (a) (i) and to indicate the
name of the carrier, identified as the carrier (except as stated in paragraph
J4) (b)).

b. When a road, rail or inland waterway transport document is signed by a

named branch of the carrier, the signature is considered to have been
made by the carrier.

c. The term "carrier" includes terms such as "issuing carrier", "actual

carrier", "succeeding carrier" and "contracting carrier".

J3) Any signature, stamp or notation of receipt of the goods is to appear to

indicate that it has been made by:

a. the carrier, identified as the carrier; or

b. a named agent acting or signing for [or on behalf of] the carrier and
indicating the name of the carrier, identified as the carrier, on whose behalf
that agent is acting or signing; or

c. a railway company or railway station of departure.

J4) a. The term "carrier" need not appear on the signature line provided the
transport document appears to be signed by the carrier or a named agent
for [or on behalf of] the carrier, and the carrier is otherwise identified
elsewhere in the transport document as the "carrier".

b. A rail transport document may bear a date stamp by the railway

company or railway station of departure without indicating the name of the
carrier or a named agent signing for [or on behalf of] the carrier.

Place of shipment and place of destination

J5) A road, rail or inland waterway transport document is to indicate the

place of shipment and place of destination stated in the credit. When a
credit indicates either of these places by also stating the country in which
the place is located, the name of the country need not be stated.

J6) When a credit indicates a geographical area or range of places of

shipment or destination (for example, "China" or "Shanghai, Beijing or
Guangzhou"), a road, rail or inland waterway transport document is to
indicate the actual place of shipment or destination, which is to be within
that geographical area or range of places. A road, rail or inland waterway

57 | P a g e
transport document need not indicate the geographical area.

Original and duplicate of a road, rail or inland waterway transport

document

J7) a. A rail or inland waterway transport document is to be considered as

an original whether or not it is so marked.

b. A road transport document is to indicate that it is the original for

consignor or shipper (copy for sender) or bear no marking indicating for
whom the document has been prepared.

c. Presentation of the original for consignor or shipper (copy for sender) of

a road transport document or duplicate rail transport document shall suffice
even when the credit requires presentation of a full set of the relevant
transport documents.

d. A duplicate (often a carbon copy) of a rail transport document,

authenticated by the signature or stamp of the railway company or the
railway station of departure, is considered to be an original.

Consignee, order party and notify party

J8) a. When a credit requires a road or rail transport document to evidence

that goods are consigned "to order of (named entity)", it may indicate that
the goods are consigned to that entity, without mentioning "to order of".

b. When a credit requires a road or rail transport document to evidence that

goods are consigned "to order" without naming the entity to whose order
the goods are to be consigned, it is to indicate that the goods are consigned
either to the issuing bank or the applicant, without the need to mention the
words "to order".

c. When a credit requires an inland waterway transport document,

paragraphs J8) (a) and (b) will apply except when the document is issued
in the form of a bill of lading. In such event, the consignee field is to be
completed according to the requirements of the credit.

J9) a. When a credit stipulates the details of one or more notify parties, a
road, rail or inland waterway transport document may also indicate the
details of one or more additional notify parties.

b. i. When a credit does not stipulate the details of a notify party, a road,
rail or inland waterway transport document may indicate the details of any
notify party and in any manner (except as stated in paragraph J9) (b) (ii)).

ii. When a credit does not stipulate the details of a notify party, but the
details of the applicant appear as notify party on a road, rail or inland
waterway transport document, and these details include the applicant's
address and contact details, they are not to conflict with those stated in the
58 | P a g e
credit.

J10) When a credit requires a road, rail or inland waterway transport

document to evidence goods consigned to or to the order of "issuing bank"
or "applicant" or notify "applicant" or "issuing bank", a road, rail or inland
waterway transport document is to indicate the name of the issuing bank or
applicant, as applicable, but need not indicate their respective addresses or
any contact details that may be stated in the credit. A road or rail transport
document need not also indicate "to order of", as stated in paragraph J8)
(a).

J11) When the address and contact details of the applicant appear as part
of the consignee or notify party details, they are not to conflict with those
stated in the credit.

