Post 26 UCP 600 offers that a transport document need to not indicate that the goods are or will be loaded on deck. Therefore, if a beneficiary under a letter of credit presents a bill of lading showing that the goods have been loaded ?on deck?, a bank may appropriately refuse the documents and not pay the beneficiary. This seems really a surprising outcome, specifically considering that usually containers are shipped on deck a vessel.
The term on deck, even though the UCP 600 do not specifically say so, only applies to marine transport.
A truck, a plane, a railway and so forth. do not have decks and the term is to be narrowly interpreted.
To get about the prohibition, carriers will need to mention that they ?may? load the goods on deck.
Article 26 a. UCP 600 specifically permits:
?A clause on a transport document stating that the goods may be loaded on deck is acceptable.?
Even even though it might be obvious to the parties involved that the carrier will actually ship the goods on deck, he might not state so in the bill of lading.
The following bill of lading was rejected appropriately:
?Perishable Cargo on Deck at Shipper?s Risk.?
A transport document bearing a clause such as ?shipper?s load and count? and ?said by shipper to contain? is acceptable.(see Article 26 b UCP 600). The carrier makes use of these clauses to limit his liability against claims from the consignee. Of course a carrier cannot limit his liability in situation he knows that the info provided by the shipper is incorrect. In case he issued a bill of lading nonetheless, he would be liable for fraud.
Post 26 UCP 600 finally stipulates that ?a transport document may possibly bear a reference, by stamp or otherwise, to charges extra to the freight.?
The prior version of the UCP (the UCP 500) had listed unique rules relating to the remedy of ?freight payable? or ?freight to be prepaid?. The ICC considered these provisions superfluous, because ?there had been no cases in which banks queried terms connected to freight payments that have been produced or are to be produced.?
A seller being obligated to pay the freight does not have to pay extra charges.
The ICC thusly:
?It is thought to be typical custom and practice for the exporter to pay only the sea freight and to be issued a ?freight prepaid? bill of lading, leaving the consignee to pick up the further charges.?
In regards to further charges the ICC more explains:
?Depending on the conference of the carrier, there may possibly be charges in addition to the basic sea freight, such as ?currency surcharge?, bunker adjustment surcharges?, heavy lift surcharge, and so on.
?On top of this, charges to cover additional costs in the port of destination may consist of ?congestion surcharge?, ?on carriage?, ?local taxes, ?optional destination fees?, etc.
The author additional understands of war and terrorism surcharges, as well as charges connected to the electronic advise of shipments to UD customs authorities.
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Tags: bill of lading, Finance & Insurance coverage, ICC, on deck, stated by shipper to contain, shippers load and count, UCP 500, UCP 600
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Source: http://www2-finance.com/how-to-make-your-letter-of-credit-transaction-successful
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