AUTHENTICATION OF CORRECTIONS ON BILL OF LADING AND INVOICE

QUESTION

LC states:

– Special condition: Documents showing anycorrections without authentication by the issuer are not acceptable.
– Invoice must be certified by Chamber of Commerce
– Trade terms: CFR ADEN SEAPORT YEMEN

The presented BL shows the letterhead of PIL Pte Ltd andis signed by PIL Vietnam Co., Ltd as Agent for the Carrier:PIL Pte Ltd.

The presented invoice certified by the Chamber of Commerce shows trade terms as CFR ADEN SEAPORT YEMEM.

QUESTIONS:

1. Who is eligible to authenticate corrections of data on the BL in question, PIL Pte Ltd or PIL Vietnam Co., Ltd?

2. The word “YEMEM” is a spelling mistake of “YEMEN”. Should it be corrected as “YEMEN”?

3. Can the beneficiary authenticate the correction of the invoice certified by the Chamber of Commerce without the need of being authenticated by the Chamber of Commerce?
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ANSWER

Hi,
.
1) Authentication of correction of data on Bill ofLading:

According to paragraph E24 ISBP 745, authentication of any correction on the Bill of Lading may be made by the carrier, master 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.

The special condition“Documents showing any corrections without authentication by the issuer are not acceptable” should be understood that any correction of data on documents including bill of lading must be authenticated by the issuer.

According to ICC Opinions R658/TA664rev, the issuer referred to in the special requirement mayor may not be the entity that is named on the heading of the document. It could be the name of the company or person that is completing and signing the document on behalf of the named entity.
.
For Bills of lading, itis common practice that they be completed and signed by the agent of the carrier. Therefore, the special condition would allow for the correction on the Bill of Lading to be authenticated EITHER by the named carrier, i.e., PIL Pte Ltd, OR by the entity that completed and signed the Bill of Lading on behalf of the carrier, i.e., their agent – PIL Vietnam Co., Ltd.

2) YEMEM or YEMEN?

YEMEM is just a misspelling of YEMEN. It is a mistake by the issuing bank. There is no discrepancy whether it is corrected or not.

3) Authentication of correction of data on Invoice:

According to paragraph A7 (a)(i) ISBP 745, any correction of data in a document issued by the beneficiary, with the exception of drafts, need not be authenticated.

According to paragraph A7 (a) (ii) ISBP 745,when a document issued by the beneficiary has been legalized, visaed,certified, etc., any correction of data is to be authenticated by at least oneof 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.

The special condition “Documents showing anycorrections without authentication by the issuer are not acceptable” overrules/modifies paragraph A7 (a)(i) and is addition to the requirements expressed in paragraph A7 (a)(ii).

Therefore, to comply with paragraph A7 (a) (ii)ISBP 745 and the special condition of the LC, any correction of data on the invoice must be authenticated by the beneficiary AND the Chamber of Commerce.

This answer is also based on ICC OpinionsR658/TA664rev.

Kind regards,

Mr. Old Man