ICC guidance papers throw light on LoCs

Banks should review their forms and practices based on the recommendations in these papers

Last Monday, the International Chamber of Commerce (ICC) released a set of four guidance papers on the usage of documentary credits. These include recommendations regarding the requirements for ‘onboard notation’ on transport documents, notes on the principle of ‘strict compliance’, the use of ‘drafts’ i.e. bills of exchange under documentary credits, and the prescribed documentary credit format.

The first paper deals with a situation where a bill of lading (BL) indicates place of receipt different from the port of loading stated in the credit and/or pre-carriage details.

The question is whether or not there is a need for an onboard notation showing