Multimodal transport document (MMTD) content and additional references

1. The shipper details are often those of the beneficiary, but could be any entity (UCP 600,
sub-
article 14(k)).

2.

The consignee details are to be as specified in the documentary credit. 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, are not to be included when a documentary credit requires
a MMTD to evidence that goods are (straight) consigned to a named entity (ISBP 745,
paragraphs
D16-D17 and D19-D20).

When a documentary credit includes a requirement that an MMTD is to evidence goods

consigned
to or to the order of 'issuing bank' or 'applicant', or notify 'applicant' or 'issuing bank', then
it is to state the name of the issuing bank or applicant, as applicable, but need not state their
respective addresses or any contact details that may be included in the documentary credit
(ISBP
745, paragraph D19)

3.

When a documentary credit includes the requirements or details for one or more notify parties,
details of one or more additional notify parties can also be included on an MMTD. In the event
that a documentary credit does not provide details of any notify party, an MMTD may indicate
the details of any notify party and in any manner. The exception to this is when a documentary
credit does not stipulate the details of a notify party, but the details of the applicant appear as
notify party on an MMTD. If these details include the applicant's address and contact
details,

1
they are not to conflict with those stated in the documentary credit. (ISBP 745, paragraph D18).

4.

UCP 600, article 19, allows the document to be 'however named' and must indicate the name
of the carrier. The name of the carrier can be shown anywhere on the document (UCP 600, sub-
article 19(a), and ISBP 745, paragraphs D1-D3).

5.

Provides routing information, including any means of pre-carriage, place of receipt, port
of
loading, port of discharge or place of delivery, all of which should comply with those stated in
the documentary credit, and vessel name. The place of receipt or place of delivery may or may
not be the same as the ports of loading or discharge (UCP 600, sub-article 19(a)(iii), and ISBP
745,
paragraphs D8-D10 and D12-D14).

6. Provides information on shipping marks and container numbers, as applicable (ISBP

745,
paragraphs A32-A34).

7.

Provides information on the number of packages and, while not mandatory, if completed must
not conflict with data in any other stipulated document required by the documentary credit (UCP
600, sub-article 14(d)).

8.

Bears a description of the goods in general terms, not conflicting with the description of goods in
the documentary credit (UCP 600, sub-article 14(e), and ISBP 745, paragraph D26).

2
9.

Details of the gross and net weights are not to conflict with similar details on other stipulated
documents (UCP 600, sub-article 14(d)).

10. Details of the measurement, if any, are not to conflict with similar details on other stipulated
documents (UCP 600, sub-article 14(d)).

11. To indicate whether freight is prepaid or payable at destination (freight collect)

(ISBP 745,
paragraphs D30-D31).

12. Must indicate the number of originals that have been issued and all originals are to be
presented
unless the documentary credit provides otherwise (UCP 600, sub-article 19(a)(iv), and
ISBP 745,
paragraph D15).

13. To indicate whether freight is prepaid or payable at destination (freight collect)

(ISBP 745,
paragraphs D30-D31).

14. Indication that the goods have been received for shipment by the carrier, but note that
contents
of terms and conditions of carriage are not examined under a credit (UCP 600, sub-
article 19(a)
(ii)).

15. Indicates the place and date of issue of the MMTD (UCP 600, sub-article 19(a)(ii), and
ISBP 745,
paragraph D6).

3
16. Signed by the carrier or master or a named agent of either entity (UCP 600, sub-article
19(a)(i),
and ISBP 745, paragraph D5).

