Is Article 20 Applicable to a Surrendered Bill of Lading?

Introduction:

In trade finance, especially under letters of credit, questions often arise around the treatment of surrendered bills of lading—particularly when only a copy is presented. One common point of confusion is whether such documents fall under UCP 600 Article 20, which governs bills of lading.

In this Q&A, we clarify whether Article 20 applies to surrendered bills of lading, explain the practical meaning of a “surrendered” B/L, and explore what rules actually govern the examination of such documents under a letter of credit.

QUESTION

Dear Mr. Old Man,

Please give your idea about surrendered bills of lading.

Can we apply Article 20 (Bill of Lading) for checking surrendered bills of lading?

Looking forward to receiving your reply soon.

Thanks a lot.

XXX

________

ANSWER

Hi,

I assume that the “surrendered bill of lading” you’re referring to is a copy of a bill of lading stamped “SURRENDERED,” not an original document.

Why? Because in practice, the shipper (beneficiary) usually surrenders all original bills of lading to the carrier at the port of loading, allowing the carrier to instruct their agent at the discharge port to release the goods to the consignee without requiring original bills of lading.

In such cases, the shipper receives a copy of the bill of lading with a “SURRENDERED” stamp and a copy of the surrender message from the carrier.

When a credit requires presentation of a surrendered bill of lading (copy), the beneficiary can present this stamped copy.

According to ISBP 821, paragraph A6 (a), when a credit requires the presentation of a copy of a transport document covered by UCP 600 Articles 19–25, these articles (including Article 20) do not apply, since they only apply to originals. A copy is examined only to the extent stated in the credit, or otherwise under UCP 600 sub-article 14(f).

Therefore, a copy of a surrendered bill of lading is not examined under Article 20. It will be checked based on the terms of the credit or under sub-article 14(f) of UCP 600.

Kind regards,

Mr. Old Man