Buyer Is Different From Applicant & UCP Commercial Invoice

[ErnstRabel]

UCP 600 Art. 18(a)(ii)

says that a Commercial Invoice must be made out in the name of the applicant.

The applicant as defined in Art. 2 is 'the party on whose request the credit is issued'

What if the buyer of the goods is a different person that the applicant, eg. Mother company raises a L/C for a subsidiary that is the buyer.

In my mind a Commercial Invoice must be made out it the name of the buyer of the goods to satisfy customs and tariff requirements.

If the Commercial Invoice is not made out in the name of the applicant it will be rejected by the bank but at the same time if it is not made out in the name of the buyer it will cause problems at customs (especially if the buyer and the applicant are in different countries).

In a situation where the applicant and the buyer are different what should be done? Can a Commercial Invoice include both the applicant of the L/C and the buyer or the goods?

Thank you for your help!

[RAHULCH]

Hi

here you are two talking about UCP 600 and the applicable law(concerning customs authorities)

going by UCP 6OO "commercial invoice has to be made out in the name of applicant (who request the opening of L/C-EXCEPT IN CASE OF TRANSFER LC).

whether the parent co raises it for the subsidiary or not(its out of the context of UCP). even whn the parent co is raising it for subsidiary ,its them approaching the IB for LC ... so it dosent make sense if customs authorities counter. what the parent co does with goods is not the concern in UCP 600.

IMHO always go by UCP 600 & ISBP 745....

further explanation u need plz ask .....

[mano]

dear,

you can handle this clearly and easly under the credit by its terms and conditions, you may have 3 options

1-modify UCP
2-clear instructions to made out the invoice in the name of the buyer under the credit
3-instruction to made out the invoice in the name of applicant (name) b/o or act on behalf of buyer (name and details)
4-if the invoice eveidences ultimate buyer besides the applicant it will be acceptable to us.
Regards

[dinesh2476]

Hi All,

In LCs with IB being middle east countries, you can see such structure that IB name will appear in the field 50 and specific instructions in field 46A or 47A that Invoice to be issued addressing...... actual buyer of the goods.

Thanks & Regards
Dinesh Kumar