May I ask for your comment of the following:
Referring ISBP 61
If a trade term is part of the goods description in the credit, or stated in connection with the amount, the invoice must state the trade term specified, and if the description provides the source of the trade term, the same source must be identified (e.g., a credit term “CIF Singapore Incoterms 2000” would not be satisfied by “CIF Singapore Incoterms”). Charges and costs must be included within the value shown against the stated trade term in the credit and invoice. Any charges and costs shown beyond this value are not allowed. May I say that on the below case:
invoice showing additional charges: SANITARY AND PHYTOSANITORY COST EUR100.00
Is acceptable in this case, since it no evidence it is outside FOB value of goods on the invoice.
L/C AMOUNT : EUR 9900.00
L/C 45A: 10 SETS POWER UNIT ENGINES
CIF BREMERHAVEN, INCOTERMS 2000
Invoice presented showing:
SHIPPING TERM: CIF BREMERHAVEN, INCOTERMS 2000
10 SETS POWER UNIT ENGINES EUR9600.00
SANITARY AND PHYTOSANITORY COST (40FTX1) EUR100.00
OCEAN FREIGHT CHARGE (40FTX1) EUR200.00
Total 7 SETS : EUR9900.00
the invoice shows some charges not mentioned by the LC.
Would this constitute a discrepancy?
Please comment.
Thank you for your assistance.
Regards,
Sanitary and Phytosanitory Cost
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Charges and Cost
ok. ISBP says
Charges and costs must be included within the value shown against the stated trade term in the credit and invoice. Any charges and costs shown beyond this value are not allowed.
here is issue is not only the charges but the cost of the goods as well. precisely it means that cost of goods must not more than the mentioned in the LC. in your case the LC is silent on the unit price. the beneficiary is just showing the break down of the total cost. so i see no discrepancy. other comment appreciated
Charges and costs must be included within the value shown against the stated trade term in the credit and invoice. Any charges and costs shown beyond this value are not allowed.
here is issue is not only the charges but the cost of the goods as well. precisely it means that cost of goods must not more than the mentioned in the LC. in your case the LC is silent on the unit price. the beneficiary is just showing the break down of the total cost. so i see no discrepancy. other comment appreciated