Clarificatory, but not comprehensive enough

When an exporter presents a bill of lading (BL) showing the place of receipt (POR) of goods at an Inland Container Depot (ICD), say ICD, Tuglakhabad, and pre-carriage to a port of loading (POL), say Mumbai, by rail or receipt of goods at say, ICD, Bangalore and pre-carriage by road to POL Chennai, what does a ‘shipped on board’ notation mean? Does it mean the goods have gone on an ocean-going vessel or does it merely mean the goods are on board the ‘rail’ or ‘road’ carrier?
The International Chamber of Commerce (ICC) has now clarified the requirements, interpretations and application of the ICC Uniform Customs and Practices for Documentary Credits (UCP) in relation to ‘on board’ notations in various situations. The ICC’s recommendations can be summarised as follows:

# Where the BL indicates a POR, say Kolkata, that is the same as the POL Kolkata, but if there is no indication of a means of pre-carriage then:

(i) If the BL is pre-printed ‘shipped on board’, no further ‘on board’ notation is required;

(ii) If the BL is pre-printed ‘received for shipment’, a dated ‘on board’ notation is required.

# Where the BL indicates a POR, say Nagpur, that is different from the POL, say Nhava Sheva, but if there is no indication of a means of pre-carriage, then:

(i) If the BL is pre-printed ‘shipped on board’, no further ‘on board’ notation is required;

(ii) If the BL is pre-printed ‘received for shipment’, a dated ‘on board’ notation is required.

# Where the BL indicates a POR, say Jaipur, that is different from the POL, say Mumbai, and there is an indication of a means of pre-carriage, then:

(i) If the BL is pre-printed ‘shipped on board’, a dated ‘on board’ notation is required, indicating the name of the vessel and the port of loading.

(ii) If the BL is pre-printed ‘received for shipment’, a dated ‘on board notation’ is required, indicating the name of the vessel and the port of loading.

The exception to the above rule is when the BL is explicit regarding the place to which the ‘on board’ notation will apply or when the ‘place of receipt box’ has been completed on the BL. In such cases, any notation on the BL of ‘on board’, ‘loaded on board’ or words to like effect shall be deemed to be on board the means of transportation performing the carriage from the POR to the POL.

Also, the position in respect of multi-modal transport documents and combined BL may be different, depending on the wordings in the Letters of Credit.

The ICC recommendations do not fully clear the confusions. The ICC has tried its best to explain the correct position through flowcharts, etc. However, the way it is worded, even seasoned practitioners will have great difficulty in understanding the nuances involved. A suitable amendment to the UCP could have helped but that may not happen soon. The ICC says the recommendations may find a place in its forthcoming version of the International Standard Banking Practices (ISBP) for Examination of Documents under Documentary Credits.

Exporters have no option but to study the ICC recommendations diligently and educate the customs house agents, freight forwarders and shipping company agents regarding the precise requirements for presentation of documents under letters of credit.

Email : tncr@sify.com