UCP 600 Article 20: Bills of Lading Originals & Full Sets

In: Documentary-Credit, Trade-Finance

Demystifying UCP 600 Article 20: Bills of Lading

Demystifying UCP 600 Article 20

Your essential guide to presenting original Bills of Lading (B/L) correctly in documentary credits. Avoid costly delays by understanding the rules for originals and full sets.

keyKey Thesis Idea

Under UCP 600 Article 20, a Bill of Lading presentation is compliant only if it provides the exact number of originals indicated on the B/L itself—whether it's a single original or the complete "full set". Precision is not optional; it's mandatory.

receipt_longWhat is a Bill of Lading (B/L)?

A Bill of Lading is one of the most vital documents in international trade, especially for sea shipments. It serves three critical functions:

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Contract of Carriage: It's the legal agreement between the shipper and the carrier.
inventory_2
Receipt of Goods: It confirms the carrier has received the goods in good order.
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Document of Title: It grants the holder the right to claim the goods. This is why originality is so crucial.

ruleDecoding the Rule: Article 20(a)(iv)

This sub-article is the core of the requirement. It states a B/L must be:

looks_oneThe Sole Original

If the B/L says: "Issued in 1 original".

You must present: That one single original document.

filter_3The Full Set

If the B/L says: "Issued in 3 originals".

You must present: All three of those original documents.

The number of originals presented must always match the number stated on the Bill of Lading itself.

verifiedWhat Makes a Document "Original"? (Article 17)

UCP 600 provides clear guidance on what banks consider an original document to prevent disputes:

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It bears an apparently original signature, mark, stamp, or label from the issuer.
description
It appears to be on the issuer's original stationery.
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It explicitly states it is an "Original", unless that statement is clearly not applicable.

Actionable Tip: A document printed from a computer onto company letterhead and signed is considered an original. The focus is on the final appearance and intent, not just the method of creation.

checklistPractical Examples: Compliant vs. Discrepant

check_circleCompliant

LC Requires: "Full set of original bills of lading".

B/L States: "Issued in 3 originals".

Presented: All 3 original B/Ls.

Result: PASS. The presentation matches the B/L's own statement.

cancelDiscrepant

LC Requires: "Full set of original bills of lading".

B/L States: "Issued in 3 originals".

Presented: Only 2 of the 3 originals.

Result: FAIL. The full set was not presented as required by Article 20(a)(iv).

flagKey Takeaway

In documentary credits, details matter. The rule for original Bills of Lading under UCP 600 Article 20 is absolute: what you present must perfectly match what the document claims to be. Double-check every B/L to ensure the number of originals is clearly stated and that you present the complete set required. This simple check can save you from significant delays and financial risk.