Multimodal bill of lading, marine bill of lading, non-negotiable bill of lading and charter party bill of lading are different types of bills of lading, which have been defined by UCP 600.
Please keep in mind that UCP 600 is the latest and current version of L/C rules.
Exporters and importers as well as bank personnel should understand the details of letter of credit rules very well, otherwise they make costly mistakes.
Today I would like to explain whether a charter party bill of lading can be presented instead of a marine bill of lading under letter of credit transactions.
Letter of Credit Rules Defining Marine Bill of Lading:
UCP 600 article 20 defines how does a marine bill of lading should be issued in a letter of credit transaction.
As per UCP 600 article 20 a bill of lading, must appear to 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.
Bill of lading must indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit.
Finally bill of lading should indicate shipment from the port of loading to the port of discharge stated in the credit.
Letter of Credit Rules Defining Charter Party Bill of Lading:
UCP 600 article 22 defines how does a charter party bill of lading should be issued in a letter of credit transaction.
As per UCP 600 article 22 a charter party bill of lading, containing an indication that it is subject to a charter party, must appear to be signed by the master or a named agent for or on behalf of the master, or the owner or a named agent for or on behalf of the owner, or the charterer or a named agent for or on behalf of the charterer.
Charter party bill of lading must indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit.
Finally charter party bill of lading should indicate shipment from the port of loading to the port of discharge stated in the credit.
Conclusion:
For this reason it is not possible to present a charter party bill of lading instead of a marine bill of lading under a letter of credit transaction.