Common discrepancies in respect of transport documents

The most common discrepancies identified during examination include:

late shipment;

late presentation;

the ports of loading / dispatch / taking in charge differ from those

specified in the documentary credit;

the ports of discharge / final destination differ from those specified in

the documentary credit;

the transport document shows an intended vessel / intended port of

loading, but an on board notation does not additionally evidence the
named vessel or actual port of loading;

transhipment has been effected when the documentary credit specifically

prohibits it and excludes UCP 600, sub-articles 20(c)(ii), 21(c)(ii), 23(c)

4
 (ii) or 24(e)(ii);

an on board notation is absent from the bill of lading;

the on board notation is not dated;

the goods were shipped on deck;

the full set of transport documents have not been presented, as required
by the documentary credit;

claused bills of lading have been presented, showing a defective

condition of the packages or goods;

the transport documents do not identify the name of the carrier;

the documents are not signed in accordance with the respective article
of UCP 600;

the bills of lading are made out to order of shipper, or to order, and not
endorsed in blank; the data content is otherwise in conflict with that shown on
other
stipulated documents;

5
 there has been an unauthenticated alteration to the transport document;

the goods are covered by more than one set of transport documents;
and / or

the notify party details are incorrectly shown.

Other discrepancies might naturally arise, depending on the terms and

conditions of the documentary credit and the documents presented.

Notes to Figure 12.3

Insurance document content and additional references

1.

The name of the assured party (ISBP 745, paragraphs K19-K21).

2.

Transport details, not mandatory, but when such data is shown, it must not conflict with the
same
data appearing on other documents, especially the transport documents, or the
documentary
credit (UCP 600, sub-article 14(d)).

3.

Routing details, must not conflict with the same data appearing on other documents, especially

6
the transport documents, or the documentary credit (UCP 600, sub-article 14(d)) and comply
with
UCP 600, sub-article 28(f)(iii).

4.

If the date of shipment is shown, it must not conflict with the same data appearing on
other
documents, especially the transport documents, or the documentary credit (UCP 600, sub-
article
14(d)).

5.

The amount is as required by the credit, in the currency of the documentary credit, and
for
at least 110% of the CIF or CIP value of the goods (UCP 600, sub-article 28(f) and
ISBP 745,
paragraphs K12-K16).

6.

The shipping marks or container numbers, if shown, should not conflict with those appearing
on the transport document or as may be stated in the documentary credit (ISBP 745,
paragraphs
A32-A34).

7.

Description of goods not conflicting with the documentary credit (UCP 600, sub-article 14(e)).

8.

7
Indicates details of where claims are payable and by which entity.

9.

Provides contact details of the agent.

10. Provides details of risk coverage (UCP 600, sub-article 28(g) and ISBP 745, paragraphs
K17-K18).

11. Signed by an insurance company or underwriter or their agent or proxy (UCP 600, sub-
article
28(a) and ISBP 745, paragraphs K2-K7).

12.

Dated no later than the date of shipment unless the document indicates that coverage is
effective
from a date no later than the date of shipment (ISBP 745, paragraphs K10-K11).

13. Countersigned, if required, by the issuer, the assured or a named entity (ISBP 745,
paragraph K5).

Notes to Figure 12.5

Invoice content and additional references

1.

The title of the document should be as shown in the credit or may be abbreviated to 'Invoice'.
It should not be titled 'provisional', 'proforma' or similar unless required by the documentary
credit (ISBP 745, paragraph C1).

8
2.

Unique reference number allocated to the invoice.

3.

Should be completed if there is more than one page to the invoice, for example '1 / 2', '2 / 2'

(ISBP 745, paragraph A24).

4.

Date of issue, which is optional, but usually stated (ISBP 745, paragraph C10).

5.

Any reference other than the invoice number that may be relevant. This is optional.

6.

Any reference of the applicant (buyer), which may be the contract or proforma number stated in
the documentary credit, if not stated elsewhere on the invoice. This is optional.

7.

Any other reference that may be relevant to the transaction. This is optional.

8.

Beneficiary's name and address. For other forms of invoice, this will be accounted for by the use
of the beneficiary's letterhead (UCP 600, sub-article 18(a)(i), and ISBP 745, paragraph C2).

9
9.

Name and address of the applicant, unless otherwise required by the documentary credit. On
other forms of invoice, this will be accounted for by a simple reference to 'To', followed by the
name, or name and address of the applicant (UCP 600, sub-article 18(a)(ii)).

10. Routing details, not mandatory, but when such data is shown, it must not conflict with the
same
data appearing on other documents, especially the transport documents or the
documentary
credit (UCP 600, sub-article 14(d)).

