Uniform Commercial Code

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UCP600 and USA Uniform Commercial Code have specific provisions about each controversial issue of transferable letter of credit. For instance, unless otherwise agreed at the time of transfer, all charges (such as commissions, fees, costs or expenses) incurred in respect of a transfer must be paid by the first beneficiary. UCP also gives explanation regarding the payment to the first beneficiary and the second beneficiary. Accordingly, the first beneficiary has the right to substitute its own invoice and draft, if any, for those of a second beneficiary for an amount not in excess of that stipulated in the credit and upon such substitution the first beneficiary can draw under the credit for the difference, if any, between its invoice and the …show more content…
The code also provide that a credit is only transferable on the express order of the bank opening the credit and transferable once only, unless otherwise provided. But unlike the UCP and the USA uniform commercial code, Ethiopian commercial code does not provide a clue about rights and responsibilities of the buyer, the issuing bank, transferee and transferor. So, it is difficult to resolve controversial issues about transferable letter of credit based on the current Ethiopian law on documentary credit.
3.6.6 Back-to-Back Letter of …show more content…
It is a non-negotiable document. The second is Order Bill Of Lading which is one that is written “to order” or to order of a named party making the instrument negotiable by endorsement. Letters of credit usually call for an order bill of lading blank endorsed; meaning the holder of the bill of lading has title to the goods.
Given that each bill of lading must be either “straight” or “order”, the following is a list of more common types of bill of lading:
 An Ocean Bill Of Lading is one issued by an ocean carrier in sets, usually three signed originals comprising a complete set, any one of which gives title to the goods.
 A Charter Party Bill Of Lading is one which shippers may, when large or bulk cargoes are concerned, lease the carrying vessel for a stated time or specific voyage under a charter party contract with the owner. Goods carried are then covered under a form of bill of lading issued by the charterer and indicate as being shipped, subject to the term and conditions of the charter party. Charter party bills of lading are not acceptable unless specifically authorized by the letter of
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