Tolerance once again
Posted: Mon Aug 13, 2018 11:54 am
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
***
Kindly approve the post as I have gone through all Tolerance related topics and could not find this answer.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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