Q&A Uncategorized WHY IS TRAILER INCLUDED IN ARTICLE 20 UCP 600? By Mr Old Man Posted on June 4, 2016 3 min read 7 0 5,476 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Da Nang, Vietnam QUESTION Dear Mr. Old Man, Could you please share your idea as to the below context? UCP 600 Article 20 states that: A bill of lading indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment, if the goods have been shipped in a container, “TRAILER” or lash barge as evidenced by the bill of lading. If my understanding is correct, Article 20 will be applicable when transportation of goods is from port-to-port by Vessel . My question is : Why is “TRAILER” included in Article 20 ? (and Article 21) Sanchai. ——– ANSWER Hi, It’s a nice finding. What I understand from your question is that Article 20 is applicable to the bill of lading covering a port – to – port shipment, hence, the means of transportation involved is vessel(s) only and not TRAILER – a kind of vehicle that moves on road. So, why is TRAILER included in Article 20? My comment is as follows: TRAILER is a kind of container on wheels. Like goods shipped in a container, goods shipped in a TRAILER will be carried from the port of loading to the port of discharge in the SAME TRAILER. That is to say, the TRAILER containing goods is loaded on board the vessel at the port of loading and unloaded at the port of discharge. That is why TRAILER is included in Article 20 UCP 600. Regarding transhipment, the provision in sub-article 29 (c) (iii) UCP 400 is much clearer than that in sub-article 20 (c) (ii) UCP 600. I would like to quote here for your reference: “Even if transhipment is prohibited by the terms of credit, banks will accept transport documents which state or indicate that the goods are in container(s), trailer(s), “LASH” barge(s) or the like will be carried from a place of taking in charge to a place of final destination in the SAME CONTAINER(S), TRAILER(S), “LASH” BARGE(s) or the like under one and the same transport document. Kind regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?