Tolerance in Credit

[mando@vsnl.net]

Dear All Friends,

Article -30 (b) & (C) - I could not understand % of tolerance either it is limited up to 5 % plus or Minus or we can allow within 5 %. Could you explain me limitation on using tolerance for Qty ?

Thanking you
Pradip Bhavsar

[lclclondon]

Hi There!

My intepretation of Article 30 (b) is as follows:

If the L/C does not state specific packing units or individual items i.e. 10 chairs and 5 tables
but rather 10 mts of cotton or 50 kgs of rice, then a tolerance of +/-5pct can be applied to measurements provided the total amount does not exceed the L/C amount. This article would apply when 'measurements' have been quoted.

Article 30 (C) would apply if the quantity of goods is not stipulated in the credit is shipped (less) but the unit price stays fixed, then -5pct tolerance would be allowed on the L/C value.

Hope this helps!

[iLC]

if you fix your own tolerance for the credit, then article 30 will not work.

[ybattia]

I would like to mention that iLC speaks about specifically adding a (+/- %7 ) for example againist the quantity being shipped as part of the LC text, NOT under the Tolerance field in the MT700, because that one applies to the amount of the credit and not quantities.

However, any other ideas appreciated.