• Journal of Arbitration Studies
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• v.28 no.4
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• pp.153-172
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• 2018

In solving international commercial disputes, arbitration has a unique advantage. Therefore, when most parties sign a charter party, they contain arbitration clauses. Whether the arbitration clause in the charter party can be effectively incorporated into the bill of lading and bind to the third party-bill holder becomes an important issue. Based on the problem above, this paper compares the arbitration system between Korea and China, and discusses the composition of the Chinese Maritime Court and the Chinese court's adjudication of arbitration for foreign countries, which are recognized and enforced in China. What is most important in this study is observing the Chinese case from the beginning of 2000 to the present in order to rule whether the Chinese court can effectively incorporate the arbitration clause in the charter party into the bill of lading, as well as whether it constitutes an effective binding force for third parties and changes in standard of recognition. Finally, through comparative analysis, the study concludes that in China, the arbitration clause in the charter party can be effectively incorporated into the bill of lading, and that the conditions for the third parties can be effectively restrained. There must be several points to be noted when recording the bill of lading. This would then help reduce the legal risks and promote the sustainable development of international transactions.

• Journal of Arbitration Studies
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• v.31 no.1
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• pp.23-54
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• 2021

While maritime arbitration industry has not been prevalent in Korea, Korea ranked fifth in terms of export volume and its shipbuilding industry ranked top globally in shipbuilding order volume in 2020. The discrepancy between the maritime industry's productivity and relative lack of maritime arbitration has had a negative impact on Korea's economic development. To address these problems, this paper i) reviews preceding research, ii) examines the Korean maritime arbitration system's status and analyzes the KCAB's maritime arbitration statistics from 2005-2020, iii) examines major foreign maritime arbitration institutions' status and strategies including LMAA, SMA, SCMA, and HKMAG, and lastly iv) suggests practical ways to promote maritime arbitration in Korea. The Suggestions for promoting maritime arbitration are 1) to prepare and promote various maritime standardized forms for the Korean shipping industry, 2) to insert an arbitration clause in medium and large-size Korean shipping firms' B/L clause, 3) to expand professional maritime manpower training and other infrastructure, and 4) to enhance the predictability of the result of arbitration through maritime arbitral awards or by examining the feasibility of the appeal system against the arbitral award only on a point of law in the future. In conclusion, the success or failure of promoting maritime arbitration in Korea depends on the will, passion, cooperation and practice of the most important key players in maritime arbitration, such as the Asia Pacific Maritime Arbitration Center (APMAC), the Korean Commercial Arbitration Board (KCAB) and the Seoul Maritime Arbitrators Association (SMAA).

• Korea Trade Review
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• v.46 no.6
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• pp.93-107
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• 2021

The bill of lading serves to link imports and exports. It is the last document issued in the export process and is the most important document before import and export as it is the first document required for importers to take over goods. Transfer the right to the goods to be transported to another person through endorsement. The role and importance of the bill of lading has already been suggested in many previous studies and the trading partners are fully aware of it. In addition, all countries and international organizations recognized the importance and enacted various laws and systems in relation to possible legal problems and they have become customary in practice. However, trade fraud that exploits the characteristics of the bill of lading may occur. In order to solve this problem, various attempts related to the electronic rights transfer of the bill of lading began to be carried out, and many institutions and companies are still trying to develop a new system. As a result of these efforts, electronic bills of lading, such as bolero, appeared, and electronic bills of lading, which can transfer rights in an electronic way, appeared. Therefore, this study intends to present the feasibility of the introduction of smart bills of lading after examining the current status of electronic bills of lading and the introduction of block chain technology-based bills of lading.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.51
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• pp.317-358
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• 2011

