Article-23-UCP-600-Air Transport Document

An air waybill (AWB) is a binding transport document issued by a carrier (Airline) or agent that provides details about the goods being shipped. It provides detailed information on the contents of the shipment, the sender and recipient, terms and conditions, and other information. It helps to ship the cargo overnight or in a quick time.

Article-23-UCP-600-Air Transport Document

a. An air 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.
Any signature by the carrier or agent must be identified as that of the carrier or agent.
Any signature by an agent must indicate that the agent has signed for or on behalf of the carrier.

Explanations: An AWB may or may not be titled (however named), must need to indicate the name of the carrier and can be signed such as one of the below:

1.    Signed by the carrier (Airline) itself.
2.    By a named agent on behalf of the carrier (Airline)
Any signature either by carrier (Airline) or agent must be identified as that of the carrier (Airline) or agent. Point to note here is in all the above cases carrier name must be identified anywhere on the AWB. An International Air Transport Association (IATA) code for an airline without the name of the carrier would not be acceptable.

ii. Indicate that the goods have been accepted for carriage.

Explanations: An AWB must show that the goods have been accepted for carriage. 

iii. Indicate the date of issuance. This date will be deemed to be the date of shipment unless the air transport document contains a specific notation of the actual date of shipment, in which case the date stated in the notation will be deemed to be the date of shipment. Any other information appearing on the air transport document relative to the flight number and date will not be considered in determining the date of shipment.

Explanations: An AWB  need to show the date of issuance, however, in case it contains a specific notation of the actual date of shipment, that date will be considered as date of shipment wherein if notation is not there issuance date will deemed to be the date of shipment.

Sometimes an AWB includes a box headed with the phrase ‘for carrier use only’, ‘required flight date’, ‘routing and destination’ or similar. The flight number and date contained in any such box is not considered a specific notation of the actual date of dispatch. This position applies to any other flight information that may appear on the air transport document that is outside a notation or flight stamp.

iv. indicate the airport of departure and the airport of destination stated in the credit.

Explanations: An AWB must need to show the airport of departure and airport of destinations stated in the credit.

v. be the original for consignor or shipper, even if the credit stipulates a full set of originals.

Explnations: When in possession of an air transport document that is marked for shipper or consignor, the shipper or consignor has the right to request a change in the name and address of the consignee up to the point of actual delivery of goods to the consignee, that is why requirement is an original for consignor or shipper has been made necessary as per this sub-article. Full set means all that have been issued in original.

vi. contain terms and conditions of carriage or make reference to another source containing the terms and

Explanations: Terms and conditions of carriage – either the full terms will be indicated on the reverse of this page or they will be referenced by an address, web address, location where they may be viewed conditions of carriage. Contents of terms and conditions of carriage will not be examined.

b. For the purpose of this article, transhipment means unloading from one aircraft and reloading to another aircraft during the carriage from the airport of departure to the airport of destination stated in the credit.

Explanations: Transshipment’ means unloading from one aircraft and reloading to another aircraft within the same mode of transport during the carriage from the airport of departure to the airport of destination stated in the documentary credit. UCP restricts the transshipment meaning from aircraft to aircraft or vessel to vessel. 

c.i. An air transport document may indicate that the goods will or may be transhipped, provided that the
entire carriage is covered by one and the same air transport document.
ii. An air transport document indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment. 

Explanations: Even if credit prohibits transshipment an AWB may indicate that the transshipment will or may take place is acceptable, logic is an MTO operates with different branch across the globe and if one and only carrier (Airline) is used then the risk of loss is lesser then a normal shipment. An AWB may indicate that transshipment will or may take place, even if the credit prohibits transshipment.

 Points to Remember:

1.    An air transport document is not a document of title and is not a negotiable document. An original is not required to take the delivery of the goods.

2.    A Delivery Order need to be issued if AWB is directly consigned to the bank. The carrier will deliver goods to the consignee, as shown on the air transport document, against proper identification, or against a delivery order or release note from the named consignee.
3.    Original for consignor or shipper copy is required to avoid the risk of fraud.
4.    Control over goods rests with the shipper as consignor and the carrier up to the point of delivery. To allow control over the goods, a credit should requires that the presented air transport document be the original for consignor or shipper.

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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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