WHERE A MMTD CANNOT BE ISSUED IN NEGOTIABLE FORM

QUESTION

If an MTD indicates the final leg to THE COUNTRY OF IMPORT be non-marine, the MTD cannot be issued in negotiable form nor be deemed to be a "document of title".

Example : Land [ country ''A'' of seller ] + sea [port of loading of country ''A'' to port of discharge at another country ''B''] + air [ Air port of departure of country ''B'' to airport of destination to country of import ''C''] + Land [ from air port of country ''C'' to warehouse of Buyer], the goods covered under MMTD will be paid to the consignee, and it can not be issued in a negotiable form and hence is not a document of title .

Pl clarify if the above is correct ?

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ANSWER

Dear S.K,

I find it hard to be convinced by the statement that if an MMTD indicates the final leg to THE COUNTRY OF IMPORT be non-marine, the MMTD cannot be issued in negotiable form nor be deemed to be a "document of title".

In multimodal transport, the carrier undertakes to perform and/or in his own name to procure performance of the carriage from the inland place of receipt or the port of loading, whichever is applicable, to the port of discharge or the inland place of delivery, whichever is applicable.

Whether a MMTD is issued in negotiable form or non-negotiable form depends on the consignor’s option or request. If a MMTD is required in the LC, it will be issued in accordance with the LC requirement, i.e., “to order”, “to the order of a named entity” or “consigned to a named person”.

What makes me a bit confused is that in your example the inland place of delivery is the buyer’s warehouse. However, this cannot prevent me from thinking that a MMTD can be issued in negotiable form irrespective of whether the last leg of the journey is by road or rail.

Kind regards,
Nguyen Huu Duc