11. Additional data, not mandatory, but when such data is shown, it must not conflict with the
same
data appearing on other documents or as may be stated in the documentary credit (UCP
600,
sub-article 14(d)).

12. Usually includes reference to the applicable Incoterm and documentary credit reference etc,
but
is not mandatory. The Incoterm could also be stated against the amount of the invoice.

13. The shipping marks or container numbers should not conflict with those shown on the
transport
document or as may be stated in the documentary credit (ISBP 745, paragraphs A32-
A34).

14. Description of goods that corresponds with that shown in the documentary credit
and an
indication of the amount that is due. If the description in the documentary credit includes
the
Incoterm, then this should be quoted here (UCP 600, sub-article 18(c), and ISBP 745,
paragraphs

10
 C3-C5).

15. Weight and measurement details, not mandatory, but when such data is shown, it
must not
conflict with the same data appearing on other documents (UCP 600, sub-article 14(d)).

16. Signed and dated, but only if required by the documentary credit (UCP 600, sub-article
18(a)(iv),
and ISBP 745, paragraph C10). Notes to Figure 12.6
Certificate of origin content and additional references

1.

Issued by the entity stated in the documentary credit, if any (ISBP 745, paragraph L3).

2.

Not to conflict with the consignee information in the transport document. However, this
is
subject to the allowances made in ISBP 745, paragraph L5.

3.

The country of origin of the goods.

4.

Routing details, not mandatory, but when such data is shown, it must not conflict with the same
data appearing on other documents, especially the transport documents, or the
documentary
credit (UCP 600, sub-article 14(d)).

5.

11
Optional additional information, not to conflict if stated elsewhere in other documents (UCP 600,
sub-article 14(d)).

6.

Generic description not to conflict with other documents (UCP 600, sub-article 14(e) and
ISBP
745, paragraph L4). Container number or shipping marks etc. to be the same as that shown on
the transport document. Number of boxes within the container, if stated, to be the same number
as shown on other documents (UCP 600, sub-article 14(d)). The shipping marks, if stated,
should

not conflict with those stated in the documentary credit (ISBP 745, paragraphs A32-A34).

7.

If completed, data not to conflict with other documents (UCP 600, sub-article 14(d)).

8.

Signed by the issuer and may be dated (ISBP 745, paragraph L1).

Document to be legalised, certified or visaed as required by the documentary credit.

Notes to Figure 14.1

Key criteria

Documentary credit requires the presentation of a multimodal transport document covering

shipment
from Hong Kong to Manchester.

12
1.

However named - document can be titled multimodal transport document, combined transport
document, through bill of lading etc.

2.

Name of carrier - at the signature line, the carrier (Titanic Line) is identified.

3.

Signed - the document is signed by IFS Shipping as agents of the carrier.

4.

Evidence of shipment from Hong Kong - there is a dated on board notation indicating that the
goods were shipped from Hong Kong port on 30 May 20XX.

5.

Date of shipment - the document is issued on 28 May 20XX but the on board date is 30 May
20XX. The date of shipment is 30 May 20XX.

6. Although the documentary credit required shipment from Hong Kong to Manchester,
the
document indicates that the goods were received by the agent or the carrier in Kowloon.
The
carriage between Kowloon and Hong Kong port is outside the terms of the documentary
credit.
A document examiner is only interested in the carriage from Hong Kong and when this
occurred.

7.

13
Full set - the document indicates that three originals have been issued.

Also note the following:

Terms and conditions of carriage - either the full terms will be indicated on the reverse of this
page or they will be referenced by an address, web address, location where they may be
viewed
(short form or blank back).

Charter party - there is no indication that the shipment was subject to a charter party.

Transhipment - this document covers the carriage from Kowloon to Manchester via Hong Kong
and Southampton ports. Notes to Figure 14.2
Key criteria

Documentary credit requires the presentation of a bill of lading covering shipment from Hong
Kong
to Southampton.

1.

However named - document can be titled bill of lading, house bill of lading, forwarder's bill of
lading etc.

2.

