Home Mr Old Man WHERE A MMTD CANNOT BE ISSUED IN NEGOTIABLE FORM

WHERE A MMTD CANNOT BE ISSUED IN NEGOTIABLE FORM

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Kien Pass, Dong Giang

QUESTION

If an MTD indicates the final leg to THE COUNTRY OF IMPORT be non-marine, the MTD cannot be issued in negotiable form nor be deemed to be a "document of title".

Example : Land [ country ''A'' of seller ] + sea [port of loading of country ''A'' to port of discharge at another country ''B''] + air [ Air port of departure of country ''B'' to airport of destination to country of import ''C''] + Land [ from air port of country ''C'' to warehouse of Buyer], the goods covered under MMTD will be paid to the consignee, and it can not be issued in a negotiable form and hence is not a document of title .

Pl clarify if the above is correct ?

—————–

ANSWER

Dear S.K,

I find it hard to be convinced by the statement that if an MMTD indicates the final leg to THE COUNTRY OF IMPORT be non-marine, the MMTD cannot be issued in negotiable form nor be deemed to be a "document of title".

In multimodal transport, the carrier undertakes to perform and/or in his own name to procure performance of the carriage from the inland place of receipt or the port of loading, whichever is applicable, to the port of discharge or the inland place of delivery, whichever is applicable.

Whether a MMTD is issued in negotiable form or non-negotiable form depends on the consignor’s option or request. If a MMTD is required in the LC, it will be issued in accordance with the LC requirement, i.e., “to order”, “to the order of a named entity” or “consigned to a named person”.

What makes me a bit confused is that in your example the inland place of delivery is the buyer’s warehouse. However, this cannot prevent me from thinking that a MMTD can be issued in negotiable form irrespective of whether the last leg of the journey is by road or rail.

Kind regards,
Nguyen Huu Duc

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2 Comments

  1. anonymous

    December 8, 2013 at 4:12 pm

    Anonymous writes:I 've googled and found out the "United Nations Convention of International Multimodal Transport of Goods (Geneva 24, May 1980)". In its Article 6, it defines the requirement for Negotiable MMTD. Moreover, the definition of MMT in Article 1 seems not to require the specific type of last leg of MMT. Therefore I also think that MMTD can be issued in negotiable form even the last leg is inland transportation.PS: However, in some other discussions, many people said that MMTD with the last leg is non-marine could not be negotiable. For instance, pls check this topic on http://letterofcreditforum.com/content/multimodal-transport-document

    Reply

  2. mroldmanvcb

    December 8, 2013 at 8:12 pm

    Perhaps their discussion is based on CDCS materials by Gary. As said, I do not agree with the view that where the last leg of journey is non marine, the MMTD cannot be issued in negotiable form (document of title).

    Reply

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