FOB and CIF

loankim · Post by **loankim** » Fri Sep 03, 2010 10:03 am

Dear All,

F45A states trade term as CIF (Incoterms 2000), and in field 46A a certificate of origin form E is required.
The presented invoice shows the CIF value as USD65,540.00 whilst the certificate of origin shows FOB value as USD65,540.00.
Can i raise the discrepancy : "FOB value is in conflict with CIF value"( sub-art 14d UCP 600 applied here )
.
humm..in order to determine the conflict of data ( cant be the same value), basing on Incoterms 2000 which is not referred in determining a complying presentation under UCP 600.
.
Your comments are highly appreciated !

Gart · Post by **Gart** » Fri Sep 03, 2010 11:43 am

As I imagine a banker being L/C specialist should not treat this as a discrepancy as he checks the documents on their face alone - he should not care whether e.g. beneficiary or its financial group owns a shipping and insurance companies and they provide this service to them for free. What kind of discrepancy could be raised: what's the conflict between different indicators?!

loankim · Post by **loankim** » Fri Sep 03, 2010 1:23 pm

Hi Gart,

Thanks for yr comments !
In my opinion, i also dont treat it as a discrepancy but i have got suggested answers from two experts who affirm that it is discrepant .
So i share my case on BTS and hope that we will study something from this interesting case.

Rgds,
Loan Kim

cvrkswami · Post by **cvrkswami** » Sat Sep 04, 2010 1:19 pm

Certificate of origin in form e deals with treatment of preferential tariff. Hence value becomes an important and dependant factor. The experts have thus based their opinion on this factor to conclude as discrepant documents.

Points to ponder: would it have made any difference to the experts if the LC has called for only certificate of origin instead of certificate of origin in form E ?

better to treat this as discrepant.

CVRK

M.A.Chowdhury · Post by **M.A.Chowdhury** » Sat Sep 04, 2010 2:33 pm

Dear Sir,

In my opinion it is not discrepancy. The purpose of a certificate of origin is to supply the information regarding ORIGIN of goods. Since the main purpose is not conflicting with the credit,and certificate of origin fulfill the requirement asked for,it is not a discrepancy.

More opinions appreciated.

Monir

shahriar · Post by **shahriar** » Sat Sep 04, 2010 5:03 pm

i must say, this is a very interesting question. in my opinion this is a discrepancy. you see trade term is a very important factor especially when it appears as a part of the description of the goods. invoice has to show the correct Incoterm. if any other document shows a different incoterm, that should be raised as data conflict. however if the invoice also show the FOB value (which is same as the CIF value), the decision would be bit different i think.

loankim · Post by **loankim** » Sat Sep 04, 2010 5:50 pm

Dear All,

Thanks for you comments very much !!

Regards,

picant · Post by **picant** » Sat Sep 04, 2010 9:14 pm

Hi Pals,

I had a little experience with Certificate for textiles, cat. 9, for goods from China PRC, the goods value must be FOB, independently from the trade terms of the invoice.
This is specific for customs use.
In this case a documents checker must confront that the fob value is less that the cif value, but accept the certificate if no other fob value is found in other documents and, naturally, different from.

General System of preference certificate is form" A "and not "E" for my Country Italy, if exists a form "E" too, please post a copy in this forum or send it by email
picchi.antonio@virgilio.it
thanks and ciao

FOB and CIF

FOB and CIF

IMHO

so confused

Certificate of origin Form E

Not discrepant

discrepant

Thank you !

GSP FORM A