4. Understanding Changes to ISBP
Pamela Woon, Regional Trade Advisor
Citi Transaction Banking Academy for Financial Institutions Professionals | August 2014

5. Changes Separates practices by Sections (A to Q)
New inclusions not appearing in previous publication
Expands the application more than what stated in ISBP 681
Easier to understand, provides further clarity
Each section address a particular UCP article relative to each practice (Transport documents, drafts, invoices etc)
Addresses other documents not considered in publication 681 (P/List, W/List, Beneficiary Certificates and other type of certificates ( Analysis, Inspection, Health, etc.))

6. Comparison – ISBP 681 vs. ISBP 745
ISBP 2013 Revision
Preliminary Considerations 5 7
General Principles 37
General Principles (A1 – A41) 41
Drafts and Calculation of Maturity Date 14
Drafts and Calculation of Maturity Date (B1 – B18) 18
Invoices 11
Invoices (C1 – C15) 15
Transport Document Covering at Least Two Different Modes of Transport 23
Transport Document Covering at Least Two Different Modes of Transport (“multimodal or combined transport document”) (D1 – D32) 32
Bill of Lading 24
Bill of Lading (E1 – E28) 28
(NONE)
Non-Negotiable Sea Waybill (F1 – F25) 25
Charter Party Bill of Lading 19
Charter Party Bill of Lading (G1 – G27) 27

7. Comparison – ISBP 681 vs. ISBP 2013 Revision (Cont’d)
Air Transport Document 23
Air Transport Document (H1 – H27) 27
Road, Rail or Inland Waterway Transport Document 13
Road, Rail or Inland Waterway Transport Document (J1 – J20) 20
Insurance Document and Coverage 11
Insurance document and Coverage (K1 – K23)
Certificate of Origin 5
Certificate of Origin (L1 – L8) 8
(NONE)
Packing List, Note or Slip (“Packing List”) (M1 – M6) 6
Weight List, Note or Slip (“Weight List”) (N1 – N6)
Beneficiary’s Certificate (P1 – P4) 4
(NONE)
Analysis, Inspection, Health, Phytosanitary, Quantity, Quality and Other Certificates (“certificate”) (Q1 – Q11) 11
Total
185
298

8. Question Time!
   
The examination of documents is to be completed according to the terms and conditions of the credit and UCP 600.
ISBP, publication 681 or 745, only provides an explanation of how to interpret UCP 600.
Since most of publication 681 is covered in 745, it is recommended that ISBP 745 be used as the basis for examination of documents.
Topic : Examination subject to publication 681 or 745
A credit is issued before the publication of ISBP 745 and had stated “the applicable rule: UCP latest version” .
Should the examination of documents under that credit be subject to ISBP 681 or ISBP 745?

9. PRELIMINARY CONSIDERATIONS
Scope of the publication
i – (New)
to be read in conjunction with UCP 600 and not in isolation.
ii – (New)
Practices described highlight how articles of UCP 600 are to be interpreted and applied to
credit and do not expressly modify or exclude an applicable article in UCP 600.

10. A GENERAL PRINCIPLES Abbreviations A1 – (expands Para 6)
Credit includes an abbreviation in its text allows document to show
the same abbreviation or any other abbreviation that has the same
meaning, or to show the complete spelling of the word or vice versa.
A2,a – (expands Para 7)
Virgules (i.e., slash marks “/”) when used with no context is to be understood as follows:
“Red/Black/Blue” - only Red OR only Black OR only Blue OR any combination of them.
A2,b – (New)
Comma (“,”) when used to indicate a range of data with no context is to be understood as follows:
“Port of Loading: Hamburg, Rotterdam, Antwerp” - only Hamburg OR only Rotterdam OR only Antwerp OR any combination of them.

11. û ü A GENERAL PRINCIPLES
Certificates, Certifications, Declarations and Statements
A4 – (expands Para13)
needs to be dated depends on the type that has been requested,
its required wording and the wording that appears within the
document.
LC Certification Requirement:
The vessel is no more than 25 years old
To Comply :
Certify the date or year the vessel was built
=> such date is no more than 25 years prior to shipment date **
=> Date of issuance not required
Certify as to the wording as stated in the credit
=> Date of issuance is required.
Date if Issuance :
We certify that the vessel was built October 10, 1994 ** û
Date of Issuance:
We certify that the vessel is no more than 25 years old ü

12. A GENERAL PRINCIPLES
Courier receipt, post receipt and certificate of posting in respect of sending of documents, notices and the like
A10 – (New)
courier receipt, post receipt and certificate of posting required by the credit
as evidence of sending documents, notices and the like is to be examined
only to the extend expressly stated in credit, otherwise according to UCP 600
sub-article 14(f) and not under UCP 600 article 25.
Documents and the need for completion of a box, field or space
A17 – (New)
a box, field or space for data to be inserted in a document does not
necessarily mean that such box, field or space is to be completed.

