How do I identity all related charges in addition to freight in a shipment..??
This is a question from a reader of the blog relating to global trade and documentary credit..
My question is regarding Charges in addition to Freight.
UCP 600 Article 26(c) states that it is acceptable that a transport document bears a reference to charges additional to freight, for example, payable by the consignee (buyer)—regardless of the agreed trade terms.
There are, however, many documentary credits that will effectively modify this rule by stating: “Transport document showing charges additional to freight are not acceptable.”
ISBP 745 describes the practice in such situations stating that “An indication of charges additional to freight may be made by express reference to additional costs or by the use of trade terms which refer to costs associated with the loading or unloading of goods, such as, but not limited to, Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In and Out Stowed (FIOS).”
Thanks in advance.
There are a few questions derived from the above issue/question
- Would it be possible to identity all charges in addition to freight related to a shipment..??
- Is the shipper allowed to show charges in addition to freight on the transport document..??
- If the documentary credit issuer requires this to be shown on the transport document but the shipping line refuses, then what is the solution..??
I invite everyone (especially global trade, documentary credit and banking experts) to comment..