14
Name of carrier - at the signature line, the carrier (Titanic Line) is identified.

3.

Signed - the document is signed by IFS Shipping as agents of the carrier.

4.

Evidence of shipment from Hong Kong - there is a dated on board notation indicating that the
goods were shipped from Hong Kong port on 30 May 20XX. The addition of a place of receipt
that is different to the port of loading requires no additional information to appear as part of the
on board notation.

5.

Date of shipment - the document is issued on 28 May 20XX but the on board date is 30 May
20XX. The date of shipment is 30 May 20XX.

6.

Full set - the document indicates that three originals have been issued.

In addition note the following:

Terms and conditions of carriage - either the full terms will be indicated on the reverse of this
page or they will be referenced by an address, web address, location where they may be
viewed
(short form or blank back).

15
Charter party - there is no indication that the shipment was subject to a charter party.

Transhipment - this document covers the carriage from Kowloon to Southampton via Hong
Kong
but there is no indication of transhipment occurring between Hong Kong and Southampton. In
any event, provided the goods were shipped in containers, trailers or LASH barges, any
indication
of transhipment would be acceptable, provided the entire carriage was covered by one and the
same bill of lading.

Notes to Figure 14.3

Key criteria

Documentary credit calls for or permits the presentation of a charter party bill of lading.

1.

However named - document is called a bill of lading.

2.

Indication of charter party - reference appears in the heading and in the freight field below.

3.

Signed - the document is signed by an agent of the master of the named vessel.

4.

Loading on board - there is pre-printed wording that the goods have been shipped at the port

16
of loading.

5.

Date of shipment - the date of issue will be deemed to be the date of shipment.

6.

Port of loading and port of discharge - these are to be those stated in the documentary credit.

7.

Full set - the document indicates that three originals have been issued.

8.

Charter party contract - even if attached or requested under the documentary credit, it will not
be examined.

Common discrepancies that arise upon

Insurance documents (as is the case for other documents tendered under a
documentary credit) are to be examined as a whole.

Insurance documents can be complicated. Apart from the technical

language that can appear in the text, an insurance policy, for example, will

17
often consist of one or more riders or attachments that combine to form
a single document. As a result, it is neither practicable nor necessary for a
document examiner to read and understand all of the details of the text;
instead, a functional standard of examination should be adopted. This
standard should be directed towards focusing on:

the amount of insurance;

the name of the insurance company, agent or proxy that issued the
document;

the type of insurance document presented, as compared with that

required in the documentary credit, and whether it has been correctly
signed;

the insured party;

the endorsement or countersignature of the insured, if appropriate;

the date of issue;

whether an expiry date has been inserted for submission of any claim;

the party to whom claims are payable and where such claims are payable;

18
 the risks covered (as compared with the specific requirements in the
documentary credit);

the description of goods;

the insurance document indicating coverage has been effected at least

between the place of taking in charge or shipment and the place of
discharge or final destination as stated in the documentary credit;

the currency of the insurance document; and

whether the number of originals stated on the document have been

presented (if applicable).ISBP 745, paragraph K22, does not require a document
examiner to

review the printed terms and conditions of an insurance document to

determine compliance. This would include most, if not all, of the data that
would appear on a rider or attachment.

Banks do not examine general terms and conditions in an insurance

document.

The following are the more common discrepancies seen in respect of

insurance documents:

19
the currency of the insurance document is not the same as that specified
in the documentary credit;

the amount of insurance coverage is insufficient;

the goods description does not correspond to, or is not quoted in general
terms, when compared with that shown in the documentary credit;

the start and end points of the insurance are not in accordance with the
documentary credit or UCP 600, sub-article 28(f)(iii);

specific risks, as stipulated in the documentary credit, are not indicated

on the document;

the insurance document is not countersigned (where such

countersignature is required);

the insurance document is not endorsed in terms of the documentary

credit;

the insurance document is not that stipulated in the documentary credit

or otherwise authorised by UCP 600, sub-article 28(a);

20
the effective date of insurance is later than the date of shipment; and
/ or

all of the originals shown on the insurance document, as issued, are not
presented.

21