13. A GENERAL PRINCIPLES Expressions Not Defined in UCP 600
A19 – (expands and adds 3 new expressions to Para 21)
“shipping documents” : all documents, except drafts, teletransmission
reports and courier receipts, postal receipt or certificates of posting
evidencing the sending of documents.
“stale documents acceptable” (with or without specifying presentation period) : presented later than 21 days, but within validity.
“third party documents not acceptable” : has no meaning and is to be disregarded.
“shipping company” as issuer relating to a transport document : carrier; master or,
when a charter party bill of lading is presented, the master, owner or charterer, or any
entity identified as an agent of any one of the aforementioned, regardless of whether it
issued or signed the presented transport document.
“documents acceptable as presented” :
1. presentation consist of one or more of the stipulated documents
2. within expiry and within credit amount.
3. Documents will not be examined including whether they are presented in the
required number of originals or copies.

14. A GENERAL PRINCIPLES Issuer of documents Language
A21 – (expands Para 23)
credit stipulates the language, data required by the credit or UCP 600 are to be in
that language.
credit silent, any language
credit allows multiple languages, confirming or nominated bank acting on its
nomination may restrict the language. Else, required to examine the data in all of
the acceptable languages.
no examination of data inserted in a language that is additional to credit
requirement.
information in language other than that required in the credit may be acceptable.
(eg. name of person/entity, stamps, legalization, endorsements or similar, pre-
printed text not limited to field headings)

15. A GENERAL PRINCIPLES Non-documentary conditions and conflict of data
A26 – (New)
compliance need not be evidenced on any stipulated document.
Data contained in a stipulated document are not to be in conflict.

16. A GENERAL PRINCIPLES Originals and copies A27 – (New)
document bearing an apparently original signature, mark, stamp or label of issuer
is an original unless it states that it is a copy.
A29 – ( expands Para 29, 30)
credit requires 2/3 original BLs without disposition instructions for the remaining
and presentation of 3/3 original BLs is acceptable.
“photocopy of a signed invoice” requires presentation of either a photocopy or copy
of original invoice duly signed or, when not prohibited, a signed original invoice.

17. ORIGINAL A GENERAL PRINCIPLES Originals and copies A30 – (Para 31)
LC must prohibit original if only copy is acceptable.
where credit calls for copy & indicates disposal of original,
presentation of original not acceptable.
A31 – (New)
- original document be signed when required by credit .
original document be signed when required by document itself
To be countersigned to be valid ……

18. A GENERAL PRINCIPLES Signatures A35 – ( expands Para 39)
requirement for signed & stamped will be satisfied by a signature & the name of the
party typed, stamped, handwritten, pre-printed or scanned on the document.
“this document has been electronically authenticated” or “this document has been
produced by electronic means and requires no signature” does not, by itself
represent an electronic method of authentication.
statement that authentication may be verified or obtained through a specific
reference to a website (URL) constitute a form of electronic method of
authentication. Banks will not access such websites to verify or obtain
authentication.

19. ü ü ü A GENERAL PRINCIPLES Title of documents and combined documents
Quality & Quantity Certificate
DD/MM/YY
Goods Description:XXX
We hereby certify that 10,000 widgets shipped are of good quality ü
Title of documents and combined documents
A41 – (New)
document required by a credit covering more than one function may be presented as a single document or separate documents that appear fulfill each function and is presented in the number required.
ABC CO. LTD
Quality Certificate
DD/MM/YY
Goods Description: XXX
We hereby certify that the goods are of good quality
ABC CO. LTD
Quantity Certificate
DD/MM/YY
Goods Description: XXX
We hereby certify that 10,000 widget have been shipped.
ABC CO. LTD ü ü
LC Field 45A :
Certificate of Quality and Quantity

20. Question Time! Topic : Use of a virgule (/)   
1. The Certificate of Origin could be issued by the Chamber of Commerce in Country A or Country B or by both (2 certificates) depending on the origin of the goods
2. A requirement for a certificate of quality/quantity is requiring two distinct certifications i.e., one relating to quality and one to the quantity and not one or the other, as may be implied by the use of a virgule.
The key word to look in for Para A2 is “a virgule is used and no context is apparent”
However it is better that the issuing bank indicate s ‘and’ or ‘or’ as appropriate rather than a virgule (/).
Topic : Use of a virgule (/)
1. In a LC, a certificate of origin is required to be issued by Chamber of Commerce of
Country A/Country B.
In this case should the document be issued by a Chamber of Commerce in Country A or Country B?
2. What happens when the LC calls for for a certificate of quality/quantity?
Can only a Certificate of Quality or a certificate of Quantity alone be enough to meet the LC condition?

