Certificate issue of the Shipping Line according UCP 600 Article 14 (d)

Discrepancy between theory and practice at the certificate issue according "Uniform Customs and Practice for Documentary Credits" UCP 600 Rules, Revision from July 2007.


The main focus is on issuing of certificates by the Shipping Line, for example certificate from the Shipping Line for the built of vessel, vessel route, vessel owner, vessel flag, vessel name, previous vessel name,... . According to UCP 600 Article 14 (d), these certificates do not have to reflect the exact wording, when read in context with the Letter of Credit (L/C), need not be identical to.


For example certificate issue according Bank Letter of Credit (L/C) UCP 600 should be:
“WE ARE STATING, THAT THE VESSEL IS CLASSIFIED AS PER THE INSTITUTE CLASSIFICATION CLAUSE AND THE AGE OF THE VESSEL IS NOT OVER 15 YEARS."


For example certificate issue from the Shipping Line according UCP 600 Article 14 (d):
“WE ARE CERTIFY, THAT THE VESSEL IS CLASSIFIED AS PER THE INSTITUTE CLASSIFICATION CLAUSE AND THE VESSEL IS NOT OVER 15 YEARS OF AGE.”

 

UCP 600 Article 14 Standard for Examination of Documents:

UCP 600 Article 14 (d): Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.

 

Source International Chamber of Commerce (ICC) UCP 600 Article 14 (d) as pdf document - page 43 and page 44

 

Conclusion - all Shipping Lines, such as the largest Container Shipping Line in the world, which only more certificates issue according UCP 600 Article 14 (d), can not longer be used for Letter of Credit (L/C) business, or the banks and customers also work according to UCP 600 Article 14 (d) rules.

 

 

Created and published on 2017-01-21. All information is subject to change.