ISBP 745 Article D D1: Evidence of Shipment from the Port Stated in the Credit

Introduction

The transport document must evidence shipment from the port stated in the letter of credit. ISBP 745 Paragraph D1 establishes this requirement to ensure the goods were actually loaded at the location the credit specifies. When the transport document shows a different port of loading than the credit, the bank finds a discrepancy that delays payment. This guide explains how D1 works, why port-of-loading discrepancies occur, and how to prepare transport documents with the correct port information.

Failure Modes

1. Bill of lading shows different port. The credit specifies "Shanghai" but the bill of lading shows "Ningbo." The goods were loaded at a different port than the credit specifies.

2. Transhipment port shown as loading port. The bill of lading shows "Singapore" as the port of loading, but Singapore is the transhipment port. The original loading port (e.g., "Shanghai") is not shown.

3. Port name abbreviation. The credit specifies "Port Klang" but the bill of lading shows "PKL" or "Kelang." The abbreviation or variant name may not be recognized.

4. No port of loading shown. The bill of lading does not specify a port of loading. Under UCP 600, this is a discrepancy because the credit requires a specific port.

5. Port of loading after shipment date. The bill of lading shows a port of loading that is inconsistent with the shipment date, suggesting the goods were loaded at a different time or place.

Resolution Steps

1. Identify the port of loading from the credit. Determine the exact port name as stated in the credit. This is the port that must appear on the transport document.

2. Confirm the carrier uses the correct port. Provide the shipping line or carrier with a copy of the credit's port requirements. Confirm the bill of lading will show the correct port of loading.

3. Check the bill of lading before shipment. Review the bill of lading draft before the goods are loaded. Confirm the port of loading matches the credit.

4. Handle transhipment correctly. If the goods are transhipped, the bill of lading should show the original port of loading, not the transhipment port. The transhipment port may be noted separately if the credit allows it.

5. Use the exact port name. Write the port name exactly as it appears in the credit. Do not abbreviate or substitute a variant name.

6. Verify the port of discharge matches the credit. While D1 focuses on the port of loading, the port of discharge must also match the credit. Check both.

7. Coordinate with the freight forwarder. If a freight forwarder is involved, confirm they understand the credit's port requirements and will issue a transport document that complies.

8. Request a corrected bill of lading if needed. If the bill of lading shows the wrong port, contact the carrier immediately to request a corrected document before the goods depart.

Conclusion

ISBP 745 D1 requires the transport document to evidence shipment from the port stated in the credit. This is a fundamental requirement: the goods must be loaded at the correct port, and the transport document must reflect that. A pre-submission review—checking the bill of lading against the credit—eliminates this discrepancy.

FAQ

Q1: Can the bill of lading show a different port if the goods were actually shipped from that port?
No. The credit specifies a port, and the transport document must match that port. If the actual port differs, the credit must be amended before shipment.

Q2: What if the credit allows partial shipment from multiple ports?
If the credit allows partial shipment, each transport document must show the port of loading for that particular shipment. The ports must be among those stated in the credit.

Q3: Does this rule apply to air waybills?
Yes. For air shipments, the air waybill must indicate the airport of departure as stated in the credit. The same no-conflict rule applies.

Q4: What if the bill of lading shows a feeder port instead of the main port?
If the credit specifies "Shanghai" and the goods are loaded at a feeder port (e.g., "Ningbo") before being transhipped at Shanghai, the bill of lading may show the feeder port only if the credit permits it. Otherwise, this is a discrepancy.

Q5: Can the bank waive a port-of-loading discrepancy?
Yes, under UCP 600 Article 16(b), the applicant may waive any discrepancy, including a port-of-loading mismatch. The bank is not obligated to seek a waiver.

Source Notes

Source 1: "The cost of a comma: Documentation errors are the 'hidden tax' on Bangladesh's exports" — The Daily Star (2022). Context only: analysis of documentation errors, including port name inconsistencies, in export documentation.

Source 2: "Understanding Ocean Bills of Lading: Key Details and How They Work" — Investopedia (2023). Context only: overview of bill of lading requirements, including port of loading specifications.

Source 3: "UCP 600 – ultimate 2026 guide" — Trade Finance Global (2026). Context only: reference on UCP 600 transport document requirements, including port of loading and discharge.