LC States "Plus And Minus 5 Pct Tolerance On Quantity And Value Are Acceptable."

Mahavishnu · Post by **Mahavishnu** » Tue May 31, 2016 11:51 am

The LC states "PLUS AND MINUS 5 PCT TOLERANCE ON QUANTITY AND VALUE ARE
ACCEPTABLE.". Is this correct.

Should it not read as PLUS OR MINUS?

Please help me to understand the clause in the LC is correct.

picant · Post by **picant** » Wed Jun 01, 2016 10:22 am

Hi Pal,

it is evident that 5% tolerance will apply plus or minus, but in acknowledging receipt of l/c , you may state that the correct
meaning is plus or minus. However the issuing bank is responsable for any ambiguos word in its l/c.
Othercomments appreciated
Ciao

Mahavishnu · Post by **Mahavishnu** » Wed Jun 01, 2016 10:38 am

Agreed sir.. But when the docs are presented bene has the right to ship BOTH plus and minus tolerance right?

Navi · Post by **Navi** » Mon Jun 06, 2016 2:47 pm

Hi friend,

You are right that the correct wording should be "...plus or minus...". However, it will be too absurd to apply both puls and minus tolerance under the same LC ( for instance while applying plus tolerance for LC value, to apply negative to quantity). If I were beneficiary's bank, as picant already said, I would write in MT730 "we understand tolerance to be applied ....plus or minus". No need to ask for an amendment.

regards

dodo · Post by **dodo** » Wed Sep 21, 2016 10:33 am

Hi,
I think we can understand that is mistyping of issuing bank. If your bank wants it more clearly,
It should need confirmation from the issuing bank. However, i can not imagine how beneficiary can ship both more and less at the same time.

hainam · Post by **hainam** » Wed Sep 21, 2016 2:26 pm

Hi friend,
I think you can read as PLUS OR MINUS and no need to ask for amendment

LC States "Plus And Minus 5 Pct Tolerance On Quantity And Value Are Acceptable."

LC States "Plus And Minus 5 Pct Tolerance On Quantity And Value Are Acceptable."

words are words......

plus or mÄ±nus is correct