LC Shows No Quantity And Invoice Shows Discount

[iLC]

friends,

consider the scenario -

an letter of credit has been issued for USD 100000 to cover import of wheat. no unit price or quantity is give. partial shipment allowed. The beneficiary submitted an invoice which shows total price 100000 less discount 25000. the draft is drawn for USD 75000. ISBP paragraph 60 says

The invoice may also show a deduction covering advance payment, discount, etc., not stated in the credit.

so this is acceptable in one sense. now the problem is that the beneficiary has submitted another set of document for USD 25000. is the second presentation acceptable?

regards

iLC

[nesarul]

Dear,
I just so love all of your posting. your insightful comment and tricky question is really helpful to us. here is the another example of it.
.
here my thinking:
ISBP paragraph: 60:
the real premise of ISBP paragraph 60 is that the discount or advanced payment must be evidenced for the same letter of credit transaction, and this paragraph is not allowed to shipped the goods beyond the credit amount and must be fall within the credit amount.

ISBP paragraph 64(a) emphasised the same position:i.e.
"An invoiced must not show"
a) OVERSHIPPED [EXCEPT AS PROVIDED IN UCP SUB ARTICLE 30(B)][EMPHASIS ADDED].
.
YOUR CASE REPRESENT L/C IS SURELY OVERDRAWN SO DISCREPANT.[THNAK YOU SHAHRIER FOR YOUR COMMENT AND SOORY FOR SAYING OVERSHIPPED , I EDITED HERE BECAUSE OF REFLECTION OF THE WHOLE ANSWER AT A GLANCE]
.
HOPE THIS WILL ADD.
REGARDS
NESAR

[shahriar]

dear nesar,

there is no question of over shipment here as there is no quantity or unit price.

regd

shahriar

[cristiand969]

Second presentation is conform and should be honoured. The last drawing does not exceed the amount indicated in the credit.
Please make difference between value of goods under contract (where parties have agreed part payment by transfer and part by LC) and value to be paid under the credit. As long as partial shipment are not prohibited and value of the credit not overdrawn documents are compliant. (i.e drawings are 75000 + 25000 = 100.000 value of LC)
regards
cristian