CLARIFICATION ON CRM DOCUMENT EXAMINATION STANDARDS

 QUESTION

 Dear Mr. Old Man,

Thank you so much for your swift response — your explanation has clarified the previous issue for us.

We are now facing another matter and would greatly appreciate your guidance:

• As the Confirming Bank, we received a set of documents that appear to be compliant, including a CMR document printed on white paper with an orange/pink strip along the right-hand side.
• On the face of the CMR, it is clearly marked “Pink – Copy for Sender”. Based on this, we consider it to be the original copy for the sender.
• However, the Issuing Bank argues that since the paper itself is white, it should be regarded as the “Copy for Orderer”, as indicated elsewhere on the document.

Could you kindly confirm whether our view is correct — that this CMR should be treated as the “Copy for Sender”?

Thank you again for your time and expertise. If you decide to share this issue more broadly, we would be grateful if you could refrain from posting the document photo.

Best regards,

DTT

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ANSWER

 Hi,

The issuing bank is not correct in reasoning that, because the paper is white, the CMR must be the “Copy for Orderer” as indicated elsewhere on the document.

As per UCP 600 Article 14(d), banks are required to examine documents on their face to determine compliance with the terms and conditions of the credit, the UCP, and international standard banking practice.

The CMR in question clearly bears the pre-printed designation “Pink – Copy for Sender” on its face. This designation is commonly used in the transport industry to identify the purpose of each copy.

While the physical paper may appear white with an orange/pink strip, UCP 600 and ISBP 821 do not contain any rule or standard requiring specific paper colors to identify originals or copies of CMRs. Accordingly, color alone is not a valid reason to reject a document that otherwise complies on its face.

In international banking practice, when a document has a clear printed label like “Copy for Sender,” that label is taken at face value during document checking. It is not standard practice to ignore such a label based on a personal opinion about the paper’s color.

In our view, the CMR presented is compliant with the credit terms and UCP 600, and rejection based on the grounds stated is not substantiated.

Hope this helps clarify the issue.

Best regards,

Mr. Old Man