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Dear All,

what if the description/contents of a performance bond do not match with the description of goods/contents of a commercial invoice?

i believe a performance bond is issued by a bank on behalf of the applicant as a guarantee that the applicant will guarantee and satisfactorily perform the given project. During examination of the documents, does a document checker need to ascertain that the performance bond shows the exact replica of the description of goods as stated in the Invoice?

Please enlighten.

Hi Pal,

probably it will depend on the terms regulating such performance bond/guarantee. Usually a declaration that the principal has not performed its obligation is required, accompanied by copies of documents.
Let us know : Rules and prescription of PB:
Other comments appreciated.
Ciao

Dear Picant,

Thanks for your response.

The requirement of the LC was just an invoice and performance bond without stipulating any contents or conditions. It is construed that a performance bond is a stand alone document that only indicates the performance and guarantee of the work by the applicant. The issuing bank has come back with a discrepancy stating that description of goods in the invoice does not match with the description of the performance bond. Hence the query.

Other comments would be appreciated.

Hi Pal,

Let us know under which rules the Performance Bond has been issued; URDG, UCP, ISP98 or local laws?
Moreover the goods description required and submitted, if domestic or international , so may we ascertain that the discrepancy is acceptable or pretestous. Naturally, if under local law, we can't help you!
Ciao