Article-30(b): Drawing Full Amount Despite Less Shipment

[jahid]

Dear friends,
Unless otherwise state in the credit incase of shipment of uncountable goods 5% tolerance is acceptable. Provided that drawings must not exceed the amount of the credit. Here is an example, A credit stipulates:
Quantity of goods : 1000 kgs
Credit amount : $ 1000.00
(No unit price is given in the credit.)
Invoice shows:
Quantity of goods : 950 kgs
Credit amount : $ 1000.00
Drawings is also $ 1000.00
1. My question, should it rational to draw full amount insprite of 5% less shipment?
2. Is the invoice and drawing acceptable?

Whats your thinking....

[tituisrt]

Hi,
Article 30b does not clear this.
But in my point of view Its a discrepancy.
it does't mean any sense that u shipped less quantity and but claim full value.
Invoice cant show quantity 950 kg bt drawing amount full value. It should show 950 kg and amount $950.00
.
Other comments needed.
regards

[picant]

Hi Pals,

Bank clerks are not aware of terms of contract or use of sales, this article probably refers to bulk quantity of goods where
this tolerance is admitted. So read well the paragraph 2 and act accordingly.
Other comments appreciated
Ciao

[mohiuddin]

Yes its permitted by above article.

Mohiuddin