ICC Paper on Surrendered Bills of Lading

Excerpted from the DCW Executive Summary of the 2025 ICC Banking Commission Meeting

ICC Opinion TA949

Dealing with a Query submitted by ICC Denmark in December 2024 about surrendered bills of lading, Draft ICC Opinion TA949 generated mixed comments from ICC National Committees in advance of the February 2025 ICC Banking Commission Meeting. The term “surrender” or “surrendered” is not recognized in UCP600 or ISBP821. Citing the diversity of comments, the apparent lack of experience with surrendered B/Ls, and the impact of surrendering bills of lading, it was announced at the meeting held in Dubai that the Technical Advisory Team would postpone treatment of Draft ICC Opinion TA949 until the TA Team could seek out and consider comments from transport industry organizations.

The Technical Advisors proceeded to engage in dialogue with maritime legal, maritime technical platform, and shipping association bodies. Thereafter, a revised Draft ICC Opinion TA949 was produced and sent to ICC NCs for comment in July. Although 23 of 32 NCs responding to Draft ICC Opinion TA949rev agreed with its conclusion, the initiator of the Query chose to withdraw its Query and requested that its withdrawal be conditioned upon the topic being handled by the ICC Banking Commission as a detailed Technical Advisory Briefing instead of an Opinion and that the Briefing be given priority treatment. The Banking Commission agreed to this request and will fast-track writing a TAB on “Handling of ‘surrendered’ bills of lading under documentary credits subject to UCP 600”.

In discussing this move, one commenter pointed out that the Query’s core is about two discrepancies but that the discussion broadened to other considerations. UCP600 Article 4 is clear that contracts of carriage are separate transactions from LCs. All bills of lading are surrendered; the critical issue is where and to whom. Once surrendered, the B/L has served its purpose and all others are void. The commenter expressed regret ICC Opinion TA949rev would not be finalized and added that his NC would not be in favor of a guidance paper, i.e. a TAB, on this subject. Another NC representative agreed, saying that focus should remain on completion of the Opinion. If the Query is withdrawn, so be it, but the matter should not then be taken up as a TAB. Reiterating that surrendered B/L is not a straightforward subject under LC practice, the TA Team contends that something needs to be done on the topic and agreed with the withdraw and request for a TAB.