WHETHER ARTICLE 20 IS APPLICABLE TO SURRENDERED BILL OF LADING

QUESTION

Dear Mr Old Man,

Please give your idea about Surrendered Bill of lading.

Can we apply Article 20 Bill of lading for checking Surrendered Bill of lading ?

Looking forward to receiving your soon reply

Thanks a lot

LC

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ANSWER

Hi,

I guess that the surrendered bill of lading referred to in your question is a photocopy/copy of the bill of lading stamped “SURRENDERED”, and not an original bill of lading stamped “SURRENDERED”.

Why so?  The shipper/beneficiary can only keep a copy of an original bills of lading stamped “SURRENDERED” because he has to surrender all original bills of lading to the carrier at the port of loading to enable the carrier to instruct his agent at the port of destination to deliver the goods to the consignee without production of original bill of lading. .

The procedures of surrendered bill of lading can be summarized as follows:

Where the shipment is not under D/P or L/C, the shipper may choose not to send original bills of lading to the buyer, but surrender all original bills of lading to the carrier at port of loading and instruct the carrier to deliver the goods to the consignee without production of original bills of lading. Upon receipt of the original bills of lading, the carrier would send a message to his agent at the port of destination stating that original bills of lading were surrendered at port of lading and the consignee may take delivery of the goods without production of the original bills of lading. The carrier hands the shipper a copy of the message and a copy bill of lading stamped “SURRENDERED”.

Where LC requires presentation of surrendered bill of lading (copy), the beneficiary can use such a copy of surrendered bill of lading.

According to ISBP 745 paragraph A6 (a), when a credit requires the presentation of a copy of a transport document covered by UCP 600 articles 19-25, the relevant article is not applicable, as these articles only apply to original transport documents. A copy of a transport document is to be examined only to the extent expressly stated in the credit, otherwise according to UCP 600 sub-article 14 (f).

So, the copy of surrendered bill of lading will not be examined under Article 20. It will be examined only to the extent expressly stated in the credit, otherwise according to 0 sub-article 14 (f) UCP 600.

Kind regards,

Mr. Old Man