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A transport document means any executed document for transportation service, such as a bill of lading, a tariff, a tender, a contract, a Government Transportation Request (GTR) any transportation bills, or other equivalent documents, including electronic documents. UCP-600 article 19-25 are about transport documents, generally a multimodal transport document" means  a document evidencing at least two or more mode of transports are being used.                 Artile-19-UCP-600-Transport Document Covering at Least Two Different Modes of Transport a. A transport document covering at least two different modes of transport (multimodal or combined transport document), however named, must appear to: i. indicate the name of the carrier and be signed by: - the carrier or a named agent for or on behalf of the carrier, or - the master or a named agent for or on behalf of the master. Any signature by the carrier, master or agent must be identified as that of the carrier, master or ag

When a beneficiary of a credit provides a written letter (swift or any other authenticated mode) to make the full or part payment to a third person who may be the manufacturer or supplier of the raw material; is called assignment of proceeds. Article-39-UCP-600-Assignment of proceeds The fact that a credit is not stated to be transferable shall not affect the right of the beneficiary to assign any proceeds to which it may be or may become entitled under the credit, in accordance with the provisions of applicable law. This article relates only to the assignment of proceeds and not to the assignment of the right to perform under the credit. As mentioned above a credit need not to be transferable that the right of the beneficiary to assign any proceeds. It does not grant a right to the assignee (a third person whom beneficiary assigns) to perform under the credit or to present documents. It allows a beneficiary to assign its right to receive some, or all, of the proceeds to a third

A transferable letter of credit is a type of credit, which additionally allows the beneficiary to transfer some or all of the credit to another party, called second beneficiary. The party whose favor a transferable letter of credit is issued called first beneficiary or primary beneficiary. Requirement of a transferable letter of credit occurs when the actual manufacturer of the goods is someone else other than the beneficiary of the credit and beneficiary acts as an agent or mediator between manufacturer/supplier and applicant by earning some commission. This article provide basic rules regarding a transferable credit.   Article-38-UCP-600-Transferable Credits   A. A bank is under no obligation to transfer a credit except to the extent and in the manner expressly consented to by that bank. No bank (not even issuing bank or a confirming bank) is under any obligation to transfer the credit until a bank provides a written consent to transfer the credit. B. For the purpose of this

This article provide general indemnification for the choice of another bank, failure of instructions to be carried out by that bank, collection of unpaid fees and charges, and obligations and responsibilities imposed by foreign laws and usages.   Article-37-UCP-600-Disclaimer for Acts of an Instructed Party A. A bank utilizing the services of another bank for the purpose of giving effect to the instructions of the applicant does so for the account and at the risk of the applicant. When a bank transmits instructions to another bank it is at the risk of the applicant. B. An issuing bank or advising bank assumes no liability or responsibility should the instructions it transmits to another bank not be carried out, even if it has taken the initiative in the choice of that other bank. This sub-article explains that any action or omission of other banks (advising bank/confirming bank/next advising bank) even it is chosen by issu

Force majeure is a French term that literally means “greater force.” It is related to the concept of an act of God, an event for which no party can be held accountable, such as a hurricane or a tornado. Article-36-Force Majeure -A bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control. It may be a case that a bank is unable to fulfil its obligations to examine documents in a timely manner or to honour, negotiation or send refusal due to events outside their control. In this respect, this article indicates that a bank assumes no liability or responsibility for such circumstances that include natural events like typhoons, earthquakes, lock out or flood etc. In this case if the beneficiary is unable to make a presentation to the nominated bank or issuing bank by the expiry dat

This article contains three disclaimer, these disclaimers help to safeguard the bank if a bank acted in a good faith and as per credit requirement. Disclaimer-1- A bank assumes no liability or responsibility for the consequences arising out of delay, loss in transit, mutilation or other errors arising in the transmission of any messages or delivery of letters or documents, when such messages, letters or documents are transmitted or sent according to the requirements stated in the credit, or when the bank may have taken the initiative in the choice of the delivery service in the absence of such instructions in the credit. A bank is not held responsible for consequences arising out of any delay, loss in transit, mutilation or other errors in the transmission of any messages, letters, documents etc., if those are sent or transmitted according to the credit requirement or if in case credit does not state; a bank may chose its best possible way to transmit or send the documents. Even ‘error

A bank assumes no liability or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document, or for the general or particular conditions stipulated in a document or  superimposed thereon; nor does it assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods, services or other performance represented by any document, or for the good faith or acts or omissions, solvency, performance or standing of the consignor, the carrier, the forwarder, the consignee or the insurer of the goods or any other person. Banks are required to examine a presentation on the basis of the documents alone, to determine whether or not the documents appear, on their face, to constitute a complying presentation, that banks have no liability or responsibility for matters such as the form, sufficiency, accuracy and genuineness of any presented document. This article safeguard th

A bank has no obligation to accept a presentation outside of its banking hours.   This article states that banks are not obliged to accept documents outside of their banking hours. It is bank discretion whether to accept the document after the banking hours or not, If a bank accepts a presentation outside its banking hours, then it is understood that the presentation is deemed to be received on the next banking day and 5 banking days for examining the document will be started from following the day when presentation officially deemed to be received. A bank may have various banking hours based on particular centre for the presentation of documents and, accordingly, the presentation schedules must be examined for any evidence of compliance with such limitation. Same time a bank may send a refusal notice on the fifth banking day until 11:59 PM, in case of query from presenter regarding preclusion, a bank may states that the working hours were till 12 PM at night for that particular pr