SHIPPED ON BOARD THE PRE-CARRIAGE VESSEL

QUESTION

LC requires:
– Full set of original Bill of Lading
– Port of Loading: HOCHIMINH CITY, VIETNAM
– Port of Discharge: BALTIMORE, MD, U.S.A

BL presented shows:
– Place of Receipt: HOCHIMINH CITY, VIETNAM
– Pre-carriage by: UNI-PROMOTE 198B
– Port of Loading: HOCHIMINH CITY, VIETNAM
– Ocean Vessel/Voy No: EVER DELUXE 0689-106E
– Port of Discharge: BALTIMORE, MD, U.S.A

Pre-printed "Laden on board" box shows:

JUL.16, 2013
UNI-PROMOTE 198B HOCHIMINH CITY, VIETNAM

The issuing bank raised the discrepancy: “B/L on board notation indicating the goods were shipped on board UNI-PROMOTE which would never leave HOCHIMINH CITY, VIETNAM”

Is the discrepancy valid?
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ANSWER

Hi,

The discrepancy raised by the issuing bank is valid at least according to ICC Opinions R350, R457 and TA743rev, and ICC Document 470/1128 rev final “Recommendations of the Banking Commission in respect of the requirements for an On Board Notation”, which says where the bill of lading is pre-printed “shipped on board” with an additional on board notation or completion of a box labeled “shipped on board date” and with place of receipt and an indication of a means of pre-carriage, the dated on board notation is required the addition of the name of the vessel and port of loading. It should be understood that the named vessel is the vessel that leaves the port of loading and not any vessel which may appear in the pre-carriage box.

As for the bill of lading in question, the correct on board notation would include the vessel which leave the port of loading, the port of loading and the on board date:

SHIPPED ON BOARD EVER DELUXE 0689-106E
AT HOCHIMINH CITY, VIETNAM ON JULY 16, 2013

(Note: EVER DELUXE 0689-106E is the ocean vessel that leaves the port of loading)

In container transportation, the goods may be shipped on board the pre-carriage vessel at the port of loading and this vessel leaves the port of loading for the port of transshipment (even in another country) where the goods are to be transshipped onto the mother/connecting vessel. If this is the case, then the on board notation can be indicated as follows:

SHIPPED ON BOARD UNI-PROMOTE 198B AT HOCHIMINH CITY, VIETNAM ON JULY 16, 2013

Mother/Connecting Vessel: EVER DELUXE 0689-106E

I see that this case is very popular in container transportation in Southeast Asia. However, ICC appears to forget to include this in their latest guide: Document 470/1128 rev final “Recommendations of the Banking Commission in respect of the requirements for an On Board Notation” or ISBP 745.

Kind regards,
Mr. Old Man
P/s: Also click here http://my.opera.com/mroldmanvcb/blog/2012/12/28/shipped-on-board-pre-carriage-vessel to view my answer to a similar question