Transhipment, partial shipment and determining the presentation

period when multiple road, rail or inland waterway transport
documents are presented

J12) Transhipment is the unloading and reloading of goods from one means
of conveyance to another within the same mode of transport (truck [lorry],
train, barge, etc.,) during the carriage of those goods from the place of
shipment, dispatch or carriage to the place of destination stated in the
credit. When a road, rail or inland waterway transport document does not
indicate unloading and reloading between these two places, it is not
transhipment in the context of the credit and UCP 600 sub-articles 24 (d)
and (e).

J13) Shipment on more than one means of conveyance (more than one
truck [lorry], train, barge, etc.,) is a partial shipment, even when such
means of conveyance leaves on the same day for the same destination.

J14) a. When a credit prohibits partial shipment, and more than one road,
rail or inland waterway transport documents are presented covering
shipment from one or more places of shipment, dispatch or carriage (as
specifically allowed, or within a geographical area or range of places stated
in the credit), each road, rail or inland waterway transport document is to
indicate that it covers the shipment, dispatch or carriage of goods on the
same means of conveyance and same journey and that the goods are
destined for the same place of destination.

b. When a credit prohibits partial shipment, and more than one road, rail or
inland waterway transport documents are presented in accordance with
paragraph J14) (a) and incorporate different dates of shipment, the latest
of these dates is to be used for the calculation of any presentation period,
and must fall on or before the latest shipment date stated in the credit.

c. When partial shipment is allowed, and more than one road, rail or inland
waterway transport documents are presented as part of a single
presentation made under one covering schedule or letter and incorporate
59 | P a g e
different dates of shipment, on different means of conveyance or the same
means of conveyance for a different journey, the earliest of these dates is
to be used for the calculation of any presentation period and each of these
dates must fall on or before the latest shipment date stated in the credit.

Clean road, rail or inland waterway transport document

J15) A road, rail or inland waterway transport document is not to include a

clause or clauses that expressly declare a defective condition of the goods
or their packaging.

For example:

a. A clause on a road, rail or inland waterway transport document such as

"packaging is not sufficient for the journey" or words of similar effect is an
example of a clause expressly declaring a defective condition of the
packaging.

b. A clause on a road, rail or inland waterway transport document such as

"packaging may not be sufficient for the journey" or words of similar effect
does not expressly declare a defective condition of the packaging.

J16) a. It is not necessary for the word "clean" to appear on a road, rail or
inland waterway transport document even when the credit requires a road,
rail or inland waterway transport document to be marked "clean" or "clean
on board".

b. Deletion of the word "clean" on a road, rail or inland waterway transport

document does not expressly declare a defective condition of the goods or
their packaging.

Goods description

J17) A goods description indicated on a road, rail or inland waterway

transport document may be in general terms not in conflict with the goods
description in the credit.

Corrections and alterations ("corrections")

J18) Any correction of data on a road, rail or inland waterway transport

document is to be authenticated. Such authentication is to appear to have
been made by the carrier or any one of its named agents, who may be
different from the agent that may have issued or signed the transport
document, provided they are identified as an agent of the carrier.

J19) Copies of a road, rail or inland waterway transport document need not
include any authentication of any corrections that may have been made on
the original.

60 | P a g e
Freight

J20) a. A statement appearing on a road, rail or inland waterway transport

document indicating the payment of freight need not be identical to that
stated in the credit, but is not to conflict with data in that document, any
other stipulated document or the credit. For example, when a credit
requires a road, rail or inland waterway transport document to be marked
"freight collect", it may be marked "freight payable at destination".

b. When a credit requires a road, rail or inland waterway transport

document to indicate that freight has been prepaid or freight is to be
collected at destination, this will also be fulfilled by the completion of boxes
marked "Franco" (freight prepaid) or "Non-Franco" (freight to be collected).

INSURANCE DOCUMENT AND COVERAGE

ISBP

Paragraph K1 to K23

Application of UCP 600 article 28

K1) A requirement in a credit for the presentation of an insurance

document, such as an insurance policy, insurance certificate or declaration
under an open cover, means that UCP 600 article 28 is to be applied in the
examination of that document.

Issuer, signing and original of an insurance document

K2) a. An insurance document is to appear to have been issued and signed

by an insurance company or underwriter or their agent or proxy. For
example, an insurance document issued and signed by "AA Insurance Ltd"
appears to have been issued by an insurance company.

b. When an issuer is identified as "insurer", the insurance document need

not indicate that it is an insurance company or underwriter.