21. Question Time! Topic : Courier Receipt evidencing
The courier receipt required for evidencing dispatch of documents is to be examined in accordance with UCP sub Art 14(f).
They cannot be treated as transport document and hence Sub Art 25 of UCP will not apply
The courier receipt is acceptable
Topic : Courier Receipt evidencing
dispatch of non-negotiable
Documents
An LC requires presentation of a courier receipt to evidence that one set of non-negotiable documents must be sent to the applicant within 5 days after shipment.
The courier receipt presented does not bear the signature or stamp of the courier company. Is this acceptable?

22. B DRAFTS AND CALCULATION OF MATURITY DATE
Drawing and signing
B8 – (New)
draft must be drawn by the beneficiary and to indicate a date of issuance.
beneficiary or second beneficiary changed its name, credit mentions the former
name, draft may be drawn using the new name provided that it indicates “formerly
known as (name of beneficiary or second beneficiary).
B9 – (New)
credit indicates drawee as the bank’s SWIFT address, draft may show the same or
the full name of the bank.
B10 – (New)
credit available by negotiation with nominated or any bank, draft is to be drawn on a
bank other than the nominated bank.
B11 – (New)
credit available by acceptance with any bank, draft is to be drawn on the bank that
agrees to accept the draft thereby willing to act on its nomination.

23. B DRAFTS AND CALCULATION OF MATURITY DATE
Drawing and signing
B12 – (New)
Credit available by acceptance with:
a nominated bank (not a confirming bank), and it decides not to act on its
nomination, the beneficiary may:
> draw the draft on the confirming bank, if any, or request presentation be forwarded to confirming bank as is.
> if credit available with any bank, draw the draft on the bank that agrees to accept it thereby act on its nomination.
> request presentation be forwarded to the issuing bank as presented, with or without a draft drawn on the issuing bank.
a confirming bank and it decides not to reinstate its confirmation, the beneficiary
may request presentation be forwarded to the issuing as presented, with or without a
draft drawn on the issuing bank.

24. B DRAFTS AND CALCULATION OF MATURITY DATE
Amounts
B13 – (New)
for the amount demanded under the presentation.
B14 – (expands Para 50)
when shown, amount in words and figures is to be the same, and currency as
stated in credit.
when in conflict, the amount in words is to be examined as the amount of demand. .

25. C INVOICES Title of invoice C1 – ( expands Para 57)
A credit requiring a “ commercial invoice”:
document titled “invoice” is sufficient enough to satisfy credit requirement even
containing statement that it has been issued for tax purposes.
Issuer of an invoice
C2 – (New)
appear to have been issued by the beneficiary or, in the case of transferred credit,
the second beneficiary.
when beneficiary or second beneficiary has changed its name and the credit
mentions the former name, an invoice may be issued in the name of the new entity
provided it contains indication of “formerly known as (name of the beneficiary or
second beneficiary)” or words of similar effect.

26. C INVOICES LC Goods Description INVOICE SHOWS Suede Shoes
Description of the goods, services or performance and other general issues related to invoices
C5 – (New)
may also indicate additional data provided they do not appear to refer to a
different nature, classification or category of goods, services or performance.
LC Goods Description
INVOICE SHOWS
Suede Shoes
Imitation Suede Shoes
Hydraulic Drilling Rig
Second Hand Hydraulic Drilling Rig

27. û ü C INVOICES Instalment drawings or shipments
C15 – ( expands Para 67)
credit ceases to be available for that and subsequent instalment for any instalment
not drawn or shipped within period allowed,
given periods are a sequence of dates or timelines that determine a start and end
date for each installment.
if credit allows partial drawings or shipments, partial drawings or shipments is
permitted within each installment.
credit indicating number of latest dates, and not given periods is not an installment
schedule per article 32, UCP 600 but article 31.
Period
Quantity
Max . Quantity
Jan
1000 mt XX
Feb
Mar
Schedule
Quantity
Max . Quantity
Latest by Jan
1000 mt XX
3000 mt XX
Latest by Feb
2000 mt XX
Latest by Mar û ü

28. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
Issuance, carrier, identification of the carrier and signing of a multimodal transport document
47A: Additional Conditions
+ Freight Forwarder’s / House…….[type of transport document ] are not
acceptable
“+” has no meaning.
If no specific requirements is provided in credit, it is to be disregarded and be examined according to UCP 600 article 19, 20 and 21.

29. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
Issuance, carrier, identification of the carrier and signing of a multimodal transport document
when signed by a named branch of the carrier, the signature is considered to have
been made by the carrier
As Carrier
Issued by:

30. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
On board notation, date of shipment, place of receipt, dispatch, taking in charge, port of loading or airport of departure.
- If a credit requires shipment to commence from a port, named port of loading
may be stated in “Place of receipt”, in which case the dated on board notation to
also indicate the name of the vessel at the port stated under “Place of receipt”.
- name of country of place of receipt, dispatch, taking in charge, port of loading or airport of departure is not required even if stated in the credit.
Place of final destination, port of discharge or airport of destination
named port of discharge may be stated in “Place of final destination”, in which case notation evidencing port of discharge stated under “Place of final destination acceptable.
name of country of place of final destination, port of discharge or airport of destination is not required even stated in the credit.
when credit indicates a geographical area or range of places of final destination, ports of discharge, transport document to indicate the actual place of final destination, port of discharge within that geographical area or range of places.
Need not indicate the geographical area

31. NAMED POL /POD IN LC STATED IN PLACE OF RECEIPT/ FINAL DESTINATION FIELD
If named POL as required by Credit is indicated in “Place of Receipt” field=> required a dated on board notation to also indicate the name of the vessel at the port stated under “Place of receipt”.
If named POD as required by Credit is indicated in “Place of Final Destination ” field=> required a notation evidencing port of discharge stated under “Place of final destination
PLACE OF RECEIPT
PORT OF LOADING
PORT OF DISCHARGE
PLACE OF FINAL DESTINATION
CONSIGNEE:
TO ORDER OF BUYER BANK
SHIPPER:
SELLER CO. LTD.
PRE-CARRIAGE:
OCEAN CARRIAGE:
VESSEL A
GOODS
ISSUED IN 3 ORIGINALS
BILL OF LADING
AS MASTER
GOODS RECEIVED IN APPARENT GOOD ORDER…
XYZ SHIPPING LINES [ CARRIER ]
QUILIN CHINA
PORT KLANG, MALAYSIA
SHENZHEN CHINA
PORT PRAI, PENANG
DATE OF ISSUE: 06/05/2008 SIGNATURE
D.8
ON BOARD : DD / MM /YY VESSEL PORT PRAI
D-12 SHENZHEN, CHINA
:44E: (port of loading)
Port Prai, Penang
:44F: (port of discharge)
Shenzhen, China
D. 12
Port of Discharge : Shenzhen

32. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
Consignee, order party, shipper and endorsement, and notify party
- when required by credit to consign to or to the order of “issuing bank” or “applicant” or notify “applicant” or “issuing bank”, transport document indicating the name of the issuing bank or applicant, as applicable, without their respective addresses or any contact details stated in credit is acceptable.
- when address and contact details of applicant appear as part of the consignee or notify party details, they are not to conflict with those stated in credit.
Indication of name and address of delivery agent at destination
when credit requires to indicate the name, address and contact details of a delivery agent, at or for the place of final destination or port of discharge, the address need not be one that is located at place of destination or port of discharge or within the same country.

33. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
On board notation, date of shipment, pre-carriage, place of receipt and port of loading
(New – aligning with ICC Position Paper 470 April 22, 2010)
Notwithstanding credit requires evidence a port-to-port shipment, when a B/L
indicates : i. a place of receipt that is the same as the port of loading and there is no
indication of a means of pre-carriage OR ii. a place of receipt different from port of lading and there is no indication of a means of pre-carriage, then: (a) in case of a pre-printed “shipped on board” bill of lading => no further on
board notation is required and the date of issuance will be the date of
shipment (b) in case of a pre-printed “received for shipment” bill of lading => on board
notation is required and the date of the on board notation will be the date of shipment.

34. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
On board notation, date of shipment, pre-carriage, place of receipt and port of loading
Notwithstanding credit requires evidence a port-to-port shipment, when a B/L
indicates :
i. a place of receipt different from port of loading and there IS indication of a means of pre-carriage, a dated on board notation indicating the name of the vessel and port of loading stated in credit is required, regardless if it is pre printed “shipped on board” or “received for shipment”. The date of the on board notation will be the date of shipment.
BILL OF LADING
Place of Receipt : Amsterdam
Port of Loading : Rotterdam
Pre-carriage * : V 1
Main-Carriage: V2
On-Board :
dd/mm/yy
vessel name
POL in LC

35. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
On board notation, date of shipment, pre-carriage, place of receipt and port of loading
Notwithstanding credit requires evidence of a port-to-port shipment, when a B/L
indicates :
ii. a means of pre-carriage, no matter if no place of receipt is stated, a dated on board notation indicating the name of the vessel and port of loading stated in credit is required, regardless if it is pre-printed “shipped on board” or “received for shipment”. The date of the on board notation will be the date of shipment.
BILL OF LADING
Place of Receipt : NONE
Port of Loading : Rotterdam
Pre-carriage * : V1
Main-Carriage : V2
On-Board :
dd/mm/yy
vessel name
POL in LC

36. D,E,F & G Common Changes – MMBL, BL, NNSWB and CPBL
On board notation, date of shipment, pre-carriage, place of receipt and port of loading
Notwithstanding credit requires evidence of a port-to-port shipment, when a B/L
indicates :
a bill of lading with wordings such as “on board” means the carriage is from
the place of receipt to the port of loading, and the place of receipt is also
indicated, it must bear a dated on board notation indicating the name of vessel
and port of loading stated in the credit. The date of the on board notation will be
the date of shipment
if bill of lading indicates more than one port of loading, regardless if it is pre printed “received for shipment” or “shipped on board”, a separate dated on
board notation with relevant port of loading is required
When the Place of Receipt has been completed, any notation on this BL of “on board”. “loaded on board” or words of like effect shall be deemed to mean on board the means of transportation performing the carriage from the Place of Receipt to the Port of Loading.

37. F Non-Negotiable Sea Waybill
This is a new addition since ISBP 681 did not address Non Negotiable Sea Waybills;
- Reaffirms the application of UCP 600 article 21
It is similar to Bill of Lading in many parameters, with the below exceptions :
Section F does not address the “however titled’’ concept as in E2
the criteria for release of goods with presentation of more than one bill of lading.
In addition, due to the nature of these two documents (non-negotiable vs. negotiable)
the consignee criteria in E12-E16 obviously differs from the one in F11-F14) LC
Bills of Lading
NNSWB
To ABC
To ABC
To Order ABC
To Order ABC/ To ABC
To Order
To Order & endorsed by shipper
To Issuing Bank or Applicant

38. G Charter Party Bill of Lading
Application of UCP 600 article 22
G3 – (New)
code name or form name, such as, “Congenbill” or “Tanker Bill of Lading”
by itself is not an indication of, or reference to, a charter party.
G16 – (New)
shipment on more than one vessel leaving on same date for same destination is partial shipment.
Release of goods with more than one charter party bill of lading
to be surrendered
G26 – (New)
is not to expressly state release of goods is dependant on its surrender together with one or more other transport document unless all of the referenced transport document form part of the same presentation under the same credit.
Charter party contracts
G27 – (New)
banks do not examine charter party contract, even required by credit, unless UCP 600 sub-article 22(b) is specifically excluded and credit indicates the data to be examined.

39. H Air Transport Document
Issuance, carrier, identification of the carrier and signing of an air transport document
H5 – (expands Para 137)
when signed by branch of the carrier, it is signed by the carrier.
carrier to be identified by its name instead of an IATA airline code.
Goods accepted for carriage, date of shipment and requirement of an actual date of shipment
H8 – (clarifies Para 140)
other information appearing relative to this information, “For Carrier Use Only”, “Required Flight Date” or “Routing and Destination” to be disregarded as the shipment date.

40. Question Time!   
Provided a bill of lading contains a dated on board notation, a date of issuance is not necessary.
If a presented bill of lading was pre-printed 'shipped on board', and indicated a date of issuance and bore an undated on board notation or statement, the date of issuance will be deemed to be the date of shipment.
ISBP paragraph A11 (a) (iii) states that original transport documents, are to indicate a date of issuance, a dated on board notation, a date of shipment, a date for receipt for shipment, a date of dispatch or carriage, a date of taking in charge OR a date of pick up or receipt, as applicable.
Topic:  Date of issuance field on bill of lading left blank
LC calls for on board ocean bill of lading.
Beneficiary submits a received for shipment bill of lading showing a dated on board notation but the date of issuance field is left blank .Is this acceptable ? Should the date of issuance field be completed ?
How about if the presented bill of lading is pre-printed shipped on board instead of received for shipment?

41. Question Time! Topic : Photocopy of Transport
   
This will be considered as a discrepancy.
Copy of Transport documents need not be examined under Art
However the document will still be subject t Art 27, which states “ a bank will only accept a clean transport document”
Hence even if a photocopy of Transport Document is called for it should not contain any reference to damaged goods or packaging in compliance with Art 27.
Topic : Photocopy of Transport
Document called for in the LC
A LC calls for a Photocopy of a Bill of Lading. No original transport document is required under the LC.
The bill of lading presented contains a clause stating “Packaging is damaged”.
Is this a discrepancy ? Do we need to check the copy of Transport Documents for compliance under Art of UCP 600?

