Best Trade Solution

Dear,
Fact:
Credit:
Field 39A: 10/10
Field 45A:
Product: X, Quantity: 50 MT Unit price: USD1.00 per MT Total: 50 MT.
Partial Shipment: Prohibited.

Discussion of Two LC Experts:

Expert one: Well, I think beneficiary can make shipment upto 55 MT for total credit amount USD55.00.
Expert Two: Well, I think you are correct, but if we consider ICC official opinion R 365:

“The absence of such words against any or all does not afford the beneficiary a tolerance in respect of that particular credit term.”

You can not make tolerance to quantity.. what do you think?
Expert one: Well, That a tricky part, But you can not ignore, the quantity is not in Packing unit or individual item and therefore can not ignore sub article 30 (b) as well. What do you think?
Expert Two: Thanks, its sound logical…. But sub article 30 (a) didn’t refer to any situation [neither individual or packing unit not bulk quantity], hence this opinion can come forward as argument from any part.
Expert One: Yes, I do agree…we better left it for forum to resolve?
Regards
Nesar

Hi Pals,

being 10/10 in field 39a of the MT 700 referred only to the amount, it is not possible to apply tolerance to the quantity or to the price. I dare say that you can send 95% of the goods and availed the l/c for 95% as per art 30b.
Other comments appreciated
Ciao

Hi

In this example, As per article 30(b) a tolerance of 5pct (45-55MT)can be applied to the qty as the qty is given in MT.
A tolerance 10/10 is to be applied only for the amount.
According to me, this is given so that the LC is workable. If it was not given then the beneficiary will not be able to avail of the protection under article 30(b) as a Unit Price is stated and hence will definetely have to ship only 50MT to meet the LC amount.

Other opinions welcome.

Rgds,
Ljo