Does Air Waybill Satisfy “Any Airport in China” LC Requirement?

In a recent discussion, US west coast bankers considered a Commercial Export LC indicating in SWIFT Field 44F: “Port of Discharge – Any Airport in China” for which the beneficiary presented an air waybill showing in the Airport of Destination box: “AIRPORT IN CHINA (HONG KONG)”.

Views were initially divided among participants as to whether the document is compliant. ICC Opinion TA770rev2 (April 2013) was then mentioned which had determined that where a credit required shipment to “Any Chinese Port” in the context of examining documents on their face based on UCP600 sub-article 14(a), this would include Hong Kong being shown as the port of discharge.

The Opinion went on to state that “a credit should specifically indicate where shipment is only to be effected from or to a port in Chinese Mainland. … Otherwise, banks will be required to honor or negotiate documents that indicate shipment from or to Hong Kong, even though the expectation under the contract and the credit may have been for the use of a port of loading (or discharge) in Chinese Mainland.”

One commenter also called attention to ISBP745 (2013) Paragraph H11 which adds clarity to how UCP600 Article 23 (Air Transport Document) is to be interpreted and applied.