purchase order
Posted: Fri Jul 23, 2010 8:55 am
Dear Expert,
May I ask for your opinion of the following :
we have been discouraging issuing banks from attaching purchase orders, sales confirmation or the like to their LCs.
However, some issuing banks alternatively require presentation of a PO and/ or sales confirmation copy.
The PO or sales confirmation shows the ship date as July Vessel whereas the LC shows the latest shipment date as 2009-07-15. The PO also shows the Incoterm as FOB, vessel as Evergreen, quantity as 72,000 pieces, unit price as USD127, etc. All these could be different from or in conflict with the other stipulated documents but we wouldn’t know until document presentation. Here come the questions.
(a) To what extent must banks examine the presented PO or sales confirmation? If included as an other document, I think most banks would probably examine under 14f and 14d
(b) Must banks ensure that there is no conflict between the PO or sales confirmation and the other stipulated documents? Assuming (a) above applies then yes
For examples, Purchase Order and sales confirmation showing Tenor:
60 days after sight whereas L/C required tenor at 60 days after B/L date.
Must we treat it as a discrepancy?
Thank you for your assistance.
Regards,
LEUNG, KS
May I ask for your opinion of the following :
we have been discouraging issuing banks from attaching purchase orders, sales confirmation or the like to their LCs.
However, some issuing banks alternatively require presentation of a PO and/ or sales confirmation copy.
The PO or sales confirmation shows the ship date as July Vessel whereas the LC shows the latest shipment date as 2009-07-15. The PO also shows the Incoterm as FOB, vessel as Evergreen, quantity as 72,000 pieces, unit price as USD127, etc. All these could be different from or in conflict with the other stipulated documents but we wouldn’t know until document presentation. Here come the questions.
(a) To what extent must banks examine the presented PO or sales confirmation? If included as an other document, I think most banks would probably examine under 14f and 14d
(b) Must banks ensure that there is no conflict between the PO or sales confirmation and the other stipulated documents? Assuming (a) above applies then yes
For examples, Purchase Order and sales confirmation showing Tenor:
60 days after sight whereas L/C required tenor at 60 days after B/L date.
Must we treat it as a discrepancy?
Thank you for your assistance.
Regards,
LEUNG, KS
