Is ON BOARD CERTIFICATE required for LC negotiation

Is ON BOARD CERTIFICATE required for LC negotiation copy

Is ON BOARD CERTIFICATE required for LC Negotiation?


‘On Board Certificate’ is a common term used by exporters and importers especially in the area of handling Letter of Credit.


What is On Board Certificate? Why does Exporter require ON BOARD CERTIFICATE? Who issues On Board Certificate? When is ON BOARD CERTIFICATE issued?


What is On Board Certificate?



Normally ON BOARD CERTIFICATE in shipping trade means the certificate issued by a carrier of goods once after shipment gone on board the vessel. Once after completion of export customs formalities, the cargo is handed over by the exporter to shipping carrier of goods. If the goods shipped out from an inland destination at a CFS or ICD situated away from sea port of loading, the cargo is moved either by rail or by road to port of loading after necessary customs formalities at CFS or ICD. Once after arrival of a vessel at load port, the container carrying the exporter’s goods are loaded in to vessel at a port terminal point. Once after movement of such container to the Vessel, the shipping carrier or his agent confirms that the goods gone on board the vessel.


After necessary confirmation by shipping carrier on ‘ON BOARD’ of goods at load port, he issue a certificate called ON BOARD CERTIFICATE.


What are the contents of an ON BOARD CERTIFICATE?


The ON BOARD CERTIFICATE contains the details of goods gone ON BOARD. These details contain BL number, container number, name of feeder vessel if any, name of mother vessel, date of on board, Expected time of Departure of vessel, expected time of arrival at transshipment port if any, ETD from Transshipment port, ETA at destination port etc.etc.


Importance of issuing an ON BOARD CERTIFICATE.


There could be many reasons behind issuing an On Board Certificate. If a payment term agreed in an export business contract is on the basis of shipping goods ON BOARD, the seller of goods receives payment from buyer based on the ON BOARD CERTIFICATE. Immediately up on goods gone ON BAORD the vessel, the exporter confirms on such ON BOARD by intimating electronically to the importer with a proof of certificate – ON BOARD CERTIFICATE – issued by the Carrier of Goods.


In Letter of Credit business transactions, one of the conditions of LC could be the requirement of ON BOARD CERTIFICATE. This condition is common in an export business transactions where in Letter of Credit is involved. In such cases, the exporter encloses ON BOARD CERTIFICATE issued by the shipping carrier once exported goods gone on board the vessel.


I hope, I could satisfy you on this subject about ON BOARD CERTIFICATE.


Would you like to share your experience in the field of ON BOARD CERTIFICATE.


The above information is a part of Import Export Training online


Comment below your thoughts about ON BOARD CERTIFICATE.

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Baliarsingh Ayodhyanath: This is important lesson i learn

davis fleming: I received a "clean on board B/L" from a carrier. This was a requirement for our letter of credit. When the goods arrived at destination port, they were not what we had been told they were. Upon investigation, we realized that the carrier (shipping line) had given and dated the B/L within the time frame specified for last date of shipment of the goods per our letter of credit but the actual vessel that the goods were carried on was not in port for another 10 days so the containers had sat around for 10 days at port where they were interfered with. My question is; does the carrier have liability for the stolen goods or at least for the recovery of the value of the L/C? Interested to hear your thoughts. thanks

subhash Arjun Marathe: Please provide the LC, Bank guarantee, import, export ,trade, finance, accounting, computer, SAP details,

RADHA KRISHNA: is foreign letter of credit can be acceptable in Indian currency, legally? if any problems arise please let me know, can i proceed work through that?

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