an example please

jim · Post by **jim** » Thu Mar 26, 2009 10:14 am

could someone please set me an example of the following UCP article

b. A tolerance not to exceeding 5% more or 5% less than the quantity allowed, provided the credit does not state the quantity in terms of a stipulated number of packing units or individual items and the total amount of the drawings does not exceed the amount of the credit.

if the quantity increases by 5%, then how to adjust the drawing?

bayemibo · Post by **bayemibo** » Thu Mar 26, 2009 4:01 pm

65) The quantity of the goods required in the credit may vary within a tolerance of +/- 5%.
This does not apply if a credit states that the quantity must not be exceeded or reduced,
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or if a credit states the quantity in terms of a stipulated number of packing units or
individual items. A variance of up to +5% in the goods quantity does not allow the
amount of the drawing to exceed the amount of the credit.

66) Even when partial shipments are prohibited, a tolerance of 5% less in the credit amount
is acceptable, provided that the quantity is shipped in full and that any unit price, if
stated in the credit, has not been reduced. If no quantity is stated in the credit, the
invoice will be considered to cover the full quantity.

does this answer your question?

Ozoda · Post by **Ozoda** » Fri Mar 27, 2009 2:31 pm

Could someone please give the real examples for each case.

ybattia · Post by **ybattia** » Sun Mar 29, 2009 3:42 am

Clarification please.

SHAMEER · Post by **SHAMEER** » Tue Mar 31, 2009 2:22 pm

Lets suppose L/c Issued for Usd.100,000/

Qty -100 MT

…………………………………………….. In this case, the beneficiary can ship the Qty as either 105MT or 95 MT but can only draw not more than Usd.100,000/-.

Drawings cannot be adjusted over the L/c amount but can be reduced. But if the qty is increased by 5%, the beneficiary may draw an amount specified in the L/c.

.

Regards

MS

Ozoda · Post by **Ozoda** » Thu Apr 02, 2009 7:42 pm

Could someone please give the real examples for UCP 600 article 30c.

Tnx.

Navi · Post by **Navi** » Fri Apr 03, 2009 2:53 am

For article 30c to be applied:
* all the goods should be shipped
* no reduction in unit price
* 30(b) should be not applicable

Example:
LC amount: 22.000.- USD
9.000 commodity A, unit price 20 USD
Frieght+Insurance = 4.000.- USD
No partial shipments

Presentation
21.000.- USD Invoice
9.000.- commodity A Unit price:20 USD
freight/insurance: 3000 USD

Result: Presentation complying as per 30c

Ozoda · Post by **Ozoda** » Fri Apr 03, 2009 7:11 pm

Dear Navi,

Many thanks!

fionawang · Post by **fionawang** » Mon Apr 06, 2009 5:09 am

That's really good example, I never encountered that kind of suitation before. Thanks