42. K INSURANCE DOCUMENT AND COVERAGE
Issuer, signing and original of an insurance document
K2 – (New)
when identified as “insurer”, the insurance document need not indicate that it
is an insurance company or underwriter. eg. Mitsubishi Sumitomo Insurance
Group
K3 – (New)
a broker may sign as agent/proxy for (or on behalf of) a named insurance company
/underwriter
K4 – (New)
insurance document signed by an agent or proxy is to indicate the name of the
insurance company or underwriter for [or on behalf of] which the agent or proxy is
signing, unless it has been identified elsewhere in the document eg. John Doe (by
proxy) on behalf of the insurer, MSIG

43. K INSURANCE DOCUMENT AND COVERAGE
Issuer, signing and original of an insurance document
K5 – (New)
when insurance document requires a countersignature by the issuer, the
assured or a named entity, it is to be countersigned.
K6 – (New)
insurance document may show only the trading name in the signing field,
provided the insurance company , address and contact information is identified
elsewhere on the document.
Eg. AGCS Marine Insurance Co
33 West Monroe street Signed by:
Chicago, IL Tel:
K7 – (New)
insurance document indicating cover is provided by more than one insurer may be
signed by a single agent or proxy on behalf of all insurers or be signed by an
insurer for [or on behalf] of all co-insurers.
need not show the names of each insurer or the percentage of cover of each
insurer.

44. K INSURANCE DOCUMENT AND COVERAGE
Dates
K9 – (simplifies Para 175)
insurance document is not to indicate an expiry date for the
presentation of any claims there under. NO
K10 – (New)
insurance document indicating cover effective from a date later than shipment date is
not permitted.
insurance document indicating issue date later than date of shipment is to include
additional note that coverage is effective from a date not later than the date of shipment.
insurance document covering “warehouse-to-warehouse” or words of similar effect
dated after date of shipment does not signify that coverage was effective from a date
not later than the shipment date.
K11 – (New)
in the absence of issuance date or effective date of coverage
the countersignature date will be treated as the effective date.

45. K INSURANCE DOCUMENT AND COVERAGE
Amount of cover and percentage
K13 – (New)
no requirement for insurance coverage to be calculated to more than two
decimal places.
K14 – (New)
is not to contain a franchise or an excess (deductible) clause, if credit
requires insurance cover irrespective of percentage.
- Document need not state “irrespective of percentage”
K16 – (New)
covering same risk, same shipment must be under one document, however,
multiple documents are acceptable provided each document clearly reflects by
percentage:
a) value of each insurer’s cover,
b) each insurer will bear its share of the liability severally and without
preconditions, and
c) insurance coverage, when totalled, equals at least the insured amount
required by credit or UCP 600 sub-article 28 (f)(ii).
Risks to be covered
K18 – (addition to Para 173)
an Institute Cargo Clause (A) or Institute Cargo Clauses (Air) when dispatch
is effected by air = “all risk” coverage required by the credit.

46. “irrespective of percentage”
K INSURANCE DOCUMENT
Original
MILL 4 No:
08483
INSURANCE COMPANY LIMITED
INSURANCE POLICY
Credit Term: LC Value: USD90, (after deduction of advance payment of USD10,000.00) Risk to be covered: All Risks Irrespective of Percentage with claims payable at destination.
Policy Issued To Order of SELLER CO. LTD.
Sum Insured
(figures):
USD110,000.00
Covering:
Institute Cargo Clause A
Claims payable at destination
Sum Insured
(words):
One Hundred & Ten Thousand U.S. Dollars Only
Vessel:
Titanic V001 û
Sailing Date:
DD/MM/YY
Subject to 5% Excess/Franchise
Voyage from:
To:
Hanoi HK
Settling Agents:
ABC Company Ltd, HK
Survey Agent:
K14 – irrespective of percentage ü
Goods Insured:
1 BMW 5.0 series
Excluding Terrorism Risk
K15 – for gross value of goods
Important Notice
K17 – exclusion clause
CARRIERS' AND / OR BAILEES' LIABILITY
All matters relating to this Policy / Certificate shall be referred to Insurance Co. Ltd. Or in the case of claim to the Settling Agents named above.
need not state
“irrespective of percentage”
SELLER COMPANY LTD
For and on behalf of Insurance Co. Ltd   
Authorised Signature
Countersigned to be valid
Date:
25 JUN 08

47. K INSURANCE DOCUMENT AND COVERAGE
Insured party and endorsement
K20 – (New)
credit should not require insurance to be issued “to bearer”, or “to order”
- should indicate the name of an insured party.
when credit requires insurance document to be issued “to order of (named
entity)”, document not indicating “to order” is acceptable provided :
> the named entity is show as insured party or
> claims are payable to it,
> and assignment by endorsement is not expressly prohibited.
K21 – (New)
where a credit is silent as to insured party :
> not to show claims payable to the order /favor of beneficiary or any entity
other than the issuing bank / applicant
> if claims payable to the order /favor of beneficiary must be endorsed in blank
or in favor of the issuing bank / applicant.