The purpose of this study aims to analyse the key differences of the sea waybill and electronic B/L in the international transport documents. Sea waybills look remarkably like ordinary bills of lading. Indeed, in two important ways, they are just like bills of lading: the front of the document will near a description of the quantity and apparent condition of the goods; and the back of the document provides evidence of the terms of the contract of carriage. They differ from bills of lading in that, far from indicating that the goods described are deliverable to the order of the shipper or of the consignee, they will make it explicit that the goods are deliverable only to the consignee. Again, different carries will do thai in a variety of ways. For example, the document may call itself non-negotiable, omitting the word order from the consignee box on the front of the document, and stating explicitly that the goods will be deliverable to the consignee or his authorised representative on proper proof of identity and authorisation. The Hague-Visby Rules and Hamburg Rules give no guidance as to any right to instruct the carrier in respect of goods while they are in transit. However, in applying Article 50 of the Rotterdam Rules, in particular when applying it in the context of seawaybills, straight bills of lading or ship's delivery orders, regard would need to be had to preserve the shipper's rights under any of those three documents even after the buyer of goods covered by them has acquired rights of its own. And, the right of control is defined at Article 1.12 of the Rotterdam Rules. The right to give instruction is further limited by the terms of Article 50.1 to three particular types of instruction in respect of the goods, relating broadly to the goods, their delivery en route, and the identity of the consignee. And, the CMI formulated the CMI Uniform Rules for Sea Waybills for voluntary incorporation into any contract of carriage covered by such a document. Recognising that neither the Hague nor the Hague-Visby Rules are applicable to sea waybills, the CMI Rules provide that a contract of carriage covered by a waybill shall be governed by whichever international or national law, if any, would have been compulsorily applicable if the contract had in fact been covered by a bill of lading or similar document of title.

• International Commerce and Information Review
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• v.15 no.2
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• pp.429-455
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• 2013

This paper investigates the extent and scope of electronization of Letter of Credit and examines the obstacles in the course of electronization of Letter of Credit. For this purpose, this paper adopts two track methodologies. First, we study the electronization of Letter of Credit in the macro perspective. It means that we analyze the scope and the extent of electronization of electronic Letter of Credit in the national economy as a whole. Second, we utilize the case study approach to examine the electronization of Letter of Credit in micro perspective. In other words we examine individual commercial banks in Korea. For this purpose, we analyze the data from two commercial banks out of four largest domestic banks in Korea. For example, we select two commercial banks in Korea and ask current status of electronization of Letter of Credit, i.e, the utilization of EDI L/C, e-L/C, and e-B/L. A major finding of our study is that the extent of electronization is not negligible in micro perspective as well as in macro perspective. In micro perspective, two commercial banks utilize EDI letter of credit in a critical sense. On the other hand, they seldom uses e-L/C and e-B/L in international transaction. This study shows that major bottlenecks for the electronization of Letter of Credit are pessimistic perception of SME entrepreneurs toward the electronization of Letter of Credit and the high costs of system building. We conclude that unlike superficial perception, there is a considerable progress toward the electronization of Letter of Credit in micro perspective.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.65
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• pp.95-116
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• 2015

So far several attempts have been made to digitalizing sea transport documents. Three notable examples are SeaDocs, Bolero, e-B/L Korea and Ess-Databridge. Ess-Databridge was established in 2003, with the aim of promoting the use of electronic alternative to shipping documents. The ESS-Databridge system was piloted from 2005 and went live in January 2010. The ESS-Databridge operates under a private legal outline, the Databridge Services and Users Agreement (DSUA). In the Ess-Databridge system, only the user who is in control of the original bill of lading will be able to indorse it on to another user. Once the indorsement is effected and unless the indorsee decide store turn the documents, the indorser loses control and retains access only to an electronic document marked 'copy' for its records. A feature that appears to have been crucial to the success of the CargoDocs service is that visually, e-B/Ls produced using ESS-Databridge appear identical to the paper documents. The ESS-Databridge may be even more successful if the legislators take certain steps that will increase uniformity and certainty in electronic transport documentation.

• International Commerce and Information Review
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• v.15 no.2
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• pp.261-283
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• 2013

ISBP745 has new provisions about sea waybill, road, rail or inland waterway transport documents which ISBP681 did not have provisions about. The main revisions of ISBP745 which were not existent or different from ICC Opinion are as follows: First, where B/L is required when multimodal transport is used as a modes of transport, the revisions stipulates that it is subject to UCP600 article19. this differs from previous ICC Opinion. Second, when a credit requires a transport document to indicate the name, address and contact details of a delivery agent, for the place of final destination or port of discharge, the address need not be one that is located at the place of destination or port of discharge or within the same country as that of the place of destination or port of discharge. Third, in case there exist a number of shippers and a consignee, multiple transport documents are issued. This rule has a clear stipulation on this case. Transport industry regards the indication of "LCL/FCL" or "CFS/CY" common in this case as that requiring multiple transport documents. However, ISBP745 does not regard it the case as that requiring multiple transport documents. This may cause some confusion in examination of documents. Forth, when partial shipment is allowed, and more than one set of original transport documents are presented as part of a single presentation made under one covering schedule and incorporate different dates of shipment, the earliest of these dates is to be used of the calculation of an presentation period.

