Article-31-UCP-600-Partial Drawings or Shipments

Partial shipment is the delivery of an order in more than one shipment. It means, when a buyer orders goods, all the goods are not shipped at once, rather they are sent to the buyer in parts.

From UCP perspective when two different vessels/Aeroplane/Truck are being used for part shipments, even if leaves on same days, will be regarded as partial shipment.

Field “43P” Partial Shipments is a field in MT 700 swift message type that is used to specify whether or not partial shipments are allowed under the documentary credit. This is an optional field. 

Article-31-UCP-600-Partial Drawings or Shipments

a. Partial drawings or shipments are allowed.

Partial drawings or shipments are allowed unless the documentary credit specifically prohibits.

b. A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch. If the presentation consists of more than one set of transport documents, the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment. A presentation consisting of one or more sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will be regarded as covering a partial shipment, even if the means of conveyance leave on the same day for the same destination.

Presentation of more than one set of transport documents evidencing shipment on the same means of conveyance (eg same vessel name) and for the same journey (eg same ports of loading and discharge) will not be considered a partial shipment, even if transport documents indicate a different date of shipment. The latest date of shipment, as evidenced by the different sets of transport documents, will be considered to be the date of shipment. Different ports of loading are allowed on the transport documents provided that the conveyance, journey and destination are the same.

Example: Credit states POL as Chennai Port India, POD as Ningbo China, and Partial Shipment not Allowed.

2 set of bills of lading presented as below for POD Ningbo China:

1st one shown POL as Chennai Port India, On Board Date: 10th Jan 20XX on vessel “Ocean”.

2nd set shown POL as Mundra Port India On Board Date: 12th Jan 20XX, on the same vessel “Ocean”

Above presentation will not be considered as partial shipment as there may be a case that beneficiary having a warehouse in Chennai as well as in Mundra, India, loading of the goods are being completed at Mundra Port, India so the date 12th Jan 20XX will be considered for the shipment date ie the latest date, points to note here that the conveyance, journey and destination must remain same.

Let’s understand the second para of sub-article 31(b), considering the same above example if in case there are two vessels used ei vessel “Ocean” and Vessel “Sea”.

Even if both the vessels leave Chennai port containing half-half of the Cargo, will be regarded as a partial shipment. The logic behind that is; there is no guarantee that both the vessel will reach the destination (Ningbo, China) on same day due to various reasons.

c. A presentation consisting of more than one courier receipt, post receipt or certificate of posting will not be regarded as a partial shipment if the courier receipts, post receipts or certificates of posting appear to have been stamped or signed by the same courier or postal service at the same place and date and for the same destination.

What is courier receipt: A document provided by the courier company to consignor for proof that the goods or a letter handed over to Courier Company.

What is post receipt or certificate of posting: Certificate of Posting provides evidence that you sent an item. This official record shows the date of your mail was accepted.

If a presentation consists more than one courier receipt, post receipt or posting certificate, will not be regarded as a partial shipment if courier receipts, post receipt indicate the same place and date for the same destination by same courier or postal service.

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Chandan Kumar Yadav
My name is Chandan Kumar Yadav CDCS, CSDG, CITF, PGDIBO,AML-KYC, CCFE, MLIBF, CSF, 6SIGMA a trade finance professional with an experience of 11 years whereas worked with several stages of letter of credit, bank guarantee and on other payments methods of trade transactions such as documentary collection, open accounts, SBLC etc., I have a fair understanding of Trade Based Money Laundering as well, Blogging related to Trade Finance is my passion and I want to share which I know and learn from others, I have worked with Wells Fargo, Yes Bank Limited and Bank of America, India which helped me to gain knowledge, view of Trade Finance and importance of International Trade in world's economy. Trade Finance is thumping product, everyday we are learning something new so in order to keep learning I started this as one of the platform. . Let's Learn Together

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