Letter of Credit Forum

Hello Dalbir

My understanding is that, unless the credit calls for the bill of lading to describe the goods in a specific manner, then the description on the bill of lading need NOT be identical to the description in the credit, but it must not conflict with it, so it must not state something that disagrees with the credit, something different.

For example; the credit calls for “25 boxes of product number 123, garden tables and chairs.”

The bill of lading could state “25 boxes of garden furniture” or perhaps “25 boxes tables and chairs.”

The description in both cases need not be identical: E22 of the ISBP745E states ”A goods description indicated on a bill of lading may be in general terms not in conflict with the goods description on the credit”.

So I think that  the bill would be in conflict if it stated “25 boxes product code 456 garden tables and chairs” or “25 boxes garden chairs” that type of inconsistency. Of course if the credit called for a bill of lading specifically stating “25 boxes of product number 123, garden tables and chairs.” then all of the examples are discrepancies.

I wish you well with this

Cheers
“...in the kingdom of the blind; what you see is what you get...”

Hello Pan and All,

Good day, wish your families and teams are fine and blessed today,

Under Blacksea Dlc:

According to  LC under 45A (DESCRIPTION OF GOODS:)

xxx METRIC TONS +/- 10 PCT OF xxx  OIL AS PER CONTRACT NR.xxx, FOB ONE SAFE PORT/ ONE SAFE BERTH xxx  TERMINAL xx IN ONE CARGO LOT DURING THE 10-15 October  2015 

Im wondering....how can be : ....During 10-15 of October...refers or be or get  interpreted as shipment date? over the above goods description? for been considerated on a later stage as a discrepancy as blacksea issue?

The above text on the goods description do  only mentions "during 10th-15th"..so during 10-15 what? goods loaded at seller factory during 10-15, goods delivered at POL terminal during 10-15th....how did 10-15  did become in  to a shipment date from applicant bank view? for raise the discrepancy?

The Fact that incomterm or delivery term gets mentioned on goods description does not means that 10-15 means a shipment date or im incorrect?

If we defrag the above goods descriptions:

xxx METRIC TONS = Volume or quanitity of goods.

 +/- 10 = Tolerance over the goods quantity.

xxx  OIL= Goods of sale/trade.

PER CONTRACT NR.xxx= Reference Contract number between beneficiary/seller and Applicant/Buyer.

FOB ONE SAFE PORT/ ONE SAFE BERTH xxx  = Terms of Delivery/Incoterm, the terms "One Safe Port"/'One Safe Berth it refers  to the phisical port weather if safe or tug for the charterer vesssel for arrive or leave, its a old term, and actually the risk its of the ship owner: 

The shipowner takes the risk of accident; so does the charterer, because in this case the charterer has to wait for his cargo. There is a risk on both sides, and the risks in some ways depend very much on the nature of the vessel",
Per Lord Blackburn in Dahl v Nelson, Donkin, and Others, (1881) 6 App. Cas. 38, at p.49
Almust all  ports are safe, when a carrier or vessel charterer cant reach or leave a nominated port ,they just dont provide the service. Safe port its called when vessels can reach alone and leave the port, non safe when additional special assistance its required for the vessel to come and leave the port, this terms mainly came up  mainlly due rapid development of the propulsions systemss that estimulated the growth of the size of the ships and bigger vessels require large sea rooms for anchoring and safe manoeuvring whithin the ports, tug assistance in narrow channels and master pilots and captains to hanldle them inside the harbours.

But those terms does not refers to a Shipment date................its just mentioned the port and terms of the port.

TERMINAL xx= can be the Container terminal or port terminal of loading.

IN ONE CARGO LOT DURING THE 10-15 October  2015= Here its were the drama beguns, how can be the wordering " during 10-15 of october 2015" be interpreted as a shipment date? During 10-15 can means anything its else? but its not refering to a shipment date..????

The Case were diferent if:

xxx METRIC TONS +/- 10 PCT OF xxx  OIL AS PER CONTRACT NR.xxx, FOB ONE SAFE PORT/ ONE SAFE BERTH xxx  TERMINAL xx"SHIPPPED ON BOARD" IN ONE CARGO LOT DURING THE 10-15 October  2015.

xxx METRIC TONS +/- 10 PCT OF xxx  OIL AS PER CONTRACT NR.xxx, FOB ONE SAFE PORT/ ONE SAFE BERTH xxx  TERMINAL xx"CLEAN ON BOARD" IN ONE CARGO LOT DURING THE 10-15 October  2015.

Over the above examples, its refered clearly that goods must " Be shipped on board" during 10-15th october 2015.= SHIPMENT DATE.

If fact:

xxx METRIC TONS +/- 10 PCT OF xxx  OIL AS PER CONTRACT NR.xxx, FOB ONE SAFE PORT/ ONE SAFE BERTH xxx  TERMINAL xx IN ONE CARGO LOT DURING THE 10-15 October  2015 

The above can be interpreted that goods must be at the nominated "TERMINAL" during 10-15th of october...a TERMINAL its NOT a Vessel Board....so its not have nothing to does with the shipment date? Black sea can ask the liner to mention on the OBL when the containers reached the Nominated Terminal that surerly will be 3-5 days before Vessel ETD from the POL.

All points of view will be fully appreciated,

Thanks , may God bless all, thanks

Kind Regards,

The Forest Star.