Letter of Credit Forum

almost everbody leading on bill payments.

can u pl explain `Credit requiring presentaion of bill of lading and
containing prohibition against transshipment will have to exclude ucp
600 sub art 20 c to make prohibition against transshipment effectiv

regards,

phe9oxis,

http://www.guidebuddha.com

Specifically it would have to exclude sub-art 20 (c) (ii), which covers the scenario under an LC which prohibits transhipment. Sub-art 20 (c) (i) in fact, covers the scenario under an LC which allows transhipment.

For containerised shipment, transhipment is likely to occur in most cases, and the idea behind the UCP allowing transhipment for containerised cargo, is to recognise the fact that since the containers are to remain unopened and intact, transhipment is unlikely to affect the integrity of the cargo, as the goods would not suffer damage or loss as a result of the transhipment process.

So, if an applicant wishes to restrict transhipment comprehensively under all circumstances, sub-art 20 (c) (ii) would have to be expressly excluded.