48. K INSURANCE DOCUMENT AND COVERAGE
General terms and conditions of an insurance document
K22 – (New)
will not be examined by banks.
Insurance Premium
K23 – (New)
indication on insurance documents is to be disregarded unless there is indication
that document is not valid unless premium is paid and there IS indication that
premium has not been paid.

49. Question Time! Topic: Rounding up or down for insurance coverage
The Insurance Certificate presented is acceptable.
ISBP 745, paragraph K13 states that there is no requirement for insurance coverage to be calculated to more than two decimal places.
This means that if the insurance amount need not be rounded off up or down when it exceeds more than 2 decimal places (i.e need not be rounded off to 0.77 )
Topic: Rounding up or down for
insurance coverage
LC called for Insurance Certificate at 110% of the Invoice Value.
Invoice is presented for SGD 91, Insurance Certificate is presented for SGD 100,132.76
110% of invoice amount works out to
SGD 100,
Is the insurance certificate acceptable?

50. L CERTIFICATE OF ORIGIN
Content of a certificate of origin
L5 – (expands Para 183)
consignee information, if any, must not be in conflict with transport document.
Certificate of Origin
Consignee : ABC Co. Ltd
Consignee : XYZ Co. Ltd
Bill of Lading
Consignee :
ABC Company Limited ü û

51. L CERTIFICATE OF ORIGIN
Content of a certificate of origin
L5 (continued)
if credit requires transport document be issued “to order”, “to order of
shipper”, “to order of issuing bank”, “to order of nominated bank” or
“consigned to issuing bank”, the document may show any entity named in the
credit except the beneficiary as the consignee.
Letter of Credit
Applicant : DEF Company Limited
Beneficiary : GHI Company Limited
Issuing Bank : Importer Bank
B/L to be issued consigned : To order/ order of shipper / issuing bank /nominated bank
Certificate of Origin
Consignee : DEF COMPANY LIMITED ü
Certificate of Origin
Consignee : IMPORTER BANK ü
Bill of Lading
Consignee :
To order/ order of shipper / issuing bank /nominated bank * û
Certificate of Origin
Consignee : GHI COMPANY LIMITED
Certificate of Origin
Consignee: XYZ PRIVATE LIMITED (a name NOT appearing in LC) û

52. L CERTIFICATE OF ORIGIN
Content of a certificate of origin
L5 (continued)
if credit has been transferred, first beneficiary as consignee is acceptable.
Transferable Letter of Credit
Applicant : DEF Company Limited
Beneficiary : GHI Company Limited
Issuing Bank : Importer Bank
B/L to be issued consigned : To order/ order of shipper / issuing bank /nominated bank
Certificate of Origin
Consignee: DEF COMPANY LIMITED ü
Certificate of Origin
Consignee : IMPORTER BANK ü
Bill of Lading
Consignee :
To order/ order of shipper / issuing bank /nominated bank *
Certificate of Origin
Consignee : GHI COMPANY LIMITED ü

53. L CERTIFICATE OF ORIGIN
Content of a certificate of origin
L7 – (New)
in the absence of requiring a certificate of origin, the origin of goods indicated in
any document is not to conflict with the requirement of the credit.
Example:
LC condition: Goods must be of U.S.A. origin
Made In
China û
Shipping marks in B/L
We certify goods are of
Chinese origin
Certification in Invoice û
L8 – (New)
may indicate a different invoice number, invoice date and shipment routing to
that indicated in one or more other documents provided the exporter or consignor
shown is not the beneficiary.

54. Question Time! Topic : Issuer of Certificate of Origin
The clause is not intended to work the other way around and cannot be applied for vice versa cases . If the LC called for COO to be issued by Dept of Trade, then it cannot be issued by chamber of commerce
If the requirement that the COO is issued only by the Chamber of Commerce the LC can contain a wording "Certificate of origin must be issued by an entity identified as a chamber of commerce” or similar which would override L3 © (ii).
Topic : Issuer of Certificate of Origin
According to paragraph L3 (c) (ii), a requirement for a certificate of origin issued by a chamber of commerce is satisfied by the presentation of a certificate of origin issued by Department of Trade or the like.
However if the LC requires a certificate of origin issued by Department of Trade, is a certificate of origin issued by a chamber of commerce acceptable?
How to ensure that a COO is issued only by the Chamber of Commerce and not by the Department of Trade?

