Partial Shipment Not Allowed

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📖 Detailed Explanation

Partial Shipment Not Allowed is a common shipping clause in international trade contracts, meaning the seller must ship the entire quantity of goods in a single shipment and may not split the shipment into multiple batches. This term is usually used in conjunction with a letter of credit (L/C). If the L/C stipulates 'Partial Shipment Not Allowed,' the beneficiary must present a complete set of documents in one presentation; otherwise, the bank may refuse payment. It is commonly used when the quantity of goods is small enough to be shipped in one lot, or when the buyer wants to receive all goods as soon as possible to avoid the trouble of multiple customs clearances and administration. Cautions: the seller must ensure sufficient shipping space and that all goods are ready within the shipment period, or it may constitute a breach; if a single shipment is practically impossible, the seller should negotiate with the buyer in advance to amend the L/C. Compared with 'Partial Shipment Allowed,' the former imposes stricter constraints on the seller but simplifies the buyer's receipt process. In addition, under UCP600, even if partial shipment is not expressly prohibited, if the L/C does not state that partial shipment is allowed, it is deemed allowed; therefore, the prohibition must be expressly written to be effective.

📝 Examples

1. Partial shipment is not allowed for the goods under this contract, and the seller must ship the entire 1,000 metric tons of steel in one lot on or before June 30, 2025. (Note: The contract expressly prohibits partial shipment, so the seller must ship all goods in a single shipment.) 2. The L/C stipulated 'Partial Shipment Not Allowed,' but the seller could only ship in two batches due to production delays, resulting in the bank's refusal to pay; ultimately, the parties negotiated to amend the L/C to allow partial shipment. (Note: This shows the consequences of violating a partial shipment prohibition clause and the solution.)

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