Further Explanation of Article 30b (Tolerance in LC) of UCP600

sammer123 · Post by **sammer123** » Wed Jan 18, 2017 9:59 pm

Hi can anyone explain meaning of below

Even when partial shipments are not allowed, a tolerance not to
exceed 5% less than the amount of the credit is allowed, provided that the
quantity of the goods, if stated in the credit, is shipped in full and a unit
price, if stated in the credit, is not reduced or that sub-article 30 (b) is
not applicable. This tolerance does not apply when the credit stipulates a
specific tolerance or uses the expressions referred to in sub-article 30 (a).

khaledosama · Post by **khaledosama** » Sun Feb 12, 2017 5:23 pm

Dear sammer,

if the l/c states partial shipment not allowed , goods description 500 ton of sugar , unit price usd 20/ton , total amount : usd 100,000.00

then documents presented for USD 95,000.00 evidencing shipment of 475.00 ton of sugar , unit price : USD 20/ton
is acceptable .

* using tolerance in the credit prohibits this exception

best regards

gegeeee · Post by **gegeeee** » Thu Feb 16, 2017 5:35 pm

Hy colleagues,

I ll also add the scenarios where unit price is not indicated:
If the l/c states partial shipment not allowed , goods description 500 ton of sugar, total amount : usd 100,000.00

1) Documents presented for USD 90,000.00 evidencing shipment of 475.00 ton of sugar - is acceptable
2) Documents presented for USD 95,000.00 evidencing shipment of 500.00 ton of sugar - is acceptable
3) Documents presented for USD 100,000.00 evidencing shipment of 475.00 ton of sugar - is acceptable

Best,
Gega

sammer123 · Post by **sammer123** » Fri Feb 17, 2017 5:43 pm

Hi thks but one question if beneficiary submit invoice for 95000 for 500. ton sugar isnt it loss for him as he is supply full qty but his invoice value is less amount ( 100000 - 95000 ) = 5000 loss

shafi865 · Post by **shafi865** » Fri Feb 24, 2017 12:26 am

Dear Sammer,
Please note that the article (UCP 600, Sub Article 30c), which you mentioned, contains a statement "provided that the
quantity of the goods, if stated in the credit, is shipped in full and a unit price, if stated in the credit, is not reduced or that sub-article 30 (b) is not applicable."

So in this case, short shipment is not allowed as well as unit price can't be reduced. Then the question is how the drawing shown reduced value without changing the quantity or unit price. The answer is this happened when the freight or insurance charge is reduced.

Therefore, the example shown by others is not correct.

Thanks and regards,
Shafiq

Further Explanation of Article 30b (Tolerance in LC) of UCP600

Further Explanation of Article 30b (Tolerance in LC) of UCP600

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Tolerance in LC