Allowance of On-deck Shipment Given Allowance for Presentation of CPBL

Disclaimer

The names of the parties, as well as the data and information in the cases stated below, have been sanitized in order to protect the identity of the parties involved.
Our expert's responses to queries do not necessarily reflect the views of the ICC or the ICC Commission on Banking Technique and Practice. No legal imputation should be attached to any of the contents of the cases and no legal responsibility is accepted for any errors, omissions or misleading statements or opinions caused by negligence or otherwise. Our expert's responses are given for your reference only and you should not rely upon or act on our responses, of which we are not held liable. You should consult your legal counsel or other experts for their opinions in your specific cases.
No query or response can be reproduced in whole or in part without our express written permission.

Question from S.:
Dear experts,
I work for OCBC bank singapore in documents examination section. I have question on the allowance of shipment in barges.
My question is this: 'if the LC allows for the presentation of charter party BL, does it imply the allowance of on-deck shipment or shipment in barges?'
I would be grateful if you can kindly reply me.
Thanks
S.

Response from T.O. Lee:

Dear All,
CPBL is often used in commodities trade which is very complex and this generalized question cannot warrant a reliable answer.
Enough to say that it all depends on the nature of the goods, the contract of carriage as reflected by the charter party and the sales contract, if you will. And of course the provisions of the LC itself. Sometimes we also have to refer to the customs of the port in a trade dispute.
As I said, for checking CPBL and commodities documents effectively, bankers need to establish a "commodities desk" to do this job well and they need also at least 25% salary increase to members of the commodity desk to reflect the difficulties encountered, such as reflected by this query.
FYI some banks do not wish to step into the muddy waters and use a commodities LC expert to check the CPBL and commodities trade documents. If bankers do not have the technology, unfortunately it is too late to learn but they can always shop for it.
T. O.

More responses to be continued on next episode with Title of "Allowance of On-deck Shipment - Need to See The Real Thing".

Go to next episode >>

(905) 237-6465

(905) 237-6867