LC NUMBER AND DATE ON TRANSPORT DOCUMENTS

QUESTION

Dear Mr. Old Man,

I am a frequent follower of your blog whose posts are very helpful for my work as a trade finance specialist. I have a case regarding LC number and date in transport documents as follows:

I see that LC would require all documents including transport documents to indicate LC number and date. However, sometimes shipment is effected before LC is issued, hence, transport documents presented will not or cannot indicate LC number and date.

Is there a need for LC to be indicated on transport documents?

Is there any risk should transport document not indicate LC number and date?

Thank you in advance.

Best regards,

LPMT

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ANSWER

Hi,

ICC has repeated several times in opinions R289, R645, R578, TA774… that the request for insertion of L/C numbers is usually at the instigation of the issuing bank to facilitate the collation of documents when one or more go astray. The ICC has commented in the past that a refusal based on the absence of a LC number on a document, where requested in the L/C, is not grounds for refusal.

In these days goods may be shipped and sold several times while in transit before reaching the final buyer, i.e., the LC applicant. If this is the case, the transport document, which is issued before the LC is issued, cannot indicate the LC number and date.

As said, the request for insertion of L/C numbers is usually at the instigation of the issuing bank to facilitate the collation of documents when one or more go astray. Therefore, I do not see there is any considerable risk to the applicant should the transport document not show LC number and date.

Kind regards,

Mr. Old Man