F43P is an optional field in a Letter of Credit.
This field specifies whether the partial shipment is to be allowed or not in this letter of credit. A consignment can be shipped in a single consignment or the shipment can be split into various consignments.
This decision depends upon the mutual agreement between buyer and seller. If the buyer/Applicant accepts partial shipment, then the seller/beneficiary has the chance to make shipment in two or three or more consignments.
The seller can send some quantity from the total quantity mentioned in LC, and send the remaining quantity later but within the “Latest shipment date” mentioned in the LC.
There may be many reasons to accept the partial shipment by both buyer and seller.
Suppose the seller needs a longer time for the production of the total order quantity, in that case, the seller can make the shipment smaller quantity to meet the demand of the buyer.
Sometimes the vessel may don’t have enough space, so the seller can’t make a full shipment. There may be various reasons to allow Partial shipment.
Partial shipment allowed doesn’t mean that the shipment has to be always partial but this is just an option given to the seller in case it happens, it does not create any discrepancy in the LC.
Let’s see an example:
Suppose there’s an order of 1000MT steel @ 1000 USD per MT. The total LC value is 1000,000 USD.
The seller is from Japan.
If the Partial shipment is allowed, the seller can make 1st shipment of 500MT valued at 500,000 USD.
In the 2nd shipment, he can send 500MT valued at 500,000 USD.
The seller has to submit complying documents for each shipment within the Period of Presentation mentioned in the LC.
Separate bill of exchange, Commercial invoices, and other documents have to be submitted.
According to UCP600:
Article 31 describes the Partial shipment in UCP600 as:
Partial Drawings or Shipments
a. Partial drawings or shipments are allowed.
b. A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch. If the presentation consists of more than one set of transport documents, the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment.
A presentation consisting of one or more sets of transport documents evidencing shipment on more than one means of conveyance within the same mode of transport will be regarded as covering a partial shipment, even if the means of conveyance leave on the same day for the same destination.
c. A presentation consisting of more than one courier receipt, post receipt or certificate of posting will not be regarded as a partial shipment if the courier receipts, post receipts or certificates of posting appear to have been stamped or signed by the same courier or postal service at the same place and date and for the same destination.
According to SWIFT:
This field specifies whether or not partial shipments are allowed under the documentary credit.
There might be 3 cases for Partial shipment:
Allowed: If allowed then the seller can make a partial shipment.
Conditional: In this case, the shipment option depends upon any other condition mentioned in the LC.
Not Allowed: if not allowed seller have to make a single shipment