Does “Clean On Board” Eliminate the Need for a Dated Onboard Notation?

A recurring question in documentary credit practice is whether the issue date of a bill of lading may be treated as the shipment date when the document is pre-printed “Received by the carrier” but also bears the wording “Clean On Board”. The answer is not always straightforward and depends on the interaction between UCP 600, ISBP, and ICC Banking Commission recommendations regarding onboard notations. In the following case, Priya raises an interesting question about whether an onboard notation alone is sufficient or whether a separate shipment date is still required.

Question

Dear Mr. Old Man,

Greetings.

Could you please share your opinion on the following scenario regarding the requirement for an onboard date?

The letter of credit requires the presentation of a bill of lading (B/L). The presented B/L contains:

1. An issue date.
2. The pre-printed wording: “Received by the carrier …”
3. The wording “Clean On Board” appearing in the body of the B/L.

According to ISBP, for a pre-printed “Shipped on Board” bill of lading, the date of issue may be regarded as the date of shipment unless the B/L indicates another onboard date. ISBP also states that the wording “Clean on Board” has the same meaning as “Shipped on Board”.

In the above scenario, can the issue date be considered the onboard date?

In other words, for a pre-printed “Received by the carrier” bill of lading, is the mere presence of an onboard notation sufficient, or must it also be accompanied by a shipment date?

Article 20 of UCP 600 provides that the issue date of a bill of lading may be deemed to be the date of shipment. Does this rule also apply to a pre-printed “Received by the carrier” bill of lading when an onboard notation is present?

I have read several ICC opinions concerning the requirement for an onboard date. According to those opinions, a dated onboard notation is required for a pre-printed “received for shipment” bill of lading.

I would be greatly obliged if you could share your opinion on this matter.

Regards,

Priya

_____

Answer

Dear Priya,

I am afraid that the information provided is insufficient for me to give a definitive answer.

According to the ICC Banking Commission’s recommendations regarding onboard notations:

1. Where a bill of lading is pre-printed “received for shipment”, with or without a place of receipt, and there is no indication of a means of pre-carriage, a dated onboard notation is required.
2. Where a bill of lading is pre-printed “shipped on board”, with or without a place of receipt, and there is no indication of a means of pre-carriage, the date of issue is deemed to be the date of shipment.
3. Where a bill of lading is pre-printed “shipped on board” and shows a place of receipt together with an indication of a means of pre-carriage, or where it shows only a means of pre-carriage, a dated onboard notation stating the name of the vessel and the port of loading is required.

Based on your description alone, it is not possible to conclude whether the bill of lading falls within case (1) or case (2). If the bill of lading is pre-printed ‘received for shipment’, ICC practice would generally require a dated onboard notation, notwithstanding the presence of the words ‘Clean On Board’.”

However, without examining the actual bill of lading, I cannot confirm that this conclusion is correct.

Best regards,

Mr. Old Man