Does “Any Chinese Port” Include Hong Kong and Taipei?

This Q&A is a continuation of the Q&A regarding Hong Kong being a Chinese port

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QUESTION

Dear Mr. Old Man,

I’ve heard that if an L/C stipulates the port of loading as “Any port in China” or “Any Chinese port,” then a bill of lading showing Hong Kong as the port of loading is acceptable.

1. Could you confirm if this is true?
2. If so, what about a bill of lading showing Taipei, Taiwan as the port of loading?

Thank you,

W.O.

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ANSWER

Hi W.O.,

Thank you for your thoughtful question. Here’s my view on both points:

1. Yes, what you’ve heard is correct.

There were indeed divided views in the past about whether “Any Chinese port” includes Hong Kong. However, this has been clarified in ICC Opinions R799 / TA770rev2.

According to these opinions, when an L/C requires shipment from “Any Chinese port,” a bill of lading showing shipment from Hong Kong is acceptable. The ICC further notes that if the applicant or beneficiary intends for shipment to be strictly from or to a Mainland Chinese port, then this must be clearly stated in the credit.

Otherwise, banks are expected to honour or negotiate documents showing Hong Kong as the port of loading—even if the parties to the underlying contract expected only a Mainland China port.

2. No, shipment from Taipei, Taiwan is not acceptable under an L/C requiring shipment from “Any Chinese port.”

Despite the political sensitivities, in documentary credit practice, Taiwan is treated separately from the People’s Republic of China. Therefore, a bill of lading showing Taipei as the port of loading would not comply with the L/C condition requiring shipment from “Any Chinese port.”

Best regards,

Mr. Old Man