Best Trade Solution

Hi Experts,

Our customers ask us to issue an LC (not transferable LC)
Docs required: invoice in triplicate
F47a: Third Party Docs Acceptable.

Question is:
Whether Invoices issued by a named person or entity other than the Beneficiary acceptable?
(As stated by ISBP 745 Para. A19)

Kind Rgds,
Mahamud

Hi Pal,

No, this refers to documents for which the CREDIT or UCP 600 do not indicate an issuer, art.18 UCP 600 stated that a commercial invoice must appear to have been issued by beneficiary, except in transferable credit.
It could be accepted if so required in the credit.
Other comments appreciated
Ciao

Hi PICANT,

I just received one answer as below .... Can you pls confirm it is oke to proceed.


Quoted:

1. By stating “third party documents acceptable”, the LC allows all documents, except drafts but INCLUDING INVOICES, to be issued by a named person or entity other than the beneficiary.

Please compare paragraph 19 (c) ISBP 745 with paragraph 21 (c) ISBP 681 to see that ISBP 681 is clearer than ISBP 745 in respect of the expression “third party documents acceptable”.

Paragraph 19 (c) ISBP 745: "third party documents acceptable" – all documents for which the credit or UCP 600 do not indicate an issuer, except drafts, may be issued by a named person or entity other than the beneficiary.

Paragraph 21 (c) ISBP 681: "third party documents acceptable" – all documents, excluding drafts but INCLUDING INVOICES, may be issued by a party other than the beneficiary. If it is the intention of the issuing bank that the transport or other documents may show a shipper other than the beneficiary, the clause is not necessary because it is already permitted by sub-article 14(k).

2. I do not see there is any risk in this case.

Hi Pal,

ISBP 691 refer to UCP 500, ISBP 745 to UCP 600.
UCP 600 art 18 (a) i states that the invoice must be issued by beneficiary except when credit is
transferable(or required by credit terms).
Other comments appreciated
Ciao