55. M PACKING LIST, NOTE OR SLIP (“Packing List”) - NEW
Basic requirement and fulfilling its function M1
document titled , similar titled or untitled containing any information as to the packing
of the goods is acceptable.
Issuer of a packing list M2
issued by entity stated in credit. M3
any entity may issue if issuer not indicated in credit.
Content of a packing list M4
data of packing on packing list, if presented, are not to conflict with data required in credit. M5
may indicate different invoice number/date and shipment routing from other
documents, provided issuer is not the beneficiary. M6
banks only examine totals to ensure it does not conflict with total shown in credit and
any other document.

56. M PACKING LIST, NOTE OR SLIP (“Packing List”) - NEW
Basic requirement and fulfilling its function N1
document titled ,similar titled or untitled containing any information as to the weight of
the goods is acceptable.
Issuer of a weight list N2
issued by entity stated in credit. N3
any entity may issue if issuer not indicated in credit.
Content of a weight list N4
data of weight on a weight list, if presented, are not to conflict with data required in
credit. N5
may indicate different invoice number/date and shipment routing from other
documents, provided issuer is not the beneficiary. N6
banks only examine totals to ensure it does not conflict with total shown in credit
and any other document.

57. P BENEFICIARY’S CERTIFICATE - NEW
Basic requirement and fulfilling its function P1
a signed document titled or untitled containing data and certification required
by credit is acceptable.
Signing of a beneficiary’s certificate P2
to be signed by, or for [or on behalf of], the beneficiary.
Content of a beneficiary’s certificate P3
not to conflict with credit requirements. P4
data need not be identical, but are to clearly indicate requirement prescribed by
credit has been fulfilled.
need not include goods description or other references to the credit or other
document.

58. Q ANALYSIS, INSPECTION, HEALTH, PHYTOSANITARY, QUANTITY QUALITY AND OTHER CERTIFICATES (“certificate”) - NEW
Basic requirement and fulfilling its function Q1
a signed document titled or untitled certifying the outcome of the required action. Q2
an action required to take place on or prior to shipment date, the document is to issue date is also indicated, it may be subsequent to shipment date but not later than indicate:
issue date not later than date of shipment,
wording to that effect and if the presentation date.
Issuer of a certificate Q3
issued by entity stated in credit. Q4
any entity, including the beneficiary may issue if issuer not indicated in credit. Q5
if credit indicated issuer as “independent”, “official”, “qualified” or similar, document
issued by any entity, except the beneficiary is acceptable.

59. Q ANALYSIS, INSPECTION, HEALTH, PHYTOSANITARY, QUANTITY QUALITY AND OTHER CERTIFICATES (“certificate”) - NEW
Contents of a certificate Q6
may indicate:
a) only a sample has been tested, analyzed or inspected
b) quantity greater than that stated in credit or any other document, or
c) more hold, compartment or tank numbers than stated on transport document. Q7
when credit indicates specific requirements, with or without stipulating document
to indicate compliance, data mentioned on the certificate or other document are
not to conflict with those requirements. Q8
when credit is silent as to specific content, certificate may include negative
statements, provided not in conflict with credit, other document or UCP 600.

60. Q ANALYSIS, INSPECTION, HEALTH, PHYTOSANITARY, QUANTITY QUALITY AND OTHER CERTIFICATES (“certificate”) - NEW
Contents of a certificate Q9
consignee information, when shown, is not to conflict with transport document.
if credit requires transport document be issued “to order”, “to order of shipper”,
“to order of issuing bank”, “to order of nominated bank” or “consigned to issuing
bank”, the document may show any entity named in the credit except the
beneficiary as the consignee.
Q10
may indicate an entity other than the beneficiary or the shipper as shown on
other document as the consignor or exporter.
Q11
may indicate a different invoice number, invoice date and shipment routing to
that indicated in one or more other documents provided the exporter or consignor
shown is not the beneficiary.

61. Case Study: Identify the DiscrepanciesNO
DICREPANCIES 1
Invoice not issued by beneficiary as per LC 2
Invoice showing “CIF , Malaysia, Incoterm 2010” i/o “CIF, Malaysia 3
Inspection Certificate dated after the Shipment date 4
Inspection Certificate not in the language of the Credit 5
Insurance does not evidence “All Risk” coverage 6
Insurance shows exclusion of “Theft Pilferage and Non Delivery” 7
Insurance is dated after the Shipment date 8
Bill of Lading not signed as per UCP 9
Port of Loading does not show Country Name as per LC 10
B/L does not have on board notation

62. THANK YOU
Strictly Private and Confidential 62

63. efficiency, renewable energy and mitigation
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