UCP 600 Article 22: Charter Party Bill of Lading — Examination Checklist

Introduction

This checklist provides a systematic, step-by-step protocol for examining charter party bills of lading under Article 22 of UCP 600. Each item corresponds to a specific article requirement and must be verified before accepting the document as compliant. Banks and presenters can use this checklist to ensure no requirement is overlooked.

Failure Mode Analysis

Failure Mode 1: Skipping Checklist Items

Risk: The examiner skips items, assuming compliance without verification.

Impact: Missed items may result in acceptance of a discrepant document or unnecessary rejection.

Failure Mode 2: Inconsistent Application

Risk: Different examiners apply the checklist differently.

Impact: Inconsistent examination undermines the reliability of the documentary credit system.

Failure Mode 3: Overlooking Charter Party Reference Quality

Risk: The examiner confirms a charter party reference exists but does not assess its clarity.

Impact: Vague or ambiguous charter party references may not satisfy Article 22(a).

Deterministic Resolution Architecture

Resolution 1: Document Identification

Check: Is the document identified as a charter party bill of lading?

• [ ] The document is a bill of lading
• [ ] The document indicates it is subject to a charter party
• [ ] The document is not a standard bill of lading (Article 20)

Resolution 2: Charter Party Indication Verification

Check: Does the bill of lading clearly indicate it is subject to a charter party?

• [ ] The phrase "subject to charter party" or equivalent appears
• [ ] A specific charter party agreement is referenced
• [ ] The indication is clear and unambiguous

Resolution 3: Shipper Name Verification

Check: Is the shipper identified by name?

• [ ] The shipper's full legal name appears on the document
• [ ] The shipper name is consistent with the credit requirements

Resolution 4: Port of Loading Verification

Check: Does the port of loading match the credit?

• [ ] The port of loading matches the credit exactly
• [ ] No alternative names or abbreviations are used

Resolution 5: Port of Discharge Verification

Check: Does the port of discharge match the credit?

• [ ] The port of discharge matches the credit exactly
• [ ] No alternative names or additional designations are used

Resolution 6: On Board Notation Verification

Check: Is the on board notation complete and compliant?

• [ ] The notation contains "on board" or "loaded on board"
• [ ] The notation is signed or initialled by the carrier or its agent
• [ ] The notation is dated
• [ ] The notation identifies the vessel and port of loading
• [ ] The date is within the credit's shipment period

Resolution 7: Original Marking Verification

Check: Is the original marking present?

• [ ] The document bears the word "original" or states the number of originals
• [ ] If issued in more than one original, the full set is presented

Resolution 8: Date of Issue

Check: Is the date of issue present?

• [ ] The date of issue is stated on the document
• [ ] The date does not exceed the presentation date (Article 14(c))

Resolution 9: Contract of Carriage Evidence

Check: Is there evidence of the contract of carriage?

• [ ] The document contains a reference to the contract of carriage
• [ ] The reference is sufficient to identify the contract terms

Resolution 10: Transhipment Assessment

Check: Does the document indicate transhipment?

• [ ] If transhipment is indicated and the credit prohibits it, verify the goods are in containers (Article 22(e))
• [ ] If transhipment is permitted, no action needed

Resolution 11: Container Shipment Assessment

Check: If goods are shipped in containers, does the document comply with Article 22(f)?

• [ ] If container shipment, the on board notation does not need to name a specific vessel
• [ ] Container numbers and seal numbers are recorded

Resolution 12: Cross-Document Consistency

Check: Is the charter party bill of lading consistent with other documents?

• [ ] Shipper name matches the commercial invoice
• [ ] Goods description matches the credit and other documents
• [ ] Ports match across all transport documents

Conclusion

This examination checklist ensures that every requirement of Article 22 is verified before accepting a charter party bill of lading as compliant. Systematic application of this checklist reduces discrepancies and ensures consistent examination standards.

Frequently Asked Questions

1. How long should the examination of a charter party bill of lading take?

A thorough examination using this checklist should take 5-10 minutes. Complex documents with extensive charter party terms may require additional time.

2. Can the checklist be used for standard bills of lading?

No. This checklist is specific to charter party bills of lading under Article 22. A separate checklist should be used for standard bills of lading under Article 20.

3. What if one item on the checklist fails?

If any item fails, the document is discrepant. The examiner should document the discrepancy and proceed with refusal procedures under Article 16.

4. Should the checklist be documented in the examination file?

Yes. Maintaining a record of checklist completion provides evidence of due diligence.

5. Can the checklist be modified for specific credit requirements?

Yes. The checklist can be supplemented with additional items specific to the credit terms.

Source Notes

Context only. This guide is based on UCP 600 Article 22 (ICC Publication No. 600), ISBP 745 (ICC Publication No. 745), and eUCP Version 2.1. Source references in the search results pointed to general ICC Academy and UCP 600 e-book pages, which provided contextual framing but not article-specific text.