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Description Of Goods On Invoice Shows Free Of Charge
Posted: Sun Nov 09, 2008 6:30 pm
by ofei
LC 45A:description as per order no:123.
Description of goods lies in two kinds:
1. description as per order no:123 with goods A, B and C stating below.
2. description as per order no:123 with goods A, B and C stating below. Meanwhile goods C shows "free of charge". The issuing bank will raise discrepancy stating that it does not comply with ISBP 64.
My question is that both the invoices include the same goods C, but the first invoice will be accepted while the second won't be accepted. May I make the invoice this way?
State the total value of GOODS A,B AND C.And then deduct the value of C(Free of charge). Is that workable?
Waiting for your comments.
Ofei
Re: description of goods on invoice
Posted: Sun Nov 09, 2008 8:22 pm
by jmitra
dear ofei,
i really dont understand the question. could you please tell us in bit detail?
Re: description of goods on invoice
Posted: Mon Nov 10, 2008 8:26 am
by ofei
Dear jmitra,
I apologize for my misunderstanding due to poor english competence.
Now i am trying to make it clear:
L/C 45A:description as per order no:123.
The beneficiary made two kinds of invoices, one is shown below:
Description as per order No. 123
A (GOODS)
B (goods)
C (goods)
The other invoice shown below:
description as per order no:123
A
B
C (Free of charge)
The question is as per ISBP681, the second invoice won't be accepted since it showed free of charge. But both invoices contain the same goods. Will the bank refuse the second invoice only because it showed free of charge?
If the beneficiary state the total value of GOODS A,B and C on the invoice.And then deduct the value of C(Free of charge). Is that workable?
Hope you would read more clearly this time. :oops:
Re: description of goods on invoice
Posted: Mon Nov 10, 2008 1:32 pm
by nesarul
Dear,
Paragraph 64(b)
64. An invoice must not show:
b. merchandise not called [EMPHASIS ADDED] for in the credit (including samples, advertising materials, etc.) even if stated to be free of charge
.
I THINK PARAGRAPH 64(B) IS NOT APPLICABLE IN YOUR CASE, THIS PARAGRAPH IS APPLICABLE WHERE INVOICE INDICATES MERCHANDISE OUT OF THE CREDIT STIPULATED GOODS.
.
FROM MY POINT OF VIEW, YOUR ALL DESCRIPTION OF THE GOODS IS COMPLIANT.
REGARDS
NESAR
Re: description of goods on invoice
Posted: Mon Nov 10, 2008 8:53 pm
by cristiand969
All invoices comply. I see no conflict as no 'C' goods and related price have been stated in the credit to check the compliance. The issuing bank now faces troubles for not providing a simple but consistent description of goods. Such description of goods allow any type of goods shipped and beneficiary detailed the actual goods existing as per order 123.
regards
Cristian
Re: description of goods on invoice
Posted: Mon Nov 10, 2008 11:28 pm
by shahriar
i agree with the answers. ISBP paragraph only tries to mean that goods which has no relation with the goods of the LC is not allowed even they are provided for free as a promo. for example while importing garments, a few of new design may be shipped as promo while food items can not be shipped and would create a discrepancy.
regd
shahriar
Re: description of goods on invoice
Posted: Tue Nov 11, 2008 8:26 am
by ofei
TKS for all of your help.
I didn't notice that ISBP focuses on the goods which credit doesnot require.
Ofei