UCP 600

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SRI
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UCP 600

by SRI » Tue Feb 13, 2018 11:57 pm

The LC condition =Field 32B=EUR34034.91 , Field39a=0/0, Field43p=Not allowed. you have forwarded a set of documents under LC with EUR33589.71. You have received MT734 rejecting your documents “partial shipment not allowed “ Discuss whether issuing bank is right

liviuc
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Re: UCP 600

by liviuc » Fri Feb 16, 2018 6:10 pm

Hi UCP 600, Please take a look to Article 30 b and c UCP600.

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Re: UCP 600

by Fajar » Mon Feb 26, 2018 12:41 pm

If field 39a showing 0/0 that means no minimum and maximum tolerance for amount at all. This ussually followed by another statement on field 47a that quantity and amount hasil no minimum and maximum tolerance.

Ucp article 30 only applied if field 39a is not inserted in LC, so the discrepancy is valid.

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picant
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Re: UCP 600

by picant » Mon Feb 26, 2018 5:43 pm

Hi Pals,

see Opinion R689, 0/0 in field 39 has no meaning and art 30 c is still applicable.
Ciao

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Re: UCP 600

by cristiand969 » Mon Feb 26, 2018 5:52 pm

In my opinion 0/0 means not exceeding either for + and for -.
Therefore a tollerance is not permitted !

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Re: UCP 600

by nhungth306 » Thu Mar 01, 2018 10:27 pm

picant wrote:
Mon Feb 26, 2018 5:43 pm
Hi Pals,

see Opinion R689, 0/0 in field 39 has no meaning and art 30 c is still applicable.
Ciao
Could you pls quote your mentioned opinion? Since mine is that when credit specifically indicates tolerance, Art 30(b) and (c) would not be applied.
Thank you.

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Re: UCP 600

by Wayneso » Sat Mar 17, 2018 4:21 pm

Hi, sorry to hi-jack thread, but isn't there a 'given rule' that a +/- 5% tolerance allowed..? , even if no tolerance is stated on field 39 ? ...
anyway...back to original post....you have presented documents for a value which is EUR445.20 lesser than LC amount .....you are still within the "given' 5 % tolerance of the LC amount (32B) .....

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picant
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Re: UCP 600

by picant » Sun Mar 18, 2018 3:10 am

Abstract Official Opinion TA618 R689
Conclusion:
By the wording of the SWIFT handbook, the use of "00/00" in field 39A of the SWIFT MT700 has no effect on the amount that can be drawn under the credit: The completion of figures within this field are to denote the plus and/or minus percentage to be applied to the credit amount: Any drawing under the credit would still be subject to the allowances made in UCP 500 sub-article 39(b) or (c),
depending on the pterms of the credit and the underlying drawing. A drawing of up to 5% less in the credit amount would be allowed under the credit.(UCP 600 art 30 has not changed the meaning).
Other comments appreciated
Ciao

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Re: UCP 600

by Fajar » Mon Mar 19, 2018 8:59 am

Thank you for your information Mr picant, I really appreciate it.

IMHO, I conclude that if the LC itself only state field 39A as 0/0 and no other clause mentioned in field 47A regarding the tolerance it means UCP 600 article 30b is applicable, but if field 47A mentioned that tolerance for quantity and amount is prohibited, then field 30b is not applicable

please correct me if Im wrong.

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