K3) An insurance document may also be issued on an insurance broker's

stationery, provided the insurance document has been signed by an
insurance company or underwriter or their agent or proxy. An insurance
61 | P a g e
broker may sign an insurance document as agent or proxy for [or on behalf
of] a named insurance company or named underwriter.

K4) An insurance document signed by an agent or proxy is to indicate the

name of the insurance company or underwriter for [or on behalf of] which
the agent or proxy is signing, unless the insurance company or underwriter
name has been identified elsewhere in the document. For example, when
"AA Insurance Ltd" has been identified as the insurer, the document may
be signed "John Doe (by proxy) on behalf of the insurer" or "John Doe (by
proxy) on behalf of AA Insurance Ltd".

K5) When an insurance document requires a countersignature by the

issuer, the assured or a named entity, it must be countersigned.

K6) An insurance document may show only the trading name of the
insurance company in the signing field, provided it is identified as the
insurance company elsewhere on the document, for example, when an
insurance document is issued and signed "AA" in the signing field but shows
"AA Insurance Ltd" and its address and contact information elsewhere in
the document.

K7) a. An insurance document that indicates that cover is provided by more

than one insurer may be signed by a single agent or proxy on behalf of all
insurers or be signed by an insurer for [or on behalf of] all co-insurers. An
example of the latter will be when an insurance document is issued and
signed "AA Insurance Ltd, leading insurer for [or on behalf of] the co-
insurers".

b. Notwithstanding the provisions in paragraphs K2), K3) and K4), an

insurance document which indicates that cover is provided by more than
one insurer need not show the names of each insurer or the percentage of
cover of each insurer.

K8) When a credit requires the insurance document to be issued in more

than one original, or when the insurance document indicates that it has
been issued in more than one original, all originals are to be presented and
are to appear to have been signed.

Dates

K9) An insurance document is not to indicate an expiry date for the

presentation of any claims thereunder.

K10) a. An insurance document is not to indicate that cover is effective

from a date later than the date of shipment.

b. When an insurance document indicates a date of issuance later than the

date of shipment (as defined in UCP 600 articles 19-25), it is to clearly
indicate by addition or note that coverage is effective from a date not later

62 | P a g e
than the date of shipment.

c. An insurance document that indicates coverage has been effected from

"warehouse-to-warehouse" or words of similar effect, and is dated after the
date of shipment, does not indicate that coverage was effective from a date
not later than the date of shipment.

K11) In the absence of any other date stated to be the issuance date or
effective date of insurance coverage, a countersignature date will be
deemed to be evidence of the effective date of the insurance coverage.

Amount of cover and percentage

K12) When a credit does not indicate an amount to be insured, an

insurance document is to be issued in the currency of the credit and, as a
minimum, for the amount indicated under UCP 600 sub-article 28 (f) (ii).
There is no maximum percentage of insurance coverage.

K13) There is no requirement for insurance coverage to be calculated to

more than two decimal places.

K14) An insurance document may indicate that cover is subject to a

franchise or excess (deductible). However, when a credit requires the
insurance cover to be irrespective of percentage, the insurance document is
not to contain a clause stating that the insurance cover is subject to a
franchise or an excess (deductible). An insurance document need not state
"irrespective of percentage".

K15) When it is apparent from the credit or from the presentation that the
amount demanded only represents a certain part of the gross value of the
goods (for example, due to discounts, pre-payments or the like, or because
part of the value of the goods is to be paid at a later date), the calculation
of insurance cover is to be based on the full gross value of the goods as
shown on the invoice or the credit and subject to the requirements of UCP
600 sub-article 28 (f) (ii).

K16) Insurance covering the same risk for the same shipment is to be
covered under one document unless more than one insurance document is
presented indicating partial cover, and each document clearly reflects, by
percentage or otherwise:

a. the value of each insurer's cover;

b. that each insurer will bear its share of the liability severally and without
pre-conditions relating to any other insurance cover that may have been
effected for that shipment; and

c. the respective coverage of the documents, when totalled, equals at least

the insured amount required by the credit or UCP 600 sub-article 28 (f) (ii).

63 | P a g e
Risks to be covered

K17) a. An insurance document is to cover the risks required by the credit.

b. Even though a credit may be explicit with regard to risks to be covered,

there may be a reference to exclusion clauses in the insurance document.

