expedition fess on invoice with FCA incoterm

[samira]

Hi all,

I need your help for this subject:

We (the issuing bank ) have opened an L/C with incoterm FCA china airport.
We received an invoice when it was indicated the amount of goods costs+expedition fees from beneficiary s factory to the chinese airport total amount L/C.
We noted discrepancy:invoice showing expedition fees not called for by the credit and because incoterm is FCA these fees was for bénéficiary's costs.

We have received a discrepancy protests From the advising bank for this discrepancy to inform us that it is an agreement between beneficiary and applicant to include these cost in the price and the amount does lot exceed L/C amount.

Should we accept this and waive the discrepancy or not?????

Thanks a lot for your fast reply.

Best regards.
Samira.

[picant]

Hi Pal,

if additional costs are not prohibited by lc, ISBP 745 C9 dictates that"additional charges and costs, such as those related to documentation, freight or insurance costs, are to be included within the value shown against the stated trade term on invoice"
other comment appreciated
Ciao

[samira]

Hi pal,

In other words, by incoterm FCA the “costs+expedition fees from beneficiary s factory to the chinese airport total amount L/C” should be paid by the seller – and should not be part of the invoice.

If such charges were to be included in the invoice (and paid by the buyer) this should have been included in the total TOTAL value .

Then, we can maintain our discrepancy?

best regards.

[picant]

Hi Pal,

IMHO, you may know how FCA works, but you have to follow the l/c terms and rules. An invoice may
have a cost breakdown, evidencing transport costs to be borne by the seller but included in the goods final price. If the l/c does not indicate prices' details or they are conflicting , you have to accept such invoice.Other comments appreciated

[samira]

Hi Pal,
Thank you for your answer.
Best regards.
Samira.

[picant]

Hi Pal,

not knowing the l/c wording, assuming that
Goods 1000
inland transport 10
Total FCA 1010 (corresponding to l/c amount)
No discrepancy.

Other comments appreciated
Ciao