UCP 600 Article 22: Examining Bill of Lading Documents

Introduction

The examination of charter party bills of lading under Article 22 of UCP 600 requires additional scrutiny compared to standard bills of lading under Article 20. This guide walks through the step-by-step examination process for charter party bills of lading, identifying where errors commonly arise and how to verify compliance with every mandatory element.

Failure Mode Analysis

Failure Mode 1: Missing Charter Party Indication

Risk: The bill of lading is subject to a charter party but does not contain a clear indication.

Impact: Article 22(a) requires the bill of lading to indicate it is subject to a charter party. Without this indication, the bank cannot determine whether Article 22 applies.

Failure Mode 2: Submitting a Standard Bill of Lading

Risk: The credit requires a charter party bill of lading, but the presenter submits a standard bill of lading without a charter party indication.

Impact: The document type is wrong. A standard bill of lading does not satisfy a charter party bill of lading requirement.

Failure Mode 3: Port of Loading Mismatch

Risk: The charter party bill of lading uses port names different from those stipulated in the credit.

Impact: Article 22(b)(iii) requires the port of loading as stipulated in the credit. Charter party port names do not override credit requirements.

Failure Mode 4: Missing On Board Notation

Risk: The charter party bill of lading does not contain an on board notation.

Impact: Article 22(c) requires the on board notation. The charter party terms do not substitute for this requirement.

Failure Mode 5: Incomplete Original Set

Risk: The bill of lading states "issued in three originals" but only two are presented.

Impact: Article 22(a) requires the full set when issued in more than one original.

Deterministic Resolution Architecture

Resolution 1: Document Type Verification

Before submission:
1. Verify the credit requires a charter party bill of lading
2. Confirm the bill of lading indicates it is subject to a charter party
3. Do not submit a standard bill of lading

Resolution 2: Charter Party Indication Confirmation

Verify the bill of lading contains a clear indication:
- "Subject to charter party"
- "Freight payable per charter party"
- Reference to a specific charter party

Resolution 3: Content Verification

Verify all Article 22(b) elements:
1. Shipper name
2. On board notation
3. Port of loading
4. Port of discharge
5. Original marking
6. Date of issue
7. Contract of carriage evidence

Resolution 4: Port Matching

Match the ports against the credit:
- Use exact port names as stipulated
- Do not rely on charter party port names if they differ
- Confirm both port of loading and port of discharge

Resolution 5: On Board Notation Verification

Confirm the on board notation:
- Contains "on board" or "loaded on board"
- Is signed or initialled
- Is dated
- Identifies vessel and port of loading

Resolution 6: Charter Party Terms Review

Review the charter party terms:
- Confirm the charter party is valid
- Verify the terms do not conflict with the credit
- Note any unusual terms

Resolution 7: Bank Examination Protocol

When examining a charter party bill of lading:
1. Confirm it indicates it is subject to a charter party
2. Verify all mandatory content
3. Check the on board notation
4. Match ports against the credit
5. Verify the original or full set is presented
6. Review the charter party reference

Conclusion

Examining charter party bills of lading under Article 22 requires attention to the charter party indication, content requirements, and on board notation. The examination protocol outlined above reduces the risk of overlooking discrepancies and ensures compliance with every requirement of Article 22.

Frequently Asked Questions

1. What is the most common discrepancy in charter party bill of lading presentations?

The most common discrepancy is submitting a standard bill of lading (Article 20) when the credit requires a charter party bill of lading (Article 22), or vice versa.

2. Can a charter party bill of lading be issued after the goods are shipped?

Yes. However, the on board notation date must still be within the credit's shipment period.

3. Does the charter party need to be presented with the bill of lading?

No. UCP 600 does not require the charter party to be presented. The bill of lading must indicate it is subject to a charter party, but the charter party document itself is not required.

4. What if the charter party terms conflict with the credit?

The credit terms prevail. The bill of lading must comply with the credit requirements regardless of the charter party terms.

5. Can a freight forwarder issue a charter party bill of lading?

Yes, provided the freight forwarder identifies itself as carrier or as agent of a named carrier (Article 22(d)).

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.