K18) When a credit requires "all risks" coverage, this is satisfied by the
presentation of an insurance document evidencing any "all risks" clause or
notation, whether or not it bears the heading "all risks", even when it is
indicated that certain risks are excluded. An insurance document indicating
that it covers Institute Cargo Clauses (A) or Institute Cargo Clauses (Air),
when dispatch is effected by air satisfies a condition in a credit calling for
an "all risks" clause or notation.

Insured party and endorsement

K19) An insurance document is to be in the form required by the credit and,

where necessary, be endorsed by the entity to whose order or in whose
favour claims are payable.

K20) a. A credit should not require an insurance document to be issued "to

bearer", or "to order". A credit should indicate the name of an insured
party.

b. When a credit requires an insurance document to be issued "to order of

(named entity)" the document need not indicate "to order" provided that
the named entity is shown as the insured party or claims are payable to it,
and assignment by endorsement is not expressly prohibited.

K21) a. When a credit is silent as to the insured party, an insurance

document is not to evidence that claims are payable to the order of, or in
favour of, the beneficiary or any entity other than the issuing bank or
applicant, unless it is endorsed by the beneficiary or that entity in blank or
in favour of the issuing bank or applicant.

b. An insurance document is to be issued or endorsed so that the right to

receive payment under it passes upon, or prior to, the release of the
documents.

General Terms and Conditions of an Insurance Document

K22) Banks do not examine general terms and conditions in an insurance

document.

Insurance Premium

K23) Any indication on an insurance document regarding payment of an

insurance premium is to be disregarded unless the insurance document
indicates that it is not valid unless the premium has been paid and there is
64 | P a g e
an indication that the premium has not been paid.

INSURANCE DOCUMENT AND COVERAGE

ISBP

Paragraph K1 to K23

Application of UCP 600 article 28

K1) A requirement in a credit for the presentation of an insurance

document, such as an insurance policy, insurance certificate or declaration
under an open cover, means that UCP 600 article 28 is to be applied in the
examination of that document.

Issuer, signing and original of an insurance document

K2) a. An insurance document is to appear to have been issued and signed

by an insurance company or underwriter or their agent or proxy. For
example, an insurance document issued and signed by "AA Insurance Ltd"
appears to have been issued by an insurance company.

b. When an issuer is identified as "insurer", the insurance document need

not indicate that it is an insurance company or underwriter.

K3) An insurance document may also be issued on an insurance broker's

stationery, provided the insurance document has been signed by an
insurance company or underwriter or their agent or proxy. An insurance
broker may sign an insurance document as agent or proxy for [or on behalf
of] a named insurance company or named underwriter.

K4) An insurance document signed by an agent or proxy is to indicate the

name of the insurance company or underwriter for [or on behalf of] which
the agent or proxy is signing, unless the insurance company or underwriter
name has been identified elsewhere in the document. For example, when
"AA Insurance Ltd" has been identified as the insurer, the document may
be signed "John Doe (by proxy) on behalf of the insurer" or "John Doe (by
proxy) on behalf of AA Insurance Ltd".

K5) When an insurance document requires a countersignature by the

issuer, the assured or a named entity, it must be countersigned.

K6) An insurance document may show only the trading name of the
insurance company in the signing field, provided it is identified as the
insurance company elsewhere on the document, for example, when an
insurance document is issued and signed "AA" in the signing field but shows
"AA Insurance Ltd" and its address and contact information elsewhere in
65 | P a g e
the document.

K7) a. An insurance document that indicates that cover is provided by more

than one insurer may be signed by a single agent or proxy on behalf of all
insurers or be signed by an insurer for [or on behalf of] all co-insurers. An
example of the latter will be when an insurance document is issued and
signed "AA Insurance Ltd, leading insurer for [or on behalf of] the co-
insurers".

b. Notwithstanding the provisions in paragraphs K2), K3) and K4), an

insurance document which indicates that cover is provided by more than
one insurer need not show the names of each insurer or the percentage of
cover of each insurer.

K8) When a credit requires the insurance document to be issued in more

than one original, or when the insurance document indicates that it has
been issued in more than one original, all originals are to be presented and
are to appear to have been signed.

Dates

K9) An insurance document is not to indicate an expiry date for the

presentation of any claims thereunder.

