Is a house bill of lading acceptable under a letter of credit without specific authorization?

A house bill of lading is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) that acts as a receipt for the goods and a contract for carriage. However, in the context of letters of credit, particularly when it comes to international trade, the stipulations regarding acceptable shipping documents are typically stringent.

For a letter of credit to be honored, the documents presented must match the specific conditions set forth in the credit itself. Generally, letters of credit require an original bill of lading issued by the shipping line or carrier. A house bill of lading does not fulfill this requirement as it is not directly issued by the ocean carrier responsible for the transport of the goods.

Moreover, if the letter of credit specifically states that only a straight bill of lading or an original bill of lading from a designated carrier is acceptable, then presenting a house bill of lading would not comply with the terms of the letter of credit, leading to denial of payment. Thus, without explicit authorization within the letter of credit to accept a house bill of lading, it is not deemed acceptable.