Place of Receipt Different than the Letter of Credit Discrepancy

According to the letter of credit rules, the multimodal bill of lading must indicate that goods have been taken in charge at the place stated in the letter of credit, by either a pre-printed wording or by a notation indicating the date on which the goods have been taken in charge.

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Multimodal bill of lading is a type of transport document, that is used when the shipment covers at least two different modes of transport.

On a typical multimodal bill of lading, there are 4 different places exist in regards to delivery of goods:

  1. Place of Receipt: is the place where the goods are received from the shipper by the carrier, or its agent
  2. Port of Loading: is the place where the goods are received for marine transport by the Carrier
  3. Port of Discharge: is the place where the goods are to be discharged from the vessel
  4. Place of Delivery: is the place where the goods are delivered by the carrier to the buyer

According to the letter of credit rules, the multimodal bill of lading must indicate that goods have been taken in charge at the place stated in the letter of credit, by either a pre-printed wording or by a notation indicating the date on which the goods have been taken in charge.

If the issuing bank finds out that the place of receipt on the multimodal bill of lading is inconsistent with the letter of credit terms, then the issuing bank will issue a discrepancy, which is known as place of receipt different than the letter of credit.

Letter of Credit Discrepancy Example: Place of Receipt Different Than the Letter of Credit on the Multimodal Bill of Lading 

A letter of credit has been issued in SWIFT format, subject to UCP latest version, with the following details:

Letter of Credit Conditions

Field 44A: Place of Taking in Charge/Dispatch from …/Place of Receipt: SAO PAULO, BRAZIL

Field 44E: Port of Loading/Airport of Departure: SANTOS PORT, BRAZIL.

Field 44F: Port of Discharge/Airport of Destination: PORT OF FELIXSTOWE, UNITED KINGDOM

Field 44B: Place of Final Destination/For Transportation to …/Place of Delivery: IP1 3EE PINEWOOD, IPSWICH, UNITED KINGDOM

Field 46A: Documents Required: Full set of combined transport document issued by a shipping company marked freight collect made out to order of HSBC BANK marked notify applicant indicating that the goods have been dispatched, taken in charge or loaded on board.

The beneficiary presented a combined bill of lading with the following data:

Multimodal Bill of Lading

Field 44A: Place of Taking in Charge/Dispatch from …/Place of Receipt: RIO DE JANEIRO, BRAZIL

Port of Loading: SANTOS PORT, BRAZIL

Port of Discharge: PORT OF FELIXSTOWE, UNITED KINGDOM

Place of Final Destination: IP1 3EE PINEWOOD, IPSWICH, UNITED KINGDOM

multimodal bill of lading place of receipt discrepancy

Discrepancy: Multimodal bill of lading shows a place of receipt different than the letter of credit.

Reason for Discrepancy: A multimodal bill of lading must indicate that goods have been dispatched or taken in charge at the place stated in the letter of credit.