UCP 600 Article 27: Partial Shipment — Common Errors and Discrepancies

Introduction

Partial shipments under UCP 600 Article 27 present recurring examination challenges. Where a credit requires a road, rail, or inland waterway transport document and the goods are shipped in multiple consignments, the examiner must determine whether the partial shipment is acceptable under the credit and whether each consignment satisfies Article 27's documentary requirements. This guide catalogs the most common errors and discrepancies arising from partial shipments under Article 27, explains why each constitutes a discrepancy, and provides the corrective steps required.

Failure Mode Analysis

F1: The credit prohibits partial shipments but multiple transport documents are presented. Article 31(a) governs this situation. If the credit expressly prohibits partial shipments, multiple transport documents indicate a partial shipment. The presentation is discrepant unless the credit permits partial shipments.

F2: The transport documents show different dispatch dates. Where multiple documents are presented, each must satisfy Article 27(b). A document showing a dispatch date after the latest shipment date is discrepant even if other documents are timely.

F3: The transport documents show different places of dispatch. Article 27(c) requires each document to show a place of dispatch matching the credit. If different documents show different dispatch places, each must match the credit. A discrepancy in any document is a discrepancy in the presentation.

F4: The total quantity across documents does not match the credit. If the credit requires 1,000 units and three documents show 300, 300, and 300 units (total 900), the presentation does not satisfy the credit. The quantity discrepancy must be flagged.

F5: One transport document is an original, another is a copy. Article 27(d) requires originals. If one of the multiple documents is a copy, the presentation is discrepant for that document.

F6: The goods descriptions differ across documents. One document says "widgets" and another says "gadgets." Article 14(d) requires consistency. The discrepancy must be flagged.

F7: The documents do not cover the full shipment under a credit prohibiting partial shipments. Article 31(a) addresses this. If the credit prohibits partial shipments and the documents show only part of the goods, the presentation is discrepant.

Deterministic Resolution Architecture

1. Determine whether partial shipments are permitted. Check the credit for "partial shipments prohibited" or "partial shipments allowed." Apply Article 31.

2. If partial shipments are prohibited, verify the presentation. Confirm all goods are covered by a single transport document or by multiple documents that collectively cover the full shipment. If the documents cover only part of the goods, the presentation is discrepant.

3. If partial shipments are permitted, examine each document independently. Apply Article 27 requirements to each document: issuer, date, places, original status.

4. Verify quantities. Add the quantities across all documents. Confirm the total matches the credit. If the total is less than the credit amount, the presentation may not satisfy the credit.

5. Verify dates. Confirm each document's dispatch date is on or before the latest shipment date. If any document shows a later date, that document is discrepant.

6. Verify places. Confirm each document's place of dispatch and destination matches the credit. If any document shows a different place, that document is discrepant.

7. Verify goods descriptions. Confirm consistency across all documents per Article 14(d). Apply ISBP 745 A12 for tolerances.

8. Record the decision. Document the article applied to each document, the data examined, and the outcome. Preserve the examination worksheet.

9. Escalate discrepancies. If a discrepancy exists in any document, prepare the discrepancy notice per Article 16. If the discrepancy is ambiguous, contact the issuing bank.

Conclusion

Partial shipments under Article 27 require the examiner to apply Article 31 in conjunction with Article 27. Each transport document must satisfy Article 27 independently, and the collective presentation must satisfy the credit's partial shipment terms. The key examination points are quantity completeness, date compliance per document, place-name consistency, and original status.

FAQ

Can partial shipments be made by different carriers? Yes. Article 31 permits partial shipments to be carried by different carriers unless the credit expressly prohibits this. Each transport document is examined independently under Article 27.

What if the credit says "transshipment prohibited"? Transshipment prohibition applies differently to road, rail, and inland waterway transport than to marine transport. The credit's specific wording determines whether transshipment is prohibited for these transport modes.

What if the total quantity exceeds the credit? Article 18(a) governs commercial invoices. If the invoice quantity exceeds the credit, the presentation is discrepant. The transport document quantity must match the invoice quantity per Article 14(d).

What if one document is missing? If the credit requires a specific document and it is not presented, the presentation is discrepant per Article 14(a). The examiner must refuse the entire presentation unless the missing document is not required.

Can partial shipments be made on different dates? Yes. Article 31 permits partial shipments to be made on different dates unless the credit prohibits this. Each document's date must satisfy Article 27(b).

Source Notes

All sources referenced in this article are context only — the discrepancies derive from UCP 600, ISBP 745, and common examination practice.

• UCP 600 — Uniform Rules and Practice for Documentary Credits, ICC Publication no. 600. Context only.
• ISBP 745 — International Standard Banking Practice, ICC Publication no. 745. Context only.
• ICC Academy, "Certified UCP 600 Specialist (CUCP)." Context only.
• ICC, "Commentary on UCP 600." Context only.