K10) a. An insurance document is not to indicate that cover is effective

from a date later than the date of shipment.

b. When an insurance document indicates a date of issuance later than the

date of shipment (as defined in UCP 600 articles 19-25), it is to clearly
indicate by addition or note that coverage is effective from a date not later
than the date of shipment.

c. An insurance document that indicates coverage has been effected from

"warehouse-to-warehouse" or words of similar effect, and is dated after the
date of shipment, does not indicate that coverage was effective from a date
not later than the date of shipment.

K11) In the absence of any other date stated to be the issuance date or
effective date of insurance coverage, a countersignature date will be
deemed to be evidence of the effective date of the insurance coverage.

Amount of cover and percentage

K12) When a credit does not indicate an amount to be insured, an

insurance document is to be issued in the currency of the credit and, as a
minimum, for the amount indicated under UCP 600 sub-article 28 (f) (ii).
There is no maximum percentage of insurance coverage.

K13) There is no requirement for insurance coverage to be calculated to

66 | P a g e
more than two decimal places.

K14) An insurance document may indicate that cover is subject to a

franchise or excess (deductible). However, when a credit requires the
insurance cover to be irrespective of percentage, the insurance document is
not to contain a clause stating that the insurance cover is subject to a
franchise or an excess (deductible). An insurance document need not state
"irrespective of percentage".

K15) When it is apparent from the credit or from the presentation that the
amount demanded only represents a certain part of the gross value of the
goods (for example, due to discounts, pre-payments or the like, or because
part of the value of the goods is to be paid at a later date), the calculation
of insurance cover is to be based on the full gross value of the goods as
shown on the invoice or the credit and subject to the requirements of UCP
600 sub-article 28 (f) (ii).

K16) Insurance covering the same risk for the same shipment is to be
covered under one document unless more than one insurance document is
presented indicating partial cover, and each document clearly reflects, by
percentage or otherwise:

a. the value of each insurer's cover;

b. that each insurer will bear its share of the liability severally and without
pre-conditions relating to any other insurance cover that may have been
effected for that shipment; and

c. the respective coverage of the documents, when totalled, equals at least

the insured amount required by the credit or UCP 600 sub-article 28 (f) (ii).

Risks to be covered

K17) a. An insurance document is to cover the risks required by the credit.

b. Even though a credit may be explicit with regard to risks to be covered,

there may be a reference to exclusion clauses in the insurance document.

K18) When a credit requires "all risks" coverage, this is satisfied by the
presentation of an insurance document evidencing any "all risks" clause or
notation, whether or not it bears the heading "all risks", even when it is
indicated that certain risks are excluded. An insurance document indicating
that it covers Institute Cargo Clauses (A) or Institute Cargo Clauses (Air),
when dispatch is effected by air satisfies a condition in a credit calling for
an "all risks" clause or notation.

Insured party and endorsement

67 | P a g e
K19) An insurance document is to be in the form required by the credit and,
where necessary, be endorsed by the entity to whose order or in whose
favour claims are payable.

K20) a. A credit should not require an insurance document to be issued "to

bearer", or "to order". A credit should indicate the name of an insured
party.

b. When a credit requires an insurance document to be issued "to order of

(named entity)" the document need not indicate "to order" provided that
the named entity is shown as the insured party or claims are payable to it,
and assignment by endorsement is not expressly prohibited.

K21) a. When a credit is silent as to the insured party, an insurance

document is not to evidence that claims are payable to the order of, or in
favour of, the beneficiary or any entity other than the issuing bank or
applicant, unless it is endorsed by the beneficiary or that entity in blank or
in favour of the issuing bank or applicant.

b. An insurance document is to be issued or endorsed so that the right to

receive payment under it passes upon, or prior to, the release of the
documents.

General Terms and Conditions of an Insurance Document

K22) Banks do not examine general terms and conditions in an insurance

document.

Insurance Premium

K23) Any indication on an insurance document regarding payment of an

insurance premium is to be disregarded unless the insurance document
indicates that it is not valid unless the premium has been paid and there is
an indication that the premium has not been paid.

CERTIFICATE OF ORIGIN

ISBP

Paragraph L1 to L8

Basic requirement and fulfilling its function

L1) When a credit requires the presentation of a certificate of origin, this

will be satisfied by the presentation of a signed document that appears to
relate to the invoiced goods and certifies their origin.

L2) When a credit requires the presentation of a specific form of certificate

68 | P a g e
of origin such as a GSP Form A, only a document in that specific form is to
be presented.

