instalment shipment

dholat · Post by **dholat** » Tue Mar 24, 2009 10:14 pm

one of our client exports under a letter of credit which has the following clause -

shipment must be made in 2 full container in two lots. there must be separate shipping document for each lot and there must be minimum 30 days difference between the two shipment.

despite warning our exported shipped all at a time and the issuing bank refuses claiming "shipment made in one lot"

i know there is little we can do. but your any opinion will be appreciated.

wongvv · Post by **wongvv** » Wed Mar 25, 2009 12:30 pm

Hi !

Discrepancy is too obvious. Urge applicant for waiver of discrepancy.

V.V.

Ozoda · Post by **Ozoda** » Wed Mar 25, 2009 1:48 pm

Similar issue was considered and published by ICC. ICC Opinion was that the docs are discrepant.
I will try to find it and post it here.

SHAMEER · Post by **SHAMEER** » Wed Mar 25, 2009 6:32 pm

Please do not help the exporter, as he violated the conditions stipulated in the L/c.

B. regards

cristiand969 · Post by **cristiand969** » Wed Mar 25, 2009 7:37 pm

Dear Shameer,
We are all here to share our experience and opinions and not to arbitrate between who has the right and who not in terms of personal feelings thus interfering in our day-to-day business even psihologically.

SHAMEER wrote:Please do not help the exporter

If you are a banker as I suppose you may want to remember that you earn your living on your customer shoulders who are striving to keep their business alive in these tough times of mondial crisis. You don't even know that the exporter may have discussed with importer about the impossibility of exporting goods in two shipments and they might have subsequently agreed on that in spite of credit telling otherwise or issuing bank being unaware of that.
Although I am a banker now and CDCS registered I will never forget that a small exporter I worked for created me the possibility to become what I am now because of getting contact with such means of payment. And I must admit that this is a plus for me comparing to my colleagues having learned a lot of things about negotiation process, international transport, bookeeping and more.... And full credit for that goes to my employer dealing with export-import activities.
So I believe that your answer is unapropriate, unjustified and uncalled for.
If you want to become a good banker, consider that UCP or ISBP isn't nothing but a small step in a long journey.
I am entrusted that bankers with experience will share my opinion although is not necessary for me but for you.
Don't take it personally , we are here to learn. So, learn!

dholat · Post by **dholat** » Wed Mar 25, 2009 11:15 pm

Dear all,

Thanks for all your answers. i was having a new thought on this issue. the clause LC stated actually means that there will be two shipment and two separate presentation. since there must be at least 30 days difference between these two shipment, there will obviously at least 9 days differences beween two presentation. hence there will be two drawing. now here we have only one drawing. if the issuing bank waive this discrepancy, can the beneficiary ship the 2nd lot?

cristiand969 · Post by **cristiand969** » Fri Mar 27, 2009 2:17 pm

ICC Banking Comission stated in one opinion that it will be a good practice that issuing bank should inform the presenter whether the credit is reinstated for the second shipment or not. The silence does not neccessarily mean acceptance.

shahriar · Post by **shahriar** » Fri Mar 27, 2009 8:35 pm

while i fully agree with cristain, i think we can easily rule out the option of shipment of second lot based on the ISBP 64a

64. An invoice must not show:
a. over-shipment (except as provided in UCP 600 sub-article 30(b)), or