Blog

Understanding Article 25 of UCP 600: Courier, Post, or Certificate of Posting

Not all goods in international trade move in containers or by sea/air. Many exporters — especially for documents, samples, or small-value shipments — rely on courier services or postal systems. Article 25 of UCP 600 sets the rules for when courier receipts, post receipts, or certificates of posting are acceptable under a Letter of Credit (LC).

This article ensures such simple shipment evidence is standardized and recognized by banks.

What Does Article 25 of UCP 600 Say?

A valid courier/postal shipment document must:

1. Evidence of Dispatch

  • Must appear to have been stamped or otherwise marked to indicate receipt of goods for dispatch.
  • The date of issuance = the shipment date, unless another dispatch date is stated.

2. Issuer & Signature

  • Must be issued and signed (if applicable) by:
    • The courier company,
    • The postal authority, or
    • Their authorized agent.

3. Place of Dispatch & Destination

  • Must show both:
    • The place of dispatch (as per LC), and
    • The destination required in the credit.

4. Consignee Details

  • Must show the name of the consignee (often the applicant/buyer).

5. Non-Negotiable Nature

  • These are always non-negotiable — they do not represent ownership of goods.

Breaking Down Article 25

Why This Matters?

  • Expands LC coverage to small parcels and documents.
  • Particularly important for:
    ✔ Document transmission (e.g., legal contracts, certificates).
    ✔ High-value but lightweight items (e.g., jewelry, electronics, samples).

Exporter’s Responsibility

  • Ensure the courier receipt/post receipt clearly states:
    ✔ Date of dispatch.
    ✔ Place of dispatch and place of delivery.
    ✔ Correct consignee name.

Bank’s Role

  • Banks only examine the face of the document.
  • They do not verify the reliability of the courier or postal authority.

Practical Trade Example

A Bangladeshi exporter sends legal documents and small product samples to a buyer in Germany under an LC requiring a courier receipt.

Presented document:

  • Issued by DHL Express.
  • Stamped with date: 5 October 2025.
  • Place of dispatch: Dhaka, Bangladesh.
  • Destination: Berlin, Germany.
  • Consignee: Buyer’s name as per LC.

✔ Bank accepts it under Article 25.

❌ If the receipt lacked the consignee’s name or destination, it would be a discrepancy.

Why Article 25 Matters

  • Provides a framework for courier and postal shipments under LCs.
  • Reduces ambiguity by standardizing requirements for small, non-traditional shipments.
  • Protects exporters by ensuring their courier/postal evidence is recognized in international trade finance.
  • Supports growing e-commerce and sample-based trade where courier services are essential.

Final Thoughts

Article 25 of UCP 600 highlights that international trade is not limited to bulk cargo — even small packages and documents sent by courier or post can be part of LC transactions. By defining the standards for courier receipts and certificates of posting, UCP ensures exporters and banks have a clear, uniform basis for handling such shipments.

Leave a Reply