Issuer of a certificate of origin

L3) a. A certificate of origin is to be issued by the entity stated in the credit.

b. When a credit does not indicate the name of an issuer, any entity may
issue a certificate of origin.

c. i. When a credit requires the presentation of a certificate of origin issued

by the beneficiary, the exporter or the manufacturer, this condition will also
be satisfied by the presentation of a certificate of origin issued by a
Chamber of Commerce or the like, such as, but not limited to, Chamber of
Industry, Association of Industry, Economic Chamber, Customs Authorities
and Department of Trade or the like, provided it indicates the beneficiary,
the exporter or the manufacturer as the case may be.

ii. When a credit requires the presentation of a certificate of origin issued by

a Chamber of Commerce, this condition will also be satisfied by the
presentation of a certificate of origin issued by a Chamber of Industry,
Association of Industry, Economic Chamber, Customs Authorities and
Department of Trade or the like.

Content of a certificate of origin

L4) A certificate of origin is to appear to relate to the invoiced goods, for

example, by:

a. a goods description that corresponds to that in the credit or a description

shown in general terms not in conflict with the goods description in the
credit; or

b. referring to a goods description appearing in another stipulated

document or in a document that is attached to, and forming an integral part
of, the certificate of origin.

L5) Consignee information, when shown, is not to conflict with the

consignee information in the transport document. However, when a credit
requires a transport document to be issued "to order", "to the order of
shipper", "to order of issuing bank", "to order of nominated bank (or
negotiating bank)" or "consigned to issuing bank", a certificate of origin
may show the consignee as any entity named in the credit except the
beneficiary. When a credit has been transferred, the first beneficiary may
be stated to be the consignee.

L6) A certificate of origin may indicate as the consignor or exporter an

entity other than the beneficiary of the credit or the shipper as shown on
any other stipulated document.

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L7) When a credit indicates the origin of the goods without stipulating a
requirement for the presentation of a certificate of origin, any reference to
the origin on a stipulated document is not to conflict with the stated origin.
For example, when a credit indicates "origin of the goods: Germany"
without requiring the presentation of a certificate of origin, a statement on
any stipulated document indicating a different origin of the goods is to be
considered a conflict of data.

L8) A certificate of origin may indicate a different invoice number, invoice

date and shipment routing to that indicated on one or more other stipulated
documents, provided the exporter or consignor shown on the certificate of
origin is not the beneficiary

PACKING LIST, NOTE OR SLIP ("Packing List")

ISBP

Paragraph M1 to M6

Basic requirement and fulfilling its function

M1) When a credit requires the presentation of a packing list, this will be
satisfied by the presentation of a document titled as called for in the credit,
or bearing a similar title or untitled, that fulfils its function by containing
any information as to the packing of the goods.

Issuer of a packing list

M2) A packing list is to be issued by the entity stated in the credit.

M3) When a credit does not indicate the name of an issuer, any entity may
issue a packing list.

Content of a packing list

M4) When a credit indicates specific packing requirements, without

stipulating the document to indicate compliance with these requirements,
any data regarding the packing of the goods mentioned on a packing list, if
presented, are not to conflict with those requirements.

M5) A packing list may indicate a different invoice number, invoice date and
shipment routing to that indicated on one or more other stipulated
documents, provided the issuer of the packing list is not the beneficiary.

M6) Banks only examine total values, including, but not limited to, total
quantities, total weights, total measurements or total packages, to ensure
that the applicable total does not conflict with a total shown in the credit

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and on any other stipulated document.

WEIGHT LIST, NOTE OR SLIP ("Weight List")

ISBP

Paragraph N1 to N6

Basic requirement and fulfilling its function

N1) When a credit requires the presentation of a weight list, this will be
satisfied by the presentation of a document titled as called for in the credit,
or bearing a similar title or untitled, that fulfils its function by containing
any information as to the weight of the goods.

Issuer of a weight list

N2) A weight list is to be issued by the entity stated in the credit.

N3) When a credit does not indicate the name of an issuer, any entity may
issue a weight list.

Content of a weight list

N4) When a credit indicates specific weight requirements, without

stipulating the document to indicate compliance with these requirements,
any data regarding the weight of the goods mentioned on a weight list, if
presented, are not to conflict with those requirements.

N5) A weight list may indicate a different invoice number, invoice date and
shipment routing to that indicated on one or more other stipulated
documents, provided the issuer of the weight list is not the beneficiary.

