WHERE A BILL IS NOT A BILL OF LADING

QUESTION

Dear Mr Old Man,

Please let me know your view on the following case:

Field 47A: Partial shipment effected in two and each bill must be presented separately

Quantity of goods: 20,000MT

The beneficiary presents under the same cover one set of documents including two separate sets of bills of lading: one BL showing quantity of goods shipped 10,000 MT and one 5,000 MT and draft covering total value of goods shipped under both bills of lading.

Is the presentation complied with the LC terms “”each bill must be presented separately”?

Thanks and best regards,

N.T
——-

ANSWER

Hi,

According to UCP 600 article 31, a presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and the same journey, provided they indicate the same destination, will not be regarded as covering partial shipment.

So, the shipment in question is not partial shipment and should be treated as the 1st shipment. The 2nd shipment has not yet been effected later.

Last but not least, the term “bill” in the statement “each bill must be presented separately” is not bill of lading. It is a bill of exchange or where no bill of exchanged is required, it is a request for payment or a written statement of money owed for goods or services supplied.

In my opinion, the presentation is complied with the LC terms and conditions.

Kind regards,

Mr. Old Man