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Understanding Article 31 of UCP 600: Partial Drawings or Shipments

In international trade, shipments may not always move in one batch. Exporters often dispatch goods in multiple lots or invoices due to production schedules, transport availability, or cost efficiency. Article 31 of UCP 600 provides rules for handling partial drawings and shipments under a Letter of Credit (LC).

It sets clarity on when multiple shipments are acceptable and how banks should treat them.

đź“– What Does Article 31 of UCP 600 Say?

1. Partial Drawings Allowed Unless Prohibited

  • By default, partial drawings or shipments are permitted unless the LC explicitly prohibits them.

2. Same Means of Conveyance

  • If goods are loaded on the same vessel, aircraft, or truck, and shipped on the same day but covered by multiple sets of transport documents, this is not considered partial shipment.

3. Different Conveyances

  • If goods are shipped on different vessels, aircraft, or trucks, even if on the same day, this is considered partial shipment.

4. Courier or Postal Shipments

  • Multiple courier receipts or post receipts issued on the same day to the same destination are not considered partial shipment.

🔎 Breaking Down Article 31

Why This Matters?

  • Avoids disputes when shipments are split for logistical reasons.
  • Protects exporters from rejection when goods are shipped in multiple packages but under one arrangement.
  • Gives importers control by allowing them to prohibit partial shipments if needed.

Exporter’s Responsibility

âś” Check if LC prohibits partial shipment.
✔ Coordinate dispatches carefully — if goods move on separate vessels/aircraft, it may count as partial shipment.
âś” Ensure documents clearly indicate shipment details.

Bank’s Role

  • Banks examine whether presented documents fall within LC terms.
  • They must determine if multiple documents represent a single shipment or a partial shipment.
  • Banks do not assess the commercial reasons behind splitting.

🌍 Practical Trade Examples

Scenario 1: Multiple Bills of Lading, Same Vessel

  • LC allows shipment of 500 MT of wheat.
  • Exporter loads full 500 MT on the same vessel on 10 October, but carrier issues 3 bills of lading.
    âś” Not a partial shipment.

Scenario 2: Different Vessels, Same Day

  • Exporter ships goods from Singapore to Hamburg on two different vessels, both dated 15 November.
    ❌ Considered partial shipment.

Scenario 3: Courier Shipments

  • Exporter sends documents under LC via DHL, with 3 receipts issued on 20 September, all destined to London.
    âś” Not a partial shipment.

Scenario 4: LC Prohibits Partial Shipments

  • LC says “partial shipments not allowed.”
  • Exporter ships half the goods on 5 December and the rest on 10 December.
    ❌ Discrepancy — not acceptable.

âś… Why Article 31 Matters

  • Provides certainty for exporters, importers, and banks.
  • Encourages flexibility in logistics while maintaining LC integrity.
  • Helps exporters avoid rejection for technicalities in documentation.
  • Protects importers who need goods in one complete batch.

✍️ Final Thoughts

Article 31 of UCP 600 is all about defining when a shipment is “partial.” By default, partial shipments are allowed unless restricted in the LC. The article provides clarity in cases of multiple documents, different carriers, and courier dispatches, reducing disputes and ensuring smooth execution of international trade.

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