ICC Banking Commission Opinions October 2023 – Deep-Dive #4
This is the fourth of five blog posts where I will deep-dive into the Opinions approved by the ICC Banking Commission on their October 2023 meeting.
This blog post will take a closer look at the first part of ICC Opinion TA934rev.
The query relates to an LC that requires "2-CMR (ORIGINAL FOR SHIPPER), ..." (partial quotation)Presented was a Road Waybill (CMR). The CMR was issued on an official form (original stationery), marked by pre-printed wording in Czech as " Exemplář pro odesílatele" (in English this means "Fold for the Shipper" or "Shipper's Fold"). The CMR also included the wording "Copy for Sender". Both of the presented copies of the CMR were signed and stamped by the carrier.
Of course, the presentation was refused. The discrepancy was as follows:
“+PRESENTED A COPY FOR SENDER I/O ORIGINAL FOR SHIPPER AS PER LC TERMS AND CONDITIONS 46A-3” (sic! Clause 3 contained requirements for packing list)
The Analysis refers to UCP 600 article 24 (b) (i) and ISBP 821 paragraphs J7 (b) and (c) which basically says that a road transport document that indicates to be the “original for consignor or shipper” is considered synonymous to one that indicates that it is the “copy for sender”.
For that reason, the conclusion is that the discrepancy is not valid.
This is therefore – again – a discrepancy that should never have been raised as this scenario is covered by the ISBP (regardless if the version at hand is publication 745 or 821)….
I am getting tired of repeating myself … and I am sure you are too. So let me just say that these wrong, spurious, incorrect, inappropriate, indecent, crazy, silly, ridiculous, and absurd refusals are doing no good to the LC instrument. They are actually doing the opposite. They effectively question the obligation of the issuing bank.
This is therefore not taking good care of the LC. It is the opposite and let’s encourage all to discourage raising such discrepancies.”
Kind regards
Kim
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