When “Legal Competent Authority” Meets Chamber of Commerce – What Does the LC Really Mean?

From time to time, I receive interesting questions from trade professionals that touch on both the letter and the spirit of UCP 600.

Here’s one from Mr. C.R. Nishanth about a Certificate of Origin clause that uses the term “legal competent authority.”

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QUESTION

Dear Sir,

How’s it going?

I have the below clause mentioned in the Letter of Credit:

“Certificate of Origin in 1 original certified by the Legal Competent Authority showing country of origin as India.”

In this case, I believe we can obtain the C/O issued by the Chamber of Commerce, Kerala – India.

As per UCP 600 – Article 3,

“Terms such as ‘first class’, ‘well known’, ‘qualified’, ‘independent’, ‘official’, ‘competent’ or ‘local’ used to describe the issuer of a document allow any issuer except the beneficiary to issue that document.”

Since the clause says “competent”, it seems any issuer (except the beneficiary) is acceptable.

Therefore, can “Legal Competent Authority” and “Competent” be considered the same?

Regards,

C.R. Nishanth

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ANSWER

Dear Nishanth,

The LC requires a Certificate of Origin issued by a legal competent authority showing the country of origin as India.

The term “legal competent authority” is not defined in UCP 600. However, Article 3 provides guidance for interpreting expressions such as “competent” or “local”, allowing any issuer except the beneficiary to issue the document — unless the LC specifically restricts who may issue it.

If the LC had simply required “competent authority”, then a C/O issued by the Chamber of Commerce, Kerala – India would clearly be acceptable under Article 3.

The addition of the word “legal” implies that the issuer should be recognized or authorized under government regulations to issue such a document, rather than just any organization that is “competent” in a general sense.

In India, Chambers of Commerce are generally recognized by the government as authorized bodies to issue Certificates of Origin. Therefore, a C/O issued by the Chamber of Commerce, Kerala – India should be acceptable, as the Chamber qualifies as a legal competent authority in this context.

In short:

• Legal competent authority means an authority legally recognized or empowered to issue the document.
• The Chamber of Commerce in Kerala meets this criterion under government recognition.
• Thus, the C/O issued by that Chamber should be acceptable.
• However, “legal competent authority” and “competent authority” are not strictly identical — the word “legal” narrows the scope to entities recognized by law or regulation.

Practical note:

To avoid ambiguity, it is advisable that an LC specify the exact acceptable issuer of the Certificate of Origin — for example, “issued by the Ministry of Commerce, India” or “by any Chamber of Commerce in India” — rather than using a broad phrase such as “legal competent authority.”

The presenter cannot reasonably be expected to determine which bodies are legally competent in a foreign jurisdiction, and a clearly worded LC minimizes the risk of documentary disputes.

I hope this clarifies your concern.

Best regards,

Mr. Old Man