Bill of Lading Discrepancy: Missing Original or Copy

Introduction

When a documentary credit requires presentation of a full set of original bills of lading, the presenting party must deliver the complete set to the nominated or issuing bank. A missing original bill of lading, or the failure to include a required copy, is a discrepant presentation that results in refusal. This discrepancy arises from carrier issuance practices, document handling errors, or misinterpretation of the credit's documentary requirements. This guide covers the regulatory framework, the specific failure modes, and the resolution steps available to the presenting bank and beneficiary.

Failure Mode Analysis

Failure Mode 1: Only One Original Presented When Full Set Required

The most common form of this discrepancy occurs when the shipper or presenting bank submits only one original bill of lading, assuming that one original is sufficient for documentary credit compliance. Under UCP 600 Article 20(a), if the credit requires a full set, all originals must be presented.

Failure Mode 2: Copies Presented as Original Documents

When the presenting party submits photocopies of the bill of lading in place of genuine originals, the presentation fails the examination test. ISBP 745 requires that documents presented as originals must bear the word "original" and have the characteristics of an original (signatures, carrier stamps, etc.).

Failure Mode 3: Missing Required Copy Alongside Original

Some documentary credits require both originals and copies of the bill of lading (e.g., for customs, banking, or internal records). If the original is presented but the required copy is missing, the presentation is discrepant under the credit's specific documentary requirements.

Failure Mode 4: Partial Set Lost in Transit

A bill of lading original may be lost during transit from the beneficiary to the presenting bank, or between banks. The resulting presentation, lacking one or more originals, fails to constitute a full set and is therefore discrepant.

Deterministic Resolution Architecture

Step 1: Review the Credit's Document Requirements

Carefully re-read the documentary credit to determine the exact requirement: full set of originals, one original and copies, or specified number of originals. This determines whether the presentation is actually discrepant.

Step 2: Contact the Carrier for Duplicate Issuance

If an original is lost, contact the carrier to request issuance of a duplicate bill of lading. The carrier will typically require a bond or letter of indemnity from the shipper before issuing a duplicate, and may require publication of a lost document notice.

Step 3: Obtain a Lost Document Indemnity

Prepare and submit a letter of indemnity (LOI) to the carrier, indemnifying the carrier against any claims arising from issuance of a duplicate. The LOI should reference the documentary credit number, the bill of lading number, and the vessel details.

Step 4: Publish a Lost Document Notice

Many carriers require a public notice (typically in a newspaper of general circulation at the port of discharge) stating that the original bill of lading has been lost and that any claims under the original document should be presented to the carrier. Publication costs are borne by the shipper.

Step 5: Present the Duplicate with Supporting Documentation

Once the carrier issues the duplicate bill of lading, present it along with the carrier's confirmation that the duplicate was issued to replace the lost original. Include a covering letter explaining the circumstances.

Step 6: Request Applicant Waiver

If the carrier cannot issue a duplicate within the presentation period, request the applicant to waive the discrepancy under UCP 600 Article 16(b). Submit the discrepancy notice with supporting documentation from the carrier.

Step 7: Negotiate with the Nominated Bank

The nominated bank may, at its discretion, forward the discrepant presentation to the issuing bank under UCP 600 Article 16(a) without noting the discrepancy. The nominated bank and issuing bank may negotiate on the discrepancy classification.

Conclusion

Missing original or copy bills of lading are a common but resolvable discrepancy. The resolution depends on the carrier's willingness to issue duplicates and the applicant's willingness to waive. Exporters should confirm the credit's documentary requirements before preparing the presentation set and maintain secure custody of all originals.

FAQ

Q1: Does UCP 600 require presentation of all three originals when a bill of lading is issued in a set of three?
Yes. Under UCP 600 Article 20(a), if the credit requires a full set, all originals must be presented. The bill of lading may state that any one original is sufficient for delivery, but the documentary credit requirement is separate.

Q2: Can a carrier refuse to issue a duplicate bill of lading?
Yes. Carriers are not obligated to issue duplicates and may require a bond, letter of indemnity, and public notice before doing so. The shipper bears the cost and risk of this process.

Q3: What is the impact of a missing copy on documentary credit compliance?
If the credit requires a copy, the absence of the copy constitutes a discrepancy. The presenting party must present all documents specified in the credit.

Q4: Can the issuing bank waive the missing original discrepancy?
Yes, but only with the applicant's concurrence under UCP 600 Article 16(b). The issuing bank cannot unilaterally waive this discrepancy.

Q5: How long does the duplicate issuance process typically take?
The process can take 2–6 weeks, depending on the carrier's policies, the publication of the lost document notice, and the preparation of the letter of indemnity. This timeline often exceeds the presentation period, making applicant waiver the more practical resolution.

Source Notes

Context only: The following sources were identified in the search dossier and provide background context on documentary credit practices and ICC publications. They do not constitute direct citations for this article's analysis.

1. ICC Academy — "11 Questions that will help you master documentary credits" (August 2024). General reference on documentary credit fundamentals. Source context: ICC Academy publication listing.
2. ICC Academy — "A guide to types of documentary credit" (October 2024). Reference on documentary credit structures and document requirements. Source context: ICC Academy publication listing.