Whether UCP600 Article 30b Or c Could Be Applied

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
CristianD
Posts: 17
Joined: Mon Sep 26, 2016 11:28 am
First Name: Cristian
Last Name: Dodu
Organization: Banks
Filter: Two Plus Two =: 4
Location: Bucharest

Whether UCP600 Article 30b Or c Could Be Applied

Post by CristianD » Tue Oct 04, 2016 12:58 pm

A L/c which prohibits partial shipments states at the description of goods ' shelves' without mentioning any quantity or making reference to the tolerance amount.
A set of documents was presented for less than L/C value stating 2000 pcs shelves at unit price xx but within -5% tolerance.
.
Is the article 30 b or c applicable so that could be raised discrepancy 'partial shipment effected' as long as the credit did not state the no. of pieces but the goods by their nature could not be shipped otherwise than in pieces?
The said article deals with situation when the credit itself expressly state the quantity in number of pieces but the same article is silent regarding the situation when qty was not stated but cannot be delivered in other units than individual items.
Thanks and regards
c

Navi
Posts: 362
Joined: Mon Jun 23, 2008 4:17 pm
First Name: Olcay
Last Name: Özcan
Organization: Bank
Filter: Two Plus Two =: 4
Location: Turkey

no discrepancy.

Post by Navi » Tue Oct 04, 2016 3:16 pm

Hi,

In my opinion, despite quantity not mentioned in the L/C, by its nature it would be stated in pcs in case it was stated. For that reason 30b cannot be applied to this l/c. For 30c to be applied, the goods must be fully shipped and unit price must not be reduced. Since neither mentioned in the L/C, we assume that goods fully shipped and the total amount of goods within 5 % tolerence. We cannot raise discrepancy.

Other comments appreciated.

CristianD
Posts: 17
Joined: Mon Sep 26, 2016 11:28 am
First Name: Cristian
Last Name: Dodu
Organization: Banks
Filter: Two Plus Two =: 4
Location: Bucharest

Partially agree

Post by CristianD » Tue Oct 04, 2016 3:52 pm

Dear Navi
Actually agree with you that strictly taking the words of UCP 600, no discrepancy could be raised. However, regardless the absence of qty in L/C, as the value of L/C covers a goods than could be shipped only in individual items, one could raise the following question: if the value is underdrawn, this would correspond with a partial shipment of goods which could not be accepted when goods are shipped by their nature in individual items? I feel that such issue is actually a gap in UCP600. The absence of qty in L/C when the goods are by their nature in individual items should not produce a different result comparing with an L/C which states the quantity. If one "mirrors" such 2 scenarios (2 L/Cs one with qty one without and both with same goods description) would find very strange that one set to be discrepant and one not.
Thanks for sharing your toughs! It may be the correct solution !
Regards
C

CristianD
Posts: 17
Joined: Mon Sep 26, 2016 11:28 am
First Name: Cristian
Last Name: Dodu
Organization: Banks
Filter: Two Plus Two =: 4
Location: Bucharest

ISBP

Post by CristianD » Wed Oct 05, 2016 1:40 pm

In the light of paragraph C14 of ISBP, there should be no discrepancy when qty of goods has not been stated in the credit (even if invoice shows goods shipped in individual items)

Navi
Posts: 362
Joined: Mon Jun 23, 2008 4:17 pm
First Name: Olcay
Last Name: Özcan
Organization: Bank
Filter: Two Plus Two =: 4
Location: Turkey

badly issued LC

Post by Navi » Wed Oct 05, 2016 2:35 pm

Hi CristianD,

Yes, C14 ends the discussion :). No discrepancy.

But anyway, I think L/C is not issued properly. If I were acting as applicant, I would not let issuing bank to state goods description in a word, without further details, such as quantity.

regards

dodo
Posts: 27
Joined: Thu Sep 15, 2016 8:42 pm
First Name: thanh
Last Name: thanh
Organization: dt co.,ltd
Filter: Two Plus Two =: 4
Location: VN

Post by dodo » Wed Oct 05, 2016 9:29 pm

Hi all,
ART 30c will be applied in this case, thus there is no discrepancy raised.

Post Reply