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Dear friednd

I got a import docs
LC calls for 2144 piece of computer parts and accessories.
Submitted docs shows:
Comm.Invoice :2144 piece of computer parts and accessories
Packing List :2144 piece of computer parts and accessories
Certificate of origin:1244 piece of computer parts and accessories
Is the certificate of Origin discrepant?

A typing error that does not affect the meaning, does not make a document discrepant, however, an error which may effect quantity or quality constitute a discrepancy. (ISBP 25)

Therefore this is a discrepancy.

REgards

agree with Navi

discrepancy

regds

shahriar

Dear All,
There are two method for examination of document.one is "Strict compliance" another is "looking forward to examine the document on the basis of commercial viability"
In strict compliance perspective, it surely contradict with paragraph 25 of ISBP and sub article 14(d) so it is discrepancy.
But in commercial viability perspective, raising this sort of discrepancy thwarts the international trade rather than expedite it.

moreover ICC always encourage to examine the document on the basis of commercial viability perspective and spoke over and over to examine the document as a payment master rather than looking forward a discrepancy.

So, raising this sort of discrepancy is merely depend upon the approach.
I think issuing bank should not reject the document only because of this discrepancy.
regards
nesar

Hi nesarul..

I admit that I examine documents on "strict compliance" basis. Because we "bankers" feel much safer when we find discrepancies and we can't risk omitting such discrepancies if we are confirming L/C.

Unfortunately this approach makes L/C a method of "avoiding payment" instead of "payment".

I think the certificate of origin is clean.
Let us think, what is the function of Certificate of origin.I think the function of certificate of origin is not the quantity of goods.It is the function of Commercial Invoice and may be the packing list.
Beside this there is no stipulation in the credt about the contents of certificate of origin .

Another issue, I do not believe in so called strict compliance or lebaral compliance.Discrepancy is discrepancy.
What the document checker should remember that main aim of Credit is to facilatating payment not prohibiting payment.

Dear All,
According to sub article 14(g):
"a document presented but not required by the credit will be disregarded and may be returned to the prersenter"

Can issuing bank or nominated bank observe discrepancy based on additional document[if presented] if there is a data conflict on that document as compare to other documents or credit as per sub article 14(d)?
Regards
nesar

Although main function of Certificate of Origin is not to state quantity of goods, as per UCP600 14d, data in a document must not conflict with data in any other stipulated document. For that reason, this document may be considered discrepant.
Regards

dear all,

the doc is discrepant, that for sure. but it seems thats its for a typo. now let consider few scenarios:

1. no quantity is declared. only the lc no. when somebody will sign such doc? when he is sure that the quantity other docs are showing are correct. so such doc without any quantity implies that there is a quantity and it matches the quantity of the LC.

2. The COO has a quantity. that means the signatory was unsure or unknown abt other doc and feel it safe to include the quantity.

if the 2nd scenario is our case then there are two alternatives -

1. its a typo

2. the rest of the goods are not xyz origin

its a Dilemma. who should get the benefit of doubt?

i need to say that the above is purely theoretical. in practice its the beneficiary who usually fills up the COO.

regd

iLC