DOES “ANY CHINESE PORT” IN LC INCLUDE HONG KONG?

QUESTION

Dear Mr. Old Man,

Your opinion on the following matter would be much appreciated:

An LC specifies the following conditions:

• Port of loading : Any Chinese port
• Delivery terms: FOB any Chinese port

However, the documents presented show:

• Bill of Lading: Shipped on board at Hong Kong
• Commercial Invoice: Delivery terms stated as FOB Hong Kong

I understand that Hong Kong is a Special Administrative Region (SAR) of the People’s Republic of China, operating under a high degree of autonomy. However, the distinction can be quite confusing in the context of documentary compliance.

Does the BL indicating shipment from Hong Kong satisfy the LC requirement for shipment from “any Chinese port”?

Thank you in advance for your guidance.

Kind regards,

S.

——–

ANSWER

Hi S.,

You’re absolutely right to seek clarification on this—Hong Kong’s status often causes confusion in trade documents.

While Hong Kong functions under the “One Country, Two Systems” policy and maintains its own customs, legal, and financial systems, it remains a Special Administrative Region (SAR) of the People’s Republic of China.

In the context of documentary credits, unless the LC explicitly restricts shipment to “Mainland China only” or excludes Hong Kong, a Bill of Lading showing “shipped on board at Hong Kong” and an invoice indicating “FOB Hong Kong” would be considered compliant with the requirement of shipment from “any Chinese port.”

This interpretation is commonly accepted in practice and supported by general ICC guidance, although no specific opinion strictly codifies it. If needed, clarification can be sought from the applicant or issuing bank before shipment to avoid ambiguity.

 Conclusion:

Yes, unless otherwise restricted, shipment from Hong Kong fulfills the requirement for “any Chinese port” in an L/C.

Best regards,

Mr. Old Man