**Which Documents Are “Shipping Documents”? And Can an Invoice Show Breakdown of CIF/CFR Costs?**

Mr. Old Man Trade Finance Corner

Sometimes, a simple LC clause can lead to surprising confusion. Terms like “within 15 days from issuance of shipping documents” or “invoice showing CIF/CFR breakdown” look harmless—but they often trigger misunderstandings on what counts as shipping documents and how much flexibility an invoice really has.

 Below is today’s question from Priya, and my detailed clarification.

 “Shipping documents” — what does it really mean?

Some people read ISBP and think:

“Shipping documents = all documents except draft and courier/post receipts.”

That interpretation isn’t correct in this context.

That line in ISBP is used in the general sense of “documents required under a shipment LC”.

It is NOT a definition for calculating Field 48 – Period for Presentation.

Correct meaning:

In LC practice, “shipping documents” = transport documents, because they are the only documents that evidence shipment.

These include:

• Bill of Lading
• Sea Waybill
• Air Waybill
• Rail/Road consignment notes
• Multimodal transport documents
• FIATA FBL/FWB (if allowed)

Therefore:

If the LC says “within 15 days from issuance of shipping documents”,

you count from the shipment/issue date of the transport document — not from the invoice or CO date.

Using the earliest date of ALL documents contradicts UCP 600 art. 14(c).

2. Can an invoice show breakdown of CFR/CIF costs?

 YES — if the costs relate to the goods or their shipment.

Allowed examples:

• Product cost
• Freight
• Insurance
• Handling / documentation / terminal charges
• Miscellaneous (if shipment-related)

Consistent with UCP 600 Article 30(c), which recognizes that freight and insurance are based on soft quotations.

NOT allowed unless LC says so:

• Interest
• Bank charges
• Financing fees
• Penalties / late fees

These are financial charges, not shipment costs.

Example

LC amount: USD 10,000

Invoice shows:

• FOB: 8,000
• Freight: 1,500
• Miscellaneous (shipment cost): 500

→ Acceptable.

Invoice shows:

• Interest: 500

→ Not acceptable.

Conclusion:

• “Shipping documents” = transport documents.

Don’t let the invoice trick you into starting the clock early.

• Invoice breakdown is fine as long as it reflects shipment costs and avoids financial charges.

Simple as that.

_________

Mr. Old Man