Best Trade Solution

dear friends,

today i received a presentation under a lc which has two sets of document. the lc does not allow partial shipment. however the BL shows the same vessel and voyage number. so its not part shipment. but one of the invoice has a discrepancy and i had to issue a refusal advise. but how many should i issue? one for the discrepant invoice. but this discrepancy invalidate the other set of document as partial shipment. so should i issue another refusal advice for partial shipment?

regd

shahriar

Dear Shahriar,
Art. 16 of UCP 600 states : When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank determines that a presentation does not comply, it may refuse to honour or negotiate. Since you have one presentation regardless that cover one or more set of document, a single notice of refusal may be sent. Subsequent refusal notices have no effect.
Regards
cristian

dear cristian,

sorry for not being able communicate the actual scenario. i have two full set of document. so far i remember, there is a icc opinion which allow me to refuse any one of the sets. now if i refuse the discrepant set (invoice), then the other set will become discrepant due to partial shipment. but i cant issue the two discrepancy in the same refusal advice. whats your opinion?

regd
shahriar

Dear Shahriar,
Still not clear what you have received: two sets under one presentation or two presentation each of one set.
Anyhow the fact that you communicate a discrepancy at one set this cannot change or override the actual facts: i.e. that partial shipment WAS NOT EFFECTED. So you cannot issue an advice of refusal for second set as this will sound very unproffessional in the situation described.
However I don't know what is the whole situation at your end. In this case you should have better referred discrepancies to the applicant within the frametime of your verification and maybe the applicant would have been happy to waive discrepancy before issuing any advice of refusal.

dear cristain,

i received two sets of document under one cover letter.

i think discrepancy in one set makes the other discrepant. a discrepant document, unless waived is as good as no presentation.

regd

shahriar

Dear Shahriar,
In the light of your clarification my first answer is the one that I consider correct.
Remember that remitting bank on its covering schedule requested full amount not partial amount. Therefore any reduction payable is subject to remitting bank approval. However, a smart applicant can trouble you .... in the situation presented.
Given the fact that is one presentation and the 2 sets that are linked with each other due to partial shipment prohibitted and both showing in fact one shipment, my advice to you is to send a single notice of refusal.
Good luck
Cristian