N6) Banks only examine total values, including, but not limited to, total
quantities, total weights, total measurements or total packages, to ensure
that the applicable total does not conflict with a total shown in the credit
and on any other stipulated document.

BENEFICIARY'S CERTIFICATE

ISBP

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Paragraph P1 to P4

Basic requirement and fulfilling its function

P1) When a credit requires the presentation of a beneficiary's certificate, this

will be satisfied by the presentation of a signed document titled as called for
in the credit, or bearing a title reflecting the type of certification that has
been requested or untitled, that fulfils its function by containing the data and
certification required by the credit.

Signing of a beneficiary's certificate

P2) A beneficiary's certificate is to be signed by, or for [or on behalf of], the
beneficiary.

Content of a beneficiary's certificate

P3) Data mentioned on a beneficiary's certificate are not to conflict with the
requirements of the credit.

P4) The data or certification mentioned on a beneficiary's certificate:

a. need not be identical to that required by the credit, but are to clearly
indicate that the requirement prescribed by the credit has been fulfilled;

b. need not include a goods description or any other reference to the credit or
another stipulated document.

ANALYSIS, INSPECTION, HEALTH, PHYTOSANITARY, QUANTITY

QUALITY AND OTHER CERTIFICATES ("certificate")

ISBP

Paragraph Q1 to Q11

Basic requirement and fulfilling its function

Q1) When a credit requires the presentation of such a certificate, this will
be satisfied by the presentation of a signed document titled as called for in
the credit, or bearing a similar title or untitled, that fulfils its function by
certifying the outcome of the required action, for example, the results of
the analysis, inspection, health, phytosanitary, quantity or quality
assessment.

Q2) When a credit requires the presentation of a certificate that relates to

an action required to take place on or prior to the date of shipment, the
certificate is to indicate:

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a. an issuance date that is no later than the date of shipment; or

b. wording to the effect that the action took place prior to, or on the date
of, shipment, in which event, when an issuance date is also indicated, it
may be subsequent to the shipment date but no later than the date of
presentation of the certificate; or

c. a title indicating the event, for example, "Pre-shipment Inspection

Certificate".

Issuer of a certificate

Q3) A certificate is to be issued by the entity stated in the credit.

Q4) When a credit does not indicate the name of an issuer, any entity
including the beneficiary may issue a certificate.

Q5) When a credit makes reference to an issuer of a certificate in the

context of its being "independent", "official", "qualified" or words of similar
effect, a certificate may be issued by any entity except the beneficiary.

Contents of a certificate

Q6) A certificate may indicate:

a. that only a sample of the required goods has been tested, analyzed or
inspected;

b. a quantity that is greater than that stated in the credit or on any other
stipulated document; or

c. more hold, compartment or tank numbers than that stated on the bill of
lading or charter party bill of lading.

Q7) When a credit indicates specific requirements with respect to analysis,

inspection, health, phytosanitary, quantity or quality assessment or the
like, with or without stipulating the document to indicate compliance with
these requirements, the data regarding the analysis, inspection, health,
phytosanitary, quantity or quality assessment or the like mentioned on the
certificate or any other stipulated document are not to conflict with those
requirements.

Q8) When a credit is silent as to the specific content to appear on a

certificate, including, but not limited to, any required standard for
determining the results of the analysis, inspection or quality assessment,
the certificate may include statements such as "not fit for human
consumption", "chemical composition may not meet required needs" or
words of similar effect, provided such statements do not conflict with the
credit, any other stipulated document or UCP 600.

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Q9) Consignee information, when shown, is not to conflict with the
consignee information in the transport document. However, when a credit
requires a transport document to be issued "to order", "to the order of
shipper", "to order of issuing bank", "to order of nominated bank (or
negotiating bank)" or "consigned to issuing bank", a certificate may show
the consignee as any entity named in the credit except the beneficiary.
When a credit has been transferred, the first beneficiary may be stated to
be the consignee.

Q10) A certificate may indicate as the consignor or exporter an entity other

than the beneficiary of the credit or the shipper as shown on any other
stipulated document.

Q11) A certificate may indicate a different invoice number, invoice date and
shipment routing to that indicated on one or more other stipulated
documents, provided the exporter or consignor shown on the certificate is
not the beneficiary.

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