Is an Additional Place of Delivery on a Bill of Lading a Discrepancy?

A bill of lading sometimes contains transport details beyond those required by the letter of credit, such as a Place of Delivery in a different country from the Port of Discharge. Does this additional information create a discrepancy when the LC is silent on it? This Q&A explains the UCP 600 position and why such an entry is generally acceptable, provided it does not conflict with the credit.

Question

Hi Mr. Old Man,

I hope you are well!

I have a question for you.

The LC states:

• Port of loading: Any port in China
• Port of discharge: Any port in Togo

The LC requires a bill of lading.

The beneficiary presents a bill of lading showing:

• Port of loading: Shanghai, China
• Port of discharge: Port of Lomé, Togo
• Place of delivery: Ouagadougou, Burkina Faso

Is it a discrepancy because the bill of lading states a Place of Delivery that is not mentioned in the LC?

All the best,

Fatih

_______

Answer

Dear Fatih,

Thank you for your question.

Under UCP 600 sub-article 20(a)(iii), a bill of lading must appear to indicate shipment from the port of loading to the port of discharge stated in the credit.

In this case, the bill of lading indicates:

• Port of loading: Shanghai, China (a port in China); and
• Port of discharge: Port of Lomé, Togo (a port in Togo).

Therefore, it complies with both the LC requirement and UCP 600 sub-article 20(a)(iii).

The additional information showing Place of Delivery: Ouagadougou, Burkina Faso does not, by itself, create a discrepancy. It merely indicates that the carrier has agreed to transport the goods beyond the port of discharge, typically under a through transport or multimodal transport arrangement.

Since the LC neither prohibits nor specifies a Place of Delivery, this additional information does not conflict with the credit. Under international standard banking practice, supplementary information that does not conflict with the credit is acceptable.

Conclusion

No. In the scenario presented, the additional entry “Place of Delivery: Ouagadougou, Burkina Faso” should not be treated as a discrepancy merely because the LC does not mention or require a Place of Delivery. As long as the required port of loading and port of discharge comply with the credit, the additional Place of Delivery is acceptable.

Best regards,

Mr. Old Man