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WHY IS TRAILER INCLUDED IN ARTICLE 20 UCP 600?

By Mr Old Man
Posted on June 4, 2016
3 min read
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Da Nang, Vietnam

QUESTION

Dear Mr. Old Man,

Could you please share your idea as to the below context?

UCP 600 Article 20 states that: A bill of lading indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment, if the goods have been shipped in a container, “TRAILER” or lash barge as evidenced by the bill of lading.

If my understanding is correct, Article 20 will be applicable when transportation of goods is from port-to-port by Vessel .

My question is :
Why is “TRAILER” included in Article 20 ? (and Article 21)

Sanchai.

——–

ANSWER

Hi,

It’s a nice finding.

What I understand from your question is that Article 20 is applicable to the bill of lading covering a port – to – port shipment, hence, the means of transportation involved is vessel(s) only and not TRAILER – a kind of vehicle that moves on road.

So, why is TRAILER included in Article 20?

My comment is as follows:

TRAILER is a kind of container on wheels. Like goods shipped in a container, goods shipped in a TRAILER will be carried from the port of loading to the port of discharge in the SAME TRAILER. That is to say, the TRAILER containing goods is loaded on board the vessel at the port of loading and unloaded at the port of discharge. That is why TRAILER is included in Article 20 UCP 600.

Regarding transhipment, the provision in sub-article 29 (c) (iii)  UCP 400 is much clearer than that in sub-article 20 (c) (ii) UCP 600. I would like to quote here for your reference: “Even if transhipment is prohibited by the terms of credit, banks will accept transport documents which state or indicate that the goods are in container(s), trailer(s), “LASH” barge(s) or the like will be carried from a place of taking in charge to a place of final destination in the SAME CONTAINER(S), TRAILER(S), “LASH” BARGE(s) or the like under one and the same transport document.

Kind regards,

Mr. Old Man

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7 Comments

7 Comments

  1. Letter of Credit

    June 4, 2016 at 10:02 pm

    Dear Mr. Oldman,

    Once again, thank you very much for your kind comment.

    Can I conclude that transhipment are :

    1) the activity after the goods have been shipped on board.
    2) the activity that the goods are unloaded from one vessel and reloaded to another vessel.

    If yes, it will means that :

    1) “Trailer” (in other word, goods are in the trailer) is shipped on board the vessel.
    2) “Trailer” (in other word, goods are in the trailer) is unloaded from the vessel and reloaded to another vessel.

    As I have never experienced the situation where the “Trailer” is shipped on board (as “Normal Container” is more applicable), my last question is :
    Have you ever experienced this situation?

    Sanchai.

    Reply

  2. Letter of Credit

    June 4, 2016 at 10:19 pm

    Dear Mr. Oldman,

    I just realize that you make a little bit change to your previous answer and it will give an answer to my new question which was sent to you just a few minute ago.
    So please disregard that question and thank you very much for your kind clarification.

    Sanchai.

    Reply

  3. Sanchai

    July 13, 2016 at 3:35 pm

    Dear Mr.Oldman,

    Once again, I’d like to seek your opinion in regard to the L/C matter.
    I’d like to ask that : Can a person (who is a customer of a bank) be an Applicant or be a Beneficiary ?
    In other words, can we use the L/C for the transaction between
    – Person (Applicant) and Person (Beneficiary) or
    – Person (Applicant) and Company (Beneficiary) or
    – Company (Applicant) and Person (Beneficiary) ?

    If yes, how should the details of Person be mentioned in the L/C ?
    And how should document as required by the L/C be issued, for example Commercial Invoice and B/L ?
    Especially B/L, Can a person be mentioned as Shipper, Consignee or Notify Party ?

    Sanchai.

    Reply

    • mroldman

      July 19, 2016 at 11:26 pm

      Dear Sanchai,

      Sorry for my late reply. I went to the US for 10 days and just came back home today.

      My answers are YES to all the questions provided that person is allowed by his country ‘s law to import or export.

      Like a company, the name and address of the person can be filled in appropripiate fields of MT 700, e.g.,

      John Dole
      120 Tryton St. Charlotte, NC 12345

      A person can issue invoice and be a shipper, a consignee or a notify party.

      Kind regards,
      Mr. Old Man

      Reply

      • Sanchai

        July 22, 2016 at 1:18 pm

        Dear Mr. Oldman,

        Thank you very much for your kind advice.

        Sanchai.

        Reply

  4. Sanchai

    August 3, 2016 at 3:44 pm

    Dear Mr. Oldman,

    Once again, I’d like to seek your kind opinion for the below case :

    If L/C simply require “Packing List” and “Weight List” without the requirement for both documents to be signed, my question is that….
    Do they need to be signed ?
    (If both documents are issued on the issuer’s original stationery according to Article 17 of UCP 600)

    According to UCP 600, Invoice need not be signed. B/L and Insurance need to be signed according to its applicable provision.
    According to ISBP 745, “Certificate of Origin”, “Certificate” and “Beneficiary’s certificate” need to be signed.

    However, ISBP does not mention whether “Packing list” and “Weight list” need to be signed or not.
    It simply mentions that the documents are to be issued by the entity stated in the credit or any entity may issue such documents if L/C does not indicate the name of the issuer.

    Thank you in advance for your kind comment.

    Sanchai.

    Reply

    • mroldman

      August 3, 2016 at 7:53 pm

      Hi,

      My quick answer is that Packing List and Weight List do not need to be signed unless required by the LC.

      Kind regards,
      Mr. Old Man

      Reply

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