On Board Notation: Does the Same Place of Receipt and Port of Loading Make a Difference?

Intro

A small detail, but an interesting one.

A bill of lading shows the Place of Receipt and Port of Loading as the same place. At first glance, one might think there is no need to mention the port of loading in the on-board notation.

But what if the B/L also indicates a means of pre-carriage?

That seemingly minor detail can change the answer—and this case provides a good illustration of how UCP 600 Article 20(a)(iii) and the ICC guidance on on-board notations should be applied.

Here is the question I received from a bank in Canada.

Question

Dear Mr. Old Man,

I am working for a bank in Canada and have a question regarding the on-board notation and UCP 600 Article 20(a)(iii).

The LC requires a shipped-on-board bill of lading.

The presented bill of lading indicates:

• Place of receipt: Port A
• Pre-carriage: Vessel B
• Port of loading: Port A
• Ocean vessel: Vessel C
• On-board notation: “SHIPPED ON BOARD Vessel C on 30 September, 20xx”

The issuing bank raised the following discrepancy:

“On-board notation not indicating port of loading.”

The nominated bank rejected the discrepancy, reasoning that since the place of receipt and port of loading are the same, there is no need for the on-board notation to include the port of loading.

Was the discrepancy raised by the issuing bank valid?

Thank you.

Best regards,
LV

_______

Answer

Dear LV,

Thank you for your question.

I would assume that the bill of lading in question is pre-printed “received for shipment.”

According to the Bill of Lading Flowchart attached to the ICC Recommendations in Respect of the Requirements for an On Board Notation, where a bill of lading is pre-printed “received for shipment” and indicates a place of receipt and a means of pre-carriage, a dated on-board notation is required, indicating the name of the vessel and the port of loading.

The bill of lading in question indicates:

• Place of receipt: Port A
• Pre-carriage: Vessel B
• Port of loading: Port A
• Ocean vessel: Vessel C

Therefore, the bill of lading should contain a dated on-board notation including both the name of the ocean vessel and the port of loading, for example:

“SHIPPED ON BOARD Vessel C at Port A on 30 September, 20xx.”

The fact that the place of receipt and port of loading are the same does not change this conclusion. The flowchart does not provide an exception on that basis. Once the bill of lading indicates a place of receipt together with a means of pre-carriage, the dated on-board notation is required to indicate the vessel and port of loading.

Conclusion

The discrepancy raised by the issuing bank was valid.

The on-board notation should have indicated both Vessel C and Port A, notwithstanding that the place of receipt and port of loading are the same.

Best regards,

Mr. Old Man