The on-board notation rule

Manny readers have sent queries on last week’s column regarding ‘on board’ notations in bills of lading (BL). I give the clarifications.

Article 20 (ii) of the Uniform Customs and Practices for Documentary Credits, ICC Publication no 600 (known as UCP 600) says a BL must indicate the goods have been shipped on board a named vessel at the port of loading (POL) stated in the credit by pre-printed wording, or an on-board notation indicating the date on which the goods have been shipped on board. If the BL contains the indication ‘intended vessel’ or similar qualification in relation to the name of the vessel, an on-board notation indicating the date of shipment and the name of the actual vessel is required.

Article 20 (iii) of UCP 600 says a BL must indicate shipment from the POL to the port of discharge stated in the credit. If the BL does not indicate the POL stated in the credit as the POL, or if it contains the indication "intended" or similar qualification in relation to the POL, an on-board notation indicating the POL as stated in the credit, the date of shipment and the name of the vessel is required. This provision applies even when loading on board or shipment on a named vessel is indicated by pre-printed wording on the BL. Articles 21 and 22 of UCP 600 dealing with non-negotiable seaway bills and charter party BL contain similar wordings.

UCP 600 conveys that the BL is a port-to-port document but there will be occasions when the shipping company or its agent will include reference to a place of receipt or taking in charge that is different from the POL. In such cases, the document checker must be able to determine that the BL appears to indicate the shipped on board statement (pre-printed wording or by a separate notation) relates to loading on board the named vessel at the port of loading stated in the credit and not to any pre-carriage of the goods between a place of receipt or taking in charge and the POL. Unless it is evident from the BL that the shipped on board statement applies to the vessel and the port of loading, the BL will require an on-board notation showing the POL and the name of the vessel, even if the goods are loaded on the vessel named in the BL.

Article 19 of UCP 600 dealing with multimodal transport documents does not require an on-board notation as a default position. However, a dated on board notation is clearly required when the credit so requests and when the first leg of the journey is by sea. If the place of receipt is different from the place stated in the credit, and the latter is a port, the dated on board notation will require the addition of the name of the vessel and the POL, unless the transport document is evidence that the on-board notation or pre-printed shipped on board wording applies to the named vessel and port of loading. The credit should, therefore, expressly require an on-board notation, or make clear whether the goods are to be taken in charge by the carrier from a sea port.

Email: tncr@sify.com