Tolerance once again

[saguna2018]

Request for Admin :
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Kindly approve the post as I have gone through all Tolerance related topics and could not find this answer.
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Hi Friends,
I know a lot of discussion has happened around this topic earlier but I still have this doubt. Will be grateful if someone could respond with an example.

So as per UCP 600 Art 30(c) , in a situation where
i) partial shipment is not allowed
ii) and 30(b) is not applicable, i.e. product is such that quantity can be mentioned in terms of stipulated number of packing units etc,

(-5%) on LC AMOUNT is allowed provided
(a) QUANTITY (if stated in Credit ) is shipped in full as well as
(b) UNIT PRICE (if stated in Credit) is not reduced.
Question:
Since LC amount = Quantity X Unit price, how can LC amount reduce without one of the 2 determining factors reducing?
Are these cases where there is some discount given which is mentioned in the Invoice? Why else would a seller ship the full quantity at the same unit price and accept lesser payment?


TIA
SGN

[cristiand969]

...but such article is not intended or properly applicable when there is a single item with a single price which obviously would lead to an exact L/C amount.
This article would apply when applicant agrees to give some room to benef in manouevring the shipment when multiple items are required. For example if L/C indicates : 100 pairs of men and women shoes (without stating exact qyt of each of item but however indicates the different prices for each of them) at 10 USD/pair man shoes and 8 usd/pair woman shoes and the L/C is in amount of 900 USD, then the applicant has the expectation that beneficiary to ship:
50 pairs man shoes x 10 USD = 500 USD
50 pairs woman shoes x 8 USD = 400 USD
totaling 100 pairs at total value USD 900
.
However, even if partial shipments are not allowed, by way of this article beneficiary is allowed to ship:
48 pairs man shoes x 10 USD = 480 USD
52 pairs woman shoes x 8 USD = 416 USD
totaling 100 pairs at total value USD 896.
.
Your can easily notice that qty was shipped in full and price has not been reduced . However, the total amount is decreased but within the range of 5% less.
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I hope this example answers to your question!
.
Regards
Cristian

[saguna2018]

Hi Cristian,

Thanks a lot- that was a brilliant explanation- have been trying to get some clarity from many sources but this was the best!

Thanks once again
SGN