DOES SHIPMENT FROM ANY CHINESE PORT INCLUDE TAIPEI PORT?

QUESTION

Dear Mr. Old Man,

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

1) Let me know if what I’ve heard is true.

2) If it is true, what if the bill of lading indicates the port of lading as Taipei, Taiwan?

Thank you.

W.O
——–

ANSWER

Hi,

1) There were ever divided opinions as to whether shipment from “Any Chinese port” includes shipment from Hong Kong port or whether a bill of lading indicates port of lading as Hong Kong while L/C stipulates shipment from “Any port in China” is acceptable.

According to ICC opinions R799/TA770rev2, when the L/C indicates that shipment is to be effected from “Any Chinese Port”, this would include Hong Kong being shown as the port of loading.

ICC further noted that applicants and beneficiaries should be aware that differing customs systems and regimes operate in Hong Kong and at ports in Chinese Mainland. Therefore, the L/C should specifically indicate where shipment is only to be effected from or to a port in Chinese Mainland. Otherwise, banks will be required to honour or negotiate documents that indicate shipment from or to Hong Kong, even though the expectation under the contract and the L/C may have been for the use of a port of loading (or discharge) in Chinese Mainland.

So, what you’ve heard is true.

2) I believe that shipment from “Any Chinese port” does not include Taipei, Taiwan.

Kind regards,

Mr. Old Man