Contents of Performance Vs Contents of Invoice

[DarkKnight]

Dear All,

what if the description/contents of a performance bond do not match with the description of goods/contents of a commercial invoice?

i believe a performance bond is issued by a bank on behalf of the applicant as a guarantee that the applicant will guarantee and satisfactorily perform the given project. During examination of the documents, does a document checker need to ascertain that the performance bond shows the exact replica of the description of goods as stated in the Invoice?

Please enlighten.

[picant]

Hi Pal,

probably it will depend on the terms regulating such performance bond/guarantee. Usually a declaration that the principal has not performed its obligation is required, accompanied by copies of documents.
Let us know : Rules and prescription of PB:
Other comments appreciated.
Ciao

[DarkKnight]

Dear Picant,

Thanks for your response.

The requirement of the LC was just an invoice and performance bond without stipulating any contents or conditions. It is construed that a performance bond is a stand alone document that only indicates the performance and guarantee of the work by the applicant. The issuing bank has come back with a discrepancy stating that description of goods in the invoice does not match with the description of the performance bond. Hence the query.

Other comments would be appreciated.

[picant]

Hi Pal,

Let us know under which rules the Performance Bond has been issued; URDG, UCP, ISP98 or local laws?
Moreover the goods description required and submitted, if domestic or international , so may we ascertain that the discrepancy is acceptable or pretestous. Naturally, if under local law, we can't help you!
Ciao