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UCP 600 Article 26 to 30

UCP 600 Article 26 to 30

Article 26

On Deck, Shipper’s Load and Count, Said by Shipper to Contain and Charges Additional to Freight

  1. A transport document must not indicate that the goods are or will be loaded on deck. A clause on a transport document stating that the goods may be loaded on deck is acceptable.
  2. A transport document bearing a clause such as shipper’s load and count and said by shipper to contain is acceptable.
  3. A transport document may bear a reference, by stamp or otherwise, to charges additional to the freight.

Article 27

Clean Transport Document

A bank will only accept a clean transport document. A clean transport document is one bearing no clause or notation expressly declaring a defective condition of the goods or their packaging. The word clean need not appear on a transport document, even if a credit has a requirement for that transport document to be clean on board.

Article 28

Insurance Document and Coverage

  1. a. An insurance document, such as an insurance policy, an insurance certificate or a declaration under an open cover, must appear to be issued and signed by an insurance company, an underwriter or their agents or their proxies.Any signature by an agent or proxy must indicate whether the agent or proxy has signed for or on behalf of the insurance company or underwriter.
  2. When the insurance document indicates that it has been issued in more than one original, all originals must be presented.
  3. Cover notes will not be accepted.
  4. An insurance policy is acceptable in lieu of an insurance certificate or a declaration under an open cover.
  5. The date of the insurance document must be no later than the date of shipment, unless it appears from the insurance document that the cover is effective from a date not later than the date of shipment.
    1. The insurance document must indicate the amount of insurance coverage and be in the same currency as the credit.
    2. A requirement in the credit for insurance coverage to be for a percentage of the value of the goods, of the invoice value or similar is deemed to be the minimum amount of coverage required.If there is no indication in the credit of the insurance coverage required, the amount of insurance coverage must be at least 110% of the CIF or CIP value of the goods.When the CIF or CIP value cannot be determined from the documents, the amount of insurance coverage must be calculated on the basis of the amount for which honour or negotiation is requested or the gross value of the goods as shown on the invoice, whichever is greater.
    3. The insurance document must indicate that risks are covered at least between the place of taking in charge or shipment and the place of discharge or final destination as stated in the credit.
  6. A credit should state the type of insurance required and, if any, the additional risks to be covered. An insurance document will be accepted without regard to any risks that are not covered if the credit uses imprecise terms such as usual risks or customary risks.
  7. When a credit requires insurance against all risks and an insurance document is presented containing any all risks notation or clause, whether or not bearing the heading all risks, the insurance document will be accepted without regard to any risks stated to be excluded.
  8. An insurance document may contain reference to any exclusion clause.
  9. An insurance document may indicate that the cover is subject to a franchise or excess (deductible).

Article 29

Expiry Date

  1. If the expiry date of a credit or the last day for presentation falls on a day when the bank to which presentation is to be made is closed for reasons other than those referred to in article 36, the expiry date or the last day for presentation, as the case may be, will be extended to the first following banking day.
  2. If presentation is made on the first following banking day, a nominated bank must provide the issuing bank or confirming bank with a statement on its covering schedule that the presentation was made within the time limits extended in accordance with sub-article 29 (a).
  3. The latest date for shipment will not be extended as a result of sub-article 29 (a).

Article 30

Tolerance in Credit Amount, Quantity and Unit Prices

  1. The words about or approximately used in connection with the amount of the credit or the quantity or the unit price stated in the credit are to be construed as allowing a tolerance not to exceed 10% more or 10% less than the amount, the quantity or the unit price to which they refer.
  2. A tolerance not to exceed 5% more or 5% less than the quantity of the goods is allowed, provided the credit does not state the quantity in terms of a stipulated number of packing units or individual items and the total amount of the drawings does not exceed the amount of the credit.
  3. Even when partial shipments are not allowed, a tolerance not to exceed 5% less than the amount of the credit is allowed, provided that the quantity of the goods, if stated in the credit, is shipped in full and a unit price, if stated in the credit, is not reduced or that sub-article 30 (b) is not applicable. This tolerance does not apply when the credit stipulates a specific tolerance or uses the expressions referred to in sub-article 30 (a).

UCP 600 Article 26 to 30

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