MMTD AND SHIPPED ON BOARD NOTATION

QUESTION

Dear Mr. Old Man:

ISBP745 D7

“When a credit requires shipment to commence from a port, i.e., when the first leg of the journey, as required by the credit, is by sea, a multimodal transport document is to indicate a dated on board notation, and in this event paragraph E6 (b-d) will also apply.”

I don’t understand why should a multimodal transport document such as multimodal BL indicate a dated on board notation if the 1st leg of the carriage is by sea. Does ISBP articl D7 imply that if the 1st leg of carriage is by sea, then the date of issuance of the multimodal BL will definitely not be the actual shipment date and hence the need for a dated on-board notation? What if the multimodal BL is pre-printed with the wordings “SHIPPED ON BOARD”?

From my understanding, a dated on-board notation is only required if (1) Place of receipt indicated on BL is the name port of loading stated in documentary credit; dated on board notation to state explicitly name of port of loading as stated in documentary credit. (2) Place of final destination indicated on BL is the name port of discharge stated in documentary credit; dated on board notation to state explicitly name of port of discharge as stated in documentary credit. (3) When documentary credit explicitly called for dated on-board notation. (4) When date of issuance of multimodal transport BL is not the actual shipment date.

Alex Soon

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ANSWER
Hi
ISBP 745 D7 is an explanation of UCP 600 sub-article 19 (a) (ii).

The words “dispatched, taken in charge or shipped on board” in Article 19 cover various forms of transport, i.e. “dispatched” refers to transport by air, taken in charge refers to transport by road and shipped on board refers to transport by sea. So, if the first leg of the journey by sea, i.e. starting at a port of loading, then “shipped on board notation” is required.

According to ICC Banking Commission Recommendations in respect of On Board Notations, Article 19 does not require an on board notation as a default position for most of the time. However, an on board notation is required when the LC so requests. It also requires when the LC requires shipment to be effected from a sea port, i.e. by sea, to the place of final destination. If a MMTD evidences a place of receipt that is different from the place stated in the LC, and that place stated in the LC is a port, the dated on board notation will require the addition of the name of the vessel and port of loading, unless the MMTD evidences that the on board notation or pre-printed shipped on board wording applies to the named vessel and port of loading. The key, therefore, is for the LC either:

(a) to expressly require an on board notation, or absent that;

(b) to make clear whether the place from which the goods are to be taken in charge by the carrier is a sea port.

Kind regards,

Mr. Old Man