Mistake in Currency in L/C

ahmad · Post by **ahmad** » Tue Jul 01, 2014 9:33 pm

We have opened one L/C in Euro as per applicants advice, Now we have received the documents with some discrepancies.
On advising the applicant the discrepancies it approached that the contract amount of L/C was in USD and Not Euro. The matter taken up with the beneficiary's Bank who replied that the beneficiary refused to accept this change now and demanded the Payment in Euro.
The Invoice showing all amounts in in USD with the cutting to Euro all cuttings authenticated.
.
what to do , do we have any protection under UCP

gegeeee · Post by **gegeeee** » Fri Jul 04, 2014 5:01 pm

Hy,

Actually it is very funny case, If Lc was opened in EUR, beneficiary should have presented Invoice in Euro and not in USD. Anyway it is discrepancy with other discrepancies that you have mentioned, so if issuing bank determines discrepancy as per UCP article 16 will not make payment until approach applicant for waiver. So the easiest way is from applicant's side not to accept discrepancies and it will not make payment.
.
Regarding applicant's concern that USD was in Contract please see artilce 4 of UCP600.
.
BEST,
Gega

IJTUDU · Post by **IJTUDU** » Fri Jul 11, 2014 12:30 pm

As per ISBP 745, C6.iii, An invoice is to indicate the same currency as that shown in the credit. Therefore, it is discrepancy.

Regards,

Isaac