Amendments Of Adding +-10% In Clause 39A

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
Bsuedv
Posts: 1
Joined: Wed Oct 22, 2014 8:42 am
First Name: Ali
Last Name: Bashir
Organization: Bashir industries
Filter: Two Plus Two =: 4
Location: Pakistan

Amendments Of Adding +-10% In Clause 39A

Post by Bsuedv » Wed Oct 22, 2014 8:48 am

Dear all hoping you could give your values guidance on the following:
LC amount= Usd 250,000 (500 tonnes x usd 500 per metric tonne)

Supplier is requesting amendments of adding +-10% in clause 39A and adding 275,000 under 39B as maximum amount.

The pro-forms states Usd 250,000 as value.

My question is if the supplier amendments are correct as 275k would mean it's more than invoice amount? Partial shipment is allowed.

Please advise

User avatar
picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Usually...

Post by picant » Sat Oct 25, 2014 6:50 pm

Hi Pal,

the tolerance in field 39 refers to the l/c amount only.
So you may insert in field 47A:
tolerance 10% plus minus in l/c amount and goods quantity.
naturally leaving the amount of USD 250.000,00, so the amount and goods quantity are correlated.
Other comments appreciated
Ciao

tituisrt
Posts: 35
Joined: Tue Aug 12, 2014 5:04 pm
First Name: mahiuddin
Last Name: titu
Organization: Self
Filter: Two Plus Two =: 4
Location: Bangladesh

Yes supplier amendments are correct

Post by tituisrt » Wed Dec 03, 2014 6:29 pm

Hi,
I totally agree with picant sir.
Under Field 39A +/-10% means tolerance only applicable in LC amount(LC value) not in Quantity.
definitely goods value is related with quantity.
So, U should give an extra clause in field 47A extra +/-10% tolerance in value & quantity will acceptable.
Thanks

Post Reply