Bill Of Lading Shows Freight Prepaid But Invoice Shows FOB

[Chamnan]

Dear all
I've one case that related to the discrepancy on the conflict data the case as below:

1. The L/C field
46A require:
1.SIGNED COMMERCIAL INVOICE ISSUED IN ONE ORIGINAL
2. COPY OF SHIPPED CLEAN ON BOARD BILL OF LADING
47A STATE:
THE FREIGHT IS ARRANGED BY THE APPLICANT AND ORIGINAL BILL OF LADING IS SENT DIRECTLY TO THE APPLICANT.
2. The doc present to issuing bank and the issue bank found the discrepancy as below:
Bill of Lading stated freight prepaid while the commercial invoice indicate FOB term

The discrepancy as above is valid or not?

[IJTUDU]

I will not treat the same as discrepancy. In case of FOB, the buyer must contract, at its own expense for the carriage of the goods from the named port of shipment. In the instant case, as the freight is arranged by the applicant, carriage expense would have been paid by the applicant (instead of paying the same at the named port of destination). Therefore, there is no conflict of data in the given case.

Thanks & regards,

Isaac Tudu

[mskhan42]

Hi,
this is not a discrepancy, documents are exactly same
as asked in oppose to this will be a discrepancy.
Regards,
Muhammad Saqib Khan

[cdcsmentor]

under FOB term, the buyer contact and pay the carriage at the named port of destination. As the carriage contact by the applicant, they have to pay for whether post of destination or other place. so, there in no discrepancy.

[dinesh2476]

Dear All,

What does the LC terms states ''freight prepaid / freight collect''
If the documents presented as per LC terms then, there is no point in raising this as discrepancy, since LC was issued by IB with incorrect details, they have to face the consiquences.

If the LC states correct details and documents presented are incorrect, then the presenting bank should have raised this as discrepancy at the time of examination.

Other points(below) rightly explained by experts,

Thanks & Regards
Dinesh