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Hello Members,

I have often seen LC which has the description of goods as follows

20 MT of xxxxx and all other detail as per Proforma invoice no....
the proforma invoice is never sent to the advising bank.

will the description of the goods under a presentation be reviewed under that proforma invoice?

thanks in advance

berry

Hi Pal,

Art 4 UCP 600 is quite clear, quoting Pro Forma invoice or contract number, parties refer to a specific supply, but not to details of such contract. If the l/c contains different terms and conditions from the signed contract, beneficiary must request an amendment or refuse the l/c.
Some banks are used to link l/c to proforma invoices, stating that "Pro-forma invoice is integrant part of l/C": This is not advisable and, IMHO, out of time: Being the most of L/C s issued by SWIFT, if you insert such condition, the l/C will be not operative untill the Pro-forma invoice will reach the advising bank . Checking goods description in Invoice vs. Proforma invoice may be let banks to find discrepancies but does not mean that the goods will be better.

Ciao

Agree to picant's viewpoint.Tks. Many disputes under L/C are caused by the issuance of lc. So the issuing bank should help customers to make the application more clear and definate.