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For discussion and approval at the ICC Banking Commission meeting on 17 February 2025.

TA.949

A documentary credit, subject to UCP 600, required presentation of one copy of "Surrendered B/L". 

Three original bills of lading were presented stating, below the description of goods, "Original Bill Surrendered at Origin".

The presentation was refused on the basis of two discrepancies:

1. Surrendered bill of lading not presented in copy (but 3/3 originals)
2. The surrendered bill of lading does not contain a surrendered stamp

Three questions were raised:

• In the event that a credit requires one copy of surrendered bill of lading, does this mean that a copy, as opposed to an original, must be presented?
• Should the presented bill of lading be stamped "Surrendered" or can the wording "surrendered" (or similar) be printed on the bill of lading?
• Are the discrepancies valid?

The draft opinion highlights that the terms "surrender" or "surrendered" are not in common usage in respect of documents presented under documentary credits, and any definition or interpretation is likely to be legalistic rather than aligning with international standard banking practice.   

It further states that when a bank issues a credit permitting or requiring surrender bills of lading, the credit must include clear instructions on how the surrender of the original bills of lading should be documented on the copy provided to the shipper for presentation under the credit.

Once this Opinion has been finalised, we will provide you with the outcome. 

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