• International Commerce and Information Review
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• v.18 no.2
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• pp.53-82
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• 2016

This article begins that previous literatures of South Korea's paperless trade differ from those of other developed countries' paperless trade. Some scholars in South Korea have studied on the relevance of documentary credit in the paperless trade and operability of electronic documentary credit. But Some other scholars in other developed countries have studied about e-customs and e-air logistics. As a result, The current situation of South Korea's paperless trade differs from that of other developed countries' paperless trade. The South Korea's paperless trade has tried to achieve the operation of electronic documentary credit as well as e-customs through the establishment of Korea Trade Network(KTNET) and Customs service's Single Window known as Uni-pass. and other developed countries's paperless trade has made an effort to develop an e-customs and e-air logistics through customs service's Single Window. So, this article describes the current status and characteristics of South Korea's paperless trade and next, this article aims to find out the obstacles and countermeasures in the operation of South Korea's paperless trade. Therefore this paper provides a clear understanding of the problems and solutions associated with South Korea's paperless trade.

• International Commerce and Information Review
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• v.19 no.2
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• pp.145-166
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• 2017

The FTA conventional tariffs shall be applied that the imported goods are subject to the conventional tariffs under any agreement, and the origin of the good is the contracting state in accordance with the criteria for determination origin under any agreement. An importer who intends to be eligible for the application of a conventional tariff shall file a request for the application of a conventional tariff with the head of the competent customs house before the relevant import declaration is accepted. The purpose of this study is to examine the legal standard and verification cases for the judgement of the tax tribunal of FTA conventional tariffs. Through this study, this paper is to provide several implications for companies seeking the benefits of FTA conventional tariffs. The Korean companies to do the following: confirm the effective requirements for direct transport of goods through non-parties under the Korea EU FTA, confirm the criterion for application of conventional tariffs such as certificate of origin and claims for ex post facto conventional tariffs under the Korea US FTA, confirm the issuer of origin declaration and the recognition of origin declaration of bill of lading under the Korea EU FTA, utilize the tax appeal system by denial of FTA conventional tariffs, and prepare the discrepancies in interpretation of legal standard under FTA and FTA Special Customs Act.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.37
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• pp.187-216
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• 2008

Risk regarding the possibility of loss can be especially problematic. If a loss is certain to occur, it may be planned for in advance and treated as a definite, known expense. It is when there is uncertainty about the occurrence of a loss that risk becomes an important problem. The word risk is often used in connection with insurance. No one generally accepted definition of risk exists, however. Of the many definitions, two distinctive ones are commonly used. One defines risk as the variation in possible outcomes of an event based on chance. That is, the greater the number of different outcomes that may occur, the greater the risk. Another way of expressing this concept is to state: The greater the variation around an average expected loss, the greater the risk. The second definition of risk is the uncertainty concerning a possible loss. The definition of risk as a useful one because it focuses attention on the degree of risk in given situations. The degree of risk is a measure of the accuracy with which the outcome of an event based on chance can be predicted. For now, it will serve our purpose to note the more accurate the prediction of the outcome of an event based on chance, the lower the degree of risk. After sources of risks are identified and measured, a decision can be made as to how the risk should be handled. A pure risk that is not identified does not disappear, the business merely loses the opportunity to consciously decide on the best technique for dealing with that risk. The process used to systematically manage risk exposures is known as risk management. Some persons use the term risk management only in connection with businesses, and often the term refers only to the management of pure risks. In this sense, the traditional risk management goal has been to minimize the cost of pure risk to the company. But as firms broaden the ways that they view and manage many different types of risk, the need for new terminology has become apparent. The terms integrated risk management and enterprise risk management reflect the intent to manage all forms of risk, regardless of type. International trade transaction is called between countries has features of globalism, cultural gap, long distance and long terms for the transaction. It is riskier than domestic transaction has its specific risks, such as foreign exchange risk and political risk, and requires various active risk management skills. Risks in relation to the international trade transaction are the contract risk, transit risk and payment risk, etc. The risk management in relation to the international trade transaction is to identify and measure these risks. The purpose of this study is to analyse the practical problems and its solution plan by analyzing various cases related to the risk management of bill of lading in the international trade transaction.