Module: | MODULE A: INTERNATIONAL BANKING
Q99: Consider the following statements regarding the Date of Shipment on a transport document:
Statement 1: The date of issuance of the transport document is automatically and legally considered to be the date of shipment in all circumstances.
Statement 2: If a bill of lading contains an on board notation with a specific date, that specific date will be legally deemed to be the date of shipment.
Statement 3: The determined date of shipment must strictly fall on or before the latest date of shipment stipulated in the Letter of Credit.
Statement 2: If a bill of lading contains an on board notation with a specific date, that specific date will be legally deemed to be the date of shipment.
Statement 3: The determined date of shipment must strictly fall on or before the latest date of shipment stipulated in the Letter of Credit.
✅ Correct Answer: B
The correct option is B. Only 2 and 3 are correct.
Concept Definition: The Date of Shipment is the exact calendar day when the physical transit of the goods officially begins.
This date is critical because the Letter of Credit always stipulates a deadline by which the seller must ship the goods to avoid defaulting on the contract.
Structural Breakdown: Document checkers determine the shipment date by examining the stamps, notations, and issuance dates on the bill of lading, the airway bill, or other transport documents.
Historical/Related Context: Transport documents are often printed and issued before the goods are actually hoisted onto the ship.
Therefore, standard banking rules require proof of the actual loading event, not just the printing of the receipt.
Causal Reasoning: Statement 1 is incorrect.
The date of issuance is only considered the date of shipment if there is no separate on board notation.
If an on board notation exists, it overrides the issuance date.
Statement 2 is correct because the on board notation provides the exact day the goods crossed the rail of the vessel, which the rules dictate is the true shipment date.
Statement 3 is correct.
If the determined shipment date is even one day later than the latest date of shipment allowed in the credit, the presentation is discrepant for late shipment and will be refused.
Concept Definition: The Date of Shipment is the exact calendar day when the physical transit of the goods officially begins.
This date is critical because the Letter of Credit always stipulates a deadline by which the seller must ship the goods to avoid defaulting on the contract.
Structural Breakdown: Document checkers determine the shipment date by examining the stamps, notations, and issuance dates on the bill of lading, the airway bill, or other transport documents.
Historical/Related Context: Transport documents are often printed and issued before the goods are actually hoisted onto the ship.
Therefore, standard banking rules require proof of the actual loading event, not just the printing of the receipt.
Causal Reasoning: Statement 1 is incorrect.
The date of issuance is only considered the date of shipment if there is no separate on board notation.
If an on board notation exists, it overrides the issuance date.
Statement 2 is correct because the on board notation provides the exact day the goods crossed the rail of the vessel, which the rules dictate is the true shipment date.
Statement 3 is correct.
If the determined shipment date is even one day later than the latest date of shipment allowed in the credit, the presentation is discrepant for late shipment and will be refused.