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ucp600 atricle 18(b): "~the issuing bank may accept a commercial invoice issued for an amount in excess of the amount permitted by the credit..~"
according to this article above ....Isn't the exceeded invoice deemed to be a discripancy ? or.. could it be subjected to tolerance which permit +-5% ?
please answer me.. lol

Dear sir,
The article is clear that in this case it will be the bank in question own desicion provided that payment will be effected only for the amount permitted by the credit.
Accordingly it give flexibility to overcome this only discrepancy.
waiting for your feedback.
Thanks.

no, it is not subjected to permitted tolerance because permitted tolerance means that if the invoice amount exceeds the mentioned amount of credit the issuing bank undertake to pay the exceeded amount because in fact the invoice has been presented as per credit terms. whereas in this case(Art. 18b) no bank shall pay the exceeded amount.

UCP600 Art.18b states:

b. A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may accept a commercial invoice issued for an amount in excess of the amount permitted by the credit, and its decision will be binding upon all parties, provided the bank in question has not honoured or negotiated for an amount in excess of that permitted by the credit.

.
Think of it as whoever takes the decision first, the rest will follow;
For example;
If the confirming bank examined the document, and decided that this is not a discrepancy, and negotiated only the amount permitted in the credit, then the issuing bank is BIND by the decision taken and have no option to take it as a discrepancy.

Same goes vise versa, if the confirming bank concluded in its cover that they have noted this as a discrepancy, the issuing bank must act accordingly and obtain Applicant's approval for waiver of discrepancy.

However, I'm up to ideas..

If nominated/confirming bank negotiate the commercial invoice which is showing excess amount ,if otherwise in order.
.
what about the
1.balance amount?
2.Chances of dispute by Issuing Bank and Applicant if not acceptable to applicant?
.
Pls. advice.

there are three options;
1. the balance amount is never paid
2. it is paid by the applicant in some other ways; TT
3. it was in fact paid in advance.

i dont think that there are chance of dispute because the document will be otherwise in order. invoice over drawn does not necessarily mean that goods were over shipped / price was changed.

generally when a invoice is drawn in excess of the credit, the draft, if any, is drawn equal to the credit amount. that means the beneficiary is only claiming the credit amount and therefore there should be no problem in settling the transactions. if there is no draft, then the nominated bank usually mention the claim the amount on the forwarding schedule. if there is no clear indication, the issuing bank or confirming bank should seek clarification from the presenter.