Artile-19-UCP-600-Transport Document Covering at Least Two Different Modes of Transport

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 agent.
Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for
or on behalf of the master.

A transport document covering at least two modes of transport, irrespective of the title shown on the document as multimodal, combined or similar words, are called multimodal transport documents. It must indicate the name of the carrier and need to be signed as one of the below:

1-By carrier itself or by a named agent on behalf of the carrier. 2-By master of the ship or named agent on behalf of the master.

Any signature by the carrier, master or any agent must be identified by their capacity whether carrier, master or agent is signing. When an agent signs, it must indicate whether the agent has signed on behalf of the carrier or behalf of the master, if a named agent signs on behalf of the master, then the name of the master is not necessary to indicate.

ii. indicate that the goods have been dispatched, taken in charge or shipped on board at the place stated in the credit, by: - pre-printed wording, or a stamp or notation indicating the date on which the goods have been dispatched, taken in charge or shipped on board.

The date of issuance of the transport document will be deemed to be the date of dispatch, taking in charge or shipped on board, and the date of shipment. However, if the transport document indicates, by stamp or notation, a date of dispatch, taking in charge or shipped on board, this date will be deemed to be the date of shipment.

A multimodal bill of lading must indicate the status of the goods once it is issued whether the goods have been dispatched, taken in charge or shipped on board at the place as per credit as per one of the below method:

      1-Pre-printed wording.

                 2-A stamp or notation indicating the actual date of the action                 taken for the goods by shipping company.

It is not necessary in case of multimodal transport document to have the date of the issuance until stipulated in credit, however, if date of dispatch or shipped onboard have not been indicated then the issuance date will be deemed to be the date of shipment.
iii. indicate the place of dispatch, taking in charge or shipment and the place of final destination stated in the credit, even if:
a. the transport document states, in addition, a different place of dispatch, taking in charge or shipment or
place of final destination,
or
b. the transport document contains the indication "intended" or similar qualification in relation to the vessel,
port of loading or port of discharge.

Field 44e-Port of Loading, 44f-Port of Decharge, 44a- Place of Receipt, 44b-Final Destination are the one which are used in a credit to indicate the actual place,A multimodal bill of lading must need to provides routing information, including any means of pre-carriage, place of receipt, port of loading, port of discharge or place of delivery, all of which should comply with those stated in the documentary credit, and vessel name. The place of receipt or place of delivery may or may not be the same as the ports of loading or discharge.

iv. be the sole original transport document or, if issued in more than one original, be the full set as indicated
on the transport document.

If a transport document is not direct consigned to the applicant then at least one original is require to take the delivery of the goods, a original multimodal bill of lading need to be presented if issued in one original or if it is more than one original, all need to be presented as per credit to avoid any risk of fraud or conversion.

v. contain terms and conditions of carriage or make reference to another source containing the terms and conditions of carriage (short form or blank back transport document). Contents of terms and conditions of carriage will not be examined.

A multimodal bill of lading must need to contain terms and conditions of carriage which is usually given on the back side of the bill of lading,however, it can also be verified by any other sources such as website or URL, this kind of bill of lading is called short form or blank back bill of lading. A banker need to check only the terms and conditions given or not, and should not go and check the contents of the terms and conditions.

vi. contain no indication that it is subject to a charter party.

A multimodal bill of lading must not to indicate in anyway that it is subject to a charter party bill of lading.

b. For the purpose of this article, transshipment means unloading from one means of conveyance and reloading to another means of conveyance (whether or not in different modes of transport) during the carriage from the place of dispatch, taking in charge or shipment to the place of final destination stated in the credit.

Generally transshipment means unloading and reloading of the goods from one means to other means whether in same mode or different mode of transport, however, UCP restricts the meaning of transshipment as  unloading from one vessel (or aircraft, or means of conveyance) and reloading to another vessel (or aircraft, or means of conveyance within the same mode of transport) during the carriage from the port of loading (or airport of departure, or place of shipment / dispatch/ carriage) to the port of discharge (or airport of destination, or place of destination) stated in the documentary credit.

c. i. A transport document may indicate that the goods will or may be transshipped provided that the entire carriage is covered by one and the same transport document.

A multimodal bill of lading may indicate that the goods will or may be transshipped if the entire carriage is covered by one and only shipping company, usually a multimodal transport operator does have offices or connections across the world, a cargo can be shipped early and in cheaper cost if the whole responsibility is being taken by a multimodal transport operator.

ii. A transport document indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment.

Even if credit prohibits transshipment a multimodal bill of lading may indicate that the transshipment will or may take place is acceptable, logic is an MTO operate with different branch entire globe and use the containerize shipment where the risk of loss is lesser then a normal shipment.

Points to Remember:

  • A bill of lading is contract for carriage, Receipt of Goods, Title to the Document.
  • Field 44e and 44f are used for port to port shipment, however, if any of these are being used with the combinations of 44a and 44b or only 44a and 44b will make a bill of lading to a multimodal bill of lading.
  • A multimodal bill of lading need not to be title as multimodal, combine or any similar word.
  • Terms and conditions are to be check whether given or not (apart from content), to validate the originality of the bill of lading.
  • If the last leg of the multimodal transport document is by sea, then only it